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HomeMy WebLinkAbout12-2838E". ( q; PENd ,; YLV??1JI T ;<. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN,, of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs V. SANDRA L. McCORKEL, GOGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE, Defendants Civil Action - Equity No. 2012 - X,3 NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take ction within twenty (20) days after this complaint and notice are served, by entering a written ap pearance personally or by attorney and filing in writing with the court your defenses or objection s to the claims set forth against you. You are warned that if you fail to do so the case may proce ed without you and a judgment may be entered against you by the court without further notice for y 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, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES O ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. CUMBERLAND COUNTY BAR ASSOCIATION 34 SOUTH BEDFORD STREET CARLISLE, PENNSYLVANIA 717-249-3166 2 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PENN PRODUCTS CORPO TION, DAVID J. HORICK, DOUGL S C. Civil Action - Equity HORICK, MARILYN SNYDE BUDZYNSKI, Executrix-DBN!of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS CJ. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs' No. 2012 - V. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. S WOPE, Defendants NOW COME Plaintiffs, 'iby and through their counsel, Marvin Beshore, Esquire, and request this Honorable Court immediately to enter a Preliminary or Special Injunction and, following hearing, to enter a Permanent Injunction pursuant to Pa.R.Civ.P. § 1531 for the following reasons: PARTIES 1. Plaintiff, Penn Products Corporation, (hereinafter, the "Corporation") is a business corporation organized and exist?ng under the laws of the Commonwealth of Pennsylvania. The Corporation is in the business o?real estate development as the developer of the White Rock 3 Acres development in Monroe Township, Cumberland County, Pennsylvania, where it maintains its offices at 1369 Swope Drive; Boiling Springs, Pennsylvania. A true and correct copy of the Corporation's By-Laws is attached hereto as Exhibit 1 and is incorporated by reference as if fully set forth here. 2. Plaintiff David J. Hofick is an adult individual and a citizen of the Commonwealth of Pennsylvania. He is the registered owner of 898 shares of the Corporation. 3. Plaintiff Douglas C. Horlck is an adult individual and a citizen of the Commonwealth of Pennsylvania. His is the registered owner of 897 shares of the Corporation. 4. Plaintiff Marilyn Snyder Budzynski is an adult individual and a citizen of the Commonwealth of Pennsylvania. She is the duly appointed Executrix-DBN of the Estate of Maybelle Asper, who, at the time of her death, was, and continues to be, the registered owner of 5,195 shares of the Corporation. 5. Plaintiff Daniel A. Kuhn is an adult individual and a citizen of the Commonwealth of Pennsylvania. He is the registered owner of 1,249 shares of the Corporation. 6. Plaintiff Donna Lee Ooff is an adult individual and a Citizen of the Commonwealth of Pennsylvania. She is the registered owner of 903 shares of the Corporation. 7. Plaintiff Lewis G. Kahn is an adult individual and a citizen of the Commonwealth of Pennsylvania. He is the registered owner of 1,148 shares of the Corporation. 8. Plaintiff Carolyn Wa0er is an adult individual and a citizen of the Commonwealth of Pennsylvania. She is the registered owner of 1,148 shares of the corporation. 9. Plaintiff Doris I. Erna is an adult individual and a citizen of the Commonwealth of 4 Pennsylvania. She and her deceased husband Russell Ernst are the registered owners as tenants by the entireties of 922 shares of the Corporation until Mr. Ernst's death, at which time the shares vested solely in Doris I. Ernst b? operation of law. 10. Plaintiff, Jean M. Horick, is an adult individual and a citizen of the Commonwealth of Pennsylvania. She and her deceased husband Justin Horick are the registered owners of 2,270 shares of the Corporation, which they owned as tenants by the entireties until Mr. Horick's death, at which time ownership vested solely in Jean M. Horick by operation of law. 11. There are 25,000 is§ued and outstanding shares in the Corporation. A true and correct copy of the Corporation's shareholder list, as maintained in the Corporation's books, is attached hereto as Exhibit 2 and is incorporated as if fully set forth here. Together, the Plaintiffs own 14,630 shares of the Corporation, or 58.25% of the issued and outstanding shares. 12. Defendant Sandra I. McCorkel (hereinafter, "Defendant McCorkel") is an adult individual who maintains a residence at 675 Valley View Drive, Boiling Springs, Cumberland County, Pennsylvania. She is the registered owner of 2,849 shares of the Corporation and was a Director and President, Secretary, and Treasurer of the Corporation until April 25, 2012. 13. Defendant Gregory R. Swope (hereinafter, "Defendant G. Swope") is an adult individual who maintains a residence at 1469 Kuhn Rd., Boiling Springs, Cumberland County, Pennsylvania. He is the registered owner of 2,848 shares of the Corporation and was a Director of the Corporation until April 2$, 2012. Defendant G. Swope is the brother of both Defendant McCorkel and Defendant J. Swope, and he is the brother-in-law of Defendant M. Swope. 14. Defendant Megan Swope (hereinafter, "Defendant M. Swope"), is an adult individual who maintains a residence at 28 Summer Drive, Dillsburg, York County, Pennsylvania. She was a Director of the Corporation until April 25, 2012. Defendant M. Swope is the wife of Defendant John D. Swope and is the sister{in-law of both Defendant G. Swope and Defendant McCorkel. 15. Defendant, John D. Swope (hereinafter, "Defendant J. Swope"), is an adult individual who maintains a residence at 28 Summer Drive, Dillsburg, York County, Pennsylvania. He is the registered owner of 2,848 shares of the Corporation and was a Director and Vice President of the Corporation until April 25, 2012. Defendant J. Swope is the husband of Defendant M. Swope and the brother of both Defendant G. Swope and Defendant McCorkel. BACKGROUND 16. On February 17, 20? 1, the Corporation sold land to the United States National Park Service for $3,140,000. A true end correct copy of the HUD-1 Uniform Settlement Statement from that transaction is attached hereto as Exhibit 3 and is incorporated by reference as if fully set forth. There was no communication from management to shareholders concerning this sale or the use of the sale proceeds. The minutes of the Board of Directors' meetings, both before and after this 2011 transaction, reflect no discussion of distributing any of the proceeds to shareholders through payment of a dividend and no dividends have been paid. True and correct copies of the Minutes of all Bonrd of Directors' Meetings and Shareholders meetings from 2010 and 2011 are attached hereto as (Exhibit 4 and are incorporated by reference as if fully set forth here. 17. Since that sale, however, management of the Corporation has made payments II' 6 totaling more than $600,000 to Defendant McCorkel ($433,532), Defendant J. Swope ($103,318), and Defendant G. Swope ($103,318). 18. The Corporation's looks and records reveal further alleged accounts payable to Defendant McCorkel of approximately $385,000. 19. The payments ident,ified in paragraph 16 and the alleged debt identified in paragraph 17 are direct and proximate results of violations of 15 Pa.C.S. 1728 and were made or established, as the case may be, in breach of the fiduciary duties of the Officers and Directors of the Corporation in that the Defendants, because, as Directors and Officers of the Corporation, Defendants entered into contradts or other transactions between the Corporation and one or more of themselves, which benefit one or more of themselves to the detriment of the shareholders when (a) such contract or transaction was neither fair to the Corporation at the time it was authorized, nor (b) approved or (ratified by disinterested Directors or shareholders. Such conduct led directly to the payments list?d above in paragraph 16 and the alleged debt identified in paragraph 17 and is clearly acti6nable as violations of Pennsylvania's Corporation Law. 20. The Corporation's financial statements for the close of 2011 reflect cash. of approximately $1,100,000 and real estate with assessed value of approximately $2,000,000. Examination of the Corporation's books and records for the past ten years reveals that the Corporation has never maintained such an amount of cash on hand and further reveals that the Corporation does not need that much cash to operate. 21. The Corporation's 2011 federal income tax return indicates that Defendant McCorkel I is maintaining Corporate funds in her own name. A true and correct copy of the tax return is 7 attached hereto as Exhibit 5 and is incorporated by reference as if fully set forth. 22. The payment of mote than $600,000, based on actions by interested Directors and/or Officers to insiders, without any discussion of payment of dividends to the shareholders, suggests a plan to loot the Corporation and use it as a personal resource to the detriment of the Corporation's shareholders. Maintaining Corporate funds in the name of a Director suggests improper co-mingling of Corporate and private assets and mismanagement of the Corporation. 23. While withholding from shareholders information about the February 17, 2011, sale, Defendant McCorkel, Defendant G. Swope, and Defendant J. Swope attempted to use their inside information to the detrimjent of shareholders by offering to buy shares at far less than their value. For example, without disclosing any financial information, Defendants offered to buy 922 shares from Doris I. Ernst for a mere $10,000, a value of $10.84 per share. A true and correct copy of a letter from Defendant McCorkel to Sandra K. Kreider dated September 29, 2011, which confirms the offer without mentioning the $3,140,000 sale, is attached hereto as Exhibit 6 and is incorporated by reference as if fully set forth here. At the time of the offer (i.e., after the February 17, 2011, sale and after payment of income taxes on the transaction as well as the disputed payments to Defendant McCorkel, Defendant G. Swope and Defendant J. Swope) however, the Corporation had at least $1,100,000 in cash, and owned real estate with tax- assessed value of approximately $2,000,000. These assets, net of alleged payables, established a fair value for each of the 25,OOa shares of stock of more than $120 per share. Such blatant use of insider information for their own benefit at the expense of shareholders is further evidence of Defendants' self-dealing and br0ch of fiduciary duty. 24. Plaintiffs only learned of the sale by reading about it in the newspaper or from other second or thirdhand sources. Ms. Kreider only learned of the $3,140,000 sale after receipt of Defendant McCorkel's September 29, 2011, letter. While the By-Laws, (Article IX, Paragraph 3) require a "full and complete statement of the business and affairs of the corporation for the preceding year" at the annual meeting of shareholders, the minutes of the annual meetings do not reflect any such reports having been made. No minutes of shareholders' or directors' meetings have ever been distributed to tht; shareholders. The 2012 Annual Meeting of Shareholders, April 25, 2012 25. As Secretary of the (Corporation, Defendant McCorkel gave notice of the Annual Meeting of Shareholders scheduled for 7:00 p.m. on April 25, 2012, to be held at the Corporation's White Rock Acres office (hereinafter, the "Annual Meeting"). A true and correct copy of the Notice is attached hereto as Exhibit 7 and is incorporated by reference as if fully set forth here. 26. Prior to the Annual Meeting, Proxy Forms signed by Jean M. Horick, Lewis G. Kuhn, and Carolyn L. Wagner, which authorized David J. Horick to vote on their behalf were delivered to Defendant McCorkel as Secretary of the Corporation. Also prior to the Annual Meeting, a Proxy Form signed by Doris I. Ernst, which allowed her daughter, Sandra K. Kreider, to vote on her behalf, was delivered to Ms. McCorkel as Secretary of the Corporation. All of those Proxy Forms revoked any?and all prior proxy designations by the signing shareholders. True and correct copies of the signed Proxy Forms are attached to the Judge of Election's Report, a true and correct copy of which is attached hereto as Exhibit 8. 9 27. The individual plaintiffs herein appeared, either in person, or by proxy, at the time and place scheduled for the Annual Meeting. Plaintiffs attending in person were David J. Horick, Douglas C. Horick, Daniel A. Kuhn, Marilyn Snyder Budzynski, and Donna Lee Goff. Jean M. Horick, Lewis G. Kuhn, and Carolyn L. Wagner appeared through their proxy, David J. Horick. Doris I. Ernst appeared through her proxy, Sandra K. Kreider. 28. All Defendants attended the Annual Meeting in person. 29. Also attending the Annual Meeting were Marvin Beshore, Esquire, counsel for David J. Horick, Douglas C. Horick, and Jean M. Horick; Richard Magee, Esquire, counsel for the Estate of Maybelle Asper; Cradle Swisher, an' employee of Mr. Beshore; and the spouses of Ms. Kreider and Ms. Goff. 30. Defendant McCork4l, as President of the Corporation, Chaired the Annual Meeting and called it to order at 6:57 p.m. 31. Defendant McCorkO directed that the minutes should reflect that "properly executed proxies" on behalf of Carolyn Wagner, Lewis Kuhn, Jean Horick, and Doris I. Ernst, had been received. 32. The By-Laws provi4e for up to seven Directors (Article IV, § 4). The By-Laws contain no provision requiring, or permitting, nomination of Directors prior to the Annual Meeting of Shareholders. 33. After calling the An?ual Meeting to order, Defendant McCorkel announced that the next item of business was election of Directors and produced pre-printed ballots containing her own name and the names of De?endant M. Swope, Defendant J. Swope, and Defendant G. Swope 10 as candidates for the office of Director and directed the shareholders to vote. No other names appeared on the ballots. 'Plaintiffs and their counsel objected that there were no proper nominations. 34. After discussion, the following persons were duly nominated for the office of Director of the Corporation and their nominations were duly seconded: Defendant M. Swope, Defendant J. Swope, Defendantl G. Swope, Defendant McCorkel, Donna Lee Goff, David J. Horick, Douglas C. Horick, Daniel A. Kuhn, Marilyn Snyder Budzynski, Sandra K. Kreider, and Richard Magee, Esquire. 35. Defendant McCork?l directed Defendant Swope to hand-write the additional names onto a ballot and make copies of the ballot for the shareholders. 36. Defendant McCorkel then moved Defendant J. Swope and Defendant M. Swope for the office of Judge of Election, whereupon Mr. Beshore objected, on behalf of his clients, that both Pennsylvania's Business Corporation Law, 15 Pa.C.S. § 1765, and the Corporation's By- Laws, Article III, § 6, prohibit candidates in the pending election from serving as Judge of Election. Pursuant to motion b* Ms. Budzynski, which was seconded and to which there was no objection, Crady Swisher was designated by the Chair, Defendant McCorkel, to be Judge of Election. 37. After making Mr. Swisher Judge of Election, Defendant McCorkel directed Defendant Swope to distribute ballots to the shareholders. The names of all nominees were listed on the ballots and shareholders {were directed to circle the names of up to seven candidates for I which they were voting. 11 38. In the course of voting, Defendant McCorkel attempted to adjourn the meeting for an indefinite period in contraventi6n of Pennsylvania's Business Corporation Law, 15 Pa.C.S. § 1755 (c) and the Corporation's By-Laws, Article III, § 3, both of which require a majority vote of the shareholders present and entitled to vote, to effect such adjournment of a meeting at which Directors are being elected. 15 iPa.C.S. § 1755 (c) states, in pertinent part, (c) Adjournments. - ad ournments of any special or regular meeting may be taken but any meeting at whic directors are to be elected shall be adjourned only from day to day, or for such longer periods not exceeding 15 days each as the shareholders bresent an entitled to vote shall direct, until the directors have been elected. (Emphasis Article III, § 3 of the By-Laws Aates, in pertinent part, Adjournment or adjou ents of any annual or special meeting may be taken, but any meeting at which d rectors are to be elected shall be adjourned only from day to day, or for such long periods not exceeding fifteen days each, as may be which all such shareholders would be entitled to cast at an ?lection of directors until such directors have been elected. (Emphasis added.) 39. Faced with a requesi for shareholder vote, Defendant McCorkel announced, "this is my meeting and I can adjourn its" At the same time, Defendant McCorkel and Defendant J. Swope directed all others excep? Defendant M. Swope and Defendant G. Swope to leave the premises and insisted that the meeting was being adjourned. 40. Before anyone left the building, the Judge of Election called for the completed ballots and David J. Horick, Douglas C?. Horick, Marilyn Snyder Budzynski, Donna Lee Goff, Sandra K. Kreider, and Daniel A. Kuhn doivered their ballots to the Judge. None of the Defendants delivered their ballots to the Judge of Election. 12 4L The ballots showed, election of the following Directors: David J. Horick, Douglas C. Horick, Marilyn Snyder Budzynski, Sandra K. Kreider, Donna Lee Goff, Daniel Kuhn, and Richard Magee, Esquire (hereinafter, the "New Board"). A true and correct copy of the Judge of Election's Report is attached hereto as Exhibit 8 and is incorporated by reference here. 42. Following the election of Directors, the Directors met and unanimously elected the following, officers of the Corporation: David J. Horick, President; Marilyn Snyder Budzynski, Vice President; Donna Lee Goff, Secretary, and Sandra K. Kreider, Treasurer (hereinafter, the "New Officers") 43. Despite elections o? the New Board and the New Officers, the Defendants have retained physical control of the (Corporation's assets, books, and records. Items retained include, but are not limited to, the Corporation's check books, certificates of deposit, savings accounts, investment accounts, keys, and the Corporate Seal. 44. By letter of April 26, 2012, Attorney Beshore advised Defendants and Douglas C. Miller, Esquire, former counselfor the Corporation, that the shareholders had elected the New Directors at the Annual Meeting held April 25, 2012, and that those Directors had elected the New Officers. A true and correct copy of Attorney Beshore's letter is attached hereto as Exhibit 9 and is incorporated by referenjce as if fully set forth here. There has been no response to Mr. Beshore's letter. 45. With knowledge of their replacement and access to all of the Corporation's assets, including approximately $1,100,000 in cash, the Defendants have both the ability and motive further to convert corporate assets to their own benefit, or otherwise to drain corporate assets and 13 Defendants' prior actions reveal that they are not above wrongfully, and in violation of statutory requirements, converting the Corporation's assets to their own benefit. 46. As further evidence of the Defendants' intention to flaunt the Business Corporation Law, the Corporation's By-Law's, and the shareholders' rights, on May 2, 2012, Douglas G. Miller, Esquire, purporting to act on behalf of the Board of Directors, sent a "Notice of Resumption of the Annual Meeting of Stockholders," purporting to scheduled "resumption" of the meeting for May 10, 2012. +A true and correct copy of that notice and the envelopes in which it was sent to shareholders is attached hereto as Exhibit 1.0. 47. By Resolution of May 3, 2012, the New Board authorized this lawsuit on behalf of the Corporation. A true and correct copy of that Resolution is attached hereto as Exhibit 11 and is incorporated by reference as if fully set forth here. 48. If Defendants effectively prevent the New Board from operating the Corporation, the Corporation stands to lose business and goodwill. In addition, if Defendants convert corporate assets to their own benefit, or otherwise drain corporate assets, the Corporation's shareholders will suffer immediate and irreparable harm because such action will impair the future operation of the Corporation. Such harm is incalculable and cannot be adequately compensated by monetary damages. 49. A greater injury wil? result from denying the requested Injunctions than could result from granting it because Plainti0s seek only an injunction of short duration and limited scope, whereas denying the requested Injunction could well result in substantial and irreparable loss to the Corporation and its shareholders. Concomitantly, the requested Injunction will not 14 substantially harm other interested parties in the proceeding because it would be in effect for only a short period and would prevent only plundering the Corporation's resources while allowing the Corporation to continue doing business under the direction of its duly elected New Directors and New Officers. 50. The Injunction requested herein will simply maintain the status quo by prohibiting prior corporate management from plundering the Corporation and directing that Defendants cease impairing the ability of the duly elected New Directors and New Officers from managing the Corporation. 51. Plaintiffs are likely to prevail on the merits of this case because Defendants acted patently contrary to their duty under the Pennsylvania Business Corporation Law and the Corporation's By-Laws. 52. The Injunction sought is clearly intended to abate only the offending activity because it prevents former Officers and Directors from draining corporate assets while turning over control of the Corporation to tho lawfully elected New Directors and New Officers, thereby permitting the Corporation to function. Furthermore, the requested Preliminary or Special Injunction will be in place only iintil there is a hearing and the Court rules on the request herein for a Permanent Injunction. 53. The requested Preliljninary or Special Injunction will not adversely affect the public interest because its sole effect i? to prevent the Corporation's previous Officers and Directors from usurping corporate power end draining corporate assets, while permitting the Corporation to operate. There is no public interest in permitting former management to usurp control of the 15 Corporation in violation of the laws of the Commonwealth and in violation of the Corporation's By-Laws, or to deplete corporate assets. The public's interest is in the legal management of the Corporation as set forth in the 6ommonwealth's Corporation Law and in the regular operation of the Corporation pursuant to its By-Laws, which the requested Injunctions will allow. WHEREFORE, Plaintiffs request this Honorable Court to enter a Special or Preliminary Injunction that does the following until further order of this Court: 1. Enjoins the purporte? "Resumption of Annual Meeting of Stockholders" that has been noticed for May 10, 2012; 2. Prohibits Defendants from acting on behalf of the Corporation; 3. Prohibits Defendants] from accessing any and all financial accounts of the Corporation, including, but not limited to ch?cking accounts at M&T Bank, checking accounts at Adams County National Bank, and investment accounts at Charles Schwab & Co., Inc.; 4. Recognizes the Directors and Officers who were duly elected on April 25, 2012; and, 5. Directs Defendants immediately to deliver to the New Directors all keys to Corporate property, all Corporate checkbopks and other financial accounts, all corporate records, and the Corporate Seal. WHEREFORE, Plaintiff's further request this Honorable Court to enter a Permanent Injunction, following requisite bearing, that does the following until further order of this Court: 1. Enjoins the purported "Resumption of Annual Meeting of Stockholders" that has been noticed for May 10, 2012; 2. Prohibits Defendants from acting on behalf of the Corporation; i 16 3. Prohibits Defendants from accessing any and all financial accounts of the Corporation, including, but not limited to checking accounts at M&T Bank, checking accounts at Adams County National Bank, and investment accounts at Charles Schwab & Co., Inc. 4. Validates the results of the election held on April 25, 2012; and 5. Places management of the Corporation in the hands of the Directors and Officers elected on April 25, 2012, i.e., J)avid J. Horick, Douglas C. Horick, Daniel A. Kuhn, Marilyn Snyder Budzynski, Donna Lee Goff, Sandra K. Kreider, and Richard Magee, until the next election of Directors; and, 6. Grant such other and'further relief as the Court may deem just and proper. Respectfully submitted, Date Marvin Beshore, :Esquire Attorney ID # PA 31979 130 State Street, 13.0. Box 946 Harrisburg, PA 17108-0946 717-236-0781, Fax: 717-236-0791 MBeshore@beshorelaw.com Attorney for Plaintiffs 17 EXHIBIT I l I ,?linute? e? ?p wing OF INCORPORATED UNDER THE STATUTES OF THE COMMONWEALTH OF PENNSYLVANIA LAW OFFICES OF iu, A ?/? Y//-?/ COPYRIGHT 1870. BY JULIUS LUMBERO. INC. n, ADOPTED AND EFFECTIVE JUNE 14, 1971. Q `? V t BY-LAWS ARTICLE I - OFFICES The registered office shall be at B nderaville, Pennsylvania. The corporation m y also have offices at such other places as the Board of D rectors may from time to time appoint or the business of t e corporation may require. ARTICLE II - SEAL The corporat seal shall have inscribed thereon the name of the corpo ation, the year of its organization and the words "Corpor to Seal, Pennsylvania." ARTICL III - SHAREHOLDERS' MEETING 1. PLACE OF MEETING. All meetingslof the shareholders shall be held at the office of the corporation at Bendersville, Pennsylvania, or such other pla a or places,either within or without the Commonwealth of Pennsylvania, as may from time to time be selected. 2. ANNUAL MEETING. The annual meeting of the shareholders, shall be held on the Fourth' Monday of Mar-bh- in.-'each year, i# #"#O#~ if not a legal holiday, and if a legal holiday, then on the next secular day following at 7:00 ' o' clock, P. M. M. when they shall erect a Board of Directors, and trans- act such other business as may properly be brought before the meeting. If the annual meeting shall not be called and held within six months after the designated time, any shareholder may call such meeting. , 3. QUORUM. A Shareholder's meeting duly called shall not be organized for the transaction of business unless a quorum is present. The presence in person or by proxy,. of shareholders entitled to cast at least a majority of the votes which all shareholders are entitled to cast o the particular matter shall constitute a quorum for the pur ose of considering such matter. The share- holders present at a duly organized meeting can continue to do business until djournment, notwithstanding the withdrawal of enough sharehol ers to leave less than a quorum. Adjournment By-Laws A or adjournments of any annual or special meeting may be taken, but any meeting a' which directors are to be elected shall be adjourned only fr m day to day, or for such longer periods not exceeding fifteen days each, as may be directed by shareholders who are present i person or by proxy and who are entitled to cast at least a m jority of the votes which all such share- holders would be ntitled to cast at an election of directors until such direct rs have been elected. If a meeting cannot be organized beca se a quorum has not attended, those present may, except as of erwise provided by statue, adjourn the meeting to such t 'me and place as they may determine, but in the case of any m eting called for the election of directors, those who attend he second of such adjourned meetings, al- though less than 0 quorum, shall nevertheless constitute a quorum for the purpose of electing directors. 4. VOTING. At each meet ng of the shareholders every shareholder having the right o vote shall be entitled to vote in person or by proxy execu ed in writing by such shareholder or by his duly authorized a torney in fact, and filed with the secretary of the corporatio . No unrevoked proxy shall be valid after eleven months from the date of its execution, unless a longer time is expressly provided therein, but In no event shall a proxy, unless coupled with an interest, be voted on after three years from the date of its execution. # #? 151 9w;E# ## ?#1 ### ### # * #o##M # # /#f> # I ?# Upon demand made by a shareholder at any election for directors before the voting begins, the election shall be by ballot. No share shall be voted at any meeting upon which any installment is due and unpaid. The original share tr nsfer.book, or a duplicate thereof kept' in this Commonwealth shall be prima facie evidence of the right of the person named herein to vote thereon. 5. NOTICE ?OF MEETING. Written noti a of the annual meeting shall be mailed to each shareholder ntitled to vote thereat, at such address as appears on the bo ks of the corporation, at least 10 days prior to the meeting. 6. JUDGES OF ELECTION. In advance of any meeting of shareholders, the Board of Directors, may app Dint judges of election, who need not be share- holders, to act at such meeting or any adjournment thereof. If judges of election be not so appointed, the chairman of any such meeting may, and o the request of any shareholder or his proxy shall make such ap oin ment at the meeting. The number of judges i ?\ l shall be one or t ews, l f appointed at a meeting on the request By-Laws B of one or more shareholders or proxies, the majority of shares present and entit ed to vote shall determine whether one or t-n!ee judges are o be appointed. On request of the Chairman of the meeting, o of any.shareholder or his proxy, the judge(s) shall make a repo t in writing of any challenge or question or matter determined by them, and execute a certificate of any fact found by the . No person who is a candidate for office shall act as a ju ge. 7. SPECIAL MEETINGS. Special meet ngs of the shareholders may be called at any time by the President, or the Board of Directors, or the holders of not less than one-fifth of the votes which all share- holders are entit ed to cast at the particular meeting. At any time, upon written request of any person or persons who have duly called a spe ial meeting, it shall be the duty of the Secretary to fix ?he date of the meeting to be held not less than ten nor morelthan sixty days after receipt of the request, and to give due nc?tice thereof. If the Secretary shall neglect or refuse to fix he date of the meeting and give notice thereof the person or per ons calling the meeting may do so. Business tra sact.ed at all special meetings shall be con- fined to the obje is stated in the call and matters germane thereto, unless a 1 shareholders entitled to vote consent thereto. Written notice of a special meeting of shareholders, stating the time, place a rd object thereof, shall be given to each share- holder entitled t vote thereat at least five days before such meeting, unless a greater period of notice is required by statue in a particular case. 8. VOTING LIST. The officer book shall make, shareholders, a c vote at the meeti address of and th shall be kept on and shall be subj during usual buss open at the time to the inspection the meeting. The duplicate thereof facie evidence as such list or shar proxy, at any mee ,r agent having charge of the share transfer t least five days before each meeting of mplete list of the shareholders entitled to g, arranged in alphabetical order, with the number of shares held by each. The list He at the registered office of the corporation, ct to inspection by any shareholder at any time ess hours; and shall also be produced and kept nd place of the meeting, and'shall be subject of any shareholder during the whole-time of original share ledger or transfer book, or a kept in this Commonwealth, shall be prima to who are the shareholders entitled to examine transfer book, or to vote, in person or by ing of shareholders. By-Laws C ARTICLE IV - DIRECTORS BOARD OF DIR kTORS. ?J The businesslof the corporation shall be managed by its Board of Director , 7.. In number, who shall be natural persons of full a e and need not be resident(s) of this Common- wealth or shareholders in the corporation. They shall be elected "by the sh reholders, at the annual meeting of share- holders of the co poration, and each director shall be elected for the term of at least one year, and until his successor shall be elected and shall qualify. 2. POWERS. In addition to the powers and authorities Laws expressly conferred upon them, the board such powers of the corporation and do all such things as are not by statue or by the Articles or by these By-La s directed or required to be done by the shareholders.. 3. MEETINGS OF THE BOARD. by these By- nay exercise all lawful acts and of incorporation exercised or The meetingsof the Board of Directors may be held at such place within 'this Commonwealth, or elsewhere, as a majority of the directors may from time to time appoint, or as may be designated 4 n the notice calling the meeting. Each newly elected Board of Directors may meet at such place and time as shall be fixed by the shareholders at the meeting at which such directors are elected and no notice shall be necessary to the newly elected directors in order legally to constitute the meeting, or they may meet at such place and time as may be fixed by the consent in writing of all the directors. Regular meetil?ngs of the board shall be held without notice at the registered Mice of the corporation, or at such other time and place as t hall be determined by 'the board. 4. SPECIAL MEETINGS. Special meeti gs of the Board of by the President o five days notice personally or by it or by telegram; called by the President or Secretary like notice on the written request of 5. QUORUM. Directors may be called to each director, either special meetings shall be in a like manner and on two directors. A majority oflthe directors in office shall be necessary to By-Laws D constitute a quorum for the transaction of business, and the acts of a majorit?yy of the directors present at a meeting at which a quorum islpresent shall be the acts of the Board of Directors. 6. VACANCIES. Vacancies in''the Board of Directors, including vacancies resulting from an increase in the number of directors, shall be filled by a majority of the remaining members of the Board though less than quorum, and each person so elected shall be a director until is successor is elected by the shareholders, who may make such election at the next annual meeting of the shareholders or a any special meeting duly called for the pur- pose and held pri r thereto. 7. COMPENSATION OF DIRECTORS. Directors aslsuch, shall not receive any stated salary for their services, but by resolution of the Board of Directors, a fixed sum and expenses of attendance, if any, may be allowed for attendance at each regular or special meeting of the Board provided, that nothing herein contained shall be construed to preclude any dire for from serving the corporation in any other capacity and receiving compensation therefor. ARTICLE V - OFFICERS 1. OFFICERS, EL?CTIONS, TERM, ETC. The executiv by the directors Treasurer. The B President and suc necessary, who sh have such authori to time shall be or more offices m offices of Presid for the officers The salaries shall be fixed by officers of the corporation shall be chosen nd shall be a President, Secretary and and of Directors may also choose a Vice- other officers and agents as it shall deem 11 hold their offices for such terms and shall y and shall perform such duties as from time rescribed by the Board of Directors. Any two y be held by the same person, except the nt and Secretary. It shall not be necessary o be directors. f all officers and agents of the corporation he Board of Directors. The officers f the corporation shall hold office for one year and until their successors are chosen and have qualified. Any officer elected or appointed by the Board of Directors may be removed by the oard of Directors whenever in their judgment the best interests of the corporation will be served thereby. 2. PRESIDENT By-Laws E The President shall be the chief executive officer of the corporation; he s all preside at all meetings of the shareholders and directors; he shall have general and active management of the business of n e corporation, shall see that all orders and resolutions of th Board of Directors are carried into effect, subject, however,to the right of the directors to delegate any specific power, a cept such as may be by statue exclusively con- ferred on the Pre ident, to any other.officer or officers of the corporation. He hall execute bonds, mortgages, and other con- tracts requiring seal, under the seal of the corporation. He shall be ex-officio a member of all committees, and shall have the general power and duties of supervision and management usually vested in the office of president of a corporation. 3« SECRETARY. The Secretar all meetings of t record all the vo its transactions' shall perform like Directors when rep notice of all mee Directors, and shi scribed by.the Boy supervision he sh, corporate seal of Board, affix the 4. TREASURER. V shall attend all sessions of the Board and he shareholders and act as clerk thereof, tes of the corporation and the minutes of all in a book to be kept for that purpose; and duties for all committees of the Board of juired. He shall give, or cause to be given, tings of the shareholders and of the Board of all perform such other duties as may be pre- 3rd of Directors, or President, and under whose all be. He shall keep in safe custody the the corporation, and when authorized by the name to any instrument requiring it. and/or the President, The Treasure shall have custody of the corporate funds and securities an shall keep full and accurate accounts of receipts and disbprsements in books belonging to the corporation, and shall keep th moneys of the corporation in a separate account to the cr dit of the corporation. He shall disburse the funds of the orporation as may be ordered by the Board, taking proper you hers for such disbursements, and shall render to the President nd directors, at the regular meetings of the Board., or wheneve they may require it, an account of all his transactions as T easurer and of the financial condition of the corporation. 5. VACANCIES. If'the offic of any officer or agent, one or more, becomes vacant for any re son, the Board of Directors may choose a successor or succ ssors, who shall hold office for the unexpired term in respect o which such vacancy occurred. BY-Laws I= V=' ARTJICLE VI - ACTION BY CONSENT Any action wl holders, or at a i executive committi consent or consen taken shall be sip be entitled to vo: of the directors as the case may b4 the corporation. ARTICLE VII - CORPORATE RECORDS 1. RECORDS REQUJRED. There shall corporation an or of the shareholde or a copy of its ations thereof to corporation. An shall also be kep of a transfer age giving the names and showing their of shares held by issued for the sh of every certific 2. INSPECTION. hich may betaken at a meeting of the share- neeting of the directors or members of the ae, may be taken without a meeting, if a is in writing setting forth the action so Ined by all of the shareholders who would to at a meeting for such purpose., or by all )r the members of the executive committee, and shall be filed with the Secretary of e kept at the registered office of the ginal or duplicate record of the proceedings s and of the directors, and the original y-Laws, including all amendments or alter- date, certified by the Secretary of the riginal or duplicate share transfer book at the registered office, or at the office t or registrar within this Commonwealth, f the shareholders in alphabetical order, respective addresses, the number and classes each, the number and date of certificates res, and the number.and date of cancellation to surrendered for cancellation. Every shareholder shall have a right to examine, in person or by his agent o attorney, at any reasonable time or times for any reasonabl purpose, the share transfer book, books or records of account, and records of the proceedings of the shareholders and irectors, and make extracts therefrom. ARTICLE VIII - SHARES 1. 1. CERTIFICATES. The share certificate of the corporation shall.be numbered and registered in' the share transfer books of the corporation, as they are Issued. They shall be signed by the president andcretaxy and shall bear the corporate seal. 2. TRANSFERS OF {SHARES. Transfers of shares shall be made on the books of the By-Laws G corporation upon surrender of the certificates therefor, endorsed by the person named in the certificate or by attorney, lawfully constituted in writing. No transfer shall be made inconsistent with the provisions of Article 8 of the Uniform Commercial Code approved the sixt day of April, one thousand nine hundred fifty-three (Act No. 1), and its amendments and supplements. 3a CLOSING SHARE TRANSFER BOOKS OR FIXING RECORD DATE. The Board of'iDirectors may fix a time, not more than fifty days prior to the date of any meeting of shareholders, or the date fixed for the payment of any dividend or distribution, or the date fixed,for the allotment of rights, or the date when any change or con ersion or exchange of shares will be made or go into effect, a a record date for the determination of the shareholders enti led to notice of, and to vote at, any such meeting,or entitl d to receive payment of any such dividend or distribution or t receive any such allotment or rights, or to exercise the rights in respect to any change, conversion, or ex- change of shares. in such cases, only such shareholders as shall be'shareholders of record on the date so fixed shall be entitled to notice of, and''to vote at, such meeting, or to receive payment of such dividend,!or to receive such allotment or rights, or to exercise such rig ts, as-the case may be, notwithstanding any transfer of any s ares on the books of the corporation after any record date fixed',as aforesaid. The Board of Directors may close the books of the jorporation against transfers of shares during the whole or any art of such period, and in such case written or printed notice th reof shall be mailed at least ten days before the closing there f to each shareholder of record at the address appearing on the records of the corporation or supplied by him to the corporation for the purpose of notice. While the share trans- fer books of the corporation are closed, no transfer of shares shall be made thereon. If no record date is fixed for the deter- mination of shareholders entitled to receive notice of and vote at, a shareholders' meeting, transferees of shares which are transferred on th books of the corporation within ten days next preceding the dat of such meeting shall not be entitled to notice of and vote at such meeting. 4. LOST CERTIFICATES. Any person claiming the loss, destruction or mutilation of a share certificate may have a new certificate issued there- for upon such terns and indemnity to the corporation as the Board of Directors may prescribe. ARTIJCLE IX - CORPORATE FINANCE 1. DIVIDENDS. By-Laws H Subject to t e provisions of the statutes and the Articles of Incor oration, the Board of Directors may declare and pay dividends upon the outstanding shares of the corporation from time to time and to such extent as it deems advisable. 2. RESERVES. Before,payme of the net profit directors, from t think proper as a equalizing divide shall think condu, the directors may which it was crea it of any dividend there may be set aside out s of the corporation such sum or sums as the . ime to time, in their absolute discretion, reserve fund to meet contingencies, or for ids, or for such other purpose as the directors :ive to the interests of the corporation, and abolish any such reserve in the manner in ted. 3. ANNUAL STATEMENT, The Presiden annual meeting a and affairs of th statement shall b, the Board of D i rei verified by a cer and Board of Directors shall present at each ull and complete statement of the business corporation for the preceding year. Such prepared and presented in whatever manner tors shall deem advisable and need not be ified public accountant. 4. FISCAL YEAR. The fiscal y ar of the corporation shall begin on the lste,day of January in each year. ARTICL? X - MISCELLANEOUS PROVISIONS 1. NOTICES. Whenever written notice is required to be given to any person; it may be given to such person, either personally or by sending a copy thereof through the mail, or by telegram, charges prepaid, to his address appearing on the books of the corporation, or supplied by him to the corporation for the purpose of notice. If the notice is sent by mail or telegraph, it shall be deemed to have been given to the person entitled thereto when deposited in the United States mail or with a telegraph office or transmission to such person. Such notice shall specify the place, day and hour of the meeting and, in the case of a special meeting, the general nature of the busi- ness to be transacted. Any shareholder or director may waive in writing and at any time, any notice required to be given under the By-Laws. Attendance of a person, either in person or by proxy, at any -- meeting shall constitute a waiver of notice of such meeting, By-Laws I ?1 G except where the express purpose of such attendance is to object to the transaction of any business because the meeting was not lawfully 4alled or convened. 2. CHECKS. All checks, demands for money and notes of the corporation shall be signed b such officer or officers as the Board of Directors shall f Lm time to time designate. ,ARTICLE XI - AMENDMENTS These By-Law$ may be altered, amended or repealed by the affirmative vote of a majority of the shares issued and out- standing and entitled to vote thereat at any regular or special meeting of the shareholders, if notice of the proposed alteration, amendment or repel be contained in the notice of the meeting, By-Laws J EXHIBIT 2 .4 N LIST OF STOCKHOLDERS PENN PRODUCTS CORPORATION Name & Address Percentage Held Shares Held Maybelle Asper 20.78 5,195 c/o Richard Magee, Esq. 1795 South Easton Road P.O. Box 885 Doylestown, PA 18901-08$5 Sandra L. McCorkel 675 Valley View Drive Boiling Springs, PA 17007 Gregory R. Swope 1469 Kuhn Road Boiling Springs, PA 17007 John D. Swope 28 Summer Drive Dillsburg, PA 17019 Justin J. & Jean M. Horick c/o Linda Horick P.O. Box 248 Arendtsville, PA 17303 Daniel A. Kuhn P.O. Box 35 Bendersville, PA 17306 Lewis G. Kuhn P.O. Box 35 Bendersville, PA 17306 Carolyn L. Wagner 105 Hill Street Mt. Holly Springs, PA 17065 Burnell H. Rang 300 Third Street Hanover, PA 17331 11.396 11.392 11.392 9.08 4.996 4.596 4.596 3.688 2,849 2,848 2,848 2,270 1,249 1,148 1,148 922 4 LIST OF STOCKHOLDERS Penn Products Corporation Name & Address Percentage Held Shares Held Rodney T. & Doris I. Erns 3.688 922 800 Randolph Street Hanover, PA 17331 Donna Lee Goff 3.612 903 850 Highland Avenue Brookings, OR 97415 Russell T. Ernst (Deceased 3 612 903 c/o Terrence Ernst . 927 Thatcher Way Chesapeake, VA 23320 David J. Horick 3.592 898 199 Torway Road Gardners, PA 17324 Douglas C. Horick 3.588 897 307 Torway Road Gardners, PA 17324 100.00% 25,000 LIST OF STOCKHOLDERS ~ PENN PRODUCTS CORPORATION NAME & ADDRESS 'RICHARD L. & JOYCE''L. SWOPE 675 VALLEY VIEW DRIVE BOILING SPRINGS, P* 17007 MAYBELLE ASPER C/o RICHARD MAGEE,',ESQUIRE 1795 SOUTH EASTON ROAD P.O. BOX 885 DOYLESTOWN, PA 18901-0885 RONALD B. & KATHLE?N L. KUHN BOX 35 BENDERSVILLE, PA 17306 JUSTIN J. & JEAN M.I HORICK 1288 POTATO ROAD ASPERS, PA 17304 BURNELL H. RANG (DECEASED) 300 THIRD STREET HANOVER, PA 17331 o RODNEY T. & DORIS II. ERNST m 1021 SEBASTIAN ROAD' N BAREFOOT BAY, FL 3112976 .N DONNA LEE GOFF Eo 850 HIGHLAND AVENUE' W )ai BROOKINGS, OR 9741$ ?RUSSELL T. ,4 ro C/oCARL KLINEDINST!cEGrandson s4 w 766 POPLAR STREET N HANOVER, PA 17331 Ei (717-637-8182 - Carl) DAVID J. HORIICK 199 TORWAY ROAD GARDNERS, PA 17324, DOUGLAS C. HORICK 307 TORWAY ROAD GARDNERS, PA 17324' DANIEL A. KUHN BOX 35 BENDERSVILLE, PA 1306 PERCENTAGE HELD 34.18% 20.78/ 13.78/ 9.08/ 3.688% 3.688/ 3.612/ 3.612% 3.592/ 3.588/ 0.40/ 100/ SHARES HELD 8,545 5,195 3,445 2,270 922 922 903 903 898 897 100 25,000 I? (.f !9 t' I ? f ? i i ! i I ? ? i i ? I I I I I j , I I Z i W LL o a 1 : I i 4 ? I ? i I I I - ._? F zo° ozw Yd \ w o CC ao ox u Cn IN, N 4 ? 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JUK , ' I \1i ? i ' t ?? i } EXHIBIT 3 M No 2502-0265 Computer form published by LAW DISKS, 734 Franklin Avenue, Garden City, N.Y. 11530 516-741-5740 www.lawdisks.com A. U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HUD-1 UNIFORM SETTLEMENT STATEMENT B. TYPE OF LOAN: 6. File Number 1825-002 7. Loan Number [X] N/A (Cash) 8. Mortgage Insurance Case Number C. Note: this form is furnished to, give y u a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked "(P.O.C.)" were paid outside the closin . They are shown here for informational purposes and are not included in the totals. Note: TIN = Taxpayer's Identification Nrumber. D. Name and address of borrower E. Name, address and TIN of seller F. Name and address of lender National Park Service Penn Products Corporation P.O. Box 908 1369 Swope Drive Martinsburg, WV 25402-0908 Boiling Springs, PA 17007 0. Property Location H. Settlement Agent: name, address and TIN Tracts 367-43/44/45/46 Walker, Connor & Spang, LLC 26-1519482 Cumberland County, PA 247 Lincoln Way East South Middleton & Monroe'rownships Chambersburg, PA 17201 Place of Settlement I. Settlement Date: Office of Settlement Agent, above Thursday, February 17, 2011 ,1. SUMMARY OF BORROWER'S RANSACT16N 100 GROSS AMOUNT DUE FROM BORROWER: 101 Contract sales price 3,140,000.00 102 Personal property 103 Borrower settlement charges (line 1400) 9,884.75 104 105 Ad'ustmentsfor items paid byselle in advance 106 Co/rwp taxes 107 School taxes -? 108 Assessments 109 110 III 112 120 GROSS AMOUNT DUE FROM BORROWER 3,149,884.75 200 AMOUNTS PAID BY OR ON BEHAL OF BORROWER: 201 Depositor earnest money 202 Principal amount of new loan(s) 203 Existing loan(s) taken subject to 204 205 _ 206 207 208 209 Adjustments for items unpaid seller 210 Co/Twp taxes 211 School taxes 212 Assessments 213 i 214 215 - 216 - - 218 219 220 TOTAL PAID BY/FOR BORROWER 0.00 K. SUMMARY OF SELLER'S TRANSACTION 400 GROSS AMOUNT DUE TO SELLER- 401 Contract sales price 3,140,000.00 402 Personal property 403 404 405 Adjustments for items paid by seller in advance 406 Co/rwp taxes 407 School taxes _ 408 Assessments 409 410 411 412 420 GROSS AMOUNT DUE TO SELLER 3,140,000.00 500 REDUCTIONS IN AI11OUNT DI IF TO SFLi .FR 501 Excess deposit (see instructions) 502 Settlement charges to seller (line 1400) _ 503 Existing loan(s) taken subject to 504 Payoffof first mortgage loan 505 Payoffofsecond mortgage loan 506 _ 507 508 509 _ .4djtistmentsfor,.'.'tenmuzinpaid seller 510 Cofrwp taxes 511 School taxes 512 Assessments 513 514 Held in escrow for county taxes 1,961.86 515 516 517 518 519 520 TOTAL REDUCTION IN AMOUNT DUE SELLER 1,961.86 300 CASH AT SETTLEMENT FROM/TO RROWER 600 CASH AT SETTLEMENT TO/FROM SELLER 301 Gross amt due from borrower (Ln 120) 3,149,884.75 601 Gross amt due to seller (Ln 420) 3,140,000.00 302 Less amt paid by/for borrower (Ln 220) 0.00 602 Less reduction in amt due seller (520) 1,961.86 303 CASH [X] FROM BORROWER 3,149,884.75 603 CASH [X[ TO SELLER 3,138,038.14 a?SUBSTITUTE FORM 1099-S, Proceeds from Real Estate Tra sacti ns, Taa Y- 2007 SELLER STATEMENT: The ittibmutian contained in blocks E G. tt, I and an line 401 (er if line 901 is asterisked, line 403 and 904) is imponam tas inr-stion and is being famished w the Imemal Rercnuc av ce. try.. me required to File a return, a negligence pmahy or other saaion may be imposed on you if this item is required to be ropened and the IRS daermines that it has not been reported. 1f this rail orate was your main ome. file Form 1119, Sale orYour Home, with Fonn 1040 even iryrou had a Ions err you did not replace yon home. JIM. real sate was not your main home. ,,port the vana-ion on Farm 4797• Sales of Business Properly. Farm 67 l Installment Sale Inc.-. anLbr Schedule D. Form 1040, Capital Gains and Losses. You must provide the Scnlemet Agent (in Block H) with your carrm taxpayer identification number. if you do not provide the settlement agem with your cores taspayer idemifiestlon number, you may be subject to civil m criminal penalties imposed by Iaw_ Undo penalties ofpc juY l cerify that the numb,, shmsm on this stattenem is my comeet taxpaym identifcation nun or. seller's signature seller's signmure ,700 TOTAL SALES/BROKER'S COMMISSION based on price $ Q % _ PAID FROM PAID FROM Division of Commission (line 700) as ollows: BORROWER'S SELLER'S 701 $ to FUNDS AT FUNDS AT 702 $ to SETTLEMENT SETTLEMENT 703 Commission paid at settlement 704 _ 800 ITEMS PAYABLE IN CONNECTION TH LOAN 801 Loan Origination fee 802 Loan Discount % 803 Appraisal Fee to 804 Credit Report to 805 Document Preparation Fee 806 Application Fee to 807 Underwriting Fee to i _ 808 Flood Hazard Cert Fee to 809 Tax Service Fee to 810 Underwriting Fee to t 811 900 ITEMS REQUIRED BY LENDER TO PAID IN ADVANCE 901 Interest from to @$ / 902 Mortgage Insurance Premium for m 903 Hazard Insurance Premium for year 904 years to 905 _ y nths to : to 1000 RESERVES DEPOSITED WITH LEN ER 1001 Hazard insurance months @ per month _ 1002 Mortgage insurance premium for onths @ $ per month 1003 School property taxes months @ per month 1004 County property taxes months @ per month 1005 Annual assessments months @ per month 1006 months @ $ month 1007 months @ $ r month 1008 Aggregate Accounting Adjustment 1100 TITLE CHARGES 1101 Settlement or -closing fee to Wal r, Connor & Spang, LLC _ 1102 Abstract or title search to 1103 Title examination 1104 Title insurance binder to 1 105 Document preparation to 1106 Notary fees to Walk er, Connor & Spang, LLC 1107 Attomeys fees to Irwin & McKnight P.C. L aw Office (POC) (includes above item numbers ) !' ` 1108 Title insurance to Old R epublic National Title Insurance Company _ 9,763.75 (includes above item numbers 1 1109 Lender's coverage 1110 Owner's coverage $ 3,140 000.00 1111 Endorsements to Old Republic National Ti 0e Insurance Company 1112 Closing Service Letter to Old Republic Nat ional Title Insurance Company _ 1113 Wire Fees to Walker, Connor & Span 30.00 1200 GOVERNMENT RECORDING AND T RANSFER CHARGES 1201 Recording fees: Deed $ 85.00 M gage $ Releases $ 85.00 1202 City/cry tax/stamps: Deed $ M rtgage $ 1203 State tax/stamps Deed $ M rtgage $ 1204 1205 1300 ADDITIONAL SETTLEMENT CHAR ES 1301 Survey to 1302 Pest inspection to _ 1303 Courier Fee to Walker, Connor & Spang, C 1304 Mary A. Murray, Tax Collector- tax certifi ation 6.00 1305 1400 TOTAL SETTLEMENT CHARGES (e ter on lines 103, Section I and 502, Section K) 9,884.75 0.00 CERTIFICATION: I have carefully reviewed a HUD-1 Settlement Statement and to the best of my knowledge and beliet, it is a true and accurate statement of al receipts and disbursements mad on my account or by me in this transaction. I further certify that I have received a copy of the HUD-1 Settlement St /e en[. Borrower Seller Borrower Seller To the best of my knowledge the HUD-1 Settlement Statement which I have prepared is a true and accurate accoum: of the funds which were received and have been or Il b disbursed by the undersigned C part of the settlement of this transaction. / f I Z- /'' " / Settlement Agent z ` 1-7 l C? _ Date WARNING: It is a crime to knowingly make fal statements to the United States on this or any other similar form. Penalties upon conviction can include a fine and imprisonment. For details see Title 18 U. J. Code Section 1001 and Section 1010. /i? CONNOR & SPANG, LLC - ATTORNEYS AT LA W - TITLE AGENT ACCOUNT 2 7 3 7 Feb 17/2011 dE # 2737 AMOUNT $3,138,038.14' ACCOUNT: TRUST - 2 PAID TO: Penn Products Corporation Net Sale Proceeds - National Park Service CLIENT: 1825 - National Pork Service MATTER: 1825-002 2737 v00 273W01 1.0313043061: 11-2575311• EXHIBIT 4 PENN PRODUCTS CORPORATION Regular Meeting of the Board of Directors Held at the White Rock Acres Office on February 23, 2010 A regular meeting of the B and of Directors of Penn Products Corporation was held at the White Rock Acres Office a the hour of 5:00 P.M. with the following directors present: Greg Swope, John Swope, Megan Swope and Sandra McCorkel. The minutes of the previous meeting were read and approved. Sandy informed the directo s that she had a lot*call in January from a lady who lives in Florida. Her son currently lives here. She called and scheduled an appointment to see the lots on February 40i. Sandy eels quite sure that she is serious and will be purchasing either Lot #146 or #148. C ryl and her husband seem to be leaning toward Lot #148. Sandy will keep the directors posted. 1 Also, Sandy told the direct acres which is within the bi the Park Service and they v and said that it was all or ni particular is the main one t1 take a look at the adjoining mountain. They seemed int completed the 470 acre sure a parcel there that is suitabl s that Joe and Sue McCorkel made an offer to purchase 56 mdary of the 303 acre tract. Sandy initially ran this idea past ,re okay with it, but after further thought, Don King wrote to of the land that they wanted to purchase. This parcel in y are interested in. Sandy then offered to have Joe and Sue and which is on the back side of Section "O" at the top of the -ested in this idea. We are waiting until the surveyors have ,y and then Joe and Sue will go take a look and see if there is to them.. On 12/29/09, a Pre-Trial Co erence was scheduled by the Judge for February 23, 2010. On February 160i, George agner's attorney filed their Pre-Trial Memorandum and on February 180`, Doug filed The Defendant's Pre-Trial Memorandum on behalf of the corporation, The Hearing fo this case is scheduled for April 50i. By the next meeting hopefully we will. have this ater resolved. Sandy informed the director going to be advertising for b land. By the next meeting, h Also, specifications were to for Karen to choose Rusty, I choose. that the National Park Service advised her that they were ds for another appraisal for the purchase of our parcels of pefully those bids will be in and a new appraisal hired. ;o out for bidding on the survey project. Sandy has pushed )wever, there is no guarantee on who they will ultimately Penn Products Corporation Board of Directors Meetin February 23, 2010 Sandy informed the directo?s that she has had a call or two about lots, but nothing more has transpired. There being no further business, the meeting was then adjourned. -? Secretary " 0 Chairman PENN PRODUCTS CORPORATION Minutes of the Annual Stockholders Meeting Held at the White Rock Acres Office on April 27, 2010 l? The annual meeting of the stockholders of Penn Products Corporation was held at the White Rock Acres Office, Boiling Springs, Pennsylvania on the 27th day of April, 2010 at the hour of 5:00 P.M. The following stockholders were present: Greg Swope, John Swope, Megan Swope and?Sandra McCorkel. The minutes of the previous meeting were read and approved. The Chairman then stated at all stockholders of record had been given notice of the time, place and purpose ofhe meeting in accordance with the corporation's by-laws. The Chairman then stated that the next order of business is the election of directors to serve for the ensuing year or until their successors are elected or appointed. Ballots were then distribut d to all stockholders present, and the Chairman then asked for nominations for director. Whereupon, Megan Swope nominated Sandra McCorkel, Greg Swope, and John Swope fok director. Sandra McCorkel then nominated Megan Swope for director and John Swope seconded all nominations and all were carried. There being no further no ations, the persons present cast their ballots which were then tabulated by the Judge of the Election and cast votes for stockholders who were represented by proxy with the following results: Votes cast in favor of all nominees for director of Penn Products orporation: NAME OF STOCKHOLDER Maybelle Asper Sandra L. McCorkel Gregory R. Swope John D. Swope Jean M. Horick Daniel A. Kuhn Lewis G. Kuhn Carolyn L. Wagner Rodney T. & Doris I. Ernst Burnell H. Rang Russell T. Ernst Donna Lee Goff David J. Horick Douglas C. Horick NO. OF SHARES HELD 5,195 2,849 2,848 2,848 2,270 1,249 1,148 1,148 922 922 903 903 898 897 25,000 NO. OF SHARES VOTED 2,849 2,848 2,848 1,249 1,148 1,148 922 13,012 Penn Products Corporation Annual Stockholders Meeting April 27, 2010 Page Two The Judges of the Election hen declared the polls closed and tabulated the votes with the following results: Out of a total of 25,000 shares issued and outstanding, 13,012 were voted in favor of the election of all nominees for director. Of all votes cast, 4,467 were voted by proxy and the bal ce of 8,545 were voted by stockholders present. Since all the votes cast rep sented more than 50% of all shares issued and outstanding, the Chairman then declare all nominees for director to be duly elected. There being no further business, the meeting was then adjourned by the Chairman. Z Secretary Chairman PENN PRODUCTS CORPORATION Organizational Meeting Held April 27, 2010 The first and organizational meeting of the newly elected directors of Penn Products Corporation was held at th White Rock Acres Office, Boiling Springs, Pennsylvania on the 27a' day of April, 2010, immediately following the Annual Stockholders Meeting. The following directors were present: Greg Swope, John Swope, Megan Swope and Sandra McCorkel. The minutes of the previous meeting were read and approved. On motion made by Megan! Swope and seconded by John Swope and carried, Sandra McCorkel was elected Chairman of the meeting. On motion made by Greg Swope and seconded by Megan Swope and carried, Sandra McCorkel was elected Secretary of the meeting. The Chairman then stated that the first order of business is the election of officers to serve for the ensuing year or until their successors are elected or appointed by the Board. Whereupon, John Swope nominated the following persons whose nominations were seconded by Greg Swope and carried. FOR PRESIDENT FOR TREASURER Sandra McCorkel Sandra McCorkel Sandra McCorkel FOR SECRETARY There being no further nom-ft-1 ations, the Chairman then instructed the Secretary to cast the ballot for the unanimous election of all nominees, ,Salaries and commissions were discussed, and after a consensus was reached, it was decided that salaries and commissions would remain the same. There being no further busj oess, the meeting was then adjourned by the Chairman. Secretary Chairman PENN PRODUCTS CORPORATION f Special Meeting of Board of Directors Held at the White Rock Acres Office on April 27, 2010 A special meeting of the Board of Directors was held at the White Rock Acres Office on the 27th day of April, 2010 immediately following the Annual and Organizational Meetings of the Stockholders. The minutes of the previouo meeting were read and approved. Sandy informed the directors that a builder from Newburg, O & R, purchased Lot 148 for the lady who had called fr Florida back in January. The sales price for this lot was $76,500.00 and settlement as on March 26th. Sandy also informed the directors that George Wagner had called her sometime in the middle of March and wanted to talk about reaching a resolution for the lawsuit he brought regarding the stumps that had inadvertently dropped on to his property from our stump dump site. Sandy and George discussed the issue and then Sandy told George that she would talk to her alto y and have Doug send a preliminary agreement to George's attorney. As a result of this agreement, Doug was able to file an agreement with the court on April 1st. On April 5th, Judge Oiler cancelled all court hearings regarding this matter. The directors also discussed the idea of giving Bob Harpster a deadline for which he would have to settle on Lot 143, as this lot has been held off the market for two yeas. The directors voted to give Bob until the end of May to get his situation ironed out and settle on this lot. Also, the directors were inf?rmed that Joe and Sue McCorkel will relook at some acreage on the backside of Section `O' once the surveyor for the NPS completes his survey. Sandy understands that the urveyor was hired approximately two weeks ago and that a firm by the name of McPhetson was been hired to complete the appraisal for the NPS. There being no further busi. ess, the meeting was then adjourned. ?-? v" Secretary Chairman f' Penn Products Corporation Regular Meeting of the Board Directors Held at the White Rock Acres Office on August 19, 2010 At the hour of 6:00 P.M. A regular meeting of the B' and of Directors of Penn Products Corporation was held at the White Rock Acres Office ith the following members present: Greg Swope, John Swope, Megan Swope and Sandra cCorkel. The minutes of the previo* meeting were read and approved Sandy informed the direct Irs that on July 2nd, Lot 146 was sold to residents, Art and Ruth Heller, who already live h*e and bought this as an adjoining lot to their property. The sale price was $70,000. Th?s was a much needed sale. Sandy informed the directors that she was hoping to get the remaining drainage areas, sewer lateral connections d wearing coarse of the road installed, but the time had run out under the township gui elines. Evidently the paperwork has to be submitted earlier in the year. We would have h d until October 31St to pave, but the paperwork was not submitted in time. Hopeful y, all of this work can be completed before the end of the summer next year, and the we can dedicate the last portion of Kuhn Road to the township. Sandy had Steve Bowman on site to help to locate the ends of the sewer laterals so, that Kreiders Excavating can en go ahead and run the stubs in to the front of the lot lines. This work should be competed by fall. There was some discussion on the pending sale of lands to the National Park Service. There was a new appraisal requested a while ago, and we are now awaiting the report to see if the price per acre h increased at all. This will be the third appraisal for these properties. They informed andy that this is the final one that they will request. Discussion washeld on th Liability and Worker's Comp. Insurance. We have been unable to pay the past few ears, so we will hold further discussion to see if we should pay the past two years and en go from there. Sandy will talk to Doug to see what he would recommend. There being no further business, the meeting was then adjourned. --' Secre hairman PENN PRODUCTS CORPORATION Regular Meeting of the Board of Directors Held at the White Rock Acres Office on January 4th, 2011 A regular meeting of the Board of Directos was held at the White Rock Acres Office on The 4th day of January, 20 at the hour of 6:00 P.M. The following directors were present: Greg Swope, John Swope, Megan Swope and Sandra McCorkel The minutes of the previoul meeting were read and approved. Sandy informed the directors that last fall, B.R. Kreider, our excavator, had installed the last of the sewer laterals in the 3rd phase of Section `M' . These included the lots that are in Section `N', but abut Kuhn Road as it runs through the 3`d phase of Section `M'. Sandy also informed the d' ectors that last July, the National Park Service received their final appraisal for our 840.19 acre parcels. The purchase price is listed as $3,140,000.00. The directors were not hap y with the price, as it did not include values for water and sewer. However, the direct ms believed that if they did not accept this offer and move on that the company would b in dire straits. The directors did approve the sale as per their October 4th, 2010 Resoluo on, and things have been moving forward ever since. The settlement should be any . e now. Sandy informed the direct rs that she would be in contact with Al Wolcott, regarding our liability and workmen's comp insurance policies. We had decided to let them go for the past few years due to the financial condition and poor economy. Sandy informed the directors that Rusty Smith, Randy Gibble and the engineer are still working on the drainage plans, etc. for the 3`d phase in Section 'M'. This has been a real struggle getting this work completed. There have been no calls r?cently for lots. Hopefully, the economy will start to turn around soon. There being no further bus?ness, the meeting was then adjourned. Chairman PENN PRODUCTS CORPORATION Minutes of the Annual Stockholders Meeting Held at the White Rock Acres Office on April 27, 2011 r The annual meeting of the stockholders of Penn Products Corporation was held at the White Rock Acres Office, Boiling Springs, Pennsylvania on the 27th day of April, 2011 at the hour of 7:30 P.M. The Ifollowing stockholders were present: Greg Swope, John Swope, Megan Swope andl Sandra McCorkel. The minutes of the previous meeting were read and approved. The Chairman then stated at all stockholders of record had been given notice of the time, place and purpose of1tthe meeting in accordance with the corporation's by-laws. The Chairman then stated at the next order of business is the election of directors to serve for the ensuing year Vir until their successors are elected or appointed. Ballots were then distributed to all stockholders present, and the Chairman then asked for nominations for director. *hereupon, Sandra McCorkel nominated Greg Swope, John Swope and Megan Swope or director. John Swope then nominated Sandra McCorkel for director and Greg Swope seconded all nominations and all were carried. There being no further nominations, the persons present cast their ballots which were then tabulated by the Judg?s of the Election and cast votes for stockholders who were represented by proxy with the following results: Votes cast in favor of all nominees for director of Penn Products 0orporation: NAME OF STOCKHOLDIER Maybelle Asper Sandra L. McCorkel Gregory R. Swope John D. Swope Jean M. Horick Daniel A. Kuhn Lewis G. Kuhn Carolyn L. Wagner Rodney T. & Doris I. Ernst Burnell H. Rang Russell T. Ernst Donna Lee Goff David J. Horick Douglas C. Horick NO. OF SHARES HELD 5,195 2,849 2,848 2,848 2,270 1,249 1,148 1,148 922 922 903 903 898 897 25,000 NO. OF SHARES VOTED 2,849 2,848 2,848 1,249 1,148 1,148 922 13,012 Penn Products Corporation Annual Stockholders Meet g April 27, 2011 Page Two The Judges of the Election en declared the polls closed and tabulated the votes with the following results: Out of a total of 25,000 shares issued and outstanding, 13,012 were voted in favor of the election of all nominees for director. Of all votes cast, 4,467 were voted by proxy and the balance of 8,545 were voted by stockholders present. Since all the votes cast rep 'esented more than 50% of all shares issued and outstanding, the Chairman then declare. all nominees for director to be duly elected. There being no further business, the meeting was then adjourned by the Chairman. Secretary Chairman PENN PRODUCTS CORPORATION Organizational Meeting Held April 27, 2011 The first and organizational meeting of the newly elected directors of Penn Products Corporation was held at the White Rock Acres Office, Boiling Springs, Pennsylvania on the 27`x' day of April, 2011, immediately following the Annual Stockholders Meeting. The following directors were present: Greg Swope, John Swope, Megan Swope and Sandra McCorkel. The minutes of the previous meeting were read and approved. On motion made by Sawn dr McCorkel and seconded by Megan Swope and carried, John Swope was elected Chairman of the meeting. On motion made by Greg Swope and seconded by Megan Swop and carried, Sandra McCorkel was elected Secretary of the meeting. The Chairman then stated at the first order of business is the election of officers to serve for the ensuing year Or until their successors are elected or appointed by the Board. Whereupon, Megan Swop nominated the following persons whose nominations were seconded by Greg Swope ?.nd carried. FOR PRESIDENT Sandra McCorkel FOR VICE PRESIDENT John Swope FOR TREASURER Sandra McCorkel FOR SECRETARY Sandra McCorkel There being no further no ations, the Chairman then instructed the Secretary to cast the ballot for the unanimous election of all nominees. Salaries and commissions jwere then discussed, and after a consensus was reached, it was decided that salaries and caommissions would remain the same. There being no further business, the meeting was then adjourned by the Chairman. C474m Secte., gi!??n4 r--- - 61 Chairman t Penn Products Corporation Special Meeting of the Board of Directors Held at the White Rock Acres Office on April 27, 2011 A special meeting of the Board of Directors was held at the White Rock Acres Office on the 27t` day of April, 2011 immediately following the Annual and Organizational Meetings of the Stockholders. The minutes of the previou? meeting were read and approved. Sandy informed the directors that Kreiders installed all sewer laterals that remained to be installed in the P Phase o Section "M', except for the four lots that abutt Section "N". Randy was trying to make sure that we would be granted permits, but Sandy told that that she thought it was best tog ahead and install them prior to the wearing course of the road being installed. She is still waiting for the paperwork to be completed before the final work is completed in is final phase of Section "M". Sandy informed the directors that the National Park Service's final appraisal came in @ September 24, 2010, at a v ue of $3,140,000. Don King of the NPS, urged Sandy to take this offer, as they are not sure what will become of the funding in the future. Via a telephone conference, the directors voted on October 0, 2010 to accept the offer. On February 3, 2011, Sandy re eived a Certificate of Inspection that had to be signed and returned to the Park Service prior to them being able to set up a settlement date. Ultimately, settlement was scheduled for February 17, 2011 and the transaction was finalized on that date. The settlement attorney for the Trail and our attorney are still working on Penn Products being reimbursed for the real estate taxes that were prepaid after this date. After our last meeting, San y spoke with Doug regarding the overdue Liability/Worker's Comp. Insurance policies. a recommended paying back the two years to cover any liability that could crop up n the future. Sandy mentioned that she would call Al Wolcott, our agent, and see if paying two years back is necessary. After some discussion, Greg Swope made a motion to d whatever Al recommends to do. John Swope seconded the motion and it was unanimo sly carried. Sandy informed the directo s that the mice seem to be invading the office this winter. John Swope made a motion to call and have an exterminator treat for the mice. Megan Swope seconded the motion and it was unanimously carried. Sandy informed the directors that she had received an email from Bob Harpster on March 25th, 2011 regarding whether or not we were going to refund his deposit monies on Lot 143 that we had been holding for three years. He had been in to meet with Sandy before the end of last year, and w extremely hostile to her at that time. Bob is trying to say that there are huge expenses to a incurred by the township and that Sandy did not disclose anything about major repairs to the system. Sandy told Bob that the township has been asserting all kinds of things for the past few decades and to date, she has not received any notification from the towns 'p regarding any major repairs and/or any cost information. Nevertheless, Sandy had Doug respond to Bob due to the hostility he showed toward her. Doug told Bob that he advised Penn Products not to refund the deposit monies as we had kept the lot off of the marker for nearly three years. In addition, if the buyer fails to make settlement, the contract call for the agreement to be null and void and deposit monies are retained as liquidated damages. We have heard nothing from Bob since Doug sent his email a month ago. Sandy informed the directo s that she has been emailing Doug as well as our excavator to see where we stand in moving forward to completing the drainage area, sewer laterals and wearing course of the wad. Sandy received a response from Doug stating that he just sent another revised easement description and drawings to the township. Hopefully, these jobs will be completed w/' another month or two. There have been a few call about lots approximately a month ago, but no one has been in touch since. t Sandy informed the directo s that Well #2 that is located on Lot 139 is not going to be used by the water company She told them that she spoke with a representative back a year or so ago and he said at we could go ahead and cap the well as long as they follow the DEP's specifications. fter some discussion, John Swope made a motion to cap the well on Lot 139 so as to gi a more building space within that lot. Greg Swope seconded the motion and it was un ously carried. If this well goes uncapped, the potential buyers for this lot would b restricted to a very small area on the lot in which they could build any structures. There being no further business, the meeting was then adjourned. i?l Chairman Secretary V Penn Products Corporation Regular Meeting of the Board of Directors Held at the White Rock Acres Office on June 5, 2011 A regular meeting of the Board of Directors was held at the White Rock Acres Office on the 5th day of June, 2011 at the hour of 2:00 P.M. with the following members present: Greg Swope, John Swope, Megan Swope and Sandra McCorkel. There was an amendment to the Organizational Meeting's minutes held on April 27th, as follows: Sandy McCorkel made a motion to appoint John Swope as Vice President of the Corporation, and the motion was seconded by Megan Swope. The minutes of the previous meeting were then read and approved. Sandy informed the directors that the water company will be installing a new storage tank on the Oak Dill Easement at some point in the near future. Someone from Aqua will be in touc? with me in the near future for an update on this project. Sandy again asked Doug to check with Don King from the National Park Service to see why our real estate ta*es have not been refunded as were due as a result of the settlement on the lands they purchased back in February. Sandy will keep after this. Sandy will be in touch wi0h Al Wolcott to see about signing up for Liability Insurance and Worker's Comp. Insurance now that the trail land has settled. Sandy has not heard anything further from Bob Harpster regarding his default on the purchase of Lot 143. Two neighbors have been feuding over the tree removal issue and are not clear on what our covenants state regarding this issue. They are asking that we further clarify the covenants in this regard. The directors discussed that this would be a hard call, and decided to table this discussion at this time. Sandy informed the directors that there have been no lot calls as of late. There being no further business, the meeting was then adjourned. Secretary Chairman Penn Products Corporation Regular Meeting of the Board of Directors Held at the White Rock Acres Office on October 12, 2011 A regular meeting of the Board of Directors of Penn Products Corporation was held at the White Rock Acres Office on the 12th day of October, 2011 at the hour of 6:00 P.M. with the following members present: Greg Swope, John Swope, Megan Swope and Sandra McCorkel. The minutes of the previous meeting were read and approved. Sandy informed the directors that our excavators completed the paving and shoulders in the last phase of Kuhn Road at the end of July in order to have the street dedicated to the township by the 1St of August. Our engineer worked feverously on the drains a area drawings, etc. and Sandy was able to get the maintenance check, dra gs, deed of dedication documents to the township by the deadline. However, and as per usual, the township did not accept the road dedication at this time. Doug told Sandy that. the township engineer repeatedly changed things as soon a$ we submitted corrections from his previous comments. Since the township did n #t accept the dedication, we are revamping the drainage area so that it will totally?be filled in along the front of the buildings lots in question and there will not be unsightly guard rails. This is what Sandy wanted them to do all along, but due to the tim$ frame they had to work in, they went with the guard rail design. Randy will be keeping us up to date on the engineering aspect of this project. Sandy informed the dire tors that Insurance and Surety has filed a complaint with the District Justice regarding back years of payments for Liability and Worker's Comp Insurance. With no communication from Al Wolcott, and having not made payments intentionally de to the financial conditions, Doug is prepared to fight this case. Sandy has asked Randy (dibble from Kreiders Excavating, to install Road Closed signs at either end of our 'newly completed portion of Kuhn Road in order to keep cars out until the road is accepted by the township. This is only necessary during the winter months when the now is on the road. This is to head off any liability issue. Sandy also informed the irectors that she has been talking with Mike McCorkel about building a spec ho a on one of our lots. Sandy told Mike that she would put the lot up and $50,000 an hold reimbursement for both until the house would sell. Mike is seriously thinkin about this. There have been no recent calls about lots. t Regular Meeting of Board of Directors October 12, 2011 Page Two J There being no further business, the meeting was then adjourned. Secretary _? - Chairman EXHIBIT 5 2011 Tax Return(s) Prepared for PENN PRODUCTS CORPORATION Client Code: tll-ppc Account Number 787449 Release Number 2011.02041 Prepared by Kochenour, Earnest, Smyser & Burg 710 South George Street York, PA 17401-3133 717-843-8855 Processing Special Instructions Messages Date: 03/11/2012 Time : 17: 20: 39 100071 05-01-11 - ProSystem fx- 2011 TAXI RETURN FILING INSTRUCTIONS U4-S. CORPORATION INCOME TAX RETURN FOR THE YEAR ENDING DECEMBER 31, 2011 Prepared for PENN PRODUCTS'CORPORATION 1369 SWOPE DR VE ? BOILING SPRINGS, PA 17007-9611 Prepared by KOCHENOUR, EARNEST, SMYSER & BURG 710 SOUTH GEORGE STREET YORK, PA 1740L-3133 To be signed and dated by THE APPROPRIA TE CORPORATE OFFICER(S). Amount of tax Total tax $ U4.595 Less: payments and credits $ 7 8 $ , 0 0 0 ...................... Plus: other amount $ 0 ... . .......... . ........................ Plus: interest and penalties, $ ,,,,,,,,,,,,,,,,,,,,,,,,, 3,,, 6 3 3 NO PMT REQUIRED $ ....................................... Overpayment Credited to your estimated tax $ 5 9. r. 7 7 2 ....................... . Other amount Refunded to you $ ..................................... Make check NOT APPLICABLE payable to Mail tax return and check (if applicable) to DEPARTMENT OF', THE TREASURY INTERNAL REVM E SERVICE CENTER CINCINNATI, 0H 45999-0012 Return must be mailed on or before MARCH 15, 2012 Special Instructions 100084 05.01-11 CARRYOVER DATA TO NEXT YEAR Name Employer Identification Number PENN PRODUCTS COR-PORATtON 23-0952620 Based on the Information provided with this return, the following are possible carryover amounts to next year. Federal Capital Loss 9,459. 2011 TAX RETURN FILING INSTRUCTIONS PENNSYLVANIA FORM RCT-101 Prepared for FOR THE YEAR ENDING ,DECEMBER 31, 2011 PENN PRODUCT CORPORATION 1369 SWOPE D IVE BOILING SPRINGS, PA 17007-9611 Prepared by KOCHENOUR, E NEST, SMYSER & BURG 710 SOUTH GE0GE STREET YORK, PA 174-3133 To be signed an dated by THE APPROPRIATE CORPORATE OFFICER(S). Amount of tax Total tax $ ,,.....,,, 2411W,99 Less: payments and credits $ 261,213.00 Plus: other amount $ 0.00 ...........................r.1......... Plus: interest and penalties $ ............................Y..r. Q Q OVERPAYMENT $ 2 0,,, 0 9,,,. 0 0 Overpayment Credited to your estimated tax $ 2 0 , 0 9 5.0 0 Other amount p Refunded to you $ ......................... Q Q 0 Make check NOT APPLICABLE payable to Mail tax return PA DEPT OF RE ENUE and check (if REFUND REQUESTED applicable) to PO BOX 2 8 0 7 0 6 HARRISBURG, PA 17128-0706 Return must be mailed on APRIL 17, 2012 or before Special Instructions 100084 05-01.11 U S Corporation Income Tax Return CMBNo.1545.0123 1120 . . Form For calendar year 2011 or tax year Department of the Treasury beginning _ ending 2011 Internal Revenue Service A Check if: Name B Employer identification number sa(attachForme a6iyreturn ....11 PENN P ODUCTS CORPORATION 23-0952620 b Lifelnonlife consoli- dated return .............. TYPE OR Number, street, and room or suite no. If a P.O. box, see Instructions. C Date Incorporated p a 2 (a ffachS-ii tgco; MM1I PRINT 1369 S OPE DRIVE 12/27/1927 3 (see Insructions)CI(P City or town, state, nd ZIP code D Total assets see instructions ( ) 4 Schedule M-3 attached ................... B0TLTN_3 SPRINGS, PA - 1 7 9 2 8 7 3. E Check if: 1 Initial r turn 2 Final return 3 Name chance 4 ddress ch ance 1 a Merchant card and third-party payments. For 20 1, enter -0- .............................. 1a 0. b Gross receipts or sales not reported on line is ( e instructions) ,,,,,,,,,,,,,,,,,,,,,,,, 1b 3 140,000. c Total. Add lines 1a and 1b ........................................................................... 1c 3 140,000. d Returns and allowances plus any other adjustments (see instructions) ,,,,,,,,,,,,,,,,,, id e Subtract line 1d from line 1c .................................................................................... .................................... 1e 3,140,000. 2 Cost of goods sold from Form 1125-A, line 8 (att?ch Form 1125-A) ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 2 E 3 Gross profit. Subtract line 2 from line 1e ,,,, 4 Dividends (Schedule C, line 19) ................................................................................................................. 4 16,278. 5 interest ............................................. ............................................................................................ 5 6 Gross rents 7 Gross royalties ......................................................................................................................................... 7 8 Capital gain net income (attach Schedule D (Fort)} 1120)) ,,,,,,,.,.., ..................................................... .... 8 9 Net gain or (loss) from Form 4797, Part II, line 1? (attach Form 4797) ,,,,,,, ,,,,,,,,, ,,,,,,,,, ,,,,,,,,, ,,,,,, 9 10 Other income (attach schedule) .................................................................................................................... 10 11 Total income. Add lines 3 through 10 ............................................... 11 3,156,278. -- 12 Compensation of officers from Form 1125-E, line 4 (attach Form 1125-E) ............................................................................................................................ ? 12 o 13 Salaries and wages (less employment credits) ................................................................................................ 13 8,100. .16 14 Repairs and maintenance ........................................................................................................................... 14 1,680. v 15 Bad debts 15 16 Rents ........................................................................................................... 16 a 17 Taxes and licenses ........................................................................ Se,?,,, Staten1e11t....?............. 17 329,002. 9 18 Interest 18 19 Charitable contributions 19 E 20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) ........................ 20 790. 0 21 Depletion ................................................. ..................................................... 21 22 Advertising ............................................................................................................................................. 22 _ 519. 23 Pension, profit-sharing, etc., plans ,,,,,,.,,, P Y 24 Employee benefit programs 25 Domestic production activities deduction (attach torm 8903) ,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,, 25 26 Other deductions (attach schedule) ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,See.,,Std ...... 26 385 343. N 27 Total deductions. Add lines 12 through 26 ..... ............................. ............................................................. ? 27 735,434. CO 28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11 „ ,,,,,,, 28 2 , 420 r 844 . 29a Net operating loss deduction (see Instructions) F ,hStatement 3 . 29a 278 286 . v -, .. ,,, , ,,,,,., b Special deductions (Schedule C, line 20) ,,,,,,,,,, ,,,,,,,,,,,,, 29b 11,395. ................. c Add lines 29a and 29b ................................................................................................................................ 291 289 681 . y 30 Taxable income. Subtract line 29c from line 28 ( ea instructions) ,,,,,,,,,,,,,,„......,....,,,,,,.,,,.,.,,,,...,..,,..,......._.. 30 2 131,163 . Y 31 Total tax (Schedule J, Part I, line 11) ........ , ...... ......... 31 _ 724 , 595 . 2D 32 Total payments and refundable credits (Schedule J, Part II, line 21) ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 32 788 , 000 . a >V 33 Estimated tax penalty (see instructions). Check if orm 2220 is attached ......... ......... ............ . 0- FX 33 3 633 . d9 34 Amount owed. If line 32 is smaller than the total f lines 31 and 33, enter amount owed ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 34 0 . co 35 Overpayment. If line 32 is larger than the total of ines 31 and 33, enter amount overpaid 35 . 59 772 X 36 Enter amount from line 35 you want:'Credited to 012 estimated tax ? 59,772. Refunded ? 36 Sign Here Under penalties of perjury, I declare that I have examine correct, and complete, Declaration of preparer (other th this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, taxpayer) is based on all information of which preparer has any knowledge. MaY the IRS discuss this r turn d the prepar er ! sRewn`?alow9 'Signature of officer Date , ®Yes 0 , "tie Paid PrlnVrype preparer's name HILIP G. LAUER Prepararia ig ure Date 03/11/12 Check efmpl yedEl N PTI00109006 Preparer Firm'sname? Kochenour Ea net Sm s r & Bur Firm'sEIN? 23-1315156 Use Only j Firm'saddress? 710 South G Street Phoneno.717-843-8855 York PA 17 33 12 12'11 JWA For Paperwork Reduction Act Notice, see Instructions. Form 1120 (2011) Form 1120 (2011) PENN PRODUCTS COR ORAT ION 23-0952620 Pa e 2 Schedule C Dividends and Special eductions (see instructions) (a) Dividends received (b) °% ° (c) Special deductions (a) x (b) 1 Dividends from less-than-20%-owned domestic Corp ations (other than debt-financed stock) ........................•..... $.t mt... 4 16,278. 70 11,395.' 2 Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock) ................... 3 Dividends on debt-financed stock of domestic and foreign corporations ... , see instru°eons 4 Dividends on certain preferred stock of less-than-20%}owned public utilities .................. 42 5 Dividends on certain preferred stock of 20%-or-more-awned public utilities ..................... 48 6 Dividends from less-than-20%-owned foreign corporations and certain FSCs .................. 70 7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs ,,,,,,,,,,,,,,,,,, 80 8 Dividends from wholly owned foreign subsidiaries .., ...............,,.,.,.,,,,...,.....,, . 100 9 Total. Add'lines 1 through 8 ................................. P.Q.e,.,stat fmgnt 11,395. 10 Dividends from domestic corporations received by a srl all business investment company operating under the Small Business Investment Act of 1958 ........................... 100 I 1 Dividends from affiliated group members ................................ .............................. 100 12 Dividends from certain FSCs .,..,,,,,..„..... .................. 100 13 Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12 ............... 14 Income from controlled foreign corporations under subbart F (attach Form(s) 5471) ................................................................... ................................ 15 Foreign dividend gross-up ................................................................................ 16 IC -DISC and former DISC dividends not Included on links 1, 2, or 3 17 Other dividends .................................................:............................................... 18 Deduction for dividends paid on certain preferred stock bf public utilities ,,,,,,,,,,,,,,,,,,,,,,,, 19 Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 ,,,,,,,,,,,,,,, ? 16,278. Farm 1120 (2011) 111611 12-12-11 JWA Form 1120 (2011) pENN PRODUCTS CORP RATION 23-0952620 Page 3 Schedule J Tax Comp utation and Pa meet see instructions Part I - Tax Computation f Check if the corporation is a member of a controlled gr up (attach Schedule 0 (Form 1120)) ? 2 Income tax. Check if a qualified personal service corpor! ?tton Stmt 6 (see instructions) ................................................... .......... ? 0 2 724,595. 3 Alternative minimum tax (attach Form 4626) 3 4 Add lines 2 and 3 .............................................. ...i.......... ................................................................................. 4 724,595. 5a Foreign tax credit (attach Form 1118) ..................... . , ,..,,... 5a b Credit from form 8834, line 30 (attach Form 8834) ..... ........ ............. .................... .. 51) c General business credit (attach Form 3800) ,,,,,,,,,,,,;,,,,,,,,,,,,,,,,, ,,,, 50 d Credit for prior year minimum tax (attach Form 8827) ,.,, ................ 5d e Bond credits from Form 8912 6 Total credits. Add lines 5a through 5e ......................................................................... ................... ................... 6 7 Subtract line 6 from line 4 ................................................................................................................................ 7 724 595. 8 Personal holding company tax (attach Schedule PH (Forlm 1120)) 8 9a Recapture of investment credit (attach Form 4255) ,,,,,, ,, 9a b Recapture of low-income housing credit (attach Form 8011) ,,,,,,,,, ,,,,,,,,,,,,,,,, 9b c Interest due under the look-back method-completed lonb-term contracts (attach Form 8697) ...................................................................................... 90 d Interest due under the look-back method-income foreca ?t method (attach Form 8866) ,,, 9d e Alternative tax on qualifying shipping activities (attach F6 rm 8902) ,,,,,,,,,,,,, 9e f Other (see instructions - attach schedule) ,,,,,,,,,,,,,,,,, ,,,,,,,,,...... 9f 10 Total. Add lines 9a through 9f ,,,,,,,,,, ,,, ,,,,,,,, 10 11 Total tax. Add lines 7 8 and 10. Enter here and on pago 1 line 31 ....................................... 11 724,595. Part II - Payments and Refundable Credits 12 2010 overpayment credited to 2011 ................................................ 12 13 2011 estimated tax payments ............................................................................................................................ 13 788,000. 14 2011 refund applied for on Form 4466 ,...,. .................................................... 14 15 Combine lines 12, 13, and 14 ......................... ......... 15 _788,000, 16 Tax deposited with Form 7004 ,.,.,..,,.,. 17 Withholding (see Instructions) .......................................... ...................................................... ........... 17 18 Total payments. Add lines 15, 16, and 17 .................:..................................... ....... .............................................. 18 788,000. 19 Refundable credits from: a Form 2439 b Form 4136 c Form 3800, line 17c and Form 8827, line 8c ,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 190 d Other (attach schedule - see Instructions) ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,„.,.,,,,,.,.,..,,,,,,,....,... 19d 20 Total credits. Add lines 19a through 19d ........ ......... ......... ......... ..... ........ .................................... 20 21 Total a meets and credits. Add lines 18 and 20. Enter ere and on a e i line 32 ...................................................... 21 7 8 8 0 0 O. Schedule K Other Information see Instruc ions 1 Check accounting method: a [I Cash b ® Accrual c 0 Other(specify) ? Yes No 2 See the instructions and enter the: a Business activity code no. ? 5 313 9 0 b Business activity ? REAL ESTATE c Product or service ? BUILDING LOTS _ 3 Is the corporation a subsidiary in an affiliated group or a pa ent-subsidiary controlled group? ,,,,,,,,,,,,,,,,,,,,,,,,,,,,, It "Yes," enter name and EIN of the parent corporation ? 4 At the end of the tax year: a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or I directly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part of Schedule G (Form 1120) (attach Schedule G) ,., $ b Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 11201 (attach Schedule 61 x Form 1120 (2011) 111621 12-12-11 JWA Form 1120 (2011) PENN PRODUCTS COR ORATION 23-0952620 Page 4 Schedule K Other Information continued see Instructions Yes No 5 At the end of the tax year, did the corporation: a Own directly 20% or more, or own, directly or indirectiy,150% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not Included on Form 851, Affiliations Schedule? For rules of constructive ownership, see Instructions ... " " ....••,,,,,••,. X If Yes com lets i throw h iv below. I Name or Corporation O N Employyer Identification Number Of any) of S) ry Incorporatbn li Count (Iv) Percentage Owned in Voting Stock b Own directly an Interest of 20% or more, or own, directlylor indirectly, an interest of 50% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial Interest of a trust? For rules of constructive ownership, see instructions .... " " .• •. ••....... T X if Yes complete I through iv below. (1) Name of Entity li Em to er Identif cation Number (if any) nl Country () of organization v azimum Percentage Ownedin Ptorit, Loss,or Capital 6 During this tax year, did the corporation pay dividends (ot excess of the corporation's current and accumulated earn " er than stock dividends and distributions in exchange for stock) in ngs and profits? (See sections 301 and 316.) X If Yes; file Form 5452, Corporate Report of Nondividend istrlbutlons. If this is a consolidated return, answer here for the parent orporation and on Form 851 for each subsidiary. 7 At any time during the tax year, did one foreign person ow l, directly or Indirectly, at least 25% of (a) the total voting power of all classes of the corporation's stock entitled to vote or (b) th{ P total value of all classes of the corporation's stock? ,,,,,....., ............................ ..... ....... X Far rules of attribution, see section 318. If "Yes;' enter: (I) Percentage owned ? and (i ) Owner's country ? (c) The corporation may have to file Form 5472, Informal Corporation Engaged In a U.S. Trade or Business. Enter th on Return of a 25% Foreign-Owned U.S. Corporation or a Foreign e number of forms 5472 attached ? 8 Check this box if the corporation issued publicly offered d If checked, the corporation may have to file Form 8281, Ini 9 Enter the amount of tax-exempt Interest received or accrue bt Instruments with original issue discount ,ormation Return for Publicly Offered Original Issue Discount Instruments. d during the tax year ? $ 0 Enter the number of shareholders at the end of the tax year (if 100 or fewer) ? 11 1 If the corporation has an NOL for the tax year and is electin g to forego the carryback period, check here If the corporation is riling a consolidated return, the statement require 2 Enter the available NOL carryover from prior tax years (do by Regulations section 1.1602-21(bK3) must be attached or the election will not be valid. of reduce it by any deduction on line 29a.) ? $ _ 2 7 8 , 2 8 6 . 3 Are the corporation's total receipts (line 1c plus lines 4 thr tax year less than $250,000? " " ugh loon page 1) for the tax year and its total assets at the end of the X Yes, If the corporation is not required to complete Schedu distributions and the book value of property distributions (o 4 is the corporation required to file Schedule UTP (Form 1121 " " les L, M-1, and M-2 on page 5. Instead, enter the total amount of cash ther than cash) made during the tax year. ?$ )), Uncertain Tax Position Statement (see instructions)? X If Yes, complete and attach Schedule UTP. is Did the corporation make any payments in 2011 that would " " require it to file Form(s) 1099 (see instructions)? X b If Yes, did or will the corporation file all required Farms 10 9? X .n .. nAIA ............................ ... Form 1120 (2011) Form 1120 (2011) pENN PRODUCTS CORPORATION 23-0952620 Page 5 ScheduleL Balance Sheets Per Books Beginning of tax year End of tax year Assets a b c (it) 1 Cash .................. .... ...... ....................... 19 069. 12,946. 2a Trade notes and accounts receivable ,.,. 1,895. b Less allowance for bad debts .,,,..... ;; 1,895. 3 Inventories 4 U.S. government obligations .................. 5 Tax-exempt securities ............ 6 Other current assets (att. sch.) ...$.i 2,213. 73,789. 7 Loans to shareholders 8 Mortgage and real estate loans,,,,,,,,,,, 9 Other Investments (att. sch.) ,,, 1,067,053. 10a Buildings and other depreciable assets ...... 40,976. 40,976. b Less accumulated depreciation ............... 33 634 7,342. 34, 425 6,551. 11a Depietable assets ................................. 5,822. 5,822. b Less accumulated depletion ,,,,,,,,,,,,,,,,,,,,, 4 466 1 356. 4 466 1,356. 12 Land (net of any amortization) ,,,,,,,,,,,,,,,,,, 13a Intangible assets (amortizable only) ..... .„ b Less accumulated amortization 14 Other assets (att. soh.) .,,,,, t,,..9 541,661. 629,283. 15 Total assets ....................................... 571 641. 1 792 873. Liabilities and Shareholders' Equity 16 Accounts payable „,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 831 344. , , 385,787. 17 Mortgages, notes, bonds payable in less than 1 year 16 Other current liabilities (all. sch.) ,,,,,,,,,,,,,,,,,,,,, 19 Loans from shareholders,,,.,.„ ................ 20,000. 20 Mortgages, notes, bonds payable in 1 year or more 21 Other liabilities (att. sch.) ........................ 22 Capital stock: a Preferred stock bCommon stock ,,,,,, 25,000. 25,000. 25,000. 25,000. 23 Additional paid-In capital ........................ 24 Retained earnings - Appropriated (attach schedule) ..................... 25 Retained earnings - Unappropriated ,,,,..... " <304,703. > 1,382,086. 26 Adjustments to shareholders' equity (attach schedule) ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 27 Less cost of treasury stock ,,,,,,,,,,,,,,,,,,,,, 28 Total liabilities and shareholders' equity_... 571 6 41. 1,792,873. Schedule M-1 Reconciliation of Inco Note: Schedule M-3 required lnst me (Loss) per Books With Income per Return ad of Schedule M-1 if total assets are $10 million or more - see Instructions 1 Net income (loss) per books ..................... 1 6 8 6 7 8 9 . 7 Income recorded on books this year not 2 Federal income tax per books „ .................„ 724,596 . Included on this return (itemize): 3 Excess of capital losses over capital gains 9,459 . Tax-exempt Interest $ 4 Income subject to tax not recorded on books this year (itemize): _ 8 Deductions on this return not charged 5 Expenses recorded on books this year not deducted on this return (itemize): a Depreciation,...,. $ Charitable b contributions ...... $ against book Income this year (itemize): a Depreciation ,,.., $ bconcnarcontributCharitable ibueabe $ ons ......... Travel and C entertainment .., $ 9 Add lines 7 and 8 6 Add lines f through 5 ................................. 4 2 0 8 44. 10 Income (page 1 line 28 tine ti less tine 9 ...... F 2 42 0 8 44 . Schedule M-2 Anal sis of Una ro ri ted Retained Earnings per Books Line 25, Schedule L 1 Balance at beginning of year ..................... <3 0 4 7 0 3 . 5 Distributions: a Cash 2 Net income (loss) per books ..................... 686 789. b•Stock 3 Other Increases (itemize): c Property ,,,,,,,,,,,,,,,,,, 6 Other decreases (itemize) 7 Add lines 5 and 6 4 Add lines 1 2 and 3 ................................ 3 82,086. ................................ ..... 1 8 Balance at end of year Ilne 41ess line 7 1,382,086. 12-12 -11 JwA Form 1120 (2011) SCHEDULE D Capital Gains and Losses (Form 1120) ? Attach to Form 1120, 1120-0, 1120-F, 1120•FSC,1120-H, 1120-10-DISC, 1120-L, 1120-ND, Department of the Treasury 1120-PC 112P-POL Internal Revenue Service , , 1120-REIT, 1120•RIC 1120-81', or certain Forms 990-T. ? See separate Instructions. Name OMB No. 15450123 2011 Part I _ I Short-Term Capital Gains an Losses - Assets Held Onp Ypar nr Lpsc (a) Description of property (Example: 100 shares of Z Co.) (b) Date acqui ad (mo., day, yr,) (c) Date sold (mo., day, yr.) (d) Sales price (see instructions) (e) Cost or other basis (see Instructions) (f) Gain or (loss) (Subtract (e) from (d)) iSee attached Charles Schwab ariou arious 320 836. 330 092. <9 256. GreenHaven CC Index Fund ariou Various 1,071. <1,071. 2 Short-term capital gain from installmen t sales from Fo m 6252, line 26 or 37 ......... ................................................. ... 2 3 Short-term gain or (loss) from like-kind exchanges frolm Form 8824 -........ * .................. 3 4 Unused capital loss carryover (attach computation) ..................... ..I.... I ................ 4 5 Net short-term capital gain or (loss). Combine lines 1. hrou h 4 ....... ......... ...................... ......................... 5 <10,327.: 1 11-01 1.111 1 t.Vrlcy- 1 vim Vaplial ualns ana (LOSSES - ASSetS Hprn Mnrp Than nna Vanr 6 7 Enter gain from Form 4797, line 7 or 9 .............................................................................................................. 7 _ 8 Long-term capital gain from Installment sales from Form 6252, line 26 or 37 ............................................ 8 9 Long-term gain or (loss) from like-kind exchanges froth Form 8824 .... ......... ......... ...........-' 9 10 Capital galn distributions (see Instructions) ......... „ ....... ......... 10 868. 11 Net long-term capital gain or (loss). Combine lines 6 t rou h 10 .............................................................................. 71 868. L r01 r. 111 1 Ou111111ar}r VT rarL5 I a"O 11 12 Enter excess of net short-term capital gain (line 5) ove net long-term capital loss (line 11) ............... 12 13 Net capital gain. Enter excess of net long-term capital gIOin (line 11) over net short-term capital loss (line 5) 13 14 Add lines 12 and 13. Enter here and on Form 1120, pate 1, line 8, or the proper line on other returns i d ............................................................hh..........,................................................................................. Note. If losses exceed pains, see 0aPita t losses In the Instructions JWA For Paperwork Reduction Act Notice, see the Instr tions for Form 1120. Schedule D (Form 1120) (2011) 121051 12.20-11 r } O ? N } V) F= W Q? W a E ? Z 1= ? O Q tD J LLJ U Q ? J C O 3Z ?cn `V V I NII ?. N r ?' O N N O '; 0 l f r i i O ' O O j N 1 - ? 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O ? y O m q O I O w O o 1 c*> M ? r co co t c t V r N t0 O t• ` V' M N o O M c o t A tV cV fV O I V y N M N t h a M ) 0 M pp pp p p M 0? N 0 m o rn Nm N rn rn p? o c O i O i 03 `o F U w U > N 9 N ? a Q o _w 0. U U t: Ae Q ? d r Q' J Ib C S z gg T z a a a d a D O ? Q ? O t7 O tq u1 N y C O 'C O 'C U 'C 'C O 'C O 'C t/7 > N > N > N N > y > > y a N ? s Q }N , ? 5 jj r G ) ? b 3 J 'a 0 p m c a Z N ? ?e tL ° o H _N t0 O 0 W ? o ?V a ,. ?? w b yN O J C 4 f c ? N E vz' V G /) 4 d V ?? w o N ? w i O o O ? Q N ? w g I? yN w p? N I P N w P s P i` CF) rn w O O O w 0 0 g tai w I? w V. V- s ti W) OD D O A O C ? ?I n tvo ? I?lj N N O O o ? 0 C3, N r N N M PQ9 N N i O A 12 Form 1125-E ( Compensation of Officers (December 2011) / OMB No. 1545-2225 Department of the Treasury A?tach to Form 1120, 1120-0, 1120-F, 1120-RIC. Internal Revenue Service See se arate instructions i 110- Noma .. , Employer Identification number PENN PRODUCTS CORPORATION 23-0952620 Note. Complete Form 1125-E only if total receipts ar? $500,000 or more. See instructions for definition of total receipts. (a) Name of officer (b) Social security nt of (0) Perc Percent of stock owned (f) Amount of number I e business (d) Common (e) Preferred compensation 1SANDRA L. MCCORKEL 175-48-6956 100 i i 2 Total compensation of officers ...............:..................j .....,.......................,... ............................................... . 2 3 Compensation of officers claimed on Form 1125-A or el+ here on return ............. ............ 3 4 Subtract line 3 from line 2. Enter the result here and on Fo appropriate line of our tax return .............................. rm 1120, page 1, line 12 or the ............................. ......................................................... q 0 , For Paperwork Reduction Act Notice, see separate Instructions. Form 1125-E (12-2011) i 124451 01-19-12 Form 2220 Underpayment of Estimated Tax by Corporations OMeNo.1645.0142 Department or the Treasury ? See separate Instructions. 2011 Internal Revenue Service ? Attach to the corporation's tax return. Name Employer identification number PENN PRODUCTS CORPORATION 23-0952620 Note: Generally, the corporation is not required to file Form 2220 (see Part I I below for exceptions) because the IRS will figure any penalty owed and bill "the corporation. However, the corporation may still use »orm 2220 to figure the penalty. If so, enter the amount from page 2, line 38 on the estimated tax penalty line of the corporation's Income tax return, bot do not attach Form 2220. 1 Part 1 1 Required Annual Pavment 1 Total tax (see instructions) ....................................................................................................................... 2 a Personal holding company tax (Schedule PH (Form 11 0), line 26) included on line 1 ............... 2a b Look-back interest Included on line 1 under section 46 (b)(2) for completed long-term contracts or section 167(g) for depreciation under the I come forecast method ........................ 2b c Credit for federal tax paid on fuels (see instructions) ,F,,,,,,,,,,,,,„.,.,,,., 2c d Total. Add lines 2a through 2c ........................... 3 Subtract line 2d from line 1. If the result Is less than $5?0, do not complete or file this form. The corporation does not owe the penalty ...................................................................................................................................... 4 Enter the tax shown on the corporation's 2010 Income x return (see instructions). Caution: If the tax is zero or the tax year was for less than 12 months, skip this line and enter the amountfrom line 3 on line 5 ,, 5 Required annual payment. Enter the smaller of line 3 Or line 4. If the corporation Is required to skip line 4, 724,595. 724.595. Part II Reasons for Filing - Check the box below that apply. If any boxes are checked, the corporation must file Form 2220 even if it does not owe a penalty (see Instruct ns). 6 t_1 The corporation is using the adjusted seasonal tstallment stallment method. 7 0 The corporation is using the annualized income method. 8 0 The corporation Is a "large corporation" figuring ?ts first required installment based on the prior year's tax. Part III I Figuring'the Underpavment a b c d 9 Installment due dates. Enter in columns (a) through (d) the 15th day of the 4th (Form 990-PF filers: Use 5th month), 6th, 9th, and 12th months of the corporation's tax year ................................................ 9 04/18/2011 06/15/2011 09/15/2011 12/15/2011 110 Required installments. If the box on line 6 and/or line 7 above Is checked, enter the amounts from Sch A, line 3$. If the box on line 8 (but not 6 or 7) is checked, see instructions for the amounts to enter. If none of these boxes are checked, enter 25% of line 5 above in each column,,,,,,,,,,,,,,,,., ,,. 10 181.149. 181,149. 181,148. 181,149. 11 Estimated tax paid or credited for each period (see instructions). For column (a) only, enter the amount from line 11 on line 15 ............................................. 11 788,000. Complete lines 12 through 18 of one column before going to the next column. 12 Enter amount, if any, from line 18 of the preceding colunpn 12 244,554. 13 Add lines 11 and 12 ,,,,,,,,,,,,,,,,,, .................... 13 788 000. 244,554. 14 Add amounts on lines 16 and 17 of the preceding column 14 181,149. 362,298. 15 Subtract line 14 from line 13. If zero or less, enter -0- ,.,,, 15 425,702. 244,554. 16 If the amount on line 15 is zero, subtract line 13 from Iln? 14. Otherwise, enter -0- ............................................ 16 181 14 9 . 17 Underpayment. It line 15 is less than or equal to line 10,1 _ subtract line 15 from line 10. Then go to line 12 of the ne ?CI column. Otherwise, go to line 18 .......... .............. ...„ 17 181 149. 181,149. 18 Overpayment. If line 10 is less than line 15, subtract line 1 10 from line 15. Then o to line 12 of the next column ..... ... 18 244,554. JWA For Paperwork Reduction Act Notice, see separate linstrurtions. Form 2220 (2011) 112801 12.03.11 PEIM PRODUCTS CORPORATION 23-0952620 Form 2220(2011) Page 2 Part IV Figuring the Penalty 19 Enter the date of payment or the 15th day of the 3rd m?nth after the close of the tax year, whichever is earlier (see instructions). (Form 990-PF and Form 990-T filers: Use 5th month instead of 3rd month,) .................. ...... 20 Number of days from due date of installment on line 9 to the date shown on line 19 ............................................... .... 1 21 Number of days online 20 after 4/15/2011 and before 7/1/2011 22 Underpayment on line 17 x Number of days on line 21 x 4% ,,, 365 I 23 Number of days on line 20 after 06/30/2011 and before 10/11/2011j 24 Underpayment on line 17 x Number of days on line 23 x 4% 365 25 Number of days on fine 20 after 9/30/2011 and before 1/1/2012 , 26 Underpayment online 17 x Number of days on line 25 x 3% 365 27 Number of days online 20 after 12/31/2011 and before 4/1/2012 „ 28 Underpayment online 17 x Number of days online 27 x3% 366 29 Numbs( of days online 20 after 3/31/2012 and before 7/112012 „ 29 30 Underpayment on line 17 x Number of days on line 29 x30 366 31 Number of days online 20 after 6/3012012 and before 10/01/2012 ... 1 31 Statement 110 32 Underpayment online 17 x Number of days on line 31 x'% ,.,. {.,,, 32 366 33 Number of days online 20 after 9/30/2012 and before 1/1/2013 33 34 Underpayment online 17 x Number of days online 33 x'% ,,,, 34 366 35 Number of days on line 20 alter 12131/2012 and before 2116/2013 35 36 Underpayment online 17 x Number of days on Ilna 35 x'% 36 365 37 Add lines 22, 24, 26, 28, 30, 32, 34, and 36 ,,,,,,,,,,,,,,,,,,,,,,, 3] 2 38 Penalty. Add columns (a) through (d) of line 37. Enter tale total here and on Form 1120; line 33; 11. * Use the penalty interest rate for each calendar quarter, whic the IRS will determine during the first month in the preceding quarter. These rates are published quarterly in an IRS News Release a 0d In a revenue ruling in the Internal Revenue Bulletin. To obtain this information on the Internet, access the IRS website at www.l?.gov. You can also call 1-800.829-4933 to get interest rate Information. JWA Form 2220 (2011) 112802 12-06-11 PENN PRODUCTS CORPORATION 23-0952620 Form 1120 Taxes and Licenses Statement 1 Description Amount OTHER TAX 90. PA CAPITAL STOCK 4,433. PAYROLL 67,852. REAL ESTATE 20,094. Pennsylvania Taxes - Based on Income 236,533. Total to Form 1120, Line 17 329,002. Form 1120 Other Deductions Statement 2 Description Amount COMMISSIONS 337,500. DIRECTORS' FEES 200. ELECTRICITY 1,844. INSURANCE 15,483. LAND DEVELOPMENT COST OF LOTS SOLD LEGAL AND ACCOUNTING FEES 18,675. OFFICE EXPENSE 7,661. POSTAGE 132. SEWER AND WATER EXPENSE 1,183. SNOW REMOVAL & MOWING 1,709. TELEPHONE 956. Total to Form 1120, Line 26 385,343. Net Operating Loss Deduction Statement 3 Loss Previously Loss Available Tax Year Loss Sustained Applied Remaining This Year 12/31/07 107,373. 11,821. 95,552. 95,552. 12/31/08 80,902. 80,902. 80,902. 12/31/09 101,832. 101,832. 101,832. NOL Available This Year 278,286. 278,286. Statement(s) 1, 2, 3 PENN PRODUCTS CORPORATION 23-0952620 Schedule C Domestic Dividends Subject to 70% Deduction Statement 4 Description CHARLES SCHWAB & CO ACNB Total to Schedule C, Line 1 Amount 4,512. 11,766. 16,278. Statement(s) 4 PENN PRODUCTS CORPORATION 23-0952620 Diiridend Deduction Worksheet Statement 5 1. Refigure taxable income efore NOL and special deductions. . 2. Complete lines 10, 11 12, column (c), and enter the total here . . . . . 3. Subtract line 2 from line1 . . 4. Multiply line 3 by 80% .'i. . . . . . . . , 5. Add lines 2, 5, 7, and 8' column (c), and the part of the deduction on line 3, col (c), that is attributable to dividends from 20%-or-mo a-owned corporations . . . . . . . 6. Enter the smaller of 1in¢ 4 or 5. If line 5 is greater than line 4, stop here; enter ',the amount from line 6 on line 9, column (c), and do not complete the rest of this worksheet . 7. Enter the total amount o? dividends from 20%-or-more-owned corporations included on 'lines 2, 3, 5, 7 and 8, column (a). 8. Subtract line 7 from line 3 . . . . . . . . . . . . . . . . 9. Multiply line 8 by 70% . . . . . . . . . . . 10. Subtract line 5 above from line 9, column (c). . . . . . . . 11. Enter the smaller of lin' 9 or line 10 . . . . . . . . . 12. Dividends-received deduc ion after limitation (sec. 246(b)). Add lines 6 and 11. Enter the result on line 9, column (c) . 2,420,844 2,420,844 1,936,675 2,420,844 1,694,591 11,395 11,395 11,395 Statement(s) PENN PRODUCTS CORPORATION 23-0952620 Tax Computation Statement 6 1. Taxable Income . . . . . . . . . . . . . . . 2,131,163 _ 2. Lesser of Line 1 or Firot Bracket Amount 50,000 3. Line 1 Less Line 2 . . . . . . . . . . . . . 2,081,163 4. Lesser of Line 3 or Second Bracket Amount 25,000 5. Line 3 Less Line 4 . . . . . . . , . , . . 2,056,163 6. Income Subject to 34% Tax Rate . . . . . . . 2,056,163 7. Income Subject to 35% Tax Rate . . . . . . . 0 8. 15 Percent of Line 2 .. . . . . . . . . . . 7,500 9. 25 Percent of Line 4 . . . . . . . . . . 6,250 10. 34 Percent of Line 6 . . . . . . . . . . . . 699,095 11. 35 Percent of Line 7 . . . . . . . . . . . . 0 12. Additional 5% Surtax. . . . . . . . . . . 11,750 13. Additional 3% Surtax .. . . . . . . . . . . 0 14. Total Income Tax . . . . . . . . . . . . . . 724,595 Statement(s) 6 PENN PRODUCTS CORPORATION 91-noti292n Schedule L Other Current Assets Statement 7 Description PREPAID TAXES PREPAID TAXES-CORP Total to Schedule L, Line 6 Beginning of ..End of Tax Tax Year Year 2,213. 138. 73,651. 2,213. 73,789. Schedule L Other Investments Statement 8 Description CHARLES SCHWAB & CO Beginning of End of Tax Tax Year Year Total to Schedule L, Line 9 1,067,053. Schedule L Other Assets Statement 9 1,067,053. Description REAL ESTATE Total to Schedule L, Line 14 Beginning of Tax Year 541,661. 541,661. End of Tax Year 629,283. 629,283. Statement(s) 7, 8, 9 PENN PRODUCTS CORPORATION 23-0952620 Form 2220 Computation of Underpayment Penalty Statement 10 Q T EVENT REMAI ING PERIOD OF DAYS INT_ AMOUNT OF R AMOUNT TYPE * UNDERPAYMENT UNDERPAYMENT RATE PENALTY A Q 181,'149. 04/15/2011 08/15/2011 122 4% 2,422. <788,000.>P <606,851.> 08/15/2011 0 4% 0. B Q 181,A49. 06/15/2011 08/15/2011 1 61 4% 1,211. <606,851.>P <425, 702.> 08/15/2011 0 4% 0. Total to Form 2220, Line 38 3,633. Event Type; Q = Amount und erpaid at start of quarter P = Payment W = Withholdin R = Interest r g to change L = Switch to f or from a leap year Statement(s) 10 1010011141 -j I lill il I III I ill ll I IIII III II II III I III I IIIII IIII I I IIII IIII IIII L. RCT-101 (07.11) PAGE 1 OF 6 DEPARTMENT USE ONLY PA CORPORATE TAX REPORT 2O 1 1 A A= 1120 B = 1120S C = 1120C D =1,120F E = 1120H F =1065 G = 1040 H = Other STEP A Tax Year Beginning X X 01012 01,1 Tax Year Ending X X 12312011 r? STEP B Amended Report X X N 5253 Week Filer X X N First Report X X N Federal Extension Gr anted X X N Address Change X X N KOZ/EIPISOA Credit X X N c Regulated Inv. Co. X X N Change Fed Group X X N File Period Change X X N STEP C Tax Account ID X X 1 2 5 3 2 6 Parent Corporation EIN Federal EIN XX 23095 620 Business Activity Code X X S3139 Corporation Name XX PENN PRODUCTS CORPORATION Address Line 1 X X Address Line 2 XX 1369 WOPE DRIVE city XX BOILI G SPRINGS State X X PA zip XX 170071611 USE WHOLE DOLLARS ONLY STEP E: STEP D A. Tax Liability B. Estimated C. Restricted Payment Due/Overpayment from Tax Report Payments & Credits Calculation A minus B minus C (can not be less than zero) Credits on Deposit See Instructions CS/FF 4585 2213 0 2372 LOANS 0 0 0 0 CNI 236533 259000 0 -22467 TOTAL 241118 261213 0 -20095 STEP F: Transfer/Refund Method: See Instructions Made Payment Electronically N 2 0 0 9 5 Transfer: Amount to be credits to the next tax year after offsetting all unpalld liabilities 0 Refund: Amount to be refunded after offsetting all unpaid liabilities STEP G: Corporate Officer (Sign affirmatMon below) NAME PHONE 7172586481 EMAIL FORM 1019 BARCODE 0000 I affirm under penalties prescribed by law this report, Including any accompanying schedules and statements, has been examined by me and to the best of my knowledge and belief Is a true, correct and complete feporl. If this report Is an amended report, the taxpayer hereby consents to the extension of the assessment period for this tax year to one year from the date of filing of this emended report or three years from the filing of the original report, whichever pert d last expires, and agrees to retain all required records pertaining to that tax and tax period until the and of the extended assessment period, regardless of any statutory provision providing for shorter period of retention. For purposes of this extension, an original report filed before the due date is deemed filed on the du date. I am authorized to execute this consent to the extension of the assessment period. Corporate Officer Signature Date 1010011241 TAX ACCOUNT ID 1253251:3 TAX YEAR END 1231 011 NAME PENN PRODUCTS CORPORATION RCT-101 PAGE 2 OF 6 PACORPORATE TAX REPORT 201 b SECTION A: CS/FF OLDEST PERIOD TAX PERIOD TAX PERIOD FIRST BEGINNING ENDIN BOOK INCOME YEAR 1 01012007 1231 007 -107373 Investment InLLC XX N YEAR 2 01012008 1231 008 -80902 Holding Company XX N YEAR 3 01012009 1231 009 -101832 Family Farm XX N YEAR 4 01012010 1231 010 11821 YEAR 5 YEAR 6 YEAR 7 CUR YR 01012011 1231011 1686789 USE WHOLE DOLLARS ONLY 2. TOTAL BOOK INCOME (sum of income for all tax periods up to, but not over 5 years total) 2 1408503 3. DIVISOR (in years and in part years rounded to three docimal places) See instructions. 3 5.000 4. Divide Line 2 by Line 3. 4 281701 5. AVERAGE BOOK INCOME - Enter Line 4, or if Line 4 is loss than zero enter "O". 5 281701 6. Divide Line 5 by 0.095. 6 2965274 7. Shareholders' equity at the END of the current period 7 1407086 8. Shareholders' equity at the BEGINNING of the current period 8 -279703 9. If Line 7 is more than twice as great or less than half as nnuch as Line 8, add 9 7 0 3 5 4 3 Lines 7 and 8 and divide by 2. Otherwise enter Line 7. 10. NET WORTH - Enter Line 9, or if Line 9 is less than zeroienter "O". 10 7 0 3 5 4 3 11. Multiply Line 10 by 0.75. 11 527657 12. Add Lines 6and11. 12 3492931 13. Divide Line 12 by 2. 13 1746466 14. Valuation deduction 14 -160000 15. CAPITAL STOCK VALUE - Line 13 less Line 14, but not less than "0". If 100% taxable, 15 1586466 enter Line 15 on Line 17. 16. Proportion of taxable assets or apportionment proporti n (from Schedule A-1, Line 5) 16 1 .000000 17. TAXABLE VALUE - Multiply Line 15 by Line 16. If less t an zero, enter "0". 17 1586466 18. CAPITAL STOCK/FOREIGN FRANCHISE TAX - Multiply ine 17 by - 0 0 2 8 9 0. 18 4585 Total Beginning of Taxable Year Assets 571641 Total End of Taxable Year Assets 17 9 2 8 7 3 174302 11-01-11 CCH 1010011241 , j 1010011341 TAX ACCOUNT ID 1253 56 TAXYEAREND - 1231 011 NAME PENN PRODUCTS CORPORATION RCT-101 PAGE 3 OF 6 PAC RPORATE TAX REPORT 20 1 1 SECTION B: Bonus Depreciation Business Trust X X N 1. Current year fed, deprec. of 168k prop. 1 0 Solicitation Only X X N 2. Current year adj. for disp, of 168k prop. 2 0 Single-Member LLC X X N 3. Other adjustments 3 0 Multi-Member LLC X X N (Attach schedule C-3 if claiming PA-S Corporation X X N bonus depreciation.) Taxable Built-in Gains X X N e USE WHOLE DOL LARS ONLY SECTION C: CORPORATE NET INCOMEITAX 1. Income or loss from federal return on a separate compahy basis 1 2420844 2, DEDUCTIONS: A. Corporate dividends received (from Schedule C-2, Lihe 6) 2A 11395 B. Interest an U.S. securities (GROSS INT less EXPENS?S) 2B 0 C. Curr yr. addti. PA deprec. plus adjust. for sale (attach Schedule C-3) 2C 0 D. Other (attach schedule) See instructions. 2D 0 TOTAL DEDUCTIONS - Sum of A through D 2 11395 3. ADDITIONS: A. Taxes Imposed on or measured by net Income (attach schedule) STATEMENT 1 3A 236533 B. Tax preference items (attach copy of federal form 4626) 3B 0 C. Employment incentive payment credit adjustment (attach Schedule W) 3C 0 D. Current year bonus depreciation (attach Schedule C-$) 3D 0 E. Other (attach schedule) See instructions. 3E 0 TOTAL ADDITIONS - Sum of A through E 3 236533 4. Income or loss with Pennsylvania adjustments (Line 1 minus Line 2 plus Line 3) 4 2645982 5. Total nonbusiness income or loss S 0 6. Income or loss to be apportioned (Line 4 minus Line 5) 6 2645982 7. Apportionment proportion (from Schedule 0-1, Line 5) 7 1 • 000000 8. Income or loss apportioned to PA (Line 6 times Line 7) 8 2 6 4 5 9 8 2 9. Nonbusiness income or loss allocated to PA 9 0 10. Taxable income or loss after apportionment (Line 8 plus One 9) 10 2645982 11. Total net operating loss deduction (from RCT-103) 11 27828L 12. PA taxable income or loss (Line 10 minus Line 11) 12 2367696 13. Corporate net income tax (Line 12 times • 0 9 9 9 ; if Line 12 is less than zero, enter "0") 13 2 3 6 5 3 3 174311 11-01-11 CCH 1010011341 1010011441 TAX ACCOUNT ID 12S3256 TAXYEAREND 12312011 NAME PENN PRODUCTS CORPORATION RCT-101 PAGE 4 OF 6 PACORPORATE TAX REPORT 20 1 1 SECTION D: LOANS TAX 1. Foreign Corporations Only. Did this corporation have a scat officer resident in Pennsylvania? X X N 2. Did this corporation have Indebtedness outstanding to I dlvidual residents and/or partnerships resident in Pennsylvania? X X N 3. Did this corporation have Indebtedness outstanding hel by a trustee, agent or guardian for a resident individual taxable in its own right or by an exec for or administrator of an estate wherein the decedent was a resident of Pennsylvania? X X N List outstanding indebtedness. Attach a separate schedul? if additional space Is needed. Interest Amount Interest Rate Taxable Value Taxable 0 .000 0 Indebtedness XX 0 .000 0 0 .000 0 Loans Tax X X Schedule A-1: Apportionment Schedule For Capital StocldI'oreign Franchise Tax (Include Form RCT-1102, RCT-105 or RCT-106.) Three Factor Single Factor Property - PA 1A 0 1C 0-000000 Numerator 4A Property - Total 1B 0 Denominator 4B Payroll - PA 2A 0 2C 0.000000 Payroll - Total 2B 0 Sales - PA 3A 0 3C 0-000000 Apportionment 5 Sales - Total 3B 0 Proportion Schedule C-1: Apportionment Schedule For Corporate Net Mncome Tax (include Form RCT-106.) Three Factor Property - PA 1 A 0 11C 00.000000 Property Total 1113 0 Payroll - PA 2A 0 2C 00.000000 Payroll - Total 2B 0 Sales - PA 3A 0 3C 00.000000 Sales - Total 3B 0 174312 11-et-11 CCH Single Factor Numerator 4A Denominator 4B Apportionment 5 Proportion 1010011441 t- 0 0 0 0 0 1.000000 0 0 1.000000 J J 1010011541 L. TAX ACCOUNT ID 1253 56 TAX YEAR END 1231 011 NAME PENN PRODUCTS CORPORATION RCT-101 PAGE 5 OF 6 PA C RPORATE TAX REPORT 201 1 SECTION E: CORPORATE STATUS CHANGES Final Report X X N PA Corporations: Did you ever transact business anywhere? X X N if yes, enter date all business activity ceased Did you hold assets anywhere? X X N If yes, enter date of final disposition of assets* Foreign Corporations: Did you ever transact business In PA? X X N It yes, enter date PA business activity ceased Did you hold assets in PA? X X N If yes, enter date of final disposition of PA assets* *Schedule of Disposition of Assets MUST be completed and filed with the PA Corporate Tax Report. Has the corporation sold or transferred In bulk 51 percent o? more of any class of assets? (See Instructions) If yes, enter the following information. (Attach a separate sclpedule if additional space is needed.) Purchaser Name X X Address Line 1 X X Address Line 2 X X city X X State X X ZIP X X SECTION F: GENERAL INFORMATION gUESTIONNAIRE Describe corporate activity in PA REAL ESTATE DEVELOPMENT Describe corporate activity outside PA NONE Other states in which taxpayer has activity N/A State of Incorporation X X PA incorporation Date X X 12 2? 192? XX XX XX XX XX N 1. Does any corporation, individual or other business entitfgInally ofd all or a majority of the stock of this corporation? 2. Does this corporation own all or a majority of stock in of r corporations? If yes, complete Schedule X. 3. Is this taxpayer a partnership that elects to file federal tas as a corporation? 4. Has the federal government changed taxable income as reported for any prior period for which reports of change have not been filed in PA? If yes: First Period End Date: X X Last Period End Date: X X Accounting Method - Federal Tax Return A A = Accrual C = Cash 0 = Other Other Accounting Method - Financial Statements A A = Accrual C = Cash 0 = Other Other 174313 1h-01-11 CCH i !._ 1111111 IIIII IIIII IIIII IIIII IIIII (1111 IIIII IINII IIIII IIII IIII 1010011541 XX N XX N XX N XX N J 1 1010011641 L. TAX ACCOUNTID 1253256 TAX YEAR END -12312011 NAME PENN PRODUCTS CORPORATION RCT-101 PAGE 6 OF 6 PACORPORATE TAX REPORT 201 1 SCHEDULE OF REAL PROPERTY IN PA (Attach a separate schedule if additional space is needed.) 0 = Own R = Rent Street Address city County KOZ/KOEZ XX 0 1369 SWOPE DRIVE BOILING SPRINGS CUMBERLAND N XX XX XX CORPORATE OFFICERS (See Instructions.) President/Managing Partner X X Vice President X X Secretary X X Treasurer[Fax Manager X X PREPARER'S INFORMATION Mail to Preparer X X Firm Federal EIN X X Firm Name X X Address Line 1 X X Address Line 2 X X city X X State X X ZIP X X SON 2002+2200 175466956 SWOPE MCCORKEL Last Name Y 2313t5156 KOCH NOUR EARNEST SMYSER BURG 710 SOUTH GEORGE STREET YORK PA 1740,3133 k• Q First Name MI JOYCE L SANDRA L I affirm under penalties prescribed by law this report, Inca ding any accompanying schedules and statements, has been prepared by me and to the best of my knowledge and belief is a true, correct a d complete report. Tax Preparer's Signature Date 03/11/12 INDIVIDUAL PREPARER PHILIP G' LAVER PHONE 71784388$5 EMAIL PTIN/SSN P O 010 9 0 0 174314 11-01.11 CCH 1010011641 PENN PRODUCTS CORPORATION 23-0952620 PA RCT-101 Taxes Imposed On or Measured by Net Income Statement 1 Description Amount Form 1120, Pg 1, Line 17, PA,Corporate Net Income Tax 236,533. Total to Form RCT-101 Section C, Line 3A 236,533. Statement(s) 1 RCT-103 (07-11) NET OPE ATING LOSS SCHEDULE (File with Form RCT-101.) Tax Year Beginning 01 12011 Tax Account ID 1,253256 Tax Year Ending 12 12011 Corporation Name PE N PRODUCTS CORPORATION Part A Tax Periods Beginning on or after Jan. 1, 2010. 1. Taxable income from RCT-101, Section C, Line 10 2645982 ? 2. Total net operating loss carry' forward to current period (total, Column C below) 278286 3. Line 1 multiplied by 20 percent (0.20) 529196 If Line 3 Is 3,000,000 or less, enter the lesser of Line 1 oojLlne 2 on Line 4, not to exceed 3,000,000. If Line 3 exceeds O 3,000,000, enterthe lesser of Line 2 or Line 3 on Line 4. 4. Net operating loss deduction allowed for current tax period 2 7 8 2 8 6 P t B ar (A) Tax Period (B) Tax Period (C) Net Loss (D) Amount Deducted (E) Net Loss Beginning Ending Carryforward to Current (Current Period) Carryforward to Period Next Period 1 01012007 12312007 95552 95552 0 2 01012008 12312008 80902 80902 0 3 01012009 12312009 101832 101832 0 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 TOTAL 278286 278286 175401 10-27.11 CCH L?. I IIIIII IIIII IIIiI IIIII IIIII IIIII VIII IIIiI IIII? IIUI 1111 1111 1030011141 REV-798 CT (04-11) pennsylvania DEPARTMENT OF REVENUE TAG YEAR 01012 011 BEGINNING CORPORATION NAME PENN PRODUCTS CORPORATION ACCOUNT ID 1253-256 END Nd _ _ 12 312 011 1 Federal Schedule C, Line (20), Total Deductions ................• .......„•,,, 2 Federal Schedule C, Line (15), Foreign Dividend Gros,,-Up (Section 78) ......•,•„•„•,•„•,,.......„ ..................................„......•.... 3 Dividends from less-than-20%-owned foreign corpor tions listed on Lines (13) and (14) of federal Schedule C x 70% - 0.70 .. •••„• 4 Dividends from 20%-or-more-owned foreign corporations listed on Lines (13) and (14) of federal Schedule C x 80% - 0.80 •.• ••... 5 Dividends listed on Lines (13) and (14) of federal Sc edule C from foreign corporations that meet the "80% voting and value test' of IRC §1504 (a) (2) and otherwise would qualify for 100% deduction under IRC §243 (a) (3) if they were a domestic corporation. Do not list any amounts Included In Item 4 ...........••• .........................„..........•...•••„••,..• 6 Total PA Dividend Deduction - Add Lines 1, 2, 3, 4 and 5 Enter this amountat Section C, Line (2A) on RCT-101 ......••„•,••.•...•„•• 1 11395 2 0 3 0 4 0 5 0 5 11395 SCHEDULE X Taxpayers completing this schedule must provide beginning and ending balance sheets, reflec ing the consolidated net worth of the taxpayer and all subsidiaries. TAG YEAR 01012 011 BEGINNING I I Name, SSN, EIN and/or Tax Account ID Number of any In?lviduai or business entity owning all or a majority of the stock of the taxpayer. Name SSN or EIN Tax Account ID SCHEDULE C-2 PA DIVIDEND DEDUCTION SCHEDULE 174711 10-08-11 CCH REV-860 CT (05-11) pennsylvanla OEPARTMENi0FREVENUE TAX YEAR BEG NN NG 01012011 CORPORATION TAX YEAR NAME PENN PRODUCTS CORPOMTTON ACCOUNTID 1253-256 FNnINr 12312011 C-5 Schedule of Taxes 1. PA Corporate Net Income Tax ........................................................................... 2. Philadelphia Business Privilege Tax • Net Incor`ne Portion 3. Income Taxes . Other States 4. Local Income Taxes 5. Other Income Taxes ......................................................................................... 6. Total Income Taxes (Total of Lines 1 to 5) ............................................................. 7. PA Capital Stock/Foreign Franchise Tax 8. Philadelphia Business Privilege Tax • Gross Re! 6 Portion ....................................... 9. Payroll Taxes 10. Real Estate Taxes ................................................................................................ 11. Sales and Use Tax 12, Business Privilege Tax • Other than Income 13. Occupancy Tax ,,.,,., 14. Local Taxes • Not Based on Income ............................................................ ......... 15, Other Taxes • Not Based on Income 16. Total Taxes Not Imposed on or Measured by In?ome (Total Lines 7 to 15) ................... 17. Total Tax Expense Reported on Federal Incorn Tax Return (Total Lines 6 and 16) Schedule OA - Other Additions Schedule OD - Other Deductions Federal Wages Disallowed as a Result of ax Credits Under IRC Sec 46B or IRC Sec 511 CCH 174491 10-18-11 Total EXHIBIT 6 JOYCE L. SWOPE, PRESIDENT RICHARD L SWOPE, VICE PRESIDENT N211 AMZ? Pot^ -DUCTS CORP01"ATI®N DEVELOPERS OF WHITE ROCK ACRES 1369 SWOPE DRIVE, BOILING SPRINGS, PA 17007 PHONE: (O) 717.258-6481 PHONE. (R) 717-258.6959 Mrs. Sandy Kreider 17 Clover Court Litiz, PA 17543 September 29, 2011 Dear Sandy: SANDRA L. McCORKEL, SECRETARY-TREASURER It has been nice getting to ow you through our telephone conversations. As we discussed, our annual stockholder's meetings are sometime during the first/second week of April every year. Notification letters go out near the end of March indicating exactly when the meeting is going o be held. The other matter we discussed was the offer that my brothers and I had offered to your Mom, which I believe was actually discussed with your sister back approximately two or three months ago. Your Mom has 922 shares of stock and collectively, my brothers and 1, had offered $10,000.00. Si ice the offer was made a few months ago, I will need to contact my brothers and se if they are still interested in buying. My one brother just recently was married, and I am not sure of his situation at this time. Again, it has been nice gett?ng to know you. Take care, and take good care of your Mom, Best Wishes, Sandy 11:cCo el -?-" President EXHIBIT 7 [*] 1369 SWOK WOVE, SOILING SPRINGS, P4 17007 P)4OMS: (o) Y1 r-259 81 P)IONE: (h) 717-25a,6950 PENN PRODUCTS CORPORATION NOTICE OF ANNUAL MEETING OF STOCKHOLDERS The annual weetun 4 of the Stockholders of Penn Products Corporation will be held at the corporation' office at 1369 Swope Drive; Boiling Springs, Pennsylvania on April 25"2012 at the hour of 7:00 P.M: for the following purposes: 1) To elect direeto s for the ensuing year; 2) To elcil offfcers1for the ens!ulag year; 3) To transact any Ond all other business as may he brought before the meeting or auy djournment or adjournments thereof. At this annual t'0" ng, each holder of common'stock•is entitled to v6te for each share of stock tanding.i>n the name of such holders on the records of the corporation at the c ose of business on March 19`h, 2012. 'ALL STOCKHOLDERS ARE URGED TO SIGN AND RETURN THE ENCLOSED PROXY IN E. ACCOMPANYING ENVELOPE. ;Ry-Order of the Board ot'Dites±o. as,,,,.... Saner . McCorke Secretary-Treasurer Td WdLZ:ZT ME ZZ 'apW 98Z82-29LtiL: 'ON XUJ ONH: W08J JOYCE L SWOPE, PRESIDENT RICHARD L SWOPE, VICE PRESIDENT P°Eoft'41 I Iz3 OEVELa PER3 oP .. WHITE ROCK ACRES 1369 SWOPE DINS, DOILINd 8PRIN133, PA 17007 PHONS; (0) 717-M-6481 PHONPI (FU 717.298.8659 SANDRA f- MCOOAKV- SECREtART-TREASUf4ER EXHIBIT 8 REP RT OF THE JUDGE OF ELECTION P NN PRODUCTS CORPORATION A UAL SHAREHOLDERS' MEETING APRIL 25,2012,7:00 P.M. On timely basis, Sandra L. McCorkel, the president, secretary, and treasurer of Penn Products Annual Meeting of Shareholders to be held at 7:00 p.m. on April Corporation, sent notice of thei 25, 2012 at the White Rock Aare Offices. The records of the Corporation reveal that there are 25,000 shares issued and outstanding. Ms. McCorkel Chaired the meting and called it to order at 6:57 p.m. Following is a list of shareholders, and personal representatives (with number of shares held) attending the meeting in perso : Donna Lee Goff (903 shares) David J. Horick (898 shares) Douglas C. Horick (897 shares) Daniel A. Kuhn (1,249 shares)! Sandra L. McCorkel (2,849 sh res) Gregory R. Swope (2,848 shay s) John D. Swope (2,848 shares) Marilyn Snyder Budzynski, Ex?cutrix of the Estate of Maybelle Asper (5,195 shares) Ms. McCorkel directed that th minutes should reflect that "properly executed proxies" on behalf of Carolyn Wagner, Lewis Kulbin, Jean Horick, and Doris Ernst, had been received. Lewis G. Kuhn (1,148 shares), Carolyn L. Wagner (1,148 shares), and Jean M. Horick (2,270 shares) had given their proxies to David J. Horick, which proxies were duly delivered to the Secretary of the Corporation before the annual shareholders' meeting in accordance with the Corporation's By-Laws. Doris I. Ernst (922 shares) had iven her proxy to her daughter, Sandra K. Kreider, who attended the meeting in person. Ms. Er st's proxy was duly delivered to the Secretary of the Corporation before the annual shareholders' meeting in accordance with the Corporation's By-Laws. Accordingly, persons holding 2 ,175 of the 25,000 outstanding shares were present, either in person, or by proxy, which constituted a quorum for conducting business as defined in the Corporation's By-Laws (Article III, § 3). Non-shareholders in attendance were Richard Magee, counsel for the Estate of Maybelle Asper; Marvin Beshore, counsel for David J. Horick, Douglas C. Horick, and Jean M. Horick; Crady Swisher, an employee of Mr. B shore; Ms. Goff's husband; and Ms. Kreider's husband. The Corporation's By-Laws provide for up to seven directors (Article 1V, § 4). Nominations of the following persons as candidates for the office of Director of the Corporation were duly made and seconded: Megan Swope, ohn D. Swope, Gregory R. Swope, Sandra L. McCorkel, Donna Lee Goff, David J. Horick, Dofiglas C. Horick, Daniel A. Kuhn, Marilyn S. Budzynski, Sandra K. Kreider, and Richard Mage?.' Ms. McCorkel moved John D. Swope and Megan Swope for the office of Judge of Election, whereupon Mr. Beshore pointed out that both Pennsylvania's Business Corporation Law, 15 Pa.C.S. § 1765, and the Corporation's By-Laws, Article III, § 6, prohibit candidates for office from serving as Judge of Election. Pursuant to motion by Ms. Budzynski, which was seconded and to which there was no obj ction, Crady Swisher was designated by the Chair to be Judge of Election. Thereupon, at the direction of Ms. McCorkel, Ms. Swope issued ballots to the shareholders to vote for Directors of the Corpo ration. The names of all nominees were listed on the ballots. Shareholders were directed to Corporation. the names of up to 7.candidates for which they were voting. Mr. Magee provided to the Jud e of Election a duly certified "short certificate," bearing the signature of the Deputy Register of Wills of Philadelphia County and the raised Seal of the Register of Wills, dated April 5, 2012, which stated that "Letters Testamentary - DBN" for the Estate of Maybelle Asper had been issued to Marilyn Snyder Budzynski. In light of the certified short certificate, the Judge of E?lection concluded that Ms. Budzynski was authorized to vote the 5,195 shares of Maybelle Aspe •, as provided in 20 Pa.C.S. § 3320. The Judge of Election reviewed the proxies and found them to be in order. The By-Laws do not provide fdr cumulative voting and there is only one class of shares (Article III, §4). Each voter personally hand-del vered his, or her, completed ballot to the Judge of Elections. Upon delivery of his ballot, Do glas C. Horick advised that he had not circled the names of persons for whom he had voted, but had stricken-out the names of those for whom he was not voting. Accordingly, the Judge of Elections has counted votes cast by Douglas C. Horick according to his stated intentio .2 'The By-Laws specifically provide that one need not be a shareholder to be a Director. (Article IV, § 1). 2Because only a simple ajority of share-votes present and voting is necessary for election, the inclusion of Dougl s C. Horick's votes does not affect the outcome of the election. 2 Results of the voting follow: David J. Horick, 14,630 votes; Douglas C. Horick, 14,630 votes; Marilyn Snyder Budzynski, 14630 votes; Donna Lee Goff, 14,360 votes; Sandra K. Kreider, 14,630 votes; Richard Magee, 14,630 votes; and Daniel A. Kuhn, 14,630 votes. No other candidates for the office of Director received votes. Each of the seven candidates receiving votes received more than 50% of the share-votes present and voting. Accordingly, the Judge of Elec ions hereby finds and concludes that the following are the duly elected Directors of Penn Products Corporation, pursuant to the Corporation's By-Laws, for the next year and until their successors are elected: David J. Horick Douglas C. Horick Marilyn Snyder Budzynski Donna Lee Goff Sandra K. Kreider Richard Magee Daniel A. Kuhn. April 26, 2012 Attachments: Short Certificate Ballot of David 4 Horick Ballot of Dougla? C. Horick Ballot of Marilyn Snyder Budzynski Ballot of Donna Lee Goff Ballot of Sandra K Kreider Ballot of Daniel A. Kuhn Crady Syv? er, Judge of Election PENN PRODUCTS CORPORATION Ballot for the Election of Directors of Penn Products Corporation at a meeting of its Stockholders held at the White Rock Acres Office on April 25, 2012 at 7:00 P.M. I hereby vote the numbe of shares of capital stock of Penn Products Corporation standing in my name on a books of said corporation in favor of the election of director of all nominees 1 sted below as follows: na e Sa Total No. of Shares J-n /, 14V F 'I?,?e? Fb rn caL ?ouqlas ?b ?nGC. . f r?O.x?r' I ? r? Bud2yn?? Rac,?aa`d fY?a?e? PENN PRODUCTS CORPORATION Ballot for the Election of Directors of Penn Products Corporation at a meeting of its Stockholders held at the White Rock Acres Office on April 25, 2012 at 7:00 P.M. I hereby vote the numbe of shares of capital stock of Penn Products Corporation standing in my name on t e books of said corporation in favor of the election of director of all nominees ted below as follows: y? - i It1.j 6 r) Megan-l7?` =1e.. Sanj V0,-- ?g9r? vvo'pe 6? lonno?- G Sandra I„ i.Me brke1 Total No. of Shares PENN PRODUCTS CORPORATION Ballot for the Election of Directors j? of Penn Products Corporation at a as Ld yy _ ?7 meeting of its Stockholders held at the White Rock Acres Office on April 25, 2012 at 7:00 P.M. -f-her-eot "u "' mbe of shares of capital stock of Penn Products Corporation standing in my name on he books of said corporation in favor of the election of director of all nominees 1 sted below as follows: John D. Swope -' Megan D. wope V ` r? i Gregory R. Swope Sandra L. McCorkel Tntal Nn of Ctiarne PENN PRODUCTS CORPORATION Ballot for the Election of Directors of Penn Products Corporation at a meeting of its Stockholders held at the White Rock Acres Office on April 25, 2012 at 7:00 P.M. I hereby vote the numb( standing in my name on director of all nominees of shares of capital stock of Penn Products Corporation he books of said corporation in favor of the election of sted below as follows: - Total No. of Shares 1-A- ey,,,,U,L .4 ? ' ®- PENN PRODUCTS CORPORATION Ballot for the Election of Directors of Penn Products Corporation at a meeting of its Stockholders held at the White Rock Acres Office on April 25, 2012 at 7:00 P.M. I hereby vote the numbf standing in my name on director of all nominees of shares of capital stock of Penn Products Corporation ie books of said corporation in favor of the election of ited below as follows: Gregory R. Swope Sandra L. McCorkel Total No. of Shares' "ZZ 3 r PENN PRODUCTS CORPORATION Ballot for the Election of Directors of Penn Products Corporation at a meeting of its Stockholders held at the White Rock Acres Office on April 25, 2012 at 7:00 P.M. I hereby vote the numbe of shares of capital stock of Penn Products Corporation standing in my name on t e books of said corporation in favor of the election of director of all nominees I' ted below as follows: `-,John D. Sw pe Y19 f` ?n =-,M: gan D. Swope Gregory R. Swope Sandra L. McCorkel Total No. of Shares 4/ j Office of the Register Of Wills of Philadelphia County, Pennsylvania File #: W1055-1993 Commonwealth of Pennsylvania ss. County of Philadelphia I, RONALD R. DONATUCCI, > SQUIRE, Register for the Probate of Wills and Granting Letters of Administration in and for the Coun of Philadelphia, in the Commonwealth of Pennsylvania DO HEREBY CERTIFY AND MAKE KNOWN That on the 25th day of April in the year of our Lord 2012 LETTERS TESTAMENTARY - DBN on the Estate of MAYBELLE AStER Deceased, were granted unto MA?2ILYN SNYDER BUDZYNSKI having first been qualified well and itruly to administer the same. And I further certify that no revocation of said Letters appears of record. Date of death 1/24/1993 Given under my hand and seal of office, this 25th day of April , 20 12 A" Deputy Register NOT VALID WITHOUT ORIGINAL SIGNATURE AND IMPRESSED SEAL 10-14 (Rev. 3/08) EXHIBIT 9 LAW OFFICES OF MARVIN BESHORE 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 Telephone: (717) 236-0781 Marvin Beshore Facsimile: (717) 236-0791 mbeshore@beshorelaw.com April 26, 2012 VIA FAX TO: 717-258-9384 Penn Products Corporation 1369 Swope Drive Boiling Springs, PA 17007-9611 Attention: Sandra L McCorkel Re: Annual Meeting - Election of Directors Dear Ms. McCorkel: The Pennsylvania Business Corporation Law, 15 Pa. C.S.A. § 1765(a)(3), provides that the Judge of Elections, who wai Crady Swisher, duly appointed at the shareholders' meeting prior to the purported adjournment "shall hear and determine all challenges and questions in any way arising in connection with he right [of shareholders' or their representatives] to vote." Therefore, there was no valid b sis to adjourn the meeting in order for corporate counsel to pass judgment upon the valid author ty of Marilyn Snyder Budzynski, as Executrix of the Estate of Maybelle Asper, to vote those s ayes. Consequently, the purported adjournment of the meeting prior to casting, counting and reporting of the count of votes is null and void. The Business Corporation Law, as well as the Corporation's by-laws, also provides for the Judge of Elections to make written report concerning any dispute. See 15 Pa. C.S.A. § 1765(a)(4) and Penn Products Corporation By-laws, Article III, § 6. Attached is Mr. Swisher's report from last night's duly-cal ed annual meeting and duly-held election of directors for Penn Products Corporation. There is now a full new Board of Directors and new Officers of the Corporation, properly elected by the new Board. The 4ew officers of the Corporation are: President, David J. Horick; Vice-President, Marilyn Budzyr?ski; Secretary, Donna Lee Goff; Treasurer, Sandra K. Kreider. 00050800.WPD: vl Penn Products Corporation April 26, 2012 Page two You are now operating finder the control and direction of the new directors and officers of the Corporation. Neither you, or any other former officers or directors, have any authority any longer to draw upon any funds Of the Corporation or to encumber the Corporation's funds and accounts in any manner withouf prior approval of the newly-elected officers and board. Please conduct yourself accordingly. Very truly yours, /s/ Marvin Beshore MB: amb Enclosure cc: Douglas Miller, Esquire] (via fax) Board of Directors, Perm Products Corporation ooososoo.wPD; vl EXHIBIT 10 ftNN PRODUCTS CORPORATION NOTICE OF RESUMPTION OF ANNUAL MEETING OF STOCKHOLDERS Pursuant to Article 1, Paragraph 3 of the By Laws of the Corporation, the resumption of the annual meeting of the Stockholders of Penn Products Corporation will be held at the offices of I in & McKnight, P.C., 60 West Pomfret Street, Carlisle, Pennsylvania on May 10th, 2012 at the hour of 10:00 A.M. for the following purposes: 1) To elect direct rs for the ensuing year; 2) To elect officer for the ensuing year; 3) To transact an and all other business as may be brought before the meeting or any adjournment or adjournments thereof. At this continuation the annual meeting, and as set forth in the original Notice, each holder of common stock is entitled to vote for each share of stock standing in the name of such holders on the records of the corporation at the close of business on March 19th, 2012. By Order of the Board of Directors, D . ouglas Miller, Esquire Attorney for the Corporation 1 41 a C:7` O O CA r. 6R m? obd o z?? ?+F 8 zql 5: 4 J A p N N 9ON FQ? ' N Ne?o u 4j1 Cc" N2 W N ? ?J 3 ? N >ON n i n> ® L?Sy O p pR?q ? 4ly777?111?lVVVV???I, m N V <Elln i Mp WN O- N a 0 V a? ?yy y?? n g S M ° N U Z ?n > p N ?y.))??.? om9 e?r 'fin O A ?? 6 0 Mti55 o e p?p?? ??aqq 1 W N O tl dtI HIM Y h °ma N N ? ^ a o,pv UNIT O ?p ? A O O p?ppp ? {j??? m NOd <?'`f? W N o ? ??G r'- }O? n T 1F??C?y? Qa n N ?i? N Z V m Y 0 let O? twit pl W II I l W-Ml? N N? S ?'49 W N O V 0 S ? N x ? 90N V T WV N ff?? n>®2 ?8 o<? a 66aa''?? ?:? wN oa ,? SO J0r b ? w W N Y M ?Q'! U N {a V O O1 soo ?? aoN 0 pmv r? v? n? ? Q ou ?`rt? e {g a ,? a Eoo?f WN ON M?a N ¢. o ? p o ro UN7? ovv i7s,-- % 3 N m `? oo?F? wN oi+ il L? V A rN " N N R# I O Wo ?yy O?~pp ?y W C\ N 7? 1 O N O O'O q ?q, J `'1 r?taP N OOS9Yg0001:1,.1 wN Op ? o 0 w?p y N ? ` J .Te >ON V .R Of ro 3N?? (??ND c?i>®1 q'FIII RI nOi ®6> ID I!j G N C3. ro w0 `1 009 JAIE V is O ? Oo td QN Q H gygVp? ro?n w N A aN ?N O N ?-w O ? wR`? 9 OJT `'°'i 3 N ?' N ® K A[5p O O b'o m ?? W N p N C N ? V N ? o o UN1TFp N ? srv amV No a Tm \`, 3. N O??S?yy?11?? Nl mN?7? WN Cw mTn p N N ? rodO"O ? O O?y ? N 1'1 14 OG N A Q O N amv a i Nro?il? ?Y mN6?7? 8 a ? 'n N ?? -6 ooa? Y ?W V W 'HAp y I S bOw u' r ? , G ?3a w 1P k 41' N UUyy n>f?pa °m r. OO?v,%1 8 w N O ? ?d IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs V. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. S WOPE, Defendants Civil Action - Equity No. 2012 - 08 3Y civo ORDER OF COURT AND NOW, this day of May, 2012, upon request of Plaintiffs and finding that a Preliminary or Special injunction ecial in unction is necessary and appropriate, the Court hereby ORDERS as follows: 1. Defendants are prohibited from holding the purported "Resumption of Annual Meeting of Stockholders," which has been noticed for May 10, 2012, at 10:00 a.m., until further Order of this Court; 2. Immediately upon entry of this Order and until further Order of this Court, Defendants are prohibited from acting on behalf of Penn Products Corporation in any way; 3. Immediately upon entry of this Order and until further Order of this Court, Defendants are prohibited from accessing any and all financial accounts of Penn Products Corporation, including, but not limited to checking accounts at M&T Bank, checking accounts at Adams County National Bank, and investment accounts at Charles Schwab & Co., Inc.; 4. Immediately upon entry of this Order and until further Order of this Court, the Directors and Officers elected on April 25, 2012, (i.e., David J. Horick, Marilyn Snyder Budzynski, Donna Lee Goff, Sandra K. Kreider, Douglas C. Horick, Daniel S. Kuhn, and Richard Magee, Esquire) are authorized and directed to undertake management of Penn Products Corporation pending further Order of this Court; 5. Defendants are directed immediately upon entry of this Order to deliver to the Directors and Officers of Penn Products Corporation identified in paragraph Al, above, all keys to Corporate property, all Corporate checkbooks and other financial accounts, all corporate records, and the Corporate Seal; and 6. A hearing on this matter is set for Ft'?da, May 1 g , 2012, at : m., in Courtroom 1 _ of the Cumberland County Courthouse, Carlisle, Penia, before the Honorable A l be r-f P ?'na S !Qx By the Court l40 tgZe-e-5 o-f Alaro;h 4Se,54or-e 6) 1 v, pir is L-. Pi teoe-ke) 5?c'ple ? WleYa'] < .yp'r v' 1?6/t la s (' f?9 : I (Pr y ?&o : e 4'kit tL f r=n 111 k 1' 1211,t- ,Judge cn c?'? 2: C:1 ;5 2 PENN PRODUCTS CORPORATION, IN THE COURT OF COMMON PLEAS DAVID J. HORICK, DOUGLAS C. CUMBERLAND COUNTY HORICK, MARILYN SNYDER PENNSYLVANIA BUDZYNSKI, Executrix DBN of the Estate of Maybelle Asper, Deceased, CIVIL ACTION, EQUITY DANIEL A. KUHN, DONNA LEE GOFF LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs G : .n= V. eZ' -? -CJ r-? SANDRA L. McCORKEL, GREGORY t° --+ - MEGAN SWOPE, and SWOPE R No. 2838 CIVIL 2012 Tj , . SWOPE JOHN D ZG r} . Defendants ENTRY OF APPEARANCE To the Prothonotary: Please enter my appearance in the above-captioned matter on behalf of Defendants Sandra McCorkel, Gregory R. Swope, Megan Swope, and John D. Swope. William H. Andring, Esq. Atty. ID#26609 248 Creek Road Camp Hill, PA 17011 (717) 975-8796 PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs V. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY PENNSYLVANIA : CIVIL ACTION, EQUITY SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and No. 2838 CIVIL 2012 JOHN D. SWOPE Defendants CERTIFICATE OF SERVICE I, William H. Andring, Esq., hereby certify that on this, the 9th day of May, 2012, I served a copy of the attached document by causing it to be deposited in the United States Mail, first class postage prepaid, addressed as follows: Marvin Beshore, Esq. 130 State St., P.O. Box 946 Harrisburg, PA 17108-0946 6 William H. Andring, Esq. PENN PRODUCTS CORPORATION DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER,: DORIS I. ERNST, AND JEAN M. HORICK, PLAINTIFFS V. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, AND JOHN D. SWOPE, DEFENDANTS 12-2838 CIVIL TERM r- 7o - C3 f D c.n ORDER OF COURT AND NOW, this /f7- day of May, 2012, upon request of Plaintiffs and finding that a Preliminary or Special injunction is necessary and appropriate, the Court hereby ORDERS as follows: 1. The court order of May 8, 2012 is VACATED and the injunction established thereby is DISSOLVED. 2. Defendants are prohibited from holding the purported "Resumption of Annual Meeting of Stockholders," which has been noticed for May 10, 2012, at 10:00 a.m., until further Order of this Court; 3. Immediately upon entry of this Order and until further Order of this Court, Defendants are prohibited from acting on behalf of Penn Products Corporation in any way; 4. Immediately upon entry of this Order and until further Order of this Court, Defendants are prohibited from accessing any and all financial accounts of Penn Products Corporation, including, but not limited to checking accounts at M&T Bank, checking accounts at Adams County National Bank, and investment accounts at Charles Schwab & Co., Inc.; 5. Immediately upon entry of this Order and until further Order of this Court, the Directors and Officers elected on April 25, 2012, (i.e., David J. Horick, Marilyn Snyder Budzynski, Donna Lee Goff, Sandra K. Kreider, Douglas C. Horick, Daniel S. Kuhn, and Richard Magee, Esquire) are authorized and directed to undertake management of Penn Products Corporation pending further Order of this Court; 6. Pending the hearing on this matter, Defendants shall maintain all keys to Corporate property, all Corporate checkbooks and other financial accounts, all corporate records, and the Corporate Seal; in the ordinary course of business, and 7. Pending the hearing on this matter and pursuant to Pa.R.C.P. 1531(b), bond is set at $1.00. 8. A hearing on this matter is set for Monday, May 14, 2012, at 9:00 a.m., in Courtroom 1 of the Cumberland County Courthouse, Carlisle, Pennsylvania, before the Honorable Albert H. Masland. By the Court, Albert H. Masland, J. VINVAIASNN3d - Nnoo ONW-183swn3 CO :9 WV 01 AN 1101 ` ?c1s ON1G Hi 1 V Marvin Beshore, Esquire 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 For Plaintiffs William Andring, Esquire 248 Creek Road Camp Hill, PA 17011 For Defendants Douglas G. Miller, Esquire 60 W. Pomfret Street Carlisle, PA 17013 Sandra L. McCorkel 675 Valleyview Dr. Boiling Springs, PA 17007 ? Gregory R. Swope 1469 Kuhn Rd. Boiling Springs, PA 17007 V John D. Swope 28 Summer Drive Dillsburg, PA 17019 J Megan Swope 28 Summer Drive Dillsburg, PA 17019 :saa PENN PRODUCTS CORPORATION DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER,: DORIS I. ERNST, AND JEAN M. HORICK, PLAINTIFFS V. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, AND JOHN D. SWOPE, DEFENDANTS IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : 12-2838 CIVIL TERM M ED -,,M - xW cnt _cn off, ? w - ORDER OF COURT AND NOW, this _/-? day of May, 2012, following a hearing on May 14, 2012, regarding Plaintiffs' complaint for preliminary or special injunction and a permanent injunction, the court finds that the Annual Shareholders Meeting on April 25, 2012, was properly noticed and convened and that the ensuing election of Directors and Officers comported with both the bylaws of the corporation and the laws of this Commonwealth. Therefore, IT IS ORDERED AND DIRECTED that a permanent injunction be issued as follows: 1. The Directors and Officers elected on April 25, 2012, (David J. Horick, Marilyn Snyder Budzynski, Donna Lee Goff, Sandra K. Kreider, Douglas C. Horick, Daniel S. Kuhn, and Richard Magee, Esquire), are authorized and directed to undertake the management of Penn Products Corporation; 2. Defendants are prohibited from acting on behalf of Penn Products Corporation; a ` 3. All actions of the Defendants subsequent to the April 25, 2012 Annual Meeting of the Shareholders which purported to be on behalf of Penn Products Corporation are declared null and void unless ratified by the newly constituted Board of Directors; 4. Defendants shall deliver forthwith to the Directors and Officers of Penn Products Corporation all keys to corporate property, all corporate checkbooks and other financial accounts, all corporate records and the corporate seal; 5. Bond is continued at $1.00. By the Court, lbert H. Ma and, J. ,Aarvin Beshore, Esquire Luther E. Milspaw, Jr., Esquire 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 For Plaintiffs J William Andring, Esquire 248 Creek Road Camp Hill, PA 17011 For Defendants :saa BUDZYN§KI, Executrix DBN of the Estate of Maybelle Asper, Deceased, CIVIL ACTION, EQUITY DANIEL A. KUHN, DONNA LEE GOFF LEWIS G.IKUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, : Plaintiffs PENN PRODUCTS CORPORATION, IN THE COURT OF COMMON PLEAS DAVID J. HORICK, DOUGLAS C. CUMBERLAND COUNTY 14 RICK MARILYN SNYDER PENNSYLVANIA c V. -L w :z m SANDRA L. McCORKEL, GREGORY'-' R. SWOPE, MEGAN SWOPE, and No. 2838 CIVIL 2012 JOHN D. SWOPE Defendants DEFENDANTS' PRELIMINARY OBJECTIONS TO PLAINTIFFS' COMPLAINT r ,--, N x? -ac 1V cn AND NOW come Defendants, Sandra L. McCorkel, Gregory R. Swope, Megan Swope, and John D. Swope, by and through their attorney, William H. Andring, Esq., and file the within Preliminary Objections to Plaintiffs' Complaint. 1. The Complaint fails to conform to law or rule of court in that the Complaint is not verified. 2. The Complaint contains false and scandalous accusations in Paragraphs 19, 21, 22, 23, 45, 48, 50, 52, and 53. 3. The Complaint fails to conform to law or rule of court in that the Complaint contains a request for a special or preliminary injunction, but no petition for such an injunction has ever been filed with the Court. WHEREFORE, Defendants request this Honorable Court to dismiss the Complaint of Plaintiffs. William H. Andring, Esq. Attorney for Defendants Attorney I.D. #26609 248 Creek Road Camp Hill, PA 17011 (717) 975-8796 PENN PRODUCTS CORPORATION, IN THE COURT OF COMMON PLEAS DAVID J. HORICK, DOUGLAS C. CUMBERLAND COUNTY HORICK, MARILYN SNYDER PENNSYLVANIA BUDZYNSKI, Executrix DBN of the Estate of Maybelle Asper, Deceased, CIVIL ACTION, EQUITY DANIEL A. KUHN, DONNA LEE GOFF LEWIS G. KUHN, CAROLYN WAGNER, DORIS 1. ERNST, and JEAN M. HORICK, Plaintiffs V. SANDRA L. McCORKEL, GREGORY R. SWOPS, MEGAN SWOPE, and No. 2838 CIVIL 2012 JOHN D.'SWOPE Defendants CERTIFICATE OF SERVICE I, William H. Andring, Esq., hereby certify that on this, the 25th day of May, 2012, I served a copy of the attached document by causing it to be deposited in the United States Mail, First Class Postage prepaid, addressed as follows: Marvin Beshore, Esquire 130 State, St., P.O. Box 946 Harrisburg, PA 17108-0946 WILLIAM H. ANDRING PENN PRODUCTS CORPORATION, IN THE COURT OF COMMON PLEAS DAVID J. HORICK, DOUGLAS C. CUMBERLAND COUNTY HORICK MARILYN SNYDER PENNSYLVANIA f BUDZYNSKI, Executrix DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF LEWIS G. KUHN, CAROLYN WAGNER, : DORM 1. ERNST, and JEAN M. HORICK, Plaintiffs CIVIL ACTION, EQUITY L? c c-- c V. SANDRA L. McCORKEL, GREGORY R. SWIOPE, MEGAN SWOPE, and JOHN ''D. S WOPE Defendants : No. 2838 CIVIL 2012 NOTICE OF APPEAL Notice is hereby given that Sandra L. McCorkel, Gregory R. Swope, Megan Swope, and John D. Swope, defendants above named, hereby appeal to the Superior ry rv a Court of Pennsylvania from the, order entered in this matter on the 15th day of May, 2012. This order has been entered in the docket as evidenced by the attached copy of the docket entry. Respectfully submitted, ", 6 ??- William H. Andring, Esq. Attorney for Defendants Attorney I.D. #26609 248 Creek Road Camp Hill, PA 17011 (717) 975-8796 4,k le-76 .4r 0_7 5-r36 PYS511 Cumberland County Prothonotary's Office Page 1 Civil Case Print 2012-02838 PENN PRODUCTS CORP ET AL (vs) MCCORKEL SANDRA L ET AL Reference No..: Filed........: 5/07/2012 Case Ty e.....: MISCELLANEOUS - OTHER Time.........: 1:30 Judgment......: 00 Execution Date 0/00/0000 Judge Assigned: MASLAND ALBERT H Jury Trial.... Disposed Desc.: Disposed Date. 0/00/0000 ------------ Case Comments ------------- Higher Crt 1.: Higher Crt 2.: General Index Attorney Info PENN PRODUCTS CpPORATION PLAINTIFF BESHORE MARVIN 1369 SWOPE DRIVE BOILING SPRINGS PA HORICK DAVID J PLAINTIFF BESHORE MARVIN HORICK DOUGLAS C PLAINTIFF BESHORE MARVIN BUDZYNSKI MARILYN SNYDER PLAINTIFF BESHORE MARVIN EXECUTRIX-DBN OF THE ESTATE OF KUHN DANIEL A PLAINTIFF BESHORE MARVIN GOFF DONNA LEE PLAINTIFF BESHORE MARVIN KUHN LEWIS G PLAINTIFF BESHORE MARVIN WAGNER CAROLYN PLAINTIFF BESHORE MARVIN ERNST DORIS I PLAINTIFF BESHORE MARVIN HORICK JEAN M PLAINTIFF BESHORE MARVIN MCCORKEL SANDRA L DEFENDANT ANDRING WILLIAM H 675 VALLEY VIEW DRIVE BOILING SPRINGS PA SWOPE GREGORY R DEFENDANT ANDRING WILLIAM H 1469 KUHN RD BOILING SPRINGS PA SWOPE MEGAN DEFENDANT ANDRING WILLIAM H 28 SUMMER DRIVE DILLSBURG PA SWOPE JOHN D DEFENDANT ANDRING WILLIAM H 28 SUMMER DRIVE DILLSBURG PA ******************************************************************************** Judgment Index Amount Date Desc MCCORKEL SANDRA L 5/29/2012 JUDGMENT ON ORDER SWOPE GREGORY R 5/29/2012 JUDGMENT ON ORDER SWOPE MEGAN 5/29/2012 JUDGMENT ON ORDER SWOPE JOHN D 5/29/2012 JUDGMENT ON ORDER * Date Entries ******************************************************************************** - - - - - - - - - - - - - FIRST ENTRY - - - - - - - - - - - - - - 5/07/2012 COMPLAINT FOR PRELIMINARY OR SPECIAL INJUNCTION AND A PERMANENT INJUNCTION - BY MARVIN BESHORE ATTY FOR PLFFS ------------------------------------------------------------------- 5/08/2012 ORD R OF COURT DATED 5-8-12 IN RE PRELIMINARY INJUNCTION - HEARING IS CHEDULED FOR MAY 18 2012 AT 1 30 PM IN CR 1 - BY THE COURT ALB RT H MASLAND J- COPIES MAILED 5-8-12 ------------------------------------------------------------------- 5/09/2012 DPRA.ECIPE ENTSWOPESEARANCE - BY WILLIAM H ANDRING ATTY FOR ------------------------------------------------------------------- 5/10/2012 ORDER OF COURT - 5/9/12 - IN RE: HEARING SET FOR 5/14/12 ® 9:00 AM PYS511 Cumberland County Prothonotary's Office Page 2 Civil Case Print 2012-02838 PENN PRODUCTS CORP ET AL (vs) MCCORKEL SANDRA L ET AL Reference No..: Filed........: 5/07/2012 Case Ty e.....: MISCELLANEOUS - OTHER Time.........: 1:30 Judgment..... s .00 Execution Date 0/00/0000 Judge Assigned; MASLAND ALBERT H Jury Trial.... Disposed Desc.: Disposed Date. 0/00/0000 ------------ Case Comments -------------- Higher Crt 1.: Higher Crt 2.: IN C R 1 CUMB CO COURTHOUSE - BY THE COURT ALBERT H MASLAND J COPIES MAILED 5/10/12 -------------------------------------------------------------------- 5/15/2012 ORDER OF COURT - 5/15/12 - IN RE: PLFFS' COMPLAINT FOR PRELIMINARY OR SPECIAL INJUNCTION AND PERMANENT INDUCTION - BY THE COURT ALBERT H MASLAND J - COPIES MAILED 5/15/12 -------------------------------------------------------------------- 5/10/2012 BOND - $1.00 PD BY MARVIN BESHORE ESQ ------------------------------------------------------------------- 5/25/2012 DEFENDANTS PRELIMINARY OBJECTIONS TO PLAINTIFFS COMPLAINT - BY WILLIAM H ANDRING ATTY FOR DEFTS -------------------------------------------------------------------- 5/29/2012 OPR ECIPE FOR EWILLIAMNTRY JUDGMENTGIN DOCKET PDEFTSER OF COURT DATED -------------------------------------------------------------------- 5/29/2012 NOTICE MAILED TO ATTY FOR PLFF AND HAND DELIVERED TO ATTY FOR DEFT - - - - - - - - - - - - - - LAST ENTRY - - - - - - - - - - - - - - ******************************************************************************** * Escrow Information * Fees & Debits Bec*Bal***Pmts/Adl End Bal ******************************** **** ****** ******************************* COMPLAINT 65.25 65.25 .00 TAX ON CMPLT .50 .50 .00 SETTLEMENT 9.50 9.50 .00 AUTOMATION 5.00 5.00 .00 JCP FEE 23.50 23.50 .00 BOND 1.00 1.00 .00 JDMT 16.50 - 16.50 ---------- --- .00 --------- ------------- 121.25 121.25 .00 ******************************************************************************** * End of Case Information ******************************************************************************** TRUE COPY FROM RECORD b Tee mony whors&, I here unto set my hand Mid thLLr.!! of said Court at Carlisle, Pe. T1?3 31 41 .20 /? PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF LEWIS G. KUHN, CAROLYN WAGNER, DORIS L ERNST, and JEAN M. HORICK, Plaintiffs V. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY PENNSYLVANIA : CIVIL ACTION, EQUITY SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and No. 2838 CIVIL 2012 JOHN D. SWOPE Defendants CERTIFICATE OF SERVICE I, William H. Andring, Esq., hereby certify that on this, the 29th day of May, 2012,11 served a copy of the attached document by causing it to be deposited in the Unitedi, States Mail, First Class Postage prepaid, addressed as follows, which service satisfies the requirements of Pa.R.A.P. 121: Marvin Beshore, Esquire 130 State St., P.O. Box 946 Harrisburg, PA 17108-0946 Melissa H.Calvanelli District Court Administrator 1 Courthouse Square, 3R Carlisle, PA 17013 Hon. Filbert H. Masland Court Of Common Pleas 1 Courthouse Square Carlisle, PA 17013 Pam Sheffer Distri?t Court Administration 1 Courthouse Square, 3R Carlisle, PA 17013 ILLIAM . ANDRING PENN PRODUCTS CORPORATION, IN THE COURT OF COMMON PLEAS DAVI J. HORICK, DOUGLAS C. CUMBERLAND COUNTY HORICK MARILYN SNYDER PENNSYLVANIA BUD2 YNSKI, Executrix DBN of the Estate!! of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF LEWIS G. KUHN, CAROLYN WAGNER, DORI$ I. ERNST, and JEAN M. HORICK, Plaintiffs CIVIL ACTION, EQUITY zM ?.. :;- zt: - V. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and No. 2838 CIVIL 2012 JOHN D. SWOPE Defendants REQUEST FOR TRANSCRIPT n.s A Notice of Appeal having been filed in this matter, the official court reporter is hereby ? ordered to produce, certify, and file the transcript in this matter, in conformity with Rule 1922 of the Pennsylvania Rules of Appellate Procedure. Respectfully submitted, William H. Andring, Esq. Attorney for Defendants Attorney I.D. #26609 248 Creek Road Camp Hill, PA 17011 (717) 975-8796 PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs V. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY PENNSYLVANIA CIVIL ACTION, EQUITY SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and No. 2838 CIVIL 2012 JOHN D. SWOPE Defendants PRAECIPE TO ENTER JUDGMENT IN DOCKET To the Prothonotary: Please enter judgment on the Order of Judge Masland in the above-captioned action, dated May 15, 2012, in the appropriate court docket. Respectfully submitted, William H. Andring, Esq. 2 Attorney for Defendants Attorney I.D. #26609 248 Creek Road Camp Hill, PA 17011 (717) 975-8796 _1_7S0r33 PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY PENNSYLVANIA CIVIL ACTION, EQUITY V. SANDRA L. McCORKEL, GREGORY R. SWOPS, MEGAN SWOPE, and JOHN D. SWOPE Defendants : No. 2838 CIVIL 2012 CERTIFICATE OF SERVICE I, William H. Andring, Esq., hereby certify that on this, the 29th day of May, 2012, I served a copy of the attached document by causing it to be deposited in the United States Mail, First Class Postage prepaid, addressed as follows: Marvin Beshore, Esquire 130 State St., P.O. Box 946 Harrisburg, PA 17108-0946 WILLIAM H. ANDRING 7 I a PENN PRODUCTS CORPORATION IN THE COURT OF COMMON PLEAS OF DAVID J. HORICK, DOUGLAS C. CUMBERLAND COUNTY, PENNSYLVANIA HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G, KUHN, CAROLYN WAGNER,: _ , DORIS l', ERNST, AND JEAN M. ? N HORICI4, xM ? PLAINTIFFS C r- a cn D mac, V. o Dci .0 =Ic • SANDRA L. McCORKEL, GREGORY zo C-- MEGAN SWOPE, AND SWOIPE R , . JOHN D. SWOPE, DEFENDANTS 12-2838 CIVIL TERM ORDER OF COURT AND NOW, this __/- day of May, 2012, following a hearing on May 14, 2012, regarding Plaintiffs' complaint for preliminary or special injunction and a permanent injunction, the court finds that the Annual Shareholders Meeting on April 25, 2012, was properly noticed and convened and that the ensuing election of Directors and officers comported with both the bylaws of the corporation and the laws of this Commonwealth. Therefore, IT IS ORDERED AND DIRECTED that a permanent injunction be issued as follows: 1. The Directors and Officers elected on April 25, 2012, (David J. Horick, Marilyn Snyder Budzynski, Donna Lee Goff, Sandra K. Kreider, Douglas C. Horick, Daniel S. Kuhn, and Richard Magee, Esquire), are authorized and directed to undertake the management of Penn Products Corporation; 2. Defendants are prohibited from acting on behalf of Penn Products Corporation; a6 3. All actions of the Defendants subsequent to the April 25, 2012 Annual Meeting of the Shareholders which purported to be on behalf of Penn Products Corporation are declared null and void unless rated by the newly constituted Board of Directors; 4. Defendants shall deliver forthwith to the Directors and Officers of Penn Products Corporation all keys to corporate property, all corporate checkbooks and other financial accounts, all corporate records and the corporate seal; 5. Bond is continued at $1.00. By the Court, e1Z Ibert H. Ma and, J. ?k(arvin Beshore, Esquire Luther E. Milspaw, Jr., Esquire 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 For Plaintiffs J ,Ailliam Andring, Esquire 248 Creek Road Camp Hill, PA 17011 For Defendants saa • • IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs V. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE, Civil Action - Equity No. 2012 - 2838 Ci?tiT F er ; Defendants ACCEPTANCE OF SERVICE I, William Andring, Esquire, hereby accept service of the Complaint on behalf of Defendants, SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE and JOHN D. SWOPS, and certify that I am authorized to do so. i William H. An ring, Esquir Attorney ID No. 26609 238 Creek Road Camp Hill, PA 17011 (717) 234-4728 Dated: May C, 2012 Gu+.??E14115YL? IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PENN PRODUCTS CORPORATION, Civil Action - Equity ET AL. Plaintiffs No. 2012 - 2838 v. SANDRA L. McCORKEL, ET AL. Defendants PRAECIPE To: The Prothonotary of Cumberland County Please file the attached Verification, which was executed on May 7, 2012, but was inadvertently omitted from the Complaint for Preliminary or Special Injunction and Permanent Injunction. Respectfully submitwl VMa in Beshore, Esquire Attorney ID # PA 31979 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 717-236-0781, Fax: 717-236-0791 MBeshore@beshorelaw.com Attorney for Plaintiffs 00052284.wM vi VERIFICATION I, David J. Horick, an individual plaintiff and a shareholder, as well as a duly elected Director and the duly elected President of Penn Products Corporation, hereby state that the averments of fact in the foregoing Complaint for Preliminary or Special Injunction and a Permanent Injunction, are true and correct to the best of my knowledge, information and/or belief. This Verification is made subject to the penalties of 18 Pa.C.S. 4904 related to unsworn falsifications to authorities. CERTIFICATE OF SERVICE I, Marvin Beshore, Esquire, counsel for Plaintiffs in this action, he eby certify that a true and' ect copy of the foregoing Praecipe was served this day of 2012 upon Defendants' counsel, William Andring, Esquire, 248 Creek Rd,' Ca Hill, PA 17011, via United States mail, first class postage prepaid in Harrisburg, PA. 00052284.WPD; vl PENN PRODUCTS CORPORATION DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A.' KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER,: DORIS 1. EIRNST, AND JEAN M. HORICK, PLAINTIFFS V. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA SANDRA L. McCORKEL, GREGORY R. SWOPEE, MEGAN SWOPE, AND JOHN D. SIWOPE, DEFENDANTS 12-2838 CIVIL TERM ORDER OF COURT AND NOW, this 30" day of May, 2012, Defendants shall file and serve a copy in the chambers of this judge a concise statement of errors complained of on appeal within twenty- one (21) days of this date. By the Court, ? Marvin Beshore, Esquire Luther E. Milspaw, Jr., Esquire 130 State Street, P.O. Box 946 Harrisburg,' PA 17108-0946 For Plaintiffs V William Andring, Esquire 248 Creek Road Camp Hill, PA 17011 For Defendants saa C10fi,e'6 ma, led s`.3?//X / , Albert H. Masland, c?? 44461 i superior Court of Vennovibania Karen Reid Bramblett, Esq. Prothonotary Middle District Marv A. Gravbill, Esq. Deputy Prothonotary June 4, 2012 Buell, David D. Prothonotary Cumberland County Courthouse 1 Courthouse Square Carlisle, PA 17013 Pennsylvania Judicial Center P.O. Box 62435 601 Commonwealth Avenue, Suite 1600 Harrisburg, PA 17106-2435 (717) 772-1294 www. su peri or. court. state. pa. u s RE: Penn Products Corporation, David J. Horick, Douglas C. Horick, Marilyn Snyder Budzynski, Executrix DBN of the Estate of Maybelle Asper, Deceased, Daniel A. Kuhn, Donna Lee Goff, Lewis G. Kuhn, Carolyn Wagner, Doris I. Ernst and Jean M. Horick V. Sandra L. McCorkel, Gregory R. Swope, Megan Swope and John D. Swope Appellants 985 MDA 2012 Trial Court Docket No: Dear David D. Buell: 2838 Civil 2012 Enclosed please find a copy of the docket for the above appeal that was recently filed in the Superior Court. Kindly review the information on this docket and notify this office in writing if you believe any corrections are required. Appellant's counsel is also being sent a Docketing Statement, pursuant to Pa.R.A.P. 3517, for completion and filing. Please note that Superior Court Dockets are available on the Internet at the Web site address printed at the top of this page. Thank you. Respectfully yours, Mary A. Graybill, Esq. Deputy Prothonotary /vsl Enclosure 11:37 A.M. Appeal Docket Sheet Superior Court of Pennsylvania Docket Number: 985 MDA 2012 Page 1 of 2 Secure June 4, 2012 CAPTION Penn Products Corporation, David J. Horick, Douglas C. Horick, Marilyn Snyder Budzynski, Executrix DBN of the Estate of Maybelle Asper, Deceased, Daniel A. Kuhn, Donna Lee Goff, Lewis G. Kuhn, Carolyn Wagner, Doris I. Ernst and Jean M. Horic V. Sandra L. McCorkel, Gregory R. Swope, Megan Swope and John D. Swope Appellants CASE INFORMATION Initiating Document: Notice of Appeal Case Status: Active Case Processing Status: May 31, 2012 Awaiting Original Record Journal Number: Case Category: Civil Case Type(s): Equity CONSOLIDATED CASES RELATED CASES SCHEDULED EVENT Next Event Type: Receive Docketing Statement Next Event Due Date: June 18, 2012 Next Event Type: Original Record Received Next Event Due Date: July 30, 2012 COUNSEL INFORMATION Appellant Sandra L. McCorkel, Gregory R. Swope, Megan Swope and John D. Swope Pro Se: No Appoint Counsel Status: Represented IFP Status: No Attorney: Andring, William Hugh Bar No: 026609 Address: 248 Creek Rd Camp Hill, PA 17011 Phone No: (717) 975-8796 Fax No: Receive Mail: Yes Receive EMail: No Appellee Penn Products Corporation, et al Pro Se: No Appoint Counsel Status: Represented - IFP Status: :- - Attorney: Beshore, Marvin Bar No: 031979 - Address: 130 State St PO Box 946 -; Harrisburg, PA 17108 c Phone No: (717) 236-0781 Fax No: (717) 236-0791 Receive Mail: Yes _ c, y= Receive EMail: No = 0 11:3tA.M. Appeal Docket Sheet Docket Number: 985 MDA 2012 Page 2 of 2 June 4, 2012 Fee Dt Fee Name 05/31/2012 Notice of Appeal Superior Court of Pennsylvania Secure FEE INfOIRIMTION Fee Amt Receipt Dt Receipt No Receipt Amt 73.50 05/31/2012 2012-SPR-M-000529 73.50 AGENCY/TRIAL COURT INFORMATION Court Below: Cumberland County Court of Common Pleas County: Cumberland Division: Cumberland County Civil Division Order Appealed From: May 15, 2012 Judicial District: 09 Documents Received: May 31, 2012 Notice of Appeal Filed: May 29, 2012 Order Type: Order Entered OTN(s): Lower Ct Docket No(s):2838 Civil 2012 Lower Ct Judge(s): Masland, Albert H. Judge ORIGINAL RECORD CONTENT Original Record Item Filed Date Content Description Date of Remand of Record: ORtEFING- SCHEDULE None None DOCKET ENTRY Filed Date Docket Entry / Representing Participant Type Filed By May 31, 2012 Notice of Appeal Docketed Appellant Sandra L. McCorkel, Gregory R. Swope, Megan Swope and John D. Swope June 4, 2012 Docketing Statement Exited (Civil) Middle District Filing Office PENN PRODUCTS CORPORATION, IN THE COURT OF COMMON PLEAS DAVID J. HORICK, DOUGLAS C. CUMBERLAND COUNTY ` 7, HORICK, MARILYN SNYDER PENNSYLVANIA - BUDZYNSKI, Executrix DBN of the 7 E Estate of Maybelle Asper, Deceased, CIVIL ACTION, EQUITY "- DANIEL A. KUHN, DONNA LEE GOFF LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs `." V. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and No. 2838 CIVIL 2012 JOHN D. SWOPE : Defendants DEFENDANTS' STATEMENT OF ERRORS COMPLAINED OF ON APPEAL AND NOW come Defendants, Sandra L. McCorkel, Gregory R. Swope, Megan Swope, and John D. Swope, by and through their attorney, William H. Andring, Esq., and file the within Statement of Errors Complained of on Appeal: 1. The Complaint in this action was filed on May 7, 2012. 2. The Complaint was not verified. 3. The Complaint contained false and scandalous accusations in Paragraphs 19, 21, 22, 23, 45, 48, 50, 52, and 53 4. The Complaint requested the granting of a special or preliminary injunction and a permanent injunction. 5. A Petition for a Preliminary or Special Injunction was never filed with the Court. 6. A proposed Order granting a special injunction was attached to the Complaint. 7. On May 8, 2012, the Honorable Albert H. Masland, Judge of the Court of Common Pleas of Cumberland County, acting ex parte, signed the Order attached to the Complaint, granting all injunctive relief requested by Defendants, and scheduling a hearing on May 18, 2012, 10 days after the date of the Order. 8. No bond or other security was ordered by the Court, or posted by the Plaintiffs. 9. On May 9, 2012, Judge Masland entered another ex parte Order, vacating his Order of May 8. The Order of May 9 granted the Plaintiffs most of the special injunctive relief they had requested against Defendants, ordered that Plaintiffs post a bond of $1.00 (one dollar), and scheduled a hearing on May 14, 2012. 10. After the hearing on May 14, 2012, Judge Masland entered an Order dated May 15, 2012, which contained a final adjudication of the factual and legal issues in dispute between the parties, and entered a permanent injunction in favor of the Plaintiffs and against the Defendants. 11. The actions of Judge Masland have violated virtually every provision of the Pennsylvania Rules of Civil Procedure relating to the procedure in a civil action, the procedure in an action in equity, the granting of special or preliminary injunctive relief, and the granting of permanent injunctive relief. 12. The actions of Judge Masland have deprived the Defendants of their rights to due process and equal protection of the laws under the United States Constitution. Respectfully submitted, C William H. Andring, Esq. Attorney for Defendants Attorney I.D. #26609 248 Creek Road Camp Hill, PA 17011 (717) 975-8796 PENN PRODUCTS CORPORATION, IN THE COURT OF COMMON PLEAS DAVID J. HORICK, DOUGLAS C. CUMBERLAND COUNTY HORICK, MARILYN SNYDER PENNSYLVANIA BUDZYNSKI, Executrix DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs CIVIL ACTION, EQUITY v. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE : No. 2838 CIVIL 2012 Defendants CERTIFICATE OF SERVICE I, William H. Andring, Esq., hereby certify that on this, the 201' day of June, 2012, I served a copy of the attached document by causing it to be deposited in the United States Mail, First Class Postage prepaid, addressed as follows: Marvin Beshore, Esquire 130 State St., P.O. Box 946 Harrisburg, PA 17108-0946 I further certify that on this date I personally served a copy of the attached document in the chambers of Judge Albert H. Masland. WILLIAM H. ANDRING PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER,: DORMS I. ERNST, AND JEAN M. HORICK, PLAINTIFFS V. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA SANQRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, AND JOHN D. SWOPE, DEFENDANTS 12-2838 CIVIL TERM IN RE: OPINION PURSUANT TO PA.R.A.P. 1925 Masland, J., August 24, 2012:-- I. Background In this fiercely fought equity case, involving the struggle for control of a closely held corporation, Plaintiffs filed a complaint on May 7, 2012 seeking both a preliminary or special injunction and a permanent injunction. Although Defendants have raised a panoply of errors, the crux of their appeal is that the court erred in granting permanent relief without convening a new hearing. Therefore, we begin by setting forth at length Plaintiffs' requested relief: WHEREFORE, Plaintiffs request this Honorable Court to enter a Special or Preliminary Injunction that does the following until further order of this Court: 1. Enjoins the purported "Resumption of Annual Meeting of Stockholders" that has been noticed for May 10, 2012; 2. Prohibits Defendants from acting on behalf of the Corporation; 3. Prohibits Defendants from accessing any and all financial accounts of the Corporation, including, 12-2838 CIVIL TERM but not limited to checking accounts at M&T Bank, checking accounts at Adams County National Bank, and investment accounts at Charles Schwab & Co., Inc.; 4. Recognizes the Directors and Officers who were duly elected on April 25, 2012; and, 5. Directs Defendants immediately to deliver to the New Directors all keys to Corporate property, all Corporate checkbooks and other financial accounts, all corporate records, and the Corporate Seal. WHEREFORE, Plaintiffs further request this Honorable Court to enter a Permanent Injunction, following requisite hearing, that does the following until further order of this Court: 1. Enjoins the purported "Resumption of Annual Meeting of Stockholders" that has been noticed for May 10, 2012; 2. Prohibits Defendants from acting on behalf of the Corporation; 3. Prohibits Defendants from accessing any and all financial accounts of the Corporation, including, but not limited to checking accounts at M&T Bank, and investment accounts at Charles Schwab & Co., Inc. 4. Validates the results of the election held on April 25, 2012; and 5. Places management of the Corporation in the hands of the Directors and Officers elected on April 25, 2012, i.e., David J. Horick, Douglas C. Horick, Daniel A. Kuhn, Marilyn Snyder Budzynski, Donna Lee Goff, Sandra K. Kreider, and Richard Magee, until the next election of Directors; and, 6. Grant such other and further relief as the Court may deem just and proper.' On May 8, 2012 this court issued an order which granted the requested preliminary or special injunction and set a hearing on the matter for Friday, May 18, 2012, at 1:30 p.m. Upon realizing the court had erred in failing to set bond and in failing to schedule a timely hearing pursuant to Pa.R.C.P. No. 1531, we `Plaintiffs' complaint filed May 7, 2012, at 16-17. As is evident, the difference between the preliminary and permanent relief sought is inconsequential. -2- 12-2838 CIVIL TERM entered an order on May 9, 2012, that vacated the order of May 8, 2012 and, in effect, reissued the same order with two exceptions - bond was set at $1.00 and the hearing was scheduled for May 14, 2012, at 9:00 a.m. On May 14, 2012, the court heard approximately six hours of testimony from nine witnesses, admitted 18 exhibits into evidence and heard argument from counsel, all of which was every bit as feisty as the shareholders' meeting that gave rise to this action. Our May 15, 2012 order began with the finding "that the Annual Shareholders Meeting on April 25, 2012, was properly noticed and convened and that the ensuing election of Directors and Officers comported with both the by-laws of the corporation and the laws of this Commonwealth." Consequently, we deemed it appropriate to issue a permanent injunction that authorized the Directors and Officers elected on April 25, 2012, to undertake the management of the corporation; prohibited the Defendants from acting on behalf of the corporation; declared the actions of the Defendants subsequent to the April 25, 2012 annual meeting to be null and void unless ratified by the newly constituted board; and directed the Defendants to deliver all of the corporate records to the new Directors of the corporations. Defendants have appealed to the Superior Court and, in their statement of matters complained of, have expressed the grounds for the appeal as follows: 1. The Complaint in this action was filed on May 7, 2012. 2. The Complaint was not verified. 3. The Complaint contained false and scandalous accusations in Paragraphs 19, 21, 22, 23, 45, 48, 50, 52, and 53. 4. The Complaint requested the granting of a special or preliminary injunction and a permanent injunction. -3- 12-2838 CIVIL TERM 5. A Petition for a Preliminary or Special Injunction was never filed with the Court. 6. A proposed Order granting a special injunction was attached to the Complaint. 7. On May 8, 2012, the Honorable Albert H. Masland Judge of the court of Common Pleas of Cumberland County, acting ex parte, signed the Order attached to the Complaint, granting all injunctive relief requested by Defendants, and scheduling a hearing on May 18, 2012, 10 days after the date of the order. 8. No bond or other security was ordered by the Court, or posted by the Plaintiffs. 9. On May 9, 2012, Judge Masland entered another ex parte, order, vacating his Order of May 8. The Order of May 9 granted the Plaintiffs most of the special injunctive relief they had requested against Defendants, ordered that Plaintiffs post a bond of $1.00 (one dollar), and scheduled a hearing on May 14, 2012. 10. After the hearing on May 14, 2012, Judge Masland entered an Order dated May 15, 2012, which contained a final adjudication of the factual and legal issues in dispute between the parties, and entered a permanent injunction in favor of the Plaintiffs and against the Defendants. 11. The actions of Judge Masland have violated virtually every provision of the Pennsylvania Rules of Civil Procedure relating to the procedure in a civil action, the procedure in an action in equity, the granting of special or preliminary injunctive relief, and the granting of permanent injunctive relief. 12. The actions of Judge Masland have deprived the Defendants of their rights to due process and equal protection of the laws under the United States Constitution. Having been reproached for running roughshod over the constitution and rules of civil procedure, we have endeavored to not react defensively in this opinion. And, to the extent we erred, we will further endeavor to correct the same. Nevertheless, a fair hearing of the evidence produced drew us inevitably -4- 12-2838 CIVIL TERM to our conclusion. And, we submit that a fair reading of the numerous matters complained of boils down to one issue -- were the Defendants denied due process when we granted the requested relief? In keeping with this assessment, we have narrowed our findings to what we found to be credible, true and salient. 11. Findinas of Facts Proper notice was given to the Shareholders of the April 25, 2012 Annual Shareholders Meeting of Penn Products Corporation.2 2. The largest shareholder in attendance (holding 5,195 shares or 20.78% of all outstanding shares) was Marilyn Budzynski, who was the duly appointed personal representative of the Estate of Maybelle Asper.3 3. The Plaintiffs submitted legitimate proxies to the Defendants prior to the meeting being convened.4 4. Then President, Sandra L. McCorkel (hereafter McCorkel), called the meeting to order in the living room because there were too many attendees to meet in the kitchen as planned.5 5. McCorkel declared the first order of business to be the election of the Board of Directors and began to pass out preprinted ballots that only contained the names of the Defendants .6 z See Plaintiffs' Exhibit 1, hearing May 14, 2012 (hereinafter Pl.'s Ex. _); Notes of Testimony 10 and 57, hearing May 14, 2012 (hereinafter N.T. - ). s Pl.'s Ex. 9A and 913; N.T. 6-9, 12, 47. Although much ado was made at the hearing regarding the appointment of Ms. Budzynski and, consequently, her ability to vote the Estate's shares, that argumient was not raised in the statement of matters complained of. Perhaps, this was out of recognition that we may have gotten one thing right, or, it may have been an oversight. Regardless, the Probate, Estates and Fiduciaries Code is clearly on the side of the Plaintiffs. 4 N.T. 16 and Court Exhibit 1. 5 N.T. 15. 6 N.T. 16. -5- 12-2838 CIVIL TERM 6. McCorkel was advised by counsel for Plaintiffs that there was an alternate slate of candidates consisting of David Horick, Douglas Horick, Marilyn Budzynski, Donna Goff, Sandra Kreider, Richard Magee and Daniel Kuhn all of whom were properly moved, seconded and ultimately added to the ballot.' 7. After the ballots were revised, McCorkel attempted to appoint/nominate Defendants Greg Swope, John Swope and/or Megan Swope to servefas judges of election, but was informed by counsel for Plaintiffs that pursuant to the Penn Products by-laws and the statutes of Pennsylvania, a candidate may not serve as a judge of election.8 8. After some additional confusion, discussion, and perhaps a few raised voices, Marilyn Budzynski nominated Crady Swisher (hereafter Swisher) who was one of only three individuals present at the meeting who were legally eligible to serve as judge of elections.9 9. There was a somewhat begrudged consensus among the Shareholders that Swisher would serve as judge of elections, and McCorkel, the officer empowered to appoint the judges of elections, stated words to the effect of "alright let's proceed."10 10. Following the resolution of the question as to who would serve as judge of elections, McCorkel passed out the ballots." 11. Shortly after passing out the ballots, and following a phone call with then corporate counsel, without a motion or vote to adjourn, McCorkel N.T. 116, 20 and 166. 8 N.T. 118-19 and 122-123; see PL's Ex. 1 at 16 and 15 Pa.C.S. § 1765. 9 N.T. 121. 10 N.T. 19, 130-131 and 141. " N.T. 141. -6- 12-2838 CIVIL TERM announced "this meeting is over" and within minutes turned out the lights in order to usher the Plaintiffs out of the house. 12 12. Amidst a flurry of objections to adjournment by the Plaintiffs, McCorkel declared "don't make me have to call the police" in order to force the Plaintiffs off the premises. 13 13. Swisher attempted to collect all of the ballots prior to leaving, but the Defendants refused to give him their ballots. 14 14. After Swisher collected the ballots in the house, the Plaintiffs proceeded to meet outside in the parking lot and continued the election of officers that had commenced inside, with each candidate on the aforesaid alternate slate receiving well over 50% of the votes present, in person or by proxy (14,630 votes of a possible 23,175).15 15. Following their attempt to abort the election of directors, the Defendants met on May 1, 2012 and continued to transact business on behalf of the corporation, including the payment of approximately $300,000 in accounts payable, the declaration of a dividend in the amount of $22.00 per share and the mailing of notices to reconvene the Annual Shareholders Meeting on May 10, 2012.16 12 N.T. 21 and 59. " N.T. 21. 14 N.T. 25. " Pl.'s Ex. 10, Pl.'s Ex 11 and N.T. 24-26. 16 N.T. 63-65. -7- 12-2838 CIVIL TERM 16. The transactions by Defendants required sizeable transfers of funds between corporate accounts with Charles Schwab and ACNB leaving only $20,000 in the corporate accounts for operation of the corporation." 17. All four Defendants deposited their $62,476.00 dividend checks into their ACNB accounts on May 7, 2012, withdrew $60,000 in cash two days later and deposited the same into accounts with different institutions.'a 18. On May 3, 2012, the newly elected Directors met at a properly called meeting to authorize the filing of the instant action.19 III. Leaal Principles As noted, Plaintiffs sought a preliminary or special injunction as well as permanent injunctive relief. We will review the standard for each below. A preliminary injunction seeks to maintain the status quo until the rights of the parties can be finally adjudicated. New Castle Orthopedic Associates v. Bums, 392 A.2d 1383 (Pa. 1978). In determining whether to grant a preliminary injunction the court must apply the following standard: [A] court may grant a preliminary injunction only where the moving party establishes the following elements: (1) that relief is necessary to prevent immediate and irreparable harm which cannot be compensated by damages; (2) that greater injury will occur from refusing the injunction than from granting it; (3) that the injunction will restore the parties to the status quo as it existed immediately before the alleged wrongful conduct; (4) that the alleged wrong is manifest and the injunction reasonably suited to abate it; and (5) that the plaintiffs right to relief is clear ... Lewis v. City of Harrisburg, 631 A.2d 807 (Pa. Cmwlth. 1993). " N.T. 63, 73. 'S N.T. 69-74. 19 N.T. 29-30. -8- 12-2838 CIVIL TERM Furthermore, our courts have long recognized that the grant of a preliminary injunction is a "harsh and extraordinary remedy." League of Women Voters of Pennsylvania v. Commonwealth, 683 A.2d 685, 688 (Pa. Cmwlth. 1986),. Therefore, "it is to be granted only when and if each criteria has been fully and completely established." Id. (emphasis in original). The standard for a permanent injunction differs from that of a preliminary injunction. The burden is upon the plaintiff to establish its clear right to relief; however, it "need not establish either irreparable harm or immediately relief' but only "a legal wrong for which there is not adequate redress at law." Buffalo Twp. v. Jones, 813 A.2d 659, 663 (Pa. 2002). IV. Discussion Before turning to the heart of this case, we will briefly address some of the ancillary issues. First, Defendants raise for the first time on appeal several issues that could have been raised at the hearing or in preliminary objections, such as the failure to attach a verification to the complaint.20 We find that these items are waived for the purposes of the appeal. General Mills, Inc. v. Snavely, 199 A.2d 540, 543 (Pa. Super. 1964). Similarly, Defendants object to the fact that Plaintiffs did not file a petition for injunctive relief, with the matter proceeding to a hearing on the basis of the complaint. While technically correct, the time to raise that was prior to the hearing. At this stage, after a contentious and lengthy hearing, a complaint over the procedural vehicle that brought the parties to court clearly places form over substance. 20 Defendants filed Preliminary Objections on May 25, 2012, in which they, inter alia, raised the issue of verification. Plaintiffs filed a praecipe on May 31, 2012 requesting the attachment of the verification to the complaint, stating it that was "inadvertently omitted." -9- 12-2838 CIVIL TERM We do not minimize the importance of our rules. To the contrary, we take quite seriously the admonition to liberally construe the rules "to secure [a] just, speedy and inexpensive determination ... [and to] disregard any error or defect of procedure which does not affect the substantial rights of the parties.1121 Of course Defendants contend the manifold errors of Plaintiffs have been compounded not minimized by the court's actions, which leads us to the over-arching issue of due process. Due process is defined in Black's Law Dictionary as "the conduct of legal proceedings according to established rules and principles for the protection and enforcement of private rights, including notice and the right to a fair hearing." Black's Law Dictionary, 538 (8th Ed. 2004). Here, there is no question that Defendants had an opportunity to be heard. The sole question is whether the court had sufficient facts at hand to order the relief requested after hearing extensive testimony about what took place on April 25, 2012. The record demonstrates that all parties received their day in court and ample opportunity to set forth their positions over what occurred at the Shareholders' Meeting. Defendants may challenge our conclusions, but ultimately we found their contentions to be baseless and their credibility to be lacking. Contrary to Defendants' claims that they were innocently confused and legally naive, they knew exactly what was happening. In short, Defendants realized that basic addition was not on their side and rather than wait for the votes to be tallied they attempted to use the tried-and-true playground tactic of taking '..their ball and going home (or, in this case, kicking everyone out of their z' Pa.R.C.P. No. 126. -10- 12-2838 CIVIL TERM home). Now that the court has cried foul, Defendants claim that we did not let them play. To the contrary, and to the limits of our patience at times, everyone was allowed on the court's playground. We are satisfied that McCorkel's statements and actions constituted, in the least, an implicit appointment of a judge of elections and that she, thereafter, passed out the ballots to the shareholders present, the Defendants could not effectively terminate the meeting and nullify the election, when they were displeased with the result. The attempt by McCorkel and the other Defendants to adjourn the meeting without a motion or vote was in direct contravention of not only Pennsylvania's Business Corporation law, 15 Pa.C.S. § 1755(c) but also the Penn Products By-laws, Article 3, Section 3,22 both of which require a majority vote of the shareholders present and entitled to vote in order to effect adjournment of a meeting at which directors are to be elected. Therefore, having found as a matter of law that the new slate of directors was properly elected on April 25, 2012, this court had no choice but to grant the relief requested and remove the reigns of power from the Defendants. In 1971, the parties chose the corporate form of governance under the laws of this Commonwealth. With that choice, they were accorded numerous protedtions as shareholders. Whether a corporation holds its shareholders' meetings in a modest residence or an ornate convention hall, the officers and directors must abide by the statutes that have been set in place by the state and the by4aws they have adopted. Blatantly disregarding the same to avoid an inevitable change of control is contrary to the letter and spirit of the law. 22 Pl.'s Ex. 1. -11- 12-2838 CIVIL TERM Of course, the question remains whether the relief granted should have been temporary or permanent. In the case at hand, with the nature of relief requested, we submit this is a distinction without a difference. Plaintiffs established their entitlement to relief under the standards for both preliminary and permanent injunctive relief. Once the court confirmed the election of the new directors, the balance of the relief requested was not only logical but was of pure necessity. To be sure, our appellate courts have stated that a trial court errs when it allows a preliminary injunction hearing to morph into a hearing into a permanent injunction. Soja v. Factoryville Sportsmen's Club, 522 A.2d 1129, 1132 (Pa. Super. 1987). We suggest that the instant case is more similar to Key v. Pennsylvania Turnpike Commission, 743 A.2d 546 (Pa. Cmwlth. 1999), wherein the court noted there was extensive evidence introduced at the preliminary injunction proceeding thereby obviating any need for a duplicative hearing before granting permanent injunctive relief. We can think of no additional evidence that Defendants could proffer regarding the events of April 25, 2012 that would change this result. The only evidence limited by the court amounted to Defendants' attempts to prove that they had properly managed the corporation for years. Even if that is true, they did not have the votes on April 25, 2012 to contintie managing the corporation and our focus, for either preliminary or permanent relief, must be on the future, not the distant past. Therefore, we limited Defendants' testimony about their "good works" prior to April 25th, 2012. We permitted testimony regarding their actions after the -12- 12-2838 CIVIL TERM meeting because that, along with their actions at the meeting, established the necessity for injunctive relief, no matter the form. Clearly, paying sizeable bills (some to Defendants personally) and substantially depleting the corporate accounts gives rise to irreparable harm that cannot be otherwise compensated. To the extent that some of the Defendants' actions were arguably proper we left that for the new board to determine. Finally, regarding the standard for permanent relief, the Defendants' actions were legally wrong and Plaintiffs had a clear right to relief. Furthermore, Defendants transactions revealed that even they knew they were wrong - neither the debts paid nor the dividend declared were urgent business that could not wait for the resolution of the issues arising from the disputed shareholders' meeting. But, the Defendants knew they were running out of time, and rather than run the risk that the new directors might act differently, they literally took the air out of the ball. Such conduct would not be condoned on the court and was not condoned in the court. Conclusion Like the proverbial trial judge out for a duck hunt, armed with the law as we know it, when we see what looks like a duck, we shoot. If this Honorable Court determines that we shot the wrong fowl (or the right fowl in the wrong seasom), we will make amends, and pause before taking our next shot. Nevertheless, we strongly suggest that our aim, if not our reasoning, was -13- 12-2838 CIVIL TERM accurate. Therefore, for the foregoing reasons, we believe that the court's grant of the. permanent injunction was proper. By the Court, -w AlbertH. Maslan , J. Marvin Beshore, Esquire Luther E. Milspaw, Jr., Esquire 130 Spate Street, P.O. Box 946 Harri4burg, PA 17108-0946 For Plaintiffs Williagn Andring, Esquire 248 Greek Road Camp Hill, PA 17011 For Defendants :saa Ma ??d S°?ali.Z c $ N era V' --4 ; -14- CERTIFICATE AND TRANSMITTAL OF RECORDS UNDER PENNSYLVANIA RULE OF APPELLATE PROCEDURE 1931 (C) Superior Court of PA To the Prothonotary of the Apellate Court to which the within matter has been appealed: Superior Court of Pennsylvania The undersigned, Prothonotary of the Court of Common Pleas of Cumberland County, the said court being a court of record, do hereby certify that annexed hereto is a true and correct copy of the whole and entire record, including an opinion of the court as required by PA R.A.P. 1925, the original papers and exhibits, if any on file, the transcript of the proceedings, if any, and the docket entries in the following matter: PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK Vs. SANDRA L. MCCORKLE, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE 2012-2838 CIVIL TERM 985 MDA 2012 The documents comprising the record have been numbered from No. 1 to 345, and attached hereto as Exhibit A is a list of the documents correspondingly numbered and identified with reasonable definiteness, including with respect to each document, the number of pages comprising the document. The date on which the record has been transmitted to the Appellate Court is 8/24/2012. ~ S c. ~, id D. Bue ,Pro onotary Alma Kostjerevac, Deputy An additional copy of this certificate is enclosed. Please sign and date cony, thereby acknowled~in~ receipt of this record. Date Signature & Title Col;~monw•ealth of Pennsylvania ss: County of Cumberland (, David D. Buell ,Prothonotary of the Court of C:vmmon Pleas in and far said County, dv hereby certify that the foregoing is a full, true and correct copy of the whole retard of the case therein stated, wherein PENN PRODUCTS CORPORATION, DAVID 1. HORICK DOUGLAS C. HORICK. MARILYN SNYDER BUDZYNSKI„ ET AL. Plaintiff, and SANDRA L. MCCORKLE, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE Defendant, as the same remains of record before the said Caurt at No. 2012-2838 of Civil Term4~~'~~ In "i~ESTI1410VY WHEREOF, 1 have hereunto set my hand and affixed the seat of said Cnurt this 24th day a gus s1. D., 2012 Prr~tnonc~tan~ 1, Kevin A. Hess }'resident ,lodge of the Ninth Judicial District, composed of the County of Cumberland, do certify that David D. Buell by wham the annexed retard, certificate and attestation were rnacle and given, ancf who. in his o~vn proper handwriting, thereunto subscribed his name and affixed tl~e seal of the Cvurt of Cvmman Pleas of said County, was, at the time of so doing, and now is Prothonotary in and for said County of Cumberland in the Commonwealth of Pennsylvania, duly cvmmissioned and qualified to all of whoseacts assuch full faith and credit are and ought to be given as well in t:ourts of judicature as elsewhere, and tha%the said record, certificate and attestation are in due farm of law and made by the prier offiee~. President lud~?c C'omrnonwealth of Pennsylvania County of Cumberland ss_ i David D. Buell Prothvnotary of the Court of Gammon Pleas in arrd for the said County, dv certify that the Honorable Kevin A. Hess by w}JOm the foregoing attestation was made, and who has thereunto subscribed his name, was, at the time of making thereof, and still is President Judge of the Court of Gammon Pleas, Orphan' Court and Court of Quarter Sessions of the Peace in and for said County, duly Commissioned and qualified; to all whose acts as such f"ull faith anti credit are and aught to be given, as welt in Courts of judicature as elsewhere. Iti .~"ESTtf~90tiY WHEREOF, 1 have hereunto -~Zy h id and affixed the seal of said Court this ~`+~~av of _ August ;A. D. 2012 Prolhtuuxar; No. Term 19 No. 2012-2838 CIVIL TERM C1V11 Z'e2'TTl 985 MDA 2012 PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK Versus SANDRA L. MCCORKLE, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE EXEMPLIFIED RECORD From Cumberland Count Y Debt, $ lnt. from Costs Entered and Filed Prothonotary. Amon; the Records and. Proceedings enrolled in the court of Common Pleas in and for the Cumberland county c '' in the Commonwealth of Pennsylvania 2012-2838 CIVIL TERM to No. 985 MDA 2012 Term, 19 is contained the following: COPY OF Appearance DOCKET ENTRY PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEF GOFF, LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK VS. SANDRA L. MCCORKLE, GREGORY R. SWOPS, MEGAN SWOPS, and JOHN D. SWOPS * * SEE CERTIFIED COPY OF DOCKET ENTERIES ._ --...._ ____ I.UtIt.VCt 1d11U, I..VU11l.V !_"-U'_!'V.'.!.V Ld. t'y ' ti V! !_!_C" .`_'dc.~e __ C~v11 Case Pr=nt 2012-02838 PENN PRODUCTS CORD ET AL ,vsl MCCORKEL SANDRA L ET AL Reference No... Filed......... 5'i/07/2012 Case Type.....: MISCELLANEOUS - OTHER Time........ ' 1:30 Judgment..... 00 Execution Date 0'x,/00/0000 Judge Assigned: MASLAND ALBERT H Jury Trial.... Disposed Desc.: Dispposed Date. 0 ------------ Case Comments ------------- HigFler Crt 1.: 985 Higher Crt 2.: General Index Attorney Info PENN PRODUCTS COPORATION PLAINTIFF BESHORE MARVIN 1369 SWOPE DRIVE BOILING SPRINGS PA 00/0000 MDA 2012 ******** HORICK DAVID J PLAINTIFF BESHORE MARVIN HORICK DOUGLAS C PLAINTIFF BE5HORE MARVIN BUDZYNSKI MARILYN SNYDER PLAINTIFF BESHORE MARVIN EXECUTRIX-DBN OF THE ESTATE OF KUHN DANIEL A PLAINTIFF BESHORE MARVIN GOFF DONNA LEE PLAINTIFF BESHORE MARVIN KUHN LEWIS G PLAINTIFF BESHORE MARVIN WAGNER CAROLYN PLAINTIFF BESHORE MARVIN ERNST DORIS I PLAINTIFF BESHORE MARVIN HORICK JEAN M PLAINTIFF BESHORE MARVIN MCCORKEL SANDRA L DEFENDANT ANDRING WILLIAM H 675 VALLEY VIEW DRIVE BOILING SPRINGS PA SWOPE GREGORY R DEFENDANT ANDRING WILLIAM H 1469 KUHN RD BOILING SPRINGS PA SWOPE MEGAN DEFENDANT ANDRING WILLIAM H 28 SUMMER DRIVE DILLSBURG PA SWOPE JOHN D DEFENDANT ANDRING WILLIAM H 28 SUMMER DRIVE DILLSBURG PA *********************************************** *********** ************* ******** Judgment Index Amount Date Desc MCCORKEL SANDRA L 5/29/2012 JUDGMENT ON ORDER SWOPE GREGORY R 5/29/2012 JUDGMENT ON ORDER SWOPE MEGAN 5/29/2012 JUDGMENT ON ORDER SWOPE JOHN D 5/29/2012 JUDGMENT ON ORDER * Date Entries 3'r~z5/07/2012 -,Z 5/08/2012 ~23_(~C~ 5/09/2012 (u~12? 5/10/2012 - - - - - - - - - - - - - FIRST ENTRY - - - - - - - - - - - - - - COMPLAINT FOR PRELIMINARY OR SPECIAL INJUNCTION AND A PE ENT INJUNCTION - BY MARVIN BESHORE ATTY FOR PLFFS ----------------------------------------------------------- ------- ORDER OF COURT DATED 5-8-12 IN RE PRELIMINARY INJUNCTION - FARING IS SCHEDULED FOR MAY 18 2012 AT 1 30 PM IN CR 1 - BY THE CO RT ALBERT H MASLAND J- COPIES MAILED 5-8-12 ----------------------------------------------------------- ------- PRAECIPE TO ENTER APPEARANCE - BY WILLIAM H ANDRING ATTY FO DEFTS/MCCORKEL-SWOPES ORDER OF COURT - 5/9/12 - IN RE: HEARING SET FOR 5/14/12 @ $:00 AM _~____ ~.uuiucl..~.a.llu ~,vuiuy rlv~.~xvi:.vi.a-v ~ viil.~.c ~y~- Civil Case prim 2012-02838 PENN PRODUCTS CORP ET AL (vs) MCCORKEL SANDRA L ET AL Reference No... Filed......... 5/`07/2012 Case Type.....: MISCELLANEOUS - OTHER Time.........: 1:30 Judgment.. 00 Execution Date 0/00/0000 Judge Assigned: MASLAND ALBERT H Jury Trial.... Disposed Desc.: Disposed Date. 000 0000 ------------ Case Comments ------------- Higher Crt 1.: 985 MD 2012 Higher Crt 2.: IN C R 1 CUMB CO COURTHOUSE - BY THE COURT ALBERT H MASLANDIJ COPIES MAILED 5/10/12 _______ 1a.8-/~ 9 5/15/2012 ORDER OF COURT - 5/15/12 - IN RE: PLFFS' COMPLAINT FOR PREL MINARY SPECIAL INJUNCTION AND PERMANENT INDUCTION - BY THE COUR~ OR ALBERT H MASLAND J - COPIES MAILED 5/15/12 5/10/2012 BOND - $1.00 PD BY MARVIN BESHORE ESQ I'30-/3 2 5/25/2012 WILLIAM HSANDRINGIATTY FOREDEFOTSS TO PLAINTIFFS COMPLAINT - ~3 3-13(, 5/29/2012 oRjE5~P2 FOBYEWILLIAM H ANGDRINGIATDOCFOR DEFTORDER OF COURT 5/29/2012 NOTICE MAILED TO ATTY FOR PLFF AND HAND DELIVERED TO ATTY F( ~3rt_/~ p 5/29/2012 FORIDEFOS APPEAL - TO SUPERIOR COURT - BY WILLIAM H ANDRING /r.~( 5/29/2012 REQUEST FOR TRANSCRIPT - BY WILLIAM H ANDRING ATTY FOR DEFT! ~~ Z 5/31/2012 ACCEPTANCE OF SERVICE - COMPLAINT - BY WILLIAM H ANDRING AT' DEFTS ~~3_~Lfs 5/31/2012 PRA~SIPE TO ATTACHE VERIFICATION - BY MARVIN BESHORE ATTY F( /y6 5/31/2012 OORDYRINFTHEUCHAMBERSOOF2THISNJUDGEDAFCONCISELSTATEMEND OFREI COMPLAINED OF ON APPEAL WITHIN 21 DAYS OF THIS DATE - BY TH] ALBERT H MASLAND J - COPIES MAILED 5/31/12 /~'j-/[f9 6/05/2012 SUPERIOR-COURT-OF-PA-NOTICE-OF-APPEAL-DOCKETING-TO-#-985-MDi ~~^ (S3 6/20/2012 DEFENDANTS' STATEMENT OF ERRORS COMPLAINTED OF ON APPEAL - ] WILLIAM H ANDRING ATTY FOR DEFTS (5~-33 O 7/03/2012 TRANSCRIPT OF PROCEEDINGS PRELIMINARY INJUNCTION BEFORE J Mi ON MAY 14 2012 ----------------------------------------------------------- ~~_ ~t~C`8/24/2012 IN RE: OPINION PURSUANT TO PA R A P 1925 - DATED AUGUST 24, BY THE COURT ALBERT H MASLAND J COPIES MAILED 8/24/2012 8/24/2012 NOTICE OF DOCKET ENTRIES MAILED TO WILLIAM H ANDRING ESQ ANl MARVIN BESHORE ESQ - - - - - - - - LAST ENTRY - - - - - - - - - - 3~S - - - - - - - - c~kli~ 6~ * Escrow Information * Fees & Debits Beq Bal Pmts/Ad~ End Bal COMPLAINT 65.25 65.25 .00 TAX ON CMPLT .50 .50 .00 SETTLEMENT 9.50 9.50 .00 AUTOMATION 5.00 5.00 .00 JCP FEE 23.50 23.50 .00 BOND 1.00 1.00 .00 JDMT 16.50 16.50 .00 APPEAL HIGH CT 57.00 57.00 .00 COPIES 3.00 3.00 ------- --- - .00 --------- -------------- 181.25 - - 181.25 .00 *********************************************************************** * End of Case Information BY----- DATED ~R DEFT ATTY Y FOR R----- -A---- RORS COURT 2012 Y-- 2012 ******** * ******** ******** _ _ _ _ -~~~_~__~_ ~.:u.m.x/er!ar..a ~oL~r.ty urotn.or.-ota-rv~.s v=L?_ce aae ~~ ~-- Civil Case Pr:_rlt - 2012-0283E3 PENN PRODUCTS CORP ET AL (vs) MCCORKEL S:?~NDRA L ET AL Reference No..: Filed........: 5/07/2012 Case Type.....: MISCELLANEOUS - OTHER Time.........: 1:30 Judgment. 00 Execution Date 0/00/0000 Judge Assigned: MASLAND ALBERT H Jury Trial.... Disposed Desc.: Disposed Date. 0 00/0000 -------------- Case Comments ------------- Higher Crt 1.: 985 MDA 2012 Hi~her Crt 2.: *****x***;~********************************************* ~****~F********* ******** TRUE COPY FROM RECORI In Testimony whereof, 1 here unto set my and the ~sLeal of said Cou aat~Car-lisle, Pa. This.Q~,day of.._~ V , 2~ Prothor s f"~G ____ _,-. --- _ i ~, CERTIFICATE AND TRANSMITTAL OF RECORDS UNDER PENNSYLVANIA RULE OF APPELLATE PROCEDURE 1931 (C) Superior Court of PA To the Prothonotary of the Apellate Court to which the within matter has been appealed: Superior Court of Pennsylvania The undersigned, Prothonotary of the Court of Common Pleas of Cumberland County, the said court being a court of record, do hereby certify that annexed hereto is a true and correct copy of the whole and entire record, including an opinion of the court as required by PA R.A.P. 1925, the original papers and exhibits, if any on file, the transcript of the proceedings, if any, and the docket entries in the following matter: PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK Vs. SANDRA L. MCCORKLE, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE 2012-2838 CIVIL TERM 985 MDA 2012 The documents comprising the record have been numbered from No. 1 to 345, and attached hereto as Exhibit A is a list of the documents correspondingly numbered and identified with reasonable definiteness, including with respect to each document, the number of pages comprising the document. The date on which the record has been transmitted to the Appellate Court is 8/24/2012. Date Aeoeiv~ed in Superior Court AUG 2 4 201? Alma Kostjerevac, Deputy Signature & Title MIDDLE PENN PRODUCTS CORPORATION, : IN THE COURT OF COMMON DAVID J. HORICK, DOUGLAS C. : PLEAS OF CUMBERLAND HORICK, MARILYN SNYDER • COUNTY, PENNSYLVANIA BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, • DANIEL A. KUHN, DONNA LEE GOFF, : LEWIS G. KUHN, CAROLYN WAGNER,: -t - DORIS I. ERNST, AND JEAN M. ma) r ,-, HORICK, • W r , PLAINTIFFS • --<---- zr V. • > c? SANDRA L. McCORKEL, GREGORY • R. SWOPE, MEGAN SWOPE, AND JOHN D. SWOPE, DEFENDANTS • 12-2838 CIVIL TERM ORDER OF COURT Age AND NOW, this day of December, 2013, pursuant to the Memorandum Opinion of the Superior Court filed November 25, 2013, at 985 MDA 2012, and consistent with our previous findings, we GRANT the request of Plaintiffs for a preliminary injunction and further ORDER AND DIRECT as follows: 1. The Directors and Officers elected on April 25, 2012, (David J. Horick, Marilyn Snyder Budzynski, Donna Lee Goff, Sandra K. Kreider, Douglas C. Horick, Daniel S. Kuhn, and Richard Magee, Esquire), are authorized and directed to undertake the management of Penn Products Corporation; 2. Defendants are prohibited from acting on behalf of Penn Products Corporation; 3. All actions of the Defendants subsequent to the April 25, 2012 Annual Meeting of the Shareholders which purported to be on behalf of Penn 12-2838 CIVIL TERM Products Corporation are declared null and void unless ratified by the newly constituted Board of Directors; 4. Defendants shall deliver forthwith to the Directors and Officers of Penn Products Corporation all keys to corporate property, all corporate checkbooks and other financial accounts, all corporate records and the corporate seal; 5. Bond is continued at $1.00. Upon appropriate petition, the court will address a request for permanent injunctive relief. By the Court, 6:**214...C.°.( Albert H. Masland, J. Marvin Beshore, Esquire Luther E. Milspaw, Jr., Esquire 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 For Plaintiffs X/illiam Andring, Esquire 248 Creek Road Camp Hill, PA 17011 For Defendants :sal Co c Cs MI 1.1..Ect, «. alla -2- d PENN PRODUCTS CORPORATION, IN THE COURT OF COMMON PLEAS DAVID J. HORICK, DOUGLAS C. CUMBERLAND COUNTY, PENNSYLVANIA HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate : of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. n KUHN, CAROLYN WAGNER, DORIS 1. a ZZ w, ERNST, and JEAN M. HORICK, Civil Action—Equity � tom-= =rn Plaintiffs ' C-' -0fil V. a 'ZZCa c SANDRA L. McCORKEL, GREGORY R. No. 2838-Civil-2012 'z SWOPE,MEGAN SWOPE, and JOHN D. : mot can SWOPE, Defendants ANSWER TO DEFENDANTS' PRELIMINARY OBJECTIONS AND NOW come the Plaintiffs, by and through their attorney, Marvin Beshore,Esquire, and make the following Answer to the Defendants' Preliminary Objections. 1. Denied. To the contrary, Plaintiff filed a Verification to the Complaint by Praecipe on May 31, 2012. While Plaintiffs inadvertently failed to file the Verification when they filed the Complaint on May 7, 2012, no harm resulted from the failure to file the Verification with the Complaint and the subsequent filing cured the defect and rendered the issue moot. 2. Denied. It is specifically denied that the allegations of the complaint, particularly those contained in Paragraphs 19, 21, 22, 23, 45, 48, 50, 52, and 53, are false. Furthermore, whether allegations are true or false is a matter for trial, not a matter for preliminary objections. It is also specifically denied that the averments of the Complaint,particularly those contained in Paragraphs 19, 21, 22, 23, 45, 48, 50, 52, and 53, are scandalous. To the contrary, the averments of the Complaint, and the averments in those paragraphs in particular, lay out the background and factual basis of Plaintiffs' claims of breach of fiduciary duty by former officers and directors of I Penn Products Corporation. 3. It is admitted that the Complaint contains a request for a special, or preliminary, injunction, and that Plaintiffs have not filed a petition for such an injunction, but it is specifically denied that such a petition was legally necessary. By way of further Answer, it is averred that the Order of Superior Court of Pennsylvania entered November 25, 2013,which directed this Honorable Court to enter a preliminary injunction as requested in the Complaint confirms that no such petition was necessary. Finally, on December 2, 2013,this Honorable Court entered a Preliminary Injunction in compliance with the Order of the Superior Court,thereby rendering this issue moot. WHEREFORE, Plaintiffs request this Honorable Court to enter an Order which OVERRULES the Defendants' Preliminary Objections and directs the Defendants to file an Answer to the Complaint within twenty(20) days of the date of the Order. Respectfully submitted, 11A MWirtffeslXre, squire Attorney ID#PA 31979 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 (717)236-0781; Fax: (717)236-0791 Mbeshore @beshorelaw.com Attorney for Plaintiffs Dated: December 10, 2013 PENN PRODUCTS CORPORATION, IN THE COURT OF COMMON PLEAS DAVID J. HORICK, DOUGLAS C. CUMBERLAND COUNTY, PENNSYLVANIA HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate : of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER,DORIS I. ERNST, and JEAN M. HORICK, Civil Action—Equity Plaintiffs V. SANDRA L. McCORKEL, GREGORY R. No. 2838-Civil-2012 SWOPE,MEGAN SWOPE, and JOHN D. SWOPE, Defendants CERTIFICATE OF SERVICE I hereby certify that I served a true and correct copy of the above Answer to Defendants' Preliminary Objections upon all counsel/parties of record by depositing the same in the United States Mail, first class,postage prepaid, at Harrisburg, Pennsylvania, on the 10th day of December 2013, addressed as follows: William H. Andring, Esquire 248 Creek Road Camp Hill, PA 17011 VV � arvin Beshore, Esquire Attorney ID #PA 31979 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 717-236-0781, Fax: 717-236-0791 MBeshore @beshorelaw.com Attorney for Plaintiffs I t • superior Court of Veuugptbania Joseph D.Seletyn,Esq. Pennsylvania Judicial Center Prothonotary Middle District P.O.Box 62435 Mary A.Graybill,Esq. 601 Commonwealth Avenue,Suite 1600 Deputy Prothonotary Harrisburg,PA 17106-2435 (717)772-1294 www.pacourts.us/courts/supermr-court CERTIFICATE OF REMITTAL/REMAND OF RECORD TO: David D. Buell Prothonotary RE: Penn Products Corp. v. McCorkel, S. 985 MDA 2012 Trial Court: Cumberland County Court of Common Pleas Trial Court Docket No: 2838 Civil 2012 Annexed hereto pursuant to Pennsylvania Rules of Appellate Procedure 2571 and 2572 is the entire record for the above matter. Original Record contents: Item Filed Date Description Part August 24, 2012 1 Remand/Remittal Date: 01/02/2014 ORIGINAL RECIPIENT ONLY- Please acknowledge receipt by signing,dating,and returning the enclosed copy of this certificate to our office. Copy recipients (noted below) need not acknowledge receipt. Respectfully, Mary A. Graybill, Esq. Deputy Prothonotary y /alv rri0'3 rr Enclosure cc: William Hugh Andring, Esq. r Marvin Beshore, Esq. r- _ The Honorable Albert H. Masland, Judge t tJ,> I. Penn Products Corp. v. McCorkel, S. 985 MDA 2012 Letter to: Buell, David D. Acknowledgement of Certificate of Remittal/Remand of Record(to be returned): Signature Date Printed Name I � f�': PRAECIPE FOR LISTING CASE FOR ARGUMENT ? -11 (Must be typewritten and submitted in triplicate) —4 TO THE PROTHONOTARY OF CUMBERLAND COUNTY: (List the within matter for tl xt i p Argument Court.) gip , CAPTION OF CASE Q (entire caption must be stated in full) G? - s 7' 01 Penn Products Corporation, et al. vs. Sandra L. McCorkel, et al. No. 2012 2838 Term 1. State matter to be argued (i.e., plaintiff's motion for new trial, defendant's demurrer to complaint, etc.): Defendants'Preliminary Objections to the Complaint 2. Identify all counsel who will argue cases: (a) for plaintiffs: Marvin Beshore, Esq., P.O. Box 946, Harrisburg, PA 17108 (Name and Address) (b) for defendants: William Andring, Esq., 248 Creek Rd., Camp Hill, PA 17011 (Name and Address) 3. I will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: February 14,2014 .ign!ture AtAlbvia grFifestE Print your name Plaintiffs Date: January 7, 2014 Attorney for INSTRUCTIONS: 1. Original and two copies of all briefs must be filed with the COURT ADMINISTRATOR(not the Prothonotary) before argument. 2.The moving party shall file and serve their brief 14 days prior to argument. 3.The responding party shall file their brief 7 days prior to argument. 4. If argument is continued new briefs must be filed with the COURT ADMINISTRATOR(not the Prothonotary)after the case is relisted. t,40 ox4 %19.--6?ct a .. J IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PENN PRODUCTS CORPORATION, . DAVID J. HORICK, DOUGLAS C. Civil Action—Equity HORICK, MARILYN SNYDER . BUDZYNSKI, Executrix-DBN of the Estate of . Maybelle Asper, Deceased, DANIEL A. KUHN, . DONNA LEE GOFF, LEWIS G. KUHN, . CAROLYN WAGNER, DORIS I. ERNST, and . JEAN M. HORICK, . Plaintiffs No. 2012 - 2838 Civil Term • • v. . • SANDRA L. McCORKEL, GREGORY R. . SWOPE, MEGAN SWOPE, and JOHN D. . SWOPE, . Defendants . IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PENN PRODUCTS CORPORATION, • DAVID J. HORICK, DOUGLAS C. • Civil Action—Equity HORICK, MARILYN SNYDER • BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, • DONNA LEE GOFF, LEWIS G. KUHN, • CAROLYN WAGNER, DORIS I. ERNST, and • JEAN M. HORICK, • • Plaintiffs • No. 2012 - 2838 Civil Term • v. • • SANDRA L. McCORKEL, GREGORY R. • SWOPE, MEGAN SWOPE, and JOHN D. • SWOPE, • Defendants CERTIFICATE OF SERVICE I, Marvin Beshore, Esq.,hereby certify that I caused a true and correct copy of the foregoing Praecipe for Listing Case for Argument to be served on counsel for the Defendants, on this 7th day of January 2014 as follows: William Andring, Esq. 248 Creek Rd. Camp Hill, PA 17011 00076274.WPD;vl PENN PRODUCTS CORPORATION, : IN THE COURT OF COMMON PLEAS DAVID J. HORICK, DOUGLAS C. : CUMBERLAND COUNTY, HORICK, MARILYN SNYDER BUDZYNSKI,: PENNSYLVANIA Executrix DBN of the Estate of c) Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE : CIVIL ACTION, EQUITY rnW m GOFF, LEWIS G. KUHN, cn CAROLYN WAGNER • DORIS I. ERNST, and JEAN M. HORICK, • < ' PLAINTIFFS >(,-) v. SANDRA L. McCORKEL, GREGORY R. : SWOPE, MEGAN SWOPE, and JOHN D. : SWOPE, DEFENDANTS : 12-2838 CIVIL TERM IN RE: DEFENDANTS' PRELIMINARY OBJECTIONS TO PLAINTIFFS' COMPLAINT BEFORE HESS, P.J., MASLAND, J., AND PLACEY, J. ORDER OF COURT AND NOW, this day of March, 2014, upon consideration of Defendants' Preliminary Objections, the responses filed thereto, and after oral argument, the following is entered: 1. Defendants' Preliminary Objection that the complaint fails to conform to law or rule 'of court due to a lack of a verification is OVERRULED. 2. Defendants' Preliminary Objection that the complaint contains false and scandalous accusations is OVERRULED. 3. Defendants' Preliminary Objection that the complaint fails to conform to law or rule of court by failing to request a preliminary injunction is OVERRULED. 12-2838 CIVIL TERM 4. Defendants shall file an answer within twenty (20) days of the date of this order. XVIarvin Beshore, Esquire 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 For Plaintiffs Ai Mani And ring, Esquire 248 Creek Road Camp Hill, PA 17011 For Defendants Copies nal 3/4/IL/ By the Court, Albert H. Mas and, J. )- PENN PRODUCTS CORPORATION, : IN THE COURT OF COMMON PLEAS DAVID J. HORICK, DOUGLAS C. : CUMBERLAND COUNTY, HORICK, MARILYN SNYDER BUDZYNSKI,: PENNSYLVANIA Executrix DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE : CIVIL ACTION, EQUITY GOFF, LEWIS G. KUHN, CAROLYN WAGNER • DORIS I. ERNST, and JEAN M. HORICK, : PLAINTIFFS v. SANDRA L. McCORKEL, GREGORY R. : SWOPE, MEGAN SWOPE, and JOHN D. : SWOPE, DEFENDANTS : 12 -2838 CIVIL TERM IN RE: DEFENDANTS' PRELIMINARY OBJECTIONS TO PLAINTIFFS' COMPLAINT BEFORE HESS, P.J., MASLAND, J., AND PLACEY, J. OPINION AND ORDER OF COURT Masland, J., March 6, 2014:- - Before the court are the Preliminary Objections filed by Defendants, Sandra L. McCorkel, Gregory R. Swope, Megan Swope, and John D. Swope to the Complaint filed by Plaintiffs, Penn Products Corporation, et al. Following briefing by the parties and argument en banc, the Objections will be overruled in accordance with this opinion. Defendants' three Preliminary Objections to Plaintiffs' Complaint are 1) The complaint fails to conform to law or rule of court in that the complaint is not verified. 2) The complaint contains false and scandalous accusations in paragraphs 19, 21, 22, 23, 45, 48, 59, 52, and 53. .t, 12 -2838 CIVIL TERM 3) The complaint fails to conform to law or rule of court in that the complaint contains a request for a special or preliminary injunction, but no petition for such an injunction has ever been filed with the Court. The second and third Preliminary Objections will not be discussed as Defendants have abandoned those issues by failing to discuss them in their brief. See Cumberland County Rule of Court 1028(c)(6). The only remaining issue is whether Defendants' Preliminary Objection should be granted with respect to Plaintiffs' failure to properly file a verification. For the foregoing reasons, the Preliminary Objection is overruled as it is a de minimis technical error that fails to prejudice Defendants. The parties are all well aware of underlying facts and procedural history of this protracted litigation and therefore the court declines to recite those facts. Suffice to say, Plaintiffs omitted a verification from their initial Complaint which was filed on May 7, 2012. After realizing this omission, Plaintiffs filed a Praecipe to attach a verification on May 31, 2012. Defendants now object to the attempt to cure the deficient verification on the basis that the Praecipe was filed more than 20 days after the filing of the Complaint. As is often repeated by the court: The rules shall be liberally construed to secure the just, speedy and inexpensive determination of every action or proceeding to which they are applicable. The court at every stage of any such action or proceeding may disregard any error or defect of procedure which does not affect the substantial rights of the parties. Pa. R.C.P. No. 126. 12-2838 CIVIL TERM In Lewis v. Erie Insurance Exch., 421 A.2d 1214 (Pa. Super. 1980), our Superior Court found that in light of a Plaintiffs attempt to comply with the Rules, a deficient verification was "of a de minimis technical nature that did not prejudice the substantive rights of [the plaintiffr and accordingly declined to remand the case for that reason alone. Lewis, 421 A.2d at 1217. The court reaches the same result here. First, Defendants have failed to demonstrate any prejudice resulting from the roughly one week late verification. Second, and most importantly, it would be a ludicrous waste of judicial resources to dismiss the Complaint at this stage of the litigation. At this point, the parties are years deep into this case. To dismiss the Complaint now and restart the litigation at square one over a minor technicality would render the work of the parties' attorneys, the undersigned, and the Superior Court a nullity. In the absence of prejudice to the Defendants, that is a result the court cannot countenance. Accordingly, the Preliminary Objection will be overruled. AND NOW, this ORDER OF COURT day of March, 2014, upon consideration of Defendants' Preliminary Objections, the responses filed thereto, and after oral argument, the following is entered: 1. Defendants' Preliminary Objection that the complaint fails to conform to law or rule of court due to a lack of a verification is OVERRULED. 2. Defendants' Preliminary Objection that the complaint contains false and scandalous accusations is OVERRULED. 12-2838 CIVIL TERM 3. Defendants' Preliminary Objection that the complaint fails to conform to law or rule of court by failing to request a preliminary injunction is OVERRULED. 4. Defendants shall file an answer within twenty (20) days of the date of this order. By the Court, Albert H. Masland, J. Marvin Beshore, Esquire 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 For Plaintiffs William Andring, Esquire 248 Creek Road Camp Hill, PA 17011 For Defendants PENN PRODUCTS CORPORATION, : DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF : LEWIS G. KUHN, CAROLYN WAGNER, : DORIS I. ERNST, and JEAN M. HORICK, : Plaintiffs V. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE Defendants tl/J; 25 AN CL? LLitV3E L. A ND COLIN T PENNS YL VA NIA IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY PENNSYLVANIA CIVIL ACTION, EQUITY : No. 2838 CIVIL 2012 NOTICE TO PLEAD To: Penn Products Corporation David J. Horick, Douglas C. Horick, Marilyn Snyder Budzynski, Daniel A. Kuhn, Donna Lee Goff, Lewis G. Kuhn, Carolyn Wagner, Doris I. Ernst, and Jean M. Horick: You are hereby notified to file a written response to the enclosed New Matter within twenty (20) days from service hereof or a judgment may be entered against you. AM H. ANDRI G, ESQ. Attorney for Plaintiffs PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs V. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE Defendants : IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY : PENNSYLVANIA : CIVIL ACTION, EQUITY : No. 2838 CIVIL 2012 DEFENDANTS' ANSWER TO PLAINTIFFS' COMPLAINT AND NOW come Defendants, Sandra L. McCorkel, Gregory R. Swope, Megan Swope, and John D. Swope, by and through their attorney, William H. Andring, Esq., and file the within Answer to Defendants' Complaint. 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Admitted. 6. Admitted. 7. Admitted. 8. Admitted. 9. Admitted. 10. Admitted. 11. Admitted. 12. Admitted. 13. Admitted. 14. Admitted. 15. Admitted. 16. Admitted and Denied. It is admitted that the corporation sold land as indicated in the Complaint. It is denied that there was no communication or discussion regarding this sale or the proceeds of the sale among officers, directors and shareholders. 17. Admitted. 18. Admitted. 19. Denied. Paragraph 19 of the Complaint contains conclusions of law to which no responsive pleading is required. To the extent a responsive pleading is required, it is denied that the Defendants violated the provisions of 15 Pa.C.S. § 1728, breached any fiduciary duties, acted in any manner to the detriment of the shareholders, or acted in any manner which was not fair to the Corporation. 20. Admitted and Denied. It is admitted that the Corporation had cash and property as indicated. It is denied that "examination" of the books and records of the corporation reveal that the Corporation has never maintained such an amount of cash on hand or the amount of cash needed to operate by the Corporation. 21. Denied. It is denied that Defendant McCorkel has maintained any corporate funds in her own name. 22. Denied. It is denied that there was any plan to loot the corporation, and that funds were ever co- mingled. 23. Denied. It is denied that Defendants ever withheld information from shareholders, possessed any inside information, engaged in any self - dealing, or engaged in a breach of fiduciary duty. It is further denied that a "fair" value of the shares of the corporation was $120.00 per share. It is further denied that any defendant attempted to buy any shares at less than fair value. 24. Denied. Defendants have no idea of how any Plaintiff learned of the sale, and the allegation is therefore denied. 25. Admitted. 26. Admitted and denied. It is denied that the document attached to the Complaint is the Judge of Election's Report. The remainder of the paragraph is admitted. 27. Admitted. 28. Admitted. 29. Admitted. 30. Admitted. 31. Admitted. 32. Admitted. 33. Admitted. 34. Admitted. 35. Admitted. 36. Admitted and denied. It is denied that Defendant McCorkel ever designated Crady Swisher to be the judge of election, or that Plaintiff Budzynski could make a motion to nominate anyone to be the judge of elections. The remainder of the paragraph is admitted. 37. Denied. It is denied that Defendant McCorkel ever made Crady Swisher the judge of elections, or that any election was ever held. 38. Denied. Defendant McCorkel did not attempt to act in contravention of any law, but did attempt to recess the meeting until legal counsel could be present, and a judge of elections could be designated. 39. Denied. Defendant McCorkel informed those present that the meeting that the meeting would be adjourned until legal counsel and a judge of elections could be present. 40. Denied. There was no judge of elections. 41. Denied. There were no properly executed ballots, or judge of elections. 42. Denied. There was no valid election of directors, or meeting of directors. 43. Admitted and Denied. Plaintiffs maintained control of the assets of the corporation because there was no valid election of new officers or directors. 44. Admitted. 45. Denied. The defendants have never converted corporate assets to their benefit, drained corporate assets, acted wrongfully, violated any statute, or converted assets of the corporation. 46. Admitted and denied. It is admitted that Douglas Miller, Esq., sent the letter referred to in this paragraph. The remainder of the paragraph is denied. The letter evidences Defendants intent to fulfill their obligations to the corporation, and conduct valid elections. 47. Denied. There is no valid new board. 48. Denied. This paragraph contains conclusions of law to which no responsive pleading is required. To the extent a responsive pleading is required, it is denied that Defendants have caused, or would cause, any harm to the corporation by their actions. 49. Denied. This paragraph contains conclusions of law to which no responsive pleading is required. To the extent a responsive pleading is required, it is denied that there has been any plundering of the corporation, or that there are any new directors of officers. 50. Denied. This paragraph contains conclusions of law to which no responsive pleading is required. To the extent a responsive pleading is required, it is denied that there has been any plundering of the corporation, or that there are any new directors of officers. 51. Denied. This paragraph contains conclusions of law to which no responsive pleading is required. 52. Denied. This paragraph contains conclusions of law to which no responsive pleading is required. 53. Denied. This paragraph contains conclusions of law to which no responsive pleading is required. NEW MATTER 54. It is believed and therefore averred that prior to April 25, 2012, Plaintiff Horick conceived a plan to take control of Penn Products Corporation, for his own benefit. 55. As a part of his plan, Defendant Horick retained Attorney Marvin Beshore to represent him. 56. As a part of his plan, and to secure their support, Defendant Horick and /or Attorney Beshore contacted the other Plaintiffs in this case, and conveyed to them false and malicious claims that the Defendants were plundering the corporation, misappropriating funds of the corporation, and otherwise engaging in criminal behavior. 57. Prior to the shareholders meeting on April 25, 2012, the defendants held a meeting at which they made plans to disrupt the meeting and take control of the corporation. 58. At the shareholders meeting, the Defendants did disrupt the meeting, take control, and conduct an improper meeting, not in accordance with law or the corporation's bylaws. 59. As a part of their plans, the Defendants purported to nominate Crady Swisher as the judge of elections. 60. After receiving notice that the shareholders meeting would be reconvened and conducted in a proper manner, Defendants filed the present action to prevent the meeting from being reconvened and conducted properly, in accordance with law and the bylaws of the corporation. 61. In order to prevent the shareholders meeting from being reconvened, the Plaintiffs filed the Complaint in the present action, containing false and malicious claims that the Defendants were plundering the corporation, misappropriating funds of the corporation, and otherwise engaging in criminal behavior. 62. The Plaintiffs have acted with unclean hands, and are thus not entitled to any equitable refief WHEREFORE, Defendants request this Honorable Court to dismiss the Complaint. Respectfully submitted, 'am H. Andring, Esq. Attorney for Defendants 248 Creek Road Camp Hill, PA 17011 (717) 975-8796 PENN PRODUCTS CORPORATION, Plaintiff v. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY : PENNSYLVANIA : CIVIL ACTION - LAW • : No. 4949 CIVIL 2012 : JURY TRIAL DEMANDED VERIFICATION I hereby affirm that the statements contained in the attached document are true and correct, to the best of my knowledge, information and belief I understand that false statements therein are made subject to the penalties of 18 Pa.C.S. §4904, relating to unsworn falsification to authorities. PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs V. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY : PENNSYLVANIA : CIVIL ACTION, EQUITY : No. 2838 CIVIL 2012 CERTIFICATE OF SERVICE I, William H. Andring, Esq., hereby certify that on this, the 26th day of March, 2014, I served a copy of the attached document by causing it to be deposited in the United States Mail, First Class Postage prepaid, addressed as follows: Marvin Beshore, Esquire 130 State St., P.O. Box 946 Harrisburg, PA 17108-0946 QJ IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix -DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, v. Civil Action — Equity Plaintiffs No. 2012 - 2838 SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE, Defendants Judge Masland -i PLAINTIFFS' REPLY TO NEW MATTER NOW COME Plaintiff through their Attorney, Marvin Beshore, Esquire, and Reply to Defendants' New Matter as follows: 54. It is specifically denied that prior to April 25, 2012, either Plaintiff David Horick or Plaintiff Douglas Horick planned to take control of Penn Products Corporation for his own benefit. 55. It is admitted that prior to April 25, 2012, Plaintiff David Horick, Plaintiff Douglas Horick, and others retained Attorney Marvin Beshore, but it is specifically denied that such representation was a part of a plan to take control of Penn Products Corporation for Mr. Horick's own benefit. 56. It is specifically denied that either Plaintiff Douglas Horick, Plaintiff David Horick, or Attorney Beshore conveyed false and malicious claims that the Defendants were plundering the corporation, misappropriating funds of the corporation, and otherwise engaging in criminal behavior. 57. It is specifically denied that Plaintiffs ever planned to disrupt the shareholders' meeting of April 25, 2012. In all other ways, the averments of Paragraph 57 are admitted. 58. The averments of Paragraph 58 are admitted. By way of further answer, however, it is specifically denied that Plaintiffs disrupted the April 25, 2012, shareholders' meeting. To the contrary, Plaintiffs attempted to ensure that the meeting proceeded legally and pursuant to the Bylaws of Penn Products Corporation, despite the Defendants efforts to disrupt the meeting. 59. It is admitted that Crady Swisher was made judge of elections at the April 25, 2012 shareholder's meeting. 60. It is specifically denied that Defendants filed the present action. By way of further answer, it is specifically denied that Plaintiffs filed the present action for any improper purpose. Plaintiffs filed the present action to assure that governance of Penn Products Corporation proceeded pursuant to controlling law, the corporation's Bylaws, and the directions a majority of the shareholders. 61. Paragraph 61 contains conclusions of law to which no answer in necessary. By way of further answer, however, the Answer to Paragraph 60, above, is incorporated by reference as if fully set forth here. By way of further answer, Plaintiff assert that the Complaint is a writing, which speaks for itself and specifically deny that the Complaint in the present action contains false and malicious claims that the Defendants were plundering the corporation, misappropriating funds fo the corporation, and otherwise engaging in criminal behavior. 62. Paragraph 62 states a conclusion of law to which no answer is necessary. To the extent that an answer is deemed to be necessary, Plaintiffs specifically deny that they have acted with unclean hand and are not entitled to equitable relief. WHEREFORE, Plaintiffs further request this Honorable Court to enter a Permanent Injunction, following any requisite hearing, that does the following until further order of this Court: 1. Enjoins the purported "Resumption of Annual Meeting of Stockholders" that was noticed for May 10, 2012; 2. Prohibits Defendants from acting on behalf of the Corporation; 3. Prohibits Defendants from accessing any and all financial accounts of the Corporation, including, but not limited to checking accounts at M &T Bank, checking accounts at Adams County National Bank, and investment accounts at Charles Schwab & Co., Inc. 4. Validates the results of the election held on April 25, 2012; and 5. Places management of the Corporation in the hands of the Directors and Officers elected on April 25, 2012, i.e., David J. Horick, Douglas C. Horick, Daniel A. Kuhn, Marilyn Snyder Budzynski, Donna Lee Goff, Sandra K. Kreider, and Richard Magee, until the next election of Directors; and, 6. Grant such other and further relief as the Court may deem just and proper. Respectfully submitted, /114/ r %44/ rarvin Beshore, Esquire Attorney ID # PA 31979 130 State Street Harrisburg, PA 17108 -0946 717 - 236 -0781, Fax: 717 - 236 -0791 Attorney for Plaintiffs PENN PRODUCTS CORPORATION, : IN THE COURT OF COMMON PLEAS ET AL., : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs v. Civil action - Equity SANDRA L. McCORKEL, ET AL. No. 2012 - 2838 Defendants Judge Masland VERIFICATION I, David Horick, a plaintiff in the above captioned action and President of Penn Products Corporation, hereby verify that the factual averments in the foregoing Plaintiffs' Reply to New Matter are true and correct to the best of my knowledge, information, or belief. This Verification is made subject to the penalties of 18 Pa.C.S. 4904 related to unworn falsifications to authorities. 00080361.WPD; v1 PENN PRODUCTS CORPORATION, : IN THE COURT OF COMMON PLEAS ET AL., : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs v. SANDRA L. McCORKEL, ET AL. Defendants Civil action - Equity No. 2012 - 2838 Judge Masland CERTIFICATE OF SERVICE I hereby certify that I served a true and correct copy of the foregoing Plaintiffs' Reply to New Matter upon all counsel /parties of record by depositing the same in the United States Mail, first class, postage prepaid, at Harrisburg, Pennsylvania, on the 14th day of April 2014, addressed as follows: William Andring, Esquire 248 Creek Road Camp Hill, PA 17011 TARA L. WARTZ Paralega o Marvin Beshore, Esquire 131 ' ate Street Harrisburg, PA 17108 -0946 Marvin Beshore, Esquire Attorney ID No. 31979 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 (717) 236-0781 FAX (717) 236-0791 Email: Mbeshore@beshorelaw.com PENN PRODUCTS CORPORATION, : IN THE COURT OF COMMON PLEAS ET AL. :. CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs v. Civil action - Equity SANDRA L. McCORKEL, ET AL. No. 2012 - 2838 Civil Term Defendants Judge Masland z CO CD CD• S; -c PRRAECIPE FOR PRE-TRIAL CONFERENCE TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Pursuant to Cumberland County Rule 1502.1, please have a Pre -Trial Conference scheduled in this matter at the Court's earliest convenience. Dated: June 18, 2014 Respe 4 ' ly submitted, 00083645.WPD; vl eshore, Esquire Attorney ID # PA 31979 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 717-236-0781, Fax: 717-236-0791 MBeshore@beshorelaw.com PENN PRODUCTS CORPORATION, : IN THE COURT OF COMMON PLEAS ET AL. : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs v. Civil action - Equity SANDRA L. McCORKEL, ET AL. No. 2012 - 2838 Civil Term Defendants Judge Masland CERTIFICATE OF SERVICE I hereby certify that I served a true and correct copy of the foregoing Praecipe for Pre -Trial Conference upon all counsel/parties of record by depositing the same in the United States Mail, first class, postage prepaid, at Harrisburg, Pennsylvania, on the 18th day of June 2014 addressed as follows: William Andring, Esquire 248 Creek Road Camp Hill, PA 17011 arvi Beshore, squire Attorney for Plaintiffs 00083645.WPD; vl PENN PRODUCTS CORPORATION, : IN THE COURT OF COMMON PLEAS ET AL. : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs v. Civil action - Equity SANDRA L. McCORKEL, ET AL. No. 2012 - 2838 Civil Term Defendants Judge Masland ORDER SCHEDULING PRE-TRIAL CONFERENCE AND NOW, this day of , 2014, upon request of Plaintiffs, a Pre -Trial Conference in this case is scheduled for ) 30 o'clock, r .m. on , 2014, before the Honorable Albert H. Masland, Judge, in Chambers. All counsel must be present. By the Court Albert H. Masland, Judge 114.4.. 1;4 /' W . ApcidLA-,, M 00083668.WPD; vl C7 rn CA7 (J0 i C.-_. C.) C+) PENN PRODUCTS CORPORATION, . DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix DBN of the • Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF : LEWIS G. KUHN, CAROLYN WAGNER, : DORIS I. ERNST, and JEAN M. HORICK, : Plaintiffs v. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and : No. 2838 CIVIL 2012 JOHN D. SWOPE Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY PENNSYLVANIA CIVIL ACTION, EQUITY PETITION FOR TRIAL BY JURY C") G -r CO 77° rn -0 rn cls z- 4 cD r o z 437 AND NOW come Defendants, Sandra L. McCorkel, Gregory R. Swope, Megan Swope, and John D. Swope, by and through their attorney, William H. Andring, Esq., and file the within Petition for Trial by Jury. 1. Pa.R.C.P. 1038.3 provides that in any case in which there is a claim for equitable relief, the Court may, upon petition of any party, submit to trial by jury any or all issues of fact arising from that claim. 2. On May 14, 2012, the Court in the present action conducted a hearing on the Plainitffs' request for a preliminary injunction. However, after conducting the hearing, the Court on May 15 improperly issued a final adjudication, including a final adjudication of all factual issues, and a permanent injunction. 3. The Pennsylvania Superior Court, at No. 985 MDA 2012, reversed the judgment of this Court, vacated the Order issued by this Court on May 15, 2012, and remanded the matter to this Court for further proceedings. 4. In its Opinion of May 15, this Court specifically stated that the Plaintiffs had established their entitlement to permanent injunctive relief, an issue which was not before the Court at that time, but is to be determined by the Court in the hearing pending before the Court. 5. Under the circumstances enumerated in Paragraphs 1-4 hereof, it is not possible for this Court to conduct a fair and impartial hearing and enter an adjudication involving factual issues when it has already pre judged these issues and entered a final adjudication. 6. Submitting all factual issues in the present action to a jury would provide Defendants with a fair and impartial hearing before fact finders who have not pre judged the evidence or the credibility of witnesses, and already rendered a final adjudication. 7. Failure to submit factual issues to a jury in the present matter would deprive Defendants of their right to due process and equal protection of the law under the Constitution of the United States and the Pennsylvania Constitution. It would also deprive Defendants of their rights to present their case before a fair and impartial fact finder. WHEREFORE, Defendants request this Honorable Court to grant the Petition for Trial by Jury. Respectfully submitted, William }{. dring, Esq. Attorney for Defendants 248 Creek Road Camp Hill, PA 17011 (717) 975-8796 PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix DBN of the Estate of Maybelle Asper, Deceased, : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY : PENNSYLVANIA : CIVIL ACTION, EQUITY DANIEL A. KUHN, DONNA LEE GOFF : LEWIS G. KUHN, CAROLYN WAGNER, : DORIS I. ERNST, and JEAN M. HORICK, : Plaintiffs v. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE Defendants : No. 2838 CIVIL 2012 CERTIFICATE OF SERVICE I, William H. Andring, Esq., hereby certify that on this, the 4th day of August, 2014, I served a copy of the attached document by causing it to be deposited in the United States Mail, First Class Postage prepaid, addressed as follows: Marvin Beshore, Esquire 130 State St., P.O. Box 946 Harrisburg, PA 17108-0946 PENN PRODUCTS CORPORATION, : IN THE COURT OF COMMON DAVID J. HORICK, DOUGLAS C. : PLEAS OF CUMBERLAND HORICK, MARILYN SNYDER : COUNTY, PENNSYLVANIA BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, : DANIEL A. KUHN, DONNA LEE GOFF, : LEWIS G. KUHN, CAROLYN WAGNER,: DORIS I. ERNST, AND JEAN M. HORICK, PLAINTIFFS V. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, AND JOHN D. SWOPE, DEFENDANTS : 12-2838 CIVIL TERM ORDER OF COURT AND NOW, this / / %. day of August, 2014, upon consideration of Defendants' Petition for Trial by Jury a Rule is issued on Plaintiffs to show cause why the relief requested should not be granted. This Rule is returnable twenty (20) days from service. ✓Marvin Beshore, Esquire 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 For Plaintiffs illiam Andring, Esquire 248 Creek Road Camp Hill, PA 17011 For Defendants :sal Co?i'es6a/.26//y By the Court, Albert H. Masland, J. c) l'---, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSi5TAN1A TriCl) r '-'1;-::- = o PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. Civil Action - Equity --‹ -- r-,,— z- HORICK, MARILYN SNYDER •(---) 7 LI) -I- - -..: BUDZ YN S KI, Executrix-DBN of the Estate of c.:i F,-,) c.:) f.,. -------- ...., Maybelle Asper, Deceased, DANIEL A. KUHN,.z.: --i c.....) DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, Plaintiffs No. 2012 - 2838 Civil Term V. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE, Defendants PLAINTIFFS' ANSWER TO DEFENDANTS' PETITION FOR TRIAL BY JURY Plaintiffs, by their attorney, Marvin Beshore, Esquire, answer Defendants' Petition for Trial by Jury as follows: 1. Denied as stated. Rule 1038.3 speaks for itself. Furthermore, the Rule does not require a jury trial; instead, there "may" be a jury trial of specific issues and any jury verdict rendered pursuant to Rule 1038.3 is merely "advisory" and is not "binding upon the court." In an equity matter, such as this, there is no right to a trial by jury. See Rosenberg v. Rosenberg, 419 A.2d 167 (Pa. Super 1980); Constitution of the Commonwealth of Pennsylvania, Art. I, Sec. 6. Moreover, in an equity matter, the Court does not abuse its discretion by concluding that the issues "would best be resolved by a Chancellor sitting without a jury," and, therefore, denying a request for a jury trial. See Sullivan v. Bucks County, 499 A.2d 678, 691 n.25 (Pa. Cmwlth. 1985). In this case, the issues would best be resolved by the Chancellor who heard the evidence 1 and observed the witnesses when events were fresh in their minds, instead of two years later when memories have faded. 2. It is admitted that the court issued what it termed a "permanent injunction." It is specifically denied that the court issued "a final adjudication of all factual issues." 3. Denied as stated. It is admitted that the Defendants appealed to the Superior Court. The Superior Court's Order speaks for itself. Furthermore, the Superior Court did not reject any of the court's findings of fact. While the Superior Court "vacated" the "permanent injunction," directed the Court of Common Pleas to issue a "preliminary injunction consistent with its findings of fact." 4. It is specifically denied that the Court of Common Pleas issued an "Opinion of May 15" in this case and the Court's Order of May 15, 2012, contained no such statement.' 5. It is specifically denied that the Court has "already pre -judged" the issues now before it and it is specifically denied that the Court "cannot conduct a fair and impartial hearing and enter an adjudication involving factual issues" now before it. To the contrary, the Court of Common Pleas issued its Order of May 15, 2012, based on the evidence presented on May 14, In its Opinion Pursuant to Pa. R.A.P. 1925 dated August 24, 2012, the Court of Common Pleas stated, inter alia, "Of course, the question remains whether the relief granted should have been temporary or permanent. In the case at hand, with the nature of the relief requested, we submit this is a distinction without a difference. Plaintiffs established their entitlement to relief under the standards for both preliminary and permanent injunctive relief. Once the court confirmed the election of the new directors, the balance of the relief requested was not only logical but was of pure necessity." Penn Products Corp., et al. v. McCorkel, et al., Court of Common Pleas of Cumberland County, Pa. No. 12-2838 — Civil Term, In re: Opinion Pursuant to Pa. R.A,P. 1925, at 12 (August 24, 2012). While Plaintiffs recognize Defendants' right to a second hearing and to present evidence not presented during the hearing on May 14, 2012, Plaintiffs contend that the subsequent history of this case supports the Court's statement. Superior Court did not find lack of support for any of this Court's findings of fact, but directed the Court to enter a Preliminary Injunction consistent with those findings. Defendants have sought no discovery since the Superior Court sent the case back to this Honorable Court. Defendants have not asked the Court to dissolve, or modify, the Preliminary Injunction, as they could have done pursuant to Pa.R.Civ.P. 1531(c). 2 2012. Plaintiffs are confident that the Court can and will dutifully and without prejudice consider any additional evidence presented to it and render its findings of fact and conclusions of law on the entire record before it. 6. Denied. Pursuant to Rule 1038.3, fact finding by a jury is purely advisory and is not binding on the Court. The Chancellor is the ultimate fact finder. Furthermore, requiring submission of all evidence to a jury would substantially waste the resources of both the court and the parties by necessitating a replay of the six hour hearing conducted on May 14, 2012. Moreover, after the two year delay brought about by Defendants' failure and refusal to ask the Court to correct its May 15, 2012, Order before appealing to Superior Court, memories will have faded and will be less accurate than they were on May 14, 2012, only three weeks after the April 25, 2012, stockholders' meeting that is the subject to this action. 7. It is specifically denied that "Failure to submit factual issues to a jury in the present matter would deprive Defendants of their right to due process and equal protection of the law under the Constitution of the United States and the Pennsylvania Constitution." Defendants cite no authority to support this assertion and, to the contrary, it is settled that equity actions are heard by courts, not by juries, every day throughout the United States. Grant, or denial, of a preliminary injunction has no effect on the grant or denial of a permanent injunction. See Soja v. Factoryville Sportsmen's Club, 361 Pa. Super. 522 A.2d 1129, 1131 (Pa. Super. 1987) (Determination of whether to grant a permanent injunction "is independent of the court's prior determination as to the plaintiffs right to preliminary relief."). In Soja, the Superior Court noted, 3 After a preliminary injunction is awarded or denied, the case proceeds for a disposition on the merits. If the plaintiff is requesting permanent injunctive relief, the case is governed by the rules controlling actions in equity. See Pa. R.C.P. 1517. At any time prior to the final disposition of the matter, either party may request that the preliminary injunction be modified or dissolved. See Pa. R.C.P. 1531. Often, one of the terms in the preliminary decree is a provision requiring speedy disposition of the case on its merits. See 15 Standard Pa. Practice § 83:184. This final disposition is independent of the court's prior determination as to the plaintiffs right to preliminary relief. The denial of a preliminary injunction does not foreclose an order for a permanent injunction. This result is logical because, as noted, the plaintiffs right to preliminary relief is based on the imminence of irreparable harm. However, a court may issue a final injunction if such relief is necessary to prevent a legal wrong for which there is no adequate redress at law. Fox -Morris Associates, Inc. v. Conroy, 460 Pa. 290, 294, 333 A.2d 732, 734 (1975) (Roberts, J., concurring). Id. Plaintiffs, furthermore, specifically deny that failure to submit factual issues to a jury "would also deprive Defendants of their rights to present their case before a fair and impartial fact finder," and Plaintiffs assert that the aspersions cast on this Court's integrity are baseless. WHEREFORE, Plaintiffs request this Honorable Court to Deny Defendants' Petition for a Trial by Jury. Dated: September 2, 2014 Respct fly submitted, arvi Beshore, Esquire ttorn y ID # PA 31979 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 717-236-0781, Fax: 717-236-0791 MBeshore@beshorelaw.com IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, v. Civil Action — Equity • • • • • • Plaintiffs No. 2012 - 2838 Civil Term SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. S WOPE, Defendants CERTIFICATE OF SERVICE I hereby certify that I served a true and correct copy of the above Plaintiffs' Answer to Defendants' Petition for Trial by Jury upon all counsel/parties of record by depositing the same in the United States Mail, first class, postage prepaid, at Harrisburg, Pennsylvania, on the 2°d day of September 2014, addressed as follows: William Andring, Esquire 248 Creek Rd. Camp Hill, PA 17011 Respec fully submitted, TARA L. SWARTZ Parale1 to Marvin Beshore, Esquire ''-'1-30--g-tate Street, P.O. Box 946 Harrisburg, PA 17108-0946 PENN PRODUCTS CORPORATION, : IN THE COURT OF COMMON DAVID J. HORICK, DOUGLAS C. : PLEAS OF CUMBERLAND HORICK, MARILYN SNYDER : COUNTY, PENNSYLVANIA BUDZYNSKI, Executrix-DBN of the Estate of MaybeIle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, . LEWIS G. KUHN, CAROLYN WAGNER,: DORIS I. ERNST, AND JEAN M. HORICK, PLAINTIFFS V. SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, AND JOHN D. SWOPE, DEFENDANTS : 12-2838 CIVIL TERM ORDER OF COURT AND NOW, this ;74/ day of September, 2014, upon consideration of Defendants' Petition For Trial By Jury and Plaintiffs' Answer thereto, that Petition is DENIED. By the Court, Albert H. Masland, J. Mn Beshore, Esquire 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 For Plaintiffs Iiam Andring, Esquire 248 Creek Road Camp Hill, PA 17011 For Defendants :sal Co i'es. Viy ,.— FILED—OFFICE /. 'J! In HE Pi�C iI U[ VARY PRAECIPE FOR LISTING CASE FOR NON JURYiTRIAtr _, (Must be typewritten and submitted in tri lic'ate iEAL,; l'IJ COUIf y TO THE PROTHONOTARY OF CUMBERLAND COUNTY Please list the following case for a TRIAL WITHOUT A JURY. CAPTION OF CASE (entire caption must be stated in full} PENN PRODUCTS CORPORATION, ET AL. (Plaintiff) vs. SANDRA L. McCORKEL, ET AL. (Defendant) vs. (check one) ❑ Civil Action — Law ['Appeal from arbitration El Equity (other) No. 2838 -- 2012 Indicate the attorney who will try case for the party who files this praecipe: Marvin Beshore, Esq., 130 State St., Harrisburg, PA 17101; 717-236-0781 Civil Term Indicate trial counsel for other parties if known: For all Defendants: William H. Andring, Esq., 248 Creek Road, Camp Hill, PA 17011; 717-975-8796 This case is ready for trial. Signed: Print Name. 6Ait arvin Beshore, Esq. Date: December 3, 2014 Attorney for: Plaintiffs C9c,� 031)90 Z4f- 31u�s9 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PENN PRODUCTS CORPORATION, DAVID J. HORICK, DOUGLAS C. HORICK, MARILYN SNYDER BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, DANIEL A. KUHN, DONNA LEE GOFF, LEWIS G. KUHN, CAROLYN WAGNER, DORIS I. ERNST, and JEAN M. HORICK, v. Civil Action — Equity Plaintiffs No. 2012 - 2838 Civil Term SANDRA L. McCORKEL, GREGORY R. SWOPE, MEGAN SWOPE, and JOHN D. SWOPE, Defendants CERTIFICATE OF SERVICE I hereby certify that I served a true and correct copy of the foregoing Praecipe for Listing Case for Non Jury Trial upon all counsel/parties of record by depositing the same in the United States Mail, first class, postage prepaid, at Harrisburg, Pennsylvania, on the 3rd day of December 2014, addressed as follows: William Andring, Esquire 248 Creek Rd. Camp Hill, PA 17011 Respectfully submitted, in Beshor-, Esq. PENN PRODUCTS CORPORATION, : IN THE COURT OF COMMON DAVID J. HORICK, DOUGLAS C. : PLEAS OF CUMBERLAND HORICK, MARILYN SNYDER : COUNTY, PENNSYLVANIA BUDZYNSKI, Executrix-DBN of the Estate of Maybelle Asper, Deceased, : c-, DANIEL A. KUHN, DONNA LEE GOFF, : �+ LEWIS G. KUHN, CAROLYN WAGNER,: f .,, DORIS I. ERNST, AND JEAN M. : r '; :='c , HORICK, �, GO -4(' PLAINTIFFS -v cz -c-, Z C�1_' 3> -, SANDRA L. McCORKEL, GREGORY : R. SWOPE, MEGAN SWOPE, AND : JOHN D. SWOPE, DEFENDANTS : 12-2838 CIVIL TERM ORDER OF COURT AND NOW, this day of January, 2015, IT IS ORDERED AND DIRECTED that a pretrial conference is scheduled for Tuesday, March 3, 2015, at 8:30 a.m., in chambers. Pretrial memorandums shall be submitted pursuant to Cumberland County Local Rule. IT IS FURTHER ORDERED AND DIRECTED that a non -jury trial shall commence on Wednesday, April 15, 2015, at 8:30 a.m., in Courtroom Number 1, Cumberland County Courthouse, Carlisle, Pennsylvania. By the Court, "Marvin Beshore, Esquire 130 State Street, P.O. Box 946 Harrisburg, PA 17108-0946 For Plaintiffs 12-2838 CIVIL TERM William Andring, Esquire 248 Creek Road Camp Hill, PA 17011 For Defendants Court Administrator -.-j(; k i :sayl n rES /Y24121 / I