HomeMy WebLinkAbout05-6162
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MICHAEL R. GRECO, ESQUIRE
FRANCIS X. RILEY, ESQUIRE
MATTHEW M. HAAR, ESQUIRE
SAUL EWING LLP
Atty. 10 No. 78426, 74075 & 85688
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
Attorneys for Plaintiff
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REALTOR, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs.
ADA GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
JEFFREY GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
417 Phoenix Drive
Chambersburg, Pennsylvania 1720 I
Defendants.
NOTICE TO DEFEND
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No. 05- M(,,) 0, ~ ~ L !-82.. t
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YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth
in the following pages, you must take action within TWENTY (20) days after the complaint and
notice are served, by entering a written appearance personally or by attorney and filing in writing
with the court your defenses or objections to the claims set forth against you. You are warned
that if you fail to do so the case may proceed without you and a judgment may be entered against
you by the court without further notice for any money claimed in the complaint or for any other
claim or relief requested by the plaintiff. You may lose money or property or other rights
important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF
YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE
THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP.
CUMBERLAND COUNTY BAR ASSOCIATION
2 Liberty Avenue
Carlisle, Pennsylvania 17013
(717) 249-3166
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MICHAEL R. GRECO, ESQUIRE
FRANCIS X. RILEY, ESQUIRE
MATTHEW M. HAAR, ESQUIRE
SAUL EWING LLP
Atty. ID No. 78426, 74075 & 85688
Penn National Insurance Plaza
2 North Second Street, 7'h Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
Attorneys for Plaintiff
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REALTOR, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs.
ADA GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
JEFFREY GEORGE
720 Franklin Square Drive
Chambers burg, Pennsylvania 1720 I,
and
PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
417 Phoenix Drive
Chambersburg, Pennsylvania 17201
Defendants.
COMPLAINT
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No. 05- '1t;.>:V
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Plaintiff, Jack Gaughen Realtor, ERA ("Plaintiff'), by and through its undersigned
attorneys, hereby files this Complaint commencing this civil action seeking (i) injunctive relief;
(ii) a constructive trust; (iii) a judgment for monetary damages, (iv) a judgment for punitive
damages, and (v) attorneys' fees and costs as permitted by law. In support thereof, Plaintiff avers
as follows:
THE PARTIES
1. Plaintiff is a Pennsylvania corporation maintaining its offices at 3915 Market Street,
Camp Hill, Cumberland County, Pennsylvania 17011.
2. Defendant Ada George ("Mrs. George"), is a former Manager and key employee of
Plaintiffs Chambersburg office. Upon information and belief, Mrs. George is a citizen of the
Commonwealth of Pennsylvania, residing at 720 Franklin Square Drive, Chambers burg,
Pennsylvania 1720 I.
3. Defendant Jeffrey George ("Mr. George"), is a former salesperson and pnor
independent contractor of Plaintiff in its Chambers burg office. Upon information and belief, Mr.
George is a citizen of the Commonwealth of Pennsylvania, residing at 720 Franklin Square
Drive, Chambers burg, Pennsylvania 1720 I.
4. Defendant Preferred Realty, LLC, d/b/a Exit Preferred Realty ("Preferred"), on
information and belief, is a Pennsylvania limited liability company doing business m
Pennsylvania through an office located at either 417 Phoenix Drive, Chambersburg,
Pennsylvania 1720 I or 785 5th Avenue, Chambers burg, Pennsylvania 1720 I.
VENUE
5.
Venue is proper in Cumberland County pursuant to Pa. R.C.P. 1006 because this
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action arises out of events substantially occurring in Cumberland County.
FACTS COMMON TO ALL COUNTS
The Parties.
6. Plaintiff is engaged in business as a Real Estate Broker and is duly licensed to
engage in the activities of a Broker as defined by the Pennsylvania Licensing and Registration
Act, Act of February 19, 1980, P.L. 15, No.9, as amended.
7. Plaintiff is a wholly owned subsidiary of NRT Inc., which in turn is a wholly
owned subsidiary of Cendant Corporation ("Cendant"). Accordingly, based upon this corporate
structure, Cendant's policies apply to all of Plaintiffs employees and independent contractors.
8. Defendants Mr. and Mrs. George are, and at all times relevant to the averments
contained herein, were, husband and wife.
Mrs. Georl!:e's Emolovment With, and Contractual Oblil!:ations to, Plaintiff.
9. Mrs. George is the former Manager for Plaintiffs Chambersburg office.
10. Mrs. George agreed to abide by the company's policies manual by executing an
Acknowledgement Form subsequently delivered to Plaintiff in Cumberland County that provides
in pertinent part as follows:
This is to acknowledge that I have received a copy of the Cendant
Core Policies Manual and understand that it contains important
information on the Company's general personnel policies and on
my privileges and obligations as an employee.
I acknowledge that I am expected to read, understand, and
adhere to the Company policies and will familiarize myself
with the material in this manual.
(emphasis added). A true and correct copy of the provisions of the company's policies manual
applicable to the allegations contained herein and the Acknowledgement Form executed by Mrs.
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George is attached hereto, made a part hereof, and marked as Exhibit "A".
11. Paragraph 3(a) and (b) of the company's policies manual contains Mrs. George's
agreement that she owes a duty of loyalty to Plaintiff and outlines her obligation to avoid
conflicts of interest:
3. Conflicts of InterestfDuty of Loyalty
a. All employees occupy a position of trust with the Company and,
as a result, have a duty ofloyalty to the Company. Each employee
therefore must ensure that he or she is free from the influence of
any conflicting interests when he or she represents the Company in
negotiations or makes recommendations with respect to dealings
with third parties. A conflict of interest is any circumstance that
could cast doubt on an employee's ability to act totally objectively
regarding the Company's interest or any situation which benefits
the individual to the detriment of the Company. Employees are
expected to deal with suppliers, clients, contractors and all others
doing business with the Company on the sole basis of what is in
the best interest of the Company, without favor or the preference to
third parties based on personal consideration. A voiding the
appearance of a conflict can be just as important as avoiding an
actual conflict. For that reason, relationships involving an
employee's immediate family may also be relevant. Therefore,
each employee must disclose any actual or potential conflicts of
interest to his or her supervisor or the Company representative to
whom he or she reports prior to representing the Company in either
negotiations or recommendations with respect to dealings with
third parties.
b. Each employee must be sure that any outside financial or
business interest - either as investments to operating businesses -
does not conflict with his or her obligations to the Company.
Because of the nature of the Company's business, employees are
expressly prohibited from having any ownership interest in or
management responsibilities of any company related to any
Cendant's businesses.
See Exhibit A at ~ 3(a) and (b).
12.
Paragraph 3(d) of the company's policies manual contains Mrs. George's agreement
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not to solicit Plaintiff's clients, suppliers, and employees away from Plaintiff:
d. An employee shall not solicit away from the Company, either
directly, indirectly or through another or subsequent employer or
other third party, any clients, suppliers, or employees within the
geographic or other assigned territory or business operation for
which such employee is responsible regardless of whether such
clients or suppliers were directly serviced by that employee. Each
employee shall be bound by this prohibition against solicitation of
clients or suppliers during the term of his or her employment or
engagement with the Company and for the one year period
following his or her termination of employment or engagement
with the Company. An employee who has terminated his or her
employment or engagement with the Company should inform any
Company competitor with which he or she is subsequently
employed, engaged or otherwise providing services of this duty of
loyalty.
See Exhibit B at ~ 3( d).
13. Paragraph 6(a) and (b) of the company's policies manual contains Mrs. George's
agreement not to use or disclose Plaintiff's Confidential and Proprietary Business Information:
6. Confidential and Proprietary Business Information
a. Information regarding the Company's operations, planning and
financial status, both short and long term, must be kept confidential
unless the appropriate department in the Company decides
otherwise and authorizes its release.
In fact, this confidential information is proprietary, and any
unauthorized disclosure will be considered loss of private property,
and a serious offense. Therefore, confidential business information
relating to the Company and its subsidiaries and affiliates must be
kept secure, used solely as authorized by the Company and must
not be given to unauthorized outsiders or used for personal interest
or profit. In addition, this confidentiality requirement continues
even after employment has ended with the Company. In the event
of a violation of this confidentiality requirement after termination
of employment, the Company may take action to enforce this
policy, including seeking both injunctive relief and/or monetary
damages as appropriate.
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The following information concerning the Company, whether oral,
written or contained in any software, shall be considered to be
confidential:
· Proposed or advance product plans;
· Projected earnings, proposed dividends, important management
or organizational changes, and any other information which would
affect the above;
· Information relating to product or servIce design and
development or training;
· Computer software and systems developed by, for or unique to
the Company's business;
· Client lists (including phone numbers and addresses) and/or
client contract information;
· Any personal or financial information pertaining to any member
of any of the Company's Direct Marketing, Travel, Shopping, or
other membership business units;
· Information about prospective clients;
· Any personal or financial information pertaining to any employer
of the Company;
· Advertising, marketing or pricing plans, methods or strategies;
· Cost structures;
· All analyses, complications, studies or other documents, whether
or not prepared by the employee, which contain or otherwise
reflect confidential information.
Consider these factors when determining whether information may
be proprietary:
· Is it a trade secret?
· Does it reveal marketing strategies, decisions or an assessment
of the marketplace?
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· Is it technical information which we might want to release under
licensing arrangements?
· Does it relate to future plans?
· Would its disclosure adversely affect the Company's competitive
position?
· Is it information which has been taken from another Company
document containing a proprietary marketing?
· Does it contain something relating to software or computer
programs?
· Would it be of value to others?
· Was it costly to develop?
· Is the information preliminary, speculative, subject to change or
interpretation?
· Does it refer to documentation and equipment not available to
others?
· Does it contain information relating to customers and their
accounts, employee personnel data, employee health records,
shareowner account information or financial recommendations or
projections?
If you answer "yes" to any of the above questions, then you should
not provide such information to outside sources, and the
documents should be labeled with the appropriate proprietary
information marking. Any request for such information should be
referred to the Legal Department.
As to any matter pertaining to the Company's business, an
employee may not appear as a witness, give testimony or sign a
statement advocating a position at the request of outside parties,
except as required by law, or lobby before any government,
legislative, judicial or administrative body without specific, prior
approval from the General Counsel.
Any request for speeches, newspaper or magazine articles and
media interviews or comments should be referred to or discussed
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with the Public Relations Department and/or the Legal
Department. Any request to submit comments to a public official
or governmental body, should be referred to your supervisor and
the Legal Department.
b. Each employee must protect against unauthorized disclosure of
confidential information to which he or she has access. Access in
itself never confers the privilege to disclose the information
without proper authorization from the Legal Department (or the
President of the affected Cendant entity). In addition, employees
should refrain from discussing confidential information with
family, relatives, friends, acquaintances or business and
professional associates.
See Exhibit B at ~ 6 (a) and (b).
14. Paragraph 6(c) of the company's policies manual contains Mrs. George's obligation
to return Plaintiffs records and property to Plaintiff upon the termination of her employment
with Plaintiff:
c. Upon termination of employment or other contractual
relationship with the Company, for any reason, whether voluntary
or involuntary, the employee shall promptly deliver to the
Company all manuals, letters, notes, drawings, reports and other
materials, including all copies, containing confidential information.
See Exhibit B at ~ 6(c).
Mr. Geor!!e's Affiliation With. and Contractual Oblie:ations to. Plaintiff.
15. On or about March 30, 2001, Mr. George became an independent contractor of
Plaintiff.
16. As a condition of his affiliation with Plaintiff, Mr. George agreed to abide by the
terms and conditions set forth in his Independent Contractor Agreement, which appointed Mr.
George as a real estate "Salesperson" as defined by the Pennsylvania Licensing and Registration
Act. A true and correct copy of Mr. George's Independent Contractor Agreement executed by
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Mr. George, delivered to and countersigned by Plaintiff in Cumberland County, IS attached
hereto, made a part hereof, and marked as Exhibit "B".
17. Paragraph 2 of Mr. George's Independent Contractor Agreement contains his
commitment to faithfully, loyally and legally perform his duties and responsibilities on behalf of
Plaintiff:
2. Sales Effort.
Salesperson agrees to act as an Independent real estate salesperson
and shall faithfully, loyally and legally engage his/her efforts to
sell, trade lease or rent any and all real estate listed with Broker, to
solicit additional listings, customers and clients for Broker, and to
otherwise promote the business of serving the public in real estate
transactions to the end that each of the parties hereto may derive
the greatest profit possible.
See Exhibit B at ~ 2.
18. Paragraph II of Mr. George's Independent Contractor Agreement sets forth his
obligation to perform work concerning real estate business solely on behalf of the Plaintiff and
makes clear that all records and information concerning such work are the sole and exclusive
property of Plaintiff:
11. Listing, Contracts, Correspondence, Records and Forms.
Salesperson agrees that any and all listings of property, agency
agreements, and all actions taken in connection with the real estate
business, shall be in the name of Broker. Listings and agency
contracts shall be filed with Broker within twenty-four (24) hours
after receipt by Salesperson. All listings and agency contracts shall
be and remain the exclusive property of Broker. All
correspondence received, copies of correspondence written, plats,
listing information, memoranda, files, photographs, reports, legal
opinions, accounting information, and any and all other
instruments, documents or information of any nature whatsoever
concerning transactions handled by Broker or Salesperson, or
jointly, are and shall remain the property of Broker provided that
Salesperson is entitled to a copy of such instruments and
information upon reasonable request concerning any transaction in
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which he/she is personally involved. The parties hereto shall
mutually approve and agree upon all correspondence from the
office of Broker pertaining to transactions handled by Salesperson,
and shall further agree on the forms to be used and the contents of
all contracts and other forms before they are presented to clients
and customers for signature.
See Exhibit B at ~ 11.
19. Paragraph 14 of Mr. George's Independent Contractor Agreement sets forth his
obligations upon the termination of his affiliation with the Plaintiff and delineates Plaintiffs
rights with respect to its ownership of work previously performed by Mr. George on behalf of
Plaintiff:
14. Termination.
This Agreement, and the relationship created hereby, may be
terminated by either party hereto, with or without cause, at any
time upon written notice. Upon termination, all negotiations
commenced by Salesperson during the term of this Agreement
shall be handled through Broker and such assistance and
cooperation by Salesperson as is reasonable under the
circumstances for the protection of the interests of the parties to the
real estate transactions involved. Salesperson, upon termination,
shall furnish Broker with a bona fide list of all prospects, leads,
and probable transactions developed by Salesperson as well as all
correspondence and documents described in Paragraph 11 above,
which we deemed to be the property of Broker. Salesperson
further agrees that upon termination, or in anticipation thereof,
he/she will not furnish to any person, firm, company or corporation
engaged in the real estate business any information as to Broker's
clients, customers, properties, prices, terms of negotiations nor
Broker's policies or relationships with clients and customers nor
any other information concerning Broker and/or his/her business.
Salesperson shall not, after termination of this Agreement, or in
contemplation thereof, remove from the files or from the office of
Broker any materials, data, publications, correspondence, files or
information that is property of Broker. Salesperson shall be
entitled to copies of certain instruments pertaining to transactions
in which Salesperson has a bona fide interest or pertaining to
earnings of Salesperson.
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See Exhibit B at ~ 14.
20. Paragraph 16 of Mr. George's Independent Contractor Agreement further specifies
Mr. George's obligations upon the termination of his affiliation with Plaintiff including his
obligation to apprise Plaintiff of the status of business previously conducted by him on Plaintiffs
behalf:
16. Termination Procedure.
Upon termination by either party, Salesperson shall immediately:
a. submit a letter of termination with a complete
accounting of commissions, listings and buyer
clients;
b. return all supplies, clients/customer prospect lists,
keys and documents considered property of Broker
pursuant to the provisions of this Agreement;
c. meet with Broker for purposes of attempting to
mutually agree upon a final accounting of
commissions due and payable;
d. cooperate in the notification of the Real Estate
Commission regarding the termination of the
relationship or Broker and Salesperson.
See Exhibit B at ~ 16.
21. Paragraph 21 of Mr. George's Independent Contractor Agreement provides that Mr.
George is bound by Plaintiffs policies and procedure, including without limitation, those set
forth in the Cendant Core Policies Manual as described above:
21. Policy Manual.
Any office policy or rules and procedures manual now existing or
hereafter adopted or amended shall be binding on the parties.
See Exhibit B at ~ 21.
Mr. and Mrs. Georl!.e's Wronl!.ful Recruitment of Plaintifrs Salespersons.
22. Upon information and belief, on or about May 19, 2005, Mr. George formed
Defendant, Preferred Realty, LLC, d/b/a Exit Preferred Realty ("Preferred"), and Mrs. George
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was intimately involved in the formation of Preferred.
23. Upon information and belief, Preferred is a franchisee of Exit Realty Corp.
International ("Exit"), a Canadian entity and direct competitor of Plaintiff. Preferred was
established by Mr. George for the purpose of competing with Plaintiff.
24. Upon information and belief, and as Plaintiff expects to establish upon further
investigation and discovery, Mrs. George assisted Mr. George in his efforts to create, form and
establish Preferred, and Mrs. George may have a direct financial interest in Preferred. Although
Mr. and Mrs. George's official positions and roles with respect to Preferred are unknown to
Plaintiff at this time, upon information and belief, and as Plaintiff expects to establish upon
further investigation and discovery, Mr. and Mrs. George are key employees, representatives,
and/or members of Preferred.
25. On or about Saturday or Sunday, June 18 or 19, 2005, while still employed by
Plaintiff, Mrs. George dispatched and caused to be delivered a telephone voice message to all of
the real estate licensees associated with Plaintiffs Chambersburg office for which she was the
manager, each of whom was an independent contractor of Plaintiff, similar if not identical to the
independent contractor relationship between Plaintiff and Mr. George. In her message, Mrs.
George instructed the Salespersons to appear for a meeting in Plaintiffs office at 10:00 a.m. on
Monday, June 20, 2005 (the "Meeting").
26. On June 19, 2005, one day prior to the Meeting, Mrs. George was contacted by
Darlene Gontz, one of Plaintiffs Salespersons who would be unable to attend the Meeting. Mrs.
George asked to meet with Ms. Gontz at her house on or about June 19, 2005, during which time
Mrs. George explained that she would be leaving Plaintiffs employ, that she had a list of
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Salespersons she wanted to recruit, and that she had not planned on resigning from Plaintiff until
October, 2005, but was forced to accelerate her resignation because Plaintiff had found out about
her plans. She further stated that she expected to be fired on Monday, June 20, 2005.
27. On Monday, June 20, 2005, Mrs. George conducted the Meeting. During the
Meeting, she informed the Salespersons that she was going to resign from Plaintiffs employ.
She stated that she had hoped to conduct the Meeting under different circumstances, but that she
was forced to hold the Meeting at that time because someone had informed Plaintiffs President
that she intended to establish an Exit Franchise.
28. At the Meeting, Mrs. George informed Plaintiffs Salespersons that she and her
husband, Mr. George, "were branching out on their own". She explained that they were joining
Exit and would be opening offices in Chambersburg, Greencastle and Waynesboro. Plaintiff
understands this statement to mean that Mr. and Mrs. George were becoming Franchisees of Exit.
She informed the Salespersons that she could no longer stand behind a company in which she no
longer believed. She criticized Plaintiffs business strategies and explained that during the
previous week, she and her husband, Mr. George had gone to a seminar sponsored by Exit. She
then distributed an informational flier concerning Exit that contained Exit's mission statement
and reflected Mr. and Mrs. George's goals to have 128 Salespersons spread over three offices.
She then invited the Salespersons to attend another breakfast meeting in the near future to
explore potential affiliation with Exit. Finally, she explained that she and Mr. George had
initially planned on opening their new office later in the year, but they were forced to do so
sooner because someone "leaked" their secret plans to Plaintiff.
29.
On or about June 20, 2005, after the Meeting, Mrs. George further solicited certain
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of Plaintiff's employees. In one instance, Mrs. George told one employee that she and her
husband "had big plans" for that employee at Exit. In another instance, she telephoned another
Salesperson to ensure that she (the Salesperson) would be attending the upcoming breakfast
meeting.
30. As a result of the above-described solicitations, numerous of Plaintiff's
Salespersons terminated their affiliation with Plaintiff and joined Mr. and Mrs. George at
Preferred. The Salespersons who joined Defendants as a result of these solicitations include:
Tina Long; Sonja Boatman; Austin Kegerreis; Vickie Johnson; Rod Hocker; Christy Highlands;
Kelly Shetter; Joan Smith; Heather Stoner; Mike West; Sloane Gillespie; Michelle Cordell;
Susan Barlup; Jennifer Deverell; William Kopp; and James Sourbier (collectively, the Former
Salespersons").
31. Most of the Former Salespersons had executed and were bound by Independent
Contractor Agreements similar, if not identical, to the Independent Contractor Agreement
executed by Mr. George. True and correct copies of the Former Salespersons' Independent
Contractor Agreements are attached hereto, made a part hereof, and marked as Exhibit "C".
32. Upon information and belief, and as Plaintiff expects to establish upon further
investigation and discovery, the Former Salespersons have conducted business on behalf of the
Defendants, which business would have been conducted on behalf of Plaintiff had Defendants
not engaged in the wrongful conduct described herein.
Mr. Georl!e's Wronl!ful Diversion of Plaintiff's Listinl!s.
33. Throughout their respective affiliation and employment with Plaintiff, Mr. and Mrs.
George frequently co-listed properties for sale or rent on behalf of Plaintiff. For example, Mr.
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and Mrs. George frequently listed properties for sale with respect to one of Plaintiffs clients
named S&A Homes. Attached hereto, made a part hereof, and marked as Exhibit "D" is a true
and correct list of twenty (20) properties owned by S&A Homes and co-listed by Mr. and Mrs.
George on behalf of Plaintiff.
34. Without Plaintiffs knowledge or consent, and prior to the termination of their
respective affiliation and employment with Plaintiff, Mr. George prepared "Change to Listing
Contract" forms dated June 20, 2005 for each of the twenty (20) properties identified on Exhibit
"D" hereto. True and correct copies of the Change to Listing Contract forms are made a part
hereof, attached hereto, and marked as Exhibit "E". The Change to Listing Contract forms
shortened the term of each listing contract with respect to the twenty (20) properties identified on
Exhibit "D" hereto.
35. On or about June 20, 2005, Mr. George terminated his affiliation with Plaintiff, and
Mrs. George resigned from Plaintiffs employ.
36. Mr. and/or Mrs. George then entered each of the twenty (20) properties in the MRIS
multi list system on June 21, 2005 changing the status to "Expired." MRIS is a central computer
system where Pennsylvania real estate licensees can place their listings for sale. Participating
Pennsylvania real estate licensees can access listings for their buyers posted by all other
participating Pennsylvania real estate licensees within the MRIS multi-state service area.
Pennsylvania real estate licensees can quickly and easily search this database of listed homes for
sale using their buyer's criteria such as area, style of home, price, and more.
37. On or about June 21, 2005, Mr. and Mrs. George placed their license with Exit
Platinum Plus Realty, a separate, but already existing, Exit Franchisee in Cumberland County.
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Upon information and belief, and as Plaintiff expects to establish upon further investigation and
discovery, Mr. and Mrs. George placed their licenses with Exit Platinum Plus Realty because the
company they owned, i.e., Preferred Realty LLC, was not yet ready to open.
38. On or about June 21, 2005, several of the twenty (20) properties identified on
Exhibit "D" hereto were listed with Exit Platinum Plus Realty under the name of Jeff George.
39. Upon learning of the diverted listings for the twenty (20) properties identified on
Exhibit "D" hereto, S&A Homes directed that these listings be relisted with Plaintiff.
40. Upon information and belief, and as Plaintiff expects to establish upon further
investigation and discovery, the Former Salespersons have listed properties on behalf of the
Defendants, which listings would have been listed on behalf of Plaintiff had Defendants not
engaged in the wrongful conduct described herein.
COUNT I
INJUNCTIVE RELIEF
(Against All Defendants)
41. The averments of Paragraphs 1 through 40 are incorporated by reference herein with
the same force and effect as if set forth in full below.
42. By virtue of the foregoing, Plaintiff has demonstrated an entitlement to relief and
that a balancing of the equities favors the issuance of a special, preliminary and permanent
injunction against Defendants.
43. Unless Defendants are temporarily, preliminarily and permanently enjoined from
the foregoing conduct, Plaintiff will be irreparably harmed by:
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a) Use and disclosure of Plaintiffs confidential and trade secret
information, which is solely the property of Plaintiff;
b) Loss of customers and damage to Plaintiffs goodwill;
c) Loss of personnel and threat to office stability, morale, and procedures;
and
d) Present economIc loss, which is unascertainable at this time, and future
economic loss, which is presently incalculable.
44. Plaintiff has no adequate remedy at law.
WHEREFORE, Plaintiff respectfully requests that:
I. A special, preliminary, and thereafter a permanent injunction Issue, enjoining
Defendants, and anyone acting m concert with them, including any officer, employee,
representative and/or agent of Preferred, from directly or indirectly:
a) soliciting away from Plaintiff any of Plaintiffs clients, suppliers, or
employees for a period of one year;
b) using, disclosing, or transmitting, for any purpose, Plaintiffs confidential
and trade secret information, including without limitation for purposes of soliciting Plaintiffs
clients and employees; and
2. A special, preliminary, and thereafter a permanent injunction issue, enjoining
Defendants, and anyone acting In concert with them, including any officer, employee,
representative and/or agent of Preferred, from directly or indirectly:
a) destroying, erasing or otherwise making unavailable for further proceedings in
this matter, any records or documents (including computer readable media) in the possession or
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control of Defendants which were obtained from or contain information derived from any of
Plaintiffs records or property, which pertain to Plaintiff, or which relate to any of the events
alleged in the Complaint in this action.
3. A special, preliminary, and thereafter a permanent injunction issue, enjoining and
compelling Defendants, and anyone acting in concert with them, including any officer, employee,
representative and/or agent of Preferred, to return to Plaintiff and purge from their possession any
records or information, in any form, obtained by Defendants as a result of Mr. and Mrs. George's
respective affiliation and employment with Plaintiff:
4. The Court grant a special, preliminary, and thereafter a permanent injunction
prohibiting and/or compelling any and all other such acts as the Court deems appropriate.
COUNT II
BREACH OF CONTRACT
(Against Mrs. George)
45. The allegations of Paragraphs 1 through 44 are incorporated herein by reference
with the same force and effect as if set forth in full below.
46. By virtue of the above-described conduct, Mrs. George has violated, among others,
the confidentiality obligations, the covenants not to use or disclose confidential information, and
the covenants not to solicit employees, all of which are contained in her agreement to abide by
the Cendant Core Policies Manual attached hereto as Exhibit "A".
47. Upon information and belief, and as Plaintiff expects to establish upon further
investigation and discovery, Mrs. George will continue to violate her contractual obligations.
48. As a consequence of the foregoing, Plaintiff has suffered and will continue to suffer
6240632 20
.
.
irreparable harm and loss, and has sustained damages including but not limited to loss of capital,
loss of valuable business, loss of profits and future profits, and loss of good will, in an amount to
be determined at trial, which damages are ongoing and continue unabated at the time of filing of
this Complaint.
WHEREFORE, Plaintiff demands judgment in its favor and against Defendants in an
amount to be determined at trial, and such interest, including pre-judgment interest, and costs as
allowed by law; and such other relief as the Court may deem appropriate and proper.
COUNT III
BREACH OF CONTRACT
(Against Mr. George)
49. The allegations of Paragraphs 1 through 48 are incorporated herein by reference
with the same force and effect as if set forth in full below.
50. By virtue of the above-described conduct, Mr. George has violated, among others,
the obligations set forth in paragraphs 2, 11 and 21 of his Independent Contractor Agreement
attached hereto as Exhibit "B".
51. Upon information and belief, and as Plaintiff expects to establish upon further
investigation and discovery, Mr. George has violated other covenants set forth in his Independent
Contractor Agreement.
52. Upon information and belief, and as Plaintiff expects to establish upon further
investigation and discovery, Mr. George will continue to violate his contractual obligations as set
forth above.
53.
As a consequence of the foregoing, Plaintiff has suffered and will continue to suffer
6240632
21
.
.
irreparable harm and loss, and has sustained damages including but not limited to loss of capital,
loss of valuable business, loss of profits and future profits, and loss of good will, in an amount to
be determined at trial, which damages are ongoing and continue unabated at the time of filing of
this Complaint.
WHEREFORE, Plaintiff demands judgment in its favor and against Defendants in an
amount to be determined at trial, and such interest, including pre-judgment interest, and costs as
allowed by law; and such other relief as the Court may deem appropriate and proper.
COUNT IV
CONVERSION OF CONFIDENTIAL BUSINESS INFORMATION
(All Defendants)
54. The allegations of Paragraphs 1 through 53 are incorporated herein by reference
with the same force and effect as if set forth in full below.
55. Mr. and Mrs. George have used Plaintiffs confidential business information to
recruit Plaintiff s Salespersons and to compete unfairly against the Plaintiff.
56. The foregoing conduct of Mr. and Mrs. George, all of which was taken on behalf of
and in concert with Preferred, constitutes a conversion of Plaintiffs confidential business
information.
57. As a consequence of the foregoing, Plaintiff has suffered and will continue to suffer
irreparable harm and loss, and has sustained damages including but not limited to loss of capital,
loss of valuable business, loss of profits and future profits, and loss of good will, in an amount to
be determined at trial, which damages are ongoing and continue unabated at the time of filing of
this Complaint.
6240632
22
.
.
WHEREFORE, Plaintiff demands judgment in its favor and against Defendants in an
amount to be determined at trial, and such interest, including pre-judgment interest, and costs as
allowed by law; and such other relief as the Court may deem appropriate and proper.
COUNT V
MISAPPROPRIATION OF TRADE SECRETS 12 Pa. C.S.A. && 5301-5308
(All Defendants)
58. The allegations of Paragraphs 1 through 57 are incorporated herein by reference
with the same force and effect as if set forth in full below.
59. Plaintiffs confidential and trade secret information, including without limitation,
the information described in paragraph 6(a) of the Cendant Core Policies Manual constitutes
Plaintiffs trade secrets.
60. Plaintiff takes steps that are reasonable under the circumstances to maintain the
secrecy of its trade secrets, including without limitation by requiring its employees and
Salespersons to execute and abide by the contractual obligations outlined herein.
61. Plaintiffs trade secret information derives independent economic value because is it
not generally known to, nor capable of being readily ascertained by proper means by, other
persons who can obtain economic value from its disclosure or use.
62. Mr. and Mrs. George have used Plaintiffs trade secrets to recruit Plaintiffs
Salespersons and to compete unfairly against the Plaintiff.
63. By virtue of the conduct described above, Mr. and Mrs. George (on behalf of and in
concert with Preferred) have misappropriated, disclosed and misused, and upon information and
belief, and as Plaintiff expects to establish upon further investigation and discovery, may
624063.2
23
.
.
continue to misuse, Plaintiffs trade secrets.
64. Defendants' misappropriation of Plaintiffs trade secrets has been willful and
malicious.
65. As a consequence of the foregoing, Plaintiff has suffered and will continue to suffer
irreparable harm and loss, and has sustained damages including but not limited to loss of capital,
loss of valuable business, loss of profits and future profits, and loss of good will, in an amount to
be determined at trial, which damages are ongoing and continue unabated at the time of filing of
this Complaint.
WHEREFORE, Plaintiff demands judgment in its favor and against Defendants in an
amount to be determined at trial, together with reimbursement of costs and expenses, including
reasonable attorneys' fees, costs and expenses as provided for by 12 Pa. Cons. Stat. 9 5305, and
monetary and exemplary damages as provided for by 12 Pa. Cons. Stat. 9 5304, together with
such interest, including pre-judgment interest, and costs as allowed by law; and granting such
other relief as the Court may deem appropriate and proper.
COUNT VI
BREACH OF DUTY OF LOYALTY
(Against Mr. and Mrs. George)
66. The allegations of Paragraphs 1 through 65 are incorporated herein by reference
with the same force and effect as if set forth in full below.
67. By virtue of the foregoing conduct, Mr. and Mrs. George have violated the common
law fiduciary duty and duty of loyalty arising under their agreements and relationships with
Plaintiff.
6240632
24
.
.
68. As a consequence of the foregoing, Plaintiff has suffered and will continue to suffer
irreparable harm and loss, and has sustained damages including but not limited to loss of capital,
loss of valuable business, loss of profits and future profits, and loss of good will, in an amount to
be determined at trial, which damages are ongoing and continue unabated at the time of filing of
this Complaint.
WHEREFORE, Plaintiff demands judgment in its favor and against Defendants in an
amount to be determined at trial, and such interest, including pre-judgment interest, and costs as
allowed by law; and such other relief as the Court may deem appropriate and proper.
COUNT VII
UNFAIR COMPETITION
(Against All Defendants)
69. The allegations of Paragraphs 1 through 68 are incorporated herein by reference
with the same force and effect as if set forth in full below.
70. The foregoing conduct ofMr. and Mrs. George, all of which was taken on behalf of
and in concert with Preferred, constitutes an unfair method of competition.
71. As a consequence of the foregoing, Plaintiff has suffered and will continue to suffer
irreparable harm and loss, and has sustained damages including but not limited to loss of capital,
loss of valuable business, loss of profits and future profits, and loss of good will, in an amount to
be determined at trial, which damages are ongoing and continue unabated at the time of filing of
this Complaint.
WHEREFORE, Plaintiff demands judgment in its favor and against Defendants in an
amount to be determined at trial, and such interest, including pre-judgment interest, and costs as
6240632
25
.
.
allowed by law; and such other relief as the Court may deem appropriate and proper.
COUNT VIII
INTERFERENCE WITH CONTRACTUAL RELATIONS
(Against All Defendants)
72. The allegations of Paragraphs I through 71 are incorporated herein by reference
with the same force and effect as if set forth in full below.
73. Mr. and Mrs. George, as well as the Former Salespersons with Independent
Contractor Agreements, have and had valid and enforceable contractual obligations to Plaintiff.
74. Defendants either knew or should have known of the existence of these valid
contractual obligations.
75. Despite this knowledge, Defendants aided, abetted, induced and assisted Mr. and
Mrs. George and the Former Salespersons to breach these obligations, and did so with the
specific intent to harm these existing contractual relations.
76. Defendants' actions were without privilege or justification on the part of
Defendants.
77. As a result of Defendants' conduct, Mr. and Mrs. George and the Former
Salespersons did, in fact, breach their contractual obligations and/or terminate their respective
affiliations with Plaintiffs, thereby causing harm to Plaintiff.
78. The foregoing conduct by Defendants constitutes tortious interference with
Plaintiffs contractual relationships with Mr. and Mrs. George and/or the Former Salespersons.
79. As a consequence of the foregoing, Plaintiff has suffered and will continue to suffer
irreparable harm and loss, and has sustained damages including but not limited to loss of capital,
624(l63,2
26
.
.
loss of valuable business, loss of profits and future profits, and loss of good will, in an amount to
be determined at trial, which damages are ongoing and continue unabated at the time of filing of
this Complaint.
WHEREFORE, Plaintiff demands judgment in its favor and against Defendants in an
amount to be determined at trial, and such interest, including pre-judgment interest, and costs as
allowed by law; and such other relief as the Court may deem appropriate and proper.
COUNT IX
TORTIOUS INTERFERENCE WITH PROSPECTIVE ECONOMIC ADV ANT AGE
(Against All Defendants)
80. The allegations of Paragraph 1 through 79 are incorporated herein by reference and
realleged with the same force and effect as if set forth in full below.
81. The foregoing conduct by Defendants constitutes tortious interference with
Plaintiffs prospective economic advantages, all of which were valid and known by Defendants
to exist, and were interfered with intentionally without privilege or justification.
82. As a consequence of the foregoing, Plaintiff has suffered and will continue to suffer
irreparable harm and loss, and has sustained damages including but not limited to loss of capital,
loss of valuable business, loss of profits and future profits, and loss of good will, in an amount to
be determined at trial, which damages are ongoing and continue unabated at the time of filing of
this Complaint.
WHEREFORE, Plaintiff demands judgment in its favor and against Defendants in an
amount to be determined at trial, and such interest, including pre-judgment interest, and costs as
allowed by law; and such other relief as the Court may deem appropriate and proper.
6240M2
27
.
.
COUNT X
CIVIL CONSPIRACY
(All Defendants)
83. The allegations of Paragraph 1 through 82 are incorporated herein by reference and
realleged with the same force and effect as if set forth in full below.
84. Defendants formed and operated a malicious combination with a common purpose
to injure Plaintiff by (a) performing unlawful acts by violating Plaintiffs contractual and
common law rights as described above, and/or (b) performing the lawful act of competing with
Plaintiff, but to do so through the unlawful means of violation of Plaintiffs contractual, statutory
and common law rights as described above.
85. The foregoing conduct of Defendants was malicious, performed with intent to injure
Plaintiff, and was without justification or privilege.
86. One or more of the Defendants in fact engaged in overt unlawful acts and conduct
violative of Plaintiffs contractual, statutory and common law rights as described above, causing
actual harm to Plaintiff.
87. By virtue of the formation and operation of this conspiracy by Defendants, and as a
consequence of the above described wrongful acts and conduct and the harm and injury caused to
Plaintiff thereby, each Defendant as a participant in this conspiracy is liable as a joint tortfeasor
for each and every one of the above-described acts committed by each Defendant/co-conspirator.
88. As a consequence of the foregoing, Plaintiff has suffered and will continue to suffer
irreparable harm and loss, and has sustained damages including but not limited to loss of capital,
loss of valuable business, loss of profits and future profits, and loss of good will, in an amount to
6240632
28
.
.
be determined at trial, which damages are ongoing and continue unabated at the time of filing of
this Complaint.
WHEREFORE, Plaintiff demands judgment in its favor and against Defendants in an
amount to be determined at trial, and such interest, including pre-judgment interest, and costs as
allowed by law; and such other relief as the Court may deem appropriate and proper.
COUNT XI
CONSTRUCTIVE TRUST
(Against All Defendants)
89. The averments of Paragraphs 1 through 88 are incorporated by reference herein with
the same force and effect as if set forth in full below.
90. Defendants are subject to an equitable obligation to account to Plaintiff for all funds
received as a result of the above-described wrongful conduct, but Defendants have failed to do so.
9 I . Defendants are constructive trustees for the benefit of Plaintiff, with all fiduciary
responsibilities and obligations thereof, of any and all funds in Defendants' current or future
custody, possession and control that were/are received as a result of the above-described wrongful
conduct.
92. Plaintiff will suffer immediate and irreparable harm, and Defendants will be
unjustly enriched, unless the Court imposes a constructive trust upon the aforesaid funds and
holds Defendants to be constructive trustees for the benefit of Plaintiff, with all fiduciary
responsibilities and obligations thereof, of any and all such funds in Defendants' current or future
custody, possession and control.
93.
Plaintiff has no adequate remedy at law.
624063.2
29
.
.
WHEREFORE, Plaintiff respectfully requests that the Court (a) enter an Order declaring
Defendants to be constructive trustees for the benefit of the Plaintiff, with all fiduciary
responsibilities and obligations thereof, of any and all funds in the Defendants' current or future
custody, possession and control that were received by the Defendants as a result of Defendants'
violations of Plaintiff's contractual, statutory and common law rights; and (b) grant such other and
further relief as the Court deems appropriate and required by the circumstances of the case.
Respectfully submitted,
, 1(///
B f / :Z'~
CD el . Greco, Esq re
Francis X. Riley, Esquire
Matthew M. Haar, Esquire
Atty. ID No. 78426, 74075 & 85688
Penn National Insurance Plaza
2 North Second Street, 7'h Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
Attorneys for Plaintiff
<>24%31
30
.
VERIFICATION
.
1, James E. Grandon, hereby stale that I am the President of Plaintiff, Jack Gaughen
Realtor, ERA, in the above-captioned civil action and that I am authorized to make this
verification on its behalf. I verify, subject 10 the penalties of 18 Pa. C.S. ~ 4904 relating to
unsworn falsification to authorities. that the averments set forth in the foregoing Verified
Complaint are true and correct to the best of my personal knowledge, informa' , and belief,
'2<lOr~1,1
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Exhibit "A"
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ii,'!dhe!,!!.~o thf!Col'!'pariypolide~.,anQ~II,fa~iliari~emr~8~V\'ith '" ,'.'
. _ ' :,;~~tl)!'!rn<I!~rilllii1 thimanullU Utld8rsfa,nqth!!~thi$mllnUaV', il'
: supersedes any and all prevfous CendantCore Policies
Manuals. I also acknowledge that neither this manual nor any
ather company guidelines. pollcles or practices create an
emploYl'l1ent contract The Company has the right, with or
without notice, In an individual case or generally, to change
any of its guidelines, policies, practices, working conditions
or benefits at any time.
Also, I understand that the emploYl'l1ent relationship is based
on mutval consent of each employee and the Company,
Accordingly, ,either the Company or I may terminate the
employment relationship at will, at any time, with or without
cause <:lfadvance noti,ce.
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Exhibit "B"
.
11/28/2005
Reoelved 11/~05 10:44AM In 18:24 on line [12] for 4659 . ~33
10:42 717-761-0923 JGR ERA EXEC
..KVI'JUf. I is..u..EMl..t:l\sON .
INDEPENDENT CONTRACTOR AGREEMENT
11>1. nv.. '"_."""... ...-voodlbr'..... ...~.-lricled... _iii' .........,...,.6'...~ ~.,...DI.^._.......'It.IlAI..fOft8IIl
PAGE 1!l8
Form 150-2
This Agreement l........'... <.;. ~ d.yo' ~ ~"'J:2L bc",- ""T"~ ~~A_ ~..,+//W,.. E; 1t<4-
l1eninu.1'tJ:ll'lllr.rn:droU"'Dmk;l;:r",ftnd ~p'r~~c e:.,.., . her9in.rrt!r",r4tnldtn.."SoI"..panllOl\",
Whereas. Bl'Dkar" an.,ed 111 buatnr::n u 0 ReMI EIfIIate Bl'OkeI:' /\001 ill d1;11)' Jjcon",,- co enpp In tI1e ac:lJvlde, Dr. "BmkOJ'" tll doAItCd by the! Pann.,.l"~nfil L1C::CMlna
and Rll,fIlllnldon Act, Ad olPc::b1-uQr)' 19. ISl80,P,L. ':i. No. 9, ..nmClndDd.llnd '..... .
. Whereas. Brokor lJlIIlll"wfUI onl;: or II)()R nft'Icu plUflC'l1)' ~l.iippc:d with fuml'~ri~.'lill'dnJ 'ho~"cid prhuoquJ~( Mcelll.f'}' lmd JIlClc.lcnbll to the ~r(lponitiOll
p( Sll.1d IXlInn_... Ond lIr.tTod with Cllerlcol Ofp~1Q)'"CllIS, Uld III thcrctly aul...,le 10 Il'CM'lnS (he puhl'lo .. G ~1 a,C.'o brukar;. """
\Vhereas. SGlaIperaan II duly 1f_.1Id by tha ComIhonWQOlth of P'rmnsyNo.nt.... II"~ eMate 1....'UJ'DnI<1..... Qr, "~141 bcokm"'., d~n~ by 'Ile P'eJlhflrlWtnJa.
=: =:'-OJ1IIYW.tlan Act. N..l whllreM It I~ Ilcemed tt) he:: to the mlJ111nl ad~ntage OIfBt~!IAd Sn~r~ to enter till, conU'''''t upoll the t~ WIIor;I cotIditlcmB haro-
NOW T.HEREPoRE. Ibr an<llnCQl'lfildBnlt!an o( ~'mut\'a\ .,.,.....I\~ta llnc.I p1:~IN ~n 'ClOnlat~. ~hc '\IIItler'dl'lI:d hGl'Uby ."h1r I"W tho follDwl1lJ: IIrtlclllllt or
qrogmllill1l: .
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I. Iml.p.,.w CuntlWl!tOr.
11M- relation.hlp or SnlCllpl:f1:on hIo Broker II that f1f II,.. 'tlcSet>lOncJcnl QOf1h'OClar, 111 pcrformbill tha lIl.;Uvltloa or II "'1\1 Ma..ltI "s'llosptlrtcrl" ~ dolii\Od b)' lhe ]teal E..U1n
~tmJ MId rt"Clartr-.tlon ACI ~lnllfter """1Wd tQ n "1\(1'''), lWllC$pct5On IIlhfJl ~ ftU ~ dI:NtlC9 s\leh ~ a{ hWhw- time. anoraY'. ~I'fbrtt nnd HII1. :u helshcl dDCfII'tJ
apprqm.-. Ift~. V{iRI t"M. Imk::pcndcnt Clm"lG"aCtOr ,r.1U~. SIIlesptit'ac?n,,M1I1l be :$'CIlPoNl'bl. fOf compJIld.1la l1n7 nlnm,: nqulrod by the. Act Il'f olher l.wlI of thO'
CvmmQllWllllJth of l"oQns,.IVllI'I'dll; Saluperwvn "han work o~ II aomrniulon .b1lll.1. and mcofvo no "1...,., tr1.... benofitll. m~lcDllw:nll'ha, ~Cm bcnllfUa, t)I' pot'it 1I1ulrln.a;
.~ aPlCe, 100111. ~memploylfUmt, ~fI,l SllaInity or IluIlnoJIf prtvlltl.llic, 1.lUl8' (~ere 'PI'lIdlb~e) ..~.ull be :-Y11bheld. ftoQ", SaLc.f1)OrllCm. ~\'l. IlllftU ~ .II prnf-cAiOllIll
t;l;.ien.lna r-..~ lnoN and. cnniUlQft& t~e prcmh:am. (uce:pt.. ?JbetWUie prvvldod herilil\).; m\\lQ-li4dq fCQI and/or c~ Koes.l reel. Saleqrl"",h 11I1.11 _t ...
tl'Wltal II' ...n emplo:J'f!lt wtOI re.plct to tII(t 1IOrVI1lllI. plrfontled hereunder flW fudeml 01' "bit. hill: 111:I1'11-- OJ" fO'r pu~_ u~ th_ Workln' Ctmrln8llllon Ad.
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S.klPcnol\ Igrcza 10 lICl U an Il\dcpendent mil' eslllola ~ Dftd ....11 ("ithfuIJ)', IO)'llllr iInd liClr;fdl)' cnSap "l#bcl' cf'frll1:. 10 sell, ..de. leu.. Or ralllll.T\Y find 0.11 rclll
eState UlJtcit ""llll Brokcn". 10 aollell addJtionlllllltln... ClUIICOMen and o)ignu for Broker. _d to Ol.huwllla pmIl\ote tho bum""", or HrvinlJ the: publIo In ren.1 OltQtcl tnloIlllAC-
lions fllO the Ind thlll Clgah "f""" pArti~ IM:lnIco QUlY darivo tbo ,lllOfeu profit poI~ib",
3. agk.",rdlttt... . ", " " . . .
Broke{' 5bnlt &om r1mo 10 tlma d_i~to tho otBcc. Wllh which ~ SllllO~OI'lOI\' Id.;.11 bcIo DllOC!iltclCL 'lbl'lC omCll ....11 'h1l9f'OYi4ed with lu<ih l\n'nl..ldnp NJd cqulpmcn~ '"~
d';CflItd fle<:'....,.1l4 rbo <11~ o(BroJru fbrthGprot*'_~8dOll or ~ eeol ~tll.~ iq~.. !i~. "'110 mU1> ~,"*b~ loth. s..1a.tpr;1ntOn aU curTElflt Ii,unl' 0' lito nM~.
Qrld aerc.~ up~ req..... 10 RdM 1l1l.lIflCROI1Iln hl~ 'lI'(Qdl; by lidvlOF. In'~QtIOf'~ amt~l'l'~C)Q, to ,!,c, tll:1~lt d..mod appY'O~'w. by "'lOker, S.l~l'1ICl" lIbol:I
:P"Y..~or l~nl ~~nee 1"I.cphQDI cnnrao- Iind tv~ such gd1CT kl~. eqllr~,C, IUPP,ll~ ~.I'I~II p~ :I._ J~ hi .Bt'OkBl"1 '4'ritton Qt'rIQf po;>tlCJftI.
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$al~n .IWl tu,.,:h hlather a:..;m'lWlott\Qbllc .nd PIIY IllI ralucld ~plinKc" I\nd ~T"'hlJihuwe' D'O''n:r.PotiJibUit)' ~I-"lri, to SaluPcrlgJl'R auc"",QbUc 01" n.n~11M.
S.le,pusem a._ to cilII'Y Il.bnity InlUl1lnco lQlon hi~or nUIOG:lobfle w{Th millhmam UIIMHty limlttl (if $300,00(;1 Cor Ilr\Illh ~nmn _"d S.!IOO.OQO fM c./ll:1\ lIc<::ldollr .nll wlrh
pT'OpOrty damll.c'l JlnbJllty IImlla of $.50,000, SaIOllpOrllm~ n"... I:cl fuornillh RI'Oker wtm . ocsrti~ oeerS\~'1'\~ ~11~ ~1h u.", ~l,llre'nenf to be clClP<',lled wJth aroll:Dr
em or 'oc1'orQ ~ ctn::cdv. dflrallnd altCll renlwal dollS nf thi' ~~" ~.I o:tbGo:: t!~...~.. B~~ mCl.)' =~nlbly lOiiI~t.
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SaM~CIQ ~~::6::~'~ Ul" shatlt of ili& "DnmlJ\1.lIlOM ~od -Wi ~N~:fby'~,m~d,,'-q~~c:fuI"~ W!.i1,i.:~roker'l SafG~c"i" ~1"lon SC!locMC. in eIDr.:t an tl~
d1te at the IICt el\tftlU:l' SateJpWIQft &0 .. 'cnntmlnlon (e.... obllll"ln, Jlsdnr:. plti;ins pt'QpRt)' Uj\~ ~mont or Wit. CfCI.) tit' AI O1lletll'hAO arwd by tile 'P.rtICl11lll wrlclftJ
.. tQ . pl'trti~,"IUT tromSRCtion, :Btokar mA)' aleer jll 511101lpanmn comml~OI1 $cllwJlIle nom tIm.. tLl dm. whh01ll pri(X" nntiRe&IIUOI\. Rovi.I0n6 10 rho tehcdu1a Rha" \lc. J~-
d1.hil1r. ~P1M;IAbtc:.ll)aI1 f\uure tnmIIacdOl$. ". dw~on nf~mltll~ bll~11 Dfl).kok,J"CI~aonshll.1LtDI\",w MdlJCllon of a" ~.. accotdlTllJ In'he SlalespCITllOn
'comrn'tplnn $dhe(lllTI, 1ft _ CIalla ,hlilt B~k\tr bu lIablll 40 BalOllponlrm,ior IIfIY c:~mlM.j<im fj~:ooJI~ ",ll.~iOnll.d~WId,~om ll.1rnnsaoiliDTl fl1l1l1" dClpollJ1Q<)
with I:h;G ~~_ .. t'OCIwted by the ~ anal~ Rld~ ~nd ROll'll.tlnll'" _~r f~ R?AI'.~ta :p'~i.IIl~~I~ !"Il1f.eqU$l1l1y,pWd lIQoordlR& 1(1 tbA SalDZlpl:'rJon Com~iIIi\km
s.:hcchilll. ,1;talS cl1snlbutloll ....n [.kG plC1C1l1 _ lIDm1 III Jl'rpcUR:~la. _fmr Cl~)~9J1 and ~ of"'~cb Ci~I~Io.~. n b Imdlll1l1ao611nc1 qrec:d th.t tba, s,'\tupkwn "tJlJ\ly
~ui\C':~I1I,mi tor ttte """~ bail'S f~~ ~ ^81~ 11 tll~ SN,,,.ponon'~ ?l1nr~.~fbt ~~~l(In' pnld .by 1hP plIrctOll.CO,~lIl_ll\lc 1M11I1l\CtLohl. .
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In n~ c~~nt ~n~a~~rMl" crnlree 11>''lIl1.., 1M commj~lon m tn establbha:::t ~ the DrcSk-.c. wlthQ~t'tt'J: Qaof wrlu"", ~ Of B,.o..,m. 'U BJ'Qker lIMn have cot.rod i.uo
lI.IlJIOCl1l1 COll1ml:1 01" AlN!cr'IlUn portllnln, IQ "")' p1lI'l1culv lranNl9Clon. D.rok17 ~tlalllll1'YUo S_lclIpcrson of such .pooh,llllTGn&Cl"o.Dnt. All ClQMltli.Aianll &1111 reel f'rum . pAJ'r
dl;:ulnrU'lln'~Cllon al:uld bel p"Yflbla 1.0 lhe: Brnker. Slllcapcrl()n ~all not be rcnQfl.llll}' )iabla fQ B~Jt,~*>, oommi~ioQ. not rooelvcd ~Y. 8ra~ from P4tIlo~ IQ a cr.n.-
Ilcllon lolnlC5ll loch 11l::OIl".r)'menl 1$1 fh~ fClllIl~ (If" <:olllt$iun, InUlmklQtlI or n:olclCllo$ CQDduat.. brvke'r shall bIlVil1h~ exclusiVe li~1 tQ doCennhle w1'u:,-""" to Q~ I!tls:t.ticm
tQ Collect. comma-Ion Of' f..,..., Of' tc _tll:. MY cI.t..\\'n fIw Ulllo Illlm&,
7. &Ilk and n....,ulOC'lnttn.....
Snlollpct1llon nncl Brokar ~hllll condUC:1 bllllrMI.. .r\(1 tc<<U''''''" WorJdflll IIll:hodul\l.lj '0 all In m"lm,ain _<I tQ ~l)C.N0.1IC ~,Iood will, bQ~SS, !'fOn... .n4 rapIltaUon C)f' 8roku
;mil S..~ and OKi'h.gntea tu aQYlfofm tonnd .bldlr~, on JIIWB, l'Illes anl1fq1ullltfOttf. aadcnde of._hillll ttw: "" blndlnl! -. orollpplk,b1c",,'HlIl_t.tobro1{e"'Gnd
80Ie~ar"",', $alO*pcrllOn .nd D(okcJ fthnfl be ,aova-ncd by tho Co" nfEthfc8 cfmc NlIfi~lA~p.,laIi(Oll ofRDAt.TQRS., 11M! AOl., Rules lImI RClJlllMbu orlOO tt.al Eeu,,'a
(!OMonb>;lon. 11_ fbo auma mil)' be from time 10 dme amend." Or 'QpPllltrl'l~Ud, tliO 'Con~ltuliuri and t/)'"hrwI ot the lOcal realty l:>1;IlI,d (or 1IvW1 nth<< boo. Q1" l'luocletkm...,
ml.,Y be aBreed upon). lintS tbc rl,lto....m rcl&lIla1iOnt. m'U\Y mulU'PIu liJt\nl iHlrvklcw)th Whldi II~ mft)/ nQW-I>>' In lhllt Altara be> Aflm.lc<l. 8IVk"r'.1td S.lcspllrton ,,111111
!'CIUlln membenhlp I" pnftd ,e,.allill.a; with the N.t1nnlll.Al$OCilldon nr REALTOR.s~, tho Pl:ln"'O"VMilll Al5cxllafJQn ofRBALT'ORS., iDlld lhe Ic:IcAJ loatr,)' bDUd t'fF OAIICICwiOn
c161i,a"'I<:d toy BrukOT C>f JlI mOlY be oJreed UflOn hy '1", pAl'1I..R. WhenClvOl' 8roker I. 0. mamhllr t:tf' IlIQ' l1:DI ......... n'lP'nWaOIl ....l1lgh NXfL';1'O'I' memhal'llhlp, vt S&l~IPCfllOn in
fillld or8l1nil"..ullun, fhcll.s.lCKp('.nl;'ofl nlP'R'1 thill' h.flJb. I'I'liDII ~me IL mcm'ltor and (lAy .... U1'd~ nqutfeG by wet\ tw;smbcnhtp. 'ettlkol".net SAlihlPOROn DBr.M 1(1 bo bound
by ttle n.\Ii!!I. o~ t'CIlJU1nl1ron. of IIUah "~llohil..tlcmi\ {fl;:rlnlnll1& tn 1lli1hlcs and "l:Inf;lClf'(lI fA' QOnduclllnd prQCC(futll. SIIIClplII'I'Q!l-.:JkMwledG;CIl pcllll4~n at'.. r:\>mrIJI....P,Y of
11", Penn.yl".n;'tI Roul BIotAICl r..IClonal"8' Gnd Rc:llllrnrlnn ACf, !he Rul... end "ROl!jJlIIC\lio"" rot the POnftllyl",Dnla Rllld S~tlI(e Co.n.ml...lan, Md ma Cooo 0' Elhicl or lito NZlltlOlnllf
~~~:.iIlPOfl n( REAL'I'OR.,fil l\nd IIg-r"CCII to bo "p(:!llfted ~r tha prnvlllon. Ihl;:l'C(lI" sq ~~,,~.Ie;a~p" will eoridUOt_ all ~h:l(l_ II'j II MMner ccm.~ "..lth MlCh 1&...... _l'\(1
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Sfllcllpol"llnn Kho!1 P'IIY rlto COlli ot an,. real "Illlre ll<:81'J1e ""'I~'lred by thl: prlO'Vl.IQnJIf nr ooy law or re&lllallon nf"'. Commo""'e..ltn or Pe.""lI)'l'YlLllia. SI\)CMpc:;r:IUn sbnll furthl:r
omiure tllltl the ~utrqM,", fur 1\~11ml _'" '" I't'I11 NblllI: '1I11l~on by me Commonw.,.lth nf J>.nnIl)'1v:an1li MOO &ol.illfil:d In ovary rcspocl. ITlcllldJll1 tho rimely tilUlIf'ilctiofl
of mlindllf<>ry OCHttln"OII'l' o.lu,.,tioneJ rCcjJul",mCflbl. S"'<<peft<ln ..hill pay.ull dlle!l (ot ~rl"lp In lhll ..Iooi.tlnrlllllet fon:11 In Ihe proc!!(llns PN'lIsnfl" or lhl. Aa:nnml,nt
111' Um.ly m.blQn And IlhaII po,)' c.U IUCS'~' mil)' he 1e."lcd ~pnq tnCUnic (l'/' producdvllY b)' the fedcn'l1 &ovafllmelft.lblllntGmoJ R.ov<:nUII Servlce. tlul O1mmc.mwt.CIl\h af
Pennsylvania, C)I' any Jccnl ml,ll'1icipDlIty or ~I'dl$triel Qrnlllcr "wah t4II.1llt O\Ittmri\>, ~udlnS WI n~ llmll'tld "' incClfM IfJl:CI, oc(:lIpallun and oc:oupotion pdvl~ll r",wI.
JIC" C~UI Wk!!'. mllltOal\1.ile <It bluinc.q privllllll;: t;Ul.ClI. .
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Sl\le.pc(tlnn shut fup,/fi 1\0 tL\\~'.1(r bind, .,bl:Ill'lIe. Of Ctltl1~I:Broltc~,by any p1'ltfft1S6""- rapf1llOntatkKl. \In1"",. 3pecillCII.111 aul.tlOrlz.cd by Bl"(ltcl' In wtitln~: provldod, how-
eYer. dill', Sutet.per$(\n ,hllll ...d t. JjCft!by .fIlIl.hnrl,*, to D~te 1I11~1 RttaClmllllf5. bti)cr R&'etWY C01lll'l't"Olll. tell.e mUfl..a:ement ..ontf'tIClll; II' well U 1111 ;..:ldendll Ilnd D(tn:ll:l~
!"ent'll 'pJlI.ll1c:n1ln' tllCl'C1g tor mid tin bell..l, t>f ~roIo:ar w1MN.f1.of :tn 'Conflict with Bmll:er'i; 4Fr1C)' pl1loGtklq &$I pn;tvided thII.t the t:ammtuloft l\'J\Iol'l'lll.t tl\ ""11:\\ tJ1I,nlUlc\ion
\I no<< Ie.n Ill4tl1h"t deumnlnld fDr IIUQh t,.,n",,,r::(oo,,- IX' .ll4.....1ec b)' 5fUkO'l". l'rlClil' tI:> en~rina into Of\J Iud'! contrl'ct or lIJI11:c::m.nl, Sllli.')Mltkln ..h(lll dc\Cl':mlnc the q:cncy IInd
fNlTlaa:cl'Tle..l pracll.... "f Bml\.~
1,0. 8~, ~"" Omult/.on, ./)<<I#......,cr..
.Snlcllpc".Ofl tt,",1I (;ct:Opcrra\~ euUy '"11\.... B"*>O'I' in nbtn\nlnl!( OrfOnllln<l Omllllllt.lfl.l aaverne.. In IU1 NnllUlle, and w1(h (lodlletl.bl~., .1\1111 fl'Om t1m~ I" rime: L>o cJal'c1n,lncd to
Broker. fi.:tld Inllurance Rhllll jIorotact SnlOllpenon atcain't IIl1tlillly whlCbmll)' IIrikl In connecllcltl with ll1ll-oondl.lotof 51.ll;l.lllpcrMm liS IIn DC'livl!- real eRllfg UOOl1l1OCl' SAId 11 Y
nl' J'oll~I.' .hMI <>ontlin an Clndw'"clJl\JnI n.mlna: liIlIO~ ,,"d .r'iY "nb.ldllll1cl Qr 8m1l:.r IllIUl ",ddlHollaJ Il\I"'fllli.mrt ,1>>11 nOf be AubJed to ql\UU.tiO\\ 611-Co::P\ ~ m'J'" c)'
Qt lefl ,JO) do)'#! torlor wrlnlllft nroc:iQe tn Rrok.r. ..... oortltleare I>f wd ll\tlJ-l'~ IlI\~U b"i'dtipoflh~ wkh BcokCl" on DI" bli!fore lhe ..ifll(lllVt. duUlllrW Qch ~WIlI ~(lf6 of~i:
A&~'IH. Th~COIilaf"al\hll"~nrCnOCl ~hnll ba. 11",(1 pll~\'unt f{t Ifl.o; ""rlu..n poll..,.. lit Brctltc.r. or, In th..ahll-.n".1"-rt.c)f, 8uchoall' 05"11"'1 he. bomll! b)' U1'nklWAnd Snb CIn
In \he ".rall p..oponln" .. tho)' would ",,)rm.1ny ""0", in the .;::o"'mhrllllllm rl:llllll11nIC t'rom . 1.U:lln* And .ale at 1\ PfOPctly n~ j" $oCt lVnh In. lhe Salclapml'm r.n,",..,b~tOl1 5<:='0
.
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Received 11/28/2005 10:44~ in 18:24 on line [12] for 4659 . Pg 9/33
11/28/2085 18:42 717-761-8923 JGR ERA EXEC PAGE a9
... .......~....,."'....-.~M..,.R.......'If/Jl"ornw.; - '!.. ,..r 1.,._ ,
s.JOltpllraGn aGreell Ih"l ,,"y end fill U."... ot proparty,.~ ~ n6 11I11 .wnQl "PeL h~ P'11~lon w11h tbo IMl _~It buabaaM obllU bD In eIlo nOlTl~ ar l'rotat.
U.rhtp and afPllQ' cOrnnctJ r1tAU tIO lJJiId with Brokwwlthln tweaty..fQur (24) hdu", Jr. rlic'etl'i 11)' Sltlecp"nrl. ^D IWin.. and *&IInDY ~tnc'" ""1I1l be and T"ClD&t1l "-
IIllCluaLvo pro,port)' Dr IImbr. All oorw.OI1dan_ ~IYDd. UOpWl or AQI"C'\t.8ponC!clllOc W'du~ p1..., IIIUnllnfomllldoft. l1WClonnd&., lit,.. pJUJtDV'lpba, l'apor\I. _el optn.
101\1. aQCJnunttn& lnfoJ'mDliotl, anc:l any ."Ii 1111 oduIr tnftnlmODc., dQo'lltn.... 0'1' informlldon of QIl.)' ~ ~ col'lCernlnl ttllD&al:>I:k)1u bendlad by BrbkClr c;rr
k*~ <If' joInn')'. we Illd .,-..11 rematn 1he pmpcrw.o( Broker pl'V'l'lded !bat s.ll!IAp~ . cntlded to .. Clopf of lIUOh m.tI\lmlnr, lUId lnfOnR&l:Wn upon rcalKlnPblc.
.roq-- Qonounm, any tnInMOClon in whlc;11 belAhc I. pvto>1l1l1y InvolvllId. ThtI paRtolt t.r.to ,hall mutually IIJIpIO\'e and IlpM u'ACln .11 oo'"*~ from the omCIl ot
.rnWr ~~nI~ to tnl'\';DC('l<>>!1l h,AIIdl<<l 'oy,~peraon, and IhOUtfu.J1!\Ot..~ on Che t'DInM ~.be l1I!"1a"" the oOnmnta of all _~ end od\w tocm.. ~~ U1I1lY we
.I~tlil;.n h;'wldQlllo\naf.tl:Stil.&nsturll:....~". ., f-' . b.Y:--;'-"fo\ll\ ........ .:':~ '
'120.",-14 .', '. . "'::'~~"\~l~-:~)..l "{': '..,.~.",~ .
All ~IIU t<:IQa1Yf:d' by S.ll;lllpClflOl\ tn the ~oursc- nf" ....1 OSllre trAtt.~thWl' ot Uft'y nll~I'lllIbo.U ba. 1m.t'tWdl~)' '~UferTcd lQ Broker I'tIf lIepoMI pr.,",usnt 10 l!1O AGt, tbe
P..u~ M\d 'Rce_\tItiOd of l~ 1t.ool B_utC\l r;;:ommi..lon and the qreomeJll of uw'partio. 10 'the tr"'IIMI1iQQ;'provtdc~ however, dill' lInY dI:pmIll to be mslf>lllll:led by snoel'llr
I:x'vker of n:rool"d ptll'WIJn' 10 me Ace, Rulllll aod R.OJ;Clladonll elf thlt Heal 8e1ftte Commk,.loa....,d'~I"Of the ptIrliea'to "l:1'VJSIlCUon .Iull! be imltll~dlll1*ly tnlm'mT" to
JU:C:h,~.....rWJ~thc~~.~nQdce!athClpcnon"meJcln.~b,.d~!??~C~~!r,~~~..,,"',:H'1..;t'I":';~",I"."ll""" '0..', ' . ......
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Sa,1U1Hf11M,sblI.1l1Ildomrtft)o and h....td Vrokor t.nnJ'1I hm l!I,~,,,,(I *" '~,lI1ll1ll~ . ~.., .1l1l~Wi~ ~R juqfDCMb, ml;lludlnj: ..tu.m~'1 fees. aria/fll ,ftom lho fntendl)nDl eu-
recklc" ~.of ~lpf*'lOI'lo or lleta ~.I=" ICOpI of &~;l"U~ty.;Wb.~("~~,S'r.~.dlt.~ viP" ec-~ _ \nn1lllCl;lon In,whl~ .lillleJper.on WI&
in'YOtVf14. tha pftftioa l\CtMo atll'Ill wwtusl1;y ~ wUb GACh Qther, fii ~"putJ:l,.OI' 'uti~QlI;l: wlMre 1IJea'a I~ lI; cilttm to ah..'~ct IhM S.lotpsraott hM ..cted JIIKrttlcnIlU)' Ql'
roa'dQlJflY Of' outeidc lhe. scop" of Saleapenr;Qfl.' audloricy. S'I~on .hell bur Ibt: COlIq, .xpmM.1IfJd liablUdea Indlldjn.jb~cmhl N1d lWfllrd. "J1aIaa fmm l.I1c llJIJ'Ufc
or 1I1Ipdon,'l~, dilpatal nr )jCI,aClon wh<lRl UMto.k . oktm to lbo, ct&ot 'Chat Sal~n'h..'aar:.d, n.IeJ't1Yi .s.I'lpIIllo. 1Ib.1) thNo 0a a~ ~ ....i1lmbU\.t\1la
!ftoludllql' JlIdpneIItIl .nd awatt" ariR1ae fNtft u. ,",p\~ or Utlp-non, BlIGh wharlTlII sbllU be la the t~tn. ~oa .. the dMIlk:ln of ~llIfiQ11 wu. CK w_lc1 hi''''' Iwlen
from die lUl:!jeot U1InIAlCClOft. 1lJQ eJt4rift& of' -.ce, D;l*\ICNI. Ind JlobilJtiOll -'heJl be. w:Uhgut pntlurJlct to BwkW" r:I&htll o( Il1dem"ieolld~ IIDl... thoro hII, bHn " llSIIPIu;
lIon of tho lndt;mmlfioatfCllllaua bctw....n..... pIl.rtieI; hen>tQ. Bl'Obr "h.ll f01Kt ClouttlMll no reprpect 8.JIok:cT'ellad SaIClIIpan(>q.. intllRlllblm JJllpt:l.:m with oo,tlI 'tlomo b,- tho:
lI'artlDJlln proponton .. -=t: forth obo_ putllhlilDl till tho ebRrJDI (Ii omlte.
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1'l1js Apec:nn:lln, and 1M ,.la1:kln'-bllhl;i'.w~ .....by. "'''';S' be tamlIMmJ.b3' O'\I.b~ M\twkc.!l;<;;,1itf~. ~1~lJt C'IHI" :M'Qrly'itmlhrpcm wdtten flOt!OI: .uii<id'uwmtrilutOft.
Un oil&>?t.'~tlan$ ~~l1ICIIC'Cd 1))' 3h1M~ dunnl eM tt!.mt q!.t*.A~"~~ W ~~~,~ ~,o\:~ IInd w\~~udi""'If~llti\.T'I.Co.lUK1 ,00oplC'Otian b~ .s:.IQI~NOft &tI
is -rolllonil.bl,=,'ul'l'de, tile cl.fwms1a-nCtIII fOf UN! prolection '()~ 1b'.~ll.t_.. .of CbS, ~ ,!' IO,~" ~.." "~~',tT~~oqIt I~, VOO.', 3aJhPthoTl.' gpo'n lennln.tlon. .naIl fUdl.11ll-l
'Bn>bf'WI~ i:I bml& tki. tI,t 0' 011 pr'QIpKts, IeIdll, Ind probtlble I(lI:IJAlCt:\OI\l'deh>ldPcKl6Y s..iaP~''''wc.ll ",...11 c~Rbec: 10M 40CUltlantll dOlCritled Iii Plrippb
J I Ilbo.w.. whlcih ftJ'C deemed M be Ulte pI'Opllrty Or Broker, S.t.loip.,.'~ tdrthar 1II1irl.V' '0I_1!:7.!>r) ~lIi~aU4 tii tn .1\tNijMi6(m lfu:rQgf, W.be w\.Tl nt1f f\K'l1U1h Ie an)' Plrson.
firm, ~pl\l'I)' 1;)1' wrpanuirm Inlqod In 1l1ol'lAl aWl! bUill...." M'i tnf'<<mlllflcm ,. tIO'Bth1Uo'r""~It'cn6. cRlMisli1.n., proj:lI~nldl~ P"Cit1. tetml 01~lIdOnll nor 'B7flQr'I'pcoli_
.;;k4 or ~M.IQJlllhtpl whh cllent:l and OUM(lU\4l'I nor- any oUJlr lnrunn,!~nn COllC*'ftkl8 Brn'Hr fUl~/f# bll/tKlr "'Il.I...... $&I""Fcaoa Ib..1I not, .Rer toTmlnll~ ..-.r thlt:
Apr..".."t, or in iOOn1cmlpllMlon t~', ~OWl ftom the files or ftom dig nttk;, Q(B~ "TlY P'LMUIaI~ dsll, P\lbll~tJ.onll. eqm::lJ~e~cc, "ICll O'f'int'~tlOl'l thea II p(09)
or1)"b( Blokei'. S.1cl(lu,Oft IM11 be entitled to' eapka of c:ertal.n mlltn1~'~~I'~i 1O uuUlc:tam. in 'Wh\U Solellpono...... h;ii -. lxono' t\dC ITl~ or peWi.hllnlla ~.
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Upo. lIeTml~. SIllM'Pen_'1I1~ of c9ffirn"-")on on lItIY 1nm,sQU.oJUI wlrenl I BmlCJ CQllIract md.", but Ule InUllCI'thm hq not g1~, .h.U. .ft.r tillie-bins qf lIogh~...
oc:don. be ~Id to SlllMpIlDICl'rl 'n nc:corl1 with tho 3mt:ponon t'omrnJs.laa S~~M," in:'effc(!C.~.lhc'.tlml ot lermmatlon. Tf*'lI' sh.Wba dato1l,1l:t.-4 ~ lIlJc:h .tJ1Il't, bowo-m-.
. ~TlI ch8rp ot' S 01' _ 'iIo .or thO IUJUNlI1I of tb'll u"tfdj 'a.rl:dlljl'I"~' CDinmi"k1lI, ~k:beV~ II'h',,*,. No 4Omm;uldn o1\11T'then 1M
!haM' prop~rtI~1I on wnIlm 11ft CtCP'CIlllrtOl'lt bU bocft :tI1$1Uld Ul<1 acCcptOd in' ~rltl1\l'b:flhd~1U'~'d ~net'lm 01' bef!J:re Ultmlnatldn'11W) No decrilod ~itd by S.,..~.
unl."" o:rthuwl... "petd In writ:ln,. J.jkewiJla, lie> cmnmiNloa ~lIUltln. troriJ'the ]lstlns''fd'''~rc.: at tlJt. rcm.1 af property'shllll' be p"'<l to S~ follow1ria thrisrin.tion
with the cxcI!pllon ot'r:ommi_I(lftI arblft& &alii JOllieD fIll1y _!lUted: prior to tennlnulQJ1 and w lbe excant thlll )CISC pa~'n! ,..eehoed prior IC:I taTJn'lIoilJiOft. S.lallpu$<'n
,h.1I nOl, how"vet, ithlR'l' In theeomnlhaionll paYllbl1 I." tho &'turo .."d ~~ u~n tht. ~1"~..optl~.OJ'bM; pa)'!MD1I not; ~~,dllcl.andl.'GyGbll:l. . , . '.
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UpnnlOTmlnatlonbycltho1"paYV,Sn~n..hllfllmnwdlalOly!' '. ,', ',""" ,." " .' . I" ,
.J $\IbmJll1lotllorgfIonnLnollon...,ltb.oompl_.ocounll".'DfoommiIlI0Dsl.6lIti....lm"d'~ieUeMt.;... '.' .... ....:. .... . '.
\0) "I'lum a1\ IIlJppl~c', ~14ltKICUl(Qmcr pro.P"C-C 115tl, key. IJTlJJ doc:unMllU oan.ldcrolt ~ OtSMlulr PUl"lu.llf to \he pl'l;)v:hrionll of 11)11 A&JOa~aM; ,..
c) moct wlch lIroJc;.r lot PlUpOftM ut .w:mplin,II)'lTtutu.t1y .pt'" upon . ftrwl,SllCIRllIUIlI of comnrl.ldon. 4ue 1UI11 pl1yaw"j
d) lXIDp_ W ~ nodftc..clon m: the 1Ual,E~lItC1 Commtu!oll. naudln,'1bc ~~,~on, dt;~ mtatio'!~p 'O( B,,?~ emS ~1.1I\1Jp1l1rWro.
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Ol'l'lSHltll-mtonb of dl""ot" to.CWDIlO S.I"'pgnI.on and Brokior. or botweeQ Salesp$F'IOIJ and I Il'Ill'"fU.IIJ ~,U;8l:1lItaitld ",lib or conUae~ to 1I1'(t~, 1I1MS whkih ori... aut
of, 01 11'1 OUnnaotlon -..:iclL, ClIe ft.r o_Ul """iaR" and 'Wbloh _ROC be .cUualCd by ...d boCwl:R1 the ~ t1NClfved.. llIwl\ ~ 1\l\)ft\i\W!d for aIIt1knI.lllOn lJI ae.cordl%1ClC1 ,.,llh
Arno1e xrv of OlD Colle ot'Bth,o.. of Ill. N.lional AMllgh"don ofRBALTORS-. by d)i, ~nt laid .rb11~arlon .b.1l11 bre rni.ndltory..,d BroMr and S~ .~
. tn pl'OVl"- n wrIttlrIa .....e_IIO the loall ur.oot.dCM'l qfR,SALTORSC" (UO ma,- be. l"Ilqutr<<l try'Ald all~",IM/Qri Ilfa cOQ4!t.loo pre.codonlllg arbUnItIon, 8ro_ and Sll''''po,~n
ql'8D (0 b6 bound by the dcr:l.lon oftbll MbJ_rt..,., p~ afth, loolt UlQllllllo!t"'Qr eM PeAnIlylvtml. ^,,-~hJdon.,f lU!ALTORS. which tills enlDrtnhwdlJJe dUVUlc 01' dl...
a&Ne~t, Tha CGndUct of the AtbiU.m<Ml......ll"... p~ by tho ea.a. ., S'''tw' CIIn" A,*",,,,n.:m M........ dlOlt rKOo.tly publlllhcd by the Nl'llOilcU ......ltOl:latlrm of RB^Lo
roR.S.prlmlOAl'bilfldiDtl."llml:odcdb)'lI1clOcllul~adont..,.~Ut.4hPU~ .~, ...,; .... ..'. .
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T1\I~ ApcmartE .hall "'It alMU1lOd by IU>d i"t",rvt'cc.w putWo.l1t~ Iha 1......-" ...._~.oith Qf PIIl1m~II\.
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1lIJaAsn!OmGnt ,t.lllln_to"c btc:nUItllndblllolnd1nJl; upon thc IIUCCleNOU in inten::..C;J(J:kbll;;er. :TbI,Ape~I,'~ll bMe<:l.Ol\ tt\o:l p__llen'>C~ otSalq~
~ Sf\~ sh&\\ l\9\ Odopte or M-.lp -ll7 of Salapenon'lI n[Cllf# or dl1~. ht:n:und~.r wlOlou~ ~I prior writtml 001,.11I of Bll'ICIkar.
Any o~~ ~*::~::';od p~~ lI\Gnunl ~~I$tl\1&~r~I~'adcJ~lS'~.~ ~~';~~'~~ina ...1hcp~~'
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REALTORSI'"
...-,..--...-
OOM'JUGIIT MtNNSYLVANJA ASlSOCI"nON 0.. Jl:~'f'(JIUle~"'"
COPtS" WMI'T'8-SIlOXJI'JI:; YBLLOW-$Al.8S~Ol'f
'''''
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Exhibit "C"
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Received 11~005 10,44AM in 18:24 on line [12] for 4659 . ~/33
11/28/20e5 10:42 717-761-e923 JGR ERA ~c
BROKER I SALESPERSON
lNDEPENDENT ~ONTIU:CTOR AGREEMENT. '
'llIlol1'faI....._IIIl'I'"' IlIllI ~~"lW.1m Illl!"',"_., _lIflhlH"*,,, IIrlJl,:Pnlllrl'lWlt.~vI Qf.t:r<m..
PAGE 02
Form 150-2
This Agreem.ent Is. ~ered Into th"!I
IMl"$iftftn... refel'ted It' 01 "Bro""". ..nd
JU d~of
..}......r~RA3
F-~~;~/J
.
... ~ ''''''..n...::r~ ~AUf'),$'" ..a:<1~'6:.e.'
fflofdnaftor rvfDlTOd In .... "S$1Il'an.nn".
, 'Whereas, Dmkllr tft on.... In bu,lnaa... Rut &tDte Broker al\d ia duly li.ccnlleld tl:I ~J::l.ga In IhQ _dyltl~ nf III '''BTO'koT' -:l ck;tJn!:d by 11\$ Pennsylvnnll!l Ucenlil\l
IlndRC5llllnUioqAot,.A.c;;lnfPclbrvll')'_J9,19SO,P.L.l".No;9,uPDCI"'d.~ ., '. II""'" i. '. "
Whereas. 'Broter malnlll.,. OM or mORl o.t'l1o. plUpCfIy aqulpp;xl with ntn1i,'litni~:liMln'. boOb .rWJ'o.her eqfl'l,"nen't'.__IIt)' Md IncldentlLJ Iv lhlll PtvporOpgmll~
of ..,Id beIlNn..,. and .tatlel1 whh olwl_lamplnyOlJA" end l~ dH:n:lb)' IUlfJl,le to Hl'Vi11l the public .~ Q R'nf .'IIU~ broker; Imd .
Wbereas. Salotlpanlan :Ill. dUly Uoo.n$ll4 by ..,. Ctm\mo~lth or ~8YIWmI. dill rea3 m....to "'....pllnlCn.' Q'I' ""lIQI:l.to' bMkDr'" '" deflnacl b)l the ~n'''ylv./l...11l
L1cenlOh,. and R.eailltTUlnn Atll, fmd wheTaa It la defmed to 1Hr 10 Ih. mUWlll udvlilttallC I1fBrolalol;' lmd 5all3liPD"lOfl to enter dtlq COQtrllct 1.Ipf:'l" tt1~ torm.llod conc1ltlOtlll bef60
Inllfl:Cl'".otfunh. ' . '.' .' , .
NOW THEREFORE. f'G\' IUId \11 c~lion at thl!l mum.- CClVCnllnf3 IInd pl'l;1ftll~ r;~t'C"l: ~R~ln~ed, ~ un~cnd'~ed h~bY enter il1tl) UII. mlluwlng ...-tic:..... of
t\,lfreame.nt:
I. IIt4#jHIIiIf.,,' CtjlflrGcImi.
The rol.donllhlp rt# Sal~ m 8roker I. tturlt (If an InctoJtendent COl)CtAeklr. In p4rlWTninB- tbcI oottvlti,," at .. ~1 DIlQlb: "".lcuilpcq<;rrl" III d-'ined by tlM Rool EstAte
UaanlllllJ llnel ~.tnlflan Ad: Q\<It'lIIl,,"ner ...f~ to l\& ",4..cf').~... "baU b.. fret:> to:) OtrYCIUl II..ah.~n nf toi.IlU'f ~imll, tlrtUJ)', -<<art. ""d skHl. fII ,""b. d__
fIJlprapri.to, In kcapll1$ with the Indcpe'".nt OOtlttOG'tor stol\... $llJoaipar'lJQ" .mill! be 'IC*~najbla mr CQmpJarln8 an,. hlnl", rcquJftd ~ tho Act 00' Q(her 1ll'W. or ,lIa
Ctlmmon.WClIhh (If Pannll)'lVanhl: Salolpenon 5IIal1 worI: 01\ II CClMrnlllllol\ ba..u..nd TOC~Ivc> n" "Ill..,., frinp! ".,ne1\.., mtdlca1 ~.fjtl, :pe.n~on b.8nuf\ta, 0'1' ,,",At IIbui:t~
no ltCate. 10Cl4ll. IoInempklymcnt, Snelal SaCllrlt)l or bWl1'l.u prlvl.... .."... (wbm"a ~I;o.blc. .hall ho wichtwld fl'oftl Sl/IlupeNQft, SIWu~I\,.haU pa, all l'~n.1
llceNl1as hGa, ~i\ ""'IS oml'lli\\Q1U \1!.stlTanf,;e premmml (~pt III olhvWba pnIvtdad horeln). .mulu.Uatlna: rae.s 'a.ndfor compQllr aooe81 Teall. SakHIp........n ....nl1 not "-
tl'tlOtcd 11" ltQ empl.)I" with respRd t(l ... servh:ea: pnl'onDcd "~n4cr for ,..,~ nr IrtMhl U:Ir purp..a or lOr purpOQla undft" lh. Wttrk...,.' CnmP4'U~tI""D A(:t.
2. 3.,,~
S.lC11pOr.JKln "'i~S (0 DetaSlll1lndop6ndcnl (Ct.I1 MtlltA ....lotpt:rson 11M .11.1111 fQiltlfully.IClyally and Iqlll1)1 cni_iC lllafhcr Cffonll0 sell, ImClId, I$",e ur 1'11"' II")' ..nd ult renl
utGto lilted wIth Bmkcr, '" IUllil::lt ItCktltionalliatlnl5, C1udOmcr. om! c;lIa"llI fns 'Broku-, nnd 10 otborwl.c pI'O(I'Inte Lhe bUKlrJl:KIl ot IIervlns: rlu: pul,lllc III roo,1 e$l.,ll truru:;PC.
tiuaR tQ Iha und ttlal: cnQ;h af eM pa1'lid hotot() ll'Wy dartv." Clio gn:nl~ profit JIOSslbl-.
3_ 0fJf- l4w"UI..,. .
Braker Ilull I'm'" tIme: to tim" d..ij;nlltlll the <rifi<>a wilh whl!>h d\.;. Slll,,,p.....wt ,hoU bIS II.UQl;ll1R1d. 'T'hal. om_ 11..11 bQ pcovldcd with 5lK:h. rIIml.IUngll .and uqUlpml3nt oW
dl:l>mQd "GGC'MTY at ~_ dlloCfe;tial'l or B~ far ch", pmfl<< "'l'W"tion 0[. (I(IOj Oltata o~ B_"=r 'IIh-" mUc _U:tbl_lo (no &lupotaon nil e;um:mt U.hllPl at rhe .,f't1e<!,
and qreltl.. ~pon t'eqUdt, 10 ...llI ~ S4dtlllpcnlOl1ln hlJRK!r work ~ od"',tco. il'\lOlnI.ution, and ":OPP......timt. ~ th\> ~f9Pt d..ageI, ,appropriatCI by Drvlax-. $al""'v~on flhnll
pity ~or 10110' dillumee t&letlhcmc: chD'lfC"' and f'QI:' 'IoucII ~ toemc, equlprtfomt, .lIf'PliOll .11 Ilhat' ~.,ICI;.lVrth In Pro.'. written of:Rco paltolqa.
4, A~IHh. . _' . '. , '
$illclll;lCrlll1n IIh11l1 fltr"I*h "llIhlr own IlUtomObDe anll pay all ia111-lI!d ~IIpCt1..ClI itntl 8mb; 8tu\ii"hlVe no nllpOl'ltlbill1)- ralDtinll"'" S.ICllpllFllOl'" tItllOltto'elle O't t'"n;purtarn.n.
S.lclIp"'f'lon 1p.t:.W to can')' llnblljty IMUrvn~ IIpan hla/har"'lttIml'l)111r wllh mlnim\lm lIftbUil)lll"'tl1l ~ S300,OOO for aaeh p~tsOn Ilnd $500,000 rot' ~ ,O~dtmt aOO whh
propcny dDmflae Itabtlf\y llmklt of :uo,oan. S.lcsper,.,., ~rur 10 'hfDlm Bro1cet' wlth 0. eerotloata ~t'yln, ~[I\i~ w\'lh thll "qn~reMOnt 10 bG dapolluxl wllh Bmlcc.r
Oft or- before 1M cfh:ct\VCl dale and each rcncwal dlltjil of tlU. AS....m*'lt, 'Or iIlIl.Ithut d~ 11II, "row mil)'. raalIOnlltll)' tt'Q'ICIIt. , '
Sol.~n ~:u~a:=il'd "" '.. ~hU(:: af lhG <<'I~IHion. .atMCI'~Dd n;ecl.vt;d bY ~rolOc::i -in ~~:ancD Wl.tlllll"Q1l:U" '~~~~s~l'$Qn Commfsalon Schedule; i~ DlI\:ctll1l die
(tIllO of 1'- ICt enddia. SA~Dn OJ> a CfIOOmhq.lon C....... obtnlllina- Hsttnlt pieclroi:: propclty undc;r II&f~t or laic:, etc.) '" .1 cd1_I.e aal'CCd by the; pi.nll;l In wtidn~
Q$ to G pordeuJ8r W8n"lItic",. Bmkcr ma;t' aher 11.$ ""IeIlpKfOr:l Commlllllun $gJ,.,duICl from dma to thao wtlhO\:l( ,PI'tor 1I0tltlCl\tion, IU-viaioM to ilia IICbcdulc MaJt bI:llmmo-
cliately -.ppl....bI8 Ioall ftoturafran'!lepOI'II. 1'11. di't'jlioa of c.on::uuusiOl'lIl ""tween 8~ .nd SalClJljIl;I'lIClR .1uIU OOUQ\Il' ~ I,}( Q11 uoe~ IIClaDt"dl.n. fa 011I S~lGIIpc"(m
CorItmbtiic.n SlIhodull1. 'in RCI CIIl"" lfh_U Ih~ bet .Unblo to SalNpcr'tm lor any C1D~millllto.... nqt u"l~ AlIl;Olnml.don. dorivtld from . Crl_t'hm IIh&ll be dQJIotrlrCold
wfth the BTnbr o. rc:qutl'Olf b)' the Act .lldIot RuJu *>\d RtJsu!atK>ns of the 'R.c:oIl 2at~1;\I Conlmlsoion fIt.ld IUbaeqUUlUy pllid IlllDClf"dtnJl ht the $atCllpCflOU CommlNlol1
,Sahodu1Ci: 'Thl. diltl11:1\.1'lon Ibn.U tolrAI piau .. loon 411 prapti_bJc _o..r' C(>lIactlQlt "nel '",*pt of auch ~j~. JU.. unck....tuoci .nd ~ d,..t ~ S<<l..ponon', ortly
rlllnnnllrlltlon fOff tM IIff'Vlees bai,,& .....dCll'ed undar dtta~( ~ ~ S~~apa._'. $h~ Of'M cortm:MhllJC1l. paM by l~ partice to ...... 0Il>l.tc tnnllteJ1on..
. "6. 'ClUit;Fhk. '. . : ..:... .... :
111 JlQ eve.nt .ban Sal_pcnKJh dt...SO lUlII th.n thc cl;JI1lmiaslOll 01' roe. Nt6b1ithfld b)' the DrokCi- Vrilhnut the prior wrI,",n COIllent. or StoW, U B<<Iko>r d..n ha~ ~ mt(l
Il.I'POCio.L oontl:~ 01" _atcerm:.nt putaitd,,& to;my partlc:ular lI'lUlS:lCtlan. lJrgbr ~hall IIdvllOl:: SalCllpC11I()1'I (Or 'lie" $p.ltcllll nrmft.lfllt'l.m. All aOlnmtu:lahll ana IHII f'Mm III J'tII'<
th:ular tr.aIllllCIlon ahall he pII)'.blc to ell. Broker. Soles~ sht!ll hill ~ pll'llQnan;t' lI11hkllO J;troJter ~ any e;ornnUnloll8 '!Dt -Wed h)' "Bmkct' fmfl'l JlllrtiC' Ie G lnll'ls..
11I;11011 anle"lIuoh nllnpll;t'mtlnC I, die ",,'lU Or conuJion, JnnmdanlOl ar ..oe):leII~ annduct. B~1cor lhall Itave Ih" p.cIUIIM rlahllO dgpmnlnu whether III COfflm~ nd8fllfol'l
[(I a'Otleat . OlJmntillftian or tQo, or fa ~I~I .IIY claim ror thcll\llllll', '
7. BtIlks6",47'rm1."'1ftr~1dtUm6.
S8lo&spe..-on aad anlkar ~hllll Dflnduct bY.WaN nnd "'a-ulllto wgrklna II(;hQdule. IfQ 11I110 ml\fnlQln and 10 matCllllll;; tha ,sond ..-lll, lN~ine$l, proQl.&,. an4 r~1I ('f{ Ihl:llwr
IU'Ml '!f~:hS~"~OCI. .oIl.nd u.",h,awca." tq 't~~ \9 .to" .'0\110 by all hi..... nokll, 'J:lli t'l:111)adolM, .".:3 ~e oI,.t1tb\cJ11lht &to bindln. PD, 01' IIppllcublc tI:l, real ~ l)roltulllnd
'..ae.sputOl'l~. SaJDllporlIlIn and lJl"OlIU Mall be aovomc:d by the Cnclc 04 Schi.c. ot1ho r-ratJ'gpaJ~IOCIt.d01\ "fRBALTO'RS., dUl Alo"t. Rulotl .lId Rcs:ulllrtona ofllle Real Euotc
Commt...irm, ... tha a","", may b. rftIM tlMe to tim.. amc~ 0(" a"pplemonled..tIio Cl,II\..tlrudcin and bY.IAWS or lho lOOtlll'l3o.ll:)' bnoard (tw .IICn olhu board or mlwetallnn lit
lOlly bu IIlJRlod upon), .nd lhe rule. alld reaulldnn, of <<1))1 mumI'll lirtln<< ....rvi.... with wni~h StoUt 1IU\)' now or '- tho ft_ be IlImlhued. BI'Qkm.lId Selollpcll"tOn \lll1a11
TCllam memo.nbtp In ,Jood .lIl11nd1ns _lth \hcI Natloae) ,A.saooStdJln> 01 RB,A"''T.ORS'I, UIe_fenll.ylYl1Rla~chl,lo(l. of RBALTOI\B-, and thalt~ll"QIflry bo.r(I or ~.IOcl.tian
daI'll'lltt8d by Broker ~r'" may be a.",Gd upon 'by 1M p.,.!otllI. Whonevot Brokctr ill A .....---.h.., of Iln)l mol ~/I"" (>fpmnttOCl which rcqull'Cll mombonhlp of SlIIOIlfMQ,t1n II!
Illlla UrlJllnl"illtlon. lfIc:nli:llelpot'lIOft o*"eell Cl'IIII hr-hbr: "-hRII ~" .. mornlH-r land PQ)I' I... or d..... "''l"i'"'''' by ~"en m.mhM\lhl(l, Ih'a1tor.pd SolQllpcr_" "&__ k) b4 bv\Ind
by tl...,. ,...11:'" Dn~ !'8C1.111tioll, of....h o~. p\i:.~~nl.il1l1o etl1l<m II'ld Nft<'''!''d' ~~ c:ooo'fCt an~,FOCI:Cfurt:. .Sale.pet'tOl'l aek....uw)QdSOO! ~..IItlI.ion of Q QumClt 00l'Y nr
"'a PaaTl"Y1nma 'Rail ~mte Liee"51111t and RcKllltr.ltlDn A.a, the. Rule..' and Ragvlatlnrt. of rhe i"It6nll)'lvanlll RaRl Belate ComMluion, nnc.llho Cndc ofBfhlel or tho N.tlnllal
~::,iIIdon oC}t'BAI.:rt;lRS. nad 14V<<iOIlIO be app'I,<!c\ oflhe p~J>>km',~~reor'!,..lI1M,S,aJ,.p,u'on. v-:!Ua()~llClt 11.11 ncrtvWeslp 1'1 rn....no:l(" t3Cl1\_llllel'lt with welt 1.._ om!
~, Ii.", BlUtH Lk."1I1 ."d DP<N. ,
Solallpo:ll'S/)l\ Ihrtll p.fIIy m", ....111 nf .n)' renJ able lI.,oruc """I"l~ 'b)' Iho I>I'<'vt.lo,,~ of _ny I~w 01' l'CIillllltLUlI of the Cnmrnoowe4ldl af Penn~ylv.nllt. SlIIosptm;t'Kl Khut1 fun.~
unlur. tfmt the ....qllltarncmlll f(lr lI~p,ur$ ~ .. RIal C1t~IQ. ~""'t'~ by tho Cnmml.)llwealth of hnl1KY\yon\a IU'C JaIl.f1ee;] In every ~J1CC1, IneJlldina lhlll Ilmal)l ~.cl..flw:tlon
of mandCltOty _r:IftlllnlllducatiOJtal ~uin:;m_tl, 5alo'l"OI'lO[1I...n ('III)' .IIn duo' fin f>>Qmbur.hip h, 111. unociAtlonlll1lQt rarTll l'n the preecdlno; pw1IEtrllph crt 11111 ^lPM'mtlnl
In.. t1moly rllatri')R llnli MflJl pIIy elllaUa fl' may b.. luvlad u~n IncOlne Of' prud~tQ' by tbo r.dernL auvammelnl, Il1e rmemo) ROvc:nua ~lClrvlca, Ihe Commnn_nlth of
Fun'll')'I""".., f,K" lItI)llocal m\J,"alpnllty Of 1ICIhl)~ dhrtrh:1 nr r.rtheraul,lh t"..lns a,.th<IIrl'y lt1<:lUdinS: bul n"" Ilmltc:d 10 \t~ tlUi..... ~pI'Iti...n Itnd Q"cupwlc>n prlvlle;.ae t"MIlI.
"ar c:arIUI~ mert3l.lIt.tta at bull.'1".aa privl.lep tu:ClIC. .
9. "whorl". tu Crut/rar.t._ ' . ., \
S.tanpcnOll 511011 hllvc no eulbOr1!)I 10~: 01>118"" or eommU BlV~"!it)" ~ p,\?,ftIi~ or rcpre,.1I'Iltmlon, unto.... lIpCuj~l1y 1l1lthorU:gd'by Bl0lrf.f i~ writins; ptavlde(l. tl(Iw.
ClYt:r, '~l SalOlpcntUn Ahlllu IQId l~ hereby aurbt\l1Hd to e:uotrta 1Lot1nS IIlIteClme'llll, bu)'or .Ionoy COIItraotll, lc&W lTli'lnft&omcnt lX'ln~TI, d~ well ... ..!1 ltdoendA !In.-! .;l1:u.
memu nppurt8nDnI1ha~'O ror nnd un bt:half01' lll"Okcr where nqt In eori1lict with 'BrClkcr'. 88o&1l11y FItOtiat;;I IInd provided d",itba oommlall.iualn"",lvad In ,uGh trGn."actlon
i~ ....tl.,. th4n tl1lt dau:lrmlnod lbc IIueh Irfll1llnetlOl\ 1'lI" Hcrvle!: l.'t)l "f.Irok*t". Prie>rCf1l entorlllg Jnlollny ..uotf COfltrAot o'C" alVt:lomor/(, SIl.\lil~po'nK:IJI $hnll dO\lmnlnu 'me ....I;'ncy Dlld
IflllnftlOment prl1CcJe~ 'Or 8rclt4,. '}
TO. ~~t..ulo..d.~.J(m~I"_7W.Itf:ft. I
Saleltpcr..,n ~h811 _perillO f,,")' with limlcc>r i., ObClllnlns 1>If'O" llnd omllllll(>p~ cOYa'aac in an "'lW)\\n~, IInd wl'fh deO\lctibfe, a~ ,h..lI fr()l'(t Llmu In lIiT', b~ \k:tgrmlnc:d by
Bro\(.cf:. Sal,1 ''''W11lo1'ltltl"h..1I l'''~el SolGRpofJIflft nl",lt'Allll..bUi~ whklh mlllY arlllU I., c...ndCCtfon with""" eunduot (If S.I"~".... ......" nctlvo t'Olfl DIIIIIQ IiCe.n_ Saki polley
(If poUalUOl "hnll (Xlllllllo." undnrwmODt namln, Brok4lr nnd an)"IQ\nldlarlos Qf.>>rOlalr jl.' II!!'I itddltlonallnMlIlld and sh.lI)l nQt toe .ubJoclltl C:llne"IIAUon 6Il.uOp1 ~ II. milllmum
ofr.cn (10) dlYS ptlor wrltlC11I1QUeo IItlliro1ct-I', A <<rlIKcr"t'lor..ld In~vr.flQI ehallba dGpoalrod with Flm't4Ton or barQ", tho e.fl'GoCtve iliI~ MId 0_1\ _--.., Ga'9 CJft'hb
^s....m!;lrlt, 'I11O OCl:R gr 1IIlit1l,nllUT:.r\CC Ilulll be l'Rld "UN'.W,l\t la (10... 'Htltto'> 'f'Clo11'l1)' of >>T'O~ar, 01", III lho nb"unCllO rhlt!l'IJOr, ;lluch anou fl.hAII ba bQme hy Brukar end SllIlI1)O:t.t<>n
In IhClIIOITlCl ptnpnrlll:\fl 1I.11 thC'y wDo:lld nomudly mN'llln the tlnmmllJllOl\ nl....hinl:1 f,."m If Ulltnll ancl sl1lo of 0. pmpc:!ty nil hi l<C;1 in".h In tho S..tl:fil'C!'l'Sall COnt:rntlllll(lfl Sol"'<I"....
. .
Received 11/28/2005 10:44AM in 18:24 on line [12J for 4659 . Pg 3/33
11/28/2ae5 lB:42 717-761-0923 JGR ERA EXEC PAG~ e3
> . 11.. . lbtfnp, etmUfJ_l ~tl,lWfJp R..fHIrIA _fl.,...... . , '. '. '. '.-.;" ~ !
S"llIi1t*'10ft ..,.. that .ray anll.U III11iJllIl rtf~. ,,",cnoy IlI~tI,!locI .lIl1Qdon".~kerl).n FOrp1~ WIth eM ,eal ...... bUllngs., .)wl " In CM Rim. or B,olet.
U.ttnp J,nd .il!rKlf COdtnaoh th.D be ftrecf'wt1b BroliIer wttNfl tw..~ (24)'~ *"c,*&ljill.r.~ bt Sat.b~l'lIon. All 111tin.'P Ilml.sc--~ _lnII:I'. IlhaU m. 04 111m.'" ~ho
exaluldWII ~ af 1I~ka:f. All CO~~1;I1l w:~ ~ of CDl'lWlpand.D~ writmI~''P ab. Ibdl'll: InromlllUon, memoranda. fUel. pbotoar.phl. "*POrtI. 11141 0I'1n-
SOn.. lWXIOUftll.-lnfonl14dnn. IIn4 an)' ...d all other In.IrUMlnu. docurftCCl.tI Of' l~ of an, .run wht.t.tul_ oOfKllII'nlClB tnnlOlll:ltloNl band)ed by Bmkar "'
S,I_ponon. or )mnll,. m'1!I and .....11 ~In 1h1 ~ of BrobM 9fOYldtld Ihot S.lll!ltpoel"on t. entided 1O . CIO'py pf IIlIlfh Inlllnll''''"I:11 and IntNmatlnn \lpa1l ",uCll'lllhla
rcquoal Clon~rnh~ "TV tranQOtlon In wtdch 11....,.... penoaaJly t't'lvollfOd. The. P*rt- b~~o ~t\ ~11y 1Ip11'fCJY1I .nd.vec IIpQf1 .n cnrrcMpllD(lcnoe n-om ",0 otnlX! of
Brbblr ~Inln. 10 tranlac:rlans blltdllKl by SaTApRIOn. AAd' cbaJJ L'w'th8r .....DC On tha bmll '0 bo Il!MJd and die crmccmPl (lr an g(l\'l~1 ~Ild other ror~ t.fo~ d:lay lU'lI
~'a:rdtoQIlClllf4..ndl~m~fDt'sls:n..~:"., " .....'. " ,;) i """", "
'l2.:"':'~'" ,\.'",,', \.,'
All ~-,r. rooPl~ by $llIHIplA'lOn In lhe oouno C1I1 rClltJ cs&1ata tnnlOCldon 0( Iny "atun: DhaTl be tmmcdiarely UIl.tlS1Vrod lD '8rokec tor ~o.lIlt pt!l1Iuanl tn lhe: Act., the
blcl lIlod ~"kJiOM of Ow RMJ BlUM CommlNlcm .Wld d1Cl .,.-tlllmenl 0(' t'"''Pd'' <<I;lihe .,Inlactl.oll, JlNVldcd, hiCIWCVCJ", that an)' dOpcMll1n tJCl mll\nl4lllnlXl b")' flrlCll"Mr
blOke or rooc:onf PUnl\l..,.t tc the AQI., Rulel and 'Rqul"tjom Qf ~b. Re(\] SIf4te Comn\t.llkm.am1'~ont rA l'nc pemllA to a U'''llIal3l1cm IJh"'l be lmmodilte))' fl'IUts.fe:red bD
1'lll3h brok6Y willt1lho apPf'Gprl-,a '\l;lf1f:1; 10 dw putotl muklna lu<:b dcf'OIlt.,,1d IP !lrukar. , .
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.~.lOQCr-on. .hllll \ndaMQIt'y and ba14 a~. h~I~~,f""" ~ "<>dllll. o;;l\"Uro" lj'05t1. U.blil\l~" .an~ jlldlanoat., 1,,,clUc1ht.. '~" fDH. ubln, frum Jhg t-loJlrlnnal nr
nekla1;8 !,ell, ar.~al""'l!on, or ~~ ~.nc:\6 ~."1etpr:! of S~10llplDl'$O"~!t q\lUtoril)'.. ~ UriPt!Otl Ot' l1' d~.p.'!~,~n.ll. CanCl.:nnne:. t..nul1tlon In .....iah ihllo;fpGI._____
.IIWOJved; i.1wi pai'dell hettlto ahslJ mutlla11y ElApPOI"_ wjUl deb ClCb.r, [n dlapuld or 1i1lsziUon wh_ theN ./1 III cJ.,m to the aff'oxlt th.1 $.'~o;m "/qI Ber.d in.,Lonfllly or
r'lIQ.\:lculy 01" nuvrldu lhcI :9OOpC r)f Sltllpal'lon'S 1l,,~hort1y, SIl1elpOrson llhall bellr tJ.b GCIm, -.~..... \\&b!,Uu_ \noiwS\~ jw!gmcnlll..n4 IIWf1rd_ IINJna &om cna dl"",~
.Qf,ll'1J1U~~. In dUlputal,QC litlaOUon whMe there.Ia.. olllhn.tQ.lho otfbgt,1hat SIlJupawon tI.. acllet aas:Uputly, Sale8~ ab.ll ,ha.... tl'o4" OC:llt~. ~XptmllOlll ..na H_/,YUille.
jtlOJudia; Judt;~u and InIIWdIi Arllllna ftoQm me d.laputl or UdpUCn. Buell &tmrIna Iball be 1ft lb. IIlIKI propDltton .. Ihc1 dtvlld"n of I:lnmmlni('ft W~I. Of WOl'Ild ~ blNll.
from the lUl\jecc k.n~OD. "ft* lhu'.lna of COI", .Xfluau, oftd Jiabl1fths" IIh.1I bel without Fqj\ldlca CO bl'O"kutll'l&l1g of .IDdsttUll.flculott. unlan 1M", 1l.1lI bhh A tuolu.
tlon ollhe tAdellUtlCloatlotl. WI"- t.t._ tt\Q ~ hust~, JSro.\ter Jtutll ..l.cc Cot'ln..l b) repreHGt BtoleN"1 a~ SaJCI.pcn6n'. lntar....ln lItl..tJnn wid! cmu bame try ,h.
panlOJl In p-opmtion all ,ot lor1h.bcJVI' peft:lllnlnllO 'he thnd..t of COlli. '
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"tbll Apeamcttt, 'ilmd. rho re1otlOftlblp Clva.tcd heroby, tmt)' he ulrmln.'tQd toy c'CIKtr ~ hiIi:MO: wlth'OI wUttOuc cause. at any time lIpQn WrItten notlao. Upnn Ict'mlnatlan,
'.11 noaollMtortl C<'Im~ by Balll'penon durins the tcmn 0"lh1a A'~m'4b"'J 1M. hDcUacf UltcN~ BfOkeJ.tK1 ....lm ~1Ih'4lI&;(stancla .nd lXItlpantlcnl b)' SalOll;panK1n' a.
Ilo n.lIi'OnlIlt;1,. \1",* m. ottcumatanu..fbt tho ~ggt\ClIl 01 rha Imon:'":J'of cbcr: pllS1lCs to UK' J'C.DI"eiul.'re trf\ulCtiod. tM'OJved. SalCspeS1l1:m. UllQtI tcnnt1\U.ion;.""..n fumhll
'&.-011:... tlYl~ ill bcmll. fldI"1tltotlllt~. ~s, andprobabt1)l7lt~CIQ'''lD'Va1q,*, b'1 SolOlPct'8on u'weD as 011 ~pohc:ic_'.nd dtlcUTNmtl detcrlhctS In r_lJ'3llb
] 1 "boY.; whic:b... dHm~ IC' bG tho ~Clt'&m_, hlqp~t'aOn furthliZ' olf808 rblt ~.lfJrmlQQ~tn'I;'cwtlllm1io:1lp.dml ~t. lIeIsho will n01 fU1'lI1Ih h:llUlYpcnOo.
firm; comPQn;y err ~lon tmlllJpKt tn tho rCaI 0lI1I1O hnflnctl' 1m,. lntonnl\don Ilk to lkokot'l'~1I'j dtMlOhtlml, ~ca, pn~..trmns: of nagnttollon. nor BfOltCf'l poll-
el"" or nrlllCionlhlfl1 with elkn.. &lKI ouatomurll n",r an,. "",," tnfarmlo~."", 9QG,;.m1n& BtokM M<lfor b1~ bi:i._TlMlI. s",icwpcnm. II111m n(lf., IIn"" ,etmJnnliCQ of thl.
^PMtn_t, t>r in contetrrplatll"" thoroof, rc_Cl fmm th. filea or from tho offlOO ofBrbbr any mota:rt.h.,1bC&, p,tbl"tc:at1ona, II:tIf\'IC'lpOl\denlO'O, mal IX Infbl'mlllkm thllt lel'prop-
vt)' t>f BtckDr. g.1D1lp<>""na ll1tal1 b. .ntitJo.d to ClO1'i.M (If o<<taln lilNrumcnla ~hdns: rQ 1I'IIC);RtlOn, In which SIlIOI'PCIBOII hu 0 bon. 1\c1Clln~IV'''r' pMtlllnln. ,., arn-
:In&.ofS.l_~. . .' .'" '., "':., '", . .. , .
13, ComrtlluloM HpM nn...............
1Jpon tOl'l1'linnllon. Sllletp"nol'l'lI Ihl\l'lf of UDmm'"~ton on any trIIn'''CUOM ~ Do lalea CO"k*ol 4l<illobi but the ......nll.c:tion IuI, "cot. C!1o...... ahall. .ntlr thCI doclna or IIUClh tr",""_
lI~tlon, W ~id 10 l!IlIJNpeROn in IkXlOrd ...11to lhe S.t_P4tlJOP commi..ion' Schedl1le In cffoct at the dmo Q(tef'mlnu(on, 'thWe Wn 'l>to cMd1.lded f't-I)M .toClh ....ro., howIWur,
II ~I c.bar'Ie t)f '$ (It' _ 9io of die lIImO\lnt of tba Jiledn, ondfar -.1"" C!ClI'11mlanon, wh~ft" ht&hw. Na ccl"l'lmlMOo" other lhan mr
(hose. properti~ on wblgb an ..~rc:,en\l::'l'It hlll" *n _lj:nod Ilnd accapted I" wrilln. tjy the buYu '.nd IIC.II~ on (II' ber~e 1000001l'ilUion ,bllD be deonwd _mod by !o:.I""f"Ounn,
11llte\l' otl1erwl.c: fI,greed In writln,. Likewise. no commission __uJtin& t'roln'r"- Ill1tins tol"J13nl;'drthc "",fll Ofpropet1)' ,holl bo pcld to SalG&JI1n'W1"l foJTawtn61ann\rtat\.<m
with the ~ptIcm areQfnmilllOinns art.ln& from Icucrs fullyexec:uted prior ~I':nnbll.l1nn And to tilt: U:~l 1M1IMN paymentS ore re.::dvali fJrior lCJ ICrnIlnadnll. Ssle'pt:l'S<m
lIbllll l'Iot. how~, IIhate In Itlc: uommln'ol:ls j)a)'lllblc In the future:.nd b."cd upon 'he IdUle npdon, or Jecu,. J)ClymenU "Cll Yilt dl.lo _d pay",blg.
JI5. 'nnnincrdrl'J"C ~f.re.'
UpOII't...mn..ti_ '>y alt"*' pMt)'. Snl.&peI'lQ$l.h.U tmmcdlatol;y:
A) ,...~il n letter oftwmlMC:Ion wbh a QI;ImfJl~tc .ollClVl"ltlnB" n1 CIOmmlu1ons. Ibdna:1S 'ond' buyar eUaet; .
I)) ..tum nil a\tppli..., cJ;.II'1t1~u"..mll'l" ~ lUIII. kG)'1I and (I.'.""IrtM'DtJ <c=~1<k~ ptlOpedy of Btoker punwont", d1C pl'Ovhlan.. vf Iblll ......I'llIlOIn..nt;
e) MMI ....Ilb Bto~r Fvr purpo.... of ~mpttni tQ nU,ll;\I.Uy asN4 upo....a. 'Rn-al ~Unl 'Of' ~loQlll dug and pa:r-tJkI,
d) CCOpmltllln tho 10Clrilicatlnq nf lhlll! R...1 Batllte Comm'"lo" .......d;,'1t/; lh. tamtin"t1on aftha I"ClI.ricuUlh.p 1">' Broker ...<1 S"'.'p*"","n.
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DIaa~a.nc.. of d'llpVllU l)c.~ 8a\c~ II.nd.. "'BrakCJ". or b.t:w=n SlIl...parlll)ro and a 11al eM...., nOllTllClCl IlIs.ool11t'cicl1ll:l1h or CQCl.tmct.ed 10 Bro1cCl.r, hnd wbil:b aria. CNt
or, or In aarmcctlnn wtJh, U>c: 'l\Cl'd ClSlAb bu&i1lU:l. Uld wtuM ~nOt bit adj\llll6d by IITId'hC!tvJean tho pllftt.. 11JV(l1".a. I1U\JJ blI s\tbmkt.d ror arbitration InaoaDfllaulCltl ...hh
"mole)CfV of rhc Coda Q(EttUa: of the N_IcncLl AAsoobtltlQ of REALTORS-. 9)' Ihlll .....pvom..t11 uJtI tll'bltr<Ml<ln &111111 be ImlfttSatOl')' And B1'Ob:ot" IITId S.llllll~ ~
Co provide" a wrtttetllllfOe1nlmC to lbe Iccnl ~fl of"R,SAL1'ORS. lIS ro~y IX rlqUltW by sV\\d llMadadOft.... CO'IldltlOll pr<<llldllnl OtI.rbttnll.lon. Brotr;or.net SAI_pen,c1l
-are. 10 M baudd b}o ,be dcci"lon of d1c ~P'~ ptIn11 oC thcI kJc1'lIIlSlloc:1.,tiClll or the PenDI)'lYalll. AI#ClobIllon u" RliALTOR.Se whld> ...~ C!nflll'Ulln'd the dllP~l. or dl,.
AP't'lIlImot\t, 'Ibc e0nd11111 0' t~ ubltrMtnn ShAll be JOVftt\CCI by lhc Ct1d1ll! of e'hi"8 and Arb/tTa/lon M~"lUJllh<at rcceJlll)' pYbllsbed b)' the N"tioQIll Associilllon of REAL-
~.. prior to ~rblTnld(1n. all flRlC'ndsd by tho .Ioeal oucdatJcn he.t"t.. \ho dl.pule. : . . .... .,'
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'thM A~ollr....y be a~/k4 onlY by ,be ~ btInltO,l11 wrlllnl:'
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ThIll AlP"fK$mcnl ~h.lI be ,nv_4 troy aad InfIIltptet6d jlI.."".....( to ItKll.w~ cor t.... C(lmmQllwol\llh 01 P.~)'lv-,,;...,
'20, Sn..._n bI E,.tl'~r.
Thlll A~ ahan Inuns tQ 1h1 banl'fit ud be bbtdln.1rpO'> tha lllOaoI'lOfS Ill. Inter.., o.fD~, 'I1>i. A8~nt, hO'W........I. based Of! the penon.1 .'"I;Vk!;s of S~I..ponon
Dl'l4 ~alc~ IIhall POt deIClI;,t. CI' :wlp lib)' bt S",JglpclUcm". ri:g:tllS 01 d"delllereund~ ....It'bo..t W priOl' :""r:tttal CCftC.ll.t 6f Br03<$',
'2.1,. rock7.,.uar., ',.,
.An,. ~ pol~".~,~_ and pnlOcdl.ln:ll JnIlIrnUI~ hew' cxlst:lUB"ClI"'h~ W1~1ad or ~cAId $hall b<:'Iblndl", OIl Oil putt....
'2Z."'Jfndrlr~....,,"", . , .
'l'bIJ,"AaJ'1Iemeco. en....~ lh$4Qt&e I~I bcl1wa."Q tho pro_.nd Sa1cliVC'"'on.1U1d ftIero are Il.I) ~0llI OI'UOOel'Jlltmdltllll not ~P""~ 11,,",1...
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IN WITNESS WHSUK>F. Ihls ~imt II... IicAI. ...~~Mi" an 1bco d.1C1 imK elxt1r'ti wrm'.1'I. .
Whnolll;
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BrOnr IIbauJd en.." tMt 'Wriucn ofIIce poDcl;, <Inc%lbtnS Sltaponcm'lI fl.ntlnclal ablla_tion. with 1CIop<ll:C 10 omoc Ihlpplle. tCllllphtmO e~ MId a S.I~etIQtl C\'\n\min\C>'l'l
BchoNl1ltllR'Q pravkled III $al~, . . '"
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COrYlUGHT nNNBYLVA.NU 4S5OC[A.T1()tol OJ' 1UL/IJ.TQRt-l""
COI'tBSI WHn'&-IlIAOItBJl; YI!EU.OW-4ALIt.t~
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Received 11/28/2005 10:44AM in 18:24 on Line [12] for 4659 . Pg 4/33
11/28/2085 18:42 717-761-6923 JGR ERA EXEC
BROKER I SALESPERSON
INDEPENDENT CONTRAC1;'OR.AGREEMENT
ThU I"IInn Rlf.............. .1Id 1JI1'r<w,nll'clf. 11II,..... "~ITIOI"lIt, _Iltr ,",m.m1_ or Ill' ~"".)'IYal~I. _to';"l\ ....'RBAcrolU't
PAGE 84
Form 150-2
'Ibis Agreement I~ cnkl1"lld !lun Iii'),
bllT."Otn.fllsr ndwTcd to_II "lIfOkW". and
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~:f=. ~QC1rd.cY'\dy .
- hcrclnllt'll;:r P'\lfen'ed l~ a& "SA1_penon".
, Whereas. BJ'oIccn- 11 enp~ il'l'bvllirm... a". ~l &o.W 8t'1Obt Nld' i&'<!u.!)' I~".,d'~ ~~~ ~ "he: dvi\\~ ~r'a ~~kd" ~- denned ~ lM Pllnna)'lwmio LIDQnelns
IIndRellstmlio"ACI,AoetufFebru.T)'ISl,lSl80.P.L..l'.No.9.lUIam~.llIId , . .,~., I ,:. ,- . .'
Whereas. 8mlror matntllln....."" or mON offit::a pl"tlpQt)' ClCt"Il'Pcd with t'lImi.tiiilS5. u.s1-lni; b~~icS aMI other 1$4uip_t I1CO:....~.J)' and Incid.mJ;flllo 111(1 ~rolMt OlKrlUl.Oa
of ~d bgl!i1f11:.1,l. and srJlfttd with clerical ilm;!Io~1i. imd l. tt\Cn~h, IWI\l'lN~ 10 Mtl"rin8 lb. puoUc 11M .. l'eDll!1W1ar.c blvk=-; Ind
Whereas, SflLespet'lOll ;1 duly Tiocn....d hy the ComrnOflwllo'llth-QfP.w:)"l,!anbl.. ',~! llktdc ..",..I01,pli:1\lJOfl'; t'<<' '''''..o;lm:''~~ 01 defined by thv JI'a"","yl",nla
T..I<lOIIaJn. 8t1d Reabtr.fi<m Ace, and wl'1<lrc"a II III ".emed IrI be to thll' mut....l adv...tii~Q I'lf"B~ ",,0;1 $ftlAplrnoa to .ntcr thIs eonD1lct ~lpotl tho tOfl1\" Ird aan4it\oM l1I:.rc~
ino.ft$t'letftnth,' . '. .....": .'.... . .
NOW ntEREFORB. fe. utd in QlmlIkI~on of hll'Utul\l covOtlanhi (lnd ~'I~ h~~n"~t..lned., thc UndCT'31JTlCd hereby mter'Ir.CQ lIl~ fl)Jlowing nnl<lIClll of
~'m.t.It: . ".1,-.
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1, l1HiCIHIIHm Co1fI1W~r.
'Ihe rdlJtlonlhtp cpf S"~"PIl'J".wR IQ '&mlccr _I, thllll gf In Indcpcn~nt <:onll'llUlOr, In pcrfmmlng the; aot1vtlic:ll of 1'1 real .stall~ ''JoIeJlpclrlDD'' tlll dc'~nlld by the Real astllU;:
LI~Il~n.s Ilnd.R.e.l(lllu.riQR Acf: (h..,..I~.nor ,..~(1 tD.f11 ~~t"), ICLhll~n .hall be frpa ~ ~ ~c:h portion of hie/her ti~ ClI\"'IY, d'f'orUI .uwlllkil1, iIlI haf"h., ~I:cm~
~A~: 'to kaeFnfl wkh IhclndiaJnfl".,..'t eon~r;:tor Itl\l\,~,.SIfIll.!'aplU'ao:m .ha1t boJt;lponlll,'bl".fffF,l:qruplar1nc f1Jly tnLInln,t raqulrcxJ by thc Ac:t or O'Il\Or I.,.,. ofttlc:
Col't'lmOt\wonJth ..f p.,~ylv..."; Sll,ll>l~'on IMlU .....Qr'c. ~ 1\ e.;smm1M;of\ '-11$. "I'd ~N!;O))O ,,,}er,v, tMp 'oc.noftll, mlld.<l.1 b..nQtI"" pcmlllnn 1;l&f1~"t3, or proClt IIbnrln~1
'itn ,ta,,;, Jocal. uru:mpltl)'lTlen't, SooiQI S~uriW' or bUIIlMU prtvllcp t~lM (whU* rqlpll~bl'J Ibl'lJl, 'bel ,....ubhdd ftcIrn Sa....penon. SaJ~ .th.1I pa)' lilT pror'CHlortal
Jiccnu"'f (lie"., OTTorI aJld omlulons, inlUl't\2tCl$ ~iwn. (C'x"'cpt .... ~~i.M provid.d ~~~).. raull:l..Uatin...1bCII i.ndInr c:ornputor ~I (.!;'II, Seleaponon mllll hflt b.
1~lhId __'lIltffl{Jl~ ,.Uh ntlpeel 10 the .er.1eDI p."'t>,.~ h'",ull~" for federal,~,8la:'c lalt, P'*iH>~ nr""'" P"~ .04... U\CWwk~. Com-p_t1_ Act.
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.!l~ti:,l.~~" ~;u~r.::; .IlM jnd~anI"=-1 o"tate P1~~~ and ',ii4i'(ra.,''fgn7,.io'~.li;'~:108.1~.~~~ riisn14lr ~fforta'to kJi, trad.., '1cMc: <1C" re<lt nn)' .nd 1lT1 real
ell$e J'lSfod With Broker, IQ lIollcit addlt$l>Tl.1 IiMinp, CUltOt'Ct&tr; II.n<l o:;:.lI~ts. foi: B~o\I;e~, ..."d tl;> O;;ll;!ulrwll. pfOmoc. I~ bu.rJneall of IfCT'Vlng the public In ,NIlI _tAU! .......,..a.
tlom 10 l1le end that each of the pll"I<=lI herefo may cterlYG the areatcAt profit po,"fl.:,le,
""'fl.'"
B~ ~lml10~ t=:~~~CI dorilJfl.tl> tho of'hoB'Wltll.whlclI .he; Bo.le.~n ',hlll be:. ,~,~t~;i: ~t 'q,td; stiUu.be pWvl~ with 1W011 fumjahlnp atxl ~lJiPml!lIJIIUl
docm04 lloce.uuy ill the ~L~ctedan af &mket fot dn: proper opcr4(iOn of. tl ~I CIIU11c ~l:c. 8'9k!t:r sl)llU,p:lllke 1.'tI00Hllble tq tho !IaloRplmJtm /Ill current Ilsal1CS of lhe omco,
ivId IlIr.... IJpoR n;qu""t, Ln MKbll till: Sales~non In bJ&lhlll' wodc by .dvicc, In~tnlotIOD, Dnc! l:OqperlJt\Cln, ~ the, CldI:rIt<:\o:::$"* appmpflall b)'" BrOIt.u, SalcllPCWo()ll ~h.oll
pny ror lone diMlJu1c;:1l t"LophQI1C c...~,.", llInd fur luc;:h oth8r fotmll, cquipmoaM. "pp111:~ Ato, "'M,U,fIe ~,t(Jl:tb in Brokat-':llI wrl~n, fll'flce pone!"..
. , .1 '.."-....".,,..,,'....,1.......... . .. ; "__...' .
~1l1~~Cln ~~n;:;~~ hlR/)ler own automobile llfid FIllY till n:1alcd O"'IJC"'~fln'''.&~''iiiliilij;ov,i~.~~~i1i~;liy' ~~~~lI"~.:tO"S;1l1";;'~n'& llutomabU<to Ot t~\~.
SIflI<Mpwaon a.r- t~ c'"' l\tl-b'II~ ms\w1ll'1U '"POD hI.:Jhcc aut""""bilo' with m.nltnu'Q'1 Eilbltlt.yUrolu 91 $300,000 I'oc" e.ah panlQIJ and S~,"'OO tor sl'lGh Dtgidatlt tmd wid!
prvpeny dlUTl.llp 1t.bi1l,,>, limit' Qf $SO.OOO, Snlnpllncm Ilpac11lD famlRh BrClillcr Wllh a certlfic:1IO ~fyJnJI co<npll~ :....-iltlPJis r~\lircmon<< to bo. depo.ited with B..oker
0Jl or bofOf1!lthlS ctrccl1VO l'hote Md ouch ret\eWlll <l4ta tl>hhllAlJ"I'll:ll'Tlcnl. OJ' f"ttotbartim,sJl~ B~er.,tft8.)' fD4,Il_ab1y,~lIt~ ,:' , ,
. ,>.., ' ,d"",,', ..to. .. ,..r', . . .
~1C$p~on ~=::Il:'=fied 10 n ~h"R:I of Ihc cORlmlwsklM Urrw<l nnd ~'.jl'~'b). .J!I,o~'Lit ~1U'l~'w{tii, lka~'a SIII"pinlHl CommllaiO~ !sgh'd~la'.in aHCct COIn lha
dllfc or the lief .ntillin. Sillcspcn;op w . cQJJImlulnn <..... ctMlnina: lilftn., placln. propc1lrty Ilnder agmcmllnt of lIIIkl:, 1ltC,) or "5 otJIel'Wi1flll npeed by the pantCN illlllritlTt{!;
'u to 0. tlactlculu tt'atlIClC\\on., Brokei' WI~ ..\:CO _ SA\I:I~n Commlulon S<:beOule ftom IlC1C5 to tlml:l wlthotat prlnr I'lotlflc:lltlon. RavtsiO?l tq.th8 ao;;hodnlt: Ih.ll1m Immc-
dl<<c.ly oppUcnble [0 011 t'ulut'e IJVl.aagdoml. TlICI dlyj~IQn of"cORll1llsl1'!oas ~CWClen I:bo~.~,~!!'l!tpl:"II~ IIball t'QIlow ~ion ot'",ll illtpen58$ tlce:Ot'dIng: 10 dill S:1l1~~
Cornmldion Schedule. tn Ttg _IIC "hall Q~r 1Jc lIab.. to Bnlupon;og for any +lorrin'!1A~.' n,t1f_l;IOltllCllled. f'oll Q01JlmiSllWns derived from . tnnaacdon ,h,1l be dC[1<J~11Dd
'with tho Brokcf .a. ~qu.ITIld by _ !.In lind/OJ' !llll.. 1100 RCI&nlatlo~ of the R.c&Ull1lJl!G C:::nrI1~llIIl~,..ansl nbM.q1Mtlt)Y paid g,cctltdlna 'tQ ~ Sa\ewpcrlllcm Cumm\..lon
&o'cl.dulco. Thi. dlatribnlQn Ihal, P;k:t: ~ .. IOOIl U praa!cAble, aftc,,- QC1UQCl1an _d ~llX of Illl;h c:ommisllonl,. II Ill, llJldoTllwod anel. /lIra:.! lhllt the s&lespcnon.s only
tlm>unentian I'm' thll fPvlclI1 boiQJ; ,.n,,-" wMer 1bb A,;;l'clJmont La the SafclIfILl'Vln'l stuva pf.thc coml1\ihloAl paid by cbs pllZtto.. 'I> roaI eJtalO hnllollct:loos. .
. . " :. '. .. .. .l
In no Cl~nt ~:::-.o" ehNP "'~II lb." thD oQmmi.wnn' o~ f'" e.tntp,lIsbau 'by the Sro:.1.e.- ;i;h,.;~t'th~ i:irl~~ wrf~ ~~Kut or >>rObr. If Brok<or shall hllova ctllcrcd 11lto
:l specil't c:ol\traC:l (lr fIInJemCl1t penalnlns en 11ft)' partllJl"'.. Cl'ftn'nOllon. Broku tllllllllldvia(l S.ll>l\pcnon of lNOi. ~;.. IIImlfll'nKllt, All commllllifOl'lJl .ad faoa (;nm , par-
Itctllnr IfnnanctlOn llhl,1I be paYlhle Ut the 8raker, SIlI.Ip~tI ''''all nOll16 r>an<lnallyli.bl.. 1<> 'BfOlcar C....,.ny OQmmi'lltOtJel ftO( ~...~ by 1ko\ooIr fn>m panlCOl\ 1n '" t~nll.
;v;;t\o... \>fI~n $\'Ic)) nQl)plIyment 1& tho fllllllll Qf cnllllllllan. In~ntionltl (Jr recklll_ conduct. Braker IIh.1l h..ve 1M O\:ltclu,lve 1'faJl.E to d&1ermlno who1hP<' tn C01nmc,," litiln1ion
to coll.ct l\ conlmj~lon gf roo. or 10 lI.:>ttl.. IItl)I C'llllfl ror tM lame,
7, 1S,lttc_nd'1hld#A,.octa<<o1Ll. .
Salqpl;1"IIon And Broker 6hn1t t.'Uflduct rnulnals IInd re&;\llale wCltldnl achodulclI .IIn II to 1TI111Int.__ln ancJ 10 II'IeIn=IRt the:: good will, 1:n.1.lntu, profits. llnd I"<lplUlltlnn 0( Bro"k'"
.no;l SrU:sapwaon o.n<l ot>...tI tlr;rllDll UJ l:Dnfot'm tolnd pblde b)'" 0.111.91:11, rule. .nd ~lnnon5.0 andC<:Jde; ofeth\ollthat IIfI,l blOOms on. or IpJ)licllbletl'l, T'l:'''' at;..t. broll:tn ll1ld
w.1C;:Jpqrloo" Slllellille~ and &"*Ilf ~h.1l b. eoverncd by tho Code or &hie" nf ~ Nl'dor\lll "&IOCiadon orR~t,;rORS.~ IM,Act, RullUl and ~\h:mll of\M 1\181 katc
('-<)"'""tl\ol\, liS tM 1tlllmO Vllll.)' bo tmm lime to lime IfImlUldod OJ' .upplomelll'ed. "'II con.t1t1.ldon lIod by.:l.wa of Iha 1<<01 ""it)! boar>:1 (or 1i1lClh other boord or auuclntlnn ItS
"'CIY be "srnd IlpCln), .nd thQ nolfjlf And ra.ulOJiolu of .n)'" mlllrip1c IlliItlng scrvicoe with whloharokq- mllY now Ot in mc fIlturc he oft'llialocJ, Bwkllt _d SIlII:l.r-"'~ al1nll
!.'lUllln mc.....bllnlhip in "n<>d, "''l<'ln, willi tho Nadon&! AII!JOciol,lon o(,~L:rOR$~I" the t"!l;t!nsylvpnla,A>>ocJatlon of RF.!.AL'lOKS"', Ina thCl local l'C"lfybot1T'd or Auoeiatian
dUlptft(ed by_ Braker or u lIl~f bo asreact ''t'''J1l hy thr. ~rtle&, WMMlVl:> Bmkcc' . 11- mambtlr or any'1Cl.' Wlgte ~lo" wnlan ~ui~ mo",n,.,r<:hlr> of '!;1I1",~~",... ;n
Illln nr.\tltnlQ("r,m. them SIIk'1:pcuon llSl".lIlhrl~ bvlllluJ M'h.all b.............. ,",,",1:>0< rind ~ tOfU> Or .J..C;I r~"jAd' by ."oh l'IICn1b.~l'I!I. 8,ukcr anIJ SlL1c.liJ>CWon -.rco 10 be botlntl
by tt!. .."loa -nnd rcallll~don" of.uch pI'.an~11KM rertal!)l,... (Q et"I~."d "t:'"ndllma (ff.<;:(lnll\lolln~,pJ'Ol:/cXIun:. SaJCOiJpcf'l!Ott ~llknowIQllllc' pollepioo or II Cllnent copy of
rhc l'o.nnlylvllnh. Real Batalo. 1.Ic:enlin,(t nnd J'(ea;l.rrlltlcn Acr, 'he Rulea 8nd Rq1>1.linnJ Qf lite PGnrllyh'.nla RGlll B.stllt.. Commlado". aRCl t1\<: Co<le t>fE.UlI~1 'Of \be Nlltlorml
AlI.IIC'I<:I",lolCl Q('R."EA,l,;]"ORS<lt tI'tld "'''-''1tS \l) be apprlliOO Df!'he pIOwsion' cher/lOr,~n fhllt ~1I1.~~'i'a ,~il!.gn..d"QC (lOll nctlvllllN 'n II. m'n~ l:olllSllTllnl with II1wll r"wlI (Ind
c-Ihlol..
8. RtIHIl B$lnlfI Uc.~ and DruJ,. , " .
5n'~poann lIh.n p;lylhe "\:Olt O'f II.ny raal e:a:ral,J )jean/lCl ..oqu:lrcd by Ihe provjslonJI Qf an)! law or ~llllrlon or the CnmmonWMltb of penn.ylvanla. Salet[l/tf.on .1tcill I't,rtbm-
"nO\.lr!!; 11III.t l11a I't'QU;rementw,for IIClell'UAl AS 0 roallfltit.t<> "tII1C$per.lot:"~ rhe Commnn~lflt of Penn.yl~nllil ..r" Nt1il1lC1!IIf evel'J' J"lIlIpecl, l,cI1>61111 lb. limely Jlllt;>If....rinn
~f m.nd~ contlnuln. o;<;t"..lUional req\ljrcmcnT.a, Sllleoper..on slll.t111i.)' all tluc:s for mllmtietllhtp tn Itlt As~artOM set fon-h In Ih" pNiCdng pUllfPallh nF ud. A,,~M
In 0. rir'Otlly '...101.... ",nc:I 5ho.llliluy ult~, ". WIllY be. kvUld upm'llneome or ;produc;:dvit)'l1Jr Ill' fode.r.'ll &o~rnarit, thlli lDt$nl111 RfrVOnuCl Servtce, the: Commol'lwll4Jth Qf
Por:ln.ylvani.... (fr IIn)' localm"ot",ipa.ljty 04' Klltool dlatriot or Rlhc::t' ,\lcl1 to'lI.Ina,: .uthm1f)' In<:luclln,t b\l1 RP.t Ilmiu:dto jl)CQrne UIltllll, l'lcauJ1atlon "nd l:lCC\1p<1L10n privllc8e 1I1".1.
paT ~t..'..Xe.l. motCll.ntil", <K bull;~" pl'lvJl-oao t8:CCII, \
9. AIlfJtPrU" W CtJ,.;,a",,~ . I
SalespoTllnn IIh...1' bavt no .ullh,nrll)'''(lo l)\nd, .:.blip-to _ a.....mll Broke:.. by '")' prymlJ. or nlpnlJGCltllrian, ttnle,1 &~lftaQII)".uthorized by UnIkcT In wrtllnE:.llfOvlde.:l. "nw-
eYer, tf1,,, Salc,plilrWtl Ihell .nd 1:8 l\Cf'eto;v authorized tD c",-.eUla li.tinl,flFD1llnJllJ. ~yor aaoi1gjo l;Qntf.c~. le,11l Qvmllp:;mc=m ConUACIH, &II well nl :Ill Addenda and. os:-
menu .ppurtcnllnt tharetn tQr and 011 bel1.1. of BMkllf wt~ 'Ml\ m .......fl;.d,."'ith 91"0'.:.....11 ~ practlou and provided thllt I~ QCmImh,loQ involved 1p "uC:h lrunsactlOfl
is DQt klJi3 Ihl" OIat dctcrmlrocd '(lr such tl"o.nlllllClllClll Qr sandall by Iimlccr, Pw'iUl'tt> cnf"";Q.IQlQo lIay,LJdl "'~.ltrnc:t or 1Il:n"llmont, SlllAper50n It...1l liclcrmino lb. 1I".nu)' IInd
",.nIlJemen' praclioclI nr 8robt',
10. 8"'01'$ Knli Omu."'''''' In-aurm,,;-"
SAJ"'"'f'<lT"Il;>n shfllT COcrpIlI"llU' hill)'" wllh Bmkcr In oi;tlu.inlna mTOI'I tlnd oml..,IQn" cOVllrnp In an amQUlIt. OM ,,"tll dc:dUC:llbt.,. &oS Ih411 'mm time (Q lime IJe (ie[enntncd h)'
@ro........ S.;d in,ynrncr,<l wh811 protocl !klc"llllll\(ln .."Inst llllblltty whkll mllY IlI1I1C In confteetkln with tho condl1c1 nf SllluplrlOlJ"~ ,n 1191=1,,11' .".1 G"aotc IIc.naee. Sllld policy
orpo1tatCl".1\1I.11 ~"':'" 41~ ~ndotMml5Jlt noptlnK lSro;lt:crAnI1..,..Y 111bsklillrlc,l Cl(B~~.~F.l ~o:.~~q1'lt1\;ln.ur<>4,.0I111,.n nc;>1 l;u; ~bj~tto alIlcc::lIallon OIlQflpr (lQ II minimum
of lat1 {lO) Ooys ~nnf' w.,ltcll notlga to Brokor, A [Iemllc::.llt" of ,,,,id Inllura.nce Ihlll)'Oo. /$Cpt)lllijt(t 'with. brolQor "'" 0; bafoJ'Il tiKI c.f!.CI~VI:l dat<l 'fld cnm nlln<lW.1 dAta .,r ltoll!
AJI'IMrnCIU. Tho OCIltl Of ,aid InAlm\~ ..1...11 bo:: paid p\lrtnlltnl UJ me wrllten pl:llloy nf J)~. Of. In the :Il"tllU\(;c thorecIr, ","cII cowc IIh.n bo tlo)mc by Bf'(>Io_ tlRd SaJOIIpclllon
In tll" lamc prcopm1lt1n1l8 they wnplo nMMllJly oh_ inlbe OODlmllll'llnn resultln&: from CI lbtlna lJI1d '010 (If. prcpclny "'I .. ,,,.forth In th... :SaIOlp.$fMtm ~m't\IHi.e... s.,n.:d\ll<t,
I"."" .,\. ,. "'"" ,.-"". 'll 'j.'" I
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,-
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Received 11/28/2005 10:44AM in 18:24 on line [12J for 4659 * Pg 5/33
11/2a/2~a5 IB:42 717-761-a923 JGR ERA EXEC PAGE 65
,', 11. z.uun,.., Cl).1!rdl:l.I, o""po,...""., ..w,. ."""Po,."......' ,.",~, t.: J-f \ 'io~ .~~ ..~~i ; ;.',;,
S..lcspc:non "Inx:$1hAl WI)' l\nc1 .U GSllIls' of propmy. .~~y ,,~u', Il.nd./.,.f~ ~9qVfkan !n.~,.~'3:o!, Wit!'t!~ f1'l'llelltMa bl.llllQQ!lllo, 5~1l be In Ih", n"mlll of Broker.
UIClftJll1nd ..pncy conttoC!llhQ.JI be! 6lod with '8l'Okcr WilJ1in tWsnty.tmd(!14) DO\ltlhWi:f~daipt bt Sa1l11'petJon. 'AU'li5Unc' antlll8enc:y ccml\'llChl Ihln be bnd ri!lmrnn the!
l!.Itclua1va pmpc::rt>' of Brow. AU c~poAd.nc. Nc'tiv.d. cOplel 01 corrupondeclce wrtd.~. pletll, ""liftS Infom'iMian, mcmanlnda, fl1c8, photol"'pbs, l'tlponl, lql\l opln~
10m. llCcOUAUn.a il'ltormlltion. and .ny and a1l ather In.u~marttf. dOOl,lmelHl ur ;Inl'ormatlDn or any n8RIN WhlUSOlYet ooftClenlh:J1 trlllnUC/tio.. hMndlcd b)o BrCl_ Or
SalMptnl)1I. CIt' Jolnlly, are AOO shan nmoatn die. pmp~ uf Brokc.r pl'1;lvkkd IbllC S.le1l*"'On II .ruhllJd to " l:opy at .u.ch. iutrall'loDtlta llJ\d InfO:nmlfhm IIplln rauD'I'lab1c
req\tsSt concemlna ony 1t'P.nI"c;llc:ra In whkh hcllIhc i4 ~1l~rs(ln:ll1y involwd. ibI pqnilll 1"(1) mull mutually IlPPI'O'Yil Alld IJnlO IIpn" III QI;I~ndtllJCCl frnm the omce of
Bwlter Pilrtatmnll: to tlWl..ctionll handled hy S.alc5peuon. ;!nd shl'tll fUrthu Garee 00 the: f'otm.. t!=t be ...,~, IIigd tho cnnlcrlt'; af 811 coalnctll nnd other 10ftnll befof$ lhcy IUI
~t~dllJcllcmbtlmdQU.,tgm~fm-lIIIJTl..tlln::.. '.1' '," '. . I. ...~
'i2. Chptnlt~. >~""""."': ~:'_'" '.''"\: \. ,,-;
All dGpOllh;r. ~QClv<Xl. by .$IIIQ1lp;r.tIJOD In th. COUl'8O of II ~ e<alll tranll&l:lllon l>f "n)' nlliWfC;. shall be ltiunec:Jlatc.ly lnlnllfc.n'ecl 10 Bn>kCl"ror dcpmlll plmlUAnt TO tIl. ~ ~
Rul... IIind ~18Dc", Qf ttw; R,l;!f1l e.w. ComlllJuton .nd!hlt .eroomont "t tho ".-ntCI <<llh',1nINftCUon.,~ provided, ho~, !hal AnY dll(Xl.lt w bQ mtlillt;ilncd by. I'lD01Mt
bra'kcr Qf ~ord PlRWftII( t10 the Act. RuIM and RctI:uladQf1a ~t ItJc ~",l Blt!!.to Commiaslon and'l!II8ftlCn\Cht ot.the ~'IO .......n....wOP .mlloU'~ immecUntely lnanlfcrRd to
lIu<;:l> bfl:.nr with In. 8pp"Opriacc notkc ... tha ....n<m m",kl'll.' 'U,M de~it find. to BfObr. ,
. . , J...II. . ~l. 1..., : ','; ,'J" .
13. Irttl_j/il1r1JdJn... '.""',,,,,. I., ,It
S41Cl1~n lIh811 h,dcmnlt',y .;lInd hold Broker tlDrml.... twin, AnY MId Clll ~aiTm, WlI.i, lI~blBtlea. 1Ir'l~ jlldPl\Cntll, IncJ~ina: lUOfnc:y'l bs, IImlll8 from the latlllnd.onlll or
n1CkJCM M1tlJ ~ Sll1npUlKln. or IICla olltai~ tho '"'"Pc Ai S.lo:n~OD'S 1IIJthodty.. Wh'o~' 11~~t{oi\ .or .:df~.IIri'K'f """""rTIlR.lII trllnta.;\ion 10 whlub SalclporJOn wu
invnlycd. C1'lC parties berefo IbRlI mutually cDDpcnt.c with MCtl ('otMi'. In d~pr.le. 01" Iitl....tion wfwm= cI1an:..i. #0 Qllllm Co UW olto" thM SoJOS'PI'ROn hlllllWtad inlCnd~lly or
.,.~1c1op1y cw outside the lCOJlo of SIIlelpclfSOfl" authorl[)', SlI.loap<<*ol\ ilIhan bela... the 1l001t.s, cr.o:pu_ lI"d Jt"Wllti.. Includbl& jucfamtlnbl Ind .ward. 8ri,I".. frc.>m ,,,- dlfpLll1
or litlptJoIl. In dlaputcrl oar 1llIBIltlon wtlere theft IA I. clam fa d.,g cf'fea: _I Sllap<<son hac Ilotld aqUpatJy. SlIIe.porliDn Mall '.h80'0 thl! CORio O:~ Rod IlabUltll:l.i
inlllllctlngjudsl'ntmU "n<l IIWl\rdS ariain, &om tha dJlIl'UCC: (II" lltlgllt!on, .$uctr shari". $ball be in the .om. pl'6pClrtlon III d'ID dimlon-of Qommi..ion WOA. 01 -.vould have be~.
frnm 1llq .ubj.~t uunsectlon, Tl10 IhDriltf of CMM. IItllp....... IInd lwbllltill' ,hall be without pnUudlea 1CllJroker', t1ahcs or Il'Ide.mni(">.ClUjOl'lulIl... u...... h- bean . ro::.Qfl.l~
tlOll of Iblindem.niflcarlon iuua balWCIOTI the ptInle$ buelo. BftIk<< lholl Il!llact aoun!l;c.J In rcpralJ.llnt B"*"'r's :md Slllup.rscul's inte""r.t>I ill Ilti8.I:lnn with coeta borne by Ib8
pMtieJ 11'1 ~1ftlgn n.8Ct fnrth IItIOVt I)ertalnlna: 10 tn.sharin_ ofCORtR.
'14. 7ltrnfthurtttt...
Thfa A~cnt. and the ",llltionshlp Ol'XI.ccd bl"l'cby, may be te,mlrllned by'flitb.. party huclo, with or wldrnu.c _1",;at lV1)' Um. upon wd_ nQftOCl. tJpan ","",0111(11;)11,
all ncpnl8tll;lnlf cnmrnoncOl:l by Snli1l1pOnKm durlna chI: 11:m1 g( Ihis ^ereemonllhill1 be handled thrOu.v:J1'Bmket' and wltl) s\1Ch aulmnOtl and co~Jlm1l:ry SJllespa'lOft at
la TIIe$l)_tlle ul1dcr the circumstan~e 'for the protellrion nf CIlc Inwn:lfI of the patties to the real clhae II'znuc:tlQn" lmoolved. Sl.\e.tuW.tt>n. upon IOmIlnet:lnn. sh..1\ I\lmi.h
Breobr ....ith . bon. (Ida Jillt of..n ~.poClI. 1-.1., .nd pmbablc tr.tnN\GtioM d8V8loped by SaIDllpIllll,", ell Wl:lIl as nO conapolldenCc and dOCUTnc,n', f;{l;:fl;rlbed in hnlpaph
.\ 1 above. ....hich an> dc~rno;:d to be me. proporl")' of 'Broker. 3111."p.rson furchell' agree. .th.t uJXlfl tannlnadon. or in IlltU:.ipctlon lhemor, hehlhc win not furnish to any porIOn.
ftrrh. cnmp.ny.... carpca'IItll)lI .n~d It> th,., .."..I "OII,.t., hu,l;n... m17 Inl'ormndon 811 tg. Brgkar';J cllti-.14, w.come.... propcnlc.. prices, Corm, or nOlollntions "Or Bn:lk:ar'. pgll_
ti<sl or n:llntinn.hlJl~ Wl1h I;U.nts lU'ld c;'J1;tomCI" nq.. <lny QlChc::r inCormlU.ion QI:Oncr=rntnS Broker IIIIdlOl hlalhor busi'Qolll. ,$alCllpcrxm ..h"l1 not, nIllllr tcn:atlnl.lUun at 11'l1"
Asreomcnt. or In concem;plaliOll thcnlof. rc:mnvc from 1M flIOJ1 or from thl) nMea pfBro\l.er nny ~lttorilll.. dot&, publill8d~ OonapondDnl;ll, filCH Clr ;nfOfmlllirm IIUllls prop.
erf)' of Broker. SSlll!lRpet:llCln ~h.lI be IIl1t!rled bO COfht!l,'ofccrt8i.. il\1ltnmiontll p.rioUntni to.td.tillDOtlbnllln wblch Salllporson baa. bono f\1!c hr~TUlt (If p~nlllnlns to elll'rt--
IngsofSlilelpcl"lon. . .. .' ":".""~I',I.':',::.,:" :". " ....
1', CommluUtIU "PO" 11r,.,..illGtffl'f.
tJpon t..-mlnll.tloft. S1II6.'P"f'IlO11'" lIbllre of commi.1km Oft 1m)' ',..,II8Clions who,.. III u.1oM ccnirll<rt ""tl"tfr,!xlt 11'l, frMNCtloD has nOl. Dlcsed. IIhsn, 8ft~ thc cl~nl of lucb Iran!\-
IIcRon. be paid tel S,.II;,IIpc:rsrm In KCord Wilh tlll!l S.lcwpcrlWln COmmilllon SCbadule In dreat at tho funs of M.rmiftMion. Ther-o IIb.11 t>a (kQu~e'" !'rom audI I.h8TG, tmwcvcr.
l'l SCTYlcillJ charge PI J .. " . or -..:...-.:... .,. or 1M 'UIIOUM r.d tho 1iattnlillr:ndlnr IlIln' commisliotl, .......lchovcr i.. 'hi.!>..:. No I;OmmtNlbn l:1thcT than 1'01:'
lOOlic propcrtiat on whloh an Alreemenc hu been IIlgncd lIInd lW:ClpttI(l tD wrjlin; by Ibe>bu)'Cr 1Iil'ld "ell<< Oft or bd"Ore lonni~IOl\ ,han be. dHmed ..l1I6d by S.lc.ptTson.
unlcas alhcrwl~c: ...,<<<1 irl wrltina. LI~I.c:> no comml'llon rew>>d.ng n,:m, thQ liltln,; tor'NIlt,.. ot the ,refttaJ of propany .h.1I be paid to Sll.lMperaon follnwins Iennjn",Uon
whh dM: cllc.pt:lon ofctnnml5alon. ..rimn, nom Iouea 'LIlly CIl:QC.Utcd"Prior IQ ll!ml\natIOft CIne!! to IhtllllUenllbaJ: tCIIIle p.yrne'lII .,.. received prior to tMml"8t1(1I\, SlIJUpo1'l()1'I
.hnll not, however, .~Rn:I In lhc commiMlanll pl)'~le In..t,M ~UU'C .Il~, b."ed DPfln tll.. '.n-:- .op[I~1 ~ IcaalJ p.ymclllll n",' ~ dUIIl. tll1d p<l)':I\bll'l. .
16. TItr,."".." Pl>PHtfruW,
Upon '1cwmi""tion by .ltherpRrt)'. Sak>ap=->n IIh"n.frnmedhlteJr.
II) .ubmll. le(r.r or le1'Mll'\l1lion with 8 camplG:W .l;QOvnt11\1 of cor:nmlt..ion.., 'i..dn.~ ''''ndbuyo:r clients;
b) Ntum. AU ,uppllu, clilll>r\t1,::nutamcr prooptJ<;:t ,Usta. ]Loy. al'\d. documonlJl co"sld......d property or Brokor pun\g.m 110 Ihll pI'O"fialona or thil AanlOT11QA~
~) mellt with. Bfoku for p1I<JIOf'O!I (If Otwmpcl". to mutually 8pee upon . Jin(\l ~\lqtin& of comml..loDII due 8nel p1y.blc; . .
rS) '1;00.4'110 irII tba notiflmrdn01 of th8 RlII.l StUlltll Comrni...icn TCJ8tdln~ tho twmlnitiotl Of.the :raJadgnll1'ip.,r .810_ and SIlJtsiPorMm.
. .." .,.,. .. ...,,,.. .
'17. .4ririba1Llon q!DUtptit6,. ..,,,i...,,...' "
D1:sq;n=r1ICnll of dUrputM bctwQe.n Salesperson and BmIror, i;Jr twnw..n SA1U:jJenort,W' .'UllIJ lJiit.rc'llccms",UlocIl1t6d with oc ContnlDb:ld U'I Brok8r. And wbl~ art.. 011.1
of. or 1Q connecrton with. the l'elll U1i\te buslD...". and wtdgh g.nnQ\ be ndJuilWd'by'and bal_ 't1~ 1>0'11101" l.""olwd. .shllll be ltu.brnittcd far ubi1mtlon In IICC(Ordlla.. whh
Anll;lo' XIV or tho ClXlc 01 BChios at ~ No.tttJtUll :A..-m8t'iOQ'or REALTOU.. ay thl.. Aan:x=mcnt lNIII4 lUbiwllt'1on lball be Dtari~ and B~ and SaleapclOll ...."""
to pt'OYlde 0. wrltmn avcemcnt 10 the loc:a.I_i.tlon' of R1itAl,.-"J'ORS. "";mat bt! n:lql;IlnxS by ~'d ."00111I1011 U II ooncftll_ pn!CCdan1 to ~llfftllOIl, BtolcOl" and SaJc.'pan<m
:\lAIC 10 be bound by tltCl dllQllion of tho lUbitnlnpn pand of 1b-.1oc;aIauoctMlorl ()r the f>cnnll)'l_nl~ A"saoQadoo of RZA1.:tORSs wllWb hIw ellteftal.Ded ~ dl"f'Utl: gr dl..
:\InromQI1. Tho oonduat of \he arbilnLt10n .shall bc ~mecI by Ibe Cr>dr qf Erhtc$ <Uld Arbtlmlton MII,.,."l mOlt raeently publJsbed by Ole NlWonll Alllloci8lian of REAL_
~R~~ priClr to ....ct>it"".mm. N lIIJ'IencLed by tho 10'*1 _QQlatiQ~ h~~. the dl<<puo;:. '.,~. !,"
,.'.....11.1
IlL. A_....."".,..,tor. ~... II...., .',1 . .;,,,.,,,
~~~~on~.niaybcl unoIIded ClAI)',~ UtVputlca he~, t'l',wridnl:.".. ".~'''':. ,~":.:' :", I/.:.~,:...,.
1SI. Gmr.rll""'z:-. , ". .
nri.s AI;;~mcnl ..1I1l1l M ao'IftI\4c1 by IInd Irrtorpreted pUI"IrUIlnt: In IJ1c lawl or lbll COr'lWhcn"".."l$ta of Po"aayIVllnil.
'.:20. "Sa_-.tII.llUe~. '.'.' . """, ,~I;' ,~I ," "~..,,h"',~;'J.' ..'""".... . .,. h'
Thil ~t .halllnun. to die bel\efit 8ad he biRdina \IP01I the IlUCcel50rha Irit...e.ibfJl.bIi:W;"Thi~~'.amctit, ~.;Ii balCll 0111hc ~raollal .crv1C11lL nf $..l.sp.noll
.nd. ~~,J~'.perscm Ihal) ~ dllll~tI!II or UIdp .ll)" or SIlIQ~'.,~~ta,w:.tI~~~:~~~~ .~~.~~':~~ ~~taII cOllSent?f B~.r_" : ...
.;".,. '21~'" 1'bll(Jj lW'_u,.r.' . '. ;., ~ .;,. ,j.. ,. .J',r.,;.,,, ;~'1,,_1I .1'1". ,." .,...., , .... .'
~.~~Cl, ral~:~,fIll- ~ ~g~."".~IIaU"lllcrw .c~k~ OI'hcrc:8ftct'8~~:~ ~F:~~I"~.~'!:~~I&,!dCUili: brt'~ ~.':.
~ "l'.!2:"B..."..t;'~"'''t. . . ,\ .' ;.' I.....,. "'j'.""""~." "": ...". ','. . ., "
~e'~~~~ ~o~~tl,~I~ thom:'1i~.~~.ftt,.ba~"'Q',~Broltel"~d.;'."I~ ~~I'.~;~'t.~~~j~llini:nt>L'~,~~I~.~QI_~Md herein.
'IN WJ1'NES:S WflBKSOl".thbAFellfl'\Clnt hub/lt:a UlOClIhld (On the dlrai:ftritabow''Writl:i!":,, ....; ,,,. I " .
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~~~..ahalJkl en,IUte th8f. ......lttan oMce POUORII d..l;dblq: Sale;:penlJ'.... fin.,nclal olJol1.lItica. wlth ~ 10 omoo Il..,ppu.... -'--'-ne., etc .ud a S........crson'CommI---- .
"""".....1:1 llno pr'Ovide4 to $1I1..panon. " . .-......... _~,. . , .-.01\
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P..nlq'lv8nI. AaaoclMlon of
REALYORSG
--"'--"'-
COP'YRYOHT I'1CNNSVLVANlA AAlSOCIATION OF REALTOR" DM
COJOlU: WHrrs...ROKSRl V1R.LOW""",,"LESPER.SON
I....
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Received '1/28/2005 10:44AM in 18:24 on line (12) for 4659 * Pg 6/33
11/2e/2a05 18:42 717-761-8S23 JGR ERA EXEC
PAGE BG
~ROKER I SALESPERljON
INDEPENDENT CONTIlA.crOR i\.GREEMltNT ,
TI", tbffll ff..'........~oJoo".. .~"'....d l'o" _".1 NM,lu.~ I.......,.. U... ...........~ ur.t.. '...""7'......1. A_I.........f ....AI. TOll#il'l\lI,J.
leA
This Agreement i. lalcn:d 'nlO 'lhl. (IIntlll
~",,",&a~lllIN"III'C1k.r."and
S~~-16 " '...._ :r;-":kl'''hAL.,,, ~e,Qlk
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Whoreaa. Broker I. e.-'lP"1:l1.n but"',,, /Ul111lc1l( .EN Ie BrokI:"1I.II41' d"i'r l.......cd to.......... In lho; 'Ildvlik. gfa "B,nMW" ILl datincd l? Ulc PCllU\l)'lva1\l~' LIccI~lnlJ
andkaCI.lQ:lOllan....c:l, ^CL orJ"<:bwnry lit, 19110. P.I... 1$, NQ. ~.IIII""'lIJId.d, n.nd '
Whereat, tn.klll;l"mIll:ruA!n._ O~J'QO" oMvclprapcri)' ~...l~ wWl filt"IMb'\II, IlJtl1I.alldokl"~ OlW.ipmanl....;e.ofN)' lIPd lnllldantr.l to chi Jll"O""'"l'lIttlllicm
..(."leI. ballin..., ~.~d.wCth .liCflI_QpklyllCl, IIII01'~:r JUJal:llc to Il!Wl.h.IIlhll ..ubfia uANIlI'_I. bioker; Mod. .
Whereas. ~ll1WlIg,n b chiIy r~~ lw lb.. COJnlnll~..Idl-orpcnluytY'I\11l. u. ,.,1..... ~Cnon.. 0.. .,~ \w'=kor" u d.tb>_lo)>t\)ll hnnryIV"I.'
LkaI.II.....1\"'I.'"'110JlAllt...1l4 ~ lIit.......1D bo:l tu l,hetnvt\,lllJlW1v.....""a .rptak.r.....d &QhlJ~ 10 Q)11;:&"U1I'ClDllIl'"I~~lIpOn 1M l<<N1'Nld~dicicm. here.
m-Derll:'tnu111. ' '
NOW THEREFORE. for N'ld 111 ean.ldctol1o,)1' otth, ~~,COVI!ItOlfltlllPd promJ'DI,I~'elft >2)1Iu'u-i,'.'w ~1lJ1'&'d ~l' 'ctu_il\la ~ ~l~wtnv. oul.k."',n(
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1lIo: Illlllll~ of Salcqn:I'IlM .., lJ\\Ole. I. d.t of." In""'.IIL 00.....--. In perf4Urllnll dw ..~ti...;1Oa: or II ~ .'1"\9 '......1111'.110".. fIf ..ftnad by lI'Ic= R.al B_1I111
U-sinlllllld. acllPlG'aUOIl ^,.t; (h-nlnn''':lt rcfQll,1!d LO.. "M'1. ",lapel..on :lM.1t bor Ii_ loG d.YOIII _h f"'"Itlasi c;I(hlnv Iimf" _"o:qo', eAbret and ....n.!If h....h. dnaUi
IIpIU'Opri~ Ir, ~ins ....11h cw ...depat....l a'lllm.I;IOI' ftAI\:I.. SlIlapcnOfl "All boa ICo!Ip..,ulblc fbr cortlfll~ all)' 111IIllIrIU ,.q\11Rd b)I IJIa ^d or ou.r law. t)f Ih,,,
CCImn\Qn..-..~..( P~lvuU..;~ _1I-..orlIona__..inM "lis ....,t,,"zi.,., 11Q1iIl1N)r, 6inU" blll1!fkaJ,lI"IccUUI bl.Mfta, IJGIIIDn .....r.U1, orJlftltil 1I11/lrin,"
110 :l1IIIll.loaBl. w"'mJlloYID~ Social Scearll:)l or bullned pliYilaae lIac.,. (whenlllppUeatllll' ~l I.. 'oriLkhoU tront SlI/.1pIncm. S.lc:tpenU... ,1\1I11 pR)I' 11.11 .,.,.rtI.IoJnll
U_lac r_, ItnOrJ NUl omialC!llIII1"lnI1lCc ~DI (ca:. lIll ~rwt. P'O"k1a:1 hoo~lrI). mUlu.lJl~ Rei..,...... _'IIPQl9r._"., S.lc....nun Ih.ll Mt b.
l....tctd .. an .11I1'111,111' "",th l'llIIP",,- 10 tiN ~.h'liln p.rfcor...... I......" n"..r r.r l'I:dlinl,.r ....,. lllll pnl)lll'elI IIr 1101' pwrpOlll:llllnlSl:r 11M W..rllJ'j1;' COIII!>>9n_ll.n ....1.
1. .:sfll..IIJ!jfp1I" ' "" "
SAlMlWll'llllH ~ 10 ..,stid&n ind,.,....ld.o\l.l'Imi..UOIO .u:z,pll_..d .hnll !hlIhMly.IoyI1IJr,.and ItlUnlly~ hlll'h..ITOft.lIlD -.11, Cnldc. .....1 afl'lI!utlllt)' ,,"11 ..U....I
c;liUll,l: UII,II ""en fb-ok:-,'" .olicil a4dld.o1llllll.., lIuJJOmIltIAild oI:i.,la (ar !;II'ok.." Mol 0 ..thawl"" pnmIOCc tIl. bu.lllCll. of PI'Yihi: Lha publll: In 1"",,1 c:ltIllc I:InJ:l~Qo-
doni ~ lho= U\4lbMGMit\ ark ~Ia Mrcla ftdI:Y cl.w.iM ~ pmfil p.,..\>l..
3. OAlt:w'"dU1hut. "
S~'Vkw :lhldl tfaN. amllla 1I_ ~"'. eM ame. w1t1\ "hi'" IN: Sn.............~n .,.",/1 b. ..._t.~. 'Thn.1 vffi9s. sM>> ba l"Nvldsd wiU.:llnh fblnlshlllltll ..ml cquil"'"''''''''
d/:Il.mcId_""", u.Uwlil~GtBl'e.kar f\)rltleJllNtler~of..teIIl..Iblu:..mi:ll, BI'Olc<<'IhtIII.~nU"""'iWIk 10 1h.~MnllU cllmlRlllllUnu:l afd", uffiGl:'.
md. ~...~. UpDft tIlquClll, to I\UJ.. cha s.~Qlt. In hll/ltl;l.wor1t by 'IlfVII=, In.tn!l:tjOil, Iln4lJOap_tial" 10 eM salBN.deIl-.d.O'Iflpraprial. by O....k<ot. S~ IhnII
1""")1' far JC\PII dl.~ ,wlo:phWlllllhuijDI Md for """' OUl"'" (Ilall,., ClqlllpIlICIIIo :NJli?liCII U 11U1U be ."1 COId(lo in Bmb"1 wt'Iu.:n 01Be. polhitM,
4. A",_abH...
~s::=: ==~mN'il:.iJi:'",~'::.sbU~Uf~:~':=~~;:::'~~~U~b:s"::;=':~J!I~:noh~~~.:m~::.~~~iJ;
propDl'ty d.IIn1&illlu.b.lIi;'ir..... ofSSo,ooo. 8='1'" ~la 6t1''III'' a",)t.rwilh,. 1>lI"~.lI"olCfiI~ _/"npUIll'MI,w~""':I'CCl~~IO b.. D"'P.lii<'CI.llrW\Bu:lkct
VIlQ1 '.1cfQmUled'Itc.Uvlldll", Nlll.c:u:h.n:n_1 cllWl O)flhl. ",,",wmll1l., Will o~ 11""" It 1lMka:rmny__bly..'l\lNl, , .
.sll~ ;::n':'::ltd"'. "'''71: or the camndukNall ,,"medlUlA ..o.:.iWd ~ BnllulI' In lLol.:onllln<lot'~ BcW;"'~ SMosI'ee- C_lnl.... S"hlldulll ill..it.~\_ chc;
~.r \M *'" GMWiaa Sft~n \0 I/o c:-.:.nuu\niom \I:.i.. obul.'oftbt,1l.1IllLl, p\IlC"1I plWpCrCy 'inMr "pwlnlllt of till.. _.) or.. MI.......I.. JIF'Hd b~ 016 r:"i" in writ....,
... 10. pu&iou~ Ir'IUl"O:Ifvn. Broil1m' mol)' nllerj~ Sna.,...on 'Co/Pl1lb.fon 80lhedulc ftom 11m_to lime wltllaw p"llr not;jftcllCJoiI. RIIlfllllo....Io.lIt\rI..:l!Mu Ihtlll be u~
dl"l!!lly .JlIIII...... ~ 1I11 r\IlVW nnlflllldon,. 'I'be IIM.lelt ..f...ommi....... batwaIII! ~l'Vlltt IlI'td 6nlc:ilpCotlOll w.11 rallow .:I""'iwI,ohll "IIp1:1lt1Dl -rdb18 10 \he SlIlc1paf:lol'I
CM2t'dJ"~ ISdtcdwc. In lID ClUlII nil Brakltf Mlltoble to SnfelipllNOn C.... nll)ll!0INtdlll0111 nalllPllc~ted, J,JI \~'d""'icwt.. -.wed hl.. .. "","fl\ll!;\qn I~U be ~1aIl
w\1h !be a..... u I'Ilqu~1l ">' \It. Acl. ~OI a.1as 'fUWllqul"IiWl' .... till:' Real B:ltIllC' Ct>nUnl~..... and n1b.~\H,),Uy JIIlid 1I"""1.n", loG lhc &1I1oqtn01l C_i:l....
S~Ic. Th. &....11""'""' ",nlL.,.ko: plMc... _ 1III1l"II"1_1o ""... ~UIlClion IIIId _Ipt Ilr-" _untJ.ston.. It II' W1dcnloocllUld ~ed Ihac !he Snl...panl>fl" onl)'
~Dl\rarcl\o ~j~l!1Illolii.n.8 rlI'ndwW~""!hi:o~~ll..lh. S"I~".-!'--.ortha_II''''I.Jo;..,. p..klb)l' u.c p~..~ ta _I ~I. VllIn"~tID"",
In no Ile-..I ~r~~':::--ol\ "Moqpo I... U'M lM ~.... Dr (be Cl'lIlbJJIMd by Ii. W..~ ~tk,;n:'11hG P" Wdllhm.:m~ orBnW:r. IfBIlUker ~ ha_ CllCCl\'ld 1_
~:eI:iII;:~~trbol.m:~u~III:0~,pns:~~::u.;::~o.::IIil~,,:.:~:I~~~:~.r~:,:II~~~~~=~a:.~~~:vT~~~:IIt:':.~
""'t""'-....W. ..'<>h n'llIl:lP"yJP,'ItIlU du:: rwu!lllrIlQUu,llln, ......&'".1 VI ~"'llOndq"l, Bl't:>k.."hI>l' fw.~ (be cxc!.1WVC;ril:ll"l<l dW:l'I"kl.. ....h....,..".. 10 Wltll1llllllle lilIl;/uio"
1<> .,.,11?0o,.. u<ln>minioa .... r..o...r Io.l ..,&11. "')1' .....Im t'or thor.........
7. Brht.,nd'l'r""'.v.lhJddfltJ.u. , .
SOll"'paI:1IClII./Ul4~1lt slulU ;QJI..:hock bUllnclland 1C11I1A1ll ~ ,c:AAdu/a.o U 10 mjllill"'" nnd In J~ lIuc good ....iJl, bu.b:tCu, plOB,,*, iU1d rcpJhllJan ofSl'I)kcr
III'" JW""l""'.... ......ch.._ &0 "o:inf_ Ie> IIQI1 nbid9 by /Ill kIWI. 1;\It.f r.nd. rqfII~ "N&. OO(MI Q( .d1k1IhM.. binding ofl,. or app&bDbteIQ. (t;"l c~ bftlkm UIC\
"Ijp~ ~1U1d.&'ak"IhIIII_~b)'th.CodIIofllllli<leorlhe~I^.._i't:ionD(R5IALTdkP, u.......I,ILbtI..llnd~....IIlIIA".Ur&hc I\IIIIIe-D
C'ata1N,li!o:n...lfM;MmOJIIRY bll60m lin'Io 10 dIIIe~ W.upplIllllUlICIl, 11\0 ~",lionlllldby.IawJ gf'llw IDcdre"'qr boltd.(_.-h O1I.horbooll.l"ll~M_~1lS
....,1,. ~ Up<'!'h uocllha 1111........ fCl&UI~ .rM)' _1"pIIl a.cIni; ","Loo oNlUl whUih 8Jvkw mrQ'..... 01' In dla t1NN. blr IInlUllcQ. Brolr.t:I'~\d Sl\lllspmlon 'hili
..!Un .........1h1J' in good""""'" wlt/l dlD NMiClftlll A_iMllU1 ofRBA.(,..TOl\$., cbc PcI1M)'h'lIIllaAIIlQII!IIICIDft o(RML'TOkB.,llnd 1110 kKW.t1tlIUY boQ'CiOl' .._1....,.
d.DIlaM~ b)llJo:gkoq, l;tf"'" 1QII}f ba.......d up_ lIy "'.llolIrIl.,. WllcnIlMll' EhlllMer;1 ,tns:mbw <If ""~ ..nl CItIIUI..~....lJvn ....hldl, ......... _b~,p ut B...~_ kl
-.ld.....""Iu.OatI,....n $N"pcr--..- tMth..rJl\l!.wf ~1I1I~lUld P"Y ClIIlI.4\1~JCQll~d by lIlGh.~"""'p. 1ko",an4~l\~4~beb-.d
'0)' J),..l"lII....d....,a..... otllUt1l1 at'IMb:.lOIloJ>l,owWn~1Q n111...1Uld U/Ifld4td$q(.....!ldwlan4proct:dt..,. lSlI~~dlD1'~DoIi i:lto ClIIITOllleOI:')' IfJ/
O\l: PeNl.)lMllllft """'" 1!.1/I.lOl t.IOl!flmlllU\d Rcal.tl'lltloll A<<. dIG ka",.!WI R#uullltktll "1""" PCllVI.)dynm. Renl ~ltMe CollVDllJIIllKl....a tilt C'" orJdU..otthr N,tta.1
AIID.a.ltlf;ln or .R.Si\LTOllS"t and &(p'tX:I11I bI: "fIP"l_d nr the pI.........lua1 tha,.",r:l11 dMu SIIIIoIp_lln will _1~11l1J ~~i....JlH>. la. "~",,,D( "W1'I__....1th llI'Clh IaW:I nnd
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a. ./bill, JJ_"I" LKml/ft ./l1i 011_ "
s..........." ..". plL)' .......... ..t..ny_l ..nil.'U_......,uN by.lJl' pl'lM'll!1_. .,fllll)' Inw llI'1'tlllIlI~.hm ..rlk Ocornman_llb ..rf'IlNII)fWIUIbl.' 8NaSpaf~ IM1I J\>>UIIIt
........ LhII' thIlIlll411lt.rn..,...Gar I...__IU ...ntI.Il.....ItJc.~on b)' {II. CQlbJnmlM;nkh D[PCw)'tVUlIIlIU't: UllIOedit\C\!c:cy~~lhil\mllIy._I:i.~
IIC'....dlumyIlClni1mlb1alfdu..lIl\lal\lll1'BqQlNtaaaUI. SlIlsapR.lDlt ,,,,,11 pI\)'lIIlducl(or....."b....hlp Illlh.lIuovlntlcm. 'IlI'llCafJl b\ tll.P\......odiP' p~ orthf.,,~
"'... tlmdt tu1dafo and..dwll., AU t_ III ml.Jl b.llrYllId "1_ inutlJ'n9 PI" pntdUullvlty ~ Cho. fcde~ IID......_lI, the !n1R1lnl.i\_Iio",IOl.. \hie C'ornmonwcal"'l;If
PCllll.~.ClIIIJQ'Jo....lm\lJllooi('''1il:)''cn-PmDI''iu.nutDl'o!hC!:l_hllllllltsmlthDrll)' IJI.llILldllly;biJlnut limhellIOMo!OlItMtlUi..,o.=IIJpa"llfIll'td~~n,.m.t~tIllI....
pllte..ptIDtac:.,__til~_b.,._..privjlc:p"",",L . 'i .
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$lIlo'pcIrNfls'IIlJt "IIV...... ....\hurlat:IO bind, obllS"'E ....~mll Bnlklllrb)' IIlty pnu'll...o.>l....~IIII'IIiwl. Uftlo. "'lIllillrill)' M1lhoi:!....d. by EI"",SC...1n "";:;'Vld...t, 1\0....
_. lhM 8111011"""')1'1 lIIl1dllllltd. I. hcItWy nulha,;*d lo ....\,\.11 bliDts ,,'''''.''''''If, b\1YIll ..avnuy IlOf'G'Illl", l.c:Mti ~Ml.l&Vtl,u'\t UIQl",",IllA,"1 'fold.' ~ ,," 1lN1 a~
mcnll .WU'CJI_,l oMrcto !O:r snd IIn ~hl\lrllr B~ .....nt_11fl ~f1Llt wiUl Bh:Ik..<'. 'p,,)' f'l'l'dl<llll' find ~vfdacl dUll' thoo ~lltGmlnion IlI'wlvc4 In $Iolh ~Clkm
t:R nltS. IlI811Mh \hilt d.tcmdnDd. ftlr ;9.Id11:llUl:l1I~&Ion Ill' IGnIWc by "rolott. PrieN' Lo antcrina ilIto AI\f ....M conlraa!. DJ"'4P'IlI!"'~t, Iililllc.spcr.oan sl.~tl ddcmdnor d'MIllpIl~ llIIlt:l
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10. enw-1t.~"OIMWlrIiU.D,~..' ..,. , ,
BJII!!lJIIIIl'IOII .~l coop~. I\JUy with Bnlkll'llll obll\JnInle cn'Cll'llll'ld omi,llolI. _........ PI iln 1ll110"'''t, lI"d v.i!h c11l1uGtlt".. ... ....'1 hra IUn. to Lima .... .t-naitd by
~..~~~":=;~~=:~~J::,.~~:t~=l'.=t:rr~~~~~i'l~~.:l~~~~~t~v:a.=,~=::=n~~~~
~ll~ll..jl::;t~d=.: ~I~f~ ~d~~:lI~O:.:~~d~=-~,a1~?~:::s:~~~b:..~..~:~~":::':h::r-btrdll~":'~~k:~=:~=
In !ho ..,.... poapurU<1f"\ IIfo ""II)' 'w....Jd.!:'"..-lly IlMnl In lhc OOmml.,hm .....111"41 JkKa 1I'...lJnallnd ..I" "rll pro~ NI h DOl fcrltlln Ihll SIlhlpOlr'Ul" Conntll,...;g" s..1,~d..la.
.
.
11/~8/2005
Received '1/28/2005 10,44AM in 18,24 on line [12] for 4659 . Pg 7/33
16:42 717-751-e~23 JGR ERA EXEC
PAGE
a7
,t. UN"'r,c-irw<<to~"""4JttnU>>Yb."iI.tJl~ . " ",
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LboIilnl!,..d.noy IGnQ'IWUIlhnlI be fit.d with BrPkcr wllhbl twJ:qty..tbur(1<l) bINtIaJh'r IWIIlpt by SIlClllpcr--. AJIII~ Md..-c.'y~1mm3 .tnIIl__nll_... 0,.
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11/28/2085
Received 11/28/2005 10:44AM in 18:24 on line [12] for 4659 ~ Pg 10/33
le~42 ?17-7Gl-0~23 JGR ERA EXEC
PAGE
18
BROKER I SALESPERSON
INDEPENDENT CONTRACTOR AGREEMENT
Till. "...", ......"~"nlk.. 1..01 ~P"",v..j "'... .......... _.~I...".., "". b~.\b. n_'Ioc,,, "" 1M P""""1hIlQ ""-lolt"'" "r RIl^t "oa.~J'^~.
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This Agreement b o'~''''''n'''";. (d'~1 ,~ 1'( b, 7-!. Z Pe>..-- ,....., :f,;" k ill! ~ker", R,4..l:lPr
hlll'CVl"lklrn~",IU~mM,,"nnd ":::ro.__e:. c;.\.~ -+_." 1~(..tttP_ I\oIInliM r_"lo....8I1kl'1t~'Wll...
Whereat ecot.-Is ImHlI,(lGd In bu..,..... "... n.etIJ Ettar. &oker lInd b d.d)' It&CIl\ltd Wlln."lilllln'lho4IC1Ivlti... urn "81"0",," II. d,din"" by 11lc: pc"n')'I.....ni" L'~I!n,g
Nld~""'KmAq.A"'Qr"F'lIIm.llIl)' 1",19flO, P.L.IS, 1'I....'.III..nllllnded,.lIl1Id
Whereas, BcvkermnJllInln. Dnomma.... o1tI_ ~eo:tll;"'pcdw&hfU<'\,"'Mna... """,.\:IaolninM~~lpmc:rll--..y"ndlncld"'nInIID Ih.PlVI_~
or.rid. bulUlCQ, anc1llnmod wllillllcric.u cml.loy=lI, Ilnd J. tIw::nlby Rlllalllo 10 lICJ'Yh~!he r"'hli<; II' II ~ .ltnla brok'lr, IlIIfI
Whmll:r" ~Io.t i. d..1y 11.-.__1:')1' I"" Cl>>IlItDDnwe.1lIt Oft'l'intllylYf1nla lIlI ft nIIIJ~" ...."''''_.. 01 ''n_1/ug broJrcr" II del1ll.d b)' ,to.. Pa1lnll)'1...Nll&
U-,inll_ RllgMtnnl(ltl ^l1I.. IIlld WblW1::/lfllr it dll,,",e.J Cq till t.o lb'lnllt\Hlllldl'lU1tn~1;: ofBmb::rMld.s.lttr'l'~ 10- _\cor Ihb uon1rllc' \Jpon Ihoz ItlmII "Tl11 ooncUUnnf he...
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NOW THEREFORE, lor nmlln c:o.uidCI'"d,," or lIlu _.~J _'l.l\I~il nnd prwnl~c.I hemn olOftC/llllM. !he lII1dcm~ hcroby ..H.... in,.. .',be !nlln"""I\!:: 1Il1i..k1. of
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nf lo:n (10) dn,.. "liar wli'11ln ,'oll~ (0 lbc.koJ" '" =nil\efrlla \) Vllo! \nwr.ln"'.. 'MIl _ dl!l""AAH wllr. t11'l1k... on .... bc;r~ Ii"" a~liVcr d.ll1Il nl'1d Illlllh I'1lZIClWIII dnt~ ..r til'.
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11/28/20e5 1e:42 717-751-0923 JGR ERA EXEC
PAGE 11
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TOMa pric>t lcr ~\IJt', A'f'\UIIrltl.a by chc j(W;;OtllSJlOlIIlRllon I"'nring!he dl"f"Wa. '
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Thl..^IiP"""""'IlI....." h. llmlllnCiOl1l11'lry I')' In.. pNlles "'Cl'<:lo, '" vnhh.....
19. a._""'If/..~
Thl, ~manc ",hAIIIJlJ IlOV<:I111'X1 by nml bllllll"'I!h!d pI,"""",1 to lI\c IIwro orlho C'~ll>o:m"'Q"llh "rPenn'flvnnl,l.
~(). S>>~~'I''-'' ,.. /,,_ .
n,b ^pancnllllllllllnun ,glha blllld'l~ IlnI1 ba blllotlt\g 11J>01I the ~_In u.1cn;qlI. o(brok~r. 11011 ^llRCI'IICI'oI, hDW9Y'IJ, U blllad on Olll pe....I\A1 """"'...e. ",rSnlcspcrr:M
IQlQ :llIt4lIpC'll<IIII' shnl.l :n0l4elel,tllll;; QJ",wl!Jl:lny ..rSlllu"","o..', righllo I'1r cI_lliN .hc:noun....... wl.I,.....llJ~ vri..........- '...nl""" e>f 9roltcr.
11. P"1IfD.>M..IiI,U.J. , .
My offlCG roll<::)r 0I'n.l1eJ: IUld pl"OClCllloaro'lmn\llllnow ....islinS t!Nl"","",flw IKIoJIINw Ml>CIl<bllt1ll>Q be: bllldlna on Iheputillf.
:1:::. llJtrbopA,,.,,__f.
Ttm...~\ tlOttllil>1oI0s lhI! cnlj!"O AlP""lIInlll" "twDIIIJl the BrcJc....nnd8nlellpCluon, lll'Iellh_ fU'II IIn lt~'II...,1JI or\lnda...Ulndb\asl....~,.IIId '-dn,
INWrT'NESS Wlil:!RBOl", Ihh AIVC"'....1 hM be,," _IIL1!d <>>1l1h. d,," (nl rJNVD W,;tll:1l.
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~.t 5"0II1d IlIIlII.lnl thIl.l YtnUc:n amllDllcU"IN deIiolrlbilliOSN"",jlllIUOIl'R I'nnrn:lnl n(.Il(OllCkM" WIlli f1I~~-I.'" ..m..... tupplll:lt, t..l'll>llon... alo., nnd. Snl""I,arsonCIIMmlulOIl
lkb..dvl.. ""' prvvI~... SIlJ...~,,:r-..
n:I ".n""'voMtta "'-"'""lauoo. "'"
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t,lIJrVRlcml' rIlNl'IlI\'..V...",.A A~UClA"ltl"" OF "....."TUIR;.. ''''4
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11/28/2005
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Received '1/28/2005 10:44AM in 18:24 on line [12] for 4659 - Pg 12/33
16:42 717-7&1-6S23 JGR ERA EXEC
PAGE
12
BROKER I SALESPERSON
INDEPENDENT CONTRACTOR AGREEMENT
Thl. Rwa............t.......... "Ad '''1''""'.11 f/'l~.b.\.I.V>Lu~lrl..~d.tn Illla n)l. It.. m-m.....R Ptlh..l......qlv.1l11 "1Ul>al.Il"1l nrll1l^LTOII'" 1".4141,
leA
Thi'Agreemenll''''''''''h'''''''\''~ ~ 't; ~ e~~;i ,.;.,.,,,,, ~l! k G4uah<!!.;;r?e4.J-hr
11~{T1atk:n'Ofl!:rtcd\o",,"Bmbr."-.,d '~, .1 1"1 A r. , 11l.'f~~lln t. "'R.:rn:rtIOM"SntL'II"""llOn.'
Wbe~llt Dro\Q;rNi gnpac:d InbullCncMNlD JloaI EllentgBmlmrlUJd I. 4ulyllCCMOd 10') cnStlP In .1111 ul:lh'fIlqlotn ''B~' fllII d"nllcll hy'llc PClIlI,or;y!VIlIIlIl Ul:C'I11lf11,
p.nd ~pdnYlolI Act.Aetaf:Fc'bmtu)' 19.1980,. P.L. '5. N'a. 9._lImcl1dod, Glwl
Whereas. Brokor'mPlnUUMGftO Mnll'1n1 om='9mpcrly gq~cd .....U.. fl4mltlbin...1I~tma bM\nIftnli oIbor tlql.lf1n)Imt IlCCalIlIllry ElII~1 hlcldlJlllllllno lliQ proJ'lll't' nl'c:TI'Illnl
or 'Pld 'tnW~ and IIbIII"Dd willi clerical omplO)'OCll, And ilr ~ Iluitllblg 10 lClNi11lJ llag pobltc nil Il roal OI'Iltllc bmkcr. .mcl
Whereas, SldC~lrtlmlarl '" duly riVGQllICld 'by thA Cunmum~Uh o'1'mM)'l'V11l1Ia M a I'l::DI altIIlc ''NI'C~OU'' or ''lRlnllilllo. t",1"'1:'" ftR Jonhod by IlK' P~l1l11ylvllll11
Uocnrdnf.andRoa!llitnlthm ~ .,,6whQIWR It V. docmod to bQ; tattlo1TN1~IGJ,adVl>>11~ ()t'8rt&ctNld 'SnICIlflQ!tWl]ll1 In l"l'KT nllll OOlllrMllIpllllha IfIfIl1Il "lId oonditiC\1U1ItQfQ
fn.uf\cl'lIdfnl1h, '
NOW TH8REFORE. for and in r;:ol1llidcmlInn nflhc mutual COVDllllrllR Dud pmInlllOll horcillll()nlnlnod. Ihc mlC~fgll'Od hC'l'Cby C'lIt<.:t Int'" Ihc (tdlawlna artklCl\ t,
~ltt
\. 1>tdrrp_drmt C"",('I4am'.
The ToIDcfrm.hip uf Sal~JIIXlIDflln 'Brl:Ik'r;1r III Ilud or IIn Ind~t. cnNMQlcr, Tll pr:rfbnniro, lh" 1'I'11....iU"" lit n nuol cll4Q~g "1II1~llnl1" "" lknucd bY Ihc lLl:'nl E!j,,1(
UQ::lJ1Afm:r (lTId~.bNnvtnf1 As:llbo;rclnaftrlrrcfbmxl ta ....Act"). .-t0llp0nl0ll 1Il1D11 be ffIXl m dr;:vnto MlCh p~N1lml of hiwhQr IImCl, ~ICflD't IIltrnrlll amlllldll, IIll 1100",ho. dc.:1UI
APfWClprllitg, rn ~c; wi. tho Indcplllldc:Pl ocmtl'QCtar IllUllA,. S~~ d,.,n be 1'ClIlJ>Ilmdbloo 1fW tlCtt'nfllc:4ln8 IUIY ".11I1ulI rcrJ\llfl:Q Ily Ihc "'at or olh;r IA~ of JIll
CQl'...notl~11t or~Vllnlai SnJ~ abaIl w<<k em D ClDII'WI'llllltlOl'llJoMll and l'CQC1Vc hCl NlN)', ItfllltCl boIlbrlll'.. I1Kdil:llll bPllCmll l1""utI'on btnonlft,. l'It pmAI Nuwlllg,
DtJ 111.IIIla la..w, ~nym;ml, Snclal Security UI'" bmriUCM prIV110au tlUtca (W1\ctQ .pplfClAbla) 1lII1a]1 bi>> .rlhho;ld free., 8l\lqlpcntoll. SAI""flCTlInR 11I\011 pit)' nil '(lrTIrlO'lllliollal
IkCl1l'liJl~ I'bat. 0lT0Al and mnt.lanll hllmQ1TlQCI J'Ift:IT1iu- (~l... o;'l~ ptOVIdOl1 hlln>in). mulll,UIlU"11':x,o. Mdi'ar 1:al.1'J1U\I:If ~ rc:ca. Inobapenon a",.1t not bl
I"C1Ih,..s ..1In ftnp\l))'t:e witknrapeat to the~.. pa1'ontle:lfhcl"lunder,or r~1Q'lO,1 or .tu.Le1.:r IUIr'pMN nr reot' r:.11l:'pa- Illuh'" ~h.. W",ll'rI' CQmpenf11l1on (\1;1,
2, S~_1qJbrl.
SolCllRp~nn ~ to a,at1UlJU1, (~ant RlAI ~ M~ to.wi'S",hnl\ fullh\\)lly. h.1')'lll1y Dnd 'Ct.aU'l'l!IlB'l11: 111N'l~ afTnrlll In lllO'U .nule. I......", lU 1'\:111 all)' ,md 011 ronI
CfIUllC I!,rtl.'dwflh Smkc;r, ta Mlioit MditrOllllllu.,lnl"- IRl"torru:n IlIlId clienll'l tbr Brokct,n.nd In otb<:'IWI'1I! pn'llllole 1111;1 l>UAi1\01l1l nrll"'TYltlllllll~ Jluhlic hI ~I ('1IIi1IUlmn..a.....
licm..la Ule=d Iltt\l_h (>fthQ pw-LiOl'l hatlC,,,maydcrivo I"" IPl'njCltlF~{ flOIUllblc.
3, Q1TttvF.riI1ti(rlFo I I I I' .
Brukl:f- Ilhllll lft!m lima'" tfmDo dClIIiSt"Ato tha offilla wt1h whklh tha SaI~n IIhnll be ftM{JIJINcd. 1. 1111 nmoo IIlml bu rn'V dC'l.$ willi III1C I n'r1J1l1hinQllond cC'f'''i'l1IQ1\1 01\
dcomodnDDC'aN')' m 11\0 dllllll"OtlDll ofBNlltot b lI....pmporapcmllun D(Ilrc:al Cl'IINI;;otfl=. BMltr:r Illu>ll nVlkc lIvAIlnJ1'a Ie 1110 Snle"JIt't'-""l1l1l:nl'l'~'IIf IllltillQfl or lhu nffir;fO:,
tvld nin:cM. uJ1l"l1I1:q1J~ to tI;l&ll,;1!lt thQ Sal~ \11 ftl~'WOrlC"\Jy 1)l;\'\icl:" wtrocl;!(ln,. and CO~llrlll. In lito llxlOlll dDCItlOCl urrn-nrrl1l1c I,y 8"'k...... ~nlo;4JlCfl'lClI ""'"11
pll)' fur 11111i' db:l;lInol) lalq'Jbafto clUWSO" -.J fllf"lN"h athCl'l" fbnnl\ oqulpmcnl, lluM"Ift'''' A11l1hoJl be IICI (Orlh III Hrokr;-r'1l ,willeon om~ rnllolt'lt.
4, A'ltrm"lI~e
S"aIp~.hi1U fUnliJlh 111A1hor DWt, 1W11)1I1O'bI1c ..,dr.~l\Y..u Nlil&Qd l7l'IJ'/0l11tOf1l111iJ1dBmkorllluLIl htlve II., l"C1IfI1l1'lIlbillly MollllliJ In SrdCi/lflCl'llllll'R 110111111V11,1I0 l'II' tnu"""m~\lirn,.
S()I~n ~ II) er,ny Illlbllil)'.IJ1A~c.c "flan h lV1icr lNkrtnobilCl wllh minill'l\Dllllnblllty Hmlll'll'1rpno.ono (ht each pc;:nI(>ll lIud IjUII,ClOO 1l1rerl.ll/! N>l;!1dc111 NHI wilh
prat1CIf"t)' dmnng",ll",bflllY IImlUl C1tS,(I,OOO. Snl~IIt>" ll~ ta fumlllh Bmkc:rwiJh II. IMtllfiCll>ICl oo:rtlfi'lna j)nlllrlll1nco wuh Ihi.. reqlllrQlII~'111 In be dcp.u;i1~ \\Ifth Sr<>lmf'
QlI R'J' bClftwo 1110 r:.fkolfVD dala JIlut ~h TCI'l'IQWI11 dlllO of "I. ~l~'t. (1'<"'" otlo.~ tltUeo\M ~..",\wr ml1)'TC'N\L~IlI'>\'1\y rQl;jlMlt. .
5. C'mwni.fI,fl/fI/f.f.
SDlClI<Jll;lf'lOmlllhall 'g<: cmtHllid to 1I...llQTP aflhe col'l1:lTlllUlfno. alnlad lIfId rcocl'\'al ~ B~ lllI\CCl.'WClaUIC:C willi OmkCt"~ Su.\olIJIl;f1I(1I\ C\"lll\\lllllf,," Sl::11Ct\\\lo;. h\dbl nil IIw
dr.l.Cs or the ~ ~\itllna Sa1~ to D. onmlT111114t1n(c.~ (\l;rtainflllJIIAHn" JlIlICtrlll J'"If'OI''Y'dl1dcr ~l\tltl' fir fII1i~ Clio,) I'I'T ~ olho;rwlltU "Bl"o:r;:d t>y Iha f'J\rllQ./llll \\oTllillB
DJI '(lllo paJttC'Ulor lnalNl~Icm. 'B<<I1cor lnay allC1' hl!: St\1C1C11cr1lOn CalrnnlMlon SclJodukl &om thhCl to lilllQ withCllll ....Inr l'IullnellHoll. )tgyllllmlA kllho IIOhcdulc IIl1nll tw hmYK'-
dlluoly-rp1iQ9'b1q ca All fUtaTl; tnlMoodanll. n~ dMNOIl ofoommilllllDl'1lt bot\vceI, Braker and $al0IIp0tlIi'>1~ lIIflnll F,lllnw c1cdlrl'llml or all CJlpr'llllOlllll:llCll"Ctinll kllho SnlDff{lQl'llOlI
CtllTlnd~1I $cllOdulc. Tn no GQ;1Q a1~1 :arnkI:r bll U~\Q tCI SalCllpOlWm fI;w" lll'\Y calnml/llolaN\ ",fit ~~ "U lU'.II"milWl1mWl dcrlW'l Chilli n lnUlMOtlol1 dmll be dq'imilcd
wllh thCl Bft>_ DII TClqu!nxt l;Iy tho Actl Md'or lbJlClIllIld }l.QPlIDlIOI1lI of'hc R"I EIIIIdc: Canlml,.,.{nn \Illd llUbAoqoallll)' paid nCl&lotdllla: In lI.a SIlICII'IJ'CI'Nm C,mlrnllll'llml
SClhadulo. Thill arRln"bldiw ...ewllGko plaDll DIIltt10n IUI praoucablo lifter lXI11eClII(q1 UJd rvuol1" "'",gh ll'f1l11miNd(llln, f& ill ulld~lnod',anrJ JllfI"l;'o:fllhal IlIe Snk:1qxnlol\.... nl"lly
f'ClUUIn.eT'>IiOll tb.. Ilia *""",,,,,,,,, loQin.. n:.nd~ 1JDdor chili A2rc:cmC/lll. flllhe SaICllpOl'YlIIJI'II .1111\1 "tllllJ c('>1mnlu(t111l1 \1llid by lito fW\\<:i\ 11\ rotol ell~ tnmllllC'litona.
,
6. CllirNlF(!1'IJ:. .
111110 In'l;!nt 11I111.11 s.J~, QI-F I..,. t1\ll1'l.1I1a I;I(Immllllllrm OTft:o cM1lb1l1l1~1:IY tha Brn!ccrwllhtmlllt= j>rinr ""IUllOl CL'I1~lf L1( Dll1kl:r, Ir Un*"Cf "hall hDY!;:' t'lllcrccllnlQ
D lIf'(!'Oilll C0111nu:l or .r~ ponain[nv In allY pnrtJ,wlur t~. &fotmr flhI',U.,.ctvba ~CfIpCI'lITIlI tiT /l\lcl1I1pCCIA1IWTMH!;:IfIClII. Atl I%llIllnlllVllnJ1ft Itl1d r\,~ Itt'lIn A rnr~
tic:ullU'"tnlJlMiJtlon ahnU bcpll)'ftblo10 Iho.>>rohr. S~C/lflCI'I"IlOJ1.DlI not bi:f)C'n'nIWlIly Ilnble to Bmkw.ftJr IIUll",nnllnlMl<1t"'Uctl R'Ci:/VI:1 hy Om""" finl" "Ilrli~ 10 u lrallll--
~QI\ Tlnl_lrooh 1'1011J11l)'MQh~ i~ lhc nl.IIUU ofaoltolllcm" JnlOnlfon~ 1'11' ~1l:M CM\lfltCl. Pmlrorlhnlll1n,";.<O Ihe ~d~l_IYO I'lshtlt> ddC11rllllc ,...helh"" In C:fyllllnl.'tlte IItiU:adllll
tQ CQllOOI n oonuniflRl(1tJ {1'1" ~ or 10 ""IUo ~n)' olafrrl (or tho MnIO.
7. E6rfc_4J'lond,pA~/~
S4lcl!IJunml and BrokQr lIII.n clnnd\1r;:1 bu..If'..- IIIld fO$"dlltClwarklng IIC:iwdulOR "" M tfl maln13l1l IIlull\1 hUINlVIO dlC' w.md will, bI1"'U~'W'o Im,nlll. Gild T'C)1U1al(au nf tlml.'l:1'
oud S~I lIond.~'" 8pv1ll1 10 CK'Itfann Ie> ~ .Imb'by -'l 'll.WII" NA on4 ""pmtlona. lIud andI: or elltlCll'l 1IV11 ore blhdina 1IIl.. ur I\fI[1Uu!1bl<: In, real ClClldc I;1rnfa..onlllnd
JIIIl~(lnll, S"l>>JlOl"llCWlD.d BT"1lkwllh&U \>I: JIOVOI'rIcd lI,Y tbo Ccl40 of:BIhJCI'l orthcN4I:fOhlll N:IIhclaUnJ1 nflUtAT_TORS"'.dIC A&L Rllll:ft ,,,Ill n"b"lllnlIOll.,n(jho:)Wa1 E*l'IW
Cl'llnmlmlatt, _lhe N\n'IO mnybC' fh:rm 11mgln Ihnc amended ~"'lIUPplO1T1C1lIJ;:d,. tho omJldil1ldOl\ WId by.ln_ (lf~hl: Il1gnl T'C!nlty bNll'll {IW" lIl1l:h nlhQl'"t>oorcJ.... lI~ci"i"" ~
mGY be ~ Ul'lflllJ. nnd Illa 1111". nnd rvaullLlIClNl of..~ mulllplo IWll1if ~1l0 w(th wblc:h :Eh"okcI' Ul1ty lU1W (\(' In U\Q fUNf'C M:. .mUtolll,d, Dn.l~ .....d ~0IIj'1m1011 :molll
1Ql.Nt\ "_t.lil"flItlp!,, soneS. lllDnlli1\&,w11h llM:lNatloll~ A.Mnc:iIlJICIt orREA.t.TQR.SJII.lba.l"enllllylVl'lllll\ Arlmi:lallml o(RBA.LTOR,S-, Mid thlllllcnl1'Qlllty banntol'lIMtIclnlinll
~1K1lallld 'by Bmlcc:r nr lift moy bl) ~vd ~tM by lho parilOll. Wf>onovw :ernlea' ftl . lTJl:':InbCT "rallY ~1I1 CIII11lo l1l'''II''~IIC'l11 ......ll..J, to'fulM 1l11l'll1botllhitt fd ::lnlel\JI<."T1Q1 In
..,ml""lP",d_clon, 1h~n Snl~11 ~ thllC hI;;(ihg IIh8l1 lK1aomc JI nwlibllf"llrLd pay flMl1l tiT d11Clfl requlnxl byl<1lch ntclTlbll1llhll1' Dr,lk<< mill Slll...lt~111p:lC tCllle bMmd
by Ihe n11t:ft mid regulallMtI Df JlII(:h CIlJIUlIDflooll J1OriNah1K el'l dh~ DNi l'ohmwcb ot~lUII 11I-' Jl1""l1rood\HU SatcMSI<=I"lInll nok'lmwh:difU1ll't::MI:.IIIlInr1 n( Q. ~rrDnl ~ fir
!hI! 'PI:11nlf}'l:w...hl J'WaI :Elltntc I..iocMinl and 'Rl=B'lIIJ1Ijlan Aol.lltc Rufaund Ila8Qr.oliol'lll flf tho JI1::aMllylvnl\rn kenl ~Inll! CmrrnhlHrnH, "lid lh~ r,.."I.., p(Eth{l;IlII 1)(1111) NnlIOll",1
~~:~ialiPlI tlf REA.LTORS" IInd IlIJI'tlC'Iln bII Bf'ItIdpgd ordlCl prmrlllFanR tllt;f'C:llr..n 111lr.l Sll]CIl'flCY'1Klll IIo'iIl'oond\.gll1l1 tlClllvlllt'1l III II nl~llIIC"r QI~II"U:tL'11 wilh IlUcfllo.wlI !lnd
8. .Rwd]Lr14AtLi"'n.Wlllfdlhnt,'1. .
Sal~l1 ""..U PIlY llll) COI'Il. Clfrln)' rclll Q.'Ilalo. IfCCfttlCl..~uIn:d by tho nrovilllnlln 0' I\fl)" ,.'" ar roSUlnllOll "'fill:' l"otllllltln....U1l1h or rnlll/lY/\'mUlI. SlIICIIfICl'(1a.( J,(UlU r,mhl:l'
CI1l1t1ro thOt Ihl/J tcqtllrcmcntl fbT lIiXIM~ 11II a nW c.;iDta NJClllllCftIOl1, by U\GCcwllmm~th Of:POn\lllyl\l1lllm oro tIIlll"nlld In ~ I"Cl'Irc:o:L In&l'hwlillllholhru::ly 1II\IIIIIl'hol!(II1
nfmAnd&fm')'C('Il'Ilirmirosodv._Utmal t'Vq\Ill'lm'1OtIlA. Sul~ "hWI Jl11J alii duClll rCtmcm~l'Y fq Ibo Ml1Oclnllmll'ifIQt tmth llllho pn:g~11l1J' 1W'48"'ph ofrhill ^~C111
fll n tIJncJy 5..1I,lou N>d lIbull pi)' ,q IMQlI lIII mlQ' 'bQ fovlod U)WJI1 "'como ar pmdulltlvlty by diet I'cldorGI CG'\IcOlIUCIlt, the Inltlmql RQVOIlllCl Sctvh..-u,. Ihl! COlnt'n..mvQf1Ub tlf
1'000nll)'fvnn!-. nr allY IDeal fmlnLoip&lif;Y IlII" IIChn(lI dlatriel or IIIbcr Mllllt '81dfll1 GUthorily inohkJlngb,lt Ur;lt Utnl1oQ;d ta k~n, t~, aev-npnllon 1I11r1 oceu/'llllll'1l1 privilofl\> ImtOl'l,
pc'1' ClOftlta l4Xcla., \llCl'OMdkl or """'".,. ,mv.'1ggc lax_ '
9. Amh;,rI(I,rfJ o..,'OWJt.'t. ,f
SalOllptnt:llt Rhnn haW! na D\1Ulctr!ry 10 'bind" nblil;MCI .. camndl 8mkct 'by ~y plfIhll>lo ttTltIpl'b,,,,;outntloTl,. l1ul~"'" IIpcclncnlly o1JllIl'1rlz~"11 by I~nlk e-r- ill writl..S: pr~tjd~tI, IInw
~. UI.t Stlli:llpOl1lCll1 AhGJllUld I" hcn:l'by outhtll'lM lD ~ U""ln& ~ bu)'l;.'f uaona:)' CIIJIlt~CI", 1_0 U1NI&8C1l'DlIl <<tI11l\1C1II, JU walll'l1'1 nil Adtbtdn fllld .......9-
hlC1\lIil nllTl'-lI1CfU1nllhCl'olo fur nnd ('tTl balllllf of Dmln:rr Wll~ nIll in CQI1(jI":1 wi"lh Jkgkw'lI qll1\Q)' fIl'MI10C'1I11"d rrnvldod ~hlllllio 011"1111111,,11111 hlY1'>lVCId bl 1111011 lINI...cjl(ll1
!:~~~~~OI~:~I~=:'nr IIDllh 1m"*"",linn orlllOrYi_ b)" BfQJn:r.f"rltlt In CI'tr:ri1'111" Inla ,,"y ....".. tlOIll~ <>r na~"",'" SllleIIf'g:rJ\1lI1 Alia" t\~tonnlnlltha. :I,gDItoy nutl
10. l!1TDf'P.1UI Olld.ui(lll$ rlf$J4rwJcrr.
SilIerlJ""'TIIOR ltblllll;QtI,UlI'OlG full)'willl Bmkar in C1'blltJnln,CtMnlnnd r,milttllan.. ~'\1 an lIltltll.u". anll1'Vl\h do6ucli'ba.c.l1I1l'1hnll rl'1llllllll\C In lima he dl:ICI'InlltC'd by
Bro\ror. $lIld h\lllllnllllC _l\:lllu ~lDc' SoIClflJ'Wllh'lll8alnlll' Iilt\>ilitywhlllh I~ 1II'"1~ In cam~tl(\", willi _ICl fHlIld_1 nr SnI~ln'ftOJ1I1l'1I1U I'IUllw I 0.11 t'IIllllo lilcdUICC. S.wd p1Uoy
or roh~h:;1I1'1l1al1 (It)l1hdn un cRdonIolnOr'lt IIGmlnga-rola:r DlJoJ uny lI'U'bllidlart;ul orElrokPr I1lI u.n Mld"ICIIlllIlll~l1n:d nnd IIIU1111101l:>a "'lb.i1oct 1<1 "nllgr:llllliotfO'XOcpC 011 II ,,,111111I\1111
',nftCl1 (lO' ....".piarwrlttCl'll ttnllec to Bm1n:r. A.~llfioal" or.rd Irtll\ttnnw IIhnll ba cky\oIIflcd~lh Ikolror nlll1r blIll'Il'C! Iho alr....Il'PO It.h. ~IW;J Q\l<lt\ t't;\"IQWd \k\Ic~"" "li~
^woen'~II. TI>o Olllll ohald .ntlUro.nall ftl\ILU be. llMd flUI"1'I'l\Ilot \t'I t1\f:lwrittllt1 )'KJli,,~ arDrokcr. or, 111 IlIc ablll:lIl.'C thlln:mr.1I11l::11 cl1lllllh,a.11 he. bnnlc by Bmkilr IIlld Soh~"p"",n'l1
in the AQll)a pmpQl1iall nil they wrmld DCII'1I1OIty IIhBl"c In/hII' onnut"I/",,'nn ~tiq Anm -IIoIIIIIID8" "lId,gj1) ",( 1\ I'Impcrl)' M 111Il1 fl'1r111 In Itle Sinhffll)Cfto,m C'L)ll'IIrJIMlnn !Ic:hc:dule.
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Received 11/28/2005 10:44AM in 18:24 on line [12] for 4659 * Pg 13/33
~1/28/2005 15:42 717-7&1-0S23 JGR ERA EXEC
PAGE 13
II, LI.~ C_fI'aar., ~wlCf4ll(Cfl"'IUI"PtJrw1'< .
Stllefl]>>mcn Il8f'CCll !:hilt an)' m\d ItIr IrRiltpl of~, _gency IIlB"'ClroImtft, and _II aI;IiOll4 lakcm In DOIlncctlclIl ""'1I111C rcaI cridDle bulllll~f\ Ahalllzl II, IIIQ "Dint' t'lrOrolM"
Ulltmlf" nnd np~ otnllrPc.t.tt ftfulll 1M;. filc:d witl1 Bnokurwilhir. Iwcnl)'wlbur(24) llcure nftl=t rocoiJ'lt by SCltQflfJ'MI\.'lII. t\ 1lldllnallo.lld .~layCOtljrlWUI ~holl bo IUld ralfv.(u lh~
~1\J/lIVO Pl"DTX'rtY 01 Brnk'cr. ^II COI'J'OIIflOndanco I't!C'clvtld, g(JJlICII DtcMJOlIPondgfllCO Wtil&l;>!'.l1lab1.. 1/~II..& IUl'blnlatlUn.. I'I\e\uatbllda,. i\\ca. phnlnsmrh.. ~. \~.. tlpil"
.~ w;Qt'\\Jl\~1ll6: -tnfutmllo~\a\. .,4 IDlY mwI aU (lQllO"I' IDllltrumanlll, doavmon~ or lnftmntlllotl of allY nuu1'O wha1flagvar oOUCll:fnlllll lfnllltljmicma hlUldlad by Bmkcr or
SuJ~ at' ~0iI111Iy, arc ~d .hAlI romain lh PmJlClI1y nf' Broker f1n1vfdc<l dulL Sal~ c.. ~IJ(I04 ta a <<IllY af ~Oh 111"'rumClllla .lId InfonllDLlI1l\ \Iron ~11\'lblc
ftlq'UCIO( CQIlQllll'Ulflg AnY tr'dMI\Cl[tr!l In which hclalhc III pCl'7f011811y Involvad. Tha J'lriWlIKlt'CIQlIhIlU lIIuluo.lly approve DI~ nsn:c iIpo!l nil cntltlllfICllldc1loo mu'(1. U1'I: oOtnQeJ of
Brnltcr lll;ffwnlng in t~loM handlc::d by SttI~gn. Bnd M.a.ll t'mtbI:T apec on 'the fv~ 10 be \Id ,llId lho armlc:'lltll of nil 4nlllnlcb ml.l llllM:T lhnnll bPrnn: !hey 'U''O
J"'ClIleIltcd to eI'gnf" lI1'Id En1"lan~ fur 1I11(natwc.
12. Dttp".'iitA
A\\ dcroM~t'CCOiVQQ 'gy ~1~Jm'~ l11lho coUf'110 oflll waf C$tl11O U'DMnDtioo oflD1YtI~ "h[l,/1 'bo Imulo~iRt'"'Z .nvlltt'lm-od kl Bro,," Rlr .ll'flllllllt puMJllllll0 llKlO "'CI. Ih"
R.ul(;:ll and 1t:q~"lndoM Dr jh.o ~ &IIUC C'ntnml...tol\ and th" lJSJ'\llllflQtl anho ]1N'IIQI to IIKI lTIlnlllWllifllll tWfl~ cd. bl'tWt:Vl:T'. Iha. Iny dl:prwIfI III tiD Inllllll(lrTlcd by IlIKllhor
brokor ofn:cord j1uTl'I\lIlnllo (he ACt. Rl~ ond Re.sulalioM of tbo RanI .&I1ntc CLimmf"n1mt n:nd IIpel"""I! or II"" pnnlCll kI " 1",1I1""'III~Il'l(iI\ll hu In~llC:dUuo;ly ll1mldbrT<:d \0
"UOhl>nlInKWllhlllQlIAln'l'!lrlo.to;l\a!toc.talhopCU'Cl\ndclnBIIl)CtI~atu:I'QBmkDl".' .' ,
l::t. r""cnl/l(j1N1lfm. '
SI1IOlIf'\'Of'I'tlI1 .tlnlllnckmlrilYNId hol4 5mb:r IIlIltnIClrll' ftmn my IUtd nil glahM. i:MIII, lil\t.lfUtl~ U\d jl\dflllCll\l'" ,"<:h~ll\e A111lI1lay'It r~~1l. nrbrlu; fmnll1ll': lInenlintl,,1 nf
~~C1UI aol" ofSal~. Cll' ncl8 QQ111lda Iho 1ICnp:l ofSat~on'" 1W!llllrity, Whel1 lillsnUrm or Il. dl,lllnth: DrlllCll RXII;cnMllB n Irlltllln~lllIll III whl~h ~Iqo~u 'WI\I1
'nvolved. Ihl3' r--t~ h~(I Bllllll mPbmlty c;oopClmIO with ~1 orher, rtI di~taI or lillll3linn whoro fhenl hr A alll(ln lalllQ ...rfc-c:l 1I1t11 SI.1It:;G""'",l 11M ~'tod 11111:'/11/0111\11)' Of
~r:kIl::s:lI;ly nrn\1h1rdc thgWCOJKl ar:SAlCllJ)CmllJn'll uuthaily. SlJCIIlJ'Cr1In" oidWIII bo....lh~ Irol'ltll,. OX!,OlUOI Will U~bllllr;fllllohldjlt.JudaulC'l\llllll.t' flWImJl\ lIrl.tug !'Jrnn "re db;pulC'
01' IIlftllKtan. Tn dtl.t'U1olI<< U\lptklll whw6,~ III. Q1ahn U1l:htl o~t t1l&t SWCIIlIf'lClTflOlI hl.:ift II.Ctcd nc,llnculI)', Sa~l1 IIhllllllhnw J III CURlIl.. t'lt,..~llK!l".Pl1d liablllllM
jj":d,,,dinuludamcl\lJIl nndQ~llflrUlchm11",dllJ1Ulc Miltl,allan, Such idlarlna .h.l1l1~ln IlIO MUngT"l'lptlt1inl1l\11lhQcUvlIllOlI I'lraDll1'1I111ll1ml w~ tW"'l'Nld lul'vc br;x-!I.
!\om lho olI\IbJc:ct tnPuI8OIIal~. lllcl M~ of CDlIlt!\ mlpOIMlClll,.".d 1i4b1UIiCll "'"nil \10 without ~JlJdloo 10 Dr~'lI ",hI" or 'ndO'lndnmull111 illite. 1111.""11/111II 'beetl "~h"
tlon ofthcl il'lClrmll'1U'Qilllon llMUObolwccn the P!II"IiCllhcrcb. ~ .'w.llllC\oct IXW.I.....el to) ~C\lt Broker'lI.not S..lt'llpr.nlOl1'" hUern"l" In IIIIUI\(1111\ ~"'lh QOIIUI tmmrohy t11l~
flill'\lt:Ilt 11'1 pn:mortloo Gll flClI: (Drlh nbOVl:' p;:r1Illnl". to lhe: ldumnlf Gt'o;oRlII. .
14. TwIlm.tdllU&.
1'hill ~1WI\t. nnd lho tUll110l1l'lhip Q'OD1c:d hertib:.'. lJ1II)'oo tenllCnal1Xl by ellnor fllrty hc:nlCD,. willI n,.wllh~'1 ~nllllllr_ nt All)' IhnG IIplll' w;lll\.'ll 1Il11!eo;. TJpOl\ Icn'l'lluAliou.
alll\C:I:I:I'\tIRlI(.lll1ll COIOlI'lClICcd 'by S1do,,;pClS'l'lm durilll'lbolcrm t.fthll'l A,Ip'I:c:mcnl /;h41 bg hgndlcQ thmuah &nkerriluJ WNh Ifllch 1II'I.IIIh\lt= nnd CllOprn"ion by' S..ll:IIrJllllWClIl aa
I" ~,lLbl~ '\Ift6ot jhg "in:l.1nWnnl;lCl\ far Iho prulcatrlm llf fhCl: InIDfl'lfl!l Cl r lhc- pan[ClI la tho T'l!III Cll1ntc Invllllcl'lII,,, itlvnlvoct. SalCllfllllMllll. 11111m lennhuulon. 1'11\011 "Itn<<l.[\
Broker wIlli II belllG. nd4 li'1I1 af "'I ~l:Cta.~. -.d pro\1!.bh~ hTolUlllC\~ClllA dtJvr,jnJlCd by Sll1Ol'lJX1'Mll 111I wcn ./WI nil cn"'t""J'Olld,,"l~ IIllrl ,IIIClll1lcnlll rfeJleribed (II rlWi\.
8TlIfI1\ J I abow, lN111~I IlIl'O lklcmcd tn be Iha 1'l:"'J'~ ofDrakcr, S~"QOan furthl# ~ IhDlllpou ImllrllOll(ln, or hi nhllclrllliJllllhrn"ll~1 hc:lldlc \vfllllol rurlllllh In 1!lIl)'
I""'l'On, f\nn.. ~h\J'lUIY Of' ~~lcm Cl'PIOd .n the f'QB1 atnlc buIIlnOll~ pn)' Intbnn:ltlml lUI tn UfUker'<< ella,,,,. CUlltIllIIll'l1l. FOfK:Tli~.. I'" ....."" ,,,,,,.. or 11eaotll1t!\mn 11m
BToIcar.A [lCll!dOllM ftIll11f"'Tll,hipl wilh cllon~ Bl'id D'tWUmaJI nor any I'ltJl~ Illftlnl1Elllol\ QOltconUtl.1Ua~ IIno;Va'l" ,\'''''~ bwlh~ft'. Sn'l,.'1tJl1,'lllllll Hhlllllllll. ~f'll;'f IcnltlllDli~"1
I)f thi" "'fI"l'C'nont. ar In otorlltlmplallon o~r. J'Ch1tIVO ftom lho fUQIl OI'fmtulhc:s c:srfic:sc nrBmm any 1I111ltflllllt. 0;1."14,. flllN1CllI(tlI\R, Dlll'T1:llflllll,Il.'ll.:q. (1lt... IIf iufnrmnllollllhll
III J'If!IflewrtYafBmker. SnI~l'lcnonll IIh.l1 bo: c:ntit'k:d IQ C1optOll ofllCll1aln 'nRtr\unenb'l J1CIrtBilllng to U'llllAll4lkn. in-wlljell Snlo;afXll'lIl'll hllllll hl1nll new 11l1111"1:lII nf flt:T'1I1;ulll,lIl
CMlllnJillll of:SnIClllpO~<m..
IS. C""tmif.rl../,I., HjHNl1'cr",It,iItldn.
uJ'ICIlI tlXtnll1t\lic1,\ _Sal~l'" AhIitD of cummrulMUI an t'trIyfnl,l1~~rmltl whoro A MIc1'l $H'\lfocl C1CiJl'" hlJ tho Irnlll'llUrilol1 hp,.. '1111 ..In~u, "IIIlII. I!onor III.... t1'o~illQ' ~t Ilueh
lroI\II4ctlall., be ~ to SN~ 'II ~ \\Ii~ dlQ SaI~CftlOll. Camt'nIMlo:m 'SWlol:d.\llo I", otYoclAl \be 'line nr',="llill1lllron. 1110tCl "hi'll! 't.." r\llr!nclod I'tllhlllllch Ithlln;. hn..
~. A Mn'Yic:sinl' ahurvo; of $ QJ''' or,!Jg pmount ar tho lllltln.Sllhdl"nr ,"tlClll' OnlllJnlMiN.l. wlllllho....ct I.. 1118hcr. Nn llC'llllITIltll'lJnll CIIhor 111011
fuf"tl'O#O~IClII an whlelrl an a,pccI'I1Otlt hNI been II1pcxlD'lJd accor"Cd II, wrilmJJhy tllG ,,"yw Dncl.Mllct I'Illl.ttbc::ftu'V t<:nnlllOllm\ 1111411110 dt'cIllr.'lJ C1ll1111d by St1lcapenlrm.
lrul_ athq-wi.., IIF'~ Ul 'Milit$. J...'kcwiftg. no ~,nmilllil'ln 'ftllftlltlrw from the lr.Cna tar 1011" Of' IllC rcnlDI nfpmpurlY iIlhatlbCIl"^lrlln ,,"~11eUll1\ rl\li<.lwlna tCl'n"b,,,,llt'll'
wldl UlI) <l'ltcClplioll i:If ct'lmmlHllnnn nrlMna-l'tl1W1 'CfW:IA fully c:xcculed prIm tClllmTllqotlon Gnd 10 cho oxTnlllll"l It'lMO plyltlet1I" nn:: RllX'IVOII J1tlnt 111IC'1'\nln.,I0l1, ~I\IC1'I"C#m'
!IhaU nn1, h.nvovor. Rhnro In UK! U(lnJlIIl'lftI~ f1Il)'llbla In lho fbturc ond 'ttoM:d \11"011 lite ICMO apll<Jl11\ (lr h;:r~ flnyll1eul~ nll( yc1 will RI>&J rmynhh:.
J 6. T,n"I,lnIin" ProD.""
UJlnH terml;Ullltll1 by cilhor PN1Y. StlJI:RpCOlOft II_II tmmcdl~)';
., ,,,1btnlt II I~ nftgn1ulIo.rion wilh . Gnff1I'I'* OlPQO'Q11llns'Of cromlt1IMlanl\ Itl:::: Md In1)'1.'r ~Unll~
1'1) rctum 1tI11NPflIlat,. IlIl~l1R1fIPXt Ih;jfl" kuylIlIhd dQl:\lmc:Tl'" lXJ\ud ~of5Mlt1~t\llnlI1Allt tCl1hc pn1\'I<<inlUlllrnlllO ^1!.1'CCl'Iw."."I:
e) ~ whh Uro\tor for flUlTIMI:M af~Q~ling Co mutually lIpuD 'Upclft a f1'n~ IUIOrfQlItinll' err oOlnllll~lol\ll dl)D Md pO)'flhlci
d) cnoJ'CTlllO In IhCl nodlfotlllpn of'tho RDPI :ElclDlc C'ommlMcm l'l:l(P'ltdl1l8 ."0 l<mnh1o.lIolt gflh... l"t'lllliollllhil'l nr BI\~kt1t lI11d ~lellJ1c.T"nll
. 17. .4rlN,.tUIn of'Dbfllt'- .
Dtllll . It.tardl" 'UtcIlbllltWOOllo S~o:rI'1t<ln OIfld:Brna lH'"~.SaI~CT'IlonM,d..rcoI'CfllDiO 1I0l>1)0rc1; I'f'lOlICIlnll:l4wUh oremllmClcu In UnllM'. Nut whioh .r1>Kllltll
of. JII':~:n~km ':itb. tJ~ n:aI CIlItato t:roItfncolll. .-cd """,;;J. QlQQr;ll be ~u...tcd by IInd bclwcctl Ihc plU1ial illvlll'o'Cd, _II be 1Il\b1ultlod lilT nrbllmtin'lllll tlCCOrdMco wille
NOCIl::KJv of tha COde err EChrdl or-Ihe National AMlCl'll;l1;ol1 ofJt.B~.:rORS". By IIIhl AQI'OCtnonl ilDld IltbllnlLlCIIl 1I11J\1I be mnndalory owl '''mkll'l" nud Sl\IOlltlot.al1 liFe
In prcr<'\dc:> nWliU:Wl ~'l1cnt laU",,\ocol Mfl()oIGlionofREALTO"R9&"1 ~bgroql.1rn:o;t'l>yltlllld JIl'IKIcrnlifOll....1l Q(lIIdlllrm pl'DI>>tSelllln !l'lIllnlliLl'll. Ur~ J\11r1 Sn!Cllpcnl,'11
.G ,;c 11.1 be 'bound by Ihe dalllllnn CIflbo IIlbllratlOll fDIIcl oIll1e loclllll.'flllaclllllnn CII' Ihc Pcntlll)llwnlll AI'IlIClCiullolll1f A.EALr-onS. whlc.illlf'l't C1llcnalllCd IIIQ "'''pula or dh~
11::l;ClltCI.ll. iho canducl of Ibe _Ittad()" Ilhall be ~cd boy II,,:: Cnd4 rpfElhi~ (MId ..41''''IU'rJ11,~ MmmnJ IT\r1IIf r~1l1y PUblWltl'1 h)' (II" NIlII.mn.1 NlIlfIl1l11tlnll a( REA 1..
"ORS'" '!'WIer 11.1 ^,bUr:drna.u 1It~ 'by dl<llaOlll ~ll'ltll\Ctlrll\s tl~ dlfll'\1l,C,
IR. Arrrc",fmlhlO;.
TlII. A.Qr~'Jr.:IlIIn.Y be llI1'Iertdod only by Ihc: p:q11011 ~.Ill ....,.itlllg.
I~. rMWlMI,'I1uw. .
Th(A Agrcemolllllholl ba ~,<cn~ by end InlQ'l'1lvtQd !,urflUllnllo (111.1 loWII "r Ihg Cm.nmonwcalth afPllI11!l1y!t'nlllll
20. S,ICClIICh)n I.. }ilml'Tl,~
Thi" A~I"lCftlJlhttl1 l"Ul'C ICl tbQ 1:Iooclfit aI'Id hc blndiRl'vpon Ihe tItlDCOfIMt/I.In lnlDrefl;l o'Brokw, This ^1tfl:c1llcllf. ll(lwc~. IIC 'bllllcd ou die Ill:'rlllllllllllClr\rlct'A or Snll:'ll[1m'OlI
mld SI1l~lOCln Ib."lll ,1111 dDlop10 or -en on)' of ''''Qf;{lC!f'IllVI'JI riChl" or dUd~ I1croundorwlUul'lIC lite ,....IN ....Titt~\ OM\#l.C11t nfBTI11<cr
'21. poJllcy"'.tulrHlL . .,.
AnJ' Qffiae paIr"')' or nllcannd fl1'llCedu~ rnIUl~nl now exlllllll:l:l: or horoa.Ror Il,(lnplM nromC'ndod ",hall be t>'nulnS Inl Ill&, !'nnre,.,
'22. EJrir,.tfA~UHrI.. .
Thi., ^~'Cnl c(ImIlilllWr\: the CIltlro Il8fCcmcllt \Iotwo;:e'n I',e 'BrClkcr nlld SlII~\ IIIJld IbcPlv ore 1l1lI'lgrr:cmC1l1ll tlr \UIIJl7l'IIl<<t'I<lht!l/llllll t'1'f1"VlIAoU 1Ic..,.!:IIl.
TNWTl1'leSS WHEREOF, lid", AgrCl;llltQtIt 11M bllCfI cxoculed em Ibe dolo 8MI above wrlU(:rI.
8y
8m"'"
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W\tlv;:lM ~G\' all_l}~
Dy
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BrC'lIter .1>n1,11~ enllUl"I:llhlll WriUc1Jaffi~'[WIllofClO c1l;11l"c;:ribtllll' SIl!alJll.'l1O.fln'" thlQllOllIl nbllsPlIOIIII""llh TWI~lla ,)mUC lI"ppllao, Illlq'lhnno.lllll., nlld n SlIlc"fX"'"'Ol1 C'l)llllni..,,;;,111
Schcdule lltu f#11vlckd In SaICllf'C'"lnn. .
,...........r......."'....,..... ....... . "....' " . ...... ......-.' --" .
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11/28/2085
Received 11/28/2005 10:44AM in 18:24 on line [12] for 4659 ~ Pg 14/33
18:42 717-761-a923 JGR ERA EXEC
DKV~K/OA~~~r~~uN
'INDEPENDENT CONTRACTORAGREEMENT'
COPYJ(lOHT PENNS'IIJ.NANIA A!jI~T1ON OF RI!:.Urok.s-' l'J1N
Thl. ........~olll""'"lI.d..... ""IM'&Wl4&1.......~.:"':' ~~'l'" .._tryllw___....11>c l'omII)Il....I. J\MocIIatlofl llfllllA.LT()RP
PAGE 14
Form 150-2
This Agreement 'sentcrcdlmorh,il ~-"1.1! till r~..t:.. ~;;- ~ ~ 'TAr'J::::. ~^".a.lfr,v R""<bL
horll~.,.ft"rl'e'fcrre4li'J.It~Broker".lInd "'I'll/)AJ-V )'1. ~~~;. .1-, ,hcnl'lnJlffernrr.rnx1to Mi"'solellJH;1'IOfl".
. Whereas. B1'OI::cr 1. tupp in b1Uln4u," CI Rot.l B~te B~o;~ lII~d j. do..i)',: Il';;~od 110 ~nB.a:e in the .c!fvldc;:s of II "Ornll:or" al delinllK1 h)l tho
Pcnllllylvanl. .ucensinaU1d Reg:Iln-aUQf1 Act_ Acl oOf Fcbnll'ry 19, 1980. If,I... IS. Nn_~... am.ndllSd, IlIld
.. Whereas. Brote..rnalntalaJl on~ or,more om~ p~Plt%'J)' 6q\l.jp~ with f\I~f,biD&f,)ittln.'ttoob anll othltr cq'DIpm..nt nOClu_TY 8nd lnek1..!mtlll t>O tb~
properopCT';1ldon of.dd bud\'Wlfllll,.n4 _lr.d with cle:rlcal emp1Q)'l:c:1I, add i. thc.-eh)' ,u.itg,bt. to .prYlng tJle publ:\Q.. a real ~t61a broker; ilnd
\Vhertas. S.l_porsort ~. 4\.11)' IlCelUleCf 1:>)' tl1-~' Comh1nnwoalth or ~Amd'lvilniB 0$ a ...:'.1' catate "nJupar'ao.i" or "..",Qclato lnokol''' ., denned by tho'
'PannlJ)ft~lIftla ~oT!..Ina And Rcji:JWalial'l.Ac1,.p<,t wfl."rea. it Ja deemed to l:IalO tlu: mU!U.DI.cid\l'n.ta~ o(~t'OIcer.nd SdC1lpwson ~Ol'\tl;T t\\laeort\ract. UP,"lD the
tr:rmIlI.nc1p,:":'dltiona hcrc\l"Iafter setforl1::l:' "q , '. H . . ',.' .;',' .
,NOW THEREFORE, Ibr and In ea~';;tdQ'1llh~C 'ar ~ mutual ~~ft~nt~ ~~d"P~I~~'~l:1"dn c:o~taintld. thcl undcnte:ncd hcreby enfer 11l1o lhe
f'ollowin..nkl1aeor.arccment: ' " ..', ,.....' -
. ,';1,' -'
J. r""""'m COrIJ'..rtnr.
Tbe J:'Cllldcm.h{p afSB.Iesperwn tac Bcokcrt, iMh.'uh'l) tndcperodem con, """""", " '", v.erform'na cb.t aOt!, vltll:lil ofa I"lUll 'P''-, lie "UI08POrtOl't ~ a. dcfimld b)' the KOIal
Es~tlll LioonND& and ~ost.tnldopAc:l(heralnat\erreretTecl to.. "A;or). ..l~nsti{l.II)a ~ree torll?votc suol' portion nrhilillhcr rim..en_m-,ctforbi and skill.u
lIeI.hodccms apprOJ""'~' In Jcoe'pI.ng with the IndapO'Rdc:m.tcon~0f'.a..tu:ll,s.a'q5pe~ 1~.11 be rc~ibTc ronlqmplc1lnK anyttlltnlna:TDqull'ed by cheAc-1
ornlhQT1.W5oftheCnmmob~R)tb orp~Ol"YlvaDiI.; S.ll;lIIPOf'lOft Iball work (J(ul.c:amntLUIOn'.l. and ~lyenall.'hI.ry. fri,nge1)1m.efitl. Tnl:I~ical bon.rltI, ~n.
stem bctncf'h" or profit .hn-1aaJ no .ulIe. lacal.1)'noq\ploymc.nl: Soctl1.1 Secu~ OJ' bustn~.pti~:$I;l.gXCS (wheN aI'PlI~blo) ,hall ~ withh..ld. from Salospor-
'~I'l. S1I.lelpenon IIh...n p.)' all, pTOfC$lliomll Uc;:enlllne: foes, en'Cl1'l ..,ii oml.,iOn' l-nl\lta~o. proml\lm5 (acOjrtIllIl oiherwisCl provided herein). muJ~I-1JlIt:In. rCal
.ndlorcomputu.cceu r... SI~........",,"'nJI nota ....c.d1.. .n'cmpJ~. ,",1II"1'POCt ID ....-mee.~...h.,...nder rDt'fttdl.1"81orRIII" ~R:IIC pUl1loeulM' rD'r
p~..und'or.hoWqrMr".Cv..,.n"'I_Act.' " ....'.' ..,. .
, . . ,. "'.."1",,, ' ". .
2, s.'" lUton. ' . ,
SaIM",,~n ajlrH.1Q aotAl liD Indepelldl;lnt fOIl! eltale Uilwpcrlon end IIlbllll rRf1bfbllyo 1d)'lIlly.arl,d-I.pUYerlS8Ae hitlhl;t"lilllrQrt5 to aaU tnL<k, l_se or fent ~n'Y
ILnd aU rolLl Cll~ts; U~tcdw'tb 'Birn-la;n'.1O,o1\ch IUldilinnlll11lth\S',(;\UIt6mClJ'1lIlJ>>d,C'Ii",nl' f!)r B1"QkCl't,mld lOolhorwl..er promoe.clhc bU'irte.~{)hCTVIDI the public: In
l'l:'ilIl ~~.te Cran'fI~fiO'l'\' 10 tho oru;t 1Me odaeh of tho PllniCS hen!JtQ ml!l)', dQr.ive ~c lP"N~ellt protit possible, '
,. . ()(tk. PlldJltlt>>. .' . '. i" .
erDk~r Ilh1\l1 f'roM tttfte to t.i1'T\C 4o".tll ther nmlilC with'whi~h tho S"Ic:sPC'f'5Oft abatJ he ...OJdatGd, TIltlt offioo IIIh.11 be provided with lIIue>h ,tlambhlnj' &y)d .
~uipnt.e>ntal doemcd nllDGSsfl.f)' a~ (he dhM::.nnJon olBroIcer IorthcprtlperopenltiOtt 01'. re.t ClftuOOlf1c:e. Bmkor ,hl'lI mn1coav.U.bld to the> SlIlaponon 1111
cutnlf)f URt1np. ofthCloffia:. IInd 'Brees.. UFO:n raquGSC.1O as.ut the Sale'JI"non li\ hi.t,lbOT work by .dvico, in.tructlon, lIl'Jd QOOpOtatiOtl. to thd C'lItco' deemed
A1?Pmprlatc: by Bl"Okdr.. S.ICll'pl:'nlan IIh.1I pay rOT k>ns<list.a.nc.-:o1oIcph'OQCcb~.nd for ,"uQb otherConns.eIQuIJ'lmen1. ,uPPlfcs III shall be ~ct lbrth in Brokllr'S!
Writton office pollicil!l$. '," , .
4. A.tDrn"bl~.
9C11UlH"f*On IIh.lf (I,lrnisb h:il/hcrown .\.lotomobUe.NI pay 1\11 T1.:1.u~ expenle.llllnullrokC:l' .haD lIave' no rc''J'N)nlJih.llhy fclafinl to 8ah)jlpCf1\f)Q'" .'Utomobilf:l OT
tran.pDrladPTI. SaJeSpenr:m M$ToctI utcllrC')ll...l:rilityhl.u....noc!,tP?1l- bll/JuOrllulnmnobil.,. whh mininmm lI.bUlly limit. or$)OO,ooo lorllQc:h pcl'J1IDT1and $'00,000
(or each oI.IC'Ptdcn' and with pn::>>perl:)' d.rNl.KO liability l:hntbl ors~, Sal.~nlon~ to IVmlsb Brokcf' with a 1:l:rtinellteC;:l;lf1itylns compIlAl'Iae with Ihls
rGejUirvrnClf'U (0 be dOJl'ClMltad wUh JJrokc:r on or bclMa the enccUw dllkl and eillch TCncwlll dlltC' or thlA ,~mant, QT III nttM!,. tlmw a, '&roll.or 'may
n:l&~QfI.bl)' r,oQ\lCSL
,. ~~ . '
8",1 cspcnon &hall be eQtiilge!t(l ~ 5h./lrc ortbe ~tnnl...lnnll o.af'lled and cecclvocL by 8roka'r ia ac~liII'f\C' win'! 51'01\.'Or'. SlllclIpClTllon Cammbsion &hcduliO In
llffi:rct on ttlc ctlIf. ohhe act.miitUnS S..I~Cf".Qft to II commilllltnn (e,.. c;lb1aininlliatia.."la\?inS'Pf'QPcl'nY\.Ind"IIKNOfD6JltQr"DJe.,Cll;C,)orls othl.UWisc ,,&:rccd by
tbc pllrtl~. in wrIth\J ~1I t<I "panicullil.r trBnla~cion. Broke!: m.y IIllct ltl Saleapenon Cmnmiu.lon Sch~u" &om lime to lime wttl10ut pdoli' nOllRco.Llor\.
R'OlYbkm" 10 the .chedulellhall bctmmcdiefC-ly OPPUC4fbJfl co.11 '\durc;;tranaa.ctt01'l$. . Thtt dl.vllltpn gfcorn:rnl.,lonabetwaen Brokerand S/OlC>tljll;lreon '111\11 folloW
..-I~\tc;:\ion or;.I1I11:ll.p"'TI_,,0C01"di.ngtot~8alelilfNl,",l;Ir'l Commbsion Schedple. . )1'1 no(al./K' lIbll.lJ brokcrbc lIableb) SaJell-poncn !braT:1Y comrnlllflofa nOlcolle(>
led. All comm1...tons dcr:lve(J (tom 0 tT.n'ilKltlOTl "h.n b. dapoaitcd with the B(O~ "'I "'Qulred by theAc~ and/OT R.uIClll.and Rqulalion, or1he Real EalAII:
CommllllliCln Ilnd sub4Jequentl)i paid MCCQrdina:1ofhc SaJOIpet:lIOR C1Jmrni.lrion Sc:hodu'1e; 'lbl.i dillributi~n ~gll..kepl.CC AI -:oon 11II pracd~bltlll.n~~oll~
lion and r<:edptof~h Con1ml~lIi(mlil, II i. ulld~rslood DAd A~ l'hatthc St\''C~n. & oaty Na.U'MtltILItO'l'l [Of" the .."'~ ~l'l' rGlldc;~ undor U'I&Aveo-
ment I, the Sllle.A(H!:rjlQn'. .11111lV of the com:miuicm.. J'llLfd by tho paniQll10 rOlll.Cl'tPie 1ff1nlac;ll.0'fI1I.
6, Cs-r~,
In noev4ntllhlll1 S"lQ1p~onc;:hal.'..lat thvu the oamml.MlQool'fClr.CS(aol;sl\ed 0'1 the 'Broke.r wlthou\ t)-,cpT\orwnnonc:onaentor8roker. UBrok.,.. .hllll have
tnlcnxllato III "pelot.1 c;:onttaet 01' Allroe",umtpc1'talnln, to an)'paMICQlar ttlJllsactlao. Breurt;hlll1advl$o Sa1otporson o(,ue)) ~ccill.1 al'Tl1nprnenL All CQITI"
miMlion" find Coea fwm 8 ptlmcul"rtr8alllfldlon ah.lI be PII><-bJe tolhllt Brok61, SRlespeftO'<'l ,b.n "'nt be panon.Uy liable \0 Broker (or any commu..\onll not
t<<oel....tld by 1hn\cQT ("Om. r~rtl~ to ft CTQ,d..ctl!)n u.nltlllll ."cto 'YJ.onpflymont i. 11t0l re.uU of c)l)IJWliot\, intontlonal or recklDlII CQnduc(. '8roke-r 1h.11 h......~ tf;o,~
cmclurivtl rl.8h" tl'l dctcrmlno wb'lI1lwr to comaKlnce Udsatio'c1 (0 coJl<<1' a C:Qmm~k)tI 'C)T rcc, no( to ,onIc: au)' c:lalm (ar the I..me,
7, EtIlio't _.I n..t. A..oc/lttlCUUI.
SalClpftllon .nd Bn;lkor ,hllll conductbusine.a .nd rQSUI.tc~''kin&lIC:hedLlllt".e::>'' to melnmin and to l1I.C1'$8lathoSood wilt. oosl.nc.H, p,roRu., .t\d -repu.",t\on
orBro)(cr and S.tClJ'l'Cnon aDd eRchap" enaonform. tQ.Dnd abide by 1I1111W$, 1'\11" and ngulnfiof'IIt.Uld C10de arC'NCII th.... aro bll1djnaon. or lIepllClllblcto, rlllll
CIluue broJumJ and .alc:.pcraon., S.~""'QII and 8~kcT.hall be SO'o'cmcd by tbc Cod- QfEth~1 orthc N.donlll As'OCl.IIUOII oCREALTORS-, the Me. Rul_
Al'ld R68'Uu.tironllofth~ R.onJ E~t.toConunJu{il,WI, ... l'ha ""'no,,, ....~ybe from cjzn. ro time Clmeudod <1r.llupplcmDr'tf>d, tb"C<l1:l.lItitutton ond by-low.. ("'.1,1;' ..."",,1 nalhy
bOlln.I (uulIch Qlhlll1'baanS en: Ml.OoC.i\lt1.on.as maybe ..n::c-~ u~'tOn). ani.1 UlC1U\clI.od TCgulatlQni o.fanymuJt\plollstin8l1erviee 'lh whidl Bro~r m.y now or in
the n.nUT'a be amliJnod. Broker.nd SIIIQ~on .hlln nobItn mcmbonabip lna:ood Itlimllngwhh tho Nfttlon.al Aalocilltlnn 0 RBALTORS--,lho Potn1f1yl....t1la
^Isocl~nlon orR1lALTOII.S'-, l\nd tho h~1l1 realt:)' bonrd Ot"lIalocl.d,m r1~I&nIl[cd by Broke.. or II. m1lYbc ......ct upon b')' th p.nics, Wbcmo\IQr Br'akcr.f lIS
mcmbcrQfll.f\Y nml ""tatoOflllnnllfatlon whk::h require" m-cnlb....hip ofliilalclI(lO~n in 110;(1 orcunlz.rlc.n. thol:O SaLCal"-tS()1\ 'b~, ho:(~bo abaU j:)ecom.l\'I '"
n'lcm~ and pO'J r<<, orduca 1"Ilqutrcdb)' IlK:lIanombe.-.hlp, Bl'OkOrllnd Sal_)Hll"llon<<pelO be bolaml hy the n,l.l~. rid rct;u adOnll Qf31,U:h ocsan.ario,,, p:r.
Il1lnmg.!oettl'e..nd sumdlu'l.IlI orcond'Ul;:l~nd proc~urrs, $"It:8p~f1auknowlcd,Clto po.'llllluiotl Qracurrcntcopy orrbc Po nllylvllnl. Real Bstals LICClmlin8
end Re&i.tracicm Atlt, lhot Rul~ and Rcsulntionl o( tho Ponn:J)'l...,.n~R RcDl &.Qtc Commls.l(l1). IInd Iho Code or Etl'1l l~ the 'N'elltonal A.lanc-i.t1nn Qr
RIlAL-rq~5. l\'t.Id l\lP'CCII ~ he apprillOd or th.~. provisions. 'll\crenf so 1b.a~ Sa1espwnDn win l>(lITloduct 11I11 IIcU...\tlcIl in'to mann r COn.si.klnt with "\Ioh I\\wa and
c1hk:s, /1 . ....~~.. " .... .
"..g:'\.'-'R....ri..i/i:,~U~>k~Qd~~:",..s~~ \.:-'.'
SalospCJ'30n-:ebaU P')' thc:ooatotany nMlOltMct~toaqUI-rcd bY~M pt'OvI.lcm.1I OraD)' laworJ'llCU1ll.llon orchc: Commonwc.1 orPr:nn.)'I~lll;ll, SlIllIIIporlIOO
,hall t\1rther en,\l.1"C thac the ~uiremQnU [or Ii.::.rts.'un:.. fI. nlllll c.tatelll.le'pcT'Kln by the. CQmmnnWO'lIlth a(Pant\syl...anl\il al1C dlnlld tn eVC\")' re'pcc't.lnclud-
in. the timoly Nct.f\tcltlqn ormll~tory cantinulrtg cxI~lffJonal requln:mcntv. SlIlupenan .hall Jl'ClY all dues for m~mb~nJ lP In the ...lInei.fION sot f()rth m
tho 'Pnlccbc:llnl parap'GJih Gfthl. Agn:cmenll.rt lI.1imol)' n.ahlon and IIhnU Poll)! all fIllXC' a. may blli l~icd uTHM\ t~c.orpT'Odu tl"i.t) hy 1m: ~CTalIlOV8m"'ljll'lt,
'!Ie ~rt\lnTlllll RcvcnuiSorviea, chCl COh.1I'D<)l'lwealth ofJ'cnn~"',nlll, or any locaJ munlclpallty or school c1i111rlClt gr glher .deh x.ll"f\: authoriry IneludlrlB hut no~
Inflleed \Ct Inwme tOltOl: .~cupatio", <<nd ooouv,ationprlvtlcac talx.c," pOl' C'3p110 tli.r;1!lll, mc:n;:lantn. or bUllin4;H' pri'>il~ la,~"'I.I. ... ." '
'. " " ' , . j'-.l . .
9. A....OIfI)'ID CaJrknllC:'r. . . . . "
5alupc:Tllol1 "h.n hllYC 110 IiIl1-lhorlly lID bJlld.ot)llJr:au: or-~'ommlt Broker 1'1)' anr. premiuM rcpt'CIlntetlotl. unlCH &.,.cirU:l.Illy .uthQrlzod by Drnkcr In wridrt,:
providl)d. howc:vcr. tbllt S.hapenon IhlllJ and:l, horaby.uthorlzod 1!)C>JLCQJ.l,lol "ins opvemcnts, buyer af:tl:no)" contracta.ldkl "'anftaemolI1Uctn1"ets.U _If 11I.11
llUadclCTId. and .S"'~lTTu::nUl appurtelrlanllhereto for And on bah/OJr...nlrukcrwherc Jlcot 111 connlel wilh Broker'lla~TIO)' praclicllll.nd p.....vidlld that thc~m\s-
.ian t'nvolVlld ltlo IlUClh _n.N~~m II not \.eD thll'n that dcterttllncd fbr~n .....nll.otloa 01" .lrACIl by Broker. Pnol" to cntarinz In'''' ..n)' 'uc::h ~()n\r.Cl or C1.'''''00
ri'1t1nt. S..lc:"p...-.on .hall dc:tcnnlnc the .8en~)' and manll8cmenl pr.lilUel:~ of Brol<<oi'.
10, Jrn'INw.rHI~lIm4Illl"al'lllKW'.
SlIlC'P..-lorI.llh.UI:OO'PcnJ.t.G f\lUy 'Win, BT'()\(.",1' in obIainln~ vrrorfl 0114 <tmrviAionl cowrap in IIln ."".>lllll, .ud with 4t:duc;:clbio, o. IlhfdL rrom lime to tlmc be
dcumnlnod b)' Broker, S..id lnluranclIl ,hall proUICt Salc:s'PflnOnaBlIln:itllabltil)! which mllY ..rise In (;onneC1ion with the onnd\-ldQ(SIIC:Ilpor&on u an IKldvc
""IlI1 ..lf1ta UClCnll... S.id poUey or pgJiQl.e. lIh,n contAin an cndoncnu:nt 1UIfllinjl.Bl'OkCM' and ~'t'Iy .ub.."lllri....S cofBmMr a. ~n I!lddidan.\ Insured an.;lll1all nrll
be..ubFt:fO~'I'IQl:lheclon eKOtlpl on" rninlmlarno(tct'l (lO)daYI priol"wriW!ln ri~llc. ~B""_>.'-:^'oertifte4l~e orH.tdifl~"nce"".'l k~~lltSl':\ whh l\.rokm-MI
or bcrQYC thll clTcxn1vc: d8to and cCI."h renewal cllllte of1l1iR Al'VC'monl. Thl;: I;:Oltorsald In:t\lrnnc:c ,han be pilid p"TIIUilnt to fhe wrtUen pol,e)!~rnrgkQr or in the
"b~c;nc;c rhe,-enr. suell ClOSt ,,1l_11 be bome lIy flroJcerartd SalellJ'crson in the same prDpon:ion a~ th..y would tll(ll"fflBDy .hare 1r1lhr.l eommlsllon n:.ultlng r;'oni Q lill('
l"'s""nl1 ..olllll eor. pO'",p"'rI.:Y"l' i. "tit (loInh in Iho Saloe"..non Cg"n..f.llllOlun Sl.'hodlloll::. " .'-'
.
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Received 11/28/2005 10,44AM in 18,24 on line [12J for 4659 . Pg 15/33
11/28/26a5 16:42 717-761-6923 . JGR,ERA EXEC PAGE 15
1'I.,..~rwc>n .sr~ ~h.illllln)' 1lIt1<J aUlislinp Ctrpropcny, .ajCm:)i' asreemcilla. IInd'all actio", taken In c:btincction wilh the ,..l_tato tmllln~..shaJl be in the "antiCI
~Brokcr. Lf8UllWltlnd a~y co:ntra~lI.hall be fiI~ __!ChBrokerwi~htn tWC~~IDU~(21} ~Q'" l1fterrocoiptb>:S~lupel1ioP. AJl1bUnsa and aa:ency(;OntrlU~'.
d,all boand rllJNtlu Jhl;ll;Jl;dulIl~ prtJperty O(BI'O'kcr.". All C.ot'RIIiPOPdeDC4 ~vcd.~IU Dr OQo.....~_ ocv.1oyi~ written. plata. li$fi'J\&' informlldon. meml:lranda.
0l8'.:rh~ph/l. fIO'POrta.lcgaJ oDinionl. accoUDUn8Infbrm.uon.aml my'and aU,o!h'Yr"hiifi'umenla. l!u.;;ymenll or ",rormalwn ofany n.t\ln;. wf,tl1tsoll\'Drcop-
com.lns t","Melionll h.nd101l'd by il'OkcFor Snlnpcnan,or Joiatly,.TO..us shan t'etnli.n Iltc proPerty ofBrOket "provldCthhal Sakllf)cqon is ~nllaod In II IlD(l)' or
lIueh in.\l'umcnm and. Julormalicm upon 1'elIIscntllblc request C(m.~lng any trfl,l"IllIetlonln whi",h b_lIho i. pCQQn<<tly lftvol~_ "'the pllt\j,ell h..mto shall
rn...tu..l1y ftP~ .,,(1 tlpn Qpon .\1~'PondonQCrrom tOe oflkeofBTOk.eTPMQII[nina: to Ir.....,.c1ion.luu~dJ<<I by S..llI"'"1'M1I1, and .hall ('u,rthCT ~~ on the
rorm8 'n bou,oIld 81"d lh~ QCOntcntll oral! con~t3 Ilntl other~, ~.~:re tho)' arc preaM\~, to eUonca .n~ ~~lon1ft'l1 IOf"lIlan.l1ue,
I~, DeJlOlf/u.. "., ". '.', :,:'~' . \.r,..,. I.", '\ _', ., ,e , ....,
All ~11t' 1"CODi,,~ by Salt>>lpe-rson In thl'! 1XIU1'.I11 ora 'f'I,!.lf1 OlltaCl;l t'NJ"dIUCltU-ln Orfti")'.nfllhare'.h.pll;loe im-nlodlfttc.lIYln'lVt~TTI;Id 10 Broxe1' (brd"'POIitPUTIIUant 10 tho
AoCt, Ihl;' R.uln Gnd R~YI.,jon.oFtb~RlIal &tatGCommNllton !lnd thO~IlP'Comcnl ofthepll1't1fttol:he h'anMIl;!:iotr;;pt.ovided, howevor. thal8"ydcpo.llll to be Mfllp-
l.incd by at\~lhO"C'brokcr ol-ragol!'d pUnluant to ,he ^'-'t,RuICII Ind Rcplfltlon. oflhe~' &cue COm~llIlon .nd a8~men1 orthe ymn-li;:t fO n trtll1l1actll;tn.shllU
be ImmMllateJy f1'Onaf6n"od to ....eh brokor with tho. .PPt~Uuc ~o~'to O\tlj.cnon: ma1dns ItuClb ~~1 Drtd to BrobT,' , .
, , '1.' ,. , ,. ;'.'"
13, r"lIcm.iII_tk",.
SafCJrC11l0n IhalllndlnllnlCy and hold DrokcT"hllT"ml'Il' (rom "")'ftJld aU C1laim,ClO8t1..UabiHti".. l'ohd iuda::mcn",1ncl\ldlngaI10rnDY', {~,er"rina l'rnmt"c' (n(lI!;n~
tlOTUl1 ot' I'1tI:lkl...., ftCU oISIITCllpgraOfl,.Of !tdbJol,lIstdethe ~of5'111etp'"~on', fluthorit)l.' When lIrfl1ll1tion 9'"" d.t.p\l"'ori.ClftQan~min& a trarlllllotlon In vmic:h
SIIJClpetSOn wnjn"~vcd,. ~hQ' PlIrtfetl bDmtoshfttl mutu.UYCOQpcr8te with em:!lOth~, _ l~ ~I.put~ o~ Ilti...l1nn ....bere thlJl'fl illIlCII..i.m 10 fhe~co( lhllt SIIliPpef"o
lort htlll IIC1h;d intcmbonany or flleklllalll:yor oul$i(lo the ICOpc 01 Srale:rpclTioo' auUlQTity, S,lviper:JI01\ ah.ll b"IIT tb. ~t~, DJlp~lI~ en.:l h.\llilfdes [pr;:tudine:
Judgment. and o_,-d" Nislna (TOm thlJdi5pute or lil3~rJbn', In dlllpulcio OJ" lIttgattcm whcm)'thertl ill. cl..hn. ilo dl.<I eITec:t th1\tmlqpllftOn hllll llQtccl nel;lUpnt1y,
Sillclperum >In.11 shaT'B the 11l'J1I"', Cl'l.pOnlle' IIllcl Hllbihdea jnchNJlnljud&mcnl.lllltu;f aWllrds a-l'lMnlJ f'to, m the ahlputo o,-lltip, don, Such "hftrin, ,b,,1l 'be In the
.'I"mc ~f'OPnrticm .. .he (jivilri<;m of IW'ommia..lon w.a, or would have: been, from the fllbJte1: tl'.a.....cdqn. no .fIhlllrine ofOOJU, ex-pel"OIl, .nd lill~ilici" ,.hllll be
wjthout rn:judlco Co Broker., 1'l.blS orindemojf1"tion unl~ ~hert: has b"<mlll resolution Clrlhoinclcmnifi.cation is.ucbet....CIlU1 the p"rtI~ heNto, BrnknltuLtl
"",Iactc;'oumel to rgpTCSeTJt Btolcer.Q ,,"od S.,lupet-.a,,', tn~~ta In 1\tli'~t\on ...n1h cowt:litKm-ir; by tbl! Pflt'titJA i" pt'op'ortlnt\ 01 _ell rorth ..bo"09ertOlinlns t(' tile ,hDr~
In1!l oJ COllta.
14, ~rmJ".tioP. -
ThJIII AS'C'CClme"l,.no! th<;. rcll1~\on,"M'P e~l~ hereby. w.y be lclTtll IWitai bycltbal' porty horct.o. wIth Of' withl:)....o"~.c, 1\\ 0.,)' l:inlCl "p(ln wTi((en notice. Upon
tcl'nntnftllon, .,Ul\eB<)tl..t>ont commcmel;'q. by S.lespo1".~m d-lolnl1,l th~ term o(thlir. A.ili'fler'lll!lllltl'bllll be hondlcd. tbT(>uab,.Brolce1',e,J\c.1 with .ueh QuistnT\uo IInd
c(lopenlUon tly SftlC5pCt'S01\ a" i. reoe..onable Urtdcrthc ctfCtln'lRc.\nco., {QJ" th.e proteotiQn. o1tbe hl~t'll.tll ort'hO paniK' to Hie rcal",..t.; trlln.sac[;o", ;llvo'"cd,
Salelpll...on, upon fo1l'MirUltiQn,llhilll rum.i.h Bmk.c:rwith II bon" Adc lilt arall. J)l'Vllpcc:.ta,k:a<1$.and probable tn"ns..c:UtWoJi l1-evo'opcdb)'SalCApe~"u'ln u,",ll all "II
CONelrpcmclc:nclI alUl4lClDumc=nta deacribed:ln PftmlfUpb 11 ~txr.oe, wldc;.h arcldtlpl1lc:d to bet the;prnp~ orBtbk.,.. S1I1...ponon I\trfholl"lI~ lhlll upon Idf"'_
minlttlnn,orin artticlplilrloll thaNot", he/lIInQ will not rumi.b to an)'ponori, fiTTrl" oom'P'llnYO'l'cOlvor'atlob C1l.~d in 1110 JVfll tlStaTeJ"altlnou bnylnrOm'llUlon... ,...
Broker', Cllertlll. eu.ao",C:rI.l"'ropct'd~, pric:cs, tlil""'. ar""'8Qti.tion8 nor Br~)!;CT'. poJicie:l ar.-elation$blpl With cHeri", ~nc.'l C'1l1uom.". nar ..ny othor In.r<:arma.tinn
cono;emlns DrokClr -IIllQ/or I\'II/t\a.-.: h-u,in.;:.'iIol, Sflk1\pcT"Q'n '1"11I\1 not. .Yl:er ~I;!nnlnll.rion orthi. Aj:n:c:ment, or ill cantl;!mplation lharoof. ra1l'10\lC rtOftllhtil IlIclI "1'
(rom lite office or Broker IIny mlttori.llI. "ala, puhlie;..dons, cOrtl!llllpOl1~nec., m.. or informlltion that is propcrtr otBrokcr. 6..le~r80n sholl, be ClJ)lilh..d to
OOpiC3 orocn.ln infll.r'Umontl ponalnln. 10 tra:ruactlonll it! whh.b Sale8por1tOt\ has.a,bono fide hHCJ:Qlltor pen_mlng to .,.T"rJinp ofSaloapt!Tllltm,
15, Coat~upoIllnn..'_d.,., ' ", ".", ,:'.. ' ' ,
Upon 1.rminlldnn, Sale.partOn 'II ..h_rcol'comm.;II.inl"s on anytran...ctlc;ms where.SAI';:' eOntTftQI cxbts but [he ...-.n...l;:tion has notch)lIcd.llIhllll,lIrtcrtMClolll\l
ohuch ~I'1lRlIIC'tion. be paid In S...le.persofl in IICIClQn;1 with tho Selupcn'Son Commudnn Sabodulc In e!I'ect..t the lltQo o(tenainat!(rfl_ Tl10rv.hiJlt be deduc;tcd
(rom &uQh .bere. ho_voT, a ..cr...lo;:ins ch"'1JC oI'!I: Of ____'" ortlw IUl\OUntot" U'st: 1ifotiq 1II'T\dJOI' sftles comml.ll"ibn,. whlcbcver I' blahor_
Nu C1om1Ttluion ollieT allIIn I"orthos.o PJ'OP~1"Io on whioh an o.arecn,c:n\ h.1Lf been~llcd ."" eccepted in writlnsb:y the buyer Dnd ~eJleT gn O'f"bcforc termlJ14tion
1)\.11 be d~od '.I'nlld byS_lospert;on, u"le,. ..,doc:nvla. ~ in wrid~ ~UJL:cr....j."",nl;>~iIIsiPn ruultinr;t'rom Jbc Ua1itll fOHant, INlbe rental OrprOpClrl)'
"han ho p~td 10 So.lupt:l'llon roJ1owlna 1\!!rmln.tion with tl~o1 excepUOR of com-mwlona ......in, &om ",811OR IUlly ClllCO\IICd prior to Ulrminadol't ~nd to the ~tt:pt
tlulllc-(\s>c-paya\61\'*' ~ fOC~ved pnOTto t\:lnninllldon, SI'l\I!Iap<mmn .baJ1not, howwveT,lIhuc In thacomftl'..lcm.. p")'ftblc in tho ru......c .nd f:t."cd upon rho lea...,..
(Ipdons O..IOllse pol)'rJ1lJnt3 no1 yc:tdul!llmd p.)'.bllll. '
16. >>...._tIofrl1'nN:edW'fl. .'
Upon ~tmjnadOl\ b)' dthw pltny. Slll~~ou _ban lM:mocli-atD\y: - .. .' ;, , .
.) llubmlt a Ic~tCIr orrorrnlnatl~ with. compJGM IIccount1ns orcommlulot\t, J:illtlR8' .nd buy.r cliert'*;' ,
b) n:turn all ,uppli.es, client!cualOTJlCJT' PI'OlP~,lilts, key, and docum~1. C'Oft.idorod property ol 81'Oke-c P"..,ll_F\t to tho pro"iaionf or lhi.1I All:TCCrtl$nt:
c) meet with Braker for purpc:NlCe Qf" .nemptlna co mutu.lly avec upon a. rinll1lu>col.Ultf.na otcommiglOl\I duo .nd payable; .
d) mJOperilllC In rhe 11otUioatioJ1 ortll~ RClal &LBIC Comrntnlon re.lIanling- thlJ termination of the ftlltltlO1'I.hfp or F.I""tc<< "nd SIlIcI..-pcll"./Ion,
17, A""fmlt.oe~DQp"', '. .' - : . h
Oi~~~rnontJorc.1i.:lPUtCll bO'lviroc:n Salesperson IUtd Dn)kOl:,Qrbl:tloYCOQ Sal"~ ...nd..l'Gale.u..1icM\aoe....oc?tod .....thr;>rcOlJtlmcwd \OBroko-r. ~"d wb1c:
,Iuille Ol,l$O(, oriD connection with, thClTCI) cstatcbulrin~..nd which ~nnofbK.d,lullted by IIJJd bClf\Wlln !he parUo:a u~'Ynlvcd,.h lilt bo Iubmitted ror lubl1.rDtion 111
IICCoDrdll1lCC wi-ili ArdclCl XIV oJ'thCl Code ofEthica DIthCl.N'lW(loruol.AJsoclellol1 ofREALTOJlr" I E!Y this ~enl.llllltd tl1"bll~tioll shAll be mand.Atoll)" l\old
DTQker find S..llI;1IpeTaon apv.:; to provide a wrhtcn ,,~cment to ,be local_uocl.llem of~:P' u may be rcquirad b)' ,,1c1 f1pOCPltion nllD condition
~~llo Il.fbitratiQT\. lJt0kc7 and, SalWJp6f1lDn ape to be boutKl by 111<:: deci,lon ohhc ar'blr:radon p..nel or tho IOCRl ..ItOC,hulon 01' ~l\. Penn,,)"l...nlll
AIIlOdatlon ...rREALTORS" whicll No. otl~tnQcI tho dbputCIOT dl.llagnx:mcnl., ' The conduct oldie atbleration shftn be sovuned by th'!' Code r)rEehb lInd
Arblrn",km M.I1....J most teCa-ntly pub1illhod by the. Netio:!!aJ Allllocl.tiDn or. RE^IXOR~ prior tg A.rbhr.t1on" 118 tlmoncled by tba 1nc&1 8111loc;iallon,
heilrlnst'hcdi,putc, """\'
liS. ....,.__mMf'L -
Thla A.c:rcornclll mil)' be amended only by tho portkla hlWdo, in wnflng. !,".;....
Thtir ~~[':'h-:l::~wi:nlcd h)' ~nd iPtetp~ ~uEJIu.n'j tQ: t~e j ~ws-~r ~~. C9n:i~~~l~h ,or Po~n"'_IVJ,"h':
~o. &~'drn""""'. " -",,-
This Aarc~mC11t .ban inure ~ tho benolitllDd be blndtrtg u(101l the 1W~S50r" in interestorBTokar, Thb Ae~man(, hO'MW.eT, ~ hllllCld on the person....1 ..!'Vlce.
or Sl(~~?n and ~aloaponlon alo.J1 not (\l;llea:1l1c .OJ"_ ....1.... ."," of ~lIIlel~CT!Ion.~ ",htll eq; duties 11~.1:'n~ln' ~boUt lhe p~r written OOftscnr.of B~lw-t. ,
21." Pu/lqtMut.', _ . ,.... '.",.1' .' ":',!. '"." _ .-,. .
My omce policy or 1Ull.'lll .nd-pt'OOe'dllre' m.nual now cxl8Uni Of' )lereatt.er adoptsd .or GIIbWll~-.h.1l be billdina; em tM pti-rti.._
"u.,.,E,Odr..A..,,-me.t.. . .'," ,', ;':'-','~'_.:";:::. ,_..,'. .....'.....,' -
Thl,. Aar9lIm61\1 .cOnllllilu~ the enti.. ",-m"'~n betWftn the BI'Q1c:et' end Sa)u~..\....-...d ~l'G "'" nc-,nan~nb OJ" \lndQtSUln<ltnlll;lll nQI clLpnllllsad
hCT'Cln. ' ' ,t,
IN ~'ESS WHEREOF, thla~tn4h1t h.... baan eMo'~1.d on thc'~"" n~t'aboVCI wntttm....
." .'
...
..-1
.',1
Z?,.I,~
By
, " -r. ~___/3{~.~ ~
Broker."".
\, . " . . ' ,
C.({? -1 " ,7/"", (/ '
1 7~jJA -< "rz'f/~ ' I
k~elJl'crson ,r.
. ,u'.
Wltneu (01''''tUl~ /
~4t?
","."
~0
\,
.-
~ . C":'.-/Y"
eRr''''
By
STOker ,hovld.lCTI.lIrc. thllllt writkm o<<ice'POliclCl cfiCilCribl"8 $,I~perwoo'" f1nanc:lal Ob1ipll.omf with relpect to ot11oe ",..pplles, telephone, c:rc.. IInd ID S81eapersoa.
C"'lQPli:ldon Sclwdul. GTfI t>rovldc<l Co a.1C5P..non, .
carl.lS. Wl-Iln, 8ROKIlRl ....LLOW. B.ot.U."Cjon,oN
"'"NS~N14"'IIQl;IOlonO"'DI'''lEAI.l"go,'' ~
.-
;-
.
.
Received 11/28/2005 10:44AM in 18:24 on line (12] for 4659 * Pg 16/33
11/28/2ee5 10:42 717-7&1-0923 JGR ERA EXEC
lNDEPENDENTCONTRACTORAGREEMENT
copnaCHT I'ENNISYf.V",M''''' AS90(:u.nON OP IEA.tlX'ORS- I,"
TIll. ....rIft fC,omllleftdfd and ."P~ 1Qr, bt.r1 J10. IWI~__'.... hJ'.... """1Il~ llf~lI. PeaAll)"'-1Itg .............riOR or'R~ALTO":P'
........._...~...... I ~......~. ..1.o....~"-'.l'"'
PAGE 16
..orm J.:>u-~
....sw. b"~'n dO" JOJII1 *' f I)p OM : ?--eA
" .' ," , hcT'dnaf r",fe~to_"S"'C3pe:non".
, ' '
Whereas, BTI)kcr II I!f\laae<l in bu~ino" .a II Real E~ullf.e B1'Vkl::r ~~d is duly, li~llcd 'to ODaaa:~ in rhe aGttvitl~ or II "Broker" all def(ncd by the
Penn-.yt".nt. LiQl:lIlslns and R.e;a:i"t....tionAli:L&t of Feb,t'"u!lT)' 19. 19so. P.L IS, No. 9,.. _"'cnded,and
Whereas. Brokc:r",.int"jn. one ormOnl glr~ propC1'ly equippad with fumJshinp,lhdDI boQke cnd. OthCT equipment necllIUilry Ilnd Incldenlal to lhe
PI'OPet'op<<IHitm of_aid busineu, and staffed with clerical cmplO)'..cs, and IIthentb:y luito.bJl! to $OTVff\j' the puhllc ftl a real aRtale, brokor; IT1d
. Wherea8.SalO1~T"on llll d~l)' Ilcenlllod by the Cu(nTllonm::a.hh or PehnJl)'l\lania as'. ~l=tale "salnpllnon-oT'''A$lllC)I:;iak broker" III (Icl1nccJ by Ihft
Pennsylvania ~alnBftnd R.qlatration Act,; and wherc.s It is deemed I.) ~ to thcmllW8l advilnta.geofBro'kb'and !jIaJ~p~ tQ enter th~ eontractupon CbCl
termll und onndJtlona IwrebianM lot ft'lrtll. . '. .. ".' ,
NOW THEREFORE, for ~nd ii' eonAidcl"'lllt'i';Jn Qfthc ml,1tual ~oVonAftUl' *nd:"~~bQl bl=rQI1 contaln~ the unde...lped hOTeb)' on~r Inro Ihe
Ibl1owlna: .r1.;cl~ (tor ,flJTCO'Dllcmt: ' " .
This Agreement ill!mtCTOO fnfO thll ~ .t.)' of ~%s~ .
hemnanarn:feJTl:d toa...Brokar"....nd V ,e;: L. D I..J
I. rnfJopelttltt,uC-lltaftDr.
The n:loIIltlonlibip orSulcapcnon 10 Brob:r iI thato[lUt IndcpcndentO()ntnu:tor. 'In pIl!1"ormll1' thD lICltfvltic", ofa real eltat."aaJespel"861)" a.defined hy the Rt:1I1
Estlllfe Licenlinaand lte8I.1TfttlonA.c:t(herelnDnerrel~rrbr.1 to IIS"ACI""), sal'.person.hall hi! r1:CllltQ'dovotc ,~cll pontOI:' orhUlhDrtirn.,.,Clnar.,.,offnrband akilL III
hc/.hoCloMma a.pprnprlllto, Ink...nnswtlb thoirtdopcmdllllttgonU'aclO,.ltatla,&lCflP..-mo'q .h.lIbc Il'Oapomdblc I'oTC::ompllltina anytnil'llng1'"CQ.uircd 1;1)' tbeAct
orOlhc:rlawa orlho CommOlJlwca1th orPDnMylwnla;SalQ1l1PQrtllon IbaU work On Dcoinml:i,ion b.lIi.. .n<ll'CCCll.... nOIl\lII~. rrinae bcnofitlt, mllCficlll honllfltrl:, 1',n-
"ion b<:ntnu, 01' profiT ~bMJ'lng; no stete. local, unemployment, $Qcial Security or bU.\Ihu,.. piivflll,sa ~1'.CII (wheftl .pplica1>le) .hu.1l bll w1thhlSld f'rl;Om S.lc;apcr-
..on. SalOllJM'1'iOn Ihall plI)'.11 proCalsio!:lalllcenlln, r.oq. l:I:1XVTI .fin" omil.5ott' ift.utal'l~e prtm1l\lmll '(~t a. othllrwi.te providod homn), multi-tl.ri"8 fec:J
IInd/or=omputu~ AllIN. s....poenon "'all net'" ..........." ..pl.)'CcwlCII rcapedfo 1II.1I....ncesperfOrmc. ho",u""rro.- fada...III)TJlhlta hi", pDrp_orror
p.rp'Oltcl'. under the Wo....r.s COIllpCII"tion 11.0'." ,
'2. S.IGtE"",1.
8ulesperllOn l!lp"oCII. to ftd lU IIn independent real eatatc ..IQp~non and .'han r"iO\rulIy loyally and IcsaJ!YeDiPse 'hlalhlh"f1rrcnu to fOil, Ind..,;, klu;. or ront any
and all rolll Clscale lilted willi. Brc;okc:r. toIK)IlClltadd:Uionallt.1in8ll, l::iIu.IQ1I)~ and Qlientll (c:rBTOkl::ilr,.nd toQthcnwlae Pl'OIltOle Iho busint..,or~eTVin. tile public I"
real cstete ttanaactl~1 to tbo ond th""t c4ch of the: pa~CIl hcm;lto m"y de,~ve the areatelt FOlit [M'llIIlIiblc. . .
:I. om- ~fi~.. ','
B:r~,"" IIIhal1 f'rom timo to time duipatl:ltho ofltCIQ with wbich the Saleapenlnn .tI~lI be l'IslOChned. Tl\otcJ:J\Q!llblllJ) be pTO'\o'icllX1 with sue:b rumillllinp onol
equipmcnt 8. dcomod n~.J)I at thtl diloc::rctir;m orBrokor for thlllPI"OJMT oplrradon ol. I'tMJ Cll.a" office. BroIL'br .hAII vt*ko .........ble tQ Che S<<1c.5p;.non all
curroQt I{IUnp ortbe omc:o, Ilnd lI!IJ'OCIIt., upot\ rcquut. to u.bt the SalelllpC",on in hl~lh\7:l" work-by advice, in..nruGC:i04. and OOOpcratlon. 10 Iho c:x.tc:ntdocmed
.PPl"OPrlato by BTOUI'. SlIICllp.UlIOn 81",11 p,,)'forlongdi't..lnc:o tCllophone oh_'l!,"e.. and f'orlluoh olhcr ronns, lliquivm.o'l'u, .UPPUcll IIlI "hall bc;0JCt ronllln nl'OkroT'l
writtcm olTkcpollelfll. , .'. ,-, ""'. ,,'''' , .
"'. .AlrfolllObllc.
Salesperson Ihalllund.h hb./hcrdown .utomoblle and PII)'..U 'fttlated ex.ptn.eellllml B:n:>kcr 1I1:l.U h5llvd no "l'OIl.'oodblll1)' relatms to SIl18~'. aut~l'rIobllo or
lrlnIpOmu:ion. SAlnpenlan Ilp~'ktCIlrT)' It,,blltl:)' inlunnce upol\ltu/hlllr *ut(ut\oblle with :rnilJim"m lifllblU*" limits orS300.000foreach ponolulnd $500,000
lor cacb eccldent 1lIm:1 with pr()p~rt)' d"mlsoliability limits orliSO.OOG. SaJcBperlOn _smeli to fumLJh BTokor w:lth II ocmit1c~1e e~MnK compliance Wllh thll
requUemllrll to bc:.1l1':lJ>Oll1k>d with 8rokrlr on or berore tbe e(1"ectivc dole .nd.' ellch n:nc::w.il date: or this Aar;.;.mc:nc, or at olber ttQteS as Broker may
rca~abIY""lIuOllt. .' ':'" '.
..'.1.
~. Cn_ml.w.u.
S"llSflpanon lIhll" bel: en,titted co 0 share ortlle c:ommhlJoTUI .lIme<l anll nll:lIrivad b)' 1I,o:_tl1 .ooont.noc with Broke"''l SalclIpcnon C.ommlnlon ScbCIdiJle tn
effO;::tOllr the <1*10 oflbel..o1 <:lttitlins: 9.ln~oD to acomml..ion (...... obtai nine: 1bJtJns,p111ains pTopQJ'ty 1,I.ownarcomenl obat... GCC:.)Or-tlll clherwi.tellUMd by
the ..rtlea In writing-lll to II particular uansaCCion. Bmb:r JI\II)' a(1eT I~ Sal"pcnllXl CClIDmuftoQ &hcdule from time 10 dme wilhout pTiOS' notification.
llcvl.klnll toth-ca<;;hc4'llc shan t-c lmrnlldiately applicable lOUn lUlluTatnnflActl()J)S.".''Tbc diVIsion orconuni.,lonsbe"'--D Bl"Oker And S81.penon .hall follow
dc::duotiono!an CxpGNlOlI IIccot'dlng 10 the SaJotp01'1lon ComrnilJ3ionSl:ihodl,l.lol'~ In nOQII.Ollh.U B:roarboUable to 5aloltpenon ro..a!\y"ommluhm.nntO()IICIO-
c.;:d.. All ~ommisaion.t deriwd fl"OQ) . h1ln..ctinn sh_11 be dc:pOlllltl;d. witb lhCl Broker., nlQUl:rec1 by tbe Act. a...dlor llulea .I\d RClJul.li(lT1l1 orlhe Ro;al E.ltllW
CommtNhm Ind sub..quenllypa!d IICCon.lil\Jir: tn thelSlllcaportlon Commluhm Schedule. .Tilll dtlltributlol1lilhaU ilia plACIctUliloon a. p"acllCllble aftcroollec-
til;lfl, Imd fee apt of wch c:omm:l>>;onll. It~ undo"tood ~nd- ",.rced- t1\:tt tho SaliD..poncm'l eml,! ~UtneraliOa r<wtho.,rviQaCI benne: rgndQTed undc:r thisAa:rcll:-
Dlll;lnt il the Salo.peraon'lIl1'ltlr= or thc QOmlTlb.ion. paid by tbo pllrtielil to real e.lltDleITanRlilct3nm..
6. caenr FDa.. ." ,
In noevcmtebQU SQIe&panl(ln ohaTJ<llClS3 than lbe commlufoft at recCl~~blboh.lld bylbc 1!lrob:t:widr.ou, lhl: prior wrlttenccncentoCBroUT. .lrBmker.hall h.flve
entered Into II .-pCleJallXll'ltnol::1 nr qn:C1Tlcn1 penain:lnc [0 any particular lrloll1.8atmn. Brokor ,hlllJ ad\li5C Sale~o1t of such epee:!al 8TT.npmont. All com-
rn ilil!iliolll And f... 11'011I11 p"rtiClular lI'DftCIIledon 111\1111 'be payabl., 10 tho Brokar. S.I....p....09n ,11.l1l\ot, be:: personally li.l:ablcll to Brokelr rnr .ny 'C1ommilnlions DOl
~ve(l by Broker from paTti. LO A IranHl.mOD \mlcal &\1;.11 1tO'n'pl1ymont'i. Ihe TC!Iult oroollus'lon, Intclnt(c;oau1 dr bklel. COl1ducl Bi-okc::r ,halt htl'YC 1h.
C'Ill::tusiY'l:' rishc to <I1!11.-mino whllthcr In ecrmmCfl"'c Uttaation to collect J.I commi311lon Of' fa, or 10 5ettJo ony c1I1Jrn fOT tho .....m\J.
7. EIII/t:n1HI'JhIdc-A.~..~ ...;..
Sl'llcspl::Tl'lon IInd Broker Ih~U conduct bUllnl:'l IIn4 filgUlate W<:A"ldnS JIOhO(lUlC'll80 ftS to malfttatn .rid to'inbf-oaill: the s:ood wlll..bu.lnall, pn)RbiI, .ri.d r"PlIlftUr.."
nrOrokcr and SatupeTeon IInd olOoh 1IlJT':0lI to conform to and libido b)'.U 141M, nlle. and NaWIUiiCnUl,aJd ood"ohthias tbut IIro bindlDion,orappUellblc: 10. real
IIlltdo boro1ccrs find u.lcs-pftNiOltIt. S.lwpcnop end Broker IhlllJl bIl SOV..m.1iXI by the Coda oCEthle. of the l'if'tlonaJ Assqciation ofREA!.TORS", the Act. :Rules
and Rc~lflUonl orlhl: Relll E,tekl Comm Isston, as the .lIme:: m"yb;. (tom rime 10 tim.llarnanclcdOrlupplcmcnll1d. tb.coaAtil~i<)n ~ml b)'-lllws orthe local ~I,>,
h..,..,rd f.01"suc.h ottlcr bollrd or UlloX'i..liun ~or; mlO)' h.. ~groad upon).. ond tft"Nle. IInd I'VF'latil)n, ofll")' MII'UploUlfIi:na; _rvi"" with whi.,h ll~m.y nuwurin
th. f\lII.l:l"1lhQ IImURted. 'Bf'OJcMllrtcl 5al"porson ~hillll rtllllin mlmllxmtbJp In IOOd IbIIQdlrle with thcNBtionalA11loclatlon o(kI:iAL1"O~"', tbo Perln.ylv.nl"
AItItoollulon ofREALTORS-,lInd tho lQl;lll reaJly board nr 8J1S1;'1OJ."tion dall'lU\tcld by lfTnkcrroT III mil)' be alJNO'lllpon by lh~ pllnl(lll. Wllllft.O'Ye7'BTnkOl"t,"
mClmbor nfltny 'renT Cl!Ui'tte OTlI:anlz.udo" wf\feh feQUINI l1'IlSmhel1lhlp ofSal.'pctl'lon in Il.IoIld nTftlllnlll'anon. ~hel\ Saltlllp=nIIQn -SMOII1,.. he/she .hAIr bIltxlmCl .
mcmbOT IInd ray (~ or dUN nQui.red b)' lNeh membersllip. Drokar.n~1 Stll~plITlOft a.rf:t!llQ be oound by the:: nllGll olld.n:lplIlIlClns ofsach Ofpl1h'.luianll pep.
talnJfljJ kldrthl<l5.nd lI",nCl~rdaorconduQt.n(tpfOQC(htt'e, S4Ilell(JOl1'Il:>n lIIQknowJodpapclUIClMhm or"currcntcopy orche PonIllJlylvanl:ll a.ill E.ltalfl Lklc:m"in[l
ftn<l Reabh:a1idon AoL tho Rules and Rut:Ul...tlon~ ",r the P%:nnlyl....niA Rcal eJiCo:Ite Cammi_lcm, Ilnd ~l1c Coo. or Ethl"" or lhe Nftfion,,1 ^~.I;nn C1r
REALTORS- and 11:1'1:1'" II] be lIIpprbcd or Ihel rornvlldons tlle1'eOrlO lbllll SIItcllOpenon will conduct "U"ot!...Jtlf:.lln a mAtt".I'(lOnlili:iltlml with .sucb 11_ end
clhk:>I,. . ".
!l- R-l'E..reUCe~~nd.o_~~.:, >.,'., . ,
S:.'llespc~ .ha'll pii)' lhC!'"(loll offt'fiSo ftlal oAtale 1{~'1I requlrod by th~ provl:dcona ofall)'low or rQiulatlon of the O:Immon"{C'allh o1'hnnsylvaniil. SAh::spcnOll
~,.ll fi.lrth~t~l!I"l'C thaC the ....qui....mcmt~ ror llcenluro 1l'.II nllll estllte:: ,1nlc$pCt1lOcl b)' the CommonwNlIlth ofP<.nn~hl.nl...... Iillilltlod. in CIVOIjI rwpcct, Iftc:lu....
jnlJ tl1e tlmdYll21tlllracciol'l ormand.tor)' conlinuing aduclfWnol l'eqUiromant& SaJe.peraon .h..n p.y"U d-ue. for membaTllhip In tht: a.,oclutlanl'llClC ror1h in
th~ pTccccdinC paragraph ortht. AgfCemet'lt in Il t1mClty ,...hlon and .ball pJlY ,,1l'eKICI II' mey ho levlcd ....pon lncgme OT pmductlvft)! by the r<<loml.overnmclll
the:: lnt."',~1 Revanua Sonokc. the .Conlmonwollhh orPenmylvllnl., Qr nny loclll munt~IJNIIU)'or scbool dislric( ClrQtb~1' luch tax.lnS aUlhnrit)' Inohldll\' bUI not
limited to U,gOmCl t.Il~~, OQCUPIl~lOl\ nnd occupatlon privflege t.xc'), pC't' capJla tUell, ml;":~lIn'lile Of' bUSUlri:fl" privilep taxel.
9, AIlIbarib' HI CoRnClt.
SfIlJoll'll'l'aCIn "h,.l1 bft'Y!C no lltllhClnt)' to bind. obUQ<i1a oroo"'U~lt Brolterby Hn)'l!nnnllll Of 1'Ofl~~..tion, llnl~sli IIf1DOHial'lI1Yl'l\llhOTb:ed b)' BrokcT In wrlring:
'Pro~ded, hOwsrvcr. th.t SAJaepcT'llCll'l. .'hIlUana I. hl!lTaby authoniled to exouulc listine I\SN;Cm~I;s_bl.l)'cr lIpncyconlraclli.IC:::lIl11: menagilltncntG(ln lrl'lct.. all ""*111,,,
all IIdden<lll Dnd "SNCmontlappuTtanant thc",to for llT1d on behalrorBrokcTwhcrenol in t>>nfllcl with Bmk!!f'" lllicnc)'pral::llce. and pTO'Yided that lhcc:ommlll~
lion lnvolvod In .uc:h tnnJlJ>Cllon is nOllcalllh.n thatdeCllrmlned (()r'\l.c:h tl'll.ftll.atlCOl1 or lIGfViCCl by BrDkeT. Pnar 10 Clntcrinllnl'Q any l\lCh cnntrac:t or ll&l'e~.
m~nL S.lctlpllT:K>n Ilhl1l1 d01enninlllUle "",ncy and m"I\4\~menl practiCCI of SrokaI'.
10. i:nvnr ..d o.mI__ '....,....co.
SOIkspCl'son >Ih,dl COOpCt3~ f\.oll)' wIth BrokoT IT1 obtlllnitli efTClr, !Ind ommill'.h;on, CgvctfaP in 'an lImounl., anti with c1e::duClihl.., lOll shan rrom rlmq 10 lime be
d~rmlned b)' BTT>kcr. Saki inaul'"neo IIl1an pmtoc:tSnletP<:T'RoT1 aa::dn.lltahIUty whiCh ma)' aTtiC in cot'lTlfl~iCln with thec(lnd~'Cl orSelCllperlon allln "Clive
real c.eate Uean........ ~flid polloy orpolieica IIhall c:nntfti.n a.n c:.nd01'lleMCnt "amlnt' F.h'okcr And .n)' .ubI51dlarh~, OrBTOker .lIan IIt;1dldon.llnaurlld Rnd shall not
be .ubjoo;-I lolSllncclll'ltlUl1Co1.CCpT.on21 minimum orten(111)dll)'1 priOrwritt<::ll noCi~tQ Brobr. AI:lc::nlAcntc or1i"id in'lIT'aRCCllih.ll blld~lcxI wittt BMkoTOTl
OTb<:ro~ lheerrcctlw d:ltllund 1l~1l ",newuld"~orthillAlf"Cemonl. The cose of:t$ll\d 11lI'UTal1C!S atllllF be po.l4 pUrlI""nt co thawrirhm poll.c)' orBt'Qker or In Ihu
~h..enc:'" IllllroDl:lIuch l;<lstal"llll:H: t>ome by PTOkcr ilnd :q..IC'llpt",non in Ihe lametlr(Tportion Ill! 'he)' W^' ,1(1' '\<>, lUll 11)' ~hKr\J In Ihl! cornm\u!tnl T.;<I\lltlngl:ro.:. ..Ii..~.
1"6 ..,.., ""..h: p(.. ptOll.,;.ny I.ti i.ll .Jet funh 'n lhe Sll'l",,"p.<'1Ion Cl.mmlllol&t\ Boh.....!...... .
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11/28/2aa5 10;42 717-761-0923 JGR ERA EXEC PAGE 17
SfJcllxnon egnrJI L111it..ny ~uld ."laUn,. or-ptopcrty, laenc!, A,8(eemcubI, ilnd _l1l1otlo'l. t.~ In.conllectJon whh tha rml cstate bU"I1(l'''.llhnll h~ Irt lho rtl:lmll'
otBroblr. T..istlnp llnd IIPft"7ocontracu ,:hall boiio filllk,1 w!'h Drobrwi~in twcn1y-l'olo'J' (34) h0Uf'l8fttlrnlOl;lip~by.S.Jcspenon. All Ihninp and alcnc..-y~"OntTllcl'
,hllll ~ ftnd remnln tho c;llcluluva propcr't)l nf'BTokcr. An COf'I"CaJ1'ondCl~cc ~Jved,. t:bpioa.. ofClOlTC8pondlmce wriUcn,J1hrta,li.dn& Illformation, mcmcrram'D.
ntea. photOSBphs. repons.lCalIluptJlions.accountlng inlbnmltion. and an)' Ilnd AU otb.r iriltrum~lA., dOCVmcnt. orinCOITnDtion or..n)' naNn whl1h100VC!("O;;:OO-
earnins tnil.nSllcllon. bandlod 1;1)' Brokcrol' &J~~Qr jointly, ore aM aMll remabt lbep~Tty ofBroll:uprovld<<llhal SIIIet-pcl'lon ls .ntilll!ull)" oUop>, of
'l4Ch fn"",mOft'.Il1.nd inrcnnlltion UJIOJ) nsasnnablc 1'OCl\Ie.t concamif\5 .ny transaction in whklh he/lhe ill 'Pennn_U)' havolved. The ruarti~ hll'l"Q1o sbo.J1
Dnltloudly ftpI)rove4nd lIlP"tx;l upon aJlCOTrCllpc:mdcnce rrorq the a!l1coarBrokerperUlinmg tQ ~l'ftnSftctlOM handlacl b)' S..lc5pt'~n,l1nt.l .ha11 IUrchcr "&fee 0., the
l\lorml ta be u'lId and. rbII' ~onttldtl ~.II csontmctl and ,"hOT farms before they .rr: presented co clierlt_ Ind C\1I1omers roraignHtl.l'l1;.
1'2,.. De,;o.n... . ...,.. '... . " ;;:....' . :
All d~tu nteailj-.J by $aJ..penl:m in chc oou,...oEII ro~1 ~c.t". trun.lI~tton o(lIny natute Ib.)l hcimffil:"dlacalY tr'll.n~1'errcd 10 8ro"!", fordl!lpOlllt P\117\I1 nt 10 the
Act, Iho.Rule'llrtd Rapl.tIOJallorth4 RQII1.E:Jtn1eCOMmllltCtn and theaan'lClmcntoftbepartlCll In Iha tnInlJactlOfl; providod, hnw.,.,vor,lhat l\OY dOfH'll'lllo be maln-
h\ined by another bl1)ke:rafn:cOJd pU'1I\Jlmt to tbo ACL"Rulcl and Regulation, of the aeal E;.rotaCommlaelon and eercam...ntorthc pal1l~1 UlllIln'11:ncllonsh.1l
bc'l.mmfldtalllly ttlll\sf..-rud to "ur:.h brokw wJth Ihl;l fI:PP"!~ate ,~~~~}~~~~ JlG11I~ ~;.~n.~;!J~~~',~f(l~~lt and lO Bro"kcr, ' . .
13. '...rrutlnc......
.'JeTespenon ahan.ln!;lcmnif;y and hold DrokGrberm.leM from Any .ibd an Il::llllma;.cosu:Uabllhiell.andJudjJT1\Dntl.h::Icludiftsatt.nrnc)"s fen, aildn.!; rl'Ofrt thlllntel1.
tionaJ Otnx:k1l;8l1 adl ofSnll'l:!JpeTlIon. orllcU'oul:lidcnhc-=:dpe ofSalo~p<mlOil"liuthority,.. 'Wl\.on1ttJl.tlon.Or. ditpulg .TiIQtl:"on.ccminaa lrtlTllN!lctkm ill whkh
Salupe~n.w~s 1.."CIlWld., ' thcpames h....lO.b.11 mU~\lal.1y.~oo~~n.l.. w"ith l:f"c~ Qthor". 1~,~,j.\IP~t~ orlitt&:adOJ\,w, hM<> thoroi:J III 91...lm totbc clT~~ t!"'lIt Selclpc:r-
liOn hilI ~cted tntcU'ItloTtllilly or rocJrli1Mly O'f. outside the lICnpt p(SlIIlespcrson s'authority;SalcIPenon Iball b.....r ttlc COSU, expenlUlll e."tlUahthhCI In.clud.l:l\,ll
j\'Idlriiahts and awnrdi iuildn:a fl'Om lhl;YdlsputC O'I"lW'tlUnil. 'In dlip\\(ca O'r lill8llttlm wh.Cft! there is II clatm.CC) ~he Qft'qctU,.t SaleitT'anlon hnll Ilcfcd ncallaently.
Sole.pCTWQQ .hait Ihara tbll OQlJQ, lilXpcmllClS IiInd lill.blhti~ ineludlna judgmOJlhi and a"'''feU .rilllllS f'rom the dispute or IItia.lhm. Such sbaring sh.all b.. ill Ihe
samet proportion 11I.1 tbe cflvial(lD oCwmmillloa ........11.., or would have. btsclJ'I,.l'rom the lubject Ir,p.n..acdQ~.., . The sharing 0(1<0811I, a.il::panlQS, :aJl(111"bllitle. Jlhltll he-
witl'l"''''' pr~.hldjclI ~Q Brokar'. r1ghu oflndamnlnQCIdon unJeu there hI' l">c:l;TIlII relOlutlQTI nfthl;! iml.cmnlncallon tllllU~ hatwlXln the Pl'rIHl8 hototo. Brnkersh.oll,
lJt'1c:gtwun,eJ t.) TC"pl"Cllcnt 8rokeT'c and SI1JIllsponon'slDteTestB in IlHS'ltl~n whh co.IU borne by thcpal1;c. in proportion g" ,,01 ronh above ~ainin8 tn the shat"
irllorcoltL
14. 'liu:m(n.doIr. '. . ','- .. .,.
Thla ~inent, and tbcnol..tKullhlp'cT1ulted hereby; mfly~qlermlhiitC4 hy',lilthcr.p~ ,1l.eietb;.Mth'or wltholllCaU$e, Ol'll'fty timo uJI<m written t\01ict:.... UP9"
tormin.ilon, 1111 noeotilo1H(Jn~ cQ'mmenced by S""Ii::~ ~ut1nli tbe Ui1'iTj ofthls .Aai'Oeww.'n.t~ IInal.U be h<<mdlcd IhrouSh BrOkQf. 1I11d whh 5u;h auilllrin.6c and
cQnpCl'lu:ion by S..I~lIOn II' ill run.onablc under me ctl'ClIt\'\U_naCft fnr ~he.pNlcCtiQ.n t.H".tf'lc'jnlcn;:rtiI "fthe pllrtiea 10 tba TC.lAl estlllrc trnQSllClionl tnvu1,vcd.
Slllel<fXl"IIQp, upon ~atTrlin.tl.on,ll1a!l rumilb Brokarwlth a bona (i~" Ii"t~r~q prdllPe"C:ta, 1~~, ~.-..~ '[ltoP_bl~trl"nsactlon.dcvlllnrod by SaLClperkll\ a. w"'lli~ 1111
aal'TDlllponde~ And dgou,mc:nfll dc.Jcribed In Pa:ra~ftph 11 above,. whi"ti.ill dceme(J'1O be 'tl'lo prol?oi1)fbfStoll:er. 5hl,1",pw-llQn further al!'HA.thllt 'ufl<'n ~~
mlnotiOn,ori.n andelJllitlon thC!f'lJar, hellCh~wfl1 nol rurn"llo 10 artypc:uVQfl. n~ebM:p&n)iorcoqtoni'lqri ..niJ;_lod in tbcrCllI cnliWbulIlnc$5 Iu'yinfnc-m.ttt!on as 10
Bmkcr'lI r:.llcntA. cllltomcr., l"H'oplS1'tiol-, "riecll, tl'ln'l'lf of neaotla.lkmll nClT'fIrokl#'lI poUIltwOTTCladoiulh1ps wlth.clienlll .ond cusl(lorn~ oor itny olhe'!" infnnn.don
eonomninl Bro'k.c1' lll"d/Clr h;~h.cl' bWlin~a. Salc"llCl'lIon ..Ills-II not" after1crmtn.ltion ortlll, Asrcerncnl, 0'1' in coatclmplatioll tbmor,'ro",'ove I'rori; thr; 01_ or
rTOm the ofne., orst'('Ikc:r an)' m.aterillll". dllQ!, publkaClonA.OCIlTC11pondonc., mil" nr h)formarion tbillt ill pmportr. ofBfokor. B~II""Pen.oa .,hnll be lCntld<!d,'"
oopta o(cert.in InstrUments p~.tninl to traft.laelin.,~ In whictl Sal_'I'lCt8l'm balll.OOna,rKlo jn~I'CJIl;1 or pCTta nlng tc _minpnr SilJ~pcT.on, : .
1', Com""_OII."CIJ'II~tlOIL ' :.,' ,: ,. ..,., ".". . '... ',., ; .
UpOI'1 tarmlnfltlon, Salesl'ponan'.sh6hl oCCOn'ln\i""iO'n.1il on any tfafUDC:tkmll wh.crc: Ii la~..4seQnlr.c~.b,JlJ1::ibU>tlhotranaact:lon ";a. notcl[Jscl:l..hall. an"'lhcoe(g8Ing
of"uoh transaction, bapllid to SnlcapohlOtl in aa<:lom wilh tbe SaJc"pcrson Commtuton SCl'llJdlllle in effect al tl'l'll Ume! aflcnnination. TluInllIh.n bo dodalCred
I'rfIm P19h ahare. howaver. _ lla'Viclna chll1'\J;c or~ . , or _" or the. amQ\ll'\' of the It.Uft&j\ndlpr N1k>II4;ommbaion. whichever i, h i,ber.
Nocommlwob othcrrtban COr thOle propariu. on which an e~ro"'nt ha;, belen ltlBl1cd and .....acptecJ In writil'l.j bl' the bU)'CT:IInd seUe-r on Ot'bc['oy-c l<>rmil1l1don
. .1111111 heclo.mod ~TTl<>tl bySlllupenorl, unlelllJoShclWi5C elVCcd in writlrJ8. .. Likowile, nOl;lommllllon f'CIultlllg f:rom the I~Sror rcnt,.ortho1'ert1M.1 Clfpropr;:~
aIuln be !MId to SaJe..person lbUowina: tcnnln.tlon with the exception oroommisaions at'ltdnfl!rom le..os IUlly ex.oc:llk>d prior to 1C1'Dl1naUon and tC> the o1't"n'
th"ttcalc paymcnt" an;: l"ClXlved priot'towlTflin"tlon, SalC!l8p(lno(lnshflll not, bOWO"-.IIharoln l:h~cc>mmJ.lIIionsp.llYllblc In thQ futu" and baled ~pn thelCl113.c
Oi'llans or lealla plilymen,- ltot yot d~.a .nel p..y..blc,
16, 7bnni_doa Pro_du,... . .
Upon lermlrlalio'R by either pliny. Satl.lIpal1lOn IIhalt ImmediillLoly; ". , , '
1I) lI'1lbanit Go Jel1.crr nr Icnnl,nallon with a cnmp1cw fI"ountlna; orcommlulonl. Ulttnp.and btl)'t.'lf elientB: . , .
b) return all Sllppltca, cllentlCtlSlOmer r"t'()lIpoa~ 118's. keys anddoOCtlmo.,tll conlljdeNd J'l'Op4rt)' ar1!rokorpUl:'IUaDl to the provilllan" orlhJ:s. Aa:r"mlnl.
e) meet with Brokcr t'or purpoaea or atlompd?;tS to m,,"aally IIIP'C:O "'pon a final a.ccoun~inl oreommt,don~ dlllC Bnd po.yllhlc;
d) C::06por_to in Illc notilic;:4tlon nftl1Q l\.cal Estell1 Commhlllion rr:.prdlna the tennln.lion c>(thc rcJadon&hip orBrokarRncl SRlo;lllperson.
. 17. ArbUNtt...,rDltrp.....' . . ,
Di,lI;&UOmcnla ordillputaa bm:wccn Bul\l.llpcraonand lhulu;:r, orbctwnn Salorpe:l1'C>n and a r(,'!alCllalC 1ice:n.16lI a;*AOCilltad with oroonfractocl 10 Bto'k;."" ..nr.! wh\oh
arise oUlar,orin connectio'l'l will'l. tlIenllll ellMtc rnuinr:.s.ftnd whichCllnnot hoadJl.lltr:d by Ilnd batwMl'l !:he plil:rtJGII nwnlvc;d.lIhaU be: submiUecl. Cocarblt..-.lioJ'l in
"'""'ot'dance with Artic:olc XlV ,,!the CWl!lnfElhiC>ll ..f"tt.Q 'N"tionel ^Noeh,tivD of ReALTORa-". By lhia Af;reumml ~.:ld _ rbttonion ,.,billl be mand_1Ory' and
Droker and S4loa~er111;m .~ to p-rovide.. wrIttmt .lP"QCmCDt to tile local alltlOC:llldon. ofl:U!AI;r'ORS'" at. 1ftey blll"'l!li:Juinm by lRIid ftS5ocil.ltion .Ill a oOnc::llUnn
prcc!OdeJt.[ to .IIrbitn.tLQn. Broke.r IInd Sale.person IlI"CCl to b. bound I;>y the cL;=elslon of.lhe ar'bltrlltion. "..ncl of the local .,lsoc:i1\Lion Or the PcnnsyIYll,n)"
AllochulOl'a orRRAt.:J'OElS" which hUI ~to'l'""bl;ncd tll0 di5pute or di".ljllCQIII1VDC, Thll: oonduet nfahe _mUnition ~hall be,llOVem~ by the Corle of Erhic::s aJJd
Arbltmcloll. U_u.J mQ$1 RCClUly publlllhcxl. by ~he National NRociatiO" of' IUiALTORB- prior tQ. Arhltr.tloo, a. anurndlld by tho local a,socb'l1ion
hCllt'ina: the diaputc.
UI, AIlt$ftlIJJ...II'.1I'.
Thll Ag:rcemonlll1ny b. al11ended Qra1)/ by lbe Pl1rti..5 hereto"ln wrili.ng. ... "
. 19. GIIl',.Rllngr...,... . .' " . '. ,.. '.., "
Thu Apct'moml shan hee;n'YCrnc:d by anclln~rolod ptI-fltUMl.t to lhe IIIW'! ofthc,Commo-nwe"l~ grPcn""yl~nia:
.20. s..~onlabo"leJfI. .', ' ,
Thl.lAKrccmCTll .11a11 inure tcttha benefit and b. 'blndtn.s I.Ipon thelUCCcA~o", ir> intcrcstofBrokor. 'T1:d, .Al:rccmel'll. hcn_vcr. b ba.ed on lhel"'r"$Qnld .crvicol
OfSIlIID&pef'lDI1 and Sal,gspenon !lhlilU not l:lclcaBIc Or .nip fin)' ofSoleapcnQn'" rid\b OJ" dude., hcn;:under with?ut tho prior written. C(U'I"l!lot of9rokC1'.
2:1, PoIkyMa.._I,
An,. oMc;e policy Dr f\lllill and PMCi!duTI;!S milQ'Q.lIJ now ,,,,~tin~ aT hcr.bafh:r .dap~, 01' ~mcndcd shall be blnd.fllB" on thB parliCli,
22.. . EdlltvA.B........f. ". .'. I,., .',' .
'Tblt Ag1'eomont o;lOllltltU(oa. the alltiro ~"'n'1 b...lwecn'the BrOker anti Sa~cllpcl'flOn., find th....e ate no 1I,p'll6ftllO>tlB or un(ienlandlnp not cxpre.iod
hCTr:.~n. .
, IN WrrNESS WHEREOF. thla Agrcoment bac beilm ~lIleutod ~ Iha ~t.e'fi~,'abovo ~tkn,
;
WltnQII.,(or'o~t):
B,
,'B~'" ;;?~.. ~~ ~ .Jf~
" , 1~ I.. {}IJ.-
~~
.",
VJt1l1CS.:.
B.
CO~I1isi' ..ivHm::. BROKER; 'o'1l"LOW, s.r.~."l:n50N
1"'IlHN5YL_..,.....lIill'OCO......'l:JNaf RClAU'CMI" ~
, , ,
BrokcTlhouJd cruwetlaatwrin.on oflicc:l poltclu dollC"l'it>ina Sal...~)1 nnanclol o'bllpuon. ~~II raspeel to oMeo luppl~o;:.. lolophono,c~ end _ Salap"",.
Commiulon Schedule qro pI'O'\IldolId to S.le'I>_~n.' .., . "
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11/28/2~65 16:42 717-761-6923 JGR ERA EXEC PAGE 18
BROKER! SALESPEHSON
INDEPENDENT CONTRACTOR AGREEMENT .
Thl" /'mill fCCfl1\\llldl~dlld and llllfl_ed rnr. bm nn! ..,.l,l<'tlld tn 111.. \1)'. ihll11\~I"bCl:" ..I'tll. 1""'''A~yhlll'l. A"a...cllltIA" t)(lttt"''l.'-1111:t_ n'hllll
leA
,(..~~f I"~ 1~;r~~;;'O i
Wbereas,Bn:t1ccr 1II enpp Inbumnt:Mua~1 &buoBmlalrlUld III d1.llylicxltlAOd to OI1N~.n 1111; I\CII,'illcsM.\ "Brnlt""'. M dl.'O"e,t bYlhc: l>';:Illll;ylvnl1rll t.lool1~h8
III1d It.l;glBtmUan Aot" Aot o(Pcibn,Bt)' 19, 1930, P.L U. No.9, M Ilmcndod, And
Whereas.:Brok<:r llU'ilnIAfIll. ana M1I10r0 nm_ ~.....y o;lqUiPflIXl ",itb Funlilllunp. li.LinG" bank", alleJ ~lhcf c:tf\illl'llll<lllllQgl;Mnr)' lIll" lioolLknlnlln 1/10 rmJ1L'T nfN:'J1lllau
or Mid 'b\l1l1nt:M, and IImtfbd with clerical empltlo)"~ an~ .. lh~ .\Jiln"bto ltlllCTVillG IIle pubUo M Do reo.l Qltl"tc hrnkcr, r"I4
Whereas. Spl~on ffl duly IIGCl11Md ~ lho C'nnJl11Ofl'WCn'11l ot'PamlrylVPllin 11., ~ noli ~nlr: "llIdt"~etMlIn n1' "M.<IOl!llllc brnkcr" IWI dl1nll~ by fhe Pt"ll1lllylvullln
I..i~."8 III'1d RIlI.II r"lmUr;m At;l. md 'Whl;ROfl II III dooltKXIln ba to 1110 nlllll1p.1 ndVll"'/ljEI ofBmkgr- DlId Snh:JI!lcmml In elllcr (hi" CJmlrnd IlflllII Ihcll.."lUl nnd wmdll(IJllll hCTQ-
ITl.ncrllC' fun 11.
NOW TIiEREPORB, fbr lUllS In QmlllldonlUnn or !lUll murunl oa";C'1\lIl\llllllld rrmtli~ hereill "Hllllllnl'cl.lhc clIIc.JCTIII,gned 1Ir:n:hy C'nh..', 1IIIollhe rnll\nvllIg nr1ielCfll of
a&I'OCIncl)j~
Tbis Agreement III D1llared Inln lhill (dnll.l)
~hlal\Q- rgfbm:d In lUI ''Bmltgf... R11d
t~,~", -:lAo-I-. C" LI~ ~4.l t-o..-
. .Ju."I'\llll" \"I'Il.1n....Il.'l.IlllHl..SIlI~t'Tllll'll...
I, Tn4~"lhnlf o,ltfMdltl\
Tho rolutlCllUllalp or SaI~, tn Broker III .lh41 er.. 111ckJr10tldont Q9II1llX'tm.. 11\ {)Q'fmlniui' thl: ~1i"iliC'll nr R 1\:<\1 ,ClIIIl": "lIllellpgnlnn" IUIlh=,nl'll.-d by lho Real J:1JIlnLC"
U_in8' IWId Rpailltnllian ~I \1~iMft='"'fcITod let 6111 "AllL"), 1It11Cl'J'lCRlotl Il"l'll \011 f'rcq ta d~ I'ftG"h pC'lrlifll1 nrlli""l~ 11111l1, DII:J81\ erri.rllllllld ilklll. u 1K1/~ho dcClIVl
lIppt:uprMo. fn Kepln&, wllJ, tl\O' indl:J1or.dall COftImctm' .tIIlia1\ Snl~l1 illU!olI be fWlpnlVlfbIO rnr ot,n!f'llellu8'A1IY U"lll'lhl\te<lllltl;' by 11\1; Act (II' alhC'l' ""WII of Ihc
CDnU1On~nl Q( Pl:rmflylvuqfa; :SDllMp;nl[J11 durll Wtft an 1l1ltl1,.."I...kIn lMaf. IIIId ~alva IIG .-!I...y. rril1R!:' bl:'lKlfiCIII, 1I1Gd1G"1I1 ltI'1C1fUlI, ,.owtlllll hCllofi..,. nr f11"'1fit flbllrhllJ;j
110 IWUt.J,. '-I. 'Uncmplt11)'1nml, Snalal Sl:O\1rily ar bUllfl'l~ prhitl:p UOlI twbcra 1IIo~1i~IO) lil1IAlI be ~"II'''.*t fmlll 'Snl~'mmn, SnlQlpanlnn I'Jlntt rny All prafbftlllm..l
JlODOIIIII.1bclI.. I;lITI'IIlI pnd olnl_on. InlfUNuc:o ~""I1M \~llUl t1tl"'l'Wi"" provfded hl:l'oln). lr1ulli-li11lhI8 ICe. III1d1t.r u<oIi\PUh"f """""" r.:...... 5p'....,p~on .Iton nvt be
lTn.t.d.. _1'1 emplo;yea: wUh nspcGt to lh.llllrna:.. p..rormed 114Ir.llnd.r rOl" I'llller.llJr ahila I.~ 111l~p<l$C'tl Ill' rnr 1'llrrCJN;f 1I1111tl'IIIC' Wal'kt~'" O..npan,"Unn ^1l'1.
2;. Sma lfll1Jrt.
SalaIpCll'lmt ~ In w;:tuan Ind~ontfOll1 OIIlnlO IVII~cnt(Rl and "'IPlllbllhf\llly. IC'lynlly Utld Il.1Qlllly t"llJIlije hiNln.., uftllrlll III IIL-lI, Inlllo>, IL""'I: 1'\1' RiIIIl1\y.llld ,,1I.erW
otlllle li,ucdwilh BTnkQt,ln fIOtlcll "dditionall~tlnallo ~\MltlltK!l'1l and'glll!llll1 fhrDmlror, "l1lltn (1111C"fW1Jl~ 11fImmlr. IlK: tollnlllllll\llllrlllltvlllH IIIL' 1Ill11liD hll"Cl1l1 1:1'11110 Imll"A~
tlflllullo IhQ Qld tit4/. each nflhc parliCllIII:r<::IQ lTJlLY dcrlw tho pl::'l1IaIl pmRI pclIIlllblD. .
J. om" FndJltllf1i.
'Broke!" .d11111 ffcun rl1t~ 'C'l lime dClt1anlllt1lho offiQJ with whh;:!J lhe SBII:Rf'C'JlC1ll "'wit b.: ~ocloiC'd. Tha. limeD It,,,,n b.: pnwfd.:rJ wIllI 1111011 r,lTIllllhin.ll:lllmd .:qulr.mC'lll nil
doclI'Tuxl n~ DC Ihe dl~l1IljOll QfBrob:r" fur UlC [mlpc.T npc:mllol1 nfn fall ewmlo nMoo. l:trolrcr ~mllllt"lkt' altlll!llblo 1t1lho inlC"/f'cUtltlo 1111 L)11m:lllll,.lup of 110 orncC',
mld "iVt'OII, uJ1ml n:oqtl<l1111. 10 AMI. tho SRJClIlfll:ll'lI"" In hl5IIII:Ifworkby lId,,\I::o,. 'MtNcl101'. Gnd ImnpC1'nllmL In dla eHlC'nl daonad ftI"P'CI/1fllllC' II)" Iln.lh:cr, $nlCllf('lt'l'1lNI "'\AII
PAY fur lcmirdtlllan~ ICIl:J1hnnc clUUUClllU'ld (Of' RUch olher (01"1'111\, cqulf'1lnDJ\I. flUppUCllII /.\II Ilhall be IIct fbrlll III )JmkL'1"1l wrllh:n umc:c rll' Il:lc", .'
0(. Au'IlI,,,,bll..
SaJClflcnlan 1111." n,mIAl, hl"'hcr nwn lIu~"~bilcllf1d Jlllyall fctult'd Cllfflc;'lUlQ'l and BmkcT .r;hnll haw 110 n:~llOIllllblllly rolnllu& In Sahmrl'"...m'M ,.1I1n1nnl1l1o I7t" Imullpor1nrlnl\.
Spl~~n ~ 10 ClIfT)' ((ability lMUrDCu:c'Upon hllll1lClrllloUltm".tib/Jc ""lk nlllllmum liobllity tilllllll nrpoo.oun (Ill' cru:11 pl:'BOh NIt $.1OlI.flIIU 1iuclII;lh ICl:llSa1lll\nd wilh
fIIlOrll:Ill:)"~ lluWHty Ihufl" gfS$tlJ(')()O' ~.,n.~ to (units" BrokCT wilh. a:rCUklllg cc:fIIMlla c:omlllhllccwllllll",. rCllldr\,m.,lllllll\1 dqx>dft!ll "",ilh tJrnm
on (IT \)Q^,,-: UKl \;It'focllva dulo Ilnd cuc!h n:nDWaJ dGolC at du. A;'tccI1wnr. ar nl: nlhC'f Iln'llfl n.'t :Broker mlly n"/Ull1l\llhly reqUCflli,
j, C_lmlJr.~I(JM.
SnlfMpl:mon sbnll be r;:uttllcl to IIllhlU'oaflhccllIllmiMton....wmcd and recclwd byDmm In nDllflO'lnllllC wldc Uml<1:r.1I Sn\l:lIfll:l1lllll ~."II"III""lu,, So:h~lllc hi e(J't"CI tIlllh(..
dnlll nrlhe tu:ll cllllt1lnu :9~h:"pQl1lon to a I;[IITlmllll'lion tllolol oblnlnln.lll'lllna. plootllU prtllKlflY Utlder acroClIlCUl nrrmlo. clo.' or nil nlherwllle IIHrcccJ fly 11\11 JUlrllCllln wrmlllif
IIrl tn a f'AI'Ilauhv 111'II1NICllon. Broker mtl)' Allct II" S&1l_pr::I"lIQn C'nnlllnlMf(l1l Sc!><whlle Itnmllmo kllimo ....ilhmll prll'lf"lmLlnl:(\lkm. )lJ;:vlllll1n~ In IIIC ,":h"dulo IIhaJl be hn~fW>.
dlntClly t'IflPU!;III'blo In all flItuJO 't1In~lnll" 11tc: dlvhinn or commfMtQll1l bctwc:ml Bmlrcr A1lU So.I""f'la:llnn'l'Illnll fnUnw dC'flllelll'ln flfnll Cllllt'"ll/ll:" lloaordll1lif 10 till) SalllllJ1C'T'l1011
CnlmnlMllOlt Sl:chcduLQ.. Tll no oac I'Iholl Bmkc:r be 1iabto 10 SalOIlpClQml fnr'lIIl)' gmmri"lIlnl1l1l1o~ 1il.1I.....lt:cL A.11 \1oo'''I>lNlIIlWl dcr Villi 11:11111 n Inlllll$:ClOlIl'lhnll bo dt'pDl'lIIl:d
with the BI'Q1ccrr "" re'J'llt1:'c1l;oy th", ^",t flJldlQf R.vllM mlo:lRa;sullldnul'l o( 11111 Rc81 EAloto CClTllulllllloll and IIUbflCqUC'III1)' poh.lIIl:u'Ullll1l1In Ihv SlIllCl'lrcrlll111 C01llmlfllllfon
SG"I\t'dul~h Tllbt dll'llribu(IOlllllllC.lllakcpla.co All tICICln M ~IUIlLblc lifter anllcx;:jion Dnd f1:r;:olpl (lr"uG"h Il"OHlIllI""inrll'l. It 14l1l1dcnllmJU Rlld nlJl1Jt'llll~llho SOlt'llpe'nl(lll'l'I nllly
l'QIo...anL4lgn fOr 1ho;l /lqyvjl:lCl'l bl;:11lG'n:lId~d 'Under Chill ~ll l.rr Iho Sal~ct1Itm'" ""l;\IV nrlhl:' Il'I1HllfltMlonll pnl~ by Iho pnHiCl'l 111 rt'lll ~lnlO lnulluollmlll
6, CliWll F.._. .
hi 11\\ 0YeI\I fli'''l! Sllltlll(1c=otAm\ C1h~ao 10\91 Ow.n till:' cmnmiuion 'Or (co IllIlablillht:d by 1110 BmkC'r wilhmll 1"= prim' wriflr;:u CCllltll:l\1 or nlllkl.T. Ir 1.\lukL'T IIhnli I\IlVC t"111~ {n'o
III1r'l'ClaI canlml:t Dr IIgroclt1\cn.~ "c1tII1t>IUIJ Co fill)' partiwhll' InIlUIIIQ!im1,. Brobr III1i1l1mMc SlllCllfll:tHnn r.r lIU.:h IIpe,"lal ormngmlC'1\l. AII11I1111111lMlnM nlld rC'1:lI frnl11 D par_
IlcularlrlUlIlocxlnll .tuln bcpayabl'a IQlheSt(llC'Cr, Sfll""fJo;;nron NUlI\ nnt bo ~ll\Ily 1ili1bla lcl a",kL'I' rut nllY 1:""lllllMlrlnll nol rv=1~ IT)' Ulltkt:"l" n.mn I"IU11C'l1ln IIlrnll~
II..Uml 'Ilnl_ lIUch nC'lllpll)"1t1c:nt ;lIlho RllI\IH ~r C(Ithll'litlll, lnlCIIIlQflal m fC':'kl~ Qrllld\lCI. Bl'Okor IIhnll II<<,,!,,' 11111 C'1I0IUllh"" '(ab{ In d1.1.:nllllll/ \\ohclllC'l' In emll1m:mlC" lilllP'lIoll
r<oenllcot "elH"miMlon er rcc,.or In~IUQlIny l:lalm rCl1',I.hClII~
7 Emil: mId TNulff ARW~WlfH'."
SDIC'flpt;nlO\\ and B~...hdll Otnlduct bUrrl'h,,:_ and rc::suhdgwf)I'ldllS lIohcdLllatlln lIIII ttl m.l1lu.11l nllrJ ILlIII":I'Il,llllll lho snmJ 'WIll, bl4llhl\:w.. pm 11111, And ~ulnlhlu nfDrnkcr
IUId SlIlllf11pan1C1n Md ad1 q;f'CQIII 10 COli fbnn In $110:1 abldt:l \1,. alII......,.. rulOfl and f'llilJUIIIUOlllll. I1l1d GOlia Ilf ..lhl1;5 Ihot IUV bhldlllK nil. .tlr "\'II1111l11hle In. ~llllllnlD brnln:nl Gild
~ellpClllC1nl'l. SlllCfllt~Qll and Bmkl:r IIhall bo 8tIl'YDl1l~ \1y ChI:' Cndo (1rBtlUl;8 nfllKl N.1l01ll11. AMnlllnclDll ntltE:^J~1'O~. 1)1l~ ^G"I. RulOtlIlI)d lWgulnIlC'l\l.' r'lrlhc Real E11atc
COlnlTlJAlion, IUIlho lIM10 may be '/hM\ lima m tl1no IImc'lld~ af' ~flI01I"l,""ect, 1110 !"'fIlltrl1llioll nrld hy.ll_ of Ibo lnonl rc::nlty bl'Uud (nt. fllJllh !.lUlL,. btlGl'd flr MMoInlinn 011
1nny bo.lI~'lrcmJ.lmd Iho nJllIM IIIwS npllWotIllCllftlaY multiplQ IlIItln.IlIn'V\GOwllh'WhiClII :Dmln:TlllIl)' nnw or III lite l\iturvba amllnl\-a Dmlm' nnd SllIt'fIpClMtln ,lIlInll
rgloln mcmhclndlfT' In SOtld !lIIInd(,,& ~Ih the National AMoolra.r;ClfI ofR&A.I.. T'ORS". UXI PClIlnIlylvtllolln ~IQI"lIo.. orRML TORS-, fllld Ihl! l"anl rgnlty board OrMIIOCinlil'l11
dCflllPUllcd by BrnlcOl' or 1M mAY bo IlRRlttd upnn by tho J1&ftIDll, Whcrwrvar 'Am....... IlL " ITlC'lTlha- of IUIY ~ ~1nle Jll'81l11balllln wI.luli r"'l'llu," nW'lnb;:.,,,,hlp nf SaIC"~n ill
tlUi<t l)'1INlrll:QliOl1. Ihen SaJ-r-rnI9CClI U"IMr",..IOIYlII 'booaIl'IO.jl.hlOlOOll1'lIIlldp")' r""l'It"lhICllf ~1'lirWo,."'u~ nll:lnb"",llp. tkgkCll'IIUd S11IC/1~M1IIIlGIW 10 bobt1und
by Iho rulCfll nlld I1:gulllllD'l1. otRUoh orgru$ltillanlf pgf'l:afnlnr In IIUIIOII atwi ItIlU1dclrclll 'Of IlllDduc:l flJld prDI..Iurc. SIlIOllJlC'f'~n adalowlclllilC/l p1M~lml nt II aum;nl ll'OIt)' I)t
tho PClITUl)llYllnI~ ~p.1 EJ;aoto Llocn.lnU' IItId 'Rq:tMnlIlan Ad, UIO nulCILIIlllld R./:I""hUla"" ."fCh.. ~lIl1')'ivJlIIIl Rool ti:rlIDlcl C'.c1l1"1l1111l11l11. fUld UIO <.'"\)dc C'I(&hIOll nrlhoNnl{mll\l
~IIlUOll flrREALTO~NId ~ to be appri...~ nFlho J7f1:JYiIllolUllhl:t1lOfll(1lhnl SDtCll'fK"1'lL>11 will c(>l1llnr::1 n1l ac:dvldllllln n Illlll11\C'1" I::fmnll'llt"lll wllh IIllDh IIIWII n"~
eChlCII. ,
II, RC1Il &lRlft XJ~,rs(l IVul D"c,1I,.
SlIl~ Ahnll J1'IY \IN QOIll of "ny roal ~wo 'iCCl1f1C1 rcquli'cd ~ lito ~i"l\"lh" tlf _y 1m'" or rl:ll.llllflllll nf 'he Cnll,IJJ1t;JIl\'1o'!;IlI3lh of 1~lnl'l)"lvnlllnl SIIl~I:TIlO'lIIlI1n'1 f1lrthet
=~, J1;llhnt UII:. rcqulmncnl" ftlr ItOCIlIi\JN GA a real IlRla.I.o FiulOI'lfIgnltlfI b;y tho Cnt'llttlClhweNlh (lr PclrII~Nlmrl\ 1LI0 1IILllllfJW It! ~ f';lllflC~I, hUI'JuulllB 1IX1 1I111r::ly I18llfnfloOlion
nflTl..nd,cary oOIlUnUrnll tKIuaallDtllll f'CIqllIrl:mg,nlA. SOl~ll1ll/1l1 pay all dups; for mol'l'lbtrllhlJ'llh II.." R.'Vlflcl"lim'lIl1ct rlll1tlln IIw {JrWC'dlng flDrllPflh (If 111111 ^~nCllll
In D 1111'1::1)' fhIIhlan Dnd .hall f'Il\Y 1l1111DCce M moy be 1000Dd ~ 111I:llJmc or 1"'oduDllvlty by 1111: (~ RnvcnllJlonl, Ill!:: bllQf1ur1 n.Qvonllc SI:tVlIlD, lhe Commom,vcaUh Qf
l"e1.1nll>1,YlInla, or Ilny laa(lll1'1unlclTlllltty IIII'lICihoQI dl.lrict nr olhDl'rIllah llOIIIdns aulhority jtl~l'lldlns 'Imt tlolllmtl.:d In InOl1I111: IOIICII, ocl:l1Jlnrlnll 1l.1ld nr:;:o;UJlDIIDI1 rrivllr:~ llIxa..
pl:T' C:llp ta ~ 1nCTellnrllc or'bulllnCM pr'yflcac taxCII. , . .
9, ~11"'rli)l",C""'Uwea: 'I'
~nl~1 ~'Illl hnVl; no 811thnrlty In bind, abllgolD trr onf11mil E1m1cCf''by 11M)' ]1f"mttflle or "'T'l"AOIallnlhm,. ullll:'lIl1l1paelRulllly OUllmrlzlll1 by IJlnkC"l' III writing: '~Id..d. how
OVC'l'. IhDI SDl='!~nllllh.U ~d '" hll'lVby llUtrm~ 10 OX'OOUIO tll\lUIli' lijlftl:ll'lenl", w)U'.a:.cn;y Oo"IIllhlol..., I~ IIllUII\1F'111ll111l'rl1llmr::lfI,"" WeIll "-1 nllllddendlllUld ~
!'~III DJlI1'1f(cn.m\llhoroto!br N1d on bcfullr nfBroltorwbolo no~ (II connia:~ widl Brak=-'Il fl811hl))' pnwll<;!LlII ""cJ f"I'l'",Mcd lhllllha ...1\ullllllldulI'IlVnlV'cd III "tK,h.lnu1.'llDclilll'
1111101 1_ Ihllll 11101 dr::~nlllcd fhr ....1I:h Ill1nMClh~Q l'1I' flCfVl'co by Bmkr::ll', J'TfOl'1<l olltcrhl1J' '1110 lIllY mleh ",<oulm...t or I\&l'OL'InCl1\! $Ill ~rmI"ll "hldl cklonuh,ltllhe II........... IInd
11JIII\nGCInonl fl"IDUo..... ofBmkor, . "-.-1
10, g"r'fIn fI,", Om~~ltUU I.to-Cllf'llllfl1C".
SaIMf'IO'/\<<m ",lall r;ln~ont.tc fullywllll :BmkCf" In ablalllh1g'oml'f'lIlIIld LlIniNdDrlIl r::nvCl"llfrC /111111 "ll\lUlllt. ,Iud willi doducllblt:, MlIllllllin,'"lllmc io elme hll dt"tcnnlnCi'lJ tIy
Brokc1-. S"ld IlJnOnlI1r;>1;1 "h..lI pmlcl1:l 9101~n ~rlllQ.lhlbllltywhroh,'I'II!Y ...1_ in IlI(Inncclltnl wilh IIID <:ell.hv::1 or SA1""t''''''QlllIIIl\Ill\CltlvlI rllll! f;fIlnl.UvCl1I1C:C', :lh.r" ~llQ
or pC1llole" 1Ilh"lll:l~loll'l an Ondol1lQlIKTIlnunmsUrukc1r and 1Ill)f1lU'bfIlrJIRfll;lll ofBmkcTNi Nl 4ddrlll'llll\1 huu.lld nlld IIhll.lInn' be /llIttIllr::1 "t<lNI~I"lioll r::~ IIn" 1I11I1hn~'1
aft!:", llO} &)'11 I""nr....Tlt~.nQIICIO 10 DrDkt::r. ACQI'llflOO1Ig flf,o;nld (1\11_100 IIlmll 100 dof1Mlt~ wIth E.mln.>r ml r>l' h"'k\tc III.. ..(feaU"" lkllo .lId 11110011 "",wwnl dR/a ofdl'"
A~IlC'J1t, TI~ ~lII4t.1fM'd 'DlI'oInJnoa: flhflll be r,nJd plD'lIIlllld klllllClwrlttcnpollcy QrBraka', or,llI Ihe- ~hRrlIClC" IhWOl'lf, lIltc:lI ClI1llI "hl\11 hit b..rr":: by BmkClf Dlld Snl~FKl1'..,n
1111110; IlGlllC pcq"Ior(lOIl M lhoywo,.ld normnllYII LlU'O In II~ lI~o,"I~lou fOMulliny frollla UlI1hlQ'fl....dflQIC"-f1fn lH'cot>t:rly ~ III,..,t (nr11l IsI 1I1t.1 Slll~'''p~'''''tl1l CIl'r'lIl1i""'flll Schclll1h:.
.
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Received 11/28/2005 10:44AM in 18:24 on line [12] for 4659 * Pg 19/33
11/28/20a5 10:42 717-761-ag23 JGR ERA EXEC
PAGE 19
1,1. Lbtln/lS. CfHltNttQ. CrN'rt.flt/I'MIhnc.,Rr!tt.tH'fb~JtIP",."r~
SIUCl'II'OfllOf1 aa<<''''' lIult Gny and a111".I"8l' nfpmpcrty, apay ll~lh1,.m,d nIl JlQI(nllalllkon il\ DlllllIL'Clillll with Illu rclll eJt141D bu"'ll~ 1Il11111 b(:I ill IIlD 'mll~ arB"'1kc..'T.
Uilllnp ondnpDf onl.llmolR "loll bel rncsdwhh BrOJevrwllhiu tWOllry..lbtlt('Z4) hcru3M\CI'~J'It by Snlt:~CBl.nl. NIIIA1I1IB~I."114.'Cllgylmllltll&lllllllhnll banlld n:m~u 11.e
tncll':Iulli1vnrmtP'X1.Y or:a~. AllllorNl\pcmdonoa recclved" oapICllnrclOrTOlIflond"'lccwrluc'll, fllo.tR. IIl1l1u8Innmnnll~111.I11C1na,.nd", nlli!I\ T'IKlIOgrupM. I'CJWIrtlt, lQ'glLlllnh~
iOl\l\ GCIXRIIllln" 'nftlnMllou, And any IUId .11 clhgr iMlrumcm~ OOCUll\Ct11J1 nr InlhJll\lllUon nf llllY '1ft1Ul'O \VI)tlIlIOQ'\l'a" gnll""llll' 11\\l1l'IJDI'mll'l handled by Broker or
SJl,fcarCflllnn, nl'" .,Jolntly, DJ'C: and ..hall J'IlIIJ1l1ln lhv propoon)' ofB~ provfded lhul S~I k'I vnl!llel! Ul n 1I01'lY nr"llgt, Inlllru,"cuhl nlll.! In(onllllllm, upon r~lllble
RlQvel'II. tloncol''lIIn8'''Y trlull'll'Ielfnll In whillh hllf1tho ill pGfW~wly Involved. i1lC flD111~ JII::rcln 1lIU111111\1ll1.1llly .Ilpf1t'Pv"'lU:ld I\fP'GO \11'lC'llIIllI Gan"'fIl'mndl:nco 1Mt., Ihl; nffl'el: or
Bmlmt pmainl'l1J1' kllnlmlDctlol'\ll handled by SaI""J'ItIfftOn. and .holl fitrlhcr llB'"CO an Iho (onm In 110 \1/1...\1 ,llld Ilia mmlelUn gf nil cnlllt~l_ I\lld Illllcr fbnnll before Ihey n~
JlfC'IOlltod In ullClIOt llnd c\'''lnm''''lI fur IlIllnDt\1ro.
11:, Dt!pndl.f. .
All dcpmUr. n:cdvcd by SnlCllp;P11lOR In Iha OOUI'1I0 efa. ~ ClIII4Ic It'JU1fRlctioll arllllynal'lll"D l'l,,,11 bo hnllluJIlU~ly IflInllJ'orrod 10 br~ fhr llellllwll pul'ml4nlln 11Il; ^~. UJD
kulClll'lud Rcsul~lonll of Ilu~ Reot a.1o(~ CornnllMll'll'1 IlQd tllQ agrocmCl't1 nnlle PMlle:<< la rl~ thl.nMQllOlllllroviclod, hnWl::Yar. Ulnt any doIlnlll 111 bl;: ItInhllolnad by m\oIlKl'
bJ-gkpr ofn;QJrd punN5lnt to the Ac:t. JluIOlll&rld J<.clUtaliOlIll OrdlD R,Qnl &talo Cf'IIl"Il1'\i""'ml I'nd 1lIll"CC11'lC111 of lirA' l1orllCIIlo n ImllMllllllllllhnll bll. hlllllcdlnldy ITnlIII(<l'tTcd In
$\Jell' brtrlcerwilh Ihcappmf'lJ'la~no~cc to lheflm'/l'Ml trlftkftlgllUdt ckoflOllil ond 10 Bmm.
13. rntf"",nlflcttt/rm. .
SIIICfl['IOnl'OII RlIllllndom1hll}t Orld hold BrokDl' hutr\l"", ftom I\JI')' IInd nIl D11I!n~ cllfIll'I.lIDhiHIICl\. nndJ1ldUl1K.'l'1Ill. 11lI;::ludil1B ollornl')"1I (1.'Cfl, 1Ir1111119 rr"I\I.thClllllc:olimlnll'lt
rocklCM lIdzo! of Salc<<porllOll, m'" ncL. ClW:lfdc .ho *,opc Dr SGlCllpC!TllCl,,'t1l1\lthorlty. WI,eN Uliplioll or j\ ditp\l~ ilnl'lCfl IMlllolln'lllllB' n ltlllllllla>llllll III whll::h SnIQljlC1'''''1Il ''''''-'I
Invtllvoa,. lhc:p.IIJ1ll:1l bamlD IIhuJI mutuolly COtlr)flnrl~wltll CDO!I Diller. 1,\ dlllPUk:A orlillsnllon wlteTI:: lllcrn l~ II cllliln to tllc IIftCclll1n/ SIIIr.1lJW,""IMllIM tIl:llr.-d j~lll;ntfLIIll1lly I'Ir
J't'elr~r m- U1JWdo IhollOOflO IJrSul~n'lIl'1utharlty. SuI~ iIlhl'lll bt=r Ihe 00*1\ o><paul'l:A nud.Ho.bCliIiCIIlllclur;!rn.J\lcl,;tuenM IIlld nWlInlIr ori"inS Itom lhc dlJlf'llllO
DI" UUalLlIQI'l. In d;~'fl;tl. aT Illi.,uion ",herD Il~ 11I.a olaim to lIIg cfTm IJIII1 SlIIClllpc"l'l'a11 bOll acted 1108111;1:"011)', SlII~fX'1'l'hll IIh0l1 IIIIIIn: Iht: l.o"~lll'. l'l<IlC.,)/IC$ and tlnbllllfll"ll
illCtudlnD'JudgctlOl'll1ll enrl nwurdR arIl1in. bn UIQ dillputc nrJlllgo.liCll1. S\n:h Ilhwinl IIhall be In lho IIlIUlIe rrl1.Jp~l(Ju "" Iho dlvllllll'll.ll)rl:()flllllhl'llllll W,l.. rrr wnuld havo b~"
(wlln lha IIUqjQCt lranMCl;C'J\l. ThO' Ilbar1ng ofr:tIW'-o axpr;nllUll" and IIAbi1hlel'laln:l1l 'bel wltl1o.tt ~judic:e-l.\ D.r"~'1I rlshll'l of IndClIlIInQMillllllllll:'lIlIlhl'Tll' hfl.1 b......,1 n n:1I~n
tron aflbo IndcmlifiCiliiol1 luuo 'bctwoon thO' ~IIClI'Ih~k1. Bmbrllll4l1 flCllXll elrulllcllo r~[ l!mker'fland SlIlollrc'fllnll',. illlcn'~lllf lIll/lIllnlhlll will, .:...."'11 tn1fllll' bYlbe
]'lIU11Cll'lln Pf"OJXl"IOR llIIf I'IClt fbrtlll\'bO\'tI pt!:l"lIIi"ltlEl tu Ulg Ilharlll8' of core... . .
14. Trrmlm1l1rm.
Thljq ABrcCft'lc...., Ilnd. the rlOlDlIQl'lllhlp cran(cd hgn:by. 11\1I)' bo k:rnnlnDlcd by cIChCl' Fnrt)o hccctn. whll or Wllll\1I11 CflllllO,. nl nllY IIl'1Kl \lpiltl wlllIl:lI llllllc/:. Upon Il:=nlll/lllon.
rllt nt:g[)lil;llion~ GOnlmclli::l;'d by SalCIIf'lOf'oClhll d\lr1nlll1c lonn affhlfl ~le'llt lIhal be hpl1~lr;d 1l1mll;h DrnkllT I\lId wllllllUoh l\IIllll'lnllW lImlll.mlpl:mllml by SA1CltpOnll)J\ all
ill ~mlnblcl,"d'rltho OIfTJ\1'1f\111l1l10Qll ror lho ,....nlrx::Ur;m of Ihe ltil~lfI gflllQ (1ar1ll:11 In lhe TC'tII ealiillOl trNlIUlc,IIllIII In\'lOI~. SnlL"'penllnl.IIJlllll ICl'mlnnllnll, jIIhnll funllllh
])rgm witll A lklnA f'idQ Ufll of 111l f'l"()fllf':JiXIlll, ItTodlr. IUld }'1r'O'lxtl;rlc Inn,~c.tiOl1I1 dl!l\lll'II1(1<:d by SnlORpe'I1IOll I'" wllll 11111111 Cln'I'l"C1'f'KlIl.kticll nu" FlllU'lIl~llll1 dll:N:l'lbcd in J"rm.
gnJ(1b 11 obow, wlllillh 111'\:I dOt"lnoolg bll tho pI'OJlCl'1)' of Bmkor". SllIll<<fIC"Irtlll\lr1hQC'I\jp'ClClllhdl UJ'W>lIl<.:'rmillollulI. nrln r\lln~lpnlinlllhcn.",r.II~lrdu:_Wrnlll)1 r;lrn~lIb 10 !lilY
pc1'lIlIt\. finn. CllITl[JlU1)' fir COf1'lC\'I'IU'aa\ anp;Cd III 1bol't:lll _lDto 'blJI'IincM IlfIY lnfnnuatlml' IlII In Bmkl:"t'" CIlC'lII:o:. Ul\111~'\Illlt'l1l. rrnrerlll."ll. rl' Cl.!1l 11m"" o( n~SnllnllmPlll<lr
Dro1mf'" Jlollci~ tar f\::'lallul1f1hl(Nl 'MUI allor:ltIl UlQ OU:.lQlllcnr 1101' AuT olbr;r Infnr1twltH. DC>11C"'mrllg f:trl1kl.o... nudlm- lli""lqf b\1lli11C., SnlCl'll'l;ll'1lln Rhntluu(. a.RtT lennhlntl\ll1
orlhill AgrDCITalt. or III COI11~t1pllltlon UllmX)f.~ ftnIn Ibo nlOll _1m,,, lllr= a moo arBmkillrlUlylIInl;rial/\ ~ln. JllIbllDIIIfOlUll;Urn:llpllIlll,ml:l:. t11C11 nrblfnnu,'lfOllllllll
Or properly orBmlrnr. Snlll"llpCrl101\llh411 he I;tltiUod to QIlP'UII ofor;Jl'\ab,llilll'lUlncnlll JlClr:lllhllllE 10 tmllMt;::II(:II,.,u whh;h Snh::iIlJ1erllrl1l hM II 111...1 n.le Itl~ l1I' f'C1'lllil'lill&: Lll
cnnlil18'" OfSl'lbpQl"llOlI,
1.5. C-1I1,l~1lfIiUI T.ttmhrr&",
UJX\n tlmllinaUan.. SnIQlPl;l[l'nn.1lI ~ n(C&'lInm~lUl)' IrDllJl8cflooR WIU:TCI II .10lt a(lIIlntd c,dllla hll/Ill: Iml1/1l1l:llolllulIIl'Inf..:.lulIl'll. "ltrlll. IIRCT lilt> ..loi<llll! orll\K:h
IrNlmcllon. bo paid 10 S~~witlllhc I"n'I Cmlt'l11iMOn S~hocluID", qffcQj, IIllhlillllrlC nrlenTllrrnllon. "tbero wl1ldl bl; Ikll110lud rmlT\RINlh 1ll1nrv.lll'lw
~, a IIt"I'Victng lIhnl1lO ots .. or I orlhcomnuhl nFlho IIlll.hl&:l\Jldfnrlll1lllfll CX1l11llllMlolI. wlllcllCWCI' 1.lllall~'t. Na g~lIl1lT1l.wan fllh~ 1I11Ul
Ibr IhoRll- (1f(')flOl11M nil which 011 q;rocmcnt hrue \rQeu "'Qttod a:lld ~ In wrltlnl by IIle louyor ond IIcllw elll C\~ bA'fn'JQ trmniullllClll ..hill! he <mllcd cnrued by 5AJ"'IlJ1<:'lllf)II,
\IulClllll o'h~ DA1'r:ed 'n Wri6"g. llkcwillo. nto tllJmrrM""ion n:wulllllf rftlln lIK1UNlni:' far n:ul. M the ~\tnl ofJln~fIL"tl)' llbnll be pnlrl hl Salt'llror.111IhnQUilllllClTIl11nlltlnl'
,wflll tho CllCOOpliml of lX)'ml'liAllI~"" n:ri.in, ti-oln ICIlIl~ ftJlI)' p)tCC\llQd prior.o 'Cl'minallo" nnd (0 Ibc II'ItI~l1llhnllW\lle JlnYIIIClII... ArO ".'ct'lvl!llllllllr l'II<:rmiIlDlI\ll1. SnlCflflC11l1"l1ll
Illm\lnol,.'lll1WCNn.llharo in Ihe cau.nlMIOM pa)'ablo in 'ho rUNro IlfId tUlIIC!d \lpOll Ihl: IctVIO (\1""1'11\1 nr lel<U~ fJlJY1m'IIfI "(\1 yelllltl:" mid pnYI\hlc
ll'i. rt!wnJ~4tlfl" PNJ~<NI1lNI.
Upon IcrmiNllital by cflhcT JlOrtY. SalCII'CI'.llml alUllllmlm:dI"lcly: .
...) rnlbl1llt IIICltc::r af lonninntiDll wiU1 6 conlplcrl'uoot'l''I'Intlnl or <<UT'lmiMlmll\ li.dlrI8,,~)d buylill' c:lj~lIl~1
b> ....l'1m a1111U'f11'11ic:llo ollC:"\1L'o\1~mgr-...~ 1I1ll... 1my1l1U11l OoIjJ\llTlCl~W Cl)nllfdared pmp:rrl:)' nflJrokllT Jlunlllnnl In Ihe I1mlliR'Ollll lit thlll ^Il'(''<.''lltcm!i
c.> lTleet wllh Drakcr tor JIlIpOlllOlll ofllUO'lqJ111I&' 10 ntutu.aJl)' "sroo"'ptIn n finlll MClOUlt.ll1l8 of 0cIn11l11#J1I111' dll~ alld l".aynblC;_
d> ggop;:mlc 111 dlo tmlifiDIIIlCm gflllQ RcnI EIllaio Cftft1n\I~l'I'I\ roFdlll.ll dKl I.ol'mihOl'itln rrf the ~lllllmlilllin of Bl'nl(~ 4l1d Snll;"flplTllnll.
17. AmU,..tbm qfDJ.'>pfltll$. .
DIMlIrt'C'lnetllll tw di~teII 'pct.'~ S~c.nIOl\ ancl Bl'I'lkol' o(\>g!WQI:'lI Sal~cn and .a. ralll t'o'It.alc 1lC:C:11IICl; IlIIlll<lclaled whh or cnlllml:lcrlln bnlla.", "lid wlolcfl Ot"IRC nUL
cf. nr ill 1:m1I'I;c1ioll wilh. ttu: ronl CIlb1to bunl1~ D.,d wbkh ClUVlol bg AdJwcli:d by Ilnd bcrwocn 1110 JlN1I~... fUVQlvcd. "hnll bg lI11blllllled n.t Plhllrulion in Acenrdalloo ~Ilh
Nt/llle xrv of lho C'Pdc: o''EUll~ of 1Il(t NDflonlll. /u:szx;11l11Dn (l rJlEAl. TORs-. By ll~11I AgftItlltlOllr Mid IIrbilrllUtI11 Ihall bo lI1amJllltlt)' /111<1 U11l1ccr Dnd Snlll'lllflttlall n~e
In J"'C'I'Y'icJc:t1v..,;llcm nSJ'ODSTlcnt ltllM ItIOl'I.I f\l'IIloaJnhongfkEALTORS"'AIl ,"eyboJ'Q(flll~bY"'lIld l\.'IllClctllllrlll M n gandllloll pn:ccdtllll" nrhllll1llnll. BfaktTllnd Snll'fllpcmll'lll
n~ Ln be bO\lnd by Ibo dg;llIlioo oflhc .n.llfDl'ton j'u"Icl 0'1110 IflCollll'l11oo'atlon nr Ihc PcIl1lN)'l\'Dlllo AlIIIlK-IRUnn IIr REALTORS" w1,I~11 h"", c'Illt'tloli'lt'd Ihll dlnpulll nr di~
OWllClllC1IL The OOlldllCI gf UlC nd:rrlmllm, "llIul hD gavamcd by llio Coelrt tJ/S:lhl~_d,~rhl'n1lir"j "''''III'l~i maM rl::CC1t1ly Iftlhll"'I"" h)' Hlol," Nnlionnl AJiIInclntiOl1 orJU::A't.r
TOR.SIC.. J1I'lar to A"'lltrUil')l1. 011 mn~ by lltg loc:DlllIllIQGio.Um1 hr;:ari,la IIIc. dlrtpulc.
IR. Am",tlHlII"lt.
Thlfl A;reC1ll1;\1 t mllY bc NnCl'UW onlyllY ilK; rwUQlI hereto, In wrlllng.
19. Gt~"""""I1J:);Jtw. .'
Thl" ^1iJI'c:~mCIll"~IlU bo QtI'\"CTlll:"d by and [n~ed P'lU'lllllll'llltllhll' I,a\vw or Iho COllMllonWOfl.llh ofl'...mllll:/l"l$nlu
20. $tlCefi(ftU";f in IIlt61"tU'f,.
Thill ~l:"lllCllt allollll1unJ 10 the bcnofll Md bo blndilla-upcm Ibo MICllCl'lllOnrI in InlCI'CR1 nfBmkcr. Till. AIP".~L'I'lC'1II. hnwll'V'LT. III t:>~lJ nlllh~ fH.'tiUllr\t ,.."....i\lllll nr Sn(l:'fIIfl"T1lOI1
lI:nd Snl~11 J;lmlllml daloplc nI' ""isn 00)' nrSo!DIlpOftIDl,'II riallrllaTdutlQl-bormllldC."r'wi!hQlII thl; ['ifilli' "''I"llIclI<<onlll:"lll ofDmkl:r.
~l, P#"~$~~.n""l
All)' office Jlollcy or ruleRood I'racll'du"", nlll1'1II1111\MV cxl:ltlll18' (If h....-I:llftl;"f Mt1l1lod or 11ll1C1ldod IIhnll be l'lucllllQ: Ill, Iho I'JIIrliC'll.
'2'2. lil,UNfAJlN:wurmt.
111i" A.grI>O'l1lO'1ll Cl.'ltl.lllltul~ 1M f:!llUrc ll(p"Ccmcnt belween UJQBra1tl;r WI" S11IDIIJlC'l1lOll. nlKllhl:fo lire lIt1 1I1P.1:t'111(.'111ll1ll' lDI.k.-r.dll>>dlnUJlIll)1 uJ{I-n\~A>l",,1 hc.-<:'III.
TN"Wll1"~eSS Vo'HEREOF, Ih'8 Aunranolll hQll 'boon ClCccutcd MI (1111 dl\l,c flm nbflVI:Wl'rUcli. '
W""_{~"'~'" Sy ~~~~
~_.-
, '
~~
'-"'""J
l
, dj-
BY.~ Jf, ...
~:,-,
WIlm.'R!'l:
Brokll'T IIhould c::'l',"vn:.lholwriHDll offil;Q)'IOtigi"" dcicI;;rlblng SnI~Cl'\'lOlI'rt fluNlellll oblrplll\1lJ1 wilb..,."..",.,j hi nmol:" ~'I(1111ItR. Ielcplroll<;', tic.. 111,,1 n SnlL""J!t'rIIDlICIl"lIrlilCfCllIIl
Sohedul~ nre pmvidc:d 10 Salt'lt[1CnlOll. " , ,
.
.
11/2S/2e1aS
Received 11/28/2005 10:44AM in 18:24 on line (12] for 4659 * Pg 20/33
10:42 717-761-a92~ JGR ERA EXEC
D_V~K/~AL~r~K~U~
, INDEPENDENT CONTRACTOR AGREEMENT '
C()FYRIGHT PKNNSVJ~ANIA ~OCII\"ON OP REAL"TO~ IDol '
Thi......... .....m...."""'cl..~.~ nor........... ...11I>'I--' 10,.... by~!,.-""",,~~ .....~. oUllMI.lln~ <>f1tS,.,L'!ORS-
PAGE 28
!'orm I:;U-:Z
This Agreement it Mtrlrcd ineo .hJ.
hQn;:;n.,fter t'efCn'ed ilQ.g "BnJker''', .nd
;v;'v--~c;.:' ~;""""'n
. .....
.' Whereas.''swker is ~ncaJlcd 1-.. busl~'.Rtf. It'cat Bstilia Brobn- .~d- ~,~ul/iiCl!ln*~d 10;> ~:a8'l'lSC 'n' 'the ac;tivlt:lc:, o;>f" "BrokorM 011 dallTlC'd by rho
~nn.ylvenla Uecnlllng and Rcpatr.dOD Act, Act orF\::blfUUY 19, 1980, P,J_. .1', No.9, al 'l'!dendo;:d. and
, .' Whereas. Brokcrm..lnuln. qna or m(l"tf:QmCl:8 properly 8q~ippo~ wtth flI*,*,ilhj>\8$.li"lin.~ook. DDd other cqu.iplQC'tlf.neceue't)' 8T1d h~ldcl'\U\1 co tlle
Pf~opct1J.don orllaid business, and lIt.fT~ with c1ak.lernplo)'ccs. Qtl(l b rh~hr ~Q1t.b11t to ''''vft'l$tbq,publkl illS III'Wl1.I oatY.tc broke1"; IIInd . .. .
Whereas. Salesperson 18' duly !il;QnHd by aha Ci'mthdn...,.;,aUh nf ~nlytYaiJl.. ..'a real CJ~tc "lS&'iIles~n" ~'''lU~tc broker" as (lc:fincd by the
hnriSYlv.nla Lil;c~ina: I1rt" Registration Al:t; alkl. wh~s it II dedlftdd to tic 10 Ihe zzn\lu4l.l..dvaiUftle: oCBroll:er nnd S.lbspen:on to cnler thl~cnntr"ct upon tbe
term. IInd conditio.. hminalutl' let lbtth. ",,' . ' . ' . .'
NOW THEREFORE.'fo~'.nd i~ conflidl;TlI.thm.orth~ ~utu_1 ~~nan~~'~t:l:d':P~~~ilC3 herda contolned, the undorliJI:lled he~h)' entKln'O the
fOIl.Qwlng,uotlclnO{agflHlmont: ,,' .......'
,1. hr"""rkld C_INeI_.
The relarionsbip nfS..I....pcnon to B1'Okaf Is (h IItoflln Iftdeponde;nte;QnIMct6<'. J, n P, e,rfom1i,nllth.o IlCtlvi,UOIJ Qt. reallltala "lIolcllpoTltno" ftl!I denn, cd by the Re"l
&.ttlle LJcenllng Iln d Rc:sl.trllldon A.et(band".Crlilr....ten'ed to II." Actj;sllleapenllo'm, ehll11 be F"" 0" todcyolta.uc;b po11lOD orhll/he"t time, OI:lCr&)', efforts' ,...td lki II,....
JlC~/"hiOl"d",""app1"QJlriatc. In keeptne whl1 tbe: lndeP&J'IdlirltEJOoq-a,c(01'statul;S'I...peI:'Sl:)R shall be riapanldb,c for .;wnplO1i:oa .ny ~lnm8rvql.ll-red b)'thcAct
nrolherlnws oflhaCommonWCllIlth of'Pcnnlylvanln; S.lupo'r'lonsball WOTk 01'\ 1Il eomnawicm. ~a.;,il.n4 ~cjVC'nos.lsry, I'rlnle bcnetllll. medi.::aIbanonlS. PIIm-
.lnn boOQCi.... In" profit "hnrln,. "0 Ittlta, If)(llll, un.::mplo)mcnt, $aglll.! Security !)r bUlItncas 9ri'VllClP b;;o;q (wheN llppliellJ~.lc) IIhall b," withhold ftorn Sal"p.r-
Irn"I, Salupet1lon shall pay aU profcasfonal IIceAslna rt:l:ll. !;1'I"OJ'S ana omiulQns InlJUrIlftee p:remiU1Jl5 (~t'.a oth-'It;l PfQvidli:d tnrr.in). multi~liltln. r_
'Ind/orcomputar"C9C'lRI feel, Sak.......onllll.n _I he t~koII.I" _plo",,"'1b rn~I" 1fI. ~ces.perf'ol'mC4lW!ra.lIIdIlrfor..dctnl 01' .tate ~ .,.rpeoN' ..-for
l't1rp.... _"'r d,. Wnrkc-r'. CompenlMlfoa ,",ct.
2. &r_/f.#rnn.
SoJe'PCIrJ1on "SII'OC!..to .Ctlllll il-t'l indcE:lmdcnt~ill c;:etaTC sntaperAOn and sball f.ithriJlly.ltry"ftlty and le8AlJyert8ft1fC billhererrortllto~cl1, ~rQd..l.a'Clo1" nmt.ny
llnd "J1ro..1 Qll<<~ li.toe) with Uroker.1O sol1citildditlot\Bllistinp.CluJllOmors :tnd cllenu. '01' llro'ker, amd 10 Qtherw:l1D promote Uu, b\.lllinon oflllcrvlnl the (luh,h;lln
,..alctt*-tc uelnsaetion. to the cnd lhl!t c'act! oft"'l;I pftnles h~tn mft1dCl'(ve the gm"loIt~fil poaible.
3. omce lilIei"d~.
DTDIcar "hall from time to time rdnlJ:n4l.ta thcomc,= wlrh which 'I-bc Sa1espenon IIh.it be ftNoQUlt.d. TbatoMoc shall beprovidcd wilh such fuml"hlnp IInd
4qu;prnQnt "'I <loamed l'1CCCI5l1t')' (It tho dt~l;lnl\lon ofBro1ccr (I'lr me propcropen.tlon ora relllulateol1'icc.. 8rokersh.11 Make 1I~IJ.blc loth. SlIloIIponIon 1I1l
CUfT(:ot lit:tin1P C'lf thCl oll1cs. IInd aa-rcCl!l, ~pon n:quc:rt, tu ,,"1st the 5a:tl>>penlDn in hblhor wod:. by .dvlclJ. inlt",cUon. and e:oopol'luion,. to the utan l (I",mC1:J
tlppropl'iat. hy RTOkc.r, StlLcll'flcrtonn ~hl'lll pny for IOT1sdiMlIDce telephuneoeh"r'PSand for Auch olhwrorms.equipmfn'l.'> lluppUcalllllhllll b"lIot forth in lIrokCT'1l
wriltort t>ffiOl; polkia,. .
4. A..romeblk.
S..lcop<;:noon Ihall fu:rnl.llh hl5/hcr own automobile: Clnd pe}' flU .-eJrue(l expense' Dna Broke'r shalt ~av..no "'IlpONdbm~ rolltti.ng to SIIIM:plllrM>n'II ..ut!;>rnobil" or
l:nln~ponliltion. S~Ic"f'C1"lon aSr... to~&rry lIablliT:ylnlDh'l'\CC upon hi'l/hQrOlutomobile w1tb minJmum lIt1bUhy)fmiQinf'S3Oll.OOOfOfc.il.:h ponoo;1n .ntl $.'ioo.ooo
rhT ellc;h Kccidenl .\n'" wIth p"()pcny daa\ulID lI~biUty limits 0111I50.000. &th;:spCT.:!Ion"llBtcCS 10 lurnl," Bn;rklllrwitb a C$'tif'iQlltcocrtI1}oIn.compfiancawUn tl111r.
roqui"tamcnt to bo aI"I"CJlIITtod with Brokor an nr l1ofon the cffective dall.: /Sod clleh renewal date nf thh .Aat'emnent, or &1 other Umcs at Bl'Olcer m.y
1"_liIOQftbl;y request.
S. c...._,_'-..
5ale.penl('ln :IIh.1I bIJ ~nt.ill'1ld k1.. l'IhK10 ofchc cammiuIDnIl earned and received by B"tokc:r in l'lOCOl'danco wil.b BJ"Oko1"'. Salcspcrltm CommlhtQn S<>hcd1,llo In
oIT6ll:t b'I1I thadaworthe acI cri.litllne: S,lc:spctnon to III comml8l10n (.... o'btaininQlilting, pllH:b\IJ propcnylmder8.lrelCmcntofs.lc, erc.)or as OIherwlJ;c"e:n:od by
the .,.11100 [n writb1. ...11I to. p~rtll;ul.u '"tIll\SlIctlnn. B1VK...r mil)' alter ita SHIC$JI'I3r'l1oll Commilsion Schadule front limo ro time wtlhout prlOl no!incllIlioll.
Rllvtlrio11.s fOlhe ac:h6dulellhal1 1>11;I immCldlAltJly "ppllcabkl to 1'1\1 t'uNrc lranaJl,gtlnnlll. Tbc,ilvyjon Ofcoznmiulon.botwccn BroltcrDnd Bah:llp<:;rl.on shall (ollow
dcdvctlon orllll flll.'(*hsallIIOCIordingtDtl\c &.le.p"TIOI\ Commi.nilm &l.edulfi1" In no c.DH.Iu:IJI BTOkorbC'liablC! 10 Sftlelipe:'Kln (OT anyc.ommlll'ons Ilotcolloc~
ted. All commiuu;'nl dorived !tom. A tr.t.-nAaOtiol1l1hall be depoalted ....hl. th. 5roMr IUI "'Iulrad 'by dJQ Acn ami/Of llule. ond Ro,:ulatlons of the Rcal EUllfc
CornmlllSian IInd lIubRaq"'lf\dypaic:ll\~rd1"tI to tl'lc 5.IOlpenot\ CornTT\i1l3ion &hoOulc, . Thbl dl.,trlb\ldClU IIlaUtate plae:o allll<'On tiS prectlcBblc "ftclt'~l[ee:.
tio,.., ancl1"ec:elpl of Huctl.oommllllot\l, Jt ill u.ndontood and a~ thHI, the Salc.po-non'l; OJ1ly ...,,"um<:mlltlon rOC' the ;SUMIlIIII beins n;:ndero4 uncle'l' tbill Agree:.
mcmlb che Salo:spcnlOn'lI "lIal'Cl o(lho commhlldonl!l paid by tho p.1"1"'_ U) n::..Il;Stat.e tt~Ut;l"ctian:ll.
G. CJn'lntFu..
rn noe:'Yenubllll B.lcJl~r'lI"n<ch..rp lUlltb.a theoommiallo" Dr reo IISIt.bllDhllld by tho BT'OkIlIrwiihO\fUho prlotwriUen c..mllCTIto(5roker. rrDmkeT .hall blllve
entt::lTcd inlo II sp.cc:illl oontr~ or aarollmantpcrtlllnlPS'o any PllrtlclISI..T tralUnetiot.l. BTOk.e1"llhaUlKlviao SalC5PImlOl1 orlJUe:h Ipoclol olT811gcmcnl,. Ail com~
millsi..."s and (eeJI CJOm II pardculaT trunllllctiC'ln sh.U be payablo In tho Broker. Sal&Apm-ann .holl not bc pvlonal1y liablg: to BJOll:ldl rer an)' commlssion.. not
rocc:lvlXi by Brok_ t'rnm po'In'ic. to.o tR.n...ctjon unless luch nonpa)'me:ru (s the nlfIult ofcolJudon.iQI~t:inn..1 or N'Cklc.. eonc:l.ucL BlVkl,;r shall have the
ellc:h.lsl~ rldu 10 determino wJIC:thet k1 commence li[igaLlon In ool1oct a oomm....lnn or rce, or 10 leW<!l .any Ql.,im for the ..me.
1. ,EUtI~_,,:n-.dlt"..-ocf.IIf_
SlIlc.pm1'IQn and Brokc'r ~h.lll;onc:l..C\ bullln". lmd rcau1aHl warkinc:xheduld.l "" a. to maintain and IQ h1Q1'OB" lheaOtXl. will. b\lslnC&S. pron..... .nd n;pllllltiOn
orBrDk~..nclS.JClIpeTlIIon ftnd oal;h n8TCc. toc01lfonn to.andablda by all111_. T'Ulalllllnd rc.auJation... .nd code;oC.'hk:1 Ihat..'l'Q bl,ndin&on.oT IIpplklablcto., reol
cffete broke.-- ftnd aale.tpMRnnl. S.lupenon .nd 'BrokerlMII bo 8O'Ycrned b)' the Cot:Ic OrElh~ ...rthe Nationll!l Alis,OQlillion otREALTO'R.~. ~he AcL RIII~
and Rd&ullllioT'llllo!the Real ElSwwConunlatloQ. "llhe SAme ml9yhr. f'rom time tgtime "....."d.o1 o;>r....-ppl.m.."r.a, zhIl'CIGnll~;t...t'Qn ftndbrliDwllnrllu:hNtil .....o.lt...
board (ol'lluch C'llhlll"I;"xud ot'aslllocl.tlon... may be as reed upun). .nd dlc nllN an<l.re&:I.lIaUonso[lInymllltl)"llell.tlftlkrvicc: with wll;eh Brokormuy now or In
lbe fuWT8 be ..mJlac.c:l. DTDlcC'"l' ..nd s.a.ICI~nnffl .ball rntah. mcmbenhlp ill,;oDd ltandb,* wi~h .heNaUol'laJ AuQchltJon oCREALTOU-. tilc Ponn")'IVantll
AslochUlotl. IIf R.~AJ..J"OR.. .,,<, th. Jocal realty board or "~"oclat1on d~slan...~d by Brokol" 0.- "'0 '"ft)' bllllilKnsod upon by thtl p...d..... Wh.nclvaT IlIrok~r ill 0
mCmbCfOfltJlY rl>H.l 0"at8 organl.alfon whieh l"ai.luil'<;l mltmbg:nrhlp ofBaluapcr"Ofl In said ~nhl.tlot\.lhon Saloep;:non aa:r-thal hO/lhe shall hcaomo II
member and PIlY rOl:" OT dUel raq~'T"C!d by such marn~l'lIhip. Brolu;:Tiuld Sole$pl:1",t;Qn ftlrecto~ boun<J by the ruJOIl Rnd re~lotlcml orluch Ot~..ni2adon." par-
,,"Inln.toelhlc:s and l(and8rd~ orconduC\end pT(lCodure. Salolpenon acknl'lwlc-dsOl polMClMion 0(11 eurrentC<1p)' Qfthe Pennllylvanla Real ~lI'I Uce-nslllA
.nd Real.t..all!)n AGt, tbe RLlla.. 4lnd Reliulotlona or IIl1c Pann"yIVMi~ Rellll I!lIl!llC CommWls.on. .an,[ the. Code of Bthk:ll or 'he NnllDOlll A>o~ocjntlon of
REALTO.~ ao'" 8P'Cc:I to be appri.::d of [he provilionl tJMre.nf I!IO that Stdeap..nnn will (lQnduCI(..1I l\otlvi.Llea In . mann"t cQnllblcnt wltb such '""'" and
etM". ~, . ,'. , ' .
.......i:("~Ii~U.fv.u;;._,..i.bWs..<. ..,.
5o.ll!llIpr::Tlldq ,hall pay lh....oatorilny real .ltatO lio~n""l'Clqt'tred h;y the; provilionll or;rny l",wD'I"TCSUlauOfl oflhc:CommOftWOllllh ofPcnnsyl\llllnia. Slllollpdrluln
sholl f'un:bur.enaun:: tlult the requl.-cmcmt.t for ticcnal.lTe.. a real e;at.to 1Il1611p"'~n by Ib-Il Commonwc.Jth of Penn.ylvoni. .re ..tidied in ClVCry Nllplll.lt. ine1ud-
ins 'the \lm~ly lIad..,rilction o(mandllllOry con!illuina edu(1l1ll~nat F8qUln!lmanfsi. S_I"lOpo.-.on IIIhall ".)' aU dU.I Cor 1:I111mblllrlhlp in the M.lIlodtHionJl Hilt fortb In
'''''r,reGCO:dln,Q: raOl.&nlph ortlll:lI A&reemcnt ID<< flmely falih1t)fl and.hall pay aU ta~M.. m.y be Jev cd upon Income or~uCtivil}f by chll! fedcrol $r'lYcmmcml.
the ntcm.l Rl:'Ye1\uO 8ervicc. IheCommollwu.l~ OfPonnl)'IV'8'I-'I'Ili,I[W",n)' lOCAl rnunll;JpaUt:)' or_hoot dlollridnr-Rchwsllc:h taxlns lIIuthorll,,1nalu(llf1j bUI nl"lt
; lImllilld to inl;orn.. tiIIJltlll, ucl;vpatiOI1 and occupation priYl1qe "':IUII. pCI' !;f\pi'" 1..ll,Oll, mvcaT,ltilq OC' bl.llin~" prlVl.lc:p \all""'. ' .
'I 9. A.rltori(y fn ConrnicL .. ..
, SAlollpci'l"llon Ih..1I hillY!!: no eutt!orlt)' 10 bind. obUalllu,oTeommItBT'Okcrb:r any pl'nmle<;: or rcpr'Cllonc.don. unlc" spC'CLnc:.aliy lIulhoriz.cd b)' Broker In wriling.
I provfdo:lli. bo"""var. thftl SalcRp!:TlIon shall.nd l" hO'reby lIuthortZOl1 tt)OXccutcUlIti<'l$..lJtl;cmllmtli. b"'r~aa:oncyl3(t(f"l\c:lI, lealloO mill nap-.-.t"onmtCI., 0Jl well as
l_lllilddQUdll Anclllgro!;mCl'llS oppUn!;nitnl Ifle1"e:IO ror aJldQn behal/nrBrokcrwhl!>rc not in connletwnh Brokvt', apn<:y J'lJ1Io1klllS ana fN"ovk\ed Innc tho oolnmu~
lIIicm involYed in ~\.Io:" t""nll.gtio" Is not I",,~ thaolh.I de'Q'l'mlnad 1Q"t ~IQh tranll."rlon PI' SG..-v.9C by STOker. Prior lIl'>cntCTlna: In..... H.n)' such llDnlr.C!( a" ....".._
I men\. S.lc"pon-eon ah..lI o;lotcrnn;nc lho "'Pn")' ..nd mftlllf5CTnenl pr-DcrlOCil of BrokClT.
10. EI'nHIl.fldOQi",'lQloll.,r~n".
! SIlICllll'l'<:r'lIOI'I *h.lll;ooper.~ .f\Jl1y wilh 9roker in obnllninQ: eTTOnII and Qmml~lcrnt eov.::raee in All amOllnl. and wit'" deductible, 811 Ihal1 (rnm Itlll., In 'Ime tofJ
I delOrnuned ~)' Brolulr. Said ,alun.ncc .han protect SillqpCTIOn _sl1inst Uabdit:)' Which may .rille in I:Onnacllon whh tho: !;(mdu~l OrSaIOlJ'Crson.1 01'1 'llj;'llvc
. rafll e.101o lie;cnlll(l. ~"idpoTlgy orpolloj_lIhllllcon~.ln I1n ItrIdQf1\Cmotnl n.mln.Brukcr",nd .unYlluhlll(lillri_ a''f.'IrokerQl1n addltlon<<1 inlunlrlanctlhHII nOI
'I bCllubJccl 'Oc;"nOCnlltiOn ~cpt Odlll :minlmllm orl~n (JO) dl(lY' priOr writcen "odocta,8mker,.' ,AocrtllNtltcof .ll1lh;:llnlUranec Shall be dcpDtliled with BTDkeron
1 OTbcfbrctheerfocriv.date.nd ...ah TQJlcwal c.lK"~orlhi. AaN<lmant. TheClqlltoflald inlluranct:Rh",n be p.ald p\lnnlani ro lhewrlu<:n policy orBI'O~T.'I.'lr,Jn the
I ablanoc chcn.'Or. fluch OO~1 ~hall be hcuTlo by Brnkcrllnd S.fClpllrllOn in the: Mmg proportion al thaywould "....no.ll)> IIh ,,",In U\~ ....ommtrsinn T8$ulling rro.n #I H.t-
,Ine Itnd talC! nr n 'Prop.rC)> ..~ I....", r......h I.. II,.. ~..l....p.,..n" Cammlutoo S..Io.",1&,le. . ,,~,,' . , .
!
.
.
Received 1'/28/2005 10:44AM in 18:24 on line [12] for 4659 * Pg 21/33
11/28/2005 10:42 717-761-0923 JGR ERA EXEC PAGE 21
!lilll<!'p"t!I('on acreei 11\;11 i1ny~nd- .LlTl'di;;Paj.;;mf;~rt~:;ai;.;'c; ;~~';mcnt..lInd an..ctlonl t.kcll; in.cnnnectinn with the 1'(;111 <<Itllte: bu:slncSlt.shall b.1 in tbe nDllltl
nrBT9kqr. U.tinp Qn~ a'C1n~)' contnlg~ "ban be f11~1 wtth Brokc::rwhhin twenty-fbur(24) hDUT~ .rioT feeCllptbyS.IC'lpgnon. ^lllIsUnllllnd 1Il~!:)' Cl)n\rm:~
.-11"n bo and remain lhot excluli_ r~rty oflJrqkc::r, ,All ,"olTWpondenco f'Ocmvcd, oopio:$ ofcOin:lPOpdc:nce wrlnen. pIaU, llo!ldna:, tnrormation, memor.ndn.
files. photograptlll, ~ l/ilpl opiniona.accountina in(onne1Ion.and. /Ill)' and all othortnSft'Urnentl, dbcu.m.ClnIJl or;nl'orrn.don ofaD)' nlltun;: wblltsoc...or.:onn
cer'rtin& IT"'nHolian" h.ndlO(1 b:y Bf'Okuor SaWpcn1IIun, or jcnntly,.ro ",nd .hall l'CltllaiA lhe prof/crty ofDmkcrprovtdlXl tJult$.lQ1pcrson l./J entitled toa l:i0J3Y nf
such in..tr'lnnanb IInd lnfQrm~tlon upon tcItl.lan...blo nt'lu....l Qoru;:c:ra;nc any tran'lWlion :1<\ which 'be/ahe Is po;nol1nll)' lnvolvad. The '{I.nics heTOt<\ shnll
mutually&(lpTove IjInd IIIi!I'OC upon .U colTetlpondcnaa frolT1 the office of BlI'OkM I"lilrbll;ninSIQ t11lllnalW1lonl' ha.ndlad by SalOll~on. andtlhllll f\archc.rrftcn:c on the
fonn. to he \I,cd And the C01\tenu; .~r..11 cc:mtracn and other r~. baf~'m:I thl;Y "-1'1;: p~cntod to clienU and (;uIU'wme", tOr ..,tlnllh,ll"C,
12.. o.po.It.. ., . '.' .
All dcpolrifll tscej...ad b)' S...le"pl;"f80n jn thecounleot_ roll' ~T.Ot~ tnmBactIo,s orln\)' natu:rubal1 bl; tmmtdlaccty transferred co Brokof .fordept>>h punuant to tbe
Act, the Kuleallnd ~latlona orthe Real EAtalaComm;ntonancl tlM a~mont Mthil plIrtlcs to the rrarulllctlon; prOvidod, hnwcVQT, thflr nl1)'deposh lobe main-
IIln cd by lIaathorhmkc:rofrceotd Jl'lor8u*nt to Ihe Aot. Kula and 'R.egl.llallnn. of tho oR...,,1 B8ta.le Commiuicm iliad IIIsraon:nmtofthll; piu1le~ to a cr.nllliU:ll~lln Ihtlll
bo l:mmecuut41y tnonllfCrN(l1O stach bTnkm- with the .~t'O'pdatol ...ntieQ fQ thl;l p;non makil1lll"Uch ~it and t<;> Brokcll".
'1 ,.,,,
'13. IIHl.llMllioallo..
SIII<I:lllfKl'1l0n "hn.l1lndlllmrtH'y and h~ld Bl'Okerhannl6&t ITom II">' and al'h:lnimi,coatl.1Ia:hllit1co..am:ljud.men", includlq auofnq'lI fcclI.flrI.rina from Ihtltnten~
tlona! 01' tecklesl'l-aotll nfSatll;l.lpol'llon. o...etA outllil.lathQ JQOPC ofSatnporson'lI authm-lty.Wh/OO thipriOn 0'1' a d:II'putDari~a11 conoem Ins" tranlluctlOtl in which
Sfl.h:Bl'U'Son W.\I iavnlvcd. the pftrrlell hef(l!llIl1h.U mlltLlll1lrcoopernte wltb eaA:h nthgT., )ndtspmaorlirigation whet'fl_thPTcb a claim to the eNbenlulT 5alf"lfler-
Ion hajJ ~ InWTIllonllly Of' I'OClklCU:18Jy Qr ovllldc the ac01>* ~fs..lc$p9~n'a aut!1orilj;Sulupa....on ,!hall !:>~r the- gosta. UPCSUOl ond liahllitictllml:llldl".
jucle:ments find awards arlAI~8 tnnn the dftp\.neorlltlaatinn. In. dillp\l~'N orlltiptiOn whon; th<m:s is. i;1alm 10 Ul~ erIecllhet SLllllltfK'lrllOn h". "gtexl neclllcnd)',
StoIle.person ,.h..l1lJhan: IhcC081a, eXpow"ollall ~nd: 1i"bllttic.lnCl"KHl\.jLld~mCn~ IInd a,.,lIrds aNini rrom thod1i"PQte orlttilPltlon. Such8barih:: .h<ll.1I hu il1lhQ
Mme pl'Op<)Ttlon 1M t.bo dlvtlJon or co:mmillllinn WII., or woulcl. hll~ bel!:"d. rn'lm tl;lQ ~l,lbject tranSlleliOI1. . The Ilhllrins gfeoltO, e~1>tmaOl, IInd lllillbililicll Hha\1 he
withuut prejudlc;:c 10 Broker', ritth11ll nrlnd"mnJnco.t1on \l:l\lellll then:: hflll t>eon a l'eltOlutlo:l\ ()rthtli...dmnT1,i~Q"tiol1 lDUCl betwean the parlllffl horuio. 8wkCTllhall
l!IClcct C:O\lnset 10 reprollllnt Broker's find Slllellp~tllon'~ inta'rlle'tlJ in litigatIon with CC)$I!A barno 1;1)' thq pflrtI"a in proJ'Ot"uon &Il.ot fortn "hoyc (lc"ninlnc to the ahar-
tna orCOIIt:ll. . .
14. Dnni"..dPO. ". , , .
Tltlll /I"Jp1eamcnt, and the rc(ntlonshlp crasted bcrab)'. MfI)' ~.l~iniltcd hy eithcr Plll'rty hqroto, witt:! or without; Q.~Q" flumy time upon wriucn n(1t1~e. Upon
fctl""ln~tion. IIII nea",thl1lonll comm.enced by Sale.pc...on <J\lrinl the tanTi or thl, Agn:CI1l0Qt IIIu1Il be hlln.cIlcd thn;I1Jlh BT'Okt;:t and with ILlch .RflfMllnca "nd
t:Ou('l.....adol'l by SlIlc"t'CTsQn as b realOnA"b11l undC!r lhe eircumstl'lnc.. rOT the p~cctlon oftllelll.L*l"IIl.ts or the p.mc. to tl1e fIll~l Ollll.t<l tr*..llI.ctiunlllnvnlvcd.'
SlIlcspon:on. upon termi,nlltiQn.slUlJl fuml.h Brokcrwll'h" bona Oda U., orall ptnlllpc:etll.ll:'a<J....t14 pt'obllblc u.n..otIonll deveJopoa P)' Sul-reul'>n.. wc:ll '"~ all
~rr(:5pollldoncc and doou.roonla delctibdd in P4T_Mgrllpb 11 above. whIch are tkc:Plcd to be the P'f'OJ'lrl)' ~r Brakor:. .slllu~t'IOfl t\ll'lhClT .poc" thai UpOIt 4r--
mination, orin anllglpation thercor, hCl/~he will 1101 furnish toan)'p~nn. t'rm.companyor.e'!l'rpc:rriittlon CJl84Fclln the 1"IIl41 ~LIIIlc husincu liD)' Inf'lrfnlltkln U~ Iou
Droke,,'s cllon"'l. C1~III"nQers. '(tI'Opll'1lc.. priCo:l. tc:nns of ncaotiationlJ nor Broket's pollciCll oll"rellltlonshlp, with c:1l.anu and CUll~mo", nor flft)' othCl1'inrOf'M.Gll,)n
9Onc\JminaBT"OkCTlIlluJ/or hi8lbcr bUllinCM. SoIIlcsperson sbaJl not, ",l'IcrtcTmlnatlon arth" ~mcnl. or in oontempltttion thorcar,l'Cm1ovC from the mcll m-
from the orrtoe or Broker any mDlIsri",.... t;fAta, pl.lbIlQadanl. oorrclpondoncc, nics or inform.tlon thilt Is proparty of BrOkcll". SaIc;'lplll'$On .1UlU be entilled tn
copIUl <lr ccrtl!lin inslrumeaU ))Cmlnlna: to uansncr!en" In wbiob Snle:Jpchon h,u .. bnq fide (ntClTellt or portllinlng to oamlnas Or.SlllC8~dnKm. .
U. Comml&rioa.. up_ 1IY:ml,.".fIo.a. . ' ' , . , .
UpQn tcrmintl.~on, a.1Cl'l'Gl1Icm'."hlllf'C:ofcommisslon" on IInytrnnsacnon..wherc: "a_k:I~Qn~mct eJl.11ta hut tho Ini.n.llmon JUUlnOlclCl~etl,J1hiln.lIIft.rth(lC:IO'h\1\:
Ofhn,h trtirn.nction. be "poidla Sflbp~ in auel.'lrd with the SlIlOlponlOn Comrn ission Schedule in cf'fOal.t tllo tlmo oftcSr1'llIiD.llodon. TbOTO' .hall be c10ductlld
rmm lIIuC!h sh~ l\O'N,nU'i . ~tn. c:ba~ of:t 01" _,. ~ftbe amount of tho U.U1l.l and/or .alea COmmIR~lon. whlch_er il h~t\et.
Nn<l:lcun.m1S1Jon 011\01' tban rQT ttwlO proporiie.. on whjQb an ft&J'OClmetllha. hoen :s1ll;nDd e,M AOCaptod in writln.'b)' the buyar.ltcllOClI..... Qn orb<crfore tennin.llltion
Rh_n be: doemed aamed l>ySaklJpenon., pnl-.. QthcrwlK ~.tn wridnS- Ukewi,.. no com:milllon 1Wultlna(1'OD1. ~he 11.111\.8" ron-c:nt,orlhe nmtal orprop....1)'
~..dl bc paid 10 Salc.pOtlon rollowlt\~ lCrmiutltion witb the e1ClCIl!lptton OCOOEQmilll.ioiui arittn. Crom.ln,c.l'ully e1Gllutcd f.rior to tcrminD.rfon and to thc e:R.lcmt
thlltJeallel'Qymane. are roce.lWIod rni<">rto ~i~tion. SfllCllpelllon .hnll not, hO_YOT.",hJlrl; in dlceommil'io~ JNly.blo n ~bc futuro and buod upon IhelcMC
opLlOt'lll or lea.., Jll')'tJUlntl nOl)'Clt due lIod payable.
.16........m..1Iow~ar.-. .'. '_I,
UFlOJ1 1enninlulon b)' eithet plllrty, Sal~cor.on .bun inlm'H~J.lCl)'1 . .... ". , . '. .
a) 'Iubmit a lottor oftoE'mlu.lltion wtth II complete eoeo....uin8 q,{'commll.iQ1V,listinp and buyer o1lcnu;
b) rotum. 1111 supplia, cJlenVcuatomer p"'speet UIU. ">,1 &(lid dAl;"vnuihU conddond "pJ"bpc:Irty qr Brobr pununnt to lbe prnvlalonll or fbiII' ~!,lnt;
e) meet with Bl'Qkllf for purposes uf attmnpting 10 muwlIlly 1I(V'1Q gpon.. fin.al Qccout\tinS of oomml'liona duo and paylllhle; ,
d) COOporlltc In the notlficalion nr the Real Eltat,e Commluinn rC((flrding tbe tetmh\at;An qf the ",latlonlhl-p of Broker a,,;1I SlIlespctllon.
,,- 17. .A.rtJJt1twIl_oCDl6pUre.. . , ."., '...' .,,,: 1 .... .. .' . ." '. '.
Dlll~ilntl or41spuu11 blllw.cl'\ SlIiespor;sonand BrOkcrr,orbctwecn S,!llIllpe.-..:m An,.! a n;:~I""'I4lJc lkon".llociaced ...;th gll"Oontrac:tlld to Bmkcr.lInd which
ari.tQ outo!. or in eonn~linn with. tho: 7'8111 dUltlt bUliIineu.an.dwhtch C8S\l1Io1 be IlIdjulJlcd by and bctwecZl.lhepudca involyQd,lhalUl'alJubroitbod fCH"Jlrbitnuion In.
ltCC;:ordanc:c with Article XlV of the Code,of:Elh\ca; oftbCl N.dODIII1,AaiIO<lJatitm qfREALToaS'l.:' By thb Asn>WT'~n1 flud .r'oltrat[on sholl bo mandlltofy IInd.
BJOker and Sa.l~"llTlM;m asrec to PTo-vjde II. wrt:lton apccment to Ihe Joeal IlNlIOCilldon 01 R.EALTORS".... mil)' bc lf1>quiNd 1;>)' laid allla<:iadon .1 . C1ondhlon
prcc:~donl.1:O arbitrlltioo. .Bnlke.r Dud SaJe..paraon, .lJNtI 10 be _bO;tand '0)' .the docisfon 01 thc arbltnltipn panl;ll Qf thc locel alllocilllion or lho: 'Pcnn.l)'lvL'lnla.
hMociallonofa.'B.-\.t:rORS- which bQQlllc:;;rtaipo:d the cluputll ordhlllie;rcemcnl.. The cOMuetofthe.rblt.r.tipnl-hall beSo'w'en'lcd hy d...CcwJcofSthic, .lld,
^",Jtr.edOlJ MiIlnr.lld lJ'KIU TCleenUy J'luhluhc:d b)' the National.AuaclatlQn or RBALTORS- prien' 110 .....rbilTaf'l:on, a. .&Mt:n\ded b)' tlle lc;>Ql!Il anoc:iation
b~rin. \ho dUp'\.lta.
115. A...lICfnMnllJ.
TbiG> Acr-cemont nul)' bG um.mded onl)' by lh'll p"lI"liclI hcrcto..tn wt1drl(ll. ,e':
i'.~t'e""Z..... ...... ;,.... ',""';',':'~""'. ....
Thiil; Asn:emcnt I~n hcgovcmed by o:ncl in~fClild PUn"UQr\l tCi Iho t~WlI o(lbeCo-.;;ri?on~ealtl1 orhnall:ylv..~". .
ZO. S~nlln'''''n:7It. .:\
Thill Ap-cemertllllhaU inure to 'h.. b""l'lfit and be blndinll upnn the 'lJcc:euoHl in i"lc;Ircllt of Broker. Thb~cllllQent. hQWCVQT.t. bll.cl) on tha pl:n"M)n.III'Qrvlcell
ofSalC::IP.cnon and SalC:Rpl;:rso::t ,hall not delegote 01' elllign 11")' OlSlIld'Pluaon'" riabta ot'.~UtiCll hc.n;>\lodcrwithoul the prlorwr:ilCen conacnt or~roker.
2 L ,.PoUq MaD_I. . .
Any officQ policy or roJelI' SInd prooadur8lJ 1t'\.nual now t:><l..ting.Of hal'Osfler ...lQpiW Of" ammd.cd ahflllbo bind ins: 'iJA tbe parties.
22.. EaIJ"'A.~"'. .' ., ,. ',. .. .
Tbls Aarc<lMcnt constitutes rhl;ll;>Dtlro IISfCcment b.lWelln the l.lrokllr .ol.ml S.llI;apclnon. .nd,th~c arc no a/ilfOClQlCnt, OT Itndcl'lt"ndinp not IlJl.p",,8lI'~,
hCl'C::In. ....
IN WJTNESS WHEREOP, thia ~cat h". been tUu~"l.Ilod en ~he c:l.~1e Rrs~-above writton.
Wj~nell'_(orllttcat):
By
BrcJcct
'~,I ,.-<" OJ -' fI
eX m_ ~ .Y7... -*""~
Witm:u:
By
:5alllldlpareon
Cllol'Oker,..,CMIJdonlllUn:llb.twrittcnom.... pollciea dcaen1bU1eS<<lC111peTl'1Dtl':. nnanc:i.1 obUpth;ullI wlIh t"ClJpgcl ro omec."ppli... 19Jcphonc ';'Q", and _ Stllc:l1panQn
omm .. on SchCldvlc an: proVided to Sale8'pOt1If)tl. ".
cxw.., WHll'O. ."'0".... VI~. ....UI.,.e"IION
"._......VAN.iI......._''"'"OHOP''.......19n.. ~
,.,..
.
.
Received 11/28/2005 10:44AM in 18:24 on Line [12J for 4659 * Pg 22/33
11/28/2ee5 18:42 717-761-8923 JGR ERA EXEC
BROKER f SALESPERSON
INDEPENDENT CONTRACTOR AGREEMENT
'I'tII. rn.. ncKIIJIlNlndl!d """,'8J'P'1"'" 1'\:1.. bot..........."""'.... ....1>)' Ilia.."""",", of 1M !'DII"","'.~l.''''''iltlCl._ of Jl6AI.TOasw
PAGE 22
"'onn, 15U-2
This Agreement '".n~~' ~'.""" ~~y 'l" ~,.,..,oo;
hcrelnal'tcrrc'fOlTQ:d.QDIo":erolol1"",Rl1d ~_~
1.QQ ".,=..1\... J.;yy.,/1") e .~IFVrilfY1~
.l'lol'Olnaf'er':re:rcrred 10 U "5"lc~~on",
Wberell8. Drokc:~ A enlUllCd in bu.lnesa...11 RCllll B.nate 8~kl::T...d ill dU")' lI~n.cd' K> engage In Ih~ DCtlvlric.. Dr. "Sro)ce," .. defined by the Pl:.J1n"yIV1lnlll Llc.HIldn51
.and Rea:llltnltlonAcr.Ac:t gfFcbruary 19, 1980. P.L. J', Nn. 9. .....amcndcd,...,
Whereas.lIrukC'l" malnwinll _,.. mQre ntl'lcCK propo;:l"1)1 equlppod "",1d1 n.....nblilns:.. llMI"e boob luid other equipment nco:;css..'1')' and lrx:ldcnl'llll() the ["'fIrer ",",lnTlon
ut auld buMlnllNl. Dnd ~""ed ...nOt IIlane.' GlTlplnyccs. find il'l 'hl;ln=by Wl'ftble II) servh'i' the public: ftlI " ~..lll.mlC: bro"er: 111('1
~ereas S.lallJlC"cm I, Chll)' It~I:",.4 by the- Commonw."llh of Pod.,.yl'Ylll'lta IU. lIlI'teAI .'~IU' "UIMlfIoo/lnOn" ot "a.Uo.::iMe brokoor" 110. den".d b)' 1M P.:lnl'l'ylvlloaia
Lloe:nltn, am1 ~Sj8trfttion Act. And wt)8f6Wl It Is deemed eo be 10 tho ",U~II\d"'ntIIl;a rtf BrDwer IInd Sa.Ic:.:pcm.on ID entar thiM (;(Jl"llract IrpOn too term. llTld "ondltllm'll har1:-
illafur tel rorth. , , " .. " '.' ~'.~
NOW THEREFORE, r~ Md in oonliiWefAtiOft 'Or llUl 'mut~4l oo~iam ~nd -pwrtd... hOfC:I~"aOl\I.l;,...j, t~ W1dcrJ1ll"od hCTllb)' I:mrl1l" il\tothc follawing nmclCli of
asreement:
J. l_"o'ul."'fC~
Tho nlllelonlhq, 'Of Sabpctl(>n '0 Bl'Okm- I. Ih.x of an In<Jcpc.ndl3l'lC OQllnQlor. In pcrhxmlng d1c ~cr:fvidQi. Df III n.'IlIIIl \:lJ""'C ",.I"pc.rson" .. doflnocl by rhc RaJ E3tAtc
Licensing; aM Realt/AltkIn Ac\ (hotwvll'lllftar nlfemxl to IUI h"'<a"), 'alollpcnolf .h.U he lTcc aq dc._ ~lIoh pl)rtlQn (If hbtl_ I.m., ..,.rlJ)', cft'(I1'l' and .kin. II" hol&lM d".",.
(lWOfK"l~. 1A ~irl. ....ILb. tln:= lndclpil'ndcmt aonlraCloT IItatga. S......pcI"tlml IIh..ll be '....,pnllfit11... 1'", aompl~nl IQy 'nlhdl1. I~ul~ by lhe M1 or od1M' IOWI or lbo
C('l/tm1onwealth of p.-fta)"l~b,; S.I_~rVOn ahllll work on. IlDmmiukJn h.ude IlfId ic:c.:.;'lI:C.... ...lll'1";fri".. ~'hs. m,<lil:1l1l--rit:s. p4f1t.iOll b,nenll, or prom .hll'tna;
no "uu., l~al, m,.mptoym'QL SochLl S~ity' lX' t.laia.llllll prlvUll,e .~ (wtlel'll: Ilppl~u,~eJ 11I.n bez w1thh.ld I"Tortl SaJo.penon. SnlnperllOlI $hlll\ pII)' /all )nQfolllllana.t
llcetllam, :r.... 8ftOfS llft4 omtuil)"~ b:UII.ll'IIftCC pl'amiuma (aKClIlpl III oThCo1"WiIoC p~l&cl herein), multl.Ultln& fees aad/or com~Ul'o!:t 1II.00I!IJl.. r_. S.lellpc"-. /lilhIIll "on, h.
tnatlld u an employe. with I'-.:tact to the lllarviml!ll ~~flI bCll'lJDIldor CDr federal or I:tate IIaa purpolfti ..... fa.. po:..~n.." ...de.. the Wnrk..... Co"'pan.ntlll..Act.
2. Sallis Il./Jbrl.. . . :. ., ,.
S~r:....eraoll .,poo;:a 10 am: Q an lnde~"dent ~l Mmt. Ill"~on llIr1d ahaJl f..ithfully. 10)'.11" and lagan)' cllIl",.l1\slhcr ,ff(lftt It) "11, tr~., 1I;W>lO Or tenl' uny and u.1l ......1
CIOt.fell.ccd wi"" ~ro'k;ll't. to solleil additiDn&1 t1:acll\il;ll. eLlllOmCI'lI U1d l:llefltll'ot' "Brolwt'. and to CltberwJl1I promote the buainellll of "ervina the puhllo In TCIII Q.rl'll'll tratlSftC_
tl"nll It) t'hI!: cnd lIl"t lIach of the parties henm:I may dcrlvc1ha Sr1:nllllt pl"Otl. pot:slbI,.
3. OIlk-fl"a,cUkI48. ' , . , . .
'Broker .1'IAt! :n:om lime tu timo dl3ll1naw the oMce wllll wello;h """ Sal..~raoo aholl be 4II......lat1ld. Th.t m'tl_ "lIan bel pt'O'Y14od wlth lucb fUmlsbll\liS aad cqv.IpmlOnt all
dcclrK'O n'K'4lsN)' a.t the. db\:.rotlOfl, of Broke::.- tbT d10 proper oporUlon or It Nlal ~tate oMll';:l. ~f!=lkr::.r IIhaU ",ak\r; aVIIllable to !be 5alupelIIOft I1H ClII'1'eTllllsthl&lI of We offia:.
..nelA"...., upon rI/lqUClllI.o to .....I~t 1hc S.ICJllpor.-:m in hllW'h4t work by I,d...lc!j>. InltCl"UQtion. IlIld, 1::C 1 ...0..-... 1r.l mill CII~r.nt docmcd lIfIP1V!)f'JiItv by Broker. SaI~pcnDIIllh,,11
P":f fC'" 101'18 dilllO<'l1lcl ttolo-phonc I:Ih"'<ll_ ..nd for s...cb Od.ll5r Fom:l~ cqulpmcnl, ....~plll:lIl1lt ..hllllltc.lIel.fonh tTJ Brtlker'l written oq1eo poUt;I(IlI.
4. AnhnRNll,. ,
SaJClSPlU'lIDn IIihall ruml".... tlitlh"" I)Wfl :tf,116mobil,,\lnd pll)' 1111 I'dated C'X.l?"n:K3 "n<l Brolterthall haYI:I ;';"'n..Ponlllbtllty relating to S"ICI$~I"DOfI'1 automobllo \)'( lran.llportatlnn.
SolCllplmlUn "fiIlllDIIln clIorr)lUIIlMlity ilUl~ttIllloO'" uporl hl~CI' auunnnnl1e wUh MInim"." liobiUly limila of $:300.0011 for c.ah pa"'Ol1l1,fl(J &:lOO.OOO ror.lHOh IM:C;I<lc;m Gnd with
propllrty damAf;c liabIlity JlrI'1i18 Of $.50,000. SIlIC!lpanICH\ a",OIU 1ofm'nI,I1'Prl"kor wiUllllie~tilicuto ...ortIfyjnll oampliancc with lhis roquinlm"nt to be dcpmlltcd wlch BrolrCT
on OT hc1hre rllC cl'fccllvc d~le and ClBCh r..nc:rwul dllTO of Cbill Apcelnant, Of III othot times a. BrvkGr may I"callonabl)' roqu~lt.
SllleI\Pc;~m~ ~:~IIJI'::::ftld 10 n .hllN of thl: CQmnUllilliclIIlI "",mQl(1l1Q(1 ",celved by D~kOT llr aCaordll~uia with 8mlR:rr'1Ii SIIIl'SpoIrion Col"tllYlilltian Sdlcduf. in cl'l'oat tin tile
duta of lho am. cnttrllnl S6l,~,s"CIJ:SOI\ EO il J:;Ummlllalon (c'lj:., nm"lnl.... Uahl'l., plllcli~1 propet't)I uncia aart:lm'Il:I'1l: of "ilia, .~,) or 'Ill 'Olh.rwl~ 1Ier-l by thD pnrtlall In writing
... W .. par1lc~ll.r ln1nl!111ctl(tIl, &roko.r mil)' .Iter ita SlIt~riVln CClmmlu,iOIl S.:hc:duh;. frt>m tlmEl to time ....i1OO..t prior nexlficlItlon. R.visiens w 1:bo lIIlhadula mall be Immc-
w.,t",ly "l'pliaab1C1 ~.n rUnrr9 tt'4nlD~I~".. Tho dlvk;loll 01' aomm~.Monll bllWOCD Broku ond SalC11pct11111Jlllha.1l rollow (Io;:dlX'Uon of All eJIponl~ ol/curdlnlj: to thc $.IelIPCI'"f.On
Comrniulan Sa1'lecllllc. I'll no CilM thall Brokar be lIa.hlc to $n1.'p,11K)n for l\rt)< (lOtnmillllolY 1'101 collccu:cl, All commbtjoll5 derived ft~m a tTD<lIUICt111n IIhall be. dq:lO,lleo:l
with the: Brokcr ~. l'OQuiN'd by the Act Uld/nr Rule". .."d RllulilUon, of tho koltl lil<lalo Co11'lml>>ion Md lulMoquenlly paid 800mrllnlUl 111C Str.k:spCl"SQfl COmml5lr.lon
Sc"ed~Ie-. This dlllriburion IIhDlIllI~ pl.~ III lOOn'" ll'ructi\lllbl.. .f\or Onlll:CII('ln .,n(l ~ceipl or,uch oommill"KJn~, .Ill~ undcr.,.IOOO AP(l1l1J'OC4 thlll thl: S.IQlIiPl:ll'llClll'~ 01'11)'
n1mUnel'DtlOn for the IICrvicC:II hdng nnr'4rod undor thl~ ~manl ill tho S...I""'p"\'$IOI\', theN 0(' th.. IX>lTInd...I....M ,paid by lhe pan.ia 1('1 reDI e~IOtc tranMcrlcmll.
6. Cll.nrP_I.
J'" 1'10 even( shull S.IOllpIUIIiOII C'tI...rac I"" Ibrmlho IHln:lml_Ion Dr re.a c'l.l:olJlh~e1 by th.. Brokw without ~hc: 'prir;or wrltwll ~n~l of DruMI", It Braker IIh.llll"...e enrared Inlo
l\ .!Ipo<:iltl contrOCI or aJ;caemc:nt pennln'". to an)' Pllrtigulllr ITGTlNlCtiQl... Broker IIhnlllldvlse SaIClllpcnnn nr IIllah ~p"lal AITtln..,-nOflt. All aommiuicm, ..,l<! r.., frQm I' pllr-
tlCl)llIor tt~naac;tion shGII be PIIyablt:. ro II,. Broko~, Sll.....ponnn ~hnll TIM 1,. 1"'fIIr.on41l]- Illlblo LO Brokcr t'to~ ....y eomlW\illfiOnll !lOt flJClDivocl h)' Bl'1)kRr from portlOll IU II mlllll-
lIOti(ln unllllll 8\\Ch nunpaymal1t '" 11\1:: nl'lIult of colluMion. Illtcr1l1l111,l 01.' raekl'lIII condua. lIrolc:or ~h.ll hAve t1,e BIlClulIlve tiKin ~ dcIa""lno wlMtl'lOr ro C<)mmancc Ilci!lAtmn
en c....11cc;t ~ eommb:sIQtI or rcc. or f'I'I $Cttle Any claim fQr Ihc lIIIme.
7. BI/rh; fl,M n--t.J A...u:c;tdl1rloa,.
SlIlcllpers.on.nd Brokcr \lhn11 <:onchlcl bw;d..~ .ntl r1iC'-IIGta workltlt:: lICbcldulolso4ls to mulnulo and co Incre.llM tne lORd wUl, buslnca. proIilR, and raputllrlon ofBI"O'ter
~ So.~rm nnrJ OlllOt! llP'OC' to onnfunn to IInd nbide by 1111 law,. rules and rtllulll.tionll. .nd CC1da of l!Ithb chili .....I)irwjl\l 011. 01" appllo.bla In, NtlI UUl~ browA .net
IRI.''''~onft. S..tC,'l~non and Bn:Jkor II...... "" ao....1'AOd by die en:<'_ ofBUl\C$ of'cho NU'lnnAl AuociRLIon olIt.8...r~'TO~. the Act, Rule. Jlnd :R4plllUlol<U M'tha RDlI.l B.sIate
ComnrilllltOn, u tb<e sn/'lHl lI'lDy bo fmm ttm. tl> time IlmDTIcScd or slipplomenmd. rile OrlO~tltlUjOn and by_laWII at!tlo loea! n:olty bo.rd (111' slIcll olhu bellrellX' .IIl11'tell\Tiol\ 11I11
ma~ bel apac:d 1'P01I), ftl'ld tM: rule. .nd rOlul"d~1; uf -.y ":I,,!dplo n,lJl'l. IIOr'II;c wllll whicb Broker mllY _ 01" Ja. the futl.ll~ hc IItrUlated, Bl'Olc:Ilr .Tld SlIkspel'8Oft .Ihllll
nll:lIm mllmbCI""lltp In aoCtd 1I1...d.lnJJ wl~" I"''' NlLtlonal A"lInQ,,,aon orR!!IALTOR;S~, tho Pcmn.lylv.Jli.. AlIIlIocialon of REALTORS". And 1M 10a.1 rBlllt)' bonrd<< _Ict\cm
dlU:lanll1lld by Brokv 01" oa> may bel ',~cd npoll by the~. When""OI" lIrn$i:or \8 1'1 momber af any TCIII ~ urp111~atlCln whiC:Il requln:1I mamblC"$hlp ~ Sa1olpcrson In
$.'lld oru:.ni./tlltlo.l. l!,." S.I...r....... """",a. tl\lU ~.ha lIban ~" .....mbor ....ll'u)' A.=. YI"'IIu".. raqlli~lf b)l4U~ menlbOrtlb\p. Broka' aJId: .'lAl".pr.nnll "....,,, tu ba bound
to,. tl\Q rulcs Ilnd fq!;1ltllotl'Ol'Il of 'uch ur'l,tUnlr.otlonR pc.rtlltl\ll'l' ~ ethlcl and :llSIa(l.\ttll or conduct.nd ~uro. SIlJallpl:lll'llDn IIl1knowladsCIA pmllcuion of II cummt cop)' ut
I~ T'c:nn~)'1...unhl Jllenl F,!1I111l0 r_t~cl1~lnll rll1rl Rlfall<ttuuun A<rt.thtr. R.ule~ and Rc:g:ullltll')1\lI, fofth.. pm,nll)lIVllllin R.aJ ea"CIl Commilslon.uncl Ihc Code ~rElhlca or lhe Nnllonll
A~~naintlntl ofRBALTORS. n"~ u~c:=c~ loCI he apprltlld olll1Q pl'(l'Uilllonll ~,,",of lei thlll Sal....parll.<lJl will conduct II,Jllladyl~lIIIf. In lllnlllll\l)f cClnlll.lo.nl with ~uch l11WS und
ath......
fit. _ft#vl B.d.:H~ I."..." fiR" V'"_I ' .
Soll!\llpanon ~lIlltl pol.y th';c::co.,t IOfnny n:al C"'a1C IleonllC RIClulrgt hy ''he. prt:lvlllion~ nr an)!lllw l:It"l"Oiul.tlDn oltha Cnmrnt:ollweghh af Pcn....)'lvlln;ll, Slllco;panlnnlllllll funhOT
onlun> Ihal rh.I"1Kl\'ll~ontll f('ll' lice>>*ura M !I r01/l1 OIl01a ~n by tha CommQnweallb I'll PannlylvAnla ore A..dlfled i'l'a~1')' rllftpcat. 111c=ludi... tho Ilm"'ly lo\l.fbctlan
or mand.101'Y contlnutnB cduclltlllnlll M9ulrcmentl, 9all:lllpr:l".""" Ibolt pll)' ,all duo. ror membOnthlp In Ole lUuaoiati(MII 5fl( femh in the preoecllnlllll__Sl'IIph of thh.. Agrcx:mlOnt
In II- rlm.ly J'o.a;hlon .nd "I\Il.1l rote,. ..11 tnll" 41 OTlouy Ix:. 'lavloct ...pon k1oanmo or pcodulldvhy by lhe l'ocJcrllll sovernmeJU. tho TnlCl'l1111 llavl",1CI ~ 'Iw ~mm,.nw'lIlLh gF
PennlylVflnla. or .n)'loc~1 MLlntci....1I1)' (Ir.'~...gl dl"lrW:t or olhcF lIue~ ,,,..In. .IIu(h(.Jl'ley tne1udlna bLl' nO!: limited to Inoomc 1"Jll:8I. oc:uuplttlon Ilnd ~upnlia" privilosa lu",""".
per capila h:IXClI. mCTCllntl1e 01" bu~locllll pI'Ivllap laxCII.
9. A.uthority", Cmu.mc:r.
Stdolpor.\Ol'l ,hlll1 hOlv., nil .uthnrlty to bfrld. "'1118:\1"..,., oommlt R>'OlI:e( by .ny (II"~lso t;rr ~prcllc:nmtlon, unlc:l~ lIpct:lfic:.ally ".1'Iorlzed b)' Bmkcr In writing: )l'<IVIci.d, how-.
QVIIIr.. that S..,c:r;:pe:f&on man ....d \. he.rcby "uJlcnrr~ II) M.OO\1"lls~a: Ilsrcemant.. buyer "Io1lC)l conlrllcrs. lea5fl manqemenl COJIll1lClI, :IS well .... _II i1t;ldendn ond "'&fl:C-
mOM" 'PPlll"lcnnnt thc:ef('l for lInd on hl:hlll1 or Bmker WhVllI'IClt in c:=r>nfJiCl.Wilh Qro~"1 Q,l;I>na)' prac~I~1l Dne! pmvldccllhllf rhc (:(lmmllllilnn Invol...ed in MIlCh 1T::\ll$l\liHun
b ~()' 10lll. c"nn \b.ut datcnnlned fbr lI'Uch t1'lln!lolCtlon I'W' Sl)rvj"lI hy Broker. Pour I'll C.n1efina intn aoy "Ilch con....cl or lIllTOCmcOl Salllllplm'C)n dmll dOlcnnlnc Ilw u. ~ ,
mlln"Ij;I"TT>On( pr8CItiCOA (If Broker.. ,It Y nn
1 Q. Ermr.. G"" Ondui.,,", Ilfl~"""""".
Sllllllillonrm .hQU C""""""rnt. 1\011)' wllh llrokar In C1111:nlnI1111: ll';Or., IInd oml~.I(lnll cover'SG In 1111 amDllnt, ltncl wilh dcductible. all .h"U from rlmo: II) time hc dct$nnil'lClcl t>
Hmker, S.ld insurancc ..hnll pto_ .saICOlll(>M'IlOTl aplnSl litlblh1y w1'l1<:h lI"'y nns.. ~n eunllllC110n with tho c:M<lUCt c:=fS,LllllrPOtMQn IOII..n QCl:lv", roal ~lItr1lo llllan.wc Slllll PIIC)!
Ot p.ollc!oa IIhllll contain 111'1 .nd()racmc"t nnmlnlli BrQko.r nnd uny"u.baldIQ~w.. of:r3t'O~,1Il! ~IJ addllioll&l inl~ und .holl nOf. br; lub;oellD c:anccllllli~n cllcCI>!: o~ II mln~rslU~
(Irlefl, (141) dny. prior wrltl"'''' nDlicc (n Bl'Clkor. ^ certifl~ (If Slud In~C1ln(:c ,"*'I'1;.c dllJlo;lrod with Broker 1)11 6r bol'c>rc the ontaollvc dole untl c.iIIc;h renownl clore of lhl.
^arec:mcnc. Thl!l co.t nf .lIIit1lnllu....neo ..h..1I ltG...;d punua.nllO ~h9 wr1~n I!?licy rd Drnk..r, C1C. In .... nbaQN)Cl ltt'rot:>t, ~uch <<lMt 51'11111 he born... b)' Broker al11l S,,", lel"lon
'~ t~e ~~ll ~portjQn '.' lhe)' would normo!)y ~hn.... in (bee aClmn'l~nh)n ra.wlun. from II IIsiblS t1nd .,"lc of p pmpcrcy lIS i!, ~ct rrmh in lho S"l,,~pcnl>n e"""'nllllllloTl ."l:I~c1UIO.
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Received 11/28/2005 10:44AM in 18:24 on line [12] for 4659 * Pg 23/33
11/28/2085 18:42 717-761-8923 JGR ERA EXEC PAGE 23
.' ,.. h ................-........_...,~......,.._.".........___......_A_._. ,", l. .,' '"," ". ....
SA1c~cnon II~ 'hat any and .11 1I.11nSl' of propcr1y. 118CftCly ~mcn1e. and .11 letionll tall;on:.111 'iODncct1on with.the rolll ClI1a~ ~'5ino;5', 5111111 bt;: In rho nAn\C; of eroltcr.
LlatlnSIlo and qpn~ <lOTrtOIfll$ JJball be: filed. ....11h. :5rolter Wldtl.D twwnry.tot1r (2.4~ lIoun' nfl.r noeipC bY S.:Jllllperion; '^"lbtiDP and a&Oncy concractlllulll be And remojn the
M,cIIJ.lvc prCl'plt'rt)' of Bro.kcf. ^11 c:orrespooclence received. COptlll of cDa'C,pondern:e WTlnca; 'plau,lIldn. tafannation. memonndll, filcI, phMOIn:lpl'll, rcPOel..., )cpl apln-
i<m.. ~nunl 1utonnltUoa, and N\Y nnd oll Olhor jnltrumoll1ta. documcntll ot IntonnQtlon or any aatun:I whe.~ oO'nl:'lVl'lil\l' to!lJl5AC11onII handlod 1:1)' IImkcl or
~..lCl1l'el'l'Cln. or Johul)'. _ I\nd .hllll r&mDln tho P<<Jporty of Brokor pmvidcd Ihlll Sabl'cnan ,. c:ndttl'<l to . copy of IIlJOh Imllru.mcntll Dod 1n~lnn upon ~!In"..b'c
f'IXI"olt IIft1KlOn'lfn8 ....nll ~r"',,,,o'ion In Wbi.;b hchho ~ pInIQQIOU)< Involved. 11x: ~nio. hon;~....11 mwuajly -w"0"Ie .nd .,reo 1I?"".11 COI'lIliIl'pOl1~"CC fmm 1he m'r\gc Qf
BrokDl:' pql"111;llinS Ie> InnHl;lUOAs hMilSled by So~on, and Ilh..ll fun111.r Ilan=o rln tho fQl'lJlllIg be IIlICd and dM;;. QC)n~ntl of ,dll;:oQlTllcl.., ""a olMr forml btfOAl In")' 1\"
prc...,te<llo cU.nw a.,(J c,ntometl for lil!lu"tv.no. ' .
12. ~ptnll..
All de-pcmll received by SlI.lClIIponlon In \'he 00_ of. ,.."I esU. trenuctior\ or tmy nature .hAII be> il'T1~ely tnln~rTI;Id too Grow of!;>r dcpoljl puflUflJlt to ll1t1 ML:, U)e
Rilla .-net RC(luluian" (If tho ROil' Bllat. Commt.UoQ and lhe .llaree",erlt of the p-rbQ4. to th"" trwJJlllI."tion, psovidod. hQWov_, Ibnl "111 depo&it to be m.lntal13ec1 b)':M~hcr
hmkar rI1 ~ plll1lulllr'l 10 U'. Act. Rules and R8allJatll)fll of lbo Re..l ~to CommiMkln line;! ..~emont or 1M puti.. co A'b'lU\$4Wli~ .!\4.I1 be immedi.tely tnlnJanaCl t<>
1\lC.lh tn'oku with the apflf'Opri.tc m>tI= cn the [I~no" "",khlS INCb depOIU and toO S'tOker.
13. T,",_lIfft~I_.
SlIolesp'lIQ(ln f,tlllll Indcmnlf)t and hold B~I' hormloJls I'mm any and ,,11 olnlm., _CI, 1tabllltlu., .nd Jl.ldCrM'IIU. lm;:ludln8 Quo",ey'. fea. Dri.Inr trom tho 11Mmtion.t or
reckless Kl.S of BlIlelpenian. Of actll outlltde the A<lopn of :bll!llpcnlDn'II\\l1tltu1ty. When lJrlgll~n Of II (]j.p~lc. arI... concemil12, Ii' t1'a!isJlccicm 1rI .....tdch Slll~cm .....
Involved. the. panica bc:::I"cco ..h.ll mulll.dly (:tlopera~ wlll1lllaCb orbw. In dispute. 01' Uclptlon when!, thlll1lla II Dll1.fm 10 tho nfftKll thn SalolIponon hn I\Irteci Inu:ndrnlAllj ar
fCCk:le!l~l)' or O\JI~ldc W ~ of S111elpet'&On'11I.t1rhorlty, Sel~n 5hailll.,.,. tho CQI;U1, Cllpcm_ .nd.INll)l11tloII1l01mlln.lj\ld.lmli'ntlanloJ .ward. uilin; from Ille dlltJ;iLn.
or Iltllation. In dl.putca Clr' Utl."rim. ~ Ihem: II :II c1.lm tgl11ll) .ff~ tha1 SlIl.'spenon lllU' med neaUsentJ)'. Sal..rcoA llhall anal'e Itle OiUSts..a.x....5Cfl .nd liablll~las
tncludlns judcmcnl:1I .nd .wam. arb'ns from tlM dlsP'Jl". or mlllltion. Such $l'u:uln. oD11 be In tbll 'IIme prOflO"lon .1 Iha d.ivfllina pf cnmmh;lIlcm w... Of 'lVQ1I1td Mvo i:J..n.
from the IU~l tl1l.,acrion. The lIhlltJn.ll of COIIUI. Ilxpenaell, IInd li.bllltlclII !!lulll \Ie wl.ll1OUI P""l'JlIIdl~ to Brokltr.1 rJp" of lIld.mn1ftcaUon \1"1_' there has i:JllfIn a I'Slolu-
~l)n oUbe indcnmifiCl1tlon ,due between the partic. hereto. 'Broker lIIhnl1l1C:lll1Ot CPItl>!lOllllO l'eprolent '8ro1clr'l a:nd 5a.l."en>on', InteTfil.S In Illialltlon with t:ll)WIII bome by d1D
pardelllrt PI'OI)Ortion u 'o~ rOl'th "bt)VC) pc:rtJIinh\8 Cn Ihc sheri "' OrCot!l. .
14. :rlr,,,d_tilHl.
Thl" Aan:omcm. .nd the mla.tlnnship O1"lI!nWd hi.,oby, mil)' be cormlnoled by oithcr put)'" hcmo, with or wkhotlt 0MUI00 "t.ny time: upon wrtttal notlor:. Upon U'!""III~lon.
,II nc.aaciaricn.. eomrncn....d by !i>o,l...pct'lIOTl (l\lriJli It,. term 01. thb A~oJlot AhAII boa handled thTgush 'BTVlcQ"l" and with MllGh ~lIU1.nge "neS ooopc:""ion by SlIl.Ip"I'I0n 0'
;. __bin under 1M elrlltlmllCanaCIII t'.,.. rll~ prQCeetlon of Ihe mwr.8W ot' lho tlartlOlll to die. 111111 "lIUlO rcannminnlll InvalVll'l, S..llllJplmlaT1, \'''1)\'1 Icnnina[Lofl, ,hall f\ul1tlh
Brobr whh I bonll fidG Itllt err all prnll(K'etl, l&lld., .lId probablle cranaaotlorl' de;....u:.pod. by Sl~tm.. w..lI '" aUaQm:lApulldoncc .nd dQc,,"'....c. ~lo:ri'b9d in ~srllph
11 above, wI-dati arc deemed '" ~ the pf'OpeI1)l or Broker, Sa.~ furchc ~ It.." llpon lCrmln.tlr:m. Qr in IlU'til;>ipl\Uon tt1e,""f. helello will not l\mti.h to Iny ~tl,
finn, oamY'"n)' aT oo1'J'O'l'lltlol\ Wlp,ed In t1M relllllltal8 bullllWlU .ny Inf,,",,'tlOTl lI.II rn 81'Qku", c1"nl$, Cl.1SfOm9r8, pro~le.. prieea. ~6tm. (Jf "e&:otiuion.. nnr'S:mlccr'" pbl;_
c:h~1I nr rellltinntlhl[lll wllh clients ond CUlllomera nor nTlY mhllr Inl'amunlnn cont;:emln,& Bl'Okltr Qad/OI hillhe.. IN.in,,,,,". Soal...ponnn IIb.1I n<1t, ..fler tcrm;nt:tit;>ll of Inll
Alrcll/lmen[, or 1n conwmpl;ition~. tornoWlITnm rill:: t'lIC:I or tram tbe office or Brok.M.ny mo~II. d"ta., pIIbtlaaclon., ccnTell>>l'lMno;~ nice' or In.tormorioll ChAt ia prt>~.
erly or Bmkcr. SIIDflpcnocln ,haiU 'toll! entllled to cOJlie. O( certlLln In.tnlmcn~ PGnnlnlnlllO tnInllllCtl~n. In wblo;h Sele'pw.OA htill 0. 'btrbt. 6110 ;nIOTCIII nr pen.ln;"S to ~m-
, i"9' of Sllesponon, . ., . .
l.::i. C.....iulon" Iotp.R1 firmillallon.
Upoa termination. SIlIc.llpcTllOp." ~an: ofcommllllion otl .l'Iy tranuctlo",; Whc.ra .. .les eonCl"ll"~ ...-Ists bot Ihe (f3J\soctl.on hll~ nett clolled.. ahlll!, .fbsr lI'a cloaIn, l)f "'lIh a-rcn._
Iloclon. be paid to S.Jc!IIpcncm In nccord with tl\C Sfllolpeil'1lon C~mml..IDn Sc:hcdulc In cffc:cC., tnli tlm" of llnnlnadon, 'Ill,", ,h.cll b. dedumcd trwn IllIC" IIhll'Cl, hnwcver.
a 4Cl"Vlctnc (lnlU]l;c at,$ Of _ IJIio 6t the II1nDU!Il ot lhe 1151inlt .neI/0r $lltl" commlSlIon. wblc~ ill hlahon. No ~m,,",ll)n otn-r Illl''' ,tor
d,ole P<<lporti.., 01'1 wtlieh ..n .~lTIClnf hi". bH'n da:nod and aooeplcd in wntlna: by t'hc bu)'er and ICTIc'I' on ('lI' be~ lem'Itnndon ,hill be dccmct::l c.vncd. by SaICllpcrJ(lI'I.
unIcn otbcrwllio Aan:>Ad In wridn,J. LihwlH, no ;omm:ll.lon TCII"hing frDm llIo limna: {or fCnt. or the renull of properly abell be 'PlIkI. tD SalcIIlpor.lJm fQl1marln~ tcnnlollUon
with ,he _c..pltn.. n1' CQmmlnio". arilln, rrom I08lea f\LIly OKOC"tcd primo I(J tt:.rrnlnaUOllIU\~ to (he ~IG>tIt (bllt JClD~e plymcnlllerc rccc;,...,.s pnor 10 tcrrnlmlTlon. Sl1C1perkon
..hall nar, h.......,"..r. llI>nr.ln tho commlllltOlla pay.ble In ma fdwn: nnd b.,sad upon tho Joa$lll opll~n& Of Ic..a pnymantlll nnc)'at: due II"" pi'l)'l\ble.
16. n,.".':-'ictn~.
Upon (enn{MtI_ by ailhu.- plUt)', Sal..IE-"lIon "hltll imITWCiI1ll1el)':
:1) aubmlt Illelar of tsn'Ilnatlan with. c:pmplclc lIocouD(lns of ccm'lmihlionl. liatin.. U1d 1:>0.1)'''' ali"nt..:
b) renun nLlluPJ'1la.. el\entlov",cxncr P""Ipcct lif,lS, ke.)la IInd dOQlIna.c. consldcrod property of Brnkc:T P""lllnc to t1w. pl'O'Yl.IO"1 of this ^,,,,,,,,,.t\l;;
C) meel witb BtoktlT fOl" pwpolOll (1( Dttl:::mptinr. 10 muN"Uy agree. upon Il final AcQO".dnB of commillllJIJD' cllle and pay"blll
d) eoop<<ac~ in the notifielltion of die Real ~Cafe COmmmlOD AI.Wi"&, the termjnado~ of 1hIl181lloonmlp of 'BroiQw.rod Sn""pe.~
17. ArlNtndi_ qf'Di6prd....
DiaapolSmOTltll of d:Il1pUtcR betwocn Slll0sp0r:son 1100 Broker, or belWCtCn SlUa$lll:JMJn IOnd " reel Cllcam Ikx>n_ .no;;jltc:<l with or contrllCleCl to Broker. and which IlriSIl: bul
el,'m-In cannactian wit", ~Iw: I"l;llll ahUI bu~. ond whiCh com>ol bo;~umcd hy.nd bo:'_ ttlO ~ involved. $ball be lubmlUed for I1tlUrvtlcm In aocm-danQtl with
ARlela XIV pf Ibe C~ of Bthlo:a of Ihe Netlo>Ul) Auoc:lachm u!lmA(..1"01l$-. By O1i'$ ~lllRk.1 orb1cration IbftJl be mMldatory II"Id lhokllf and S"lclIpCll"IlQn astec
to provtde n wrinln D.Jl'llment to tIll: looDlul;Oci.t.lgn gt'~1!!.A[..~M m"y i:Je ~qu.trod by ,.:14 anoctattoa U 0 condidOl'l pteeedent 10 lt1){tncion, BrokcT lIn., :)1I.1l:l'peT$on
aaroe to be bound by thll dec1alon of thcrlU"bl,..tion Pllno:;.\ of IhIJ JOi.'aJ 1I~lon or tho Pe"n..yIVQfl~D A$lIO<:I!u1on gt' MALTOR.~ wh\ch he.. en.tcl'U!ln-.d the tllSp'''1; or db"
41.1tCcmont. Tho Ql)nduot or ch.. wrl>hrat\on "'.....n be ,O"'",n." by Ibe Code 0/ EMir;,. 1;II..d ArbirnrduIf MUfU,,,1 mm1C rcc.cmly l'ublJ.,l1ocl by 111. NlI.tlomll AlIJOC;lallon of REAL-
was'" prim- 16 ATb;1nlion. Ol" lImCf1dc:(i by th. l(1(:a\ ~~iatllnl bil:llrin&.the dJa'Putll.
'II. AIfUIUh.J.II',.
Thll A&,ce.nent IU')' bot ~_nd..J .....11' h)l th. ['mi+.. ........t... i,., -"ti"s".
19. Oow",o,e z..""
Thill ~m..nt ,hllll bI aovemecS by lU1d InteTpnll:oo p'-'\'8UlI.nlIO noe lawa of the Cornrnonwenllb of PeiRftAytva.i..
. . . ":ZOo SluJe_n inl,d"raL
TblsAPeen'tent >!hall Inun:: to t1v: I:Kmcfic M4 bit b.IDd1fti upoa lhe ,ueceacora tn laW"DIJ~ of '8rokfl'. nil Aa:r-neut.l'LoWever. (I baNd on tha pcn.nn.llIC~ of SlI.l11p11'1'SOft
aod BaJl!illpetSOD ....n not del....I'" l;II" u;lp:t a~ Dr :Sldeapenon', rishla or dudes hcnund.r wlthoul1he prior written oomem vi B:roltPr.
. - ' I'
Ii . 2V.1tJ/c,MIlnUIIII. .' .. n . ." .n""; ..t". .
!'"ny ~ policy ... n>Tos and procodUnII D10NUtI DOW DItI11tln, ,:,",..he~.Dd~~Dd OJ' ~i:I~ '..hall. be. blndtlli ,on '1.'- putles...
22. 1lII..A....-- ..:1 .
~il,~,.rn.....t..anllltltl1tQl,th" ""U... "SS-lIr'lt betwomI tho:> Boo1r.iClr~nd S~~on" ~~,,'~~ ;~ 110. ",~~tI-o:r undcrlcimt!in.u:' nrit _~se4 herem.
IN WTl'NESS WHRRROP, thie AS"'emeftt W b.ec. _co::umd on lh. cbIti flnh ebovo wrihbu. .
q~~~~8:
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..:; fj/-"<. ~,
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B.
S.I~
Brcokcor lho\Ild oa.~ tlaM written omcc poUola do;acrlblnlil" SlI.l.sperson'lI ftn.nc:iRI oblil^titnn wiTt. 1'O.IpeC:1 to otfu::~ 'UpplicA t1elaphonc 1m: IUld. S'lc......~ Cnr'nmlu{on
Scht:dllht co-. provided 10 Bnleilpl:f1lDn. . .., ...v
I1l P.......".n.. Aaaoolldlon of
REALTOR&'
--...--..-
CO,l"Y1UGH'1' mNNIWLVANtA ASS0Ct4TION OF R'8A.L"J'OR..o;e 19/11<4
COf'lllSl W"lT11-II"'OKBRl VEu..ow_SALESPl!ltsnN
",,,..
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Received "/28/2005 10:44AM in 18:24 on line [12J for 4659 * Pg 24/33
11/28/2665 16:42 717-7&1-6923 JGR ERA EXEC
......n.'LI'.ft..&!..tJl.'\.1 ~n~C.IJ...ft.';::)Vl"'"
INDEPENDENT CONTRACTOR AGREEMENT
COPYRIGHT PRNNtlVLVANlA.ASSOCIAT.lON OP At....'.TORS- 1~
......I~r....... noom....n4ed ~""'..~ r..., """,..... .....ICltod IO,iu~"~ r1..":'....h..........h. """"".,.l....pIo, ~lk", ,,'Jte:...L.~"R"
PAGE 24
J'lonn J.::JU-'"
',1.1-, 1\
This Agreement I.en""''''.''''"'' -Z8 ,"~o',-~VA ..z."".:!.._. ~"" C;:;1.1l..u::,J""-\' )<~<-
llcrctnllfteT ,.r...,..,..,d to 1II."Broker", lI:dd . ~,;::- L. L.....-- . ~ l-J. t.iiA""""'''"""'"t'''"' hcrein.llf't<:IT rofi;s~d fO 1'I11 "SaI"IP","Km",
. Whereas. Brob:r III ImSIl~ tn bUlllnall II. II Real hslate Bt'Okcr and il d.uly ttcensed ~ 'enp,Ol In th~ .""dvlticl of ill "Droke,- aa d..nnocl by th~
Pennlllylnnia Ueon..ins ..qd Rceiatnadon Aol.~ or Pebnl;uy 19, 151110. P.L. U. No. 9, os 8ml'lnd.cd. .nd
Wher:as. Broker matntainsonc Dr moro Omelll 'PTPp"rly aQ\.llppod.wil.l1l\1l"t1.ltlhiJ\a:ll,.liath'8bookland otherequl~rnant ''''''''''_ry and locldonl<<' to tho
proper opOTlldon of 'AM hll'[n~, end affod whh clerical cmplOYCC:lI, and-is thereby,l;uita,blo 10 ,nvlrq: lb. public II. , no,l <ld~tc bl'()kor; an.cl
, Whereas, 88II!lSPCTliOn ;. duly Boen.cd by thl!l Cnmmo:nwcli.lth ofPon_yl....ni.. '11I''' 1'C~ .,tate "iates,:ll!lTl'lan" (IT' ..~..QI;lllll1c broker"' a, dal1ned by thg
Pcnnl!l)'lvanla Licenltn,antJ Rc:s;i.tT'atlon AcI,and wher~$ i, b dceme<!'Obe tDlbomulu.1 ~dv..ntnaeOrBt'Okef and S.l""perlKlll toentCJ..thi5contrB<:lul"on the
terms IInd exmdltiOlU hcn:inaf'tf;r set rOrfh. ' " .
NOW nIEREFORE. ~ .1\<1 In con.ideration of Ih'e ~uhf..1 c~ven.nb an4 pmmi8Clll herein 'llot1tatned., the urulcni.gllC:d Ju::rc:by cnler lnm the
fQl10wina article. or Il$fMtnGnt;
1. l~"'.tComl'lNJCOr. 1
The teladnn,hlp or&lIlC3pcnron to Broke..i,that of an fndepel1d.cntcontl'I,,::tor. In pe1'forM.illllltha lIet!vidco. OrA real..lale '..ale..-pe......... all dqflnlO'd by tho Real
Es..tClLI~n/jlin8..nd 1\.elPstratloJ\'Ac:t(hcrcl",,"n'Alfened 10 IUI "Aot'?~al.CJlplX"on ahaD bcff'eCl'tadl:OVOto luch ponlon orllla,lhO'l' dmec,anClT8)'.liIf((lTt3aml :fkill, 1111
helsbodccmllllpproprillllll., In keeplnlll w1i~h lhg In4ependenlcnntncloTIIh\tul, :9..le~onon .hall bcrospon.ubhrrbrconlipletina/ilnytrll,jnlT\, rc:q'I;1'Od bytlle Aet.
OI"othe..I._ gf'thc Common_lih oJ'P~lImVanlll; Sal~encQJ1 ..hall work on e comml."kJn bllllrit".nd rccetvI no.elal")', rri1'\S'D beneftUl.mcdlr;:1I1 b.neola,p.n~
tion benefit., or p.-on, tharlA&; nO ..tc, Iggaj. unGmploymcnt,. 8Q\;1..l Sg;out1ty or btlll:De.III prlvl1GJic QlMlI (where IIpplic.ble) Ahllll be withheld from S&leaptn"-
I/)n. S.I/il1'PCT>>Oft .ball P'DY 1I1~rOrc.tonallk:olUlln. retl8. !;lTOn and r>miu:ionl fn;tl\lT'~ pJ'ClIlluftJlI (exCept.1 otherwiltc pTovlded beTC'i.n). mUltlooliltlina: f_
..ndlOrc:>onlputaracee'l!I r-.. ~",,.~n.h.Unolbetnl.t." _ a.employee 1"Ith ~t(,tIleHnIcoIIlJ(::rflM1lll," ,.......d..1' fOTfeder.lorstllte bill P...... 0"'01'
pur.......,""':01' ~ WonV. Comp!...don Act. '
2.' s.Jui:lf'qrl. ,
SaJ..peraorl asroca to DQ$ ae an indap!lndcnt nml o.Itllte SaleJIJ'lCTlloD ~nd sban Caithl\1l1y,loyaUy IInd 1eplt}i 'naa.p: hill/l\et eiToN to sell, rrade. lell'o or font .n;v
and an ra.l esf<<tc U:sced wttb Bl'Okor,lu 101Ic:hadditJon.IU.d....1I. clntomer.san.d ellent.klr l!lrob::r.~nd to otbel'Wi.a promotothe b\lsln... DfllU'vir'i1l thllflubllc In
~I. Ol!I~ta h""""':'~OIlll. to 'be OM ~.t a'Hh or~. part!" hc:~ ,mill)' d~rtvl;! ~1\c IttC-lte.lt pTc:'.n~~nible.,
'.3. . om_ ""dII"~.. '
Brokm' "hall fn;mt, tim~ 10 ,Ime dcIrla.aleth\l onlce wll:h Which the S"lcSpcnon shail be Ilaaoelated.. That oI11cII slUlTl be -ptVvided with sue" C\lTnlshtnp and
equi~~lfttt a" dcemod n0c:4I1II.l'Y at iha dt8cmion o(Brokcr for thC5 ProplX" operation' or a real ~t.to oftlec.,; Broker shall make aVIIUablr: to ,hI! Salapefllon 1111
CU1"nt1\t lifltiJJIJI' o(tho affice, and 'ae;n:QO,-l'poq Rq~Ien, 10 asaifll cho S~l~plftllOn in hi8/hor wnrk by Advice, mnructiotl, ;And cooperation, 10 the cxlcnll1Mimed
a-pprnprlacCl byBrokol'. S..lelOpcl1Km 1Ih.l'l1l ~ny forlona:dJtt&nlX>tc1cphoneebaracsand forll1.lClh othortOrn:l.Jl. equipment. "'pplIcJI M, ,h.fll>c~ rorth in 8roke'r'r;
w,-itton.oflicopoUcliU. ".
4. AUfMII.,WJ., ,
!bles-pe...on "h.n mmhh hialherown .autnmobile ~nd pay QIITClo[cd CO(pcmlilaJ IllDd Broker ,hall have no TCllpmullbi1hy n:latlng to :Slllla~aflon'. automahlkl or
trPnsporUCipn. Sflle.person 1Icr- toCIU":Y U.bUkyinsurance UJ)OtI hiS/her IIUlorllobile with minimum ltabUily limit, o($300,OOOlorol\eb J)fIl'lIon llhd $5OO,00D
for each acuklonC IInd YVitb property dam..$1Ilillhi1ity IimibofS50,OOD, SDh:.p<mtqQ '6"QlliS It) !ut'nbb BTOkerwltb . CIIn'tI('Icab)oonif>'lna compli.nce with thill
TOqul:nntlenl to be dcpOBlt.d with. BMker o;m ot ~oro' the .rfectiw dale and ~h WI'lI;'W2lI dabS of ,lb" Aarecmcmt. PT ,,~ other limes illS BTOkeT mllY
Tll'lIl1anabt)' TCq"'C$ll.
.!I,C_~.
SIl'e5pcnon .ball be enlllled tn. lIhllreorthc 'llomJA.blldvn. a.mod U1d I'CGl:lvod b)' Brok.r In DooOTdanclll wl1h Drakw1 Salospel"3on Commlslion'9~hcdule In
efTeIltnn thc';'tc of'th. lI.clentiUiniIJ S.IQJopc....,n U.1l commission (...'".. obt.alnln81l"d~pl.(JIna:proP""Y'UDcl1n' .~cmcarR..1C1.e:IQ,) orllll oth'llrwiso a.reed b)'
'h. r.artiOl in wridnl "II to 0 Pllllr1lcuwr tnIn.1.or;on. Broker mO)'.lllull' ita SiolQlPp"'JlK)1I Commi..ion Beboclule from tlmCl to timu whhout priOT nortnc:.ollon.
R.cv .lon5(O rtll: IIChodule .}\1I11 be Immcd.i.t.cly ~ppllcable man f..bj....monIJIIQr;ont., Thedtvinon oflCOnuni.alonllhcCwOI>n BroJr;;oor ~t1d SIll_penon shDlI rolIvw
f.k;:ducdon of aD. ....pcn... yOQord.1ns totbcSaluperaOd Ccmna....1rion kl1coduJe.,' In 'ftOea.e shan Br(lkl!:Tl;..:o 1;~b19toSaJcspln'lO%l for anycommi8RionAnotool1gg.
ted. All COml1"liA,tan, dgfivcd from. tr'lIftilllCtion Ah.U be deposited ...ith the Brolcbr illS ro~I..l"" b)' thoAQt ..nd/Of' Rule. .Ad R.esulatiOl'l.I of'ha Re.11lIrCC\tt;
commi,sion and ,.toll;quently plt:id lICCOI'din. to fha SIIIo.ponon Coft'lmis.ion 8chrxfula. ..1')1ts dtstribudon .hall take place II' .oon.llA p....::tK::.bllll ~l'tereollCQ-
lion and ox:eiptgr,luch comm!uions. Il '" undgratocld end e.ll:reed thllttlte Salellpenlnn.':lI on1)o :rcnumcratlon. rorthe.etV:\~. tNd,,&T1:Inder..d under1:hlsA,g,....
ment ill tho S"lcspc;:non'$ share oftbe ClQmml....ion. plllld by lbe plt'l'Ci1Il$ to mill clltate tr.nllllc[lon,.
6.. eN... .Ala.
In noCYtmf.shllll SalclperllCl'n ChllraelcRlI than tho eommlulon arf_ oa....bltllhed byrhc: 8rokcrwlc1l.O\ltthepriorwrit'tOn ODn.!;nto(BroJ..;r. JfBrom Ihlllll hllve
ontcn:ld int.n . .IIIpceiat COtl.tracl or _cn:cmant pcl'Ulh1ins to any paJdCu.hll' tnn~aCldQJ1. Broker .han adville SlIlu1J'ClTScn'l ('J(lueh ~ou..llllT.nFment. All com.
miallion. and (bQ.l from a pa.rtlcular t...nuetion "h.l1 be payable to lhe BI"OKIn". SfllC11pl:!nOn sball not b4I penon ally Uahlelo Rrokor f'()r an)' eommiulonlll tlell
raccivod by !l1'(tkJ:l" horn partltJll M. tQnaactlon union "\le1} nonpaymCTlr ill the 1'1:$11t OCcgJ1usion, intenUonal or nlOkltllll:l con(t\let, BrokaT shall havo the
o;I&uJuIIYtl rla:1u to <lctGrmino wl1cthm,g oammonoo 1I11p1tion 10 collecl a comTflI..ion or fc-e. or Co ..tUe any claim Cor the lame.
,. EtNe Ifnd >>ado ""'........... .
&1lI1c:llp~';," rmd Broker sbllll Cloncluetbue.lnslI .aucJ I'eJtI,lllltcwnrlrinlllcheclul..<Io1O a. to'malntain. find to IncreB.e thesaod wil1,1:>uwlllQN, prolitll, ftl\d TOpU'-tton
ofBru'kcrr all<l SalospeTlonand CIIIoh .Itees toeonIorm tn IIndJtbidc: by alllftw&' 1'UleIIlllnd regub,tion...rmd code ofothk:.ll thl1.111'CbJndll11on,or appl1eable:1o, rc",'
ClIt.atc broker&.ne; afttespM'flOnll. '.lO$pC1SOn aud Broker.hllJI be sovomad hy the Cndc ofEtbl~ ortbe Nadon.} AII.ocietion ofRJ!ALTORS-. tha AcIt., Rul~
4nd RcsuJ,ti.o~ of the Roul E.t.tcCommbsion, a~ tho "lime mAybcfrom ttxrl.1!l to timClamcndcd orlupplen'll!lnt..d, t\!eOO!1stitutlon snd b)'~III_ Of the fOCI'll :re.J~
b<:tot.ro (Dr ,ullh othcrboard Or ""M;Il;Ii,,110n DlI may be IIsrccd upon). and Ihe 1'01" and RKU1ationll orlnYlllu;tlple l11tin.ll: service .....tth which Dt'Oor ma)' ftOWOr in
l1\1II '-...'urc 'toe affilbnoa. Droker Oj~ s...~fURvn shill I retain metl'lht:11Ihlp I" 1000 atllndinlilwith the NaUon.' AaIlnCi:ttlon ~fR.1!AI.:J'ORS. tile: Pc.,nll)ll....nia
Alil:fOC{alton o(R.Ji.ALTORS., nnd tbel00. ~Jty bOArd or 1I~lKXllnlon dc:,iil'1\lIted by Droker l;'tr a. ma)' be aan:cd IIpr.!'n bylh. panl6l!l. Whem:veI")JfO][er ill..
momhc:t' of any I'cul DlltlltO D"SPnlznlJoa whililh roqllll'C4 ft'IlIImbol'1lhip .,..cSllIlglpotl"lon in _Id argllll1zaUori,thlSII Sa1cmronon ilIlrecl thal hc/!!:he slHl1I1:>ocoml: II
m~mbet' and pal' f_ gT duc::IJ roquirc<C by "uDb mlilmbCflhlp, Drakcor .,.4 SitIOIpillTlIOn.o1&rCc tQ be bound by tborullM "nd TeJ;lIlauons oftueb OTlJllInlz~1ion. per-
UJlnjn..to orhlosllll"ld lIandurdllofmJII.rJuct ancJ procodurg, Sale.pllt$On .eknowJedgc'flOlI.....'llnn (Or.. ~lTCntc:oPY ortho Plrn.nllylvanic Rc.1 P~"'~Il1C Llcensil\!.
and 'Rcgilllnldon Act, tht: Rull:.:ll and Rea:uIAlior'ill of llle ran.naylv.nia 'R.clll B.nDte Cmromtp'OQ, and tbCl Coda or SIbil::1 or tM National A3soelatioll nf
REJ\L.TO:Jt,9- and aerc=~ to he .ppdsccl of the provlllon. thoreof llO,thl'lt SJ'llclpe:rs<m will c(lnduct flit aedviLl"" In " manner conallteRI wilh "uGh ItlM .nd
ethic~: .:,1., ...:.'0.'::;' "..' ~\': I. .;..,', " \:
8. ....lte.'.&~i.li:.".....riUJtib:. '--",-".-"
SlIlellpcrson..paU p.)I thc'llosl or.ny n1111 c:,tau: UC~J!, required by the ptoVbignIJ9hny IIIIWOfNlul..tJc:m ohhcComm.:m'W(Jahh oU>-enn1l1Ivllnlll. S~IC'S'pC:rlIon
shan ft1r:'h.r enAurc lhftt the Toqutn::m~u for1ielSnltu~ II" Ill. real OlItaLO Il1le'p\lrlilon by t1l6 Ccn",nQqwgaltb orPenn.ylvl\nla, arc 'lul:dicd in e~ rtl'spcct.lnch,d.
Ins the timely ..-.li5(aclion of m.nd"lOI')' contllll1illB cduCJlfional n1qulrcmonr.. SaleK'flcrlOO11, shell pay an dyo~ ror m.mberanip In thc "sl5OClatlona l!Ict font! In
tbo preceod;l"ltl p.mgnpb o(thi, ......cemonlin. tiT",,::I)' ra,h1on IInd Rhlll1 p.,. (lUlU," a. m.y'blllle'l.liod upan~(lomc O1'JrrOduGl'vlty t>y rho raderal ~nvc:mmcRl.
lhe~r1t~"',.J_~,J1Yf;n\le Scrviga',thc,:.';-ommo~WC.lth or~nl)'l\lllnl~.arany local munlelpaUty or Rt::hOol di:ftri orothClTIOIIl:'h, tllllins: IUJlhurlty Including bul not
Ihtutad b;J ,mo;;ome,IlI.1l.c", oocalpadon Dnd ~upatlon privltqc hI xes, per ellpll. 'IUlCl. m'!.!J'Al:lti",O'I"bu.lft~ privi1QJC: f.IlllGS. . '
9. A.lhGril')' to) C_t.nlC'f. . ,..---- ",J - " ..I
SlIla'PQT.:tQn thlill bl!.VQ no t1uthoril)' to bind, oh1i8Ol.tl: orcommjl Broker by any j)1'1)lJlilllC; or repn:Acntlltlon, unlu. m:lcclf\'lll:lllll' authorizccl by Broker in writln&'
I'lrot'lvllilQd, howcwr, that Sale~PGT~nT\ shall alld ill hcreb)' aU1borizllld tocsoculOJilltln, agrcer'n(!lntl" b\l)'CT IIIpnc)' aJnil"'llta.leall!l mlln",croentcontract, .s _IJ a~
~I .~den4a a~\! ....liICmC"nh appurte:nllnf thereto ro.. and on babalrofUro1<<lrwhcn: nat In conRir;:l with Broker', l'lliicney praClloCIIllnd PTOvidcd Ihllll th~eommiR.
unn .nvol_d.... "ugh tntn"cl~on ia not I.... than that tJetennlnod rQrllu.;;h tTIIl'l11'1clion or""rvice by Brak..r_ l'rlortoarlte:rinslnro.any "uch !;Onlrocl tor .,.roe-
m.:mr. S.lclO}H'rl:On "h.1I d~.rmtnc thg IIlfC1lc)' lInd m."Q~Onl p'l'acttcos or BmkC1'. '
10, ll'rnJ..,...dO_tnl_"..lIuur.a_. J
S~loepcr.on .ahllll r;oopoc'IDtc ~lly with Droller tn obLII.inlnJ:at"Onlllnd t'mmlll.ion, I;lOvlII'll$e in IIn amount,. .nd wllh ~~I..tlble, 1111 f.h~111 rrom time 10 'rinK! to",
\!otenn{nod h)' 9'tDker. 9,,1.;1 .InsuTangc .'ltall protooc &d<clpCt1lO11 "plnat lillblllt)' which m_y 111'1.. in ..,gnnoction. wiih Ihll conilllQl: OrSolell~'on lis. an lIC1ive
Telll estate ti(lC5nscc. Said pobcYOTfl'Oll~l~ .hIlUr)I1n,"ln ancncklrsamanln.mlnttBrvkor:llnd 1I1'Q'...t.idllloriOl corBJlnkcr 1lI'lIn add.hlonllJ ,n...,red find .hall nn~
be :Ituhjccttoc:anoaltnllon oxocpt on A numrnum oCtan(JO)4aYIl prlOT written notice to Braklllr.. ^ certJOCate or'Did ;n...nmcelh_1I bedopoah:cxf with Ul'Okc..on
or hofoR the offCQ:!tlvc do.~ lI."d C:lKlh n1ncwlI( dala orthillAcrcomollt. The~ of said lnlluTance shllll he pllkl 'Pu.......\mt to the: wrIm:1l policy of Brok(ll' ar In lI\e
IIbllQnec thereof, ."eh ~l.hlln l'ICborl'le I:IyBrokc:r..nd Sl'll(lapar~<}T1 in th<llOoDmepropDrUctn aa l'ltCl)' WP1.llcl nOTftUttlY5hllrllln the c:ommilll.'ll<ln rr.>J'.1111 nRr;";''';'., U.l~
10& .nd :lIl1Ilc of.. prvpen.y ..... IR ,.,." rnTth III II.... S..I...pcnoon Comml..loft So;hO<lulo.. ..
.
.
Received 11/28/2005 10:44AM in 18:24 on line [12] for 4659 * Pg 25/33
11/28/2005 10:42 717-761-0923 JGR.ERA E~q PAGE, 25
::;.,c'f>t:l'SOrt.trf'OC5' ttutt.n)' all~l alllilllinWl ~lfproper1)'. ~ _gn:cmcnts,lInd.all ac1JOII' "k.r:n InCDanCCtiO", wirh the real CSll'ltc bu~in~u,"'lllll be In the name
oCOTnkcr. LlIllnp al\d Il.3lmfil)' oontractll .han ho) mod.,..... h Bt'W,)Joer~lhin twcnty.rbur(24) ,",OUI'S 1Iflm-I"OQo:iplby S.lespefIlOI'l. AIII!lltlnp end agotncy em"rMc:t.
,holllt1lx:~nd remain ChaOlloClu.lva'Propcrtyo(BTOIoot'. . I cc:irre!lpon'tlen~,:cocived.,coptll$ (IorOOlTOllPondcnce Wrine1'l. p"'I3.Ii~tinlt InrormAtion. mamorancla.
t1lu, rthotap'tlphs., nrpotu,.hlall.l ~lfLlons.lI.ccountf1\. irirohnft~on. anpany .Dnd II!1 othoriri'tI'U111:l!ntll.dt)Cl.lmvnt:s ol'infonnatton UClll'l)' 111ltu~Wh1UIOltVcr con.
ceTn:lnatnlnll~tlonll tl""dlod by Bn'lkcllr Ot' SllktepGT1KJn.oT Jc:>lnd)', tlf'C II.ruJ ,h.11 remain the propwt)' orI!JrokeT p-m"'dr:d thaI Slll"pltn:un III onliUed to Q copy or
lI!,al;lh in.trumont. and InformltdOn U(JQn r'Cft:tOnabtc rcquCllt concc:mLns any lranRllctton In which 1\elllho I. pcm!-on~lIy InvolVOlJ, The pntic::J hcrclo Ihllll
mutuall)' ap"ro\le IInlL IIgrcc upon aU eorTaIlpondcn<:e f~ lhoofflGl:: f)fIJro'lte.r pcn'tainins to f,",TUaea01l1 hlln.dlc:d 'by SIllIi:'IIJX;nKln, Ilmlllh..1l fU rthcr Aarce OJ'll thl:!
Ihrm. ~ 'b,O......U$,Cll:l ...nd lhl!.ClOJ'l1~ntl, ~r.~l ,onn"'~eU' find otb, ~n:nll~ before they...~ .~1Mltln:d TO cl~fA ,and~.~.~lOmer.l for .!Iii:nllhl~
'.12."'';'~I.._,,,>J.'1\,,~, ....1:..:,~I. ;', ~"", ,"'''4.J./l ,.,..'., . ,
All dClpOSiUl receival b)' S.lNpOt.tOn in thl! (1';n'u'lJeoCil..._1 ClII~.N *.m1acllonqr.')>'IUIW~ahaJl,be Irn'n'!pdijltl:'ly traDllrllTed to Brokerford~itftu..,uanl (0 tho
AQt" 111C1Rule. .ad Regullllionlll ortho RQClI E9tllleCOMm:l~ion IInd theapll!mcntofthc ponleR to fh~ 'nTUIIQtion: proVkl.:::d, hoWC'l'Cr, that UJ'llydCflO:Jlllo be m.aII1"
tlllnc4 by IInothc:rbrok.erofreccn;l pursuanl to tl1e AcC..Rulell apt.! RcIsu1tl,i.ons otlhbR.e.lJ ~W;tl:CommiNion and asrccmentoftho.,.rtiCll totlllrammctioJ'll RhHlI
bit fmmecljafCly tr'IUurmTC>d,go .weh broker with the ap.~f'~a.lo .~.~~...~~ 10 ~~ p~ ~.:~~n,l,s"'~~~',(t.yo"t~ ~.l1d to B~~~. " . .. .
13. IIfdntlIlilkraUon. . . . . ,
8fl1crpiM'lonAlh..Il,ndomniry IInd hgld BrokaT bD'nnJoQ l"roni any.:b.d 1111 aJlli.ms,.COS.....llctblltll_, .T1djudginenta, lncludin"attomoy'. r....ll.r1Ri.nl!l fmm Ihli:' lnlon~
1lonal orflOClkl~1J IICtI OrSI1.IClllpenoR.or aCIA Qotstd~ the lCOpeofSalalip<JrVOIl"lluthorily, 'Wht;m lufpUOTI Ott"a diJlputaan&l.lllXlncomlnc II. trllnnu:tion In whicb
SBlespCI"lInn Will involve'l, the pnrtlCll berclo,.h.U ml,lftlllDyceOpm"lItcwith "ac:h oth..... 'In 4koputQ:II,ot:lIdp1ioft1whcn.then:!1' II el~lm to thcef1"ClQtth..l Sllupot'-
Ian 11.", aeti:d inte.Uioa.Jilly or re<:kkWI;y or out,ide 'ho IICOpC ofSrdt:$Jlcrsoa'll .authdrlty; S.l~qn Ilhan b'elil~ 'die e:ciltl, G.lI.~~elIlInd UllbUhle. lniludins.
ju<l.lPmm1il1 and aWlnd:. ali.llll from tin: db:pute or llli.aa~rm. .1n alspihO.!l orllUsatlcm where Iliet'l!l ill III al"jlJ'. ro tb"'1;f(ee~ lhillSa11llPctlon blls IIctCld nq:IiSllntly,
SlllclPI'I'IOn ,h"n sbare tho COlfa, ~pcm.ca and 1I11billt:lge Inc.lUdi1\;:judsrnonU ~nd Il.wenb ari.m.a: from the dJ~tc or lltISl'tion. Such .hlt1'il'l8shlln he in lbo
SIlIJIO prnportlon ft. the di'ri.o.:.n of e:ommiuiun w..... oJ'woula heve been, from th~ subjelll tl'1lnlJtletion, The JlhllrinS OfI;lOlilI., CJlponHA, ana 1l.I:tI1I~le. IbllU be
\vithoUlpnjud ice 10 Broker's rllhts ofindemnlJlcadon unleflfl choro hu ,",on It. fellulution 'oCthe Indemtlil'iCllltiQn iRU," betwoen the p.l1\ga hCR'to. Bl"OkeT.hall
scleC'l counllc! In rc::prgent Bm):.,"'. IInd Stll~on'lI inf./;m;llltJ In Iltlgall<W!....;!.h I;lo:ll~ borne by the partJas in proportion alll",t forth ~bovc1)Onai"inc to the ~11.I'-
Ingo(onllTll.
14. Drra/"IIIJDlL . .'.,' , ' ,
Thhl Agreem.nt, ~r'Id tho rclalionsbip cn::.atrx'l ht:t'e"by, may be: tCtmlnafcd ~Y(li~or p1l'ty .tien:"ro, witl:l' orwlthnut O"~'I;lJ-'" lIIn.y \i~o u.pnn 'YJiltlrn nodee.' Upon.
tannln.don, till nOSlntl"llons comrnencc:d hy 5111c;sperson .JUrlT1g thl;l1c:nft of'thiJI A~l;lnc:.IiIllIl!lle hilndled thTOmi:h Broker and Witl1 nu:b 1IS:II.rnnc. and
cnnpcnnton by SlI.lan{lOllI('In PS Is rca.-onablc under 1ho clr..::um~nI;lC" ror tllc pmtoodon ohbe in1Cftultll Dr tfaa p.rtt.. to lhe nl.ll.1 a~t.tc 1I'lInlJ.ftcdOn8 lnWllvad,
8111C1'po;1'I'Ot\, upon ~ln~tiQf1,.'hnll r'll",illh BrokC1'with. bnn II ndc ns(oro~l pn:tJIpc:c~ h;:~dSJlmd probabllltT"Tlsacdonl dlllwlaplld bySliIlclP;:non All wdllo" Itll
cn.......pc;tudoncc an~l d.oc..rnentll dOM.Tihodln P"'r.aV'l4"h t 11IIbo~. which" lite dcam~ LQ b. mill ~ r;tr'FlToket', SOld'pOTlnn fu.rt'her lIiJT'OO.1 ChD.tupan tel'-.
min IItton.Of in anlic.;lp.tioD fhereor, he/.he will nUl rvmt.b tn II")' pCrlDn, nl'M"complllny orwrpomkm cmpp;ld In the t'Cal CIltlltc hu&mess Ilny {n(onn.tIOllll.. to
'Brnk~r'l ellon1l;, CIIHlnme"" pf'OJ'lOt'liOll. rrtcee, temu of nggntl"don& D6rBmkcr':ll po111;lcS: or relD.lJot'uihipa with cUllna and au,tomers "wany othbT l"""noldon
concern In" DrOker ItndlorhWhcrbu.lncu, Su.lc.spcnll:m .nlltE not, 1I(1er tannlnCidon O(tblll.Aa;raan,,;nl. orin C6rUcnnpl.tion thenof, TOmuva lfom ''he mca'or
from the oml:lO of Broker I\ny matcrlal5, data, pUlhllO/l.ttonl, corrapnl1doi;t1Ct:, mel or lnfnnntltton tbat i:s 1'1'opcrty oof'8TOkc:r, SlIleJ1pC':non sbnlJ be imtltled l.t"I
co1?lell orl:u;ll'"tllin Inllruman18 pc:nlliftlnl!: lA't tnull~lI;ldona in whiuh SalcspcT$OI1 hu. bona ndc Lntcrellt 01' pcrla1nlnl to CDminlYl ofSale,pC'l'llOn.
1'. C_.mIMl~_ APO- Thrmtll.rilNll.
Upon tcrmhwtion. SlllO$p~r50n'. sbaTllnfcohtmis.i:onaon &I1YlJ'llns"Cllonll when: a IiIllcllconcmct~U1tflhllt tho trllnl8euon bltfl'n"tclo!cd, ,hall, nfter thClel......inS
Clt'lucb tnl.r'iill<<<tion, bc 1>llid toSlllc.spgr.son in accord wilh the SAlespCTllon CnmmluionScheduleinef'f'aolftt l1le tiMO Qftwmin"tion. The<<t.shall blldadu..,~
from such IlhIlTc, hO....l:ver. a lIurvirltn8 o:rh.af'llll 0($ tlr ____'J6 ofUul Dmount nfthc: Usti.nzand/or...l_ aommb510n, whichevcl' ill hisher,
'No~ornm""~itm. ot'h.er t11an for th~ p,opcnie. On wbiob 1111 ~I!ml hall llcQo sijpacd ilud ;llX:cptcd.ln wrhlllJ by the buyCIT IInd m:ltc:ron orbeICJrc: lDnnlntlltlQn
Iha.U,tw/ d.eemcd c:.rnod by s.t~pcmloQ., \lnte. otJunwl.so 118~11n wril:lnl'-' 'Llkc;:wiac:, noconuni",don rOluhlng (ram the IilulnB f(IT ront, oltho rental nfpropo;rty
,hot! bll paid to S~lclpcrson IbUo.....na tenninatlon 'oVith the excep'tion OrDC)ft>n:dsston.t Gl'l.lnQ rrom Ic;alc. fll1JyexoculCd prior to termlUlllon t1..d tn thecxtcrtt
tJ\allC8111e (1.;vmehlsare re.;el ved prior 10 NrMhtllll"..,. S4lo,poMlO1\ _hlll1 nnt. however.sharo I n the C(>m.mlss{ons p.yable In the /'utl,U'cand ballC:d UP"" the 10"'.
optionR or IC::fI'C: f'llym'!IIHIl nnt)'<:t dUel nnd pllyanlo. .
16. nntUlt8tl,Ill' ~ht,
tJron lorml*4ltic'lon by githc1' party, S.IClllpal'3on shmn imrncdhnol;V: .
n) ilIubrnit IllauOI" Qr1Crmtnflllol"> with ~ compleat", llCCOuntins ofeommlutonll, Ii!tlnp and buyer cUenflli ,
b) return all 'Ilpplte.ll, Client/cu/llnmc:r pro,petel)lAla, key.. "nel docmnenttl COnlddaTad p7VpCn:y ofJhokcr pqQu"nf Ia,the proYililcl">. of this A9~IlIlI:
c) rnoWlt wilh Dinlte.r for 'PUrp(lIotlB nf "tt~mJlcina (0 mutually "Sl'el;;' lJpon IIlinIlIIlCaOll,T\Dn, or comml...ion.N due !Ill(! payable:
d) coopl!ntle lQ the notU'ic-.tlon nl'thc Real 'Bstalf: Ccnnml~"lon reiardlna the lDrrninCltlon OrlM 'I'6I..liQallhi.,.. orarQko;l' ..nd B&lolapa...-on, ,
17, ArlIit,..tkM ofDlqu.... . . , . '., '.
DiaawcemcTlttl ordl,pUlOIbeLwcen S.lcrpel'lJon.and BT'Okcr,ot"~twcen Sal~cm lIT\d ft rO;IlIg['a..ll~ a.IIliooiatod with orcontraClad to BlTlkel',,,nd wl1ich
arUicoutof,orln CODaecUon wilh, thorc.J e.stattl bu.iniUll,.ud whichcannolbc .dJ....h:<t by and botween tha p.I1I01 involved,slall.l1 beaubmltlcd Cor al'b{lrflUon in
accordance with ^,rtlw. XIV ofthl! Codo ofBtbic.s ofthe Wational^ucxlatlon QrkaALTO~, ,By thl, ~mcnt liIuia atbltl'lItiem .hen N: mandutory lll"'U
Brokei' and s.rc:spersoa i\JP'OCl fa pT'OYidc a written 118rocmcnt to tile loeal 41$lJQI;lflClou of RBA'LTOllS-.. mllY 00 requind b)' &1I1c;l anociA(ian illIll cnndllion
preq::uent 10 IIrbUrolion. _' Brot.!' and, SalaApoTllnn iI'lP'Cc 10 be ,bound b)' die decision or tha ",Tbhnnlon p,anol or the looftl auoclollon UI' the Pc:nnsylvillula
AIIJ1oclntion otR'EALTORS- which bUlIllntl;rt.nincd tho dilt('lufa ordfs.aereemenl. .Th~ QQnduct oflllA arbttl"llttol\ shall blJ IlOVlJn':Icd b)' thl;l CCldl': or Elnie:. and
Arhitnl(;on M/tnulJIl mOllt t1;ccnlly publlr.hcd b)f the N.Uo....1 ANoclllUon go( R'EALTOR3- prior 10 Arhltrllti,on. ;U tlMCnded hy th~ 10Clll1 usoclllllon
heuing- the: dispute.
) iIJ, AllaMdaI_~
Thtll Ac:rcomc::nt may be llmcmdoo only by the panlQl hUTl!lIo, in wrl.1in"
19. OInenri..e Lit", .., . _'
Thls Agr'eemcnt shftlJ be ~ovarncd by nnd interpretCci pu1'Sua.nt.... tne 1~W1 of tho Com~On~Hh afPcnn:J)'lvi1nln,
20. Su~_nJ In lll'c,...t.
Tht, Ai;reemcnt.llh_Ulnure to l'ha 1:tcnen1 CAd be blndtna upon thl;llJUe:cel8orllln In~rcsl orBc-okc:r. Thil AQ:nuJ'TTlcllt, however, I_ bas.:d on Ihe pot1Ion..! ~rvjCCll
0' SRIC!lpc::lflIOn Iilnd 5&1011,,"'110" .ball not dek:ptc ~ aulen ~l;I)' of 5l1JClIlpcrllon'. rl&l11& nr d.utiCl' hONlursdar ,without n\lll J'lri(t1' wrlUtln conAcmt of Broker,
:iI. . PbIIqy M__1. .
An)' office poUcy or nll~1 and p...txlCdUI'OI mhTUleJ now oxi,dnz or herallf'lopldoptlld ~ ~",encJed 'hlill 'be bjndi~S on t1w paniOll.
n EIItJ"A8"~t. . ,. .,' .:: ,.',
Tbl", J\C:N81'ncnt CJOTUItitutoa the cutire agrcamcnt betWlXlT1 the BrokllT .n.d. SIIICIlIpCll1IOQ, Aad thlDr"O "" no ~rcemc:nIS or undenl1.ndl1'\p run C:apfONecI.
hercun", , '., '. ~"" . ,
. IN wnNESS .WHEREOF. thl. ~rnenl h9.1 biNn "'Jj:~"EItd <01\ tbo.lhto n~l.ab~ ~ttci1,
'j,,! ..... I.. . ," ,,_ , .. '",
0..
W1tne:sa (or .uo,t):
, , ~;.....,~~..#+
BroJc:1lT .
o~"/~
..~_on7 '," .
By
.".
-
~
'By
c'
8roker"h~uh;l CDsure thai Writt~ orne. pa1ki.. dC.llniblnsS<<lcspertlOo'l f1nanoifllDbUp'looa with nspacn to office luppUa. tclept\onc,etc. and" SftlufKJnon
CommiUlon Schllld~le aTe ~CJY:ldod to S.JRpenlnn. . . "_.
CO~12S, Wl-IfT1!, UAO~I''', YC!LLOW, 8oII.l.I!lSr'I'"~N
f'l'N,...YwaNl"'~OOIATIONClI'''''''''~ ~
1Wit.
.
.
11/28/2665
Received 11/28/2005 10:44AM in 18:24 on line [12] for 4659 . Pg 26/33
16:42 717-761-6923 JGR ERA EXEC
UKOKER/~ALESPERSON
JNDEP,ENDENT CONTRACTOR AGREEMENT
COl'YRIGHT rKNNSYLYANIA ASSOCIATION OJ" .I:AI.:I"ORP I,,.. ,
ThI~lOrm ..-m........... ~ftd .",....>>..:1 r.....but_ _ClK ~.__ Lh-.n!wl1lGtlbe Pe'flllql_. "._;".10"' af~~"'1"QIl;8'"
PAGE 26
Form 150-2
This Agreement III C"U...~d into thi.
t...n:in"fter n:sf'=IITI;(J to INl "Broker", and
/.
d..yor
:a.a..L between
'\Vhereas. Broker I. enaagetl in bU&inDtl. ~. a 1'1111.1 BIII(II" Broker aDd is. d'uly Iloc:~.!Iod (0 en88JIQ In the octlvUles of:l HBmkar"' illS c;lefine<l by the
Penn5)'lvania UCQl\dnl ond Rc:ldstratlCln A<<. -"':1 of FobIV4'lry 19, 1980, P.L, 1S, No.. 9. fI' a.mcmded., and
\Vbereas. BrokarmRlntainll one or mol'lll amQ;, properly Dq\llpped with rurnlshlnp,ll:ldnS books ADd olhlJl'" cq\lipmenl nflCellsaTY find Inddcntal Eo tha
proper operallon of IlIta bUlllnlllMl. and mrfed whl1 cl.tlColll GPJ.pJO)'ee., and b fbc.reby sultabla to :ilc:ninB tbe pu.blic as II rul Ofotat.c broker; and .
Whereas. Sall5Apenon illl duly lWlm'od by Ih.. Common'W08l1h ofh:ri.1Uylv.ania ..a. real t1itate "lNIl~perIKJn" or .....lIIo(l;afe' btOko.-""1II ctqnm;d by the
'F'mnsylvanla LlceJlIrin,ant;!. Re&Ulft.llltinq AQt; nnd where., h 1$ doonu:d 1(1 be to the mut1.l.,t'.<Ivantalfl or.:8rokf:,r and SIl.I~n lOen'Mrlhi. eont.Ta~t \lpeon the
term.. *mfe;!ondltioa. hcrclna.horftOt fo:oTth. ' . .' ." . .' , '
NOW TIlEREFORE. f(J'f" add in ~dd.emtlon ofl,ha ~UIU.l ~~Il~a11U atM" PnJml~" hetelo:l. <:ant-in"". the undcn1ligncxl hCo~by ~Ier Into the
ftj)lowtnl antel. of aeto.=.n\lffil:
1_ I"."."", CHlnNlor.
Therelatlonahip of&.lCllpOt"llOn toSTOQri.thll.tgr.n lnd~llndcrltconC2'Qc:toT, tn pc:rforminJ: th...u:tivhics oro real eetaie"salcsp.l'8ot'l.~.u dl;{jnsd by tbe a-I
BstIUe'Liqlnslngand R.6$iJlb'".tion Act{hClroin.~TCt'crrod tQ,fIll "^<:t'');sltlespcn:on slull'be!'fee tqdaVQtl: iiuch .,ortian orhis/bet- dnw.onOT8)', e>fFotu an<laknl,."
helshe aecmi approprililta. In kaeplna with the indepon.dcnt......"tral;1~~tuft", SJll<;:rpcnon ah.ll bc'~pc>nlible fbTaomplotlnlanylTll1nms required by IbeAert
Of oth.rlilw~ ortha COlnmonwlahh OrpCYiln.ylvanb.; Sllt"lrpc~n shnU WOTk an" coa.\mts~lon b".it ami rlI<;e1VO noMlaW}l. trlnae bell\l!lRbI. mediCllI benefitll, pon-
:rion bencllb, 01" profit .harin.. noscate,.local. uncmploymfrftt, S<;M;.inl Soc;vrlty o.-~t"". prlvjJCS~ ~aJlln (wl\cn: .pplk:abla) Ilrall N withheld from Sale~ptlr.
300, Salclpl;\OOO aball flay.l! prot_lcmall:locn8Iftj; reo.. arrors and omiMifTn" lJUlUrance pn::rrd\Jml (c:xcePt a~ olherwise provided herein). DlllltHllltfntl fe:r:1
and/on::nmpuTcrlllooCllll'celJ. s.."'po_ "'.U _'l:M bwaa.d ....n empkl;r-.nda ...pccCtotha -mer.. pcrfoTmMl".,..n....r!"or rcdll'l"allWlt.,. tlll(I..U.'Pp......,.ror
P"rpGl!IIIlI wad<< ttle Wol'kar'. Compenn&n ./\CI.
2. SlIm Emlrt.
S<<lespenon asre<;a to .ct 8.1 aft in.dependent MIlII ..."talo .aICl~aS1lQr1. and llhall faithfully. loyally and 1(lI5.ny enaase hlt/her e:f'foru to llolI, tradll, le:l\K or rent an)"
.nd eU rea) MIIItC 1 i"ld Witb Brukcr. t[UDllo..-it .deUtlon.II~lin..e""(Omon find gllont.l for Bwkcr. and to otbcrwiae promote Ihe bUlinetlA nr5C!TVtnB Ihe J'lublicln
RiII.1 astAte tT.nsactioni M the;! end thD.la'ach or the parUetI nor<;10 may ch:tivo ~h" iTOal~n pro.fit pONtb1e,
3. om_ JilbrliJiIi...
Broker Ihall (rom rim. to thnc40llgnata the: OffiCUl ",Uh ...hl<rh tbe 8alClllp~n al1ail be'allflnchncd. That OmOl;l" Iban ~ -prCvldad with such fllrnhhlnp tlnd
CllI'dp1Tlc::nt., docmed nee_a_II)' at mill dhc:n'ctton or B1'Ok1li'r rQr the JH"OPcropc;l"arion ofll ra.I_C\lUllC otnce. Bl"o1cQr .hall maka avanable to tha S.lallporaon 1111
c;u,rTlmtli.tinp Qfthe omCC>, .nd IIIsreM, upon rCQ,u'lt, to a.dat tho 5al~~III;1n ill\ hll/horwol"k by advice, tnlInlCltiOtl.1lIl1.0 coope.-.tign.lo the extant deemed
appropriate byBrokcr.' SalCJpr:non .hall pay (brlonadllltrlonoe telephone ch....~ and r01'.ueh othlDl' t'orm.~equjpTTlcnt. sUf)'pltcl IIl1l1h.llllosct !(J'f"th I" Al"okllr'.s
wricton offiQCl pollciel,. " . .. _;, ..' .
~ AUm.o~~ .
SaIapenlonahaU r\lmilh hr,/heroWl\ autornobUeandf"'y.lJ I"Ctbttad tIlCptmollWl and Brok""-l'lhatl hava':rIol'Csponslbllityn:h,tina 10 S.IlIUJHrrllOT\', alllol'JU')hlle or
trllntpCK"ladon. Solupcl'lJOn aCnluloc:arryllat>Dity l...unf\oe Upol\ hWberlll\,l toltlQbila wicb minimum liabilicy Iimttll or$JOO.(l()(lfOf'oACh pc",on and $500.000
rQJ"C'JI<;h eccldclftE "nd with PTOpony (lamace: liabjJj~ Iimibi orS30.00o., s.lfiJ8pcrson'Il&Mae to C",mi.h Brnkcr whh 3 CCTtl.Rollteccrtttyl:rl.complt"n~wlth chili'
nlquiTCDlent tel be d~i1ed with Brour fin or beron tho elTeotive data and e.oh nlne:waI dllte of thl. '~mMt, gT "' oth01' t1mefl JlS Drolcer tru.y
lI'C:llSOftablY~~lIt. ..,' .:.",
~. c-",,-,_,,
Salo.sper1":u,: shall bocntldcd to 0 Ih.n:: nftl1e commlllllanSCllmed and rQClOlvod by Brnk1:;r in ac;eorda-noc:: wtar Brokor'lI Salosperson Comm.lllion Schcdllle;T1
c<<.,t on lhe olatoor'hoactUnhltn, S2Ilespar!'IQn to" c:ommlaton (..... otI~ni~ llatlna, plllQh'J8ProPotrly ...nderaanemont ~f1Ul1t;, ow.) or al otherwIse aP1:lcd h:f
th.e partl., In writia~ e. to II pnnu:ular tran,.etlon. 'Bmkcr mG.y altor tta h1elperaan ,000m.l:ls;ol1 Sc;h~"le from time to tLmCl wftho\lt prior nO'Uleanon.
Ravldon. to lho ...bcdulolha'I b~ tnun.d.i.lt:il)' "?plicoblo to alll\.nuTII tnln.Jledons., Thodlvl,lon oreommisllonlll b~Brokorllnd S.leaperson .hllll follow
(lcduC1ion ahl1 oapanMlIaClQOf'diq tn thCl Salaponlnn CommJukm Sr:be4111.. In nocs,", ,han U",kc:rbe 1i0bJ..tQS"lftPCT8OI\lh'rliloYl;\ommbllion, not COJlClC.:_
led. All oOonUI\I,sjon. do:rriv.d from a tr-.n'aclion ahall bill depaattcd wllh tbc Broker al Nqull'Od by the.Act .nd/or RuJ_arlc;l RqulaUon. or the R_I Ellta~
Commu.lon ftJId 5Ubaequon11y-paid. _eonllne to thoS.lcsper.llOn Commillion Sl;\b.edale.. Thia dl'tribUtlbn.ah"l1lakepi*iPQ "I soon.. pntdk:.blc aftoC'Cll;tIlcc-
tton and reod.pl or.uah C1ommJul--. It ill undlClmood and a.ra;:d Ulat IbeI ~.lospcnon'l only renumeratloll fortllo .ervlgcs beina rendlm;:d under 0\1$ Al:reo--
mont i. th1; S.Jeap.!!l"IIan'. .ba.... at the <;om~h..dnnl p.a:id by the:: partlcllla T'CrI' estate tT...n~.ct1onl. .
6. CU...Jibaa. I
fn no !tvan .sholl S.alcllpCffOn 00...... h::n than thcgqmml..lnn or fCltclwhli,hodl by the BJ"Ob.:rwithauttbe prlorwritll;lD.coElacnl Qf8rokcr. IfDTJ;lJr;er.hill1 have
enteTeLI in10 a lpal;\ial oC:HJtE"ael OT IISrQC:Ment ('~lnlR& to 1Ul)' Pll11lcula... tnInsactian. Broker shall .dvllia S.a)_pDr.-on or RJeh ~""iill alTlmsc:mcnL All oom~
mlsstona and (r:es from. par1JCUlllr traa.ection IIh.d1 ba payable to Ihe. B.-ollor. Salc.pet'SOn sboll not be p.raonaUy Uabl., tc) 9rgkoT for Any QQmmjnlolllll nOl
TCl;lQlvO<J by Bro'kcr from ".rl'l.. to a nan.action Dnle.. 'uch'l1.onp~ymlSnlfllllho reluh'afQOlluaion.lnc8nUonal or reeklw CMduct. DTUkq sbaJJ hn", the;
cx<;luslve riahtro deICnninc Wh.,lbor to eomnu.nee litiaa~on to erollout III Clortl:misAic'ln OT fee, or to lC~nle any chlim rot'tn."I","C.
7, 'Elhic.rtd1t"".ftH:f.~,
SIlI=lI!-person And 8f'(lkerllh...1I cantlue.t b\l.slnea. ..nd' "Bul.... wcnkins; A<:'hl;\du1aloa, to malnlllln and to inc<<',ftse thC:8Qod win, bb"ilJCn. profita,and rllf'1ltllltlon
oflhokcro..nd Sltl~:lpenon and each "In88to ClCnfol"lft to Imd "bide. by allla_, ruJ.el ana repl",tion". .,,(1 c:odeorethjg,s thataro blndlnaon, orappliuab!c 10, real
cMal<; brukcmJ and stllleoo}lcI"IOI'ls., SalClpM1Cn Jl1\<I Broer .shall be so;tvcmod "ylb. COCle of IEfblCll nrthe Nationlll Association o(REALTORS", thCl Ae.. Rulcu
and '~"IiUI.\in". otlbe Re,,' E5toiltc Commmlon. US thall_me M.Il)' bg rrom Ii:r:nDIO dmeamOTJdld Or "uppJementcd. tbltco:rl"tlhldon l'IlrJ by-law. ofthcll"lCltl rr....lry
ba.....d (or '\Jo,)b 0111er bl"llln::1 oraunchltlon III may'ba..rel\d ~.,<m). ....1 jh.. ".1M. aoc,ll'ca;uIJltlon.s 01' Oil)' ,PJ,\IUiple lisUnI,t ~rv1ce wllh Whtch B:r'OkeT may "(JW Dr In
Ihe t'u~ure he llffih.-r.<t, Bnllnrr <<nd 901C3P'"ROIll IIh..n l1!lw1n mcmbonlllp iq ~ s~ndln, wit'h Ihe National Aseogjatlon of REALTORS., r"o PODnlYlv"nla
^"~'allo-n orREJ6,LTOR~.,"nd th~ Ineal rcaJly I)oilrd OI"R'IDCi"tinn dC&llioatod by Brukl;:rOT IUl millY be acl'1Xld upon by tile. p*rll~. Whcnl!"V\ll"r 8l"Okar~. n
mClInbm- orClny TelII ellltl'lWoOTJIUn'u,Uun wh!l:h rlCoqulrc:a me:mbcnhlp nf'$llIfcspa....on in aaid (lrganiz;..tlc:lR.lhCln S...1cspc:1"IG0 '-&"'''' tnalholshlll'lIh~11 bee:um""
men\l;loT und pay fcG.II ordue.a requlr.d by .uch membCl'1ihl-p. )lrokerand SnlellpGI"IIon agtcc>to be bound by lh. nll<;. and rcg",latlonsofsuch Dr,snjzallonll per-
l.l"lnllo <;thies and "t*l'1dOrda nr<:onduot ..nd pt<)cGd","" SIIIc:.sper.acm ./I.cknowJodac." p(rA.GtI.ion oralluTronlCK>>pY oflhe Pc;-nn:l)"Jv.nl. Relll EII!tliltr:Llcen.ina
lI:rId 1togistnUlon Act. the Rulu "nel R"llu1Illlo1'\A or thCl P\:lnn.1'ylV8T111' RUOII B.tr~lO Commluion. and the Codg or EthlC$ or the .NlIlio".1 ASlocl..t1on or
R'E:"LTORse' ."d ltp'(:CJC 10M aprorlset.l or the PI"l'WiIl;on. t,hcn;:a(,o thlll SuJeapo:::Tlon will c:on(\uct.l1l1<;tlvili<;" in 1I ma"ncrcomllll!len1 With sueh I......... A,ul
e:lhJC;l. t": \. " .
,'...,'8.~"'..c.lli:n~_iD_... _:.-'~
Salo.~pcrsb~ IIbl\U p.lly1h<;co;t of any roal, ClJt.t\le Hccn:w reo:jllin:d by IhQ provialon. or;any hlw01'rcsu1atio,,' t>rchoComm01)~ltb ofPcnnaylvanin. SalO1l'C1f:1oft
an.U IUnh.,r'c-nIUrc: that IheraquiremCll"lls for.lio,,:nallTo"~ !I!'CDI Ulllatesalc,pcnon b)'t?leCommon_a1thQfPc""lII)'lvDuia IU'CsDlbll<;d in .ve,," n:lpecl.inl:hlc1~
Ie. the d~'",ly s..t"f~c:uon of'mandlltory COntinUing od1,1~il?naJ rlilquiramcnb, Salelpernnn shaIl p"y :.11 d\.><SIjI for membership in the lI..oc:llltlOlt8 llat Ibtth in
tbopreCOCldlnCP.TJllUDphnfthllAgn:cmont:ln "tlmod)' fuluoflllnd Ih.ll PII), ell !JUles as InA)'bole\llcd "pon inoqmo oTpro(hu::rivlty t1y the I'cdcrnlliJOV<;mment.
'h.lnIClm~1 Raven..e S..nrlr:o:. lhO_Cl)rnmOnWC"ltb orPcnnaylv..nla. ora"y IGIlal municip.ll~or ....hool diItTh;corolh..,..uch '.<ll'i-n,r l:l uthnrll)' 10cllOdt'l'l.l but n(tl
IlmJUK..l In 'Il,\;OI!QC U1X08. OOC\.IpllllQn anel Occupation priynclSp IliAC*, pot capit.. UlJlCIo, m~Bntilc or bualn<lll' prlv;l~ tnACI".
9, A.thurlty to CPlltrltcl.
SalCIJpC:T.tOn .haU haw,no aUlhority t~ bind, obltlJflCO 01" G:UJtlmit .Broker by AQ)',prmnis. OT1'CIpl'olt~ntl;ltig,n. ul!'),lllH spectt1cul1y authoti.r.ad by Brokor In writl".'
f'TO':'ld<:>d, howavo;r, that$ltIClpcr~ .h..ll11nd 111I he:reby aiuthori.r.od tOlllXClOUIC;/I,linll agreeml;lll1.. bu)'Cr a,g.e;n"'y..,OftlrlletJ!.Ia.afl(l marulBCIm.:nl.cnlltracts .v well.;
a~l a~"lO:ndil.and./lerei1TQc,;nts "'ppurtel')an11he'/"C:to f"oram;t on 'bclutlrorBrokorwborenoi in c;onflict wlfb B"RJkEr'lI .Jll;o\:y pnll;1l~flnd J'l'OYidc:o;'llhnt Ih.;<;om....b_
.Ian I"valved In 1I11C1h 1r~tull"t1on iA nOlles..h.n Iha1:('Iat*",,",o;d fOrltloltl;:h Iran"actlQfI nr ,.rviaa \'1)' Brukc::r, Prin"locrnlc:rln~intn Itoy 11Ieh cnnll""C1 oral'i~-
rTIont. S../e.p".....on .ban dcrlrTnt"c lhe .SO:f1cy and ft\lo1nRgeMpnt prlilotiOQ;S orBrokol",
l(), &To... _d Om.",__s '--.rCW.
Sale.spa..,on ,hall GOOpel'oll1e IUlly Wllh Srollorln o'bt.;l1ins"...-.;on and omrnllllllolll covc:ragor in an a....ounl, ......" wilh dcdul.<llblo.: m. ..hall rn>m lltnd to rink! h.
dCTermln<;d b:r Rrokor, Sait.! ;n~\lnmco: ah..1I protO:CI $IIlcstU~J"n'n .81i1Inllli.blllty which may llrllle In Mnn.....tiort with th<l ".md~c;f nrS..IQ$lpC"f('ln a.lln nc:tJ~
Teat.state IIcem~"'9. ~.Id poU<;)'orpgJl~t~ dwll c;o"E..hl.n ...dDI'$CI....an1n.m.in. BrvkClrllnd anytlUblldIJlrie.aofll:tok.o-r.., a".ddltionllllnslJred "na lIhllll not
be subject toellneC!11ftbOn e~.,tQT'l 0 mm'mllm nftee (10) dAY. prio'rVniUon nallllF'Oto Broker. A r:tutfflelllteof .ta'cl hUUnllHllll .hllU be dl!". lilted wITb Brnk,", I)"
<.1'1" bef'On:llbcafkc:d\lolr dllto Dad C"l;\ll ranCWl\1 daw c;oflhlll A.Namenl. Tho; co.t (If.aid bt,uTanco .shlllt bc paid punuant 10 Ihol'-nUon pnl~ ofBl'Qkc" (II' 111, tho
,..hscnec IhCJ'll<)f.luc:h cu.llhtlll be: l~olT\ghy DrCl1ccn1"~ SIIIo'p\;rson in Ih(',..II....e r>ropDnion eA thr':''W>::l\'kl n..rm.U)lltbal'Cll,,\ I..o",o,",oc.lollloo rt:li1J11IJl. rM~ lol I In..
ng.."d.,...Ie: ...r.. pnt('1ITt)' IU l.s, Mlt F.,db In thl: Snloapcninn c.:ol.nmhlilon Schl\ch,Il:. .
.
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Received 11/28/2005 1Q:44AM in 18:24 on line [12] for 4659 * Pg 27/33
11/2B/2ee5 18:42 717-761-0923 JGR ERA EXEC PAGE 27
... ...-.._... __............. ~........~................. ~........u. ...... ...."""..
Salos~on ltCt'OOIIlhltl un" ~nd all II.ulap O(prDpCTly. lllsericy a&:R<lmClnts. and all action. Inken in oonnect:lOft ~Ilh the 1"Ilt.1 us1.fe b11IJlnCIII, Ih"JI ha In Lh~ narno$
orBrokcr. UMlna~.nd apmcycontTllctll llh..n bcfilcd wtthBtok~rwtt~ln ~n,tywfour(24) hou", allerTllOcllpt by SalClperson. Alllhnin!9' IInd "8I:nl!;,l)ll:OTltrnell
.halt b,; and remmn the CII'glU5lvc proputy o{Bro'k.er. .An corrclpoodenclII receive4"COP}CI orQOll'CIpondenoe wrlnelt. pIlU., Iilltlns'nfomuttlon. memorandlll,
nl08. pbotop""ph8. ",pam, Jq:Bl oph\lon"'.ClCoundng Inrormadan, Iiln~ .qi ..DdaJlotber InctrumllnU.documcntBor mfomUldonotllny natuTa whllt.olnlhfl:r.:o"_
ORuina tr'DnlIllctK1ons handled by BrokCll" or SMlosp&:nIOn. Of Joll'U..Iy; Are IInd "h,.J1 n:m.alo rhl' property o!Broktl.r pJ1;lvldgd chrn SlIle.per&on lA ""titllXl m .l'.OJ')' of
such inatrumcmbo. and lol'orm.adon l.lpQ" n;qonltblc roque.t .:o~lns lIny 'rtms....cUon In which "hc/dH; hi personally (nvolW:d, Tho palrtiC'fi hereto shlll!
mUlulIll:r oP'P"'......~n4 "crce upon.n go~pondc",;;c rl'Ol"l\ thcoffica orDTOkc:rpenllinfnsto lra""....:;tiQTI.llandle<l by SiIIlesp1J...on.IITld "h..lll\l"her{\~on the
fOf'hU to ho u."d ./Iud ,he eontenta of ..1 oroJOlrllletll and otbOl" forma baton lluJy arc pn!llcnted to oUon', And customer. l'bt 1IltpJatuTe.
12.. D.P<<JJIS.
All dcpollit.l ~ivcd by S.l"'~OT1ln the: couTll'e ofa TII.1 ClIW.1e fransacttoft of any nature .tutllbel imlDCdiately bamf.......Qd to Broke:r Fordopo.ltpUl'lluant b::I tho
Act, tb.. RulC:lIIl.md ROS\llatioD"mlh...lt.cel EsutteCommwlllon !lncl thc:agrecmentOfth'cp'llmcstodLelranaac1ioo; provided, t.!owevgr,tbatanyde[Klailtn hen1atn-
~tn~ by .ootJterbmk.;T <;lfl'WOrd punulI'IIt to .he ^c:t. kules an~ Roaul.titJnl of'thG Rcal EJltatc Com.mi"lIion oIInd aarc:e:mnn oft:he purtlOlO tn. Inmlill\~lon shall
bo lmmedi6tt'J[y ,,",n.r~ to .uch bRtbr with tb" 'l'Ip~~~-:~..n~t1~ u,~~~ ~f"'~ ~.'~~~I*~~.~ ,~.~t ~nd '[0 Bro~~t'..
11. lalhlllfllll'k"ltJOlf,
Snl_pp-.on .h.1lindemtliry8nd 'hold BroIccrbnrmlCIIR f..om any nnd'.1I elatn'l..d:llltll..l:la"nIDClJ~'..ndJudamenrs.lnoludins:.ttm'ncy'.. rces, ftrllllin..Fl"Om thlllntvn_
lio;mal ~l'NC:klog aw orS.lcI5PC:I'lSOd, oracb our.lde thO/Jl;l(1PC otSII.esperwon'lIaufho;wlCy. '. When litiption orD dlllputa ...lsclconccmlns Q tl'llnaaetlon tn which
S..l~'pcrlon w.." inva1vod. tbe partl.ca horem Ihan mUhl"lIy Q'OOPft'Bta witt.! oaoh other. 10 disput.c. ori!t1gation,whan: then:: I.. '" fil:lllllm to Ih. cd'{eel tb..ll Sole5pc....
son hAl aclCd inWnticmally'or roc..II:1oul)' OT ouQjctc: thc' .KOpD orSIIIOlIIpcrSon'I_.uthorlty, S.atc;(pcnlon .hlill bCfl.T the com. CJq)en~ and JiobilitllClllm:lurllrr.s
ju~ent. "odo a_rd, arilln, from tho;: di:Jpun;: orlhi."tlol).. In dlliplltJga 0'1' ltt1:ir:.lidmi. whiR the:rte 14. clI.4iri tQ the ctT=~ that 81llecperllon bIll! aQtCd nesllsontly:
S>l.lc:..pt:non .hall 'M1'fIlhu DOf,'tD, IIM-peUHI Dud Ihibilitlefllnc:llJdln8jud:mealll QQd awardlllrlDinal'rom .he dispute orliliSII'tilln. ,. Sl.lch sharinl' .hall be'in thc'
.ame: Pf'OPOI'Clo2\." lhe c;I;vilJi...n of oommi..io:l\ IN.,,,, OT would ha~ been. from thl;: aubjpgt traDIa<<:don, ,The.llulTlng of"uo,ts, e;J(pgJJ:tC3, and lIobllltlc.l.llhllll bo
wJUlOUI F1"CIJlIrliQO 'lO 8roke:r"1l rl.glU' nr indomnilioation IInlel:l thc!:TIl h... been 'II tVlIIOluffon otthe Indcm nlnoMtinn h"uo b<;l:wecn fht:Pllrtl~ hcnrtu. Brflol<<:r lIIhall.
lIl'lIC!lte()Unlllc:l TO rcpl'OJoal Bl'Okc.-'5"n<;1. s...1~pel"lon's intel'Ollt'.. In llt!ptlon with CCNiU borne h)'thoPllrtl,;a in proponlon ".leI: rO'l'1h ahnV<lpcrtHlnll1lJ to lhe shar-
in~Qrcosls.
,104. T...........uo... ,'" . " '_ .', _ ,'. ", " .
Thi.Acraornqnt. 1Ind tile RlI"d9'":lbJpcrg.t.;d 1I1m:1,))', maybe to+mlnatM 1;lyoti:hcr l?Q"rtY~ With'nT wllhout,~'"se, afan)' ii"rJi. upon wrtulIn nntlcD. 1Jr>ob'
tenrdn.lltirlon. oIIJ1 nelotitltioftll crin'ln"l_lmccd hy s.,lhp,non durin, the Icnm ofthi" ^crucm1ent shall be h.n'PQd lhToUl1, brbk'~r an.:) with lil.lch .o""lxtlln.,., .nd
1l000pCTatinn by SlIllclperrsOU .. o. ...w.RDn.blQ \lndr;:r th. ~iTQum'.C""nCClt for the profectlofl'Or01rdnklrc.sbl of the! plInl'~ lb ,he: J'C01l cs.ale tranlacllc,lTulnvolvcd.
SlllcflpOr$On. upon r.rml.natjol\, IIha11 rumlJh B rokcrwlth II bOn" ftd" Iilllt t1r"n prvjp:~.Jaad.'.anclp'rObir.bla lriiollluOol 'fl'nsd,8:ve\OlMId by S6ICltpDl"lIC'm alii watt /I!J 11I11
D(lTT'Ospondmce and do!:uTTlcrib described in Pan:r.ahll.ph 11 ..bovc. which are doecime4:to l;i:e .he,pl'O~ or Bro'ker.., Sa1o.1peniDn fUrthcr I\KfGgllllhat upon ler-
mlll11tlt;m,orin onUcipation thgroor, l1e1l11hewt11 nOl Fu",t,h toanypeflon, Cirtn,COtnPlllnYQHIOfJIOf\\llOncncapd in the n).llJlItate h~.IIln<:lll' .I1Y Info"'lll'ion Da tQ
Brnkcr'. t:llents. CUlIlonUlToli. PTnf'ClrtlOR, prlocl. Term" oCn..gotl.tlon, noOr T:IfQur'; polfe:i.'crr'ral.ll;;)nllh.lln with c:l~ntl'and eU'lqnIVTll n<n'f1ny ot.hc:-r h;rotmntion
l:lonocrnl"B Broker IUId/or hilifhcr b\lllncsl. SlSlOIpUT'IlCln ahall not.llner u:rmlnnlicm ofthilll As1"c:l:mcnt. orla COtlhm\pl.Ii<>.....'h........f. """ove frOm the files o--r
lTom the office of DroMT IIny m"~n1I, datn. ~lIbjjcl)'llm..., COTTCllpondence, file. OT InfonnaUcm thai Is 'Prop_t)' oFBrokcT. ~"I~~~ ..hill) be onlitled ta
copka of certain infltrumo.ntl penainl11& to tranaactlons In which SallmpCln;no hll' /I bona fMe Int_lIt or ~mT..ining to ollmlngl ot Sal"penon. ,
u. Co.tuoI"""....lfI"OIInnnl_lfi-.. . . "" . ,'. " , . " .
Upon termin.tif1ll, Siil1csf"=",on'slhan ofoommllilll101'lI on any t,.anSllllCtlon.f1 whol'OfI St\lc'conlrllctd)l~llll bu.tthc tn.nSflcliOQ hu notc(oH;j. sl111lL, lI11eT th.. "lOlling'
orsuch lrw.nRlletlon, hi: pilW to Sulupo","n In arx:ord with the Saha.plW1Jl>>l Commi.sllon S~l\ed\J1Cin "I'f'oct.tthc rimcoftuml:n.tton. Then: "h.1I hc4cct\'Ct1I>d
From llIu~h :ih.al'C. hQllRvcr. Q Krvicina: ChIlT{tC or, OT....:...:.:..-~ orlb. DmO\Jnt of the JlJltin8 Itnd/or 1m3 COMMis~OI\, whiab"vlIT;. hlgh~t'.
No CQ:mmblldon U1 IlcT'1h.n (or tbcuc p~crt:k.I: on whlch aD 1IF0omcm' hili bQcn slgne(J Ilnd Ilcceptlld In writinl b)' lhe buyer end lelllOI'OI\ rwhaforc: tormi'mltion
IhaU l;nldll:lClmlXl oara~ by Saloa~Tl'Ian. unlCSI otbcrwble.~ lin writlo8. Llaw1le. no commlllllon TIilfJuhinlJlrom the linin. IOf'~n" O'l'thonmtlll ofpropcrt)'
Ihall be paid 10 Sill_penon followin.. klT'11l;Mtion with ~e_ecptlDn ofl;lOzomlulon& Ilricma'[Ta:m 10a_. fUl1yOJl,OO\ltod ",",or to letn1il'llltlon and. tn the l;,X~nt
th"t 10..110 pIIo)'T'lontJ an nceivtd prinT It) tlWTnlnarnm. SalCllSpCTlInn "ha;!1 not. however. share in thcenmmisslcm& payable In Ihe n.ltuTll and balled lI[lnn tnc lcmsc
optlun... ....lo...c peymenw no, yetduollnd paYllblo.
16. 'llrnninlN1_rro.t:edunl.
UpOn Ih:Tmll)lI~oOn 1;1)1 d1ller party. Sa~rlIon sbaD llnmodtalul)'; .
.) $ubmit ft lctt,", or rermin.tlon whl. ft c:omplete a~unting of commissions. fiIIUr\8ll1nd buyer clic:nu: . .
b) relurn aU lupptiC&, <l1lcnt!all.to1ocr prollP~llbta. kc;yI:I and d~lmcntl conaiC,e1'lll1 pl'apOl'1:)' or Brokgr pursuant to the pl'"Ovhlitmll or Il1h AIt'Cemcnt:
c) meel with Btoker FOT PU"r]7QiKlII or ftt1cmpt'Q& to muftl/d1)' .SRIC -ppon a Ontll a~tlnA or O(1mml_ons due and. payable:
d) ~nlIl~ i..... lh~ nc;>tllicatioD oClhe Raal E..tatc C'ornml,.Lon t'OIll"dlna: tho tarmin"lIon of lhi; .rclationl1\ip of 8ntkOT .nd S"lc'por-'011.
17. IlrWtr.d_ .I'DlBputU. . ..'. .
Dlli1II~monb m-(\I,pYfClll 'b~""Otl Salcaponlon .nd 8roker, orbctwoetl StllCli'pc!:Tlion and. 1'1l.tntaU Ucauee auodatcd withol'lCnntl'llcfcd to Broker, 3nd wlucb
IlriMol.lt nf,Dr;n Cl;IJflft",Joa wilh, 'be n;al c....k1 hUlIlnclll:'. and which ~an...otbc .djllttcd by .ndbct:wec:nfhepartles Involved.lIh.1I bcallbmh:tcd lor IIrbl1r1ltlon in
accorclanc.. wilt! ArtIcle XIV of the Cod.. of lith i_ orlbe N.donalANOGiatl.ol1 orRBALTOR.P. Sy tbisAal;reo:mcntllUlll DrbltTlltlrm .h,t11 be m"odllToryand
BroJc.cor and Sall3peT'llOn ...... to p-tOYide . wrin..., "1P""ment to tblllocal "lIOCl..th:m of 'IlF..ALTORs- as lU8y be tcqLl,ircd. by sIlld lI,socNirion III a col1dl!lou
[lJ'OCpdel1t to l'lrbicnttlon. Srokllr tmd SaJ<;1IJ'Cl',ol\ alreelO blO hound by tbe dl;'c:-.ision of the Il,bittalion panel nfth...IOGl'Il f1ll1ocu..tkm or tho Pon:naytvllnlll
~8oehltJQRofJU!ALTORS. whfch 'hascntenllln.d thodllllputa nrd;."&:>:'9Cm4n1. The con-duct oftrn. arl>f1~tlon ,ball be gowrnltd by IhoCodonrEthlo. Ilnd
Am~",doD Ml!lJu.1 moll ..ecantly pubJlahed by the N.ullonul A.noeiation of REALTORSl' pri01; to A:rbilntion, a. Il.mC't\ded h)' th<: lOCI" ",sl)Clllllon
hCl'uing lhe dlspule.
l8. A.......,........
ThlR Arcement mil)' ~"amended 01'11)1 by Ihe panic. hcreto., In writJ-n&.
19. G6twaillll z;..... . .
Th!.. ~gem~n' .ban be fIln'vornCrl h)' IInd 11'l,11l1"p1'eled l"u'1l"'lIInl C<o th_e laws ofth<J_Coium.-.inwclIlth ofPennJIy1valli".
:l:O. 8___0,.,. JllfctroYt.
This Aa:reoamcnt Ihllllllnuh!l to the bonl;ftt.ftnd 00 binding upc:>O- the 3UlXlCflllOnl in IntaTQS1 orUrokc:t. Thi. Asn:emenL hOWllVOr, is billed on tbo pel"lOftllllWlmeCl
tiC SQ",I~enon .n4 .'Sl'Ile:l'pot'AUn .hllll nat delegate or .....silJTl tiny of SaJ""Pcl'1'lOn'lII rilJh1ll o:r d'4CiCIII b",rcunder witbollt lllC'P~rWl'ittcl1 conclnt of Broker.
. :ll,. ',A,.Rc17 MllnuW. . '
Any omce pnliCl)' or rul.. And pTQce:dl.lrnl manual o~ I;IU,dnc or hcn:;.fk-r adopted or 'T1Iendod shan be blrtdilllJ QIl the parties.
n' Ilrod,. ........_H~. "'.
T1l11l..^8reen:l*nt C(>1).ut"tos the ",,.tlTO agreentertt b.,twecn the Drok"r and SalOllpllnll:n1, an4 thore aTe no asrouPllents or "'"dQ11I_..ndlnp 1'101 c.:prclMCd
herel1n. "
IN WITNESS WH'BR.EOF. thia Af:r"ocmcttC hili" bcc:n lo'XCl;Uted on'lh..'~PIO 1tnt .boVc written.
Wi~(9l'.ftllclt)t
B,
Brokor
~ 0./ fI
?)" ':'".~~ --=..~/.
I:.'
WHnclI':
B,
8aleApomtOO
Broker .hO~lld"IUl'"Cllhlll writtcm oMeoAp)lt.;icl c.l<PcrIbtnaSaI"",personls .ftnancial ObUp:dOtlIl wlih 1'IllSJMC11b CtJlioi. .uppllc. ICI.phoJ;l~ ere and a Sill..
COmmiqton Sc:lted.ul. lire provldoclllo Satcl]M1"I01'\. , . " . ... p-
COPI,S. w"'~ .ftOKlft: 'l'1u'OW. &AUi......IIlON
~HlI'1'I:W./11I"''''S.OQ.I\nO~O~..IAI.TC:...,.. ~
'0'"
.
.
Received 11/28/2005 10:44AM in 18:24 on line (12] for 4659 * Pg 28/33
11/28/2~e5 10:42 717-761-0923 JGR ERA EXEC
PAGE 28
BROKER / SALESPERSON , .
' INDEPn:N:DENT CONTRACTOR:AGREEMENT '
Thilli:..'n....QfI''''.ndll<ll ...d ...lIr..,....6 lbr, "... .,nl r'lI1r\o:;,1'" III "'u !>y, Ill. _........ .('h~ .._."'l....uni. "'''oc~fh..h ..r,R.2^L TOI:t", (P^,'-).
',I'
ICA
Thls Agreement f. ~t~~d'l1'lu t~I' (dlll<<) ~#J.LE'f'
Jlcre1ndlcrJ'II~d lu ru "Bmxo:r." nnd -::r......l'~ J.\4I!n..t
.
:E9. Z~c:ll~
S".:(b.......;:JZ?- . '
b_~~~ :TA..kC~il ~a./k
, " .-: ,hcm:1nn rekl,"=d It' AI '"SAh'"","on."
" .' ' ", .
Whereas, Druker if; cngnclKl Ln bI..inen itS: '" RCftI ESUltl: Dl'O~ ImfI i, d~ll)' Il~~ tu lmsnga lrl the j\~livitio. (lrn "O\vkllr" N ,j"rtnod hy the Pel'\l1l)'lvlIllln I..h:<mR1nS
MdReBi..lnUion~I.Agt"rF"b.nuu'Y 19,198(), P.L.l.5,"No.9,f\SlUnandbd,IIM .' " .
Whereas..BnJkcf InninIRi.n. gOO or moftl om, ~ prop.rly equ~ with [Umi,jl1lnllllo 1i,1I'll" boClk. nnd. o[hcr'';qull1mi:~1 neoa~ nr.d Incidci'lnt to d'~ p:rcpcr ('Ij.1CJV\tiah
orSllkl bUllnr::~,. Nld stn1Tod ~th olcrJIXII arnploymal, And i. Uw=reb)' wil.blc to 'I',""ln&:: the jiubllo., n fC#l1 c:Rnlc tFokc::; nud .
, Whereas. SIlI"'ponun I. duly 1I~1Jd. by the COI'tU'f\onwanUb, uf PCluuYlv~"I~ 1\1 a."';' o.."llonte' ""IC'PCn:~l" OT "nuDcl"ra t:llok~r" lIS ~t::4 by lha llll1Dl)'lvlt1\11I.
Lic:dulk1U and Rqlslmllon Ad, I'II1d wh_. It III ~'d,;IQ bo 10 cbc mutullllldYn,l~U\U;C orBroIrcr l'nd Snlelp,,",oll.lu onllllr Ull, ClClntmet ~pcm thQ lc:l'm, 1Il1d condltJoM b..,.",.
~.tta m forth.
NOW THEREFORE, fbr And In cou.idvmllnn ~r U'U lm.lluillll,o'.-ennnls nl'ld proml5o$ hOftljh pu".....~ei; r.tl1l1.1"ck~IIl'l';d hCfClh~ 01'11<< inlu m,? rbflowil1Uo IIMlplcs uf
~t: ."
. I. '"dep,,,"..f Cnnlrncm,., . ..
Tho ...Inti_hip of $nlesporton Ul arum is thnl uf...n Indal)i'mkrnt l!.I)Tlom:tor. .In ,plll1'onninlJ Iha nclivhh:. of fI,"",1 CIl..'1te "l'llJNpIlJ1lOn" AI dcfmcd by the: Rani Blll.'UC
Lie.,..,,,,; lAd. koplmilPTI ACl (hc;rcullIftlrr rcfbred 10 ns "Act"), '11laftlOltlm 11..11 be frc:. ~ d..'Velo .uuh poltioll ofhlslhcr UI\u:. cmur:lD'. c:l'rbI\S Ind Iklll, Mile/she d.i=c:naS
IpproprJfUIl;. In k~i:pl,; wllh chc Jm:lDpendenl ~o...trlllctar "tIItU', S"le*l~lIr'on 111II.'1 llo n:rpallalblc for eumplatirJi, M)' .tl'idnlnl) rcq.lliCd ll)' I.h~ Act or ulh.. Illwt of lho
Ci:ll'lulIMWOllllh of ~'Il)'IYMlfti Snlll-tH:1'I011 .MIl wInk r111 II o:.ommiSlllc:Il.1 hllSlllllnd rc<<liVII Iitlllnhvy, fHn,u:e heno1ilS, madle:1l1 ~ofiu. Vllllllion hcndils, gr pronl ShlUing;
no .,.,.,. 1!Kllo1, WMIMpIe)'l'rlC!nl., SUllln' Scl:\lric:y UT bUMOU .>dvlIqKC Llxc!I '(whcre.npplloRblo) sJllllI be withheld. J'rom Sa.lo,paT'Of!, 5ltlcsl~O ~1I1l p.y nl! pv:oros.s;I","1
Ikllftsbll: tou.; IIr'(QI'1I, IVIcl omI,lIion. Jn$'l.lJ'lUlW p,.,..nlmus (exl:Cj:lt A& otI1~1.. ptlwicial;l hCI~tn), muld-lbl1ntl fllet lUldlor i:OIlIp\1lor lieU-, raol. S.IC:'llClnon mAil ....I ~II
trnt,m .. .." empklycc win, rap.cl Co I1M!' Rrvlca. partorme.d herellA<<:tor (bt" fedel'lil or ~ftlt' I.~ pll1'1l0JC' 'Or tllr 11'01'(>(110' Ilnrlcr ;(hllil \Vprkl!n' Compenllltion ^~.
~, SPIn Bff""." '.
$Id",.po;:non la;r'lJGllo 1I111 AS an IndI:\lOl1(lem ret\.1,",We Mlol'IMrktl, ru"Id ....,11 (Illthrully.ioynlly Md lo~l1;ye,lWIIc hill/her C:((~l"S 1\1 Scln, btLdc, ICItlIlI or~nln.nYflnd nil rCIII
t:llta~e Ibtcd. w1ch B1"Ob::r, III sulic:k ndditiom\J Ihth\SII. I~Qnoft\Otl ru1d lllicnt.s fur B~k"rr. I\Ild 10 olhc:rWI.K promote,.lha bu~ll'le:l~ of lorvlr\1J Ill" rubl... in feII!Il. "''''r.f VlInJllo-
110m to UlII cmd'lJInl CNK:h of lhe plll~lo..I1W'11to ~y 6crivlIlho ~ntllsl pnrfit pOIl~Il*, ". .
, ,
3, O.JrHl#Flrr:iiltll!J4 . ,_' ". i. " ,'.
BlOb:!' dWl 11'oI'D liJnq Co cUne d.ni&nMlil che ofI"_ with _hich (h~ Snl<l'l1f'''",on s!lnD bo "',!IOlllfllecL Tl'lnl otncc di:o.lllloe "'ru'Yfd~c1 wilh such fbr7llthinU' ID1d cquipmonlll-l
d~ :n~USllry al the ~n or hrb.kc:r fm-lho p....pcr upornthm of" ~I Callie. ome.. Brokar lIhu1f JrVI.Im n.vlilAbh. lo the &1e:lIpDnlon 1111 cunoenlli.dnlJft or!.ho: off:lClC,
N\d ...... ltPon "'CJUldl. la AlllItl. 'he Slrdcollpcrst'n In hlslher ....ork by nd"lu.I....."ecJVk\o IU1d CC1Oj,cl'llliol1, to thrl _1C;lU do::cml:d llPJ'lmpr1nCO by BTultl!r. SAIc-p"'noo,':mn1l
pay ~r long dl~Ano' t.lllpJlOnO chflrlla. nnrl lor .-.!.:h o!hrn' ronns.Ilq.J~CI"\L, ,uppll*!.u .twll1 be: :sel. ftu'lJl in BI'okc:r'sWliUlIll ..rtk~ pl)llt:IOIl
of. :"'_tw'lfHit. "',
&l1-.plll'Rm !lhlllt fl.~l.h hl.lhcl. <rWl, l'Il,lol1sabllel ATld pny nil ndllled e~rc:nllC' find Brum mall hnvo no ~".lbiIlIY rclllling to Sn[rup':nll~n'~ IIntlmll:lblJe.',"1' ll'AI1$portnu..""
SlIllCJllcnoJl qra.s to oRnl' 1tR.b111ty tn.Unmlll.l \lj)OII hblhCll" IIUlnl13obJla. with ndllim'~ll1 Jillbilky l\ndl,l: ot $JOO,OOO.-"r ~ p_ a11d .5'00.000 for clMlh IICCldant and with
f"OPIlI'tY dun.lJll llnbllky lilJl.ilS ef$5Cl,(I(I(), Snlcr:!lp:,,'n nlP'Ces 10 .fbnlish 6Jookor ~ilh 110 CCI~lklllc costlf\t&;S DOI"lf:t1II\1~\l' w.ith !hi" ~qlllil'..m..nt 10 he <kpo:ttltad .wlth 5rokw
on tit befon: the cp'ccti....c d.IC nnd efl~h. r<tl'twlIIl dalc of IIIlll' Aat-mllf\l, ~ nl other tlmD~., &rokor tMy ~!,b Y TOql'lnI.. . , ,
. ,. CnmmlDl_". '. , .' <1""':"",.,:" r-.'..... .'. " . ,', . .
Salc'llGr'ltOn MIlII ~ 1II11tktac110" .I\nre of the .:on:mu7Slons l'lImed -.nd Rll:ulvod lJy l:i1'Qkcr In nOOllrdnn,:c with Dn>br'. Snl~~I'So" CommUllon SI;!IlKlulo in crTCI:( Ulllhll
dRlc Ar &bel fI<:-t ..,tllliny Snt..lipGrson 10 II C<DAml~1\ (e.a-. oblni'llnu lI.tina, JlIILl:b1~ "....~P'*i'tY u"dar~IP'<<mcnl of>l"II:, "'l\:.) pr II.!! ulhcrwl.1: nlP'~ by the.pcl....11lI In wrillllll
aa to n. pIUtlcu'nr lfMSl'IClbJn. Brokw mn.y nilei' 11:1 SlIle.p:tS,m Clmunil"h'l'i S..::hcdutb !'Tom dme lu lime ....lthe:.lIl.prior I1<Hitk:Rlkm. ROviSI?:lns en Ihl! t~Gl,iLlIc ,hAil be: ilnm".
di~ot)' IIppllwrobte to nlll\1lu~ tl1UH'..o:liont. Th.. d1vl~ioll1)rllonvnllllllortll bolWOCll1 B")ker ~nd ~Iaopuntln IIb:1l1 follUW dedlllltion of All tl'J(flOIlJllS Ill:ccrdln; kI the 'SAk:sfo,:oon
ComnUlldon, $chodu~ 1n ncI caR shnll Bru1cer be l1nblll tuo SIlrc.person b N'l)' Ilomtl'llnlunt ..... onHo-:tocl. ABllcmuni_ion, darivcd ftll1Jl "trllll"'ctkm .hall be dcpullttcet
wll:b l1Mo Srukw.... JIICj,uircd by the Act an&or Rilla. IU1CI Rog;IlI.o.tII)l1. o(;lbe R4l'd Ihll\te CQltutUn",'11 Nld .ub.QCJucntly pili'" .....e.m2inU tl.l the $Illu~lICIn Commiuiml
$cl\l:dul..' Thll dllll7ilm~Ofi sl1tIlJ lake "ll\oe M ~1H11U11 p1'IIt.(io:nbIClIl1l=- ~Ucctlo;n rtnd rccclp~ ofsudl \lommlnlcml. It i. undc:rsfOOd AnCt 'W"'ed t1VtL tho &Iltcfpc.non', only
~tion ~d!o ~k;on boinll \1=Jldc:r'cd lltldcr till, AIireClncmt" ahc: S"lorpDtVOn', .\:l\llre. ofthol UIlI"tllt:IliNlon.. pAid by the ""rtias 10'noII' C:SUte tm"_~ions.
d. cn-i P.o. , '. '. '. ". .' .", . '
In no cvcnl.b.li '&I1.,,,,...,n uhArge I_I IhIul tho OO1M1J:lllign or fee cstllbllshod by tho BrokDT wlthollllM I>riur~wrilflln lo"\lnsanl DfBmkll!ll" IfBrokl:T ,IUISI buvc CllIcred ftltQ
A IplOlnl c:onCJ'ftet IH' "p"'.:mc:nl'p.l:v.illlng In 11I1)' pl\rll...ullU' q~Ullelion. Bmker thol1lldvl_ $nlcspe~n rlf llUuh .'vfl:il)1 ~l,tamcnl. ~II comrnt5$lons nod. r~ 1'rutn 1\ pllt.
tleWltI" O""'n~U(l1\ shllll 110 pIIo)"1\l:do to thll hroker. Snlll'l'erlll:lJl ~hall not 'be flCTKll'tl,ly liable 11'1 DNkbt, rar IIllY cQm.mlssia:ns nOl t"Ilr:<Uvad b)' Iirokc:r !Tom Jl'lV'le. 10.n ban,..
I1.c:tlcm unlClU' suo:h nanpl\)orncn~ If; the rIInllt Dr aollll.ion, l.mmtl"",,,l or """,kJ"~1l "QltdlKf': Bro"cr ~hllll hnV'Cl the cxeJustvc "!:Iht to dctonnbll!l whclhOf kr ","nrn'=.n~ lililll1tin"
tollolfccc no:omlt1Lnlun nrrel!l, or ,to iClul. ony",l"im for thl;! ~e." I .
7, Ethllt.,;d TN,;'tltA,'ttt"fliRtiDlI:r,
Snle"VC'Xln -.Ii bwkel' IIi.n eonducc bUsUll:U Md regullll,ll wnrkil1g ithcdule, W M tq mlUnUlW nnello 11lI:n:u'b the &land wJtl, bllSlllct,. pl:'(ln~ nnd"'l"klln.tiol1 or BTOkol'
Illld SAlIJSperX10 llIud CfIclll!P"'cII to conCOtnl to ftIUI nbklcbynlllaw"rulci N1dJ~Wlrmll,'llndcectcl ofr:lhicslhAl..... blndlnU; an, or 1Ip11llcnbllll(t, 1e,,1 eslato brokers Md
..I~ 'Slllallpc::nonMdB~it1",l[bo ~.;mgdb)' tl1~ Code orBlhlq; oflh.Nnllo'lld ^llIOCintJon ofREAlTORga', 1hoAeI,Rl.ller: IInd RcgalalilJJU ofo,.. Rc:nJ e.1ll4o
ComnUSllorl." du; 111m.. l'nl1y be trom.llma 10 lime amended or 1IUP.!;'ll!IITIlInled, lh.. OOl\IItitUIJQn Ilr1d lly-Inw. uf-thc 10QI rorilcy boAn!" (or 1Uc:h other board or II.lQClnlJon....
may be. 4fP'lCd ~,. and the J'\IIes ~d I"rIIJIlIAd?UJ nf 411'I)" l'n\:lltlpll: 11~';n.u: ~ervlgc wid. whkh Qrok.... ~Il.y now a!' in 'lie l\,llttr.. Ixl "ajlil1;llld, Broker ftIItl,s"h:llpcrfon shu)1
RlIIln roem..shlp b1 S,'(td ICIVldlnS wIth dI. NAticllVlJ ASl1X:bolin" o(RIiALTOI(Sllt', ilia P(lllll~yl"llI1" AuooiAtinn:oCREAL TORS., mu11.hcl~ilVl\lcy tlOlirtl or a'_IIoI.iOh
daalynatod by Ebekl:~ m. liS mny b~ ngrgod "POl1 toy Ihc pnrlio,. Whonll'VOIr hZQk<>r il'", Ii a.llImbor of MY ,..1 O","1ll or.lllU1l:uotlun whldt ",q,t:liJ'e~ membcnl,Ir Ilr 5tJ1l.Ipc:I'lIOn h1
laid el'3"'1lz.ation, them 1S1I1e:lJlo:uon nWCe. Outl h....llhe :lhllll beuamCIl ftW.tt1bcl' ",pd. pay f_ or.dUCol requb'lKi by ~c" A\'ltIn1bqrllhlp. Bl-ckor IU1d~pcc"'nn "Ie"'" to be: bowlCl
by CI1e ntk:s.....d I'CUul;tr""111 or .1.1",1, D'U"'""".II_. 1'~I'4;ninc 1.1 oLl1lN Clad ~1I"l-d"n.b ",r !'o!1duu 1U1clllruGllihlRl~ 4ItJoSllOl'Wllll."...lrtu>','.-llIdllJ". pc;<1ii...llion nr n ~l)TceU et>py gf
thOP1I1Ul.,..IVfl.llil\ Relit E.~tll Lh:t:",in~ "nd 1\1I~i~t:mtlun A~.lhC'R\llcs "ncl Rc;plIOI1S t1flh_ PON'l)'I.....nJn ,,"vnl elltnlClComrruninll. IIl1d Ole CodCQ/lWllc'ofw Nnlam;,.1
AU061..t.Iol1 of RBAL.1URS"IV1tt "L!let::I' 10 be "pplifttll ortht: "rovIJion~ Ihereyr 10 Ihnt. Snl"""'nl", will "".nduql1111 IlCIJv,llllO: In" rni:onnc:r oUr>llllll-enl with '~lIRW!l Md
ethi~. " . .
8. R,lIJJ1M.,.Lio.n__."DIIM. . . .
BftfflpclrfloQ Jlw.1I.lM'Y tho eosl or My n:IIJ. e.slnle lIc:ie"lIC: 1'llCj,lIWd by 121,. ~visinlll oflUlY, IlIw or l'CI.ourlllicn lJftho CamnllJllwo"lt,h ..fl"wtylvnnin, Snk'FK!"'nn ,hnn I\uth~r
GnNnl u""t tn. J"IIlll.lh<::QlQ1l'- fo~ li':~ ~ a JllRL O8(ntc !IIItllfper$QU by lh.. COlnm.in-Nenh,h ~rpCll\l...yiVlmlll Jut>' '"LI~nccl,ih .....<>1)' re::lpat.t, IT1llkld\nQ: tho 1bn;ly stItl,nu:dol1
pfmlllldlllory.clIl1tlnqulB l!Iduelllkinn.l requirammw. 51llc)pl;rsoJl slMll PIl;Y 1111 dUel for JMlnbanklp b1 UlO U~OIU IIri fCHlh in UIO p1'Cao:tIlllJI Pi\I'IlPPh oClhl. A~l
In . timoly Nhion ....~ ldlD.i1 ptly all tu:et D.s nul)' .bll wVhnlllp;!11 lncI:rmll en' prOd\Mlvlly hy Ule fuderRI ~O'\leI1UT1Clll, lhe 1n181l1l" R.evonUD Sctvl.:.. th. Cnmmon........h nf
P<<Ullyl.....,ln. or IIny locnllnuniclp>llity' or It.Jho;Ktl 41'lliell:lrn'her JlIcl1 Ul1,inl.! nllthorlry ~ludln. but :nl'lll IIl\1.illld ID il~oma 1....0" Ot;\C\1I)nlh:ln IInd (I(lIlllpnthm privl"=\1e lm'CS,
pw Ql,llltlllAxcs, mcrcn11lHo (U bUllnlll$' privilel:l" lIIx:a. '. . .. . ,'. .
9. AZ,I'h""ilYw~",lVIcr.
S.1<>_~'Ol"Scm IIleli }uwa 1m ."uhOl.Wy to bhld, Dbllllnll: or C;.Qtnm.lt Bt-ooJw.r by.otP)' 11tTIYI11K Uir nlf'n:sen...Uon. unleu ~1l"jnc..lIyn"thllri7,"" by Drokar In WI::iCInR' providlld. how
ever. thll S...l~c:non Ihlllll 11M i.. ~hy ,"lILh"ri"",ct t('I <<'I..cuca II.dnl1.....,..,.,..~nls, bo~ ~ae.ne)> ..D""'~"'Is, I....,.., mItnCll.lcm!=1'\ l:Ol\tmGtlI. I", welt lIS IIllll..c:l3.;.n.... anc1"~
JrW:IlLl .pplUt~nRnt 00,,",10 tOt" nnd an uolullI of F.k'Olwf whCJC not in conti tot WlIlh Srok.AI' . A,\l"""Y prnctlc;c:tl Nld vrovMcd:ti'l U\c aOtnI11I..km inwltvlld m .....,.11 "",hIMli.",,
is nut ICI/I lhM that dll&crminod. far ~ tn,mllcunn 01' .crvlac b)' Ih-..k....,. 1i'r:l~J' 10 1lrl1D1;~~ into lUly SUl:h llont11W' lOr...., . It,.Snl.l(HlrllOn thnll deccmlbl<l d.c AKCQI."y IIml
rtlruuc~ent IlmcuOl:ll orBJ'OIcer. . , . .' ..~ r .
10. 1l1'MI"!I tlHd OHrilUl'cullr,Tmrurrltf_. '. " ,_~ '
Sale~n ,""" c.oopanoCa ftllly with bl'Oku In <lhUlh''"a CII11'(l,I1< ftl1d omhlliOIl' 1;Q~1'fI8C bl "" Ion'l'OIIlII, Ilnd. wIlli dednl:lilfJo n_ ~h.'\JJ L'Tam Itl1'\lII 10 Ihne I~ d<:tl'm.a,"<J to)'
F.Il"Ok<<, Sldd Irllll.ll"l'tl'WO .halll.retlllll SR1'"JIllnl)l1 "8Ah\fllliAuility which mA)' N-Iseln ':OU""':1Iton wflh the l:undllC)t l,)r."lel~":"''':'' II' on noLlve: Tanl CIIUII'l' ll...mso:c, fintd pull")'
or pollcic. 31ul11 conuobl nil ",...lor.Rltmoft! IlI\ml~ BI'OkGt" nnd. ..ny 'l.Ib"td!.nrie' of B,...kor AS Ill) nddlLioruUlnf;tlrvd Md ,!I~~l nal, bll "ubJOIllIO ClIUI&:.cllnllun c:':\:1Opl on " minimum
of Ia\ (10) dRy" prUlor wrillan nutioc Ia I3rDlctc:r. ..... .:c:Jtifiellw of snld b11W'N'lcc. ,hftllbe dl;J.'l>>itcd wKl1 Btgkcr an ur bctbre 01. a1lbcllva drUe IlI\d ell.:h TallCWnl "",10 of dlls
A.QNotnant. Tho co'l or ~nlf.l illSUT1ll'~ Ilhnl! he 11,,101 PUtsUIl1l1 10 llM W"U~ .,..,.Ucy ..rJ'Jrokor. or, lnlhe nb'lCnCC tJ10l'eGr, ~,iC:h 1:0000L thllll to. ban'lCl hy Broker""'" SIIIMp,e:l,'lI:ltI
in the $llme proportion IIllllley would Slun'l'llllly IIh^"", in the commilslon l"ClI(1ltln,g rrom 11 HSlln~ 'Ild 1Illle "rn Pt"Ol....':Y nil I, $,111 fc,r1h h, lhc &Ic""....ktn C"ln.uiROloll kl,odutll.
.
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Received 11/26/2005 10:44AM in 16:24 on line [12] for 4659 * Pg 29/33
11/28/2e85 18:42 717-761-6923 JGR ERA EXEC
PAGE 29
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. 11. l.MII"lltrl ell""",,",, CIM""Vnlltd.il_, lfOtJflNl.f ."~d~. ' .' ',. . .
SDle~ ftp"'II' Uul.t All)' and. IIn IIttinss Dr pNl"~lly. II/,lo;nuy 1llD'"1~ find IlII A~lIonl ~ Irt ~ncclllUl wjU, lhe <1181 elIlfttll' "",i1\..n, Mlln be In lh. n",,", ..rbrtllr..r.
UsLtnp Md "lJDfl"Y CQl1C1'ft<:U ~hroll he mod wit.h Braker withll\ twGat)'-RNr (~) IWUfa a,," =IJll: by 5al"'1)l:nO\,. AUIfJlinj:s nnd JllIano::)' 1,/0I1ilmcu _II b,=, nndftlh'lain.tbc
~cw.i... propeR)' orBl'OJNrr. "II 1l(lft'O'JHlndlm~ ",""'~v<;d, \lOP_ Dr ~ltdanaa wr!uCll, ,.111\1, lI.tln. lnrmrnation, l'QIlInCll'IUII.1n., filO'l. phlltagmpIM. N~. ...."'" (lpil.
tOns, ~u:nlln8 tnfOn'I'laClcm, IUId. ,.,,)' Md nit ather In.crumtlnta, dl;'Oelolmc:ltt.l or inAmn,"lnn or any raNI.., whnu,,,,,...cr o;:ullccmlng trnnNlullmlJ hMdIctd b)' BI'OJcor \:IT
. ' S.IIDJI~, or JoinUv, III'C IIOd loon .ftInla!n the PJ.'Opo:lt1;t ol Bl'O.kel" ptuvid.cld lh.... SP~'IWI II anLl\led IU Il lOOp)' or ,!ullh i1lIttUmCTIl. 1II1(llilrllmv~tltm upon Nlllon.b&a
~ucal concemlnQ MY tnI.Iunafun in whldi he/,he Is pO'rscm.tty Involv..d.. The: partlC:$ hcnow ~"..II mu1\lIII1Y,"PPlV'o/lJ Imd "IP'llI1I tlpQft IdJ 1:nrn:'IIl:mdcnllC frcqn u'e omOll!l (If
rkokc:r ponnlJ.:dnJ: to I{"""SIIcdol'ls h..ndbl b)' s.~. Md Nil fUrthllT",peG o~ lhll tom... tI;ll;>c UIIod IInd thc \)OnteJ'm ur 111111(,"0'110:11 Mtl Ulhc:r ronns. befimllhD)' n.P'8
~5Gntcd (0 cHonts and. CWI~C"'. ior Qtotunu , '
12. lhpq.'f/l~' " . . '.' ,
All d~r=lLs ~ed. by Ihd9l1tl'llUon In 1hc cuUraa of.. JC,d a:mne ttanAcUon of 1In)' nllt\Vll .1;1\,,11 be Unl'l'llll(i.h'ltlll)' tran$(cl'\'IIld ID Bral"'r Car dopglllt Il'V/'IfIMI tu thll Act; the
RuliN and R05'-'I"liwlI: of Il'\O Ron.l E-.nlO Comml""lon And tI'l. lllh=~t (litho pRrtillll 111I aha lm:nlileclon: }'I'Clvldll!d, MWtnrCl", '''''I MY <k:pD..I( IIIl)e m"itttlli~ by anothvr
bra_ uf n:cot'd /ll1:rSUIUll to ~ Act, RuIn IU'Id. Rel"lnliol\' of the Rr:~l EsIGlu Comminlon lU\I1-arecment o( the: '1'\V1io....1CJ " "'lUu~Lion IIb~1I bl:l lmrna:ii..tcly IrNwroncd ID
!UCIh bmkerwlth thlll npprvpr:il\lc n'.ldcIJ tu thlll__:Km mnJdllU: .U'Aln depollil N1l11U B~kcr. '
Il. III/'ItIII'InljitHrll,,". . , ' . . .
SaJe5plllrS011 IbIlIII indcUlniJY And hnld anlkcr hMnl.... .lTnrq nny Ntd liD QIIlim" a~tI, li"biJillc'l. 'lUld J~ld.alrlcnU" In~IIId(n.a: &uomo.y'. ~'I, ,,"siltU ~I~' Iht: ~I'or
realdl:l'l. foCl" of Snle'lpanlan, or n.:et, illuuid. ~l:I ~pC' of SalcllpClnlc:m'. anlborlty, )'11,,;11' lki"",don 'ur a..dispulc nrU~1 \.'.OAComing ..Itnnllnctiun 1ft whlah $qlespcng.. w...
involved, 111ll: fll'rUo' hareco ,hfLlllnutually CfI/,1pClll~ Willl .tlen nJJi~, :rn dilp\lI01 .... Ud,WIlion whatllha'o I" " saJnlm h~ Olc I;:ITGlIt '\JMlt SclJtlSpanDn hilt foClloCd IrPnlkln.ul)' or
J'Dak1~ OJ' ouuJd. Ibe 'IlIape o(.!i"lc~'1I .."thwiw, S/t.lnplIfRPl.lWl heM u.. llDlIil'l" ~1lII_ Illld )I"billliu ~T1cllldin8 jud~ Al1d ,,-.n:Is Mi,inll &0111 llw dilpure
Ol' Jhhznuon. IIlI dj,puU:II or Iltlpllon wMni ~.l. . 'I.lliWsn to 1M aft'o:lt chat SnlDtpca'...n hR6'~~ DeGJiaontJy, ~1".pt:fSOl\ ,>>h.. .bAN &fM, emu. O'llpcalllOS nnd Ullbilillc.
JndudInaJ~lll.rtd I'WWd. nrlsiny: f.rnm l,he lllspule or 'InptlM. Such 1Ih.-in8 ...It be in U. .ITI~ pmpanlol\ IU &her: I1lvbklQ of commlukm ""u; or wo~lld hAWl becll, '
front Ibc ",bjoct trC\MlStion. nw d1CU1Jl..O; afC::O$II"'.l!tI(pcn-, ~ IIIObIUlle. JJWllle With~~~d~ 10 ~Nkcr'. "lOLl ol.lndcnmlftCfllkonvnlou lbc:rll nlll bc1m. rnul~ .
ekm ot'lbc il'ldanmlf'sc.cion InuI balWcNlQ thD lll'nlIK han:lt:I. BrQ1cer .1uI1l ......t 1l~1'1l1 ko repro.ant Dr'9kln"" N'td Salc.tpcnon'JI hllaralS In IItlptlM wIch COsl. berne by ch.
partin In prapgn'on lIS'" ClJrth nbnve penMi1lnU to lh~ ah~rl.na or ':':'UII. ':'"."
14,'" T~hl.,/,pn. ,-: ': ,...... " , .
Thb ~Incn" nnd the mbtjgnllhlp crmlcclllllhlb)l, mil)' be lr:nnbtAlco. by ailher jlNty ~er..C1, with ar wllhcoul: ~.... lit IIn)' tbnc "pun wOllen JXKlc:c, Upon tarmlnatlorr.
,.Jl ncsoU.._kln' c;olnnlOftcad by $J,ll11lllX'IWn d~lriuy thll1C1Tl1 otlJlb ~<<nonl shl'l be hftndled lhfl10tzh 6roker NKI wlah IIWlJ1 nlUl_ru.toJO nnd clXl~llon by SlIIIl"P"'"..Q11 ns
"~GNlhtc undu \htlI .,inxm,lIIr.n'1';" for Lh. pmtDatlon or Iho in,-sU of..,o pula 10 the: rClll ClJUlte llflnllaCllon. lrn,oalvcd. $.r)1.sp,non, UJlD11 tennJNlUo:n, Ih..11 fi>mbh
Broker with A bona rada Ji.( of nil prolpllcu, IClKt" Md IH'ObftbJo trN1lIllCtlon. dcnillkJpl'd'by $Blesp~ ". wclllUl'''U .;Clth$pgnd_lI:llr ..nd dO\lutac,nll dllllDrilJ"I:d Itl Potn..
CNpn 1 L a~ which nre deea,1Xi 10 be, tho l'rQpmy of BIVJU:lI:. S.Ic:sp<<aon further "ll1CCOS $hill up<J1\ tcrtl1lnll.tlDll. or III nnti..ipAtion thlilll"lOf, hefshc will nQl ruml.. lu omy
penon, /inn. compcsny or OCIoI:pOT1ltlM llJ\W'Uld lit. tnII' ~I arrw.o b..lrin. MY Inronnlllioa as w 6'/Vkcr', ollcnls, I;UROmcn. pmpcl'I-le', pno:.... 11:""1'0 (I( n.UOIi..lJ.ms nor
arokcr'1 poll~1es ar nJh~&ian$hip. wjlh ellcrtLs..nd =.101'11'" "'or lII'1)' ..ther II> flrn1MlUon GQngllf11hllt Brok~ ,.ndIDr hl~ lml'incl5. 5nlc.lpcnu~ 1""111'1101, .th:r lan'nUlnl.ion
oflhll ~l. o~ In oan~'lPlatloh 11IC:'l'O!)t, remove &om tho filII'lI en awn tho On-Kl.. of llrokl:lf' MY UVlllllJ'l..l.. .t..",- p\lbJl~onl, camDlmndcno:o, nics = inf01ft1l11lon Uwrl
bpropCll1)'orEh;w;CT, Sl'OlclpcrIOn ~hQIl hll (ll,ltJllN l<) aopie. (lfccl'Ulin 1r!.lI'I.l1'n....1II pll7tllinina, W tnlnlMltlClll~ In wJlleh Snh.5pC~11 hn... .bOl'Wlliclc Inll!rcM OT i*blilllnll Kl
CllUIlriS8 or Balespl:r.tPn.
JS, C';"w"tL.iI>>f."uptrlt r...",/"",/flIA. .', _' ,. ;'
. Upon tanninlltlan, SIIkspllntln'. sh..ns of' ,;:amin.lniDn5 on ""y Il7IilSlll.ClIonl \lIh....... .....1.., cunllfi.,:l Old'tlllJu'll.....tl"..'rtA<.'1It71' hu nut ,.tOIC<\ Jfl.ftIl,aRc'r the ul_ng or"tch
trvullClliQJ1l, bt: paid Iu S~IClpcrMln II, nllco!'d wlth,tho Sale!lPc"'on l;'t;ll'l'U1\.llllion Sgh!"d..k in cfrC:CI nt'lha Itn,. t;>flcnnlllro.liofl, These IhIlJIIH:, c1edueltd rTOl'n'uch rdi-., ho...
CYIlJ', n Ila'YIci1'la eMtga af.s: 'n' _ ~ of tho amaunt of Ihe J.i1l1n1C nndl'or Inlcs commIssil>l1, wh..tJ~l'/{" b hlllbcr, No IIllrnmi.,lon llUW lh......
for 01_ pmpeltic, (In w:hich nn lIy.re;lIl'tlClJll hila bo=n :Ugnlld a.nd IICGllpled In wrlcinll bylhcbqycr nnd _Ier 01\ Dr baro~ tcm'lintltl,nn sh.r! ba d....."., CMtWId by s.1."P"U011,
rmlQ.IIll gt~11C ~&P--' .b., writinS. l..ika....illll.1\O vanvninlcn nlI01Illln~ froni tbe Iillb:lg Ctir rcn&, or UIC tlmllll ofpropllTty Ih:dllJe pnid III S..IIlIPct'llOn (ulIUWll1U ll!1l\llnalluu
wid1 the op;epljl>>ll ofl:DlnmlallaTi. 4",11\1& ft'\)ft\ I.~ mil)' OXCCl\llcd prior lo lannlnlllum And Lv (tI. tIKl_~ lIij1,t IllIl,'IG pnymc:nts fIl'l: rccelVod l1rlllr 10 tClrmm"ll.,n. .!la1"1J.Wl1'11"1II
shllll no!, haWllYIIJ', .tw~ b, Ill. IX.ll'nmlnlan. pnYA':'lc in 1hc f\1l~ nnd rn.,.,d I1J.'1~ IJ;lc Ins:c: opu,,?,' or 1_0 i:lll)"mDnllllot yet d"cllNi PlJ.ynbl~. . ','
16. 7'Jq-NWrtftlon Prvflrtll,,.. . .
Upan lBrminllllon by either puty, S,t1"lponIDn "hllU Immedlalely:' ,. . " .. ,
IL} Inbmll A Ie\ler O(1Im1lU111UOn Wllh" comploltl aCCDimllna: ofaornmb:lloftS,liJlinJ,:! RDd. tM.1)'erdkl.ntJ;'. .
b) return "II SUppll<;ll, ellflTlVCUltomor pl.'OIIf_aL Ii., key, l\l'ld c1OWI'lSOl1U C1anRidarcd !"Opel1)' af D1'OJtor pil...UN1\..... dt.. P"Ovisiv!'IllIt 1111. Ay;ri=lncllt;
D) meet wlll1 Bookto' IurjlwpnRclI OrnUCIl'lptlIlIl.IOmut'Ullll)' asr- "pon 11 nlw flCCVUnUny o(IX1In'nllllot\l dull Md p"y..hJa.
ol COOpemllil;U\!he lUIuIiuat{OfI of thc Re:nl ~n"te C<llntnlllslan l"CIJN'dlng Ii'll 11lltmb1"t~ IIf the ...11)11(011.1\1)) of BmklJl' nnd s...lC$per-on.
17, Arb~'IIr'4t1nfn(Y"lIr~,,; ,. . . ',.,' .'. . ":'.' ..'
Di..~...,UI qr <:i1:Jp1.1l~ between StllelpcnlCn IUlld Bl'OkQl' ur llot'Nallrt Sn.lll~\lcrllOQ nnd II /lclI.1 CIUlI.. IlUCtlSCQ UJO.:l"Le<l: wlUlllr ~gntrtlutlld II) Broker, and ~hich iville Oll'
of, or in lXInrolJl!llim wlllh. dIe .....) ,"lfIlll ~ullll"lfl~1I" "1,4 whjdl ~tlnnul b~ ..d.j\llltoW. hY'4l',d bi;twco:n v.1i> pflni.., lnvll\vf<!, ,111\11 l'l:/ .ublnlncd rllr nl'htll'lOlk'lll in tIU=rdlln... with
~all!l XIV of tha Cwo CIIf EUd~ ....r U1<! Nnti"'1111'1l ^~s<'KIln\lun of JUt^1~'TOR8", By \his AIlfCC~nt f..:UO IIrb1U'Mron.I}II,1I ba .lllnndn<my "rid Brulurr U\d SnJc~llC'r")fIIIW-
to (IlJ'OvJdo" wriUIn tltnm'Nlnl UI d,llo lo~ll\.IltI~inliO;n uf RlZAI.rOR,S"",SlMY boo roqu~ to)' mid npRollnijgh _ f\ \IlIlld1thm prcllCdl'm to nrbltrnlilln. BrokCT,nml Snletpenon
Il&IIlllIlD be bau,,.t. by iI\I' deeltlotJ or 1I.. nrllJtmUpn pvlal Of~l.l00:1I1 nuoointian or d..: I"clml.'y1vMm Anuall'lllon urkBAT_TOt';.S~ whIch hIlS enu:n."llllcd aha di.pulo Dr di..
"lJfIllr:mcnL Tlu:; \:(Induct O(tl\l artlill.1tlhm RtJ..U bl! IC<;>'oIe1'l1llld by th. 02dit nj'$IIti"Jr <'Slid AI'lJih-gtirllO M."'UJ' mtJlII .,.~lltY p~lbJjshad by lhll """,lon,,1 ^5!lU1;h'lllon Dr J:t~L,
TORS- priW to ArbilrntiMl, /U amlln~ hy 11'11; leu.....1 nSI"ejllllan heluUig the dl'l1'JfI:. .
1 B. Am....dnum~.' 1
Thill Ap1:Icmcnt mn.y br:: "Mcl1dod only br lhG plVilell ~lo. In wrilI"st.
10. C';_rnJnll L"';' . . ,
Thi.. AllFaCmaTrt ~hlln be aovW'llcd by nr~ InlcrprclccJ pUnUBI'lllo 1I11:1 Inw, 0(1l~ ComrnulI"",-lU> ~,f P.I'n,:yli.....nln.
20. "'Mc"""''''r.l/fI J",~. . .
11111 Allft"cmtlnt mall inure III the bmcrll nnd blJ blndlnQ '1J'on the SUCClIt....", 1rI1ljt,,",Jt o(j3;rolc..... Thb AlZI.l:l:IITKIU, hu~vgr, I~ h..,cd tm UtI:' pcrsgnnl aa1vl"'lil~ (>(Snlal<panoon
MIl SalllllJ'lI'lSOn d\lLlI not dclcanlo or I\.Ultp"l nny or S"I~'I" righll or dutlou hcraun<~ wiUu:lUt dwi.Jltinr wrlllar I;OIUlCltlt I)r ~ml<<:r.
21. rnu~~"n~",
My offi... pgll~y nr JUles nnd p,tocoIcIurCl m/I,~I.."\1 now CXIIl!Jlij CIIf ~Rcr a<loplliod br ..m.cnd"'tl 5hr.1I bo bVld.1ns m, Iha pnrli9S.
22. Biru...Agnl",.IIL". .'.
Th;s A.....m..nt ",..".Ill\llo, lhc ~tin; "&1....."n~1 bCl.W1ICn tho bJ'(Jk;!r IU'ld Stlhnpcnnn, Ind thetll ~"I) "~l'Ienlll j)J' ~'I,tIc!1'umdln&1l 1\(l1_1".""'d. bc~in,
INWJTNBSS WJ.IEREOF, \hi, ^jp>;:m1\1'.nl hn& bclJn ~i;~utod On OK: dl>fO first !\boV.... wrilleTI.
Wim"""lt01'llICOst):
WlInc.ss:
By ;!f~ - ~ ~~ -~ 9...--;
9"'kcl'.. - ,tl'
.V .
~Y~"n ,
. BmklR' s.hcR1ld onJ\:tNI do.t writlon off'",.. po!;"h.. doln:rill1na: S"'c.~Dn's flnancln) obU"allJn', WI~1 rD1Jl1llll to offip., -rPJio" b:otq>hono, "UJ_. nnd II. SIIlclJ'CrlIClh CliJl')l'nl..IDn
$c.hedulcatf;('nIvld.t1IO Sl1lollpor.Hll1, ". ' ~'." ',. ,! "
, ,
rT:J ~~.,.ylvan.l.. AssoOClllIUan of r.tw\.Jtfan.,.tr.,...'N"vl.v....rHA "~~H't;I"Tlrj,.,. UI' "JlM.TutU' J"~
.
.
Received 11/28/2005 10:44AM in 18:24 on line [12] for 4659 * Pg 30/33
11/28/2ea5 10:42 717-761-0923 JGR ERA EXEC
u.....yA.r...a f O^.....n.~.rI1..lC.I:>Vl"\i1 ,
INDEPENDENT CONTRACTOR AGREEMENT
" co~rotrt PENNS\'J"'ANIA ASSOCiATION OP".ItALToR5" 1""
TII.1. fc>nn NOO..._.....d n..... npp",wd fO...~l ~-.t~.... ""'_ b)'~ ....""- otUlc 1"Ild1W)'l..,..... ~"Dnofkl:^I.TO..r
PAGE 3E'J
.....rm l:5U-Z
This Agreement iR <mtcrcd Into lhJ.
Mrelft4Rcrn:ron'C<l to.. "Brvk9T"'.ll[~d
'.. t<...
<\0.1'\.1::. ('~O~ r. "'" Q<j J-htr
beteilll"0er ~rc 10 as S.I~Ill""T"tm,
~&.~t~r.~p~-;'~ ' f-.~--3:-".""'""
I I,,' ''''
. Whereas. Bt:okor iD mt;a;.d III huelnass DS a Rul tii.rar:e lIrab.. Qn~ l~ d.~I),'Uceii~"~'~tpllf!P In, th. t\etivlti.5' or. "8ro1c~'; o. dcfi;"cd b)' tho
Pfmne)'tvimla LicCI:IR1na: ftnd R.c&IIIU1J,rlon ~t. Act orr"'Chrual)' 19, J9S0. P.L. IS. No.9, III ameftdod, and
, ,.\Vhereaa. Brokel'mainblll'U1 one or more om~ properJ)' 8qul.ppod whh,Aamlct!.JftgA. J~na:boob Uld QthcrCCil'lllpmont DCIl:lCUDry and im:tdcntal'to the
Pf'OPer opcmlLion at laid buRlnl)A, aDd. .hlrred. witl) cleric.l empTo)'llCIJ.. .ad i. Qut...b)' ~lIt~bl~ to Ht'Yin8 thll publ;.., II ., Ral eatGte brokll1'; and ,.
Whereas. 5.aIOl!lpoJ'BOfI I. <July lIOllnlcd by the COm....cln'We.lth orPrmn&1-lytllulil a,;. ~I catiitc'H".tl=.~n" or"aMoaIltc brok.:rM a. defi....ed by Ihe
Penn,yh'lInla Licensi".; rind R4Q;i.ttatinnAi;:t, ilml whe:rera'"ttI.. dcemcd. to be VtthdJ'nl.'tuall.dvbl\u..JenrBrokr:rand Sale~cm tDcn~thb(:ontractupon the
lc:nnsand.condldonsheretnoftar(lelf'orth. . ,'" "", ", " , .
NOW THEREFORE. ror and i~ gon.lde1'oti(m ortho; ml.lulal t~nant.f IIl1d P~J~IC' bc~n Oo~tllincd, th. undc....iperl hcroby ~n"lIJr :ineo t"lI
followln" artfcle, o( IIsrellmllnt: ' .
I. 7n1l.-".-nr C_tI'INn8r.
The rel.t1on,h[p ofSale'J?e,"*,," to Broker IS tbat oran IndepcndetU COi\ttl'lCtnT, Jg p:rforminlJ thl) actIvll:lQ' om RDJ eatallo ".alOllpaTtIr;m" as ddlncd bytJ..:; It_I
E~"t4: l..il;Xn.lna and Rt."(I18tl'lltlon Mt(Jut.-cin.fteTrcll'er1'C:d to .... Act"),,,.IColJPar<too shoIlbeCr<llc In dovocc 8\Il:h port:lolt.ofh1wncrrimc.cner'lD'.clTotbit and ,klll,a.
he/,h.::: d.:::cm, apS'lrnpriato;, In koopi~ with tlJ,utndcpcndentcontT.ato,rIUltus, SD1"'pal'flort.h~1 be ~pon3iblc fon:mnpll;:ttns In)' traini~ A1ql.lITCd h)' the Act
01'ot~orlaWll orthc CommonwcnlthorPcnns)'lvl'lnia; Siollli111;MT71l:m .1)aJl work ()l):II QOtnml~,jon baa.. and roccl....cnQ~.1.TY. rrlngc bone.fita. mQdical 'bonl;:fim, pen-
..Inn benan", OC' 'Pmfit Ilhenna: no Sl:at~ locill, um;:mplo)'ment. Social SCl;:u1'lt)' or bulltno.. privUCI;c taxes (where .ppl~"lo;) ,hldl ba with.held lTnm Sel~.pcr-
lon, Slth!:.pa~n shall pay all p'MfC.liS'ol1allicensina fea., ~" and om.baiOrtI i.nlll1lranc:c pNm.rU~ (tl~t ., otl1.;JWi.. provided hGrdn), m"I'd-lI.tln&; roc.!
l\nd/~..-comrl.l""KC:O;SI f~cs. s.hsp_ IlIall nOI be er-..... ..1In employoewilh ~eec to.... Mf'Yitllll.jWImnn.dlhI,.....derrar l'edel"lll....r...t...JCpwrpo... or 1'01'
p"'~' ..nlllll1' the 'W'orker". COIWpan:Attnn Ace, .
2:. Sal." lYran.
Snlo.sporsOn ISf'Cellltoact AI DI'1 indepcnclcn'rcal elfal., h.lallpClrwon and shall foilkl'ully, loyally and leaan) bn8-SQ IiI.s/hcrelTortsto 11(I11, trt'ldQ, l.ea,c or TCnI any
.nd All rtl\Hl CIltlllltl;lll'tcd whh Bmkor. to !!OUch additlonallil,dnp. customen Dnd cJlanlil fOI'_BTOkor, And to othDrWl.c promo'" the b~lline:;""nrsQrvin:: tbe public in
rolll olltD~e tr"niNIctiolUl 10 the cncllh., c'a"h or tho ~rt;ClII hcn:;to may de,;v", the Bil'Cacest pTofit pCl&lihlo.
l. OmC9FifclBfJ~.
BrokeT tthnll from lime to tim.. dnlln.ate the omce with whicb the Salc.>lpCll'$On thatl be as~om utCld. Thac offiee Ihall btl p.ovicled whh flIch fumilhiT1((11I1Uld
cq\tlpmenl.all docmccl necessary lit tbe dillcn:tlon o( BmQT f\'lT tho propor ope:ratlOrt i:)I'. TGal coetalO office. Bro'k~r /lh.1I rnllllJ<.Q IIYIIlHII\,lcIO Lho Sahsllpclllon 11I11
<l:urnnt Usnn.. of the om'Cc, Drtd aareas, upon request, 10 1I1U111l1 th~ SIIIJespsrson in ~iA/h1Jr wor1l. b)' IKIvloe. inlltnJotion., anel oooperl'ldOIlll. Ie'> Ihe _tenl d_TTlClQ
appmpriatg by Drokclr. Salo."IpcTIJOfI ,lulU pay forlone: dilltan~ telophon.eba~ 'nltl ror ,ugb oUlor rorau, e>qujJlT'lcnt, 'l1pplie.s a. 5hall bit Jlo!'t fc.rth In R:rokor's
wriu.c;lt> offlec poJicic..
.., .....fOatolNllr.
Salcspe1'5On shall furnillh hWlll:r own automobilCl and pay an reJated exp6n""Ii .lId RrokershllJl have' no t'l!1l'PCl'nslbiUt)' relating to SaJOIpenOon'lI aUlmnr,ohilo; OJ"
trnn.llporl"ation. SttIClllJlGnilQQ l'l8TCClllocarry UabHitylnllu.riln~lIpon hislber aulomohllll with. minimum Uabilil)' Ihnthl af$)OO,OOofor.aeb pOrt01'l and5500,0fl(1
fOT coaQb llQCidcnt tlne with f1~Y damnee liability limit, ot$3O.000. BAIClIpeu~m agTCC$ fO furnish Broket' with It' oertfnQal" "'l:rtl~lna oompliAnlDe with thb
rcq1l1J'CImcmt to bll dcrpg.nn:d with Broker on Ue' harelTl:! tttQ ctrocclvc de.k: IInd eaah n::;ncwal date of lh.is Aarocmant. OT 81 ot6crr limal U 8f'Qll':eT may
r~sonl:llbJ)' teqUNlt.
5. Com,,",__ .
S.lollp;mlon Ilhall blS enlltled 10 a IIIhllf"Q oftbe commission. el"mc:d and fWgl,vc<l by BrokeT' in acuardlUlCltl whh Rrok.or', S81cJpeTftm Canttnl".Ia-n Sch.:.dulo In
offect.-- thco;to.wortb. nel oadtlbsaSalcllpClfIlOll to a lI;Qmmll.lllon (e....1 obtllnins: IlnLns. plac.l~ 'Prop~)' umlcT..roclTll;:n'tof5I1h~. cle.) or asothlllWiseaBTCCd b)'
Ihe partKs in wriLina a' to a partiC:UMT fntn.l'Idlost. Broker may ft ......- hs SalespeT:1lon Commflllion SClhad'Ule from lime co Ilme w!1hout prior nnllf'iuatiDn_
Rev,.ionatolh.ac:hoduu./ll'l.all bchnm~Ia"Jyapp1lCllbJc to.1I fu~tnn.sftgtIOlUJ. ThCldivilionollClOTQmilllion.a: be:l1l'o'l;cm BrokerIU'Id.SalcapcrI<Jn IIhal1 follow
deductJon orall eK.ptl1"I... lI00Qrdi"" totheSIIIJO&p0t'30n Comm.iIlllI"'lJ SQ1\e:duJ~, [nno ClUe,hal) Brnk_bc 1l",blc~$",1ospvson for '1'1)' commtlllJinn. mateoll"-
tocI. All t'omm:il'li01U deriWtd fTOrn II ~l'1InllllQtlolll .haIl be <Jepc>.l'ltQd with IhCI Brokllr lIa ntquirod b)' lhg Age "nd/or 'RuJ.. t'lnd RII....lanam. afrha R,Q1I1 E.tlIIl(:
CnnllItwlon .nd subsequen.tlypaid ltQgal'dmllO the Salesp_ CommiNion Schedule. Thilldilltn"buriOll ,hl'lllla'kc pllLGC lI..OO1:1 i1al'll'l:Iotieablc IIi'tQr eollc;-
lion and TCOQipt; of such COIn.mbrionl\. It I. undcrlltood. and O"'iDlild Ihal thl; S41c:spct1lOon', only l'enumer.adc;tT\ f'of th"lIIorvl<:es bolD!( rortdoTCd vnder lhl~ ^&roe-
menl '" the ~lespcn:on'8 'hare nftho OClnnnllil.iona pajd by the part;et to real UUlh!l t:tan_o<<:l;nn".
6. Cu.", ~ '
In nnevvnUbaUS./Ilcl'pCTIOll gh.'t':c 1OJ' than tb.ocommiuion or fl;e ef.,.bU.hod by the Bm_wtthouuho prlorwritlt:;ncon~enlot8rvkor, lfBTOkc:nhaU h./lvc
enrcrod InIO" special contnlul AT lII"Ccmenl perUllni'RB t!:I.TI)I panloularua1\lIaction, 'BTVlwr shall advi.o a"lClIpDTlIOTI olauIO'h Ipccl.IIIIIlTr.ngcsmcnl. All com-
rnlKltCJnIl .md rees from III pa'fdeul.r tTllnsRcrion shall ba plI)'eblo to ths Broker. SalllllpoT'llonlllu'IlI nolba pOTlIonlll1)' liable to Broker rOran)' comml.,kms DOl
TCICCIlved by 'Broker from partiCII tn a traJllRlol:rion unl_1I fiuoh nonplllymcmt iu the l'CIIIIult of 0011\,,1011, ltuil"~i<,>....1 Of roc::klcu COndU..L Bn:>k;r IIhall have '1hc
OJiclu.l_ Tlsh~ 1oc>(\Cfctnllno whalhcl" 10 OOfhmcC'lCC litigation to ClOU8Cl1 n coMmis,ion or fee, or tOo gtUo .-ny cd"im for tbe .aMtl,
7. IS:tllft"__"JbdrlA~~.
salc:rpcn'on ..'tu" Broker.h.llll oondUlClI'bv,lna. 813d rtqpJ1...,c WOJ'kit\II:.c:hodul... ao IIIt'o meintain .nd to l;n<;lreu. tho ,lQad will. buslne.a:L prolltll.lllnd rep\lution
ofBrok<< end Salellperson andc.oh "Sn:cs toconform IO"nd abide bYlllllla_, rulCl II nd rtl8U1..tion"tIInd oocleof oLhiell thelan; hlnCllo:ll: 0013, o!: o.p'pllDllbte 10, real
_late broklSl"llllInd. '1IIIc,perlOlt:t. Salllllllpc:non and 8TOlccr sh,1I be BOverned by Ihe Code OorEthi.,. ofthQ National Aq,ocl.tlon of REALTORS. "he ^c1., Rull!IIl
and &c,uJ.tinn" nrthe Renl Eltale Cgm.ml.-don. a3the .lIm. mllYt!e f'rom tlma Tn TIMO tlMChcled 0.1' "ut"I)l.no.nl.d.lha ooanilutlon And by.JllI_ ortholot.:GI nlllit)'
b<).lrd (<>r ......11. othol'"bc,....d nrQssoc:iDdon.. m.y be: nJP"llllCllCi upoo),:am] U,. rullllland rcsu1adnna of an)' muJtil'Je H.unz; IIcrvicc with wfllQb Broker may nOw Of in
Ihe fUtuN he:..rmlll\ec1. .Bt'okCT .nd SlI'e"renotl .hall nn(lljn mcmben.hip in sooc.1 ctondln.e;w1th choNlttic)nal ~clon orRBAJ~TOR.S-, tbe Pa\nsylvanla
AJ!soeiatlon or RE.AJ..'TORs-', and thOo 10Q1l NIIUy bo.rd or association t1elllanatlJd b)' BrokCl" or 08 may be IllfS'=d upon b) thG rani.,.. Whenoo,oCT Ihnker I. II
memt!oro{any real_""o o"8a1tlz.ulon whl<:h roo,Juh'llll ....wmbcrsbip t)rS..lo~pc:rson In I.IIIld orpnlulton, tllcsn Sale'pl:l'8On t11t1'OIlll th"e he/.ho Jlhlllll bDIXmIC II
mambor. 04 pit.)' r~OT<;IlIea reqw"llId by "ueb membenh1p, Brokorancl SlIIll;:spcnon ag::me 10 bcboun<1 by lhClTU'OB end tejJUlaltcnq oflu;h o.....anj"'.timu PO'"
talnlns CO ethics and III.ndllrd. ofcoruJuct ,md Proce.J'Illll. S..I.sp,nOTli aQlmowledcCII 'P08aQQlOU of. CUJTenIcnp;y gl1h. Pctnnll)'lvenl" Real EJtMhs Li<;!Cllllllna
und Jtcsi.rraUon Act. thll Rule. IInd Rceu1olCri01U or the 'Pe">n.yJv~lrr:r.la kc:.1 E:ul'Ite C01T1mlllllon. nnd tbe Code of Itthlcs of thCl N.tlOonal Aallooigll~ or
REAl;, ^O se And tllP'Cel, t~\tx, appri.Wd Df,th'10P~V,lajOn. .I1Jm!O('o thaI SalCl'lpcnon win eonduClt ,,11 lIctivitics in a ma,nncr conli.tem wich s\leh ht'Wll and
c:thJ~:.. 'o.I.......'.~ND.J;;;.i'a.".J::S ,~,..,.",,~:,S:>~..;..:.~~, '~" , .
./)G,TIfl.~ .._-.vue". ~~. . " '.
Salesperson ~~1II11 pay IheCOlllt of any reaJ DIIla_ UeCl~e,reqlJ;lO>d by thClpTovi.lnn, ot..ny II'IW orrcphtdon ofthe CmnmonWi:a1()T<lrpl:nnaylvani,"- SlIllapcrson
Iha1l fllrtharctUun Ihal che nXlulreme:rt" rorllcoftlll.l1'4.. II rc.lIIt C'St:llce ii1..I~pq1'Son by tl1l1 Commonweallh of"PClnnsylval\ia an: saddled in 1lIvt:'1}' respect 1'!\Cllud-
In; the tfm'Cly snlillr.otion ofmandl101'y Cl'Ofltinuin(!t mduetifioaal nilqulTCmcmts. S.lflllpo:lnon Ib.lI pe)' ,,11 dUR for mcmbCTShip 11'1 the:; ...ocianon. let' fnnh In
lhc p'l"CQCG'dfnz: paTIIS"l'ph ofehis AgrecmcRlin A cimllly fallhion Ilnel .h.1I PIllY all l.I:ICOIll' mDY b~ hwiO<t upon ioomnc or produ'Crlvil)' 1:1)' the reden,t governmont,
thcJnftn'nilll RCVCIlue Service. .h'CCommonwallll,th o(Pe.nnll)'lvanfll,or .ct.,,>, IOC:;IlI municipality ol'"school diltrJlCtot'othor'lk;h caltlnl Butban1)' includln.bulnOl
1i.mi1cd ,~ i~~~ fall~. c)CcuPllriF ,Dad ac:raplI.,tloft privU~e ,ICO', per (III pita tAUD, marallmlIe aT bwdnO.ll privilegc 'allQll,
9. 'Aa;"Q"O: to' CtNI<<-et. ',', , ' "
Salca'PClfllCM1 ,hau bu\'l:l no authority to bind. obllS"tc. QT1;lornmil B~kc:.rby Itn.)' p1'Omiseo..- TC7pm,;ntlldon, unlelll.specUicnlly "uthorlzetd. hy Broker in writins;
PTQvided. however, t!la.IS.lqpel'llOn sh.n.nd is hCnlby .utllOriZ-.ct 10 I:lII.CCUCtlli.!ins III.RCITOcnte.bu)'crapncYClOn11'Bcrs Ie,"", manallOmentoontt'aelll..lIIlI 'Well..
.~III~~nd. and aS1'COmea~.ppurlcmllntlhcn10 fOJ' .-oc1 on ".half"ofBroJc.srwho..-<:not in'CX:llnntctwlth Bro1<<:T"1 asencypn>cUea flnd providctclthollhC!coRlml..
.,Ton Invol.....d In ."ch lSanHlellon i. dOl 1015 thftn thaI dctcTn\;ned (elr 5llch rr.nllC1IOon 0.. M:l1Vic;c by Drak;r, PriOT IQ eOlcrln. inlo any sl.lch C!l;lntTacl or .g:ree-
mont, SIIIC.spcn<>n "h..1! d.tClnlllns the ftllGncy lI"d man_semCn! pr&CIttcc.s oflllrokcr. .
10, ~tI,",o..-.~/__nulCt!l.
Sllle''P.....n l"hnll (lanpl;:T1I~ 1\111)' ...n1h Bl'(lkertn ottlatnilll'erTO", IInd ommhsion. cavc;CllICQ In nn IImount. and wllh daluC1lblll. A~ 5h~1I fffllm tlrnClto llfne t>e
dellrmined b)' B1'Oker. _ Bll-uJ In.uranco shaU pra~1 S./II.'perlon aJAmSlliablllt)' wbtl;:h mil)' <<uiSCIin onnncctlon with IhCl<:onduce ofSil.lcaporeGn DII"" IIclivG
N;ll eUlIItc, lleG1'lIlCiKl. SIU" pulley Of poUOICR shill I con'aln ...n en<Jnr.tClrnen1. n.llMlnll Dn:>k<!r .."d IOn)' lIuh"lclhnia, Oor BrokeT BIl III n eddh.l\'lnllllnll;uTetllln" '''all 1'101
b~ IIUbjcct to<l:enc::eUal'lOfl C:ll.ClOJ)tOlG . rn inb...."rn nr.$l'I (I 0) d.y."rior wrttten notice (0 DTnkelr, Aeerl:lfic.te o(Il.ld InSUTenC>l;: .hall hadopoaitlll" with Brokernn
Orbl;:rUTe ~hClCflbqdvo diltGand ~ch n>n/;_I",..Ll;lAfth.!'AaJroc:ment. 'r.hoco~tnf,aie In.~n1n<:e.hlllJ 1'1'1: pnid pU"'\I~nt to thewrltlllSn poUo;yofBro\tclr or: ttl th
nh...,nuCllherc:r:lr.Sul;h en"l ~h"~l hc:oontc hy Ht<lokurltlld SpIUHpe:TI!e>., In lho: $;,\1110 propoll1inn a$'hll)' would n_.UY6bQt; In th'Ccommlll,fon l'"ClIIulCln. f:.om a I '!lte
Jna '1nd .uhl nr" prl:'>pt:rlY Itlt.... a;tlt for~llln ih"" ,;..I,,,.p,,,....,. C...nnaJw;I....n $<111.<:01.,10. " , )
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Received '1/28/2005 10:44AM in 18:24 on line [12] for 4659 w Pg 31/33
11/28/2085 1e:42 717-751-0923 JGR ERA EXEC PAGE 31
......w.......,.......................~....J .......... ..........p". ...U......,.,....UC.~.lI',..,.u""......"u "'"II<,;IIUIAi ",MR. III \.vru:u.uuun wnn I.l\U 1'01/01 OllllllGnllll,I'\CliIs..'l'IlI., n"," u,.,nC'lI\\O
urBr()kcr. UlltlnpAnd ~~n(:y(;ot\In:IC::b. .hAlI be m""d with Broker within lWllnt)'..fuur(24)hl:JUl't IIl'torroeeipJby SeICl,pcl"'lOn. Al1liMtnplll'ld ulill!nc)'cC'lnlTJt.ehl
an.1I hI! Nnd Tem.in lhceKc:lu.1VI:l property c.'IfBTOkQr. ~ll;iUrrcsponden.ce'reccivcd,cnpic. nfQOlTcspondcnccwn.ttc:n, Platll.li.tln.g, l.nfurmlltil,n. lIIumnrttndll.
mOl, photolTllphs. 'l"OPOMr., JCBIII opinions. l\ccountln.llntOm1llltlnn,and an)' ~nd 1111 othcrlnurumcmls. dOCW'l'lDnill orinfoflT1atiQR ot:SQ)' 118 turc whnt_verc"".
~",-ms t...." ..ac;tions hAndlod b:r 'Droke!: or s..ic;lIpc:non. 01' jointly. .ne ~onl "hllll ~mC\ln !he property ofBrnker lWovided th~ts".lt:fPt:T'SOn i:s enth'led to II cOJl)' of
Nuch In..bVmcnt. and InfOl"malion \l,pon rcallonabloI'OQUOItcom::arnina. ~n)' transaction in .....hich hc/ahc b pCI"3CIn,,1l)' Involved, The pnrtieli ne-rala 11111111
JTlut..~lly .ppro~iltld 88"'ee up(>n ,,1! llorl"Apc:mdonco rrn"l tho gmCQ or IJrokcrport'Dinln.g UllranllHgllQl1S handll;d by 5alespc1'Scm,1I nd lih..ll f\lrlhcr "~rcc on the
form. to he \Il1;e.d ..nt.! I),e CQl'lito:nt. of till t:OnlT..cfill and othc:r form.ll bcfonl they aru pro.ontctf lQ dlentll and cU:lI1omOJ1l Cor lIilJT1l1tun::.
12.., Dc"';_
All dO)mNiu rcgeivcd by SaJmlper!lon In tht: cou~o:: or"....1 eatate. craJ18KtkJ,f:l of an,. net"" .hall be i1TlmediIi1al)' b''IIn'''c~ loBfokcl" fordopollil pUtlluJlnr Il)the
Act. the Rulc~ lIInd Rc=1~,ll'ltiO.11l \~nhe 'R(;fo.l E:tI\nteCommission Bnlltho as:~c:rJU:int of the pal1le.tolbatnlnll'llction; provided. bowe\Oor. th:l.Il1l"l)'dopn..it tohl: maln-
c"inox'l by I1nothcrbl"OkeT nfn:Gordf,"l'Dmmt to l'h.e Aet. Rul~ "nd lll;;guJ;uionl oUhe Rctll F..Iltatl:Commlaston and aSNeml!'nl of Lhol'""rtICl' to IJI tnm5!u:t1on 111.1111
be tmmedf:ltuly tnlI",.ferTQ<;l. to Ul'lll brakOl' with thc "'pproprl~M ,,:odce to tho por.1O'l m"klns: f\!c:h deposit ftl\d fa Broker.
13. l....mrll"cttflon.
SDIOIJr.nIOn ,ball indemnify and hold 'Arokcr hllrmlel!ls (rDlllII"1 IInd aUl;llaiml. con.;lIabililJ_; andjudtcmCTllI, tnehldlnl"ttomO)". foO$.., llri..lna:frnm the In'l:"~
tI<m. o.rccki... IIC,""O(Salatpcflon,orActl out$ide IhCllICxrpc olSaJcspt:l"Soa'l 811tl1ority. . When Ihiptionor H dLsputeatlSOI COncernlnB" trlIIl"UI"c:don m which
Snlapcr.aon WG.IID'VOJVC~, "he: panlCII bol"Cl1O 41\1111 muhQrllYiClI;.operate Wltb each lith CT. Tn c1isp~tcsor 1It:ia:allonwben!llMreiR a clltlm tothe Cf['CCI fb"t Sulespel"_
lal\ h.1 DliItQc;t Inlcn'liomdty or nx:;k:I~ly 01'" outllldc the scopo OfSIlIOllJ"ClnJ(l'1~ I'uthorhy. SIIlD.sponon lIhall b.,.r the i;loltl. expenses and Ilabi1itio. tnoJudln,y:
.....ds;mcn1l .nd awardI'lIlTl"ina: f'rom tbc;df6PutOO1'1itigalinn. To dbp\l1c50T1ll\gatlon whero lhltTClhlllcl"h:n ro,checfT<:c'ttb.atSalespenon hll. .llctoc.Jnctp;lipUy.
SalOllpOJl\Qn ,hlllU IIlum= thocOltll., ",xpm__ndlhlbmticsineludlnaiudgmcnbJnnd IlWflW. ~ri.l01t(rol'n. the dWput"~r liti,alilm. Sueh dl.arinj: ,hId' be10 the
lUlmo l'T";tOrtion ft.. Ule divwon orC::Dlnmla.lllon Wft:ll, orwouJd hBVU hecm, f'rurn thi: lI\1bJcc'ttransactl,on. The .barinSC1rcmnll.,~xpl;lnSCl,lInd lillhll111u; llhall be
w1tl1ouc prejudietl ta B~k='1J rla:l1fll oflndcm.nlfi",atlon LlnleAtI thl:roha.. bel:Tl.ft resolutLon of tho mdemnIGcatlnn Iqllc bCfWCC'n the porllal'lCTcICl. Ilroker IIh..1I
.oll~ICOUI'l..el .... Tllpr;SCl:lt Broker's and SlIl"'''PDI1lon'" fmcrC3tl 111 Utica don with CO.L'I hurnaby thg p:amcs in proportion a:s:sl:1 fortl\ lI1'>aw: pCr1..Ilining l~ tho ..h"r~
Ing ofQoMlu,
14, '1brlllfmulcm. , . '." '
Thl. ^tP'Mmanl.. Ilnd the n:1/llponlblp ctOll(od hereb)'.1'IUL)' be tormlnat!:d by cltbCT part)' h"'1'eln. with'Or Wlthour e3UIlC. at any tIme npon wrlnon notkc. Uf>On
lcrmlnatton, Ian nOlJC'/tl.,tlon,. QOmrol:nclDd b)' BlllelS}'lal"llOll durinlllhc r.=rm ofrhls I.\gJ'ecment .111111 be hal'dlcd IhlT.lc.b >>rolcer ~n(1 with Illch UIllilltuTl\le """
eoor-et'.l'Ition by SIIh'IlfK"",l;Jn .. hi ~alonablo uncJOT tha giTCum~blnlXlS (or.'lbc prolccllon (JI the in1eTG!OtIJ or tho panlc'S 10 lhe: real e:Ulue (TllllA8Ct.nnll involvc;d.
Stll<l.pCntlm, upon termination, .hull rUn1iJlh Dmkorwlth II bona fide Ilal oroll pl'Ollr'lool:ll.IOIIds. Rnd probable lransac[fonlltlcvelopcd 'tly S"l~pcneon IOU: well as all
cOrTClfHlndcmeo ..nd doc::umenLll dtl*<:ribiod In P~r.8'n,ph 11 a\'>o'o'O, whh.:h un, dClCTTIQd lo h,;-"hc property o(BI"O~r. S,de,pc""on f1.ln:hgr A.n:::CII rhat upon 1'01"-
Tnin"tinn, orin antlclplltJcm th,p"r.,nr,l1a/.ho ....?11 fl~, fumilh toa"y pcnIm'I, Brm.eoml?"ny orcorponltloT! ene-aged. in thcTCM1 ClIItale bU:lolne" ROY Inform!l tlon as to
BTDk"'r'lI ettenOl,I:~llIItomC1'8. f'l'Dperti8N. pric_, tolYn" or neaorh.rign, nOT Brb1c:ar"llpnl;ci"" 0;>" rel",don.lUp. with cii",nu And CLL..1DJTlC", nOT fl.nyothlll" lnfonllillion
cOlu..-emI1l5 RTr>Ic:t:l.'u\d(or hls/h<.lThullill_li. S.I~pl:C'lol1 .1l.1I not. uRvT tormin"tloYl tl('thilAI~mont, orillllXm~l'Il.ti<m thel'Cof, f1:;JTlO'Yll rtom th., fiJoI or
from thc OmlXl of Bro'kcr any mQotcriaLII, d.tn. publiCl'lTlonl. correspondcnce, me.. f:>r tnrom\..don tlUH.. 'Ptop.llrt)< <orBn::>1c:tlr. R...1elpc:l":tlon .lu\lI be entitlod 10
coph:~ arcertaln instruments per....lnin' to 1I"11n.ac;:110n.sln Whlch.SnlC11<pl!l"lI(Ift,h.s" bona raclc Int""""1 or {'~..lnlns;o ofU7\inp of Stllup<:nofl_
J,. c:w.mi__"........ 7ltmti..uM.
Upon Ionninllrion, SlIleS1'Cf'l0D 'lI"h~l'CIl)loommINlons on anyl'dl,n~..ati..n. where: a salescOnlraelil..i""u but the tnn....crion hill, nOl Clot.Ocl,lh",lJ. al\arlbo olOllln.
of,\II:h'Iran.aCliOC1, be paid tn $lIIl.,s)Xlnon 111 accord with che S...I...speTllon Commission Seho<i1.lklln colTed lit th", 111D'" of termination, Thl!rO s.h'llll ~ d.ttdvlrtcd
from .uch,sbaTe, hUWCYnT, a lorvigina c1uu'p ofC OJ' -'-'-----'-'" 6f (be 6...C'nJnt nf:thr: littl na: flnd/o~ :Illl1es commi...ion. whlabaYCT 111 high..r,
Nocommia~ion Qtherth"TI fOr tholO p'l"Op.rtin on whieh IIn aSl'CQment:!l,1U tx!lan Iti.~t>d and .ecoptcd In Wl'ldngbythe bU)''''' and ...Iler 9n Qr bcorof"\!: fo:nnimltion
shan b~dc"'mcd earned by Salosper.lOn, \lnlc.."Qthenvlsc -arced In wrilin,g. Llkewllle. noconunfllSlon rClultinllfrom lh~J;.dT'l. larnml.nr ''''0 Ten..1 OfpToperty
&hlln bClp.id tg S"lc:lIlpcnon following 1cnninatiOT1-irb thl OJU:OpUcm OrCt'lmmla$jon~'.rrllljl\S ftoo01 JODICS tully Il~OC\lCod prioTto tannin~tion ""nd rottoc c:xtenl
th.t I~~g PQ)'mc:nlS 1ITC: ro::civCld prior to tcrmln.dOJ1. Sl'le.pcrlon &b.ull not, b~cr,$hflrc In lbe eommiSlliOTlI paYAble In the fuhlrclllncl hllllcd upon the lease
optlOOI'l tlr h~IIR p41ymenl. not ytlL due alld ('JlIY'IIble.
16. 'Arwrr1r1."'"rrooo.,~,... '" ... .,1,' "
Upon tClrmlOi\don by elth.r part.)'. BaJClJp."...on strllJ1 immedialciy:, .: '.1..
") IIl1bmlt a 1cuor ortermlna(jon willi n CC7iT1plQ1lr; QCCO\lnnna: OfcommjBliD'1IlI, 1:I11t\np and b~YClT eHenn:
b) return aU suppUoa, 'llliOtH/cu.rurnor pnlllPOCX li.I,-> 'key5 and. documenu ernu.ldercd propCl'1)' ofBrok~r pursuant to Ihe provi5iolils ofthill. Ae;rIlCnlcnt;
g) mqc7l with Broko1' lOT PUI'pOi$c.:I\ nf IIltCln'pf1n& 10 mutually np'08 Uf)Qn ill finlll BocmllntinB oflCommwiol\.ll due and po)'.tlble:
d) \;~CT8tO in the notification of the: R.QaI E.na1\1 Commis.io~ ~ardln8 the ~rmlnadon of the N;la1!ornfhip oC Braker IInd S",I,Cllpenan.
17. Ar61",-do'ff,'D'~ ". . " . ,'. '. '''' . ".','. . ,
DilJllaTCertlCfttllordi.sputgbctwcon Sl'lle.1p.enan lInd BTOker.nrhctwClC1l S"ll:lpl:1"SOl1 ~nd,1I nt.1.llNl.lO IIQmIIHl IlaRoclatad with grccmtraolOdm 9rnkcr,~nd wlllc:h
arillDout'Of. (IT In cc:mn$01l0l1 with, tbe reaJ O,StIIlCbualnOllIl.and whicb cannotbe adJu:sted by and b"'twCtln lhe particlII involved,lIh.all bellubml1l'.ccI ft'lr afbltrll'ion In
IIIX1QNlInoCl with Attlcllll XlV ortba COde orEch.ielll nftllc Na,ional A.sQI;iadon otREAlXO~." By tbi:s Aatecmcntllllid aTbitraLion ,trail bcm'llndalory an(l
'BmkaT.and Stole.penOI1 .IP'OO t01>"Qvidl;lll writtan oIl..p"CIomen.t 10 thl: 10000laNOClatloa oCREAIIQRS- "" mll.Y he requiTed by said ItSlociadon a:s III conl1Ulon
PlW9donl tQ IInntrolion.. Broker And S..I_pCl",Cl'n alRe fO lx,bound by. lhe decision or Ihe a.rhitralian IN'ncl of Ihglocal a"oed.LioR OT (he f'cmnsy)vllnia
ADOQllldon ofREA.l.rORfP ""hieh hallontort.in.w. thodiapulc or dlllftltciOn\CItlt.. ThoGQad.uQ\ofiho amtlnLti<m ~h""l baBqVQmQ(1 by ,1ICCod. orS,hJw ond
Arbirrarion J14/1nuaJ MOdII reeonlly publi"had. by thQ NfttlonaJ Auocietion of.REALTO~ prior to Arbitnltlon, as amended by tb(l loct'll association
hotlrlns fho dlSllutG.
18. A__.m..,bb.
Thia ~nltlnl m.y bQ ll'''o:o.uJ..... .......ly by lha purth... h"rc(o, In writin!t'
19, GO'f'Vrnln" z...... .
Thb A.l:rccmont Ihllll bg~rn.;d by .,nd fntorprtltcd pUrNu.nt 10 the laM 01 tbc' CommonweiIJU'l. or Pen.nsylvltnill.
20. s..c:--..~ I. r""rQf.
This I'\aftltl1\lcntllh.llln\l,TC to ,hcbGneflll!lnd ~ bindin;; upon thc.sueoc:rsors In lal",resloIUrokCT. Thill Asre:cmetlt. how<:vor, '-ba.ed on LhtlpenonlillloOlVlCCli
Q{ Sftlc.pet'Son nod SIIIOIIJlO""l)n ,,,,,11 nl?~ lIolc:l,':l!lte Or ",,,..ipl Imy of SaiC'.lIpcl"Son'. ri@;hlSorduth::/>hen:und.erwjf,boulthePr\orWrltten Conlletll (II Rr(lk"r.
21. ^,Ho/ M4ftIt_1.
An)' QmCC poHQY or TUle. al'ld ?">(ledun1. ","Rual now CJdlltin~ or her""f'tc;:r IIcJoptod UT.Dmc~ded sh,.l! be blndinE on fhc pa1"tiClII.
~.,'.nff"""'~r:n" .
This. Aarocmen( qonlll:!tlllaa tho onclrc n/P'l:cmenl betWC:I::" 'hI:: J:hvkiV'" Ilnd SQlcsponmn. ..nd there nr4 1:\0 ~ml::nlll Dr "ndol"1lloT'ldinS" nol CXprC:NW
heN,n.
IN WrrNESS WHEREOF, lbile Agroemcnt has btlan c)laClUlo;d on the dohl Ii.....t II~ written,
Wl''''#:l,/ rd h~
~~:~- ~ -A
o \
K.....___
"'
By 'Bm.<'~~~"~~
By lJ.~#A J\,
Jb...-n
M
.~.
IlIrok"~ld lItnauriO tbatWri'ltert offim: piOlicicll dClluirfloln&saJeRp~D" A_nol.1 pblJa;atlone with 1'eI~ 10 OMlOlO &Up~lIGJ. fCIClphcme,ctc.. ;,ncln SDIIIlI.JlC"01l
Comm..IUoIQR, &hoclula 'liTe provided 10 S..w..penon.
CO~lir$> .....l-IlTIl. "'Ol(~. yeLl.D'N, ilAUiSM;1'I1iIOlII
__vu-H......lJ8;QCHlonO~_........TOfIII). ~
""w
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.
11/28/2005
Received 11/28/2005 10:44AM in 18:24 on line [12] for 4659 . Pg 32/33
10'42 717-761-0S23 JGR ERA EXEC
. JjKU~K 1 !)ALI!;SPERSON
INDEPENDENT CONTRACTOR AGREEMENT
'fbi. r..rm ....""'"""""d .QII QP~_d 1'."., ""'.... '"'NtlQ'(IIID,.-...,.... _"'_~ ..r.... PclllfItlII"""'1. ^..m..'''" r>tRIlAt.TOR'.
PAGE 32
Form 150-2
This Agreemen1 ;8 1Ilnk:n>"J info 11:11.
tU;ll:'Cil\llf'l:Dr nofe~(J..... u "B1'Olr.oT". and
, ~ "
./3. ... 0( It: I. :z:f '.._n~"? ~v,,;:.#~ A"E'~~
~1C.~/, ;~~~ herdn..n~lOr~ncd 10 "....SlIh:lllpclnlM...
Whereas. BJVk".. it """".BCd in bl.16:iMlUl &II II H.al &~ BNkllr and III cItlly' liefln~ (0 on'Bast: (n Ihe "acll...ltJes Qt. "BtOke..".~ daf1n~ by th.. P.c...u.'yl......,i\lUllll,II...!'it;
find J\q,imnrtiooAc\. "'~ori'ebnlll'" \9. 19'&0. p.1-. 1:5. N". 9. It. nmemlcxl. and .
'Whereas. Brobr mnlnadn. OM 01" mora omeea properly ~rlpplld widl nb'f1illhin~~.'ij..jtiri.c bcJok~ I!l~d other cqutpfll\\illl n_ry A"d lneldcn~"\l fn the pmpornyt.mtlOn
of ltAid bVllnclll. and starred with clerloal omployMt..and ill thlllrcby KII~table au IQvll1i !h. public .~ II ~III I.lllte b~("(ct': 41\d ' ,
Whereas, BI!cllpl:uon I' duly 1I~ 'by l~ CommonWOllllh of PeTIn~:ylvAnltl (II .1'J=aI amtO "'1I1e.s;pe1'.f.Otl" Or wUlInctlr. bt'l:lke.... .., <kRnod b)' the: I:'epnl)'l~nin
LiacnlJinl"nd R~'.lItlon Aot, IIn<' ....hol'Ul.. h h. deemed 10 be 10 Ibe mUlA.l .g~tll.ll:. of Broker and 511M(:'lc,l'l'on 10 cn1Icr WI ~0atl"8lX upon the tcnnit .-nd o;:ondltlonR ha!'C.
i"t\fUr lOt tbrth. . . ,
NOW 'I'HEREFORE, 1m ADd In oOnlJl~lion Df the nllll~lIleOWlnlntl Md Jl~m~c' ~~in (lo.ualncd, 1m. undc:r~(Bncd hereby GC1rc"1nto IIw. l'ollCIWlng IITtlelell or
,,~I:
t, l~tl.lItCo~ .
'fh. \"01Gt~o::m.lIhl"p <\f S\\lo.pt::f5On t:(lo &to'<<er is thu of 1111 ~iScrn CQnU"i1Clw, In IXIrfonnltlj: tho IIcllvldes c:rf I nIl ..CIIM ''tllllowperpt)fJ'' a5 dClftncd by ltre ROlLI ~1111,"
14lcenalns and Kea:i$trodon "c;ll (heBiMfte:r ~ to 11M "Ac~", $llIClpl!l[W(ln 111111 be..f\'eC\TI ~ ~ p<>f1:i.l;Jn ofhisiher rim!;!, ll'n.r&Y. effort. and skllJ, al hehbe deeml
ILPPrO[lr:l...... In koepla(t with the tnd~_ COh~tor l"'alUl!. S-.l!"'PllrtM ,1\1\11 ~ re~pmllbJI fOl" ~pl",tiCla on)' fr.ll1inll requIred by.tl,e Act or alhor II"'''' of,rhc
CvmmC'flw~l1b r:4 F'ertnllytvnpl.aj Slll~rson ltuaIJ wO'rll: on a COl1lml$lllr:\f\ bull al\<J roc:caw ,~ W4fy, tnn.p bene'fi~, medical ~tll, pe~'O\"I Mnel\\a, or pro:ft\ thlarift8;
no IItlltl:l. local. unemployment. SD(lI.1 SecuJ'By or- hUll;n".. prJvllop: [IJ;P (wheR &(lp14Qiltllc). lb.D.ll bl: wlthh&ld Iran:! $.lelpwllOn, $alCllperson ~1mJ\ ply nil ptOfa.!dCll'tcol
li~nll", '- crwnil tlnd enaiwQns InWfADPO premiums ((lJIcepJ AS otlllltWlRe provJ411d beriin), ",ultl-llltJA. r""ft and/or ~mpUI"r a<;:Ccu tcc., S"'llJlMt'SOIl Iih.ll nQt be
t,--tcrd ... _ .....pJo~ wJtb l"UPect ... th. "rvk:Cf: pm-tnr.nod hereDnd~ toll' r6dahli eN- '-11 tax purpo"e>lur' Atr pus-pa_ upder lhe Wn..~l"" Compa.....dQI'I Act,
:1. s,,1<f1.E;JTort. , , . '.. , '" .
salaMpe~n 1llll:I'OG41P IIClI liS an Indmpendalc nNLl "tin: ftalelpet.101t I.nd IltuaJI hUthrutly. loy"rly ilnd le.all)' enlAP.bbn-- d'l'"ortl to sell. Irllde. 10ll$e Ol'fCnt Itn)' Gnd IIl1 r-.J
aaWO li,ted wllb Brok<:T, 10 W1iolt IIddlllOl'laJ ltllllnp, WlltOmCl't.nd clill"I' t'orBrr:tkoT, lIt\d.1o OIhc:;twi..: pwmate the b\I!\\nWiIl. '3f1l~r"\"IIllI. ~1blK; In Tlll>l C<&tllte t"""I1Q.
rhnlll tg 1M Oftd thaI cac:h of' ltle p.o.rtl"'fI h-u.tO mey donve l:tWi &RL\1elit pmfit po",.lbla.
3. OJflc,FiMtilmn. .
lhUk!:f l!llall ftel\"\. ti~ <<) time. dc:;,tplIota~. 0",,_ wlt'n 'Wtli~h thg S.'C5JlC,1:Ion l'nllll hIl. Jluochltcd. Thai omOIl _b.-II b; provided wtrh SllCh (Ilmlminp ~nd fIq'llipml:rlt "5
clcc:rned n~Sll/lry II'l tI'te (l~9tCltion gr Broke( for tho proper opclllukm or II real CIltate ottIce. Brolwr .mal1ln11ko av.i1ablc CiO dIo S.lcKpenop Itll eu....ent lIetll'" of tho of(ll:a,
."d -sr'''I, upon TlX]...I, to _aiM tIl,=, S~\c.weTllOn lr'l bWber wOlt: by Itdvlc:o, l"atl"\~QIi, .aVId r.xIoOp.ratkxa. 110 dlC cxteftt dccl'tlCd Ipproprla.re h)' ~t'Ok.... SIII....pr;!"on ItIII.lI
p~)' for lona dial"""1 telepbane Ilhftrpl and ref' IJ\lQh ether fmma, cqul~t, IUpplles ILIl ~hall bl:.flIt fOftt\ In a<<J.~'1 wnltCl.91 offi~~ po\,..~., .
4. ArdMftQ6il., . . '- , . . .
Slll~pe>rNon ,m(lll rumllh hl~,er (l'Wn lulC'mo;>bUc tlnd p.D)" all fe.IGtod O'IlpQflH!l and Dmkc.r 'hl'lH ..,V<:' IKJ nqponlliblllly ..clll2l"8 to $lIlfllllpu">n's ulItclmn"'i111: 01" trllnlll'Clrr/ltlon,
S;t.Ie~l:fllQn ",roe' \Q ~ l\n.b\]ity tmlwarwa ~ hl",,",cr' nutomwlle wltb mirrlmllm \lability UmitH or "00,000 ta.. <::.,..11. penon Ind $500,000 fpr OCKb acclclenr And with
property clll.mla:~ liabilIty limit/! or $:50,000. ,Spl_porton "P" 10 LUmllh 1;I1'Okcr' with 0 certl:flcnte .....df')'llll compliaTWCl wtlh thlll requirement 10 be dl:pr;-..lt." with BmlrCT
on << bolVn: dt<;: el'l'tx:dvo dQtc ;lIn(! CIIch l1::'IlCWlIl dnre uf lhllll Apeu1nCJnl, "r It (14M," iim<>ll ~Il Ut'Qkoo- mo,. rOllsono.bly ~Ul:n.
3, CA_,-"I()tr.,
Salcspet'8Cln ahall br;: 61l1itled ta" IIhAl'O o1th~eQnl."i..km.II cuned and rocel"\o<Cd by Brolmr In ~"CC wilta Brok.crr'lIl'.ll!Jelpetloo o,mmlulon Scherlule in l:d'f'=1 ml thlli-
dAte (If the PClr emllliln. S.bpcrson co 0. gcmlmlulOfl (e.... obtainlnll1hlrilll, plDc:inQ" prnpc;.n;y under a,:ramllnr of .1I1a. ~,) or all arherw!$O ~d h)' the ptlrtlcl>, In wrltinll.
a. to 11 pcIrttC1l1",," t1>;l."IU~llun. 81'Oke, ml:)' l\'1W Iv. Sllllnop~OZI Q)jnm\~IQn Schcdule 'rQlTt time ta clmil,wltllopt pl'"l(lr notlf5c.tlnn. R,vlli(nl~ tlllhl\l ~ched...k: "h.1l be Immc:.
d1ateJy lIJIpllCJlbte.lC> All rut\l,.. tnuulladl'l"lI'. The divialon oI'oommlslllons bctWtlCO Brokei' end S.lCIpetlOl\ .h&1l follow dcduerlcrn of till ~enlle. 4\Coordln~ to th. SuIc..pc<W1II
Comm;lll'Iion S.modole, In no CIISC!l "bin BC'OkeT bo 11<<1)1e ~ .s:.Jc:ftpcnen (or In)' l:Omml..IQnll Mt- ~Icctz:d. All ~ortlmjalllml' derived tm", a tnIn...ctj"n shnll be dcpnslt~
with tho JJroker- II n:~lred by ltm ~ andl_ Rule. Gnu Rc8\l1"tlone CJf the R,enl &'UOUI Commta,lcIn In<! Rbwqu.cmtl)' pv.w, ~I~ to the S"'~DlI CpmmlSlllon
SchDdlll., Thl. diuribanten lhalltak. pili" .11 :tOOn tI. praotlCltbl1 nl'l.er o(llleomon Gnd moelpt or lugh "nmlTlieal-. II Is ulttlen;tDQc1 and rlj:rood dllll t1lc SuJa~[1Ql'1en'. only
~lI"erD.tie:l'l for tho urvlOC!l beln, rendered Im"- Ihil AS"uunent I:> the SliIlc.pllilr1lon'lI share of Iho,aommlulOn:ll p.IIl4 b)' lb. p...rTie' to real Cl'Itlf~ t,anft*Oiiam.
IS, cn.1U F"'~ .
In nn eYfJl'lt IIhaU S~Jponon Qhlu:zotea, Ihll:n !he commJII~lon or fl)e.Cln'blts~ by ~ Broker wilho\ll the prior wrlttcft CI:lTI~l".nt of Broker. lr BtokOT IIh"'j hnvQ gnt"rl:d inlo
I lI{Mlci(l1 COnb"J1C71. (lI' ~r PlnIlW~JI 10 Illn)' pll:rt!gulE!T tm(llllCluC'n. Broker ,.1",n I\dviao S.1~en:"rt of ~ucll special ""''''II''Ht'lClnC. A.ll QOthl'l1l""ionl and fCl1'll (rom II ~.
dog1..r 'h"CIMllC1lnn ,hall be pI)'.blo to the Br~r, S.ICII~f~on t1h.n !)Of be: -pcl1Innllll:y llabla to BroJrbr (Ol'" 0.1\)' ~l'l'lR'Ii..lion:lo no\ 1"eCl~\~ by &rokM fl'"om pllmll to ~ n-an,.
IIl:tlon \1nlel:a :>uc:ll nonpioym.."1 ill (hg rGlIlllc or COD\llIIlOO, 1l11ltntltlnlll or mcklCIIll QCnduot. Bro:ker .1'uI1I hll" the CJrolu~;ve ria"t tn dllllrtl'llno wlllthe.. tC' el;'oTTlm61l1>G liliglltiOn
tcI coll.Ct II QQlTlrt"Ol.ulon C'r ft:4. or II> lICnJc any olalmro.. rtlll .1Im&,
"1. ElHk4rw1.~',4..."i4Uoftli,
Sai"spellInll1l1l4 Brokei'" 1Io11lln goonduct blllllncn "lid !'eB1l11l18 worldnS "'Ilb4d'11C3 an liS Iii mllnmla o.nd 110 lncrtUUlc: lhc COed will, bU.IMHII, profitl. and rcputall,," or 8rokcr
and. Saic)lpllor.<:>n nnd o;:it<:11 ~...u tn Qo:;mfonn tn 'nd lbida by ~1 Illww. rvlN.encl '"'8uIQti~. a"d eodc M ..lhica thar 11ft bindina: on, Of IIppIk:able 1<1, rc....1 ..IUne broken And
~1I1~petIOnit. Salupcr,.,.n ond :&nalr4oJ' .hllll bc;:.lWVCMCld tv ~he Cod", ot'Bthlal Mmo Nadant\1A.J8octali41l. 'Of R.E^t..TORS-. me Act. R."k~ anti ~IIItW"1 ai' tl!.. R....J ILahlw
CpmMlMlol'I. .,IM "lime n\1lY bo from t1mg tn 11m"" lUrIcn(tod 01" .vrpJ.m.nlod, ,bo 1l000.ditlltion and by-]PWlI of rhe 100111 !'enll)' board (Of I~..m attMr bClllld or i\QOclotlon lU
111:1)' be qrQCd upon), and !be rulCll Jlnd ",plR110nlof nny mulllplc'Ullil'l*lIcrvl<< wich ....l1lch Broker mo.y ~w or In the furu.... bcnffiUlItod. Broker 11'1(;1 SllioRponI(ln .hall
rotll.Jn Qlomj)af$hlJ) In good ,..ndlns: willi tho NlIIlienal A$IOCletlnn.of R8ALXOas., tho;: PwI'Il'layh'nniQ AlUIacinf:ioll Clf REALTOR,S411, tllll.1 a... loc.I tollty baunl 01: ~'Io;hntoo
dc.lanntod bf Bmblr rw AS ....,. Ix ,,~ \.t.SKm h'J I~. partk:s. Wne"O"lI8f' BJrJkcf" \JIll. ...<o>"ibol'..c ....y ......l.;.jl.1C OfltA.,I:cQtioll whio:l. n;.qulm mell)hurllhlp of ,"lJll,.,.'-pr:",on In
l'llld OI'.!lllnl>:lItton. dlWi ~1I1~rson llB'J"r.r.. lnll.t bItI1:Ni ~ball ~eI!, ......'I"Ibw.~OIJ II"')' r_ orOtlcl Mquin~1J by such mcmbarvll('l, 8wkcr IInrl SILIIlIlper$WlI a"reo 10 be rJlltlll1.l
bY ,"'CO rvleJl anll reiJIIIjtlnns of"...da OI'IPU1hulJlollll perul"lt" tl:1 cthll;:5 llnd.sccmdtlr'dll (If l;lOndu.d tlnd prfll;'''''dul''ill. SIt.R:~rllOn ~knowlcdlOJ ~culoft at a l;lUrront cll(l)' of
the PcnnllylvlUlla RMJ 8IItt1111 t,.ICll:ln.tn. Ill'ld ReUJlltl'illlnn "ct. Ihe Rule.; lInd Rqullldanll of the P"OI'I,)"lvllnl\\ "clll ~t. Comm.\Nttr/I, .nd 1l'te COOl;: of61h101l Or'nu N"flonlll
AMmcladon of l\J!.A.L'l'ORSC' 1)J111 Dp'M8 lO bt IIppPllod or tho rrtl\ll$i~lI1ho..of lICll1tlll Sul!l.'pc"l"Ion will j;ortdUC:1 IlJllI<JdvllJa$ in " man'l~r OQ~llNont wll-h $l.IOh IlIWs l1nd
etMc"" .
$. R_I R1:lt:m/limJ"._ 4"'.1 /)Nn,
SlIl..perwon 111011 plI)' I"'" otlOlIt "rtm)' fll..i ClltAtc Ilc.PSG mq.ltred by't110 pt<l)vhdo". af fill)' 10..... gr l"Csulo.tlon ortlle ClImltlWl_lttI of P'lI'ln~)'lvanla. 841e.;pc>rll"" shrill fUrlhtll'"
an..ure In." Uw. o:qtl jJlllmant.~ foI'lfa''il':'~ll~ nl . ~1I1 "tc -'ll.l..pcl~ by the Connnunwallth of PMR."l""."!,, 111'6 lWrtiltflcd in ev"..y J'GIpOCl, Ll'lcludln8 thc:I t;mc:ly 1lI.IIlIrQ~jOfl
of malldnlOI')' cC'ntinujl1l1l"C'~cnl:iOnnl re<:lu1l'1lrnnh. 'SI\gpel"lOn ~, PlIy ~1l duOo' rnr m.mbm'llhlp il'l the: MsoolatlOftS set f<mll in the pl'GCettina 1'1I1'*(j;napb or 111111 ^lJl'ft'mcnt
l.~ ,,\hnoJy ,f'bhltm a1'ld "hnl~ po)' ~ll taxa!t" may be levied upon cna,_ CIt )'IT'QCl\lOlivlty by the fedDNll JlOvcfnmenl, the Jnternnl Rovcnull $~vloe, the Commonw8llltb of
Panrllll)'lwlInltl, Qr fin)' 1o<l,,1 munlclpallty or ,,"elwo] dllRlriel 0.. C'TI~r .\Ich iflxin/J ,!II:ld>orlly h''''''dtC', but IIlOllimi'.d toO im:<lf11. tlXCOl. ClC"CuPlltlol1 AnU llCCllpnlkln rw1vilcsc tnllN.
plJl' II:lIplta.tlllC,'l. merelntllo VI" buslne.. (Irtvlle.Q;e 1lU1.S,
"
O. A.uthllrily Iq eo,.,nra,
$oklu-pcrtlO'l s!1~tlllll'Ye no .authority to ttllUl. ohlllAto IN" C10mmlt Broker b)' ;'lny promi.. .... n:preurltRtl",,{t. ~Iglll s~dtlclllb aulhQt'lUI.I by arokcr in wtitins; provldcd, how-
,,";rar. 'haC S.nJcaflCl'll-"on llh.U ond It hCfeby lufhorlr.od 10 CMlCU~ 1t5llna II,greemcmtll, buyt:f' ll.~ cQUtl'8Ct,,- r.I\K mBIY.\t,-en\en't t'OtIV110"f,l, a$ w<::n Ita all ncItlenda llond lI>>rcc-
m-1II llpponcnfllnt t~rcI"o for Bnd OD beholf" or BlQkct whc... 1101 In eonfHQ\: wllh Drokcr',li _seney practices llT1cl ptovitlod IIUll thc l;:Ommlltlllull lnvCl''Yed In MilCh tl'lInlllo;:lion
i~ nClt lNfl th~n th.&t d""!ermined for .uGh Ulln..Clft(ln (Pr llWVico by 8rokor. PrI01" tr:l cn(.rblg Inrc any III~ch contrrw::t Ot" II!Irce01.mt, 311118pClI'S(IIl .l\~1I o;IlSlerml"c rhe aJJlll'lC)' ~nd
ml.....cment pnlQtlCollII or Bmlrcr.
",
10. R~ aM Om/uJt).., TNnI,.,......
S"l11lopon'loQlt ~hIlll coopr:naUI rully wllb Bmll:.., In obt~lnl"ll CrMrI IIno;l umtlllll(lnli 1l0000000ill in M lIn\nullt, nnd wl\h dod"l,lCllblc, "' ,htlll rrom lime LO 1111IQ be: dl:hJimincd by
81'91lClr. S"ld i"",urllnC6I1h.n protoct Sl'lJa"l'cr.on ngllnllt UIl>>IlIt).' which m.y nnM in COlll'lecth,", with Ih. OOndllCt or Slt\eS'P~ n:; Ill' l1&tl_ TC:1I1 Cllllnle iloenllCO S.ld ponlk;y
~r 901lolc.r. .kIIn c~l",... .t1dnn~menl J'OItmio.g Bl'Ol(er and QI'l)"llulnidiurl(;if ot 8:Jyll:er..Ij 1m Q~cJirlDnnll.....ro<l .nd IJl1all..nm be suqI, eet tu Clllnce.Jlull(ln OlcllGI'f o~ II minilllllm
(If len {I (I) deya prior' written nmlr;o tOo Bro~. A can:lflaMl of .'III.ld InNllr;tnee ~hflll bll d,poI.1od with l;Iroker (1n 0.. bef(lre the lanll.Hive dll!>g ""<I OllClh rellewl' c;L...,. at tIli'
ACl"ClC:mC'nl. TIw CQllt ctf snld iOllutnn(IC "bAil he :P"1.1.1 pnl'3Ullnt kl1ho wr1t1'lln pl)h(!)' 'lJrSrll'kw. v.., In 'Ihe absence Ihereof, '\let! (lost IShII!! !:Io bomc: hJl "Brokll.. nnd Sl'Ile'P"'"'t'lll
in ,tho ~II':'~ p~port.illon '" they woulll ron"lnall)' 1l1~re In the <)Ommtul..... .,"u1tmlal fr\m\ .1\011"8 IIAd 1'11110 of It pmJlc,"!)' u.ll lWl forlll In Ihe S:aIQ$poT"lmn Cllm",la~ion Setlooulrl.
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Received 11/28/2005 10:44AH in 18:24 on line [12J for 4659 * Pg 33/33
11/28/20eJ5 10:42 717-7b.l-:-.~~~_3_........,,_ ,JGR .E~.~ ~XE.~
SIl.I~rao,J 11&I1111I, UJut IIny .'1\4 alt 1I1J1nv, of propcrt'y, .pooy a~nta. .00 .n .QIC1iOOI 'Iki=n ~ ~Q4 with the 1=-1 MUle. bulllllCU. ahall illJ In lbe ....me or Brtlker.
UlIdD&:' olld ....nc:y C:O"~ClI shllC bo tiled ..Ith B.flkr wllhln tw.my-lOuJ" (24) bOil" "ID'!' flDl:llpt by $..lctpCdOn. ...U U&ti",_ and "Zel\C)l OOMtM't .hu,n be:. rlllcll'flmDl" rbQ
<;xc;lulIWtl :property orllnmer. All CnrrelIJloMISnCI l)IICelvOd. oopi.. t4 c~pOPdcngc written: l?11Mll~ nltlftll infonnlltlPn, mamorilonUa. Illctl, pMlOj:roph" reportA, leBal opin-
IOns accountlnl fnbmQtio.n, aDd 11ft)' IlIIJd .U OCller InlltnlnHllWl, doevmetltH or Infotl\Ulunn ~f DI'tY Qllt~"" wlul:bfQC:Nq concern1ns: ll'aJ"IIClttC"''' Ilt\nd1ed tJy 'Broker m
SId~r'Qn. 0.- jaintl)'. uc and wll t'CJ'h.i" tho. ptOporty or Bl"Clkclr pI'O'Iidad dMC S"kI.pcrollcm i. entitled 10 .. ClOp)' of Iluch lnllfT\lment:l and Inforln4llall upot\ ~l.c
l'O'laCllt pl;)~il\l. any tl'Qn~ in ..,triuh'~ ,,, P.UOl'oll.lly tJJYVIyad. Tho; paroc. hereto ,baD muhl8JJy aJ'FClY' llnd ~r.... "pOOR nil cPlTCIIPClndcm:c from (he atnclll oJ
BrokcT pennmtn8 10 manlDotIDn, hundlad 1;1)' SaJc.pan;on. and Man t'tutJtu ..... on thtl "~m~ tel be_ """0 lWd die oonlll:hOl !If all COIll:Z'actt ltnd other r(lr~1 bef.;m: [h.y QI'O
prelO'ln..,.;:ltocIIDnOlMdCIIIflto~rarOTdcn'lUre,". '..... ",. , "', . ' .
. ') .... .~. \ . '. , ... "
12. 1>q1wm.
All depo.i~ ...~lved 1:Iy SAI.~IJ In tbll cnuna 0/. It:al .stDlicI tTlIn,DCtlon (If I\ny nlllturc Ihld) be tmmed')~y tTanlr.red [0 J.I~ for' dopocil pU.,.l,Il.nt hllhll ~l;t. 1be
R.ules .rod RqulAdOnl~ or rho !to., 5ftnCC Crlmmln...... 1.\<1 lhe ~'Dllof thtl :pfIrti~ 1<;1 the \J'aIIlPICtton: pnwW;tO<l, 1I00000llT, that .ny deposit tQ he rnlllntalncd b;, ,,~
~'kl!ll" of record pUtl<l.lM\t!JO the I\el, R~\c.II w.nd R1>pl"tkm. vf 1ll1l ReaJ 1!JiUlT. COmmlftl'lOn and l.p-c>omel'll of ltole PflrtiN 10 . Imnl8C1thm shull be ImmedmleJy lrllMftn-.d tt)
.ullh bmlClIf \lvlth the AJ'PIVJlrllro noLic:e tn tho penon makinilllueb dOpclRlI ,..,d 10 BTClor.
PAGE
33
13. rnJ~_(jkatIrm. ."
SlIlc.,peraon shall lnclcrnntf)> (lDd hoW Broker harmlhll tram any .nd. l\1l c"imll, COil'" UabllttJn. And jUdgml!latl!, t I'1cludlna Iltklnley', rcQ.fo, lU'JsJnr: fm'll thee lnhmthmnl w
",ck;Jeu IIeIS or SQIOIIpcn:Cln, OJ' 110'" OUUlue I~ ICOpe (Jf $a.lelpal'llOlI'l lllthnriQ'. WhCl1 lItl&:ElIIon pr " dilpdtc arl.., CIO~rnh1l8 jl IrllllNllcltOd In whi<:h BolO!lPc:non WllUI
tnvOIWld. the pnnlOll hc~to .11'11111 mU1J1Dlly cooperate! with eaoh m'he:r. In dl"pIlT.c1 or Ildptioa w/Jare theR II .. cMIl'l1 to th.. cffilct Ibl'll Sah:spcNUO 'hn$ .ncloSd t1\~tionll.\ly eM'
rccklc:ulY or QlltdtJ4 the te~!:of Sll.~~" wuU"otlrlty, S.I~d Ilhllll bclll" tht:l c(tllts, expomllOf lUXIl1.htlttlea lnllludln,judjjllTlcnt. ond _~,.(I, Nill", Ironl (he diAp~e
or Urlprion. In di4tN~s QI' UtlSllItltm where lbc:re it: a. chtlm to thcI effect dI.e .!iIaJospcnt>o h/Q ftCled nea:lli:llltJy. SQJllpl!lnIQn I_haJJ shure the costa. l;l}Iipc1nse1 !lnd IlabititleA
lnil'Judln. jtJdIl:MC1l~ Md "WlTdl an, I", from lhe c11"l"110 ot Iltlp1lon. Such sharll1.\) Rhllll bel In the ""'mil pllClp~n .,. tbe diViSIon of comotl..lrm W'1I'. or would .111'1"'''' boc:Il,
from the. wbJcet traNUlcmDIl.. ~ "h.ting Clf "",,t$, CIl.pcnt;O!t, tm4 li&biUt\el ~11 tw. w\(\,\<m, pft-j\\dieo m fl'ro'\l.W"a rl.h~ or h:ll:lcmnIDcution Dolen them NIli' b~ Il ~Ju.
rlOl" of the t...<lelnnlfk:~IIIOD iiaUc bel ween the ~nle' henno, Srokar IIhl\lI ,eJect ~unacl 10 rcprcSCllt Dn')k;CT', arid Salnpe.nG1\'lJ In(.....1:I; in li(i8'llll'm wttll '~tll b"",,e bylhe
plU'tK:1I in proportion 1'8 lei lbrt.t! t1bQva pert.ltln.lng Tn '"Ill ehorin. of CO!II:a.
l4. 'I\..,.d"lllivn"
Thill ^.r1lCmcnf, llnd we. rolttdOrlllh1p l;:reated hereby, niay llof. torm1na~1lI by clt~l/!!r !:tllrt)" hcn::lO, with (lr wlthOl:lt CIOfoO.'lI.t &11)' time upon written nlHl~. Upon tarmlna.l.'ion.
tin neaotJlltinnK cornmrmclCCl by SaIClI$JiI"~n duri"g: ~ ~ of chi. AJrMtrtent IMl1 be harulled throus:h Srobrand ""Ielt lWI:h ~1I51'tlncc Iltld coopcrMj()ft bySIl1etpel'lDn ""
,. rclII,o"Dblc ut'lder thl> ";l1;\,,"IUITl~C:~ t'o:t Ihp 1;II'QLeGtion of tbe. lntaTlllll& of ~ t:'*rtic& to \l'4 re4l\'<>MaI.e \t1u'llIoat:t\l)n.I: in\lOl~. 81l1~on. Ul:'JOIlleL'Il1!natll;lll. ,hall furnish
!lm1c1M' with . bOnlllid~ l[st of aU proapocCfI, tcqds. OM pro~eble ....n.aclh:.m" c1ev.l,C\f>cd t>y Salupc;rlon all wcl1lU1 0.11 CXtlTCspMIdCnt:lCl "lid d~umenu dcIlcrlb.d in Pwrnsl'Ppb
11 ahove. whlcl:1 art: decmed 10 bel the. ~f of Bfcbt'. $alellpCf'SOn ~cr ~ !bIlJ upon ICtmlnaCiPTl, or in and<:lplttioTl thereot, holRtlCl will "'" fUrmflh to \'lIlY po-nson,
fIm1, eompllrl)' or earporalion CT1I~ In the real esUlte bt:tllincl. an)' tntnrmatlon a, TO Btolcw'$ o;;lIcnbl. CUlI'tOmul. p~, prlcea, ~ot ~1:JQt.lO\~"'('o1' Broker's poll.
cllllS at' 1'C.lc\fAal'lt\hl~ wht-. clk:nt~ Met C'Ill10men nM any nm.r hlformatlon aanceminjt Qr:okCk Ilnrll01' htlllhl5l' 1)ol,nOll". SfllN]:llll'llOn ,haJJ r1Ql. aft"T tcrmlnalian of !hIli
A,....mllDt. or in <lQnu:rnp1adan 1111rt1of. remove 1m", th6 fi1Cl1 or from tile oMc~ nf Brobl-r ;ony mDtaTial., data, publicntinn,., COn'Cllpcrndonc.., fUn or IntQrll.....1iorJ f1llll il pn:t(h
crt)' 0' 'grour. Sale...perlon ,"1Il1 be cnttlled to ccptcs of ccrtlllr'l JMh'\lm~1R pet10inmg 1Q wII".on' in wh1.ch Sale:sperllon tme II bonll f1(1e intcrol! or ponllinin& Tn enm-
Inri of $ola'pCrann,
1~. CommURttll.""" 'I'lr,."...tf~".
Upon lermln.lion. SalGlpel1lOJl '" Ihll.11:I qf ",omml~,loa un an1lranRIM11iOftll W'llllro a ..11::1Io tWntnlOl OXlshl bUI1he t1Dn8l\Cl..lon lIg fIOlc.loMd, ,h..11. dI.~r '''Ill c:ltl1in. of .uch tn"".
ll",irm, bel pll.I4 to SalCRt)WBa", h\ M;conlo w\'\b tha 'SIIIOIpcI"'on CommlukITl Schldule 1ft affClCl. 11 aae ttma of ,*""1,..110n. Thll'O &han be dcduclllCl fr(lm .uch ""4Ire, h~,
.. 1en'lclni; abqa ot S or _ lifJ diM amounl of the "lliftH 'Dndlor ,..lOll lOommtlllof\, wtalcllOVc:w is hiahar. No enmm:llrriOJl 01tx::r thlln for
Ibo.o pr(lf)ll:rllCll oC wblota IlIn .gl'MmOnt ....1'1. bccm si&QOd and I\gccprod in writil"g by fbo buyw llnd IlCllu on Nt: bef'cm:: fCrmlnllrion _611 be dcc.mcr1 eilmc.d by SeIClIPIQan.,
unlQII" Ctt'lerwl". llgl'lllxlln Wricine, Ukcwbe. nD c:ommSqIOt\. fCIlU'1Un.. from tho. HM\na fw real, 0-, thcI rantal of property ,b.,1 b\l: poid to &lICIlpcr50n L'ollowtnA tl#nnlnall~n
W\.lh tn. "l<<lCpti(ln of commiltlllona nrI'l~ from lC!uu l'uDy eGclllilld prlQr to fCITTllna1ton and to the .Xtorll chat !CII~ pa)'mcntJ Ull raccJved p-rlQl' to ~ClTmirwion. &llllllpl:l"Son
ahll1l DOt, h~cv"'r, Ibare. in th. C()rnfnIUIOn" pnYlibr~ In the tutu!" II.nd bll.llecl upon u... leftN Ol'rtOOI or re/l": JllQ'met1U1 ml!: f.t dUG 4lnd pI,.-"'lc,
16. ~"Prou4h....
Upon Mftn'irilltioft by eithe-r 1'.rKy.. SillPlIpcren sholl Immadlatcly: . . ,:
.) 15l.lbmll Q IcllCZ" f.'f IfJnnlnRlIOn ~tll . QQmple~ -.xoundnJ: of cnmmi..itml, liilclnp and buYlr dlcms;
b) Nlum.U It\ppli.', oli.:TIt!culJtOTJ1er ptQllpecr J;llItlI, key. .nd dalNn:wntt C01\sldMed property I)f 111n~ pt.t~'nnr 10 th. j!IOvlelartl ur this AIln:emen1'
0) ,..,..t w1t11 1:Iro~ rar purpo$CI af alta'mplil),' tD mU1U*.l1y ql'aC upon e tll1l1l, ~nlln8 tit; ~orn,"iNton. due aDd plI)':'lblc; ,
. oJ) coopentoll In Ihe norlftclllQ<ft of 11Ie RPJ &totQ Comnd<o:!ltoa r<:<lI'"ntmB Ul. tumlnlluOR af 1he nslUlonshfp of S'JQ"k1lT arid $Iftleel'po::ITIon,
17. A.~_#OJ'DilP'I'''=I.
Ois~me:nlll Qr dilpllat:1 betwe.n S.hQlNftoo 11....t.llP01rcI', QI" bel-WCcn Sele,p.r1Itm Rnd I. Rl\l e&tdo llccm.. alllOQjahld wi11i or eQIItr8ck:t;f to Broket, .nd whieh anae nut
of, ot In cot'IncellOl1 wilh, 1fto 'fOIl DhIto bwoi""s, .-.d wblch canmlt b" &djt,lslld by /IrK! bllrWecIt thill ponlt::l In\>glnd., "all bo lIobmJCtcd fot fibltralion In O<::Q0l"41'lftcc w~th
Nllola' XIV of. the Coda of !athie, nt the Nlltlonal ~'tion bf REALTORS.. By lhlt Airecment Dhl N'bih"allon liMO be :rnl'nd8t:W)' Md Broku.1'\d SaI~ptIltsOn "DtIe
lCl pmv141! II WfltUm ....-mcnt to Ibe l()OaI...-':-tlQl'l of REALTORS-:&8 may be JWqu~ by ...;4 uioclation.." cono:tirloa pra;:edent 1~ arbitTlJtio1:l. .l3roker and SIIICllp8tlan
ag:.......IO' be bound h)' t!tl: decision of tllfl arblU1lbQtl .,flnel of Ibc locala--.latton OK" lhe! Pt-nn.,.lvani. ARoo!1UI01\ 0( REALTORs- which hll' enccnamcd '1\e. d"'P\ltf or dl..
.aucemcnt: "Ibe. I;!(lndulrt of tho .rbitmtion Ihlll1l;1a .~ ~f!:be Cc>rI, of 1E'''Ir;~ tQU/ ArbillTll/o" Mmn4Dl molt ~')' pu.blilll\<::d. by 1hQ; NQtjnool A.."ooI6rlr>n of REA.L.-
TORoS. ~rtQf' loArbJU'a.tton, es amended b)' tho! 'oe.'\I aqoci.lltion hoarine ~ dbF\flO.
J 8. AIII"#dIJu,,",
nil. A~t IDa)' ba Ilmll(ldod (lDIy.by the 'Plnle" ~o. m Wril:intt,
l)t.~JII"/..mM.
'Ilti. A~1 'ball bit &,CJYCftl...d by .nd Inlerpreted ptlrauilDllo thI;llaWII ul tbc C'olNTloflwalhh Qf PennsylvAnia.
20. 5.".-._1". Zn",,.n.
ThilAarccrt:l.e!lt ,h&lli.,ortl to Ute bandit and be binc:r1ns Qpon 1he 'UO<>IlIW~ jilin',,""' ofSJ'bJcu. nl. A,L"UmCltlt. how~. i, baM.ct on the pen,"",l acrvlc,"ot ~~OL\
and S.'e;o:peI"lIQn ~lIl1Oe do~ or D"d~a lIay of Salc.spenooa'. rights lit' dut~ ~n~ \triUl0Qt; ~ prio.- writl~.~lIImt of Brok.r.
21. hliq M_".L
AI1)' otrlc_ policy or mlH and p-or:lt:durea maltual I\DW clCbdlllJ OT blSRlal'le:t IIdopred, ~ an1.<!~e~ '.hln btl- bln'd1n& on.!he p1lt1ies..
22. 'Brulrw "P.....,,1.
ThIIl.I"\aMcn_tU panttUvtCll ~ho cntil"C:='.~1 ~ eM lJrotc-r and Sat_~J'l:,_~.d,-d.~ I~ no qroa:rDcml1 or IJRdllt$bllndtns- nPl ~sad hcreJn.
IN W~S$ WHBREO.P. mi. A~cm hI. ~ exccuc.d on the d.r. nnu aboV'tl written.
~~O&;~~
~
"
Sallspor1lml
. &10 _11....._ dellcril1in. S.Ic:S~on'.s f1nllncl~1 obI'tpUanil ~flb,...pec:t 10 gf"ficl; ",ppHel. tcloph(ln.e, cle.. llnd a S,1'npatson Corrtmllllllnn
DTOIa:r lIhould c;MU'I'C Iba'..-nncu o".QC;l ..... """'" r--
ScMdula""'pt:'OvidCKIt<t~Oft. ,
IJl P.............. _'an 01
REALTORS-
...-...--..........-
CO'PVItIOtrr pttHNAYLVAN1A J\_OCIJ\'nON 05' R5-A"'~ 'I'M
001'tUI WHl'f6-JlJtOK1JR. ytll..I...DW~R"'L_P8Jl,Ii~
.
Exhibit "D"
.
.
t:: t:: t:: t:: t:: t::
:> 8 5 8 8 :>
1 8 () 8 ; * ~ ~ i
~ I ~ ~ ~ ~ & !.~ IJ
i i "t> i en $
l to
.<: cl5 .<: cl5 c: .E .E .E c:
en en en :2 :l2 I :l2 :i2
.... :S .... .... .... :S c: c: c: ~
::E ::E :::; ::E ~ e e
.... ~ ~ ~ '" '" u. u. u.
~ ~ ~ !:5 !& '" - '" '"
~ .... 18 !& ~ ~
'" '" '" '"
t:: 1::1:: 1:: 1::
~ :> ~ :> "
<38<388.~~'" ~
(D lO,m co
~~~~~e:>5-:>
a1~1da1-g()~enCll
.<: ';;'<:.<: 111 ,_..6.E
CIl enCllenj::l2:l2:l2
:s:s:s~:U!~~ ~
'" _ ~ '" '" W u.,u. u.
1818 l8f::!:g(!Sl:'jg
(l') M ,(I') ('l') T"" tn,1t) an
.
.
Exhibit "E"
.
.
.
,t6 05 11101a
Jaok Gau;h~n Era ChaMb~ 7172670015
p...
CHANCE TO LlS'fING CONTRACT
,rROPERl'){ W~~ '(\ .~\.g i. V"\
. B~OKKJl(~'ePl'"Y) . - '''Gl~OQ~-('.. "'-i*J?A.__,...".
'~'F.I,Llm _./);-, ~ ,~.. __.
. (}A"rt: OJ!' LISTING CONTRACT . '0 o.~ A~ I'd', ~$
. Broker nnd Sellcr uS"'" In change the tenn. ur lhe uhove ,"",tin:; C<mtmct .. follow.:
: 1, &ding Dnle or Ihe Li.ling COnll'llCl i, cl1.,nC<l(lIO: J'\J(\ Q _ .9.1 sd:. ~
'2. U,lI;~ Price Is chunged ~l::I> _
~ 3, ApJ1i1in' Tlesign.u:d ^gcnt(.):___ .
II Seller ren(luncu~ rl\(,~ ilgcncy rel:ltiuu~hi[lS held With I\Uliccol\oCII nO'lJiilh:d Wllh Broker who nre not DCilllr.uiltl~t1 Agents f01' Seller.
,:: 4. Rc(tlove Dc~iAnoltcd Agcnl(.\i): .. . __ . .
6ldS'
'C)" 0.. clJ2J..U.'.
CLC
.. LISTED PRICE S.Jts, c((Sb-
1;'
,.
"
I~
l"
1~
;,: All ",hor lon~I'::~;';;fl~)l:~CII""llJin nl1changc.cl .nd in full furce und "rrccl '.
>JS.;LLER,~-?i7 n. ,~.. ' "" .DAn;.~~._
.... SRT,'4J.:R . _w._ . _ DATRl'~ ._
~, SEJ.U';R_...,.. ._..,...__.._.... .. '_"'__ DATF.. ,,_
~;, 8ROKF.R(c..mpl~1\ "lTIe) ~.:J~,b.66v1A~I\.-' _
I',. ACCEM:ED BY _# ~ '~-p "'__ DA.l'1<;.. /"~?I? ..., r
m hRnaylvoala.oc ,., .. (,'OII\'RlGII'rrIOO\lS\'t.VAN(^,y.,.~)(~'^'nONOil'Rl~i\1.TO~ 19')(1
Rt:ALlORg' OIIlt
...",'i,jI'''''.......f...............~
.
.
...
CHANGE TO LISTING CONTRACT 61 \, 9. .
'PR01'F..R'fy...La-\.~'\(\_. ~-\.QiY\ 'D~o..~
l IlROKER. (CGmPl'"yL ,_ =G.~t-.'lA
, SELLRR._ S}...!'s:. S. ~
: J)ATEOl<'Lll:o'TJNOCONTRAcr'.:'ili:t\On"tr_~\}.~ ~ L1s'nWI,'RlCF..L~~ qM
,
CLC
Broker .nd Sollcr lIgrcc to ch.tl~" lhe ler",s of tIl~ Ilh<w. I Jstin~ C""\1'".c~ us fnllowR:
: I. I::lIdilll\ rl:t,. of th. U"ing Conlrocr i. c1wn.,,,d TO: J:~, ~\ Ed:. ~
. 2, I.istcd Ptic'C j. cl1(\ll!,'Od l<>: $ _ . .." -
'3. i\pl'<\int D<:.ian"lc~ Ag""~s):.. . , . - .-.. .-
1 ScUer roIWIl~lJ:S: Uu: u,!-.'Cncy relatitml'hipJi held wlUt ul1 JiccnlWCJI Q!tUil1tcd w\\h Bmkor who nrc not l)c:dgllUltXI At~nc." fot'ScHer.
4. Removo Th:.ig..",.t AAonl(,): _' .. ---. .
An other tt.ll'lU~ t1?j,..~Jjj.Jili~'ri1f)r the, U~tin!:;Contr"d rcmuin UllclUtRe,~1 :lnd iu full' fnrcc nnd ciTcct.
~1~'/tf;Jf_..~ . .
~~;LLER. ~4..)~~ca.t;I.I::'/:;'&_;: ...._'._ '. .,. DJ\.TEkj.-sld"f<f'
SF.[,L&K_.__ ..__ .._' .._" _ J)A1'E_...
SELI.F.R.._ ,_' . .,_~. _ ()ATI~ -. ..
IS/WK/<;R (COmPII*UII10)
AC<:I<;PTKl> BY _". ,M; .
m~''''''a
U3 REAl..TORS"
M_~ ""'.....~""__...,,~
6. ::..j....:-:JAc!:;.. C;::i1- v .:y A <'- A-'
~ .A;;:';&!. ~". , :':. . 'OA:n: I.,-",:Z,O. .,) "
.; C:<""'RIG1lTl'KNrIIS\'f,V.\s'^ASSOCIA'nor; O'f' k.:Al:l\lKh'* W'''-
,101
J .d
.
.
/~
/h"n 30 05 11.03a
/.
Jao~ Gau~h~n Era Chambe 7172670015
p.13
OlhN(,E TO LlS'flNG CONTRACT
l'ROPF.R1i' -L
. BR.OKER [Complmy)
, llRI.U:R~ fr:
. 1>A'1"E 01l1.lSTlNG CONTRACT
6l4l
CI,C
~
~
-. LISTED l'IUC~: $ ~\ q,OO
" Krok.cr und S"Jlcr ugroe 10 chunZIJ the tcrn18 of th~ u.buvo I,isting Controct tt.Q, rOHuvm:
: 1. HoYing D.~ ur lho r ,i.tiog ControUI i. chnnlloa 10: ~, 8-\ &h. d~
. 2. Lilled PriC\l j. chunned to: $..
,,~. AJlPni"I J)c,igmlled Agcnt(~):_ ' _
i1 ScHcr renounc-es the D.gCl1ey tl.'.lutiOI\8hipM ru.:ld wttb ;.dllicen~l;'~s u.ITIlialcu wilh Urokcr whc OIl'\: nut nc~ip;ntUcd ^r.CJltli f(X' ~eUet.
,II 4. ReUluve J)c.ignnlcdAgulIl(X): '_
"
"
'5
rr.
"
"
1a All oLhCl' 1lmn~ UI cott i~i ur 1.hC. T .i~ti~p:ontHIC\ rcumin uncllnn~cd nnd in full force :md etTcct.
~, '14 ,'rtIQI. I~ ' 0'
" SF:r,LER-",~ ' Cdtlf/f.(~_. ' ,," , ' . UATE_~ /....LJ/'" if
" SF.I,I,t:R _' .._ _ DATE ~~_.
... SELI.ER __ ._'" ___..:... DATE_
;: BROKl!.R(Cumpa~::~CLi.'<-1Ae..^,,1 -.
.~ hCCF:P'TtD BY ." ,~.." _ __---'- DATE....6.~el) ..,~
Cl P.....8Y\YlIIl1. f ' C"''''KIC''~'''.NNlIVLV^"IAAli!lOCIN''W"\;;l\t'.^,;I"\}lIl''' 1m
RCAlJOOO' '
. ,,...-..-.................,....... .
.
.
'30 05 11.04..
J..ok Gau;hen Era Chambe 7172670015
p~16
~'i:lANGF. TO LISTING CONTRACT 3~L{1
I'HOI,.<:K1'V ..L.tt\,'S,_ _...in. . tnoU~~9 " \',
8ROKI<:R Ie mp "y) CX-. . C?" .~~.. . A
SF.T,LER .l,' .
11"""".01' LlsTIN(; CONTR.ACT . l\"'->Il" ~. _~._9fl:>S.:
CI.C
<:.~ \ _\ .
\ )\'\. !&'<,:y2J..I..L~
Ij~'I'EO PRICE $ ,y..''I. 1 (':0 .-
,
'. Kmkcl" :1t\d ScUer .u~n."C \u chl\n~ ,he lcrmK of llle llbovc Lititiul;: Cf\nll'ilct ;1~ rnllllWIi:
'1 I. flnding \).,0 1l~IJ10 1.i'linp Cnnlmcl " ehwlpc<l In; <..~\..~~.~ &l:. dCQS
~ 2. Listl:d I"rj~ ilrl ch:mgc.."tl to: .~ _ , _~
\'}:\. ApJX.lint lk'K;gm"ed Agt:nUs):
lj Sclh:r l'CIUlllI1Clt~ the "gcncy I\:lntilllUihipH hel<<1 wil.h allljc!JIINl.~~ t1l1'ili.d~ with Broker wtUI ~II"! not nc~ignul.t.'t.I ^~cnts rOI'ScJlcr.
~:- 4. ltcmnvc t)cKjantltcd ^gc-n\tst ' ...-
'a
"
I'.
l~
17
"
1') ^lIluhcl' It:rm~ 'U1J9 P~l~i(f' or ~ !/i~l~'!li; ,Clnlntct romuin I.mch.lU~cu und [11 full ror<.~c and \.:rr~l:l.
~ ~J!:/f. /-, r:"T'IWT...,. " i ,/..
:r SIU,U;R_..,~.~ .':.0. (ll'<. ~.. OA'I'IL~/"</"'/'f1~
.. SEU:RR ' DATI~ I
~ SELLER DATE
N
" BROKI>R (compa_umc) ~~::('~J;.0v o/A ~.- 6>
'" ACCH1"fK\) IW' ... ~;-;?< _ ~ DATI<: - eo .. 0 -:-
Ii P.....ytva.ia ..- --~ . (''Ol'YHr(;IITI'v.~NHY1.V^N,^~OCIATiON'OJlR,,^U~~SWI''''
REALTORS'" ....1
"...",fN_~"'''-''-
.
.
!
J..ok G..u;hen Er.. Chambe 7172670015
p.19
i 30 05 11.04..
CllANHETO LISTING CONTRACT ~ "l8--q
1 PROPF,RTY Ltt. .'\ (\ 'fn,,: \r\~~ \V\ f')"a.~
BR01Q;R(~Pl'n)') "(; .lL'l,,~,.;=~
SF.LL.KR~~..& 'Jill-. ~
DAm o~' LISTING CONTRACT _.9..\1,,1'<1':1' Q~
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G' Urukcr om! ~~ll~r ugrcc to chal1~c rhe tarms of Ih~ above. Li.~Hllg o.mtnlc\ Wi fol1owK:
: I. """illig 0.1\0 nftl10 LiNling Contruc! i,ch.nl\Oldlo: J\J<\. Q.,_.al~~- ~
"2. LL'u.cd rriCl.) is chanp.cd to: $ ___ . ,,_ ' ~
IIJ 3. ^t>J.'IOint DCKignlll(H.l Agcnr(r4):_ ~ .
11 ~"II,.,. ",.uune"" U\e ugCl\cy TO""'Onsbip' hold wilb alllicc.,,,,,,, .rfilillt\ld with Ilrol",r who Dre nOI VcoigllJllcd Ar,en\l; r", Seller.
1~ 4. Remove nC.~l!;lli.lLcd ^~ellt(s);
.":' LISTED PlUCK $.J:!:3.,SOli
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it! All ulh~r tctJn~ u?J En1JSlit!9' . of ch~ .t..ih~i mlmet romnitl unt'nunr-ed nnd 10 lull J'un;c un() cfrt:c;t,
~ll NW.'''q ttA.' . '
" SEU.F.k.. " .' : i .~J '7iI.~ -/:"<) . _ - .._ lJATt: ..-: !,<JAl!c ~.'
." SELLRR ..___ I)A'fE ~...
., SET.\.F.R" --" ..____. . __ -_ DATE ~~. .
.~ liRO. KER (COmPlJ~1 umc)
. ^CCll.l~n;O RY __..
m _.~..... oc
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Co""<'GH'r 11K.""Nm'I.\'^,NI^,~ot."^'"ON (Nt Rflt.l:n)RH'O 1m,.
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;j 30 05 H.05a
Jaok Gauchen Era Chamb~ 7172670015
p.l~2
, PROPERTY -LeA:
~ BROKER (<;P", ny)
I S~LLER~ .. .
. OAT" OF LL'l'I'ING CONTRACT
,
,
CLC
. LISTED PRICE Lm:, 90<')
Broker <Iud Seller ogre. I. CUltn~e th~ tern,. 01' \IIc ol1"vc Li'ling Conlmct as JOllows:
'1. ElldjllgD'""QrlhcLi'lin~COI:I"'Cli'"h~goilfO:J'~_, 9-\~ ~<:;
. 2, Li,\Cd rdc~ " clu,nged I": :10
II 3. A[lpoinIDc,jg\l.tedA~""\N:_..__
11 ScHer l:\."l1(lunc..'\)j!, ~ l~nc)' re'ntionsJdlJN hcltl with llll lic~~r1.'lees a.11iJiated with Broker who :Ire not Dc!'ignatcd AJ!,cntli fur Seller.
'~4. Remove (l.sl~mll.<l Age,,'('):
l'
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..
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"
I,
I~. AH ndwl' lenus L\ ~onu'uct rolllain ullchungcd and ;n rull fllfOC ami c;.ffecc.
:: SF,lUR..._ __._.... ... DATK~!~;h~
.... S~:lA~'F.,R ~._____", ~ _ DATE1~
" SELLI~R_... ...._.DATR..
: BRO~I'R(<.:ompan~~mc) .6 __......--0..~k..rri'+v1Al::.~___, .
. ACCEP'I'K\)BY ..,<(,,~/'F I>An:_&.-?1? ..\.::;-:-:
m. P...nllJl.....l.. 'm"""1lI1"""""""'LVAlJ'MlllIO"'T10N O' .''''''''.';00 ,...
REALTORS" ' ,."
WAL ...........""_(__..~
. .
,~ 05 11.06a
1
(''HANGE TO LISTING CONTRACT
J.>ROPERtY J55 . \ n \').~ Cfi:os~-
BROKgR (Ql~Il4\PY)-fI.' . . --=-___u,.. e.tA
SI':J.l.I':R.._..C;t'<-1r -\! ..
.. UAn:m'USTlNGCONTRAC1' l
Jaok G"u;hen Era Ch"mb~ 7172670015
p.25
CLC
USTEDl'UK:ES- ~q:..\q6i5
Ii Rrnkl.l'1' Md S4llkr l\i!.t\.~ t\\ chnl"'~~ 1hc fCrlllfi of lht: nho\'c r .isllng Cnnl.ruclll!\ \'t111nwfi:
.. I. Ein<lin~ Dill< or Ihe Li.lillll Cuntmcl i. uhunpc<l Il,j\.XlJl-. d-t$1 :).c.C6 .
,\ 2. (,hued Pril,:C hll.:hlll1~ccl to: .$
l!l 3. ^pl'~)in~ lJ~~i).\n..\\ud ^~tml(x): ,,,_ ..... .
il SCnl~r rcnoul1c~ the ugene)' ruluUon:;hl~ held wjlh 1111 Jjc(,mxt!t~~ LIIT'iJinl,,,,1 with lil'1.\k~ Whd un: nm OCNiflnm~(1 ^gl:nt~ fnr S~llcr.
1:' 4. RClnllvC n~~!4i11nakll ^t:l~"t(S):
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Cnntrolct remain unchu.ngcd und in fuJl fotc!,.! lInd effect.
~ DATE '/t~!.?LJ f N:;-
DATE t' ,
DATE
>2
C~
..
DATE G: '....'?:.o...Q...~
~~)I.YKI(;U'l' ''I'NNSYI.VANl^, ^tl8OC'IA'ttu~ ,)It lUO:^I.TOKHflI9f6
Mil
~. BROKF.R (ClIrnpan
~. ACCEPTED BY
fD P_-)I"".
~ ~~~~~~a.
.
.
.n 05 11.06..
Jaok G..u;h~n Era Ch..mb~ 7172670015
p.28
CHANGE 'TO LISTING CONTRACT
1 PROPEkrY ....3&111 . -S(;.,~"S~~, ::-;t:, 3'Z." 3' ~ 9-.; Ill! ~MJ. d -, (.rlc'd<:.>
2 BROKER (CC/mpany) I 16.t2~ - '~d;.. G'A vo7 {. "^,,
. SRLLER .~j!). rfOM-,_'-' Iwe
. DATE O'FLlSTING CONTRACl' /0 -( . 0 '/ USTEDPRlCE $~ 'i~(', ~,\
I
o
.7
Cl.C
tAye/rCVl (\1." fA
Broker and Seller 3gR:C to chunge tile lcmlS of the above tisting ConlCacllL. fallow.:
,~ .....J.. "'CO (-
. I. andillJ! Date of the Listing C'..onlt1lCl iHhun,cd 10: ,,_:> vi N t:.- .~ ..., (... ..:>
9 2. Li,llld I'rice is changed 10' $
,.~, Appolnl DcslgnltlCd Atlcnl(s),_
" Roller n:nounces the lIgCllC)' l\:lnuonship" held with alllieen'<:<l8llffiliatcd willl Btoker wbo Dill not Dcoir,nlllcd Allen,. for Seller.
12 4. ~emoVl1 De,rignate<! Agont(s),
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..
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10
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, Listing C'.onlt1lCl ....moin unch"ngcd W\d in full fnree und etTect.
DATE:"'~/O>'
_ DATE__
'_ DATE__
SELLER
SELLER
SK1.l.ER
BROKER. (Company )'IIIme) .j.. ." i i
ACCEl"ruD BY ;;;:::,/" t ~ I
-.rt .
IB P.....l~a' .,;; if
REAlTUlW .
.. .............IIMI"'_......
'\ X"' 'j!
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':r-;' . , .r
"'_ DATE .: . i - "..,,-_
. COl'Y'Rnnrr PKNNliYr...vANI^ AK\'OCIA"nON 0' KtiALTORS' 1m
$Ill,
.
.
Afa' 05
11.07..
Jaok
G"u;h"n Er..
Ch..mbe 7172670015
p.31
CHANGE TO USl'JNG CON'tRACT
,
PROI'I,RTY I" '\~..L.-.._~~:.,..<
IJROI(F.R (ComppnYL_~ ....! ' ..... ,', .
" ol"T r I'K " .... .'
..i""~J' ~~,ii~, _L:...:...--...
, DN.l'Jj; 011 f;JSTING <':ONTRACI' .!.~'__; '......::--......;
. .. ,. .; ~ c;.. "" .
\ ....&' t.',. J<. .
."",'\ .
.-, ".\-..
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.5 G $".5', ."5 G. ir~i 3' G Ctr:?;' _! G (j, cr
, ~. LISTF.Dl'RIC~;$...(~..j. ;.~
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'.
Broker :md SCUIoJT IIWCC to ctmn~c 11\1,\ h:flllli uf lhc :Jbovc Li!ti.lil1'~ r.onJI1I(;( tl~ fOJIOWH: \
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Endinr.l)i1IlJ ur Ute. U,.,tinl~ CUtlU't&Ct j~ r.h:mxcd w:...; .'~\. ,\.L._~. i ~~ .~ .:,. r~::-
l.hil~~1 rrice l~ ch:t.nS!.~d to: $ . . . ',-
Appaillll),,,i~,,,,\oU I\f~onH.):__. ....__....
Sell.:!' tl.:'nUlm~ ll~ ;1P,MCY rehl:tiQlllihjp~ held Wilh aU Jicc:ml'ioo.~ :\ftiti;'ltc.~d with UrokCT woo ,L~. not DcKip.nnted Agcnls fur SclJer.
Re",nvc Il""i~nn\"~ AB''''I(~): _,
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: AU oU,ICr lCrm~~ti~~sw Cantrnc.' remuin unc1J:mr,.ed aud LI1 rutI ftlfCC; and errl.':Cl. I J
" SI!:LLER 'r~~~~ul"),,-.J_F'J, I. ::l.< __. DATEh~'~-
.. SI!:I.l.ER~~' . f)ATE ( ,
!:l SEU.F:'R.. I>A'rn_...
"
" BROKER (Ct>mpa
'li ACCEI'TF..D II'Y j
IJl [~~~~~
,. ~, :-.-..J;
/1c f. (;!~.t"7.l,..,/V'
. JJ. DATE ..lL:..!:,c. .. c: -.,'
c;()rYR1CU'T PKNN-"Y1:VANI^AS'$0ClA'I10N mr WL'I'O~ 1996
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~t1 30 05 1111 Oa
Jaok Geu;hen Era Chambe 7172670015
p.46
CHANGE TO LTS11NG CONTRACT CI,(;
PROPERTY_S.:liL..~,ff9-0'L\i_~-'<;Si1\ fft, 0('
BROKRR (CompoD);:), () .L '-'(:'~9J" Q ^ II
,'S~;"',F;R B<.\. Pr . ... . CX\".~ .. . r<.c...~..,. _'" .. _ .. '_
DATlW~' J,TS'fING CONTRACT (' \ AI: c .. I l;)6(;<:; .._ LL'lTKD I'RICE $ ,:~5+(LOC\
" R."kl.!1' ,uld Sl.~llm' ;1J..t"~I~ III r..-h:Ill!~lllhc lmmNl,r Ihl.~ .lhtWlJ I.JNling C'll\Ir.11.;1 01)0 f(t'lnw~:
,I. f.ndi"~I';'tcoflhciJ't;I1l\Contr"cti'c1""~tlll"': .ko ~lSh, ~
2. Li"lc~ P";cc j. ~1'"1~C(1 w: $ . ........__...... ....____ .... __......
n~. A!'J'lOinl lA:o!rliznnl~l ^l\Cn'(~):_..._._... ,
" :SeJle-I'l'I;~natlncc!s: rile ~':llCY I'\::I;tlj('III.'lhip..... hcJd whll ull H,..'~n"'r::'C:~ ill'iiJialtu with Broker Wh(.1 ure "ul nC!olj~mlll.~d Al~~!Ot.'l rur ,<il3llQr.
I.' 4. f{l;IllIlVC 1)C~ign;;"l.:d A.ttl~ltt(X): . ._. ..... ._ _. _. _... ,
!.;
,.
..
...
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17
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t'l All other tctrns wi~.~;.\I1(H.ljol1J( uf the Li inp COOlnlct fCmain unchanged und in t\111 fnl'CC' and urreC'1.
." . 4~ #<--r:II..lJ;. .. .~
'" SEU,F;R..:. .r.:t..."t-:).7.:J4;(.'/, , ./ . '" DATE.,,6, ..<C/.-''':__.
'" SELLER . . DATE ~
::;l S~;I,LER ....__ DATE
~ :~~~J~~:r~~.!d/.1.,....r DA~~~
Ii Pe.....ytVaoR . COP\'NU,:n r 1'I~NNti\'I,V^NI^ 1\1'2KICL\TIUN O"'IU".,u:ru~ 11IYft
REALTORS" '. '1111
."'t\ 'h'l/olllOO"_~~~ .
,.
. .
../'
,,jf'j' 30 05 11.10a
Jaok Gau;hen Era Chambe 7172670015
p.48
CHANGE TO LISTING CONTRACT
PROPERTY S?-{J. f~(\'L\~ ~(~~ .
RROK,KR (C(~mPIIRJ')--,.1tr @'G/., CiA {>,-
SELLER..._.~..I.t-.... Cl"f\t!S-AN'" '=:-'- ~
I)A'f~ 01<' USTING CONTRACT. I \' \ \ ~1' h.. '. ;.J:<Y>S..
'. J3mkcr untl Seller ugrcc Iv dll.lup.c Ute ll.::t'LIllS of the ~Ibuy\; Li1'lhl~ (;onlr,lct :Ill ful1uw,lo'i
,t I. EI1(Jin~ J)~(C ur tht.: ll~iu~ C.llnh'\~l t~ dmn~\)iJ I(~.~ .a...\~.1 ~..
I, 2. Lililoo I'rioo is chunp.ud lU~ $. '.. .'__
'\. 3, Appoint o.:SiP.MICd ^r.cn~.): .....
'1 Seller rcnlKtncc.'C. thl:u~l:.J\cy rch\lion\J)ip~ hl.~lu with ull nl,..',mlolC('~ i11'(jJi;lh~d with Broker w1"l0 ~rc nul Oc.-ii~n;lt~u A~I.~l1Ill forSl)llcr.
':. 4. Rl.l'l11nw Da.!l.ie,nut.:<1 ^r~~I1t{s): ._._..... R,.' _'___ ___
CLC
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Ul>'TED I;KI.CF; $ &-31 '7 Otl
.,
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II:
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., All Il\hcr ICr~u;m~lly:.n' III Lho LiAling c;l(ITU'lIC1 rcfl'1l\;n unchlU'~"1 and in full 1"''''0 ""d olTOOl.
'" . .> 'f J-If'! -11"'<:( I)..L',;: (. /
~ ~~t~:~:~'."..~,~!::::7t{~~.~:~~L:-.- " ~~~f:j~1~ ~~
1>3 IiKI,I.KR. .._.._.:.... ....... . ...... .. ........ VA1'F.
: BROKER (C~"'2' ~...n . - :&:;-S4c!;;ft'~~~r/ " .... .
:aACC&I"I'KlHW ~ _ DA'fli:.,,~-?:p,-ar-
Ii PennQlYa --" of . ." C:UI'YKIUH1'Pfo:tni.'1\'(,'\I^N,^~0ClA.TlOft\OrRtv.I:r01Ui'll1996
REALTORS'" ""EAI ....\olloii.................___
.
.
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~30 05 11.11 a
Jack
Glluchen ENl
Chambe
7172670015
Vl5
.)
p.52
t:;j,.o.I,-tJ1:0'-..>~ I
CLeO
CHANGE TO LISTING CONTRACT
PROl'KKf'lt' \ I"f\~ .. il . <" \0.(\.11 \ ~\- &Ua.h b .
BROKI~R(C~~"y)"';;>)Ql)y:\.....~'t..:Q;.,.,LdA"L. -c .\-'='..
It SI~I.I.~:K ~~..A-~.~~'QC1.
., DATI!: OF LlSTlNG CON'l'M~L..\5_+h... ...a0'l4
...._ LISTlWPRICF.$ liL\ <If,h-
'" lirok~r m\u S~I}cr ilp,rC~! ll.} ChMAC rh~ ft..:rml'll,lf Ihl~ ilbo"~ Usting C~lnlm<:t:lli fnlluwS':\
. 1. Emlill~ Datu 01 the Lhti,,~ COlli,."", i" "hml~<:<I (0: tJ,;X)..~l ,s.}. (1)1.:.'4$
to. 2. Lil<iH:d 1>>ricc il" dlilnpl,Xl to: $ . ._~. . .', '_"_'
!Q:,. Appoint T>c."IigllllICtJ ^gcnl(sk___. ____
i\ Sclh:r NII()\IUClJ~ lhe ,lAlJl1l;Y rClillifJm~Jlipl'l hl.'fl..f whh i.dllll.:clI~uI:S tltnlio.tcc1 wilh 1\t'Ok~r whn \\fl: nul tX~lnnah.'ti ^scoUll'ur Scll~r,
.. ,1, R~lIluy~ L'lC,i~lliue" ^<:ellt('):
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: All il~cr lCnlll~ 1~1 C~P1~ iJ.~~r ~1C~I~~~ (:(.mlrUl.:l rcnluin \mchun~etJ und i~ l'ul1l'urce ami Orf~cl
l'1 ~t,I,~R.. :. / )i..&...~'.. ..._..____ DATF..#-"J.e./6,,>"
" ~.. L""R _ DATI!: ...
"" SELLER . . , DATE
:: BROKER (Com;;t;~"m.) -~~ 61"911 ~ HAT' L,
.. ACCRPTlW IIY . ...-.1'.:-,.. ':JL-- __ r.. c..~:J.D 1'''''',
Ia Pe4M1tY- (;UI'\'I(IC~T Pp,/liM4YI.VANIA Af'tl<<lClNl1ON 011' RI.;AUI'01WIt 19'11\
REALTORS" . ...,
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.
.
Jun-ao 05 11.12a
--'
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Jaok Gau,hen Er.. Chambe 7172670015
'p.55
, PROI'KRTY \ m
,~ BROKF.R. (CompAny)
) SELLER. ~O,*.. ,
. DATF. O~' LlS'rn'lG CONTRACT
CHANGE'rO USTlN<Y CONTRACT S d.o
f~'L~_ln ~\.)aN.
.~I\C\... .fJ..A.. _. .
'N2....
..' _.l,s+\\. '~-q
CLC
~
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LlSl'ED PRICE '$ ~1L
,
oJ RrokQr' \md Scll\W 1I)."PfCC to ChiUIGC the fe"n.w; of (he. Il1;ll..WU U~tln~ Contract Ul( follows:
. ~ I. Endilll\ D.,< nf Ih. Li.!in~ Conu....:l i<' oI"'"Sed to: .' \)/\ l1. ~l slr;~
, 2. J.i.,u~ PritlC i. <lIunp..ll.: $ _ ,
.. 3. A~l'<'in' 1N,lgn.rodA8on1(,):... __.._....
II ScHer RnoUll~" 'dlC attcncy relnti()!l."I.hip," held widl "U liccn~~cll;:Jffilj:lrl'!() with Brak~'r whlJ l\f~ 110t l'>c8ignat<<! Agenl/( (c."l( Sclh:.r,
t:- 4, RC.lThlV!,; Dc."il~t1t1h..'tJ ^2.cnl(.,,): _ .
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"
.
AU other l\'~r"l:-O~u.n CUI i~J~p; l,r thtl 'NU t:oulrnct r~(n01jll unch:U1S!.w tmu tl1 rllll (,wee nnd affect,
7T-~'''''''''''"\ .'
SF.I,(,t:R_.'. ~.2:2:U.'/'" 'Jl;:-" ... . . >>A'l'E.f/."}r..6~_
SRLLER......::..::....- __ ___ _' "UATF.__ _.._...
Sl:!:LLI~R._ __ __ ..__....:...---_ .. "._ DATE_,...__
BRO"'\C"~' UA-0~ G~v<f.f",v __
ACCltPTED BY. ~... . .. __ .. .. _ DATE -6..:::.2..c. >',"',-
lR p...,,,,.. . (:f""V1tII~m'I'KNNHYT.V^NI^.ulNO(~~C'l()N O'RE.-\1.1.(jN~.......
R~ALTOm;>> .
1..............."'''''-''-
.
.
..30 05 11112a
Jaok Gau;h~n Era Chamb~ 7172670015
p.58
.....-.,.- -.---"
CHANGE 'to USTING CONTRAC1' .s o'i
: ~~~~~W~~m;a$-~~(\~~~'\t~.~ &tu~-
~ S1i:LLER ~.c.: ~ \.l.()(\\.Q,s.~
DA'I'U OF r,rSTlNG CONTRACf -L~ \. '5 +k. ace'--l
CLC
On.
.
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\I Bmkt:1' und ~t!ller <<grce lu ~hlln2'" 'h~ tenns or the otxwe l..btine. Con\nlut u,'i fuUOWR:
: I. Emling llote uirlw U'liog CODlrUCt j. changed ,n: ..~l ~ . ~
, 2. Li.ted!'rice i. changed." $ '_
.. >, Arpninl Dc.,i~lIo.l<:d Agcl\l(s),_
II ~l1\l;r rcnoun(:c:t the nJWucy rolatoom,hip.' l1\,;h.\ with .,11 liccMee~ nrtilitl.wd wh.b Rrokcr who lire nol Oesignu.tCct ~enb for Sener.
\" 4. Remove Dc.ignL<<ud A.gcnt(.); ..
USTED PR1CE L~OO
..
"
"(:
, All ,'Iller tcnn. :E~( ~h'l,.! .... (;gotl'tlOl rcrnuin uncbung.ed .0<1 ill 111I1 lorce nod elf.cr.
SIf.LU:R~_ ~ ".:'" DATE JI=~Ld.>
'S.I!:J.U:R---"-:"__ _ .._..___'. DAn;
S.I!:LLb:R_.. ._"'_'.' .___ DATR::=:"~-=
.~~ GfWc;AvV DATE_C.:"~':o"-'T-:
c,:(.\P\1\tGln' Mti'olN:ftLVI\NtA AtilmCll\TlON uv M.UAt:rOMSlN' ,.."
~ ~l
BROIU:R (Cumplln
ACCEM'l!:D BY...
Ii l'o_ylvanla -
REAll0RS'
,..'*"t.Jr_DII....~
.
.
, 30 05 11.13a
J..ok Gau;hen Era Ch..mbe 7172670015
,..61
CHANG" TO LISTING CONTRACT 553
1 l'ROPERTY-Lo-~ ~'<\. ~mC\t\~ ~va.~ Dr.
: :~~r~{ (~~~) ~~s." .~ ~:: -_.~~ . ,
'UA'fEOFI.IS'l'lN(;CON'fRAt.'T ~\.'. \.C;-~k.. ~CI')Ll '__ LISTRDl'lUCES
, .
G Broker und Seller ''lI'"'' to chnngo lhc 'em", of dIe "'mv.: l.iMina c.ontract lIS follows:
: J. I'dtdlllg Dole .rtll< U!lIint; C::ontr:lcl;' dtungod 1m ..~t &.b fjeA<;;
. 2. I..htod Price ;, chung",I"" $ . - . -- ....
I) 3. I\l'I"'inl n",ipnlltcd ^Ae'II(.): . __ ..-.
11 Seller '\'''u''oco' lh. lIl\ellcy rchllioo,hipo hold wilh !llIlie.os..s oltUinlcd wilh Broker who lire nm Dcl1ignored Agen" for Seller,
I~ 4, RUln\l.. D.siAlIlIlcu A~cnl(<): ._
,.
CLC
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" AII.th"" lerm' ~iJ.~~.;I~:t (um"ill UIlChllllg,:<l 01111 in filII filICe alld elTcet.
:' ~ELLRN.~)"L' /' ~ r., _.,_...,' _ lJATgil::_.'~LIJ.'r
;: SP,U,RR .. DATE
~ SKI.I.l~R... . __..... _ _ ._ DATE ~
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA - CIVIL ACTION EQUITY
JACK GAUGHEN REAL TON, ERA
39]5 Market Street
Camp Hill, Pennsylvania 170]],
Plaintiff,
vs.
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants.
)
)
)
) No, 05-6162 - Civil
)
)
)
)
)
)
)
)
)
DEFENDANT'S PRELIMINARY OBJECTIONS
TO PLAINTIFF'S COMPLAINT
Now come the Defendants, Jeffrey George, Ada George, and Preferred Realty
LLC, trading and doing business as Exit Preferred Realty, by their attorney, Jeffrey S.
Evans, Esquire, and preliminary objects to Plaintiff's Complaint as fo\1ows:
I. PRELIMINARY OBJECTION RAISING QUESTION OF
IMPROPER VENUE PURSUANT TO PA.R.C.P. 1028(a)(I)
]. This action has been instituted in Cumberland County,
2, Defendant Preferred Realty, LLC is a corporation, incorporated in the
Commonwealth of Pennsylvania, with its principal place of business located at
3, The venue of this action is improper in this county, since under Pa. R.C.P,
2] 79 plaintiff may only bring this action against defendant corporation in the county
where the cause of action arose, where defendant's registered office or principal place of
business is located, where it regularly conducts business or where a transaction or
occurrence took place out of which the cause of action arose.
4, Plaintiffs complaint sets forth a cause of action which arose in Franklin
County, Pennsylvania as a result of an a\1eged breach of contract between Plaintiff and
Defendants Ada George and Jeffrey George, both residents of Franklin County,
Pennsylvania, as a result of events that are a\1eged to have occurred in Plaintiff's
Chambersburg Pennsylvania office, and involve persons, "the Former Salespersons," all
of whom live and/or work primarily in Chanlbersburg, Wayneshoro :md/or Greencastle,
Franklin County, Pennsylvania,
5, Defendants' believe that no transaction or occurrence giving rise to the
substantive allegations of Plaintiffs Complaint in this action took place in Cumberland
County.
6, Defendant was not personally served in this county. Defendant was served
with a copy of the complaint at their offices in Chambersburg, Franklin County,
Pennsylvania.
7, Venue in Cumberland County is accordingly improper under Pa. R.C,P,
2179.
WHEREFORE, Defendant requests that Plaintiffs complaint be dismissed for
Improper venue,
II. PRELIMINARY OBJECTION TO COUNT I - FAILURE TO PLEAD
WITH SUFFICIENT SPECIFICITY Pa.R.C.P. 1028(a)(3)
8. The averments of Paragraphs 1 through 7 above are incorporated herein as
if set forth at length.
9. Plaintiff is a company engaged in real estate sales company,
10. Defendants, Jeffrey George and Ada George, are licensed Pennsylvania
Real Estate Agents, and had been for a number of years prior to their affiliation with
Plaintiff.
11. During that period Defendants, Jeffrey and Ada George, have developed
contacts and customer lists that existed prior to their affiliation with Plaintiff,
12. Pursuant to Pa.R.C,P, 1019(a)" The material facts on which a cause of
action is based shall be stated in a concise and summary form,"
13, Pursuant to Pa.R.C.P, 1028(a)(3) averments of time, place and items of
special damages are required to be set forth specifically.
14, Plaintiffs Complaint fails to specify any particular "confidential or trade
secret information, which is solely the property of Plaintiff," that Defendants have used
or disclosed or have retained,
15. Plaintiff s Complaint fails to specify any particular person or persons to
whom the information has been disclosed.
16, Plaintiffs Complaint fails to specify any customer "lost" as a result of the
activities of Defendants.
17. Plaintiffs Complaint fails to specify any "employee" lost as a result of
any effort of Defendant's.
18. Without the above information, Defendants are precluded from
formulating a response to the complaint.
WHEREFORE, Defendant requests that this Honorable Court enter an Order
granting Defendants' Preliminary Objection and dismissing Plaintiffs complaint or, in
the alternative ordering Plaintiff to file a more specific pleading.
II, PRELIMINARY OBJECTION TO COUNT II - FAILURE TO PLEAD
WITH SUFFICIENT SPECIFICITY Pa.R.C.P,1028(a)(3)
19, The averments of Paragraphs 1 through 18 above are incorporated herein
by reference as if set forth at length,
20, Count II of Plaintiffs Complaint claims a breach of contract as to
Defendant Ada George,
21. Paragraph 46 alleges that Mrs. George "violated, among other things, the
confidentiality obligations, the covenants not to use or disclose confidential information,
and the covenants not to solicit employees."
22, Plaintiffs Complaint fails to specify with any particularity what specific
confidentiality obligations she breached or in what manner or by what conduct she
breached same,
23, Plaintiffs Complaint fails to specify with any specificity what, if any
confidential information of Plaintiff, Mrs. George is alleged to by using or disclosing.
24, Plaintiffs Complaint fails to specify any "employee" of Defendant that
Mrs. George is alleged to have solicited.
WHEREFORE, Defendant requests that this Honorable Court enter an Order
granting Defendants' Preliminary Objection and dismissing Plaintiffs complaint or, in
the alternative ordering Plaintiffto file a more specific pleading.
III, PRELIMINARY OBJECTION TO COUNT II1- FAILURE TO PLEAD
WITH SUFFICIENT SPECIFICITY Pa.R.c.P. 1028(a)(3)
25, The averments of Paragraphs 1 through 24 above are incorporated herein
by reference as if set forth at length.
26, Count III of Plaintiffs Complaint claims a breach of contract as to
Defendant Jeffrey George,
27. Plaintiffs Complaint alleges that "Mr. George has violated, among other
things his obligations as set forth in paragraphs 2,11 and 21, of his Independent
Contractor Agreement.
28, Plaintiffs Complaint fails to specify how Mr. George is alleged to have
violated those specific provisions,
29. Plaintiffs Complaint fails to specify precisely what other provisions of the
Independent Contractor Agreement he has or is violating.
WHEREFORE, Defendant requests that this Honorable Court enter an Order
granting Defendants' Preliminary Objection and dismissing Plaintiffs complaint or, in
the alternative ordering Plaintiffto file a more specific pleading,
IV. PRELIMINARY OBJECTION TO COUNT IV- FAILURE TO PLEAD
WITH SUFFICIENT SPECIFICITY Pa.R.c.P. 1028(a)(3)
30. The averments of Paragraphs I through 29 above are incorporated herein
by reference as if set forth at length,
31. Count IV of Plaintiffs Complaint contains a claim for conversion of
confidential business information.
32. Plaintiffs Complaint fails to assert what, if any, confidential business
information Defendants are to have used with any specificity.
33. Plaintiffs complaint provides only a general listing of various items that
Cendant Corporation, not a party to the lawsuit, labels in its handbook as confidential.
34, Further Plaintiffs Complaint fails to allege in what manner Defendants
have used such information, whatever it may be, to compete unfairly with Plaintiff.
WHEREFORE, Defendant requests that this Honorable Court enter an Order
granting Defendants' Preliminary Objection and dismissing Plaintiffs complaint or, in
the alternative ordering Plaintiff to file a more specific pleading,
V. PRELIMINARY OBJECTION TO COUNT IV - LEGAL
INSUFFICIENCY OF PLEADIING (DEMURRER) Pa.R.C.P, 1028(a)(4)
34, The averments of Paragraphs 1 through 34 above are incorporated herein
by reference as if set forth at length,
35, By virtue of 12 Pa.C.S, 5308, any civil action based upon the
misappropriation of a trade secret or confidential business information is displaced by the
Uniform Trade Secrets Act. 12 Pa,C.S, ~~5301 et seq.
WHEREFORE, Defendants request that this Honorable Court enter an Order
dismissing Count IV of Plaintiffs Complaint.
VI. PRELIMINARY OBJECTION TO COUNT V- FAILURE TO PLEAD
WITH SUFFICIENT SPECIFICITY Pa,R.C,P. 1028(a)(3)
36. The averments of Paragraphs 1 through 35 above are incorporated herein
by reference as if set forth at length,
37. Plaintiff fails to aver any trade secret of Plaintiff, rather merely averring
what Cendant Corporation, not a party to this action considers a trade secret.
38. Plaintiff fails to aver with any specificity what particular trade secrets of
Plaintiff that Defendants are alleged to have taken, used, or disclosed.
39. Plaintiff fails to aver with any specificity what, if any harm, it has
sustained as a result of the alleged use, taking or disclosure of said the alleged trade
secrets.
WHEREFORE, Defendant requests that this Honorable Court enter an Order
granting Defendants' Preliminary Objection and dismissing Plaintiffs complaint or, in
the alternative ordering Plaintiff to file a more specific pleading.
Jef
Alto ey efendants
2025 East Main Street
Waynesboro, P A 17268
(717)762-1415
P A Atty, ID No. 55654
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA - CIVIL ACTION EQUITY
JACK GAUGHEN REALTON, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs.
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants,
)
)
)
) No. 05-6162 - Civil
)
)
)
)
)
)
)
)
)
CERTIFICATE OF SERVICE
On January 5, 2006, the undersigned served the within Defendant's Preliminary
Objections to Plaintiffs Complaint on Plaintiff by mailing a true and correct copy of the same to
Plaintiffs attorney ofrecord Michael R. Greco, Esquire at the address listed below by first class
mail, postage prepaid, at the Post Office in Waynesboro, Pennsylvania:
Michael R. Greco, Esquire
Penn National Insurance Plaza
2 North Second Street, 7'h Floor
Harrisburg, P A 17101
By
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA - CIVIL ACTION EQUITY
JACK GAUGHENREALTON, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs,
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants.
)
)
)
) No. 05-6162 - Civil
)
)
)
)
)
)
)
)
)
PETITIONS TO OPEN DEFAULT JUDGMENT
Now come the Defendants, Ada George, Jeffrey George and Preferred Realty
LLC, trading and doing business as Exit Preferred Realty, and moves the Court as
follows:
GENERAL AVERMENTS
1. Petitioners are the Defendants in the above-captioned action.
2. Respondent is the Plaintiff in the above-captioned action,
3. On or about November 30, 2005, Respondent initiated this action by filing
a complaint, containing nine separate counts,
4, Pursuant to the Affidavit of Service filed in this matter on or about
January 4,2006, the complaint was served on the Defendants via private process server
on or about December 1, 2005.
5, By letter dated December 5, 2005, Respondent's counsel demanded
assurances and the return of any property of Respondent in the possession of Petitioners,
6. On or about December 19, 2005, Petitioners through their counsel by letter
responded to Respondents December 5, 2005 letter.
7. On or about December 22,2005, Respondent by their counsel sent Notice
ofIntention to take default judgment to Petitioners and Petitioner's counsel.
8, Petitioners believe and therefore aver that due to the holiday, Petitioners
did not receive said notice until December 28,2005, further, Petitioners's counsel did not
receive said notice until December 29,2005, after Petitioner's counsel had left the office
on a vacation.
9, On or about January 4,2006, Petitioners' counsel became aware of the
notice and contacted Respondent's counsel regarding whether default judgment had been
entered. Further Respondent's counsel contacted the Office ofthe Prothonotary of
Cumberland County and was advised that no judgment had yet been entered.
10, On or about January 5, 2006, Petitioners' counsel prepared and filed
Preliminary Objections to Respondent's complaint, a copy of which are attached hereto,
made part hereof, and marked Exhibit "A."
11. On or about January 6,2006, Petitioners' counsel received a letter from
Respondent's counsel advising that default judgment had been entered on January 4,
2006, A copy of that letter is attached hereto, made part hereof and marked Exhibit "B,"
12. On or about January 6,2006, Petitioners and their counsel received notice
of judgment from the Office of the Prothonotary, dated January 4,2006. A copy ofthe
Notice of Judgment received is attached hereto, made part hereof, and marked Exhibit
"C."
PETITION TO OPEN JUDGMENT AND LEAVE TO PROCEED WITH
PRELIMINARY OBJECTIONS
13, The averments of Paragraphs 1 through 12 of the General Averments are
incorporated herein by reference as if set forth at length.
14. Petitioners' Preliminary Objections raise the issue of venue, as well as for
a more specific pleading and a demurrer to one of the Counts of Respondent's complaint.
15, Petitioner's Complaint although it alleges that jurisdiction is appropriate in
Cumberland Count, alleges that the events leading to the filing of the complaint and
giving rise to the various counts occurred in Chambersburg, Franklin County,
Pennsylvania, and lists "Former Salespersons" all of whom were associated with
Respondent through its Chambersburg or Waynesboro, Franklin County offices and are
all employed and live in or around Franklin County, Pennsylvania.
16. Petitioners Jeffrey George and Ada George live and work in
Chambersburg, Pennsylvania.
17, Petitioner Preferred Realty LLC is a Pennsylvania limited liability
company with its registered address in Chambers burg, Franklin County, Pennsylvania.
18. The demurrer raised to the Count IV of Respondent's complaint is based
upon the provisions of 12 Pa,C.S. 5308 of the Uniform Trade Secrets Act which provides
that any civil action for based upon the misappropriation of trade secrets has been
displaced by the Uniform Trade Secrets Act.
19, Count IV of Respondent's Complaint involves a claim for
misappropriation of confidential business information.
20, The remainder of Petitioners' Preliminary Objections request that the
Court order Respondent to file a more specific pleading, particularly in light of the
general and "boilerplate averments" that populate the complaint and make it nearly
impossible for Petitioners' to be aware of the alleged "wrongful conduct" they are alleged
to have engaged in.
21, Although deemed not to applicable to the filing of Preliminary Objections,
Pa.R.c.P, 237.3 deems that a default judgment shall be opened when an answer is filed
within ten (l0) days following the entry of the judgment.
22. Petitioners filed meritorious Preliminary Objections within one day of
default judgment being entered, and within a day of Petitioners' counsel becoming aware
of the Notice of Intent to take default judgment, following his unavailability over the
New Year holiday.
WHEREFORE, Petitioners respectfully request that this Honorable Court enter an
Order opening the default judgment entered in this matter and allow the matter to proceed
on the Preliminary Objections of Petitioners filed on January 5,2006,
PETITION TO OPEN JUDGMENT PURSUANT TO PA.R.C,P, 237.3 AND FOR
LEAVE TO FILE ANSWER
23. The averments of Paragraphs I through 12 of the General Averments are
incorporated herein by reference as if set forth at length,
24, To the extent that they are able to discern the averments of wrongdoing
they are alleged to have engaged in, attached hereto is a verified answer raising
meritorious defenses to the counts contained in Respondent's complaint. The proposed
verified Answer with New Matter is attached hereto, made part hereof, and marked
Exhibit "(>."
25. Pursuant to Pa,R.C.P, 237.3 the court shall open the judgment if the
proposed answer asserts a meritorious defense.
WHEREFORE, Petitioners, in the alternative request that this Honorable Court
enter an Order opening the default judgment entered in this matter on January 4,2006
and granting leave to Petitioners to filed the attached Answer with New Matter.
Respectfully submitted,
Jeff!
A 0 fi r Defendants
2025 Ea Main Street
Waynesboro, P A 17268
(717)762-1415
P A Atty, ID No. 55654
VERIFICATION
I verify that the statements in this document are true and correct to the best of my knowledge,
information and belief, and I understand that false statements herein are made subject to the penalties
of 18 Pa, C.S. Section 4904, relating to unsworn falsification to authorities.
Dated: ! 117/! 2oe?
VERIFICATION
I verify that the statements in this document are true and correct to the best of my knowledge,
information and belief, and I understand that false statements herein are made subject to the penalties
of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities.
Dated:
;!J-/)-aOr;
AFFIDAVIT
I, Jeffrey George, state that I am a member of Preferred Realty, LLC, the Defendant, that I am
authorized to make this affidavit on its behalf and that the facts set forth in the foregoing document
are true upon my personal knowledge, information and belief.
I understand that my statements are made subject to 18 Pa, Cons. Stat. Section 4904
providing for criminal penalties for unsworn falsification to authorities.
Date: l..;-z-o {p
I
~
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA - CNIL ACTION EQUITY
JACK GAUGHEN REAL TON, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs.
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants.
)
)
)
) No, 05-6162 - Civil
)
)
)
)
)
)
)
)
)
CERTIFICATE OF SERVICE
13
On January ;Z; 2006, the undersigned served the within Defendants' Petitions to Open
Default Judgment on Plaintiff by mailing a true and correct copy ofthe same to Plaintiffs
attorney of record Michael R. Greco, Esquire at the address listed below by first class mail,
postage prepaid, at the Post Office in Waynesboro, Pennsylvania:
Michael R. Greco, Esquire
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, PA 17101
By: (
Jef
At! e... 0, 55654
Counsel for Plaintiff
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLV ANIA - CIVIL ACTION EQUITY
JACK GAUGHEN REALTON, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
)
)
)
) No, 05-6162 - Civil
)
)
)
)
)
)
)
)
)
L_
Plaintiff,
<--'
,-:-?
~.:j:2.
(')
vs,
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants.
DEFENDANT'S PRELIMINARY OBJECTIONS
TO PLAINTIFF'S COMPLAINT
Now come the Defendants, Jeffrey George, Ada George, and Preferred Realty
LLC. trading and doing business as Exit Preferred Realty, by their attorney, Jeffrey S.
Evans, Esquire, and preliminary objects to Plaintiffs Complaint as follows:
I. PRELIMINARY OBJECTION RAISING QUESTION OF
IMPROPER VENUE PURSUANT TO PA.R-C.P.. l028(a)(1)
1, This action has been instituted in Cumberland County.
2, Defendant Preferred Realty, LLC is a corporation, incorporated in the
Commonwealth of Pennsylvania, with its principal place of business located at
3. The venue of this action is improper in this county, since under Pa. R,C,P,
2179 plaintiff may only bring this action against defendant corporation in the county
where the cause of action arose, where defendant's registered office or principal place of
business is located, where it regularly conducts business or where a transaction or
occurrence took place out of which the cause of action arose,
4, Plaintiffs complaint sets forth a cause of action which arose in Franklin
County, Pennsylvania as a result of an alleged breach of contract between Plaintiff and
Defendants Ada George and Jeffrey George, both residents of Franklin County,
Pennsylvania, as a result of events that are alleged to have occurred in Plaintiffs
Chambersburg Pennsylvania office, and involve persons, "the Former Salespersons," all
of whom live and/or work primarily in Chambersburg, Waynesboro and/or Greencastle,
Franklin County, Pennsylvania,
EXHIBIT A
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5, Defendants' believe that no transaction or occurrence giving rise to the
substantive allegations of Plaintiffs Complaint in this action took place in Cumberland
County,
6, Defendant was not personally served in this county. Defendant was served
with a copy of the complaint at their offices in Chambersburg, Franklin County,
Pennsylvania,
7, Venue in Cumberland County is accordingly improper under Pa, R.C,P.
2179,
WHEREFORE, Defendant requests that Plaintiff's complaint be dismissed for
Improper venue,
II, PRELIMINARY OBJECTION TO COUNT I - FAILURE TO PLEAD
WITH SUFFICIENT SPECIFICITY Pa,R..c.p. 1028(a)(3)
8, The averments of Paragraphs 1 through 7 above are incorporated herein as
if set forth at length,
9, Plaintiff is a company engaged in real estate sales company,
10, Defendants, Jeffrey George and Ada George, are licensed Pennsylvania
Real Estate Agents, and had been for a number of years prior to their affiliation with
Plaintiff.
1 L During that period Defendants, Jeffrey and Ada George, have developed
contacts and customer lists that existed prior to their affiliation with Plaintiff.
12. Pursuant to Pa,R.C.P, 1019(a)" The material facts on which a cause of
action is based shall be stated in a concise and summary form."
13, Pursuant to Pa,R.C.P. 1028(a)(3) averments of time, place and items of
special damages are required to be set forth specifically.
14. Plaintiffs Complaint fails to specify any particular "confidential or trade
secret information, which is solely the property of Plaintiff," that Defendants have used
or disclosed or have retained,
15. Plaintiffs Complaint fails to specify any particular person or persons to
whom the information has been disclosed,
16, Plaintiffs Complaint fails to specify any customer "lost" as a result of the
activities of Defendants,
17, Plaintiff's Complaint fails to specify any "employee" lost as a result of
any effort of Defendant's,
18, Without the above information, Defendants are precluded from
formulating a response to the complaint.
WHEREFORE, Defendant requests that this Honorable Court enter an Order
granting Defendants' Preliminary Objection and dismissing Plaintiff's complaint or, in
the alternative ordering Plaintiff to file a more specific pleading.
II, PRELIMINARY OBJECTION TO COUNT II - FAILURE TO PLEAD
WITH SUFFICIENT SPECIFICITY Pa,R.c..P.. l028(a)(3)
19, The averments of Paragraphs 1 through 18 above are incorporated herein
by reference as if set forth at length,
20. Count II of Plaintiff's Complaint claims a breach of contract as to
Defendant Ada George.
21. Paragraph 46 alleges that Mrs, George "violated, among other things, the
confidentiality obligations, the covenants not to use or disclose confidential information,
and the covenants not to solicit employees."
22, Plaintiff's Complaint fails to specify with any particularity what specific
confidentiality obligations she breached or in what manner or by what conduct she
breached same,
23. Plaintiff's Complaint fails to specify with any specificity what, if any
confidential information of Plaintiff, Mrs, George is alleged to by using or disclosing,
24, Plaintiff's Complaint fails to specify any "employee" of Defendant that
Mrs, George is alleged to have solicited.
WHEREFORE, Defendant requests that this Honorable Court enter an Order
granting Defendants' Preliminary Objection and dismissing Plaintiff's complaint or, in
the alternative ordering Plaintiff to file a more specific pleading,
III, PRELIMINARY OBJECTION TO COUNT III - FAILURE TO PLEAD
WITH SUFFICIENT SPECIFICITY Pa,R.c.p. 1028(a)(3)
25, The averments of Paragraphs 1 through 24 above are incorporated herein
by reference as if set forth at length,
26, Count III of Plaintiff's Complaint claims a breach of contract as to
Defendant Jeffrey George,
27, Plaintiffs Complaint alleges that "Mr, George has violated, among other
things his obligations as set forth in paragraphs 2, 11 and 21, of his Independent
Contractor Agreement.
28, Plaintiffs Complaint fails to specify how Mr. George is alleged to have
violated those specific provisions.
29. Plaintiff s Complaint fails to specify precisely what other provisions of the
Independent Contractor Agreement he has or is violating,
WHEREFORE, Defendant requests that this Honorable Court enter an Order
granting Defendants' Preliminary Objection and dismissing Plaintiff's complaint or, in
the alternative ordering Plaintiff to file a more specific pleading,
IV. PRELIMINARY OBJECTION TO COUNT IV- FAILURE TO PLEAD
WITH SUFFICIENT SPECIFICITY Pa.R.C.P.I028(a)(3)
30. The averments of Paragraphs 1 through 29 above are incorporated herein
by reference as if set forth at length,
31, Count IV of Plaintiff's Complaint contains a claim for conversion of
confidential business information.
32, Plaintiff's Complaint fails to assert what, if any, confidential business
information Defendants are to have used with any specificity,
33, Plaintiffs complaint provides only a general listing of various items that
Cendant Corporation, not a party to the lawsuit, labels in its handbook as confidential.
34, Further Plaintiff's Complaint fails to allege in what manner Defendants
have used such information, whatever it may be, to compete unfairly with Plaintiff.
WHEREFORE, Defendant requests that this Honorable Court enter an Order
granting Defendants' Preliminary Objection and dismissing Plaintiffs complaint or, in
the alternative ordering Plaintiffto file a more specific pleading,
V. PRELIMINARY OBJECTION TO COUNT IV - LEGAL
INSUFFICIENCY OF PLEADIING (DEMURRER) Pa.R.C,P, l028(a)(4)
34, The averments of Paragraphs I through 34 above are incorporated herein
by reference as if set forth at length,
35. By virtue of 12 Pa,C.S, 5308, any civil action based upon the
misappropriation of a trade secret or confidential business information is displaced by the
Uniform Trade Secrets Act. 12 Pa,C.S, 995301 et seq,
.
WHEREFORE, Defendants request that this Honorable Court enter an Order
dismissing Count IV of Plaintiffs Complaint.
VI. PRELIMINARY OBJECTION TO COUNT V- FAILURE TO PLEAD
WITH SUFFICIENT SPECIFICITY Pa..R.c.P.. 1028(a)(3)
36, The avennents of Paragraphs I through 35 above are incorporated herein
by reference as if set forth at length,
37, Plaintifffails to aver any trade secret of Plaintiff, rather merely averring
what Cendant Corporation, not a party to this action considers a trade secret.
38, Plaintiff fails to aver with any specificity what particular trade secrets of
Plaintiff that Defendants are alleged to have taken, used, or disclosed,
39. Plaintiff fails to aver with any specificity what, if any hann, it has
sustained as a result of the alleged use, taking or disclosure of said the alleged trade
secrets,
WHEREFORE, Defendant requests that this Honorable Court enter an Order
granting Defendants' Preliminary Objection and dismissing Plaintiffs complaint or, in
the alternative ordering Plaintiff to file a more specific pleading.
fu"Y'"bmiU~
qUlre
Alto ey efendants
2025 East Main Street
Waynesboro, P A 17268
(717)762-1415
P A Atty. ID No. 55654
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA - CIVIL ACTION EQUITY
JACK GAUGHEN REALTON, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs,
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants.
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) No, 05-6162 - Civil
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CERTIFICATE OF SERVICE
On January 5, 2006, the undersigned served the within Defendant's Preliminary
Objections to Plaintiffs Complaint on Plaintiff by mailing a true and correct copy of the same to
Plaintiff's attorney of record Michael R, Greco, Esquire at the address listed below by first class
mail, postage prepaid, at the Post Office in Waynesboro, Pennsylvania:
Michael R, Greco, Esquire
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, PA 17101
By
s, Esquire
IV. 0 e, . No, 55654
Counsel for Plaintiff
SAUL
EWING
Attorneys at Law
A Delaware LLP
~ichael R. Greco
Phone: (610) 251-5757
Fax: (610)408-4413
mgreco@saul.com
www.saul.com
January 6, 2006
Via Facsimile (717-765-0172)
And United States Mail
Jeffrey S. Evans, Esquire
Law Offices of Jeffrey S, Evans
2025 East Main Street
Waynesboro, PelU1sylvania 17268
Re: Jack Gaughen Realtor, ERA v. Ada George et al.
(Cumberland County C.C.P. 05.6162)
Dear Mr. Evans:
I received a copy of the Defendants' Preliminary Objections to Plaintiffs Complaint (the
"Preliminary Objections"), which were filed on January 5, 2006 at 3:14 p,m. I also received
your cover letter stating that "At the time of the filing [of the Preliminary Objections] no
praecipe for default judgment had been entered," You are mistaken. Attached for your reference
is a copy of the Notice of Entry of Default Judgment, which was filed at 4: I 7 p.m. on January 4,
2006, and signed by the Prothonotary at the same time, Consequently, the Preliminary
Objections are untimely and of no force or effect. If you have any questions, please feel free to
contact me.
Very truly yours,
pt.r
Michael R. Greco
Enclosure
Chesterbrook Office. 1200 Liberty Ridge, Suite 200 . Wayne, PA ]9087-5569
Phone: (610) 25].5050.. Fax: (610) 65\~S930
BALTIMORE CIIESTERBROOK HARRISBURG NEWARK PHILADELPH1A PRINCETON WASHINGTON WILMINGTON
EXHIBIT B
"
MICHAEL R. GRECO, ESQUIRE
FRANCIS X RILEY, ESQUIRE
MATIHEW M. HAAR, ESQUIRE
NAILAH ROGERS, ESQUIRE
SAUL EWING LLP
Atty, ID Nos. 78426, 74075, 85688, and
200973
Penn National Insurance Plaza
2 North Second Street, 7'h Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
Attorneys for Plaintiff
IN TIlE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYL VANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REALTOR, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
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No.05-cv-6162
Plaintiff,
vs.
ADA GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
JEFFREY GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
785 5th Avenue
Chambersburg, Pennsylvania 17201
Defendants.
EXHIBIT C
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To:
ADA GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 1720 I
JEFFREY GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201
PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
785 5th Avenue
Chambersburg, Pennsylvania 17201
Dated: -.J::J.. \ 4 ;:;YYJL.
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Prothonotary ~ [J
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NOTICE OF ENTRY OF JUDGMENT BY DEFAULT
Pursuant to Pa. R, Civ. P. 236, you are hereby notified that a judgment by default
has been entered against you in the above-captioned case. IF YOU HAVE ANY
QUESTIONS CONCERNING THIS NOTICE, PLEASE CALL: Michael Greco,
Esquire, Matt Harr, Esquire, or Nailah Rogers, Esquire, counsel for the Plaintiff, JACK
GAUGHEN REAL TOR, ERA, at telephone number (717) 257-7500.
I
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA - CIVIL ACTION EQUITY
JACK GAUGHEN REALION, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs,
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants,
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) No. 05-6162 - Civil
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ANSWER WITH NEW MATTER
Now come the Defendants, Ada George, Jeffrey George and Preferred Realty
LLC, trading and doing business as Exit Preferred Realty, and answers the complaint of
Plaintiff Jack Gaughen Realtor ERA, as follows:
I. Denied. To the contrary, Defendant is without sufficient knowledge or
information to form a belief as to the truth ofthe averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
2, Admitted in part, denied in part. It is admitted that Defendant Ada George
("Mrs, George") is a resident of the Commonwealth of Pennsylvania living and residing
at 720 Franklin Street, Chambers burg, Franklin County, Pennsylvania. It is further
admitted that Mrs. George was a manager assigned to Jack Gaughen Realtor, ERA
Chambersburg office,
It is denied that Mrs. George was an employee of Plaintiff, much less a "key
employee." To the contrary Mrs. George was employed by Cendant Corporation
("Cendant") and worked for that entity at the Jack Gaughen Realtor, ERA Chambersburg,
Franklin County, Pennsylvania office,
3, Admitted,
4, Admitted,
5, Denied. To the contrary the facts alleged in Plaintiffs complaint in
support thereof, involve conduct and actions that occurred in Franklin County,
Pennsylvania, Further, Preferred is a limited liability company with its registered office
EXHIBIT D
in Chambersburg, Franklin County, Pennsylvania, and doing business in Franklin
County, Pennsylvania,
6, Denied, Defendant is without sufficient knowledge or information to form
a belief as to the truth of the averments of this paragraph and therefore same are denied
and proof thereof is demanded at trial.
7, Denied, Defendants are without sufficient knowledge or information to
form a belief as to the truth of the averments of this paragraph and therefore same are
denied and proofthereof is demanded at trial.
By way of further answer, it is denied that Mrs, George was ever an employee of
Plaintiff. To the contrary Mrs. George was an employee ofCendant.
8, Admitted.
9. Admitted in part, denied in part, It is admitted that Mrs. George was the
manager at Plaintiffs Chambersburg, Pennsylvania office. It is denied that Mrs. George
was an employee of Plaintiff. To the contrary the averments of paragraphs 2 and 7 hereof
are incorporated herein by reference as if set forth at length.
10. Denied. To the contrary, Mrs. George as an employee ofCendant signed
an acknowledgement form regarding Cendant Core Policies as well as other documents.
Mrs. George never signed any such documents purporting to contain policies of Plaintiff.
As to the remaining averments of this paragraph, Defendants are without sufficient
knowledge or information to form a belief as to the truth of the averments ofthis
paragraph and therefore same are denied and proof thereof is demanded at trial.
11. Denied, The averments of paragraphs 2,7, and 10 hereof are incorporated
herein by reference as if set forth at length, It is further denied that Mrs. George ever
signed any document pledging a duty ofloyalty to Plaintiff.
12. Denied, The averments of paragraphs 2,7, and 10 hereof are incorporated
herein by reference as if set forth at length, It is further denied that Mrs. George ever
signed any document containing said language for Plaintiff, by whom she was not
employed or paid,
13. Denied. To the contrary the averments of paragraphs 2,7, and 10 hereof
are incorporated herein by reference as if set forth at length.
As to the remaining averments of this paragraph, Defendants are without
sufficient knowledge or information to form a belief as to the truth of the averments of
this paragraph and therefore same are denied and proofthereofis demanded at trial.
14. Denied. To the contrary the averments of paragraphs 2,7 and 10 hereof
are incorporated herein by reference as if set forth at length,
As to the remaining averments of this paragraph, Defendants are without
sufficient knowledge or information to form a belief as to the truth of the averments of
this paragraph and therefore same are denied and proof thereof is demanded at trial.
15, Admitted,
16. Admitted in part, denied in part, It is admitted that Mr. George entered the
Independent Contractor Agreement attached to Plaintiff's Complaint marked Exhibit B.
As to the remaining averments ofthis paragraph, Defendants are without
sufficient knowledge or information to form a belief as to the truth of the averments of
this paragraph and therefore same are denied and proof thereof is demanded at trial.
17, Admitted,
18, Admitted,
19. Admitted.
20, Admitted,
21. Denied. To the contrary Mr. George was not provided with a Cendant
Core Policies Manual, during his association with Plaintiff.
22. Denied, To the contrary Mr. George formed Preferred with two other
partners. Mrs. George was not involved in the formation of Preferred in any respect, and
has no ownership interest in Preferred,
23. Admitted in part, denied in part, It is admitted that Preferred purchased an
Exit Realty Corp. International franchise, It is admitted further admitted that Preferred
competes with Plaintiff in Franklin County, Pennsylvania, It is denied that Preferred was
established by Mr. George for the purpose of competing with Plaintiff. To the contrary,
Mr. George had been in the process of obtaining his Pennsylvania Real Estate Brokers
License and was desirous of opening his own real estate business, having been a realtor in
Franklin County with various firms for a period in excess of fifteen years,
24. Denied, To the contrary the averments of paragraph 22 hereof are
incorporated herein by reference as if set forth at length. By way of further answer, Mr.
George is a member of Preferred, Mrs, George is an Independent Contractor working out
of Preferred's Chambersburg, Franklin County, Pennsylvania office.
25, Admitted.
26, Admitted in part, denied in part, It is admitted that on or about June 19,
2005, Mrs, George met with Darlene Gontz at her home, in or around Chambersburg,
Franklin County, Pennsylvania and that Mrs, George, informed Ms, Gontz that Mrs,
George would no longer be managing Plaintiffs Chambersburg office.
The remaining averments of this paragraph are denied as stated. To the contrary,
the meeting with Ms. Gontz took place at the specific request of Ms. Gontz who indicated
she would not be able to attend the meeting of salespersons scheduled for the morning of
June 20, 2005, Ms. Gontz, a friend of Mrs. George, asked Mrs, George why she was
leaving and where she would work following, Mrs, George indicated that she would be
working for Mr. George who with partners had purchased an Exit franchise. Mrs, George
advised that Mr. George intended to open in October 2005,
27. Admitted in part, denied in part. It is admitted that Mrs. George
conducted a meeting on June 20,2005. It is further admitted that she advised she would
be leaving her position as manager at Plaintiffs Chambersburg office.
It is denied that Mrs, George was forced to conduct the Meeting but rather she felt
an obligation to advise the persons she managed to that she would no longer be doing so,
28. Denied, To the contrary, Mrs. George advised that her husband had
purchased an Exit franchise and that she was going to work at his franchise. It is denied
that Mrs. George was openly critical of Plaintiff, but rather advised the sales staff they
were the reason Plaintiff was so successful. Mrs. George on questioning by the sales
staff, answered questions regarding Exit and provided a Preferred "mission statement."
Upon requests for additional information, Mrs. George advised that there would be a
breakfast meeting of anyone interested in hearing about Preferred and Exit on June 22,
2005. No invitation was made to any specific member of the sales staff.
29. Denied. To the contrary, Mrs. George made no such individual
solicitations,
30. Denied. To the contrary, Mrs. George did not actively solicit any of the
Salespersons listed, Several ofthe salespersons listed were not at either the June 20,
2005 meeting and/or the meeting on June 22, 2005. Further, Tina Long, James Sourbier,
Jennifer Deverell and William Kopp were all fired by Plaintiff and subsequently became
associated with Preferred, and Michele Cordell was never an employee of or an
independent contractor associated with Plaintiff.
31 , Denied. Defendants are without sufficient knowledge or information to
form a belief as to the truth ofthe averments ofthis paragraph and therefore same are
denied and proof thereof is demanded at trial.
32. Admitted in part, denied in part. It is admitted that the Fornler
Salespersons listed work for Preferred. It is denied that their association with Preferred
was a result of any wrongful conduct on part of Defendants.
As to the remaining averments of this paragraph, Defendants are without
sufficient knowledge or information to form a belief as to the truth of the averments of
this paragraph and therefore same are denied and proof thereof is demanded at trial.
33, Admitted in part, denied in part, It is admitted that Mr. and Mrs, George
frequently co-listed properties, and had done so even prior Mr. George's affiliation with
Plaintiff and Mrs, George becoming an employee of Cendant.
It is denied that S&A Homes was a customer of Plaintiff, but rather S&A Homes
had a long standing relationship with Mr. George that predated his association with
Plaintiff.
34, Admitted in part, denied in part. It is admitted that said "Change to
Listing Contracts" before terminating his association with Plaintiff. It is denied that he
solicited customer to change same, To the contrary said "Change to Listing Contract"
forms were prepared at the direction and specific request of the client S&A Homes.
Further it is common practice for agents to be able to enter said change forms without any
knowledge, consent or approval of a broker.
35. Admitted in part, denied in part. It is admitted that Mr. George terminated
his affiliation with Plaintiff. Mrs, George, however resigned from her employ with
Cendant.
36. Admitted,
37, Admitted.
38. Denied, To the contrary, six of the properties were listed with Exit
Platinum Plus on June 28, 2005. Said properties were expired on July 1, 2005, and
relisted with Plaintiff on July I, 2005.
39. Denied, To the contrary, S&A Homes, which had approved the change to
the listings, advised that James Grandon, contacted them complaining about the listings
and that in response to his complaints they requested Mr. George relinquish the listings
and he did so, again at the specific request of S&A Homes.
40. To the extent that averments of this paragraph constitute conclusions of
law, no response is required.
To the extent an answer is required the averments are denied. To the contrary,
Defendants have not engaged in any wrongful conduct.
As to the remaining averments of this paragraph, Defendants are without
sufficient knowledge or information to form a belief as to the truth of the averments of
this paragraph and therefore same are denied and proof thereof is demanded at trial.
.
COUNT I
INJUNCTIVE RELIEF
(Against All Defendants)
41. The averments of Paragraphs I through 40 of this Answer are incorporated
herein as if set forth at length.
42. The averments of this paragraph constitute a conclusion of law to which
no response is required,
43,
follows:
Denied, To the contrary, the various subparagraphs are answered as
a. Denied. Defendants are not in possession of nor have they disclosed any
confidential or trade secret information of Plaintiffs, whatever same may be.
b, Denied. Defendants are without sufficient knowledge or information to
form a belief as to the truth of the averments of this paragraph and therefore same are
denied and proofthereof is demanded at trial.
c, Denied, Defendants are without sufficient knowledge or information to
form a belief as to the truth of the averments of this paragraph and therefore same are
denied and proofthereof is demanded at trial.
d. Denied, To the contrary, Defendants believe and therefore aver that
Plaintiff is by far the real estate agency doing the highest volume of real estate sales in
Franklin County even since Preferred opened. As to the remaining averments of this
paragraph, Defendants are without sufficient knowledge or information to form a belief
as to the truth ofthe averments of this paragraph and therefore same are denied and proof
thereof is demanded at trial.
44. The averments of this paragraph constitute a conclusion oflaw to which
no response is required,
WHEREFORE, Defendants request that this Honorable Court enter an Order
denying Plaintiffs request for injunctive relief in whole and enter judgment in favor of
Defendants for the costs of this action,
COUNT II
BREACH OF CONTRACT
(Against Mrs. George)
45, The averments of Paragraphs 1 through 44 of this Answer are incorporated
herein as if set forth at length.
46, Denied, To the contrary, Mrs, George owes no obligation to Plaintiff in
that she was not an employee of Plaintiff. The averments of Paragraphs 2, 7, and 10
through 12 hereof are incorporated herein by reference as if set forth at length.
47. Denied. To the contrary, Mrs, George owes no obligation to Plaintiff in
that she was not an employee of Plaintiff. The averments of Paragraphs 2, 7, and 10
through 12 hereof are incorporated herein by reference as if set forth at length.
48, To the extent that the averments of this paragraph constitute conclusions
oflaw, no response is required,
To the extent an answer is required the averments are denied and the averments of
Paragraph 43 a through d hereof are incorporated by reference as if set forth at length. As
to the remaining averments ofthis paragraph, Defendants are without sufficient
knowledge or information to form a belief as to the truth of the averments of this
paragraph and therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendant respectfully requests that this Honorable Court enter
judgment in favor of Defendant and against Plaintiff on this Count and award Defendants
the costs of this action.
COUNT III
BREACH OF CONTRACT
(Against Mr. George)
49. The averments of Paragraphs I through 48 of this Answer are incorporated
herein as if set forth at length,
50, Denied. To the contrary the averments of Paragraphs IS through 24, and
34 through 40 hereof are incorporated herein by reference as if set forth at length,
51. Denied. Defendant is without sufficient knowledge or information to form
a belief as to the truth of the averments contained is this paragraph, therefore, same are
denied and proof thereof is demanded at trial.
52, Denied. Defendant is without sufficient knowledge or information to form
a belief as to the truth of the averments contained is this paragraph, therefore, same are
denied and proof thereof is demanded at trial.
53. To the extent that the averments of this paragraph constitute conclusions
oflaw, no response is required,
To the extent an answer is required the averments are denied and the averments of
Paragraph 43 a through d hereof are incorporated by reference as if set forth at length, As
to the remaining averments of this paragraph, Defendants are without sufficient
knowledge or information to form a belief as to the truth of the averments of this
paragraph and therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendant respectfully requests that this Honorable Court enter
judgment in favor of Defendant and against Plaintiff on this Count and award Defendants
the costs of this action,
COUNT IV
CONVERSION OF CONFIDENTIAL BUSINESS INFORMATION
(All Defendants)
54, The averments of Paragraphs 1 through 53 of this Answer are incorporated
herein as if set forth at length.
55, Denied, To the contrary both Mr. and Mrs, George were successful
realtors in Franklin County, PelU1sylvania prior to their respective associations with
Plaintiff and have garnered no specialized knowledge not readily discernible or
discoverable by experienced persons in the real estate sales field, As to the remaining
averments of this paragraph, Defendants are without sufficient knowledge or information
to form a belief as to the truth of the averments of this paragraph and therefore same are
denied and proof thereof is demanded at trial.
56. Denied, The averments of Paragraph 55 hereof are incorporated herein by
reference as if set forth at length, As to the remaining averments of this paragraph,
Defendants are without sufficient knowledge or information to form a belief as to the
truth of the averments of this paragraph and therefore same are denied and proof thereof
is demanded at trial.
57. To the extent that the averments of this paragraph constitute conclusions
oflaw, no response is required,
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proofthereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action,
COUNT V
MISAPPROPRIATION OF TRADE SECRETS, 12 Pa.C.S.A. Sections 5301- 5308
(All Defendants)
58. The averments of Paragraphs 1 through 57 ofthis Answer are incorporated
herein as if set forth at length,
59, Denied, Defendants are without sufficient knowledge or information to
form a belicf as to thc truth of the avennents contained is this paragraph, therefore, same
arc denied and proof thereof is demanded at trial.
60, Denied, Defendants are without sufficient knowledge or information to
form a belief as to the truth of the averments contained is this paragraph, therefore, same
are denied and proof thereof is demanded at trial.
61. Denied. Defendant is without sufficient knowledge or information to form
a belief as to the truth of the averments contained is this paragraph, therefore, same are
denied and proof thereof is demanded at trial.
62. Denied, To the contrary, Mr. and Mrs, George have not actively recruited
any of Plaintiffs salespersons, and have only provided information regarding Preferred
and Exit if approached, As to the remaining averments of this paragraph, Defendants are
without sufficient knowledge or information to form a belief as to the truth of the
averments contained is this paragraph, therefore, same are denied and proofthereof is
demanded at trial.
63, To the extent that the averments of this paragraph constitute conclusions
of law, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
64, To the extent that the averments of this paragraph constitute conclusions
oflaw, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
65. To the extent that the averments of this paragraph constitute conclusions
of law, no response is required,
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth ofthe averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action,
COUNT VI
BREACH OF DUTY OF LOYALTY
(Against Mr. and Mrs. George)
66, The averments of Paragraphs I through 65 of this Answer are incorporated
herein as if set forth at length.
67, Denied, To the contrary, Mrs, George owes no obligation to Plaintiff in
that she was not an employee of Plaintiff. The averments of Paragraphs 2,7, and 10
through 12 hereof are incorporated herein by reference as if set forth at length. Further
Mr. George has not breached any common law duty of loyalty to Plaintiff or any duty
imposed upon him by virtue of the Independent Contractor Agreement.
68. To the extent that the averments ofthis paragraph constitute conclusions
oflaw, no response is required,
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action.
COUNT VII
UNFAIR COMPETITION
(Against all Defendants)
69. The averments of Paragraphs I through 68 of this Answer are incorporated
herein as if set forth at length,
70, The averments of this paragraph constitute conclusions oflaw to which no
response is required.
71. To the extent that the averments of this paragraph constitute conclusions
oflaw, no response is required,
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action,
.
COUNT VIII
INTERFERENCE WITH CONTRACTUAL RELATIONS
(Against all Defendants)
72, The averments of Paragraphs 1 through 71 of this Answer are incorporated
herein as if set forth at length.
73. Denied. As to Mrs. George the averments of Paragraphs 2, 7, and 10
through 12 hereof are incorporated herein by reference as if set forth at length. As to Mr.
George, it is denied he has any existing contractual relation with Plaintiff. As to the
remaining averments of this paragraph, Defendants are without sufficient knowledge or
information to form a belief as to the truth of the averments contained is this paragraph,
therefore, same are denied and proofthereof is demanded at trial.
74. Denied. Defendants are without sufficient knowledge or information to
form a belief as to the truth of the averments contained is this paragraph, therefore, same
are denied and proof thereof is demanded at trial.
75. To the extent that the averments of this paragraph constitute conclusions
oflaw, no response is required.
To the extent an answer is required, it is denied that Defendants knowingly
solicited, aided or abetted any person to breach any contractual obligation that person
may have had with Plaintiff, As to the remaining averments of this paragraph Defendants
are without sufficient knowledge or information to form a belief as to the truth of the
averments ofthis paragraph and therefore same are denied and proof thereof is demanded
at trial.
76, The averments of this paragraph constitute conclusions of law to which no
response is required.
77. Denied, As to Mrs, George the averments of Paragraphs 2, 7, and 10
through 12 hereof are incorporated herein by reference as if set forth at length, As to Mr.
George, it is denied he has any existing contractual relation with Plaintiff or that he
breached any contractual obligation owed Plaintiff under the Independent Contractor
Agreement. As to the remaining averments of this paragraph, Defendants are without
sufficient knowledge or information to form a belief as to the truth of the averments
contained is this paragraph, therefore, same are denied and proof thereof is demanded at
trial.
78, The averments of this paragraph constitute conclusions oflaw to which no
response is required,
79. To the extent that the averments of this paragraph constitute conclusions
of law, no response is required.
.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action,
COUNT IX
TOR TIODS INTERFERENCE WITH PROSPECTIVE ECONOMIC ADV ANT AGE
(Against all Defendants)
80. The averments of Paragraphs I through 79 of this Answer are incorporated
herein as if set forth at length.
81. The averments of this paragraph constitute conclusions oflaw to which no
response is required,
82. To the extent that the averments of this paragraph constitute conclusions
oflaw, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments ofthis paragraph and
therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action,
COUNT X
CIVIL CONSPIRACY
(Against all Defendants)
83. The averments of Paragraphs I through 79 of this Answer are incorporated
herein as if set forth at length.
84. Denied, To the contrary, Defendants lawfully operate offices in Franklin
County, Pennsylvania that lawfully offers real estate services to potential buyers and
sellers of real estate throughout Franklin County, and do so without interfering with or
violating any right of Plaintiff.
85. The averments ofthis paragraph constitute legal conclusions to which no
response is required,
86. The averments ofthis paragraph constitute legal conclusions to which no
response is required,
.
87, The averments of this paragraph constitute legal conclusions to which no
response is required.
88, To the extent that the averments of this paragraph constitute conclusions
of law, no response is required,
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action.
COUNT XI
CONSTRUCTIVE TRUST
(Against all Defendants)
89. The averments of Paragraphs I through 88 of this Answer are incorporated
herein as if set forth at length.
90, The averments of this paragraph constitute legal conclusions to which no
response is required.
91. To the extent that the averments of this paragraph constitute conclusions
of law, no response is required,
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
92, The averments of this paragraph constitute legal conclusions to which no
response is required.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action.
NEW MATTER
93. The averments of Paragraphs 1 through 92 of this Answer are incorporated
herein as if set forth at length,
94. Plaintiff, despite being aware that Mr. George was opening a real estate
office, in June 2005, delayed bringing the present action until November 30,2005,
.
.
95, Defendants have been prejudiced by said delay, particularly, Mr. George
and Preferred, who have invested significant time, money and effort in opening its
offices,
96. Plaintiff is guilty of laches.
97. Plaintiffs causes of action against Defendants are accordingly barred by
the defense of laches,
98, Since terminating her employment with Cendant, Plaintiffs president,
James Grandon has repeatedly contacted Mrs, George via telephone, requesting that she
return and when she refused, he threatened he would sue Mr. and Mrs, George "just to
sap their time, energy and money."
99, Neither Mr. or Mrs. George signed any document, either in their affiliation
with Plaintiffthat contained a covenant not to compete with Plaintiff or Cendant (in the
case of Mrs. George), nor did they sign any confidentiality agreement in favor of
Plaintiff.
100. During the course of the last year other agents have terminated their
associations with Plaintiff, and Plaintiff has allowed them to leave with not only their
listings, but Plaintiff has failed to take any action against said agents to protect its alleged
"trade secrets and confidential business information." Further, Plaintiff routinely
provides prospective agents with information regarding its commission structure and
other similar information regarding its methods of conducting business,
101. Plaintiff has asserted these same claims in a proceeding pending before the
Pennsylvania Real Estate Commission, which Defendants believe and therefore aver that
either Plaintiff or James Grandon, filed in or about December 2005,
102. Plaintiff, through its president James Grandon has advised several of
Defendants' agents that he would soon have Defendants' real estate licenses and that
Defendants would have to cease operations,
103. At the time Plaintiff made said statements, he knew or should have known
same were fraudulent and misleading.
104, Plaintiff asks for equitable relief but does not come before the Court with
clean hands,
, .
.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on all counts of Plaintiffs
Complaint and further award Defendants the costs of this action,
/
L
Jeffi:
Att efendants
20 5 East Main Street
Waynesboro, PA 17268
(717)762-1415
P A Atty. ill No, 55654
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VERIFICATION
I verify that the statements in this document are true and correct to the best of my knowledge,
information and belief, and I understand that false statements herein are made subject to the penalties
of I 8 Pa, C,S, Section 4904, relating to unsworn falsification to authorities,
Dated: I '
1(( ~ l'LOu (.
VERIFICATION
I verify that the statements in this document are true and correct to the best of my knowledge,
information and belief, and I understand that false statements herein are made subject to the penalties
of 18 Pa, C.S, Section 4904, relating to unsworn falsification to authorities,
Dated:
I (! z) )00 {,
d##~ ' ~0
J1frey e, fendant
AFFIDAVIT
I, Jeffrey George, state that I am a member of Preferred Realty, LLC, the Defendant, that I am
authorized to make this affidavit on its behalf and that the facts set forth in the foregoing document
are true upon my personal knowledge, information and belief.
I understand that my statements are made subject to 18 Pa. Cons. Stat. Section 4904
providing for criminal penalties for unsworn falsification to authorities.
Preferred Realty, LLC
Date:
J -(2- O.1fj
,
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MICHAEL R, GRECO, ESQUIRE
FRANCIS X, RILEY, ESQUIRE
MATTHEW M, HAAR, ESQUIRE
NAILAH ROGERS, ESQUIRE
SAUL EWING LLP
Atty. ID Nos. 78426, 74075, 85688, and
200973
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
Attorneys for Plaintiff
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYL VANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REALTOR, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs.
ADA GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
JEFFREY GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
785 5th Avenue
Chambersburg, Pennsylvania 17201
Defendants.
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No.05-cv-6162
To:
ADA GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 1720 I
JEFFREY GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201
PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
th
7855 Avenue
Chambersburg, Pennsylvania 1720 I
NOTICE OF ENTRY OF JUDGMENT BY DEFAULT
Pursuant to Pa. R. Civ, p, 236, you are hereby notified that a judgment by default
has been entered against you in the above-captioned case, IF YOU HAVE ANY
QUESTIONS CONCERNING THIS NOTICE, PLEASE CALL: Michael Greco,
Esquire, Matt Harr, Esquire, or Nailah Rogers, Esquire, counsel for the Plaintiff, JACK
GAUGHEN REAL TOR, ERA, at telephone number (717) 257-7500,
Dated:, J~ ') I....f ~ C)!')fo
- I
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Prbthonotary .~
MICHAEL R, GRECO, ESQUIRE
FRANCIS X, RILEY, ESQUIRE
MATTHEW M. HAAR, ESQUIRE
NAILAH ROGERS, ESQUIRE
SAUL EWING LLP
Atty. ID No, 78426, 74075, 85688, and
200973
Penn National Insurance Plaza
2 North Second Street, 7'h Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
Attorneys for Plaintiff
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REALTOR, ERA
3915 Market Street
Camp Hill, Pennsylvania 1701 I,
Plaintiff,
vs.
ADA GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
JEFFREY GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
785 5th Avenue
Chambersburg, Pennsylvania 17201
Defendants.
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No,05.cv-6I62
.
CERTIFICATION OF ADDRESSES
I hereby certify that to the best of my knowledge, information, and belief, the last
known address of Plaintiff, JACK GAUGHEN REALTOR, ERA, is 3915 Market Street,
Camp Hill, Pennsylvania 17011, and that the last known address of Defendants, ADA
GEORGE and JEFFREY GEORGE is 720 Franklin Drive, Chambersburg, Pennsylvania
17201, and the last known address for Defendant, PREFERRED REALTY, LLC d/b/a
EXIT PREFERRED REALTY LLC, is 785 5th Avenue, Chambers burg, Pennsylvania,
17201.
By: //d::t/ ~ C<-/L
Nailah I. Rogers, E~q0
Dated: January 4, 2006
MICHAEL R. GRECO, ESQUIRE
FRANCIS X. RILEY, ESQUIRE
MATTHEW M. HAAR, ESQUIRE
NAILAH 1. ROGERS, ESQUIRE
SAUL EWING LLP
Atty.IDNo. 78426, 74075,85688,and
200973
Penn National Insurance Plaza
2 North Second Street, 7'h Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
Attorneys for Plaintiff
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REALTOR, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs,
ADA GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 1720 I,
and
JEFFREY GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
785 5th Avenue
Chambersburg, Pennsylvania 17201
Defendants,
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No. 05-cv-6162
PRAECIPE FOR ENTRY OF DEF AUL T JUDGMENT
TO THE PROTHONOTARY:
Please enter a default judgment in the above-captioned case in favor of Plaintiff,
JACK GAUGHEN REAL TOR, ERA and against Defendants, ADA GEORGE,
JEFFREY GEORGE and PREFERRED REALTY, LLC) d/b/a EXIT PREFERRED
REAL TY LLC ("Preferred"), for failure to answer or otherwise respond to Plaintiff's
Complaint (the "Complaint"),
The above-captioned case was commenced by a Complaint, filed by Plaintiff with
this Court on November 30, 2005. A true and correct copy of an Affidavit of Service
showing service of original process by hand pursuant to Pa. R. Civ, P. 400(b)(1) and 402
upon all Defendants on December 1, 2005 is attached hereto as Exhibit "A".
A Notice of Intent to Take Default (the "Notice") was served upon all Defendants
by first class mail, postage prepaid, on December 22, 2005, A true and correct copy of
the Notice and the Certificate of Service of Matthew M. Haar, Esquire, evidencing
service of the Notice, is attached hereto at Exhibit "B". Pursuant to the Notice, the
Defendants were required to answer or otherwise respond to the Complaint within ten
(10) days, The ten-day period expired on January 3, 2006. "
. . ... ' /)
By'> f it c/ /. /)/ /
. ~l--x.c U C'L
Michael R. Greco, Esquir /
Francis X, Riley, Esquire
Matthew M, Haar, Esquire
Nailah 1. Rogers, Esquire
Atty. ID Nos, 78426,74075, 85688 & 200973
Saul Ewing LLP
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
Dated: January 4, 2006 Attorneys for Plaintiff
AND NOW, this /.f~ day of ~ J:;zo ,2006, judgment is hereby entered in
favor of Plaintiff, JACK GAUGHEN REALTOR, ERA, and against Defendants, ADA
GEORGE, JEFFREY GEORGE and PREFERRED REALTY, LLC) d/b/a EXIT
PREFERRED REALTY LLC by default for the failure of the Defendants to answer or
otherwise respond to Plaintiffs Complaint, and damages are shall be assessed against the
Defendants pursuant to Pa. R. Civ. p, 1037(b)(I) in an amount to be determined at trial at
which the issues shall be limited to the amount of damages, and such interest, including
pre-judgment interests, and costs as allowed by law; and such other relief as the Court
may deem appropriate.
MICHAEL R. GRECO, ESQUIRE
FRANCIS X. RILEY, ESQUIRE
MATTHEW M. HAAR, ESQUIRE
NAILAH I. ROGERS, ESQUIRE
SAUL EWING LLP
Atty. ID No, 78426, 74075, 85688, and
200973
Penn National Insurance Plaza
2 North Second Street, 7'h Floor
Harrisburg, Pennsylvania 1710 I
(717) 257-7500
Attorneys for Plaintiff
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REAL TOR, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs,
ADA GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
JEFFREY GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
785 5th Avenue
Chambersburg, Pennsylvania 17201
Defendants,
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No.05-cv-6162
CERTIFICATION OF MAILING OF NOTICE OF INTENT TO TAKE
DEFAULT JUDGMENT
I, Nailah I. Rogers, Esquire, hereby certify that Plaintiff, JACK GAUGHEN
REAL TOR, ERA's Notice of Intent to Take Default Judgment pursuant to Pa, R, Civ, p,
237.I(a)(2) was mailed on December 22, 2005, by United States first class mail, postage
prepaid, accompanied by a Certificate of Service to the following:
Ada George
720 Franklin Square Drive
Chambersburg, PA 17201
Preferred Realty, LLC
d/b/a Exit Preferred Realty LLC
417 Phoenix Drive
Chambersburg, PA 17201
Jeffrey George
720 Franklin Square Drive
Chambersburg, P A 17201
Preferred Realty, LLC
d/b/a Exit Preferred Realty LLC
785 5th Avenue
Chambersburg, PAl 720 1
Ada George
Exit Preferred Realty LLC
785 5th Avenue
Chambersburg, P A 1720 I
Jeffrey George
Exit Preferred Realty LLC
785 5th Avenue
Chambersburg, P A 1720 I
Jeffrey S, Evans, Esquire
2025 East Main Street
Waynesboro, PAl 7268
True and correct copies of the Notice of Intent to Take Default Judgment and the
accompanying Certificate of Service are attached to the Praecipe For Entry of Default
Judgment at Exhibit "B".
~. ) ~./!' )
By: Id&{--. t't;(l~
Nailah 1. Rogers, Es'1t#e
Dated: January 4, 2006
EXHIBIT "A"
MICHAEL R, GRECO, ESQUIRE
FRANCIS X, RILEY, ESQUIRE
MATTHEW M. HAAR, ESQUIRE
SAUL EWING LLP
Atty, ID No, 78426, 74075 & 85688
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
Attorneys for Plaintiff
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REALTOR, ERA
3915 Market Street
Camp HilI, Pennsylvania 170 II,
Plaintiff,
vs.
ADA GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 1720 I,
and
JEFFREY GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
785 5th Avenue
Chambersburg, Pennsylvania 1720 I
Defendants.
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No,05-cv-6162
AFFIDAVIT OF SERVICE AS TO ALL DEFENDANTS
1206<12.1114/06
COMMONWEALTH OF PENNSYLV ANIA
COUNTY OF DAUPHIN
SS
Before me, the undersigned Notary Public, personally appeared Michael D. Vishnesky,
Investigator for API Investigations of Marysville, Pennsylvania, to me known, who being duly
sworn according to law, deposes and says as follows:
1, I am adult individual, 42 years of age, and not a party, an employee of a party, or a
relative of a party to this action, The Complaint in this civil action includes a n'quest for injunctive relief,
and consequently, I was retained by the plaintiffto serve original process pursuant to Pa, R, Civ, p,
400(b)( I ),
2, On Thursday, December 1,2005 at4:15 p,m" 1 served a true and correct copy of the
Complaint in this civil action upon the Defendant, Preferred Realty, LLC d/b/a Exit Preferred Realty
("Preferred"), a Pennsylvania limited liability company at Preferred's office located at 785 5th Avenue,
Chambersburg, Pennsylvania 17201, by personally handing a copy of the Complaint to Jeffrey George,
who identified himself as the person in charge of Preferred's office,
3, On Thursday, December 1,2005 at 4: 1 5 p.m" I served a true and correct copy of the
Complaint in this civil action upon the Defendant, Jeffrey George at 785 5'h Avenue, Chambersburg,
Pennsylvania 17201, by personally handing a copy ofthe Complaint to Jeffrey George,
4, On Thursday, December 1,2005 at 4: 1 5 p.m" I served a true and correct certified copy of
the Complaint in this civil action upon the Defendant, Ada George at her usual place of business, which is
located at 785 5'h Avenue, Chambersburg, Pennsylvania 17201, by personally handing a copy of the
Complaint to her husband, Jeffrey George, who identified himself as the person in charge ofthe office.
120642.11/4106
I declare under penalty of perjury that the foregoing statements are true and correct to the
best of my knowledge, information and belief.
Michael
ishnesky
Sworn and subscribed to
before me this 4th day of
January, 2006.
'-~i X)~d
~otary Public
COMMONWEALTH OF PENNSYLVANIA
Notarial Seal
KatI1y L Siller, NoIary Public
at)' Of Harrisburg. Dauphin Coonly
My CanmIssion Expires Mar, 23, 2008
Member. Pennsylvania .a~".c('iatinfi Of Notaries
1206421IJ4106
CERTIFICATE OF SERVICE
I hereby certify that on January 4, 2006, ] served a true and correct copy of the
foregoing Affidavit of Service upon the following parties by first class mail, postage prepaid:
Ada George
720 Franklin Square Drive
Chambersburg, PAl 720]
Preferred Realty, LLC
d/b/a Exit Preferred Realty LLC
417 Phoenix Drive
Chambersburg, P A 1720 I
Jeffrey George
720 Franklin Square Drive
Chambersburg, PA 17201
Preferred Realty, LLC
d/b/a Exit Preferred Realty LLC
785 5th A venue
Chambersburg, P A 1720 I
Ada George
Exit Preferred Realty LLC
785 5th Avenue
Chambersburg, P A 17201
Jeffrey George
Exit Preferred Realty LLC
785 5th A venue .
Chambersburg, P A 17201
Jeffrey S, Evans, Esquire
2025 East Main Street
Waynesboro, PA 17268
~ /1
" /t1J;"Yl~v<1/c?
Nailah I. Rogers, Ulre
Dated: January 4, 2006
12064211/4106
EXHIB IT "B"
MICHAEL R. GRECO, ESQUIRE
FRANCIS X. RILEY, ESQUIRE
MATTHEW M. HAAR, ESQUIRE
SAUL EWING LLP
Atty. ID No, 78426, 74075 & 85688
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
Attorneys for Plaintiff
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REAL TOR, ERA
3915 Market Street
Camp Hill, Pennsylvania 170 II,
Plaintiff,
vs,
ADA GEORGE
720 Franklin Square Drive
Chambersburg, Pennsylvania 17201,
and
JEFFREY GEORGE
720 Franklin Square Drive
Chambers burg, Pennsylvania 1720 I,
and
PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
417 Phoenix Drive
Chambersburg, Pennsylvania 1720 I
Defendants,
120409.112/22/05
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No.05-cv-6162
To: Ada George
720 Franklin Square Drive
Chambersburg, P A 1720 I
Preferred Realty, LLC
d/b/a Exit Preferred Realty LLC
417 Phoenix Drive
Chambersburg, P A 1720 I
Jeffrey George
720 Franklin Square Drive
Chambersburg, P A 17201
Preferred Realty, LLC
d/b/a Exit Preferred Realty LLC
785 5th Avenue
Chambers burg, P A 1720 I
Ada George
Exit Preferred Realty LLC
785 5th Avenue
Chambersburg, P A 1720 I
Jeffrey George
Exit Preferred Realty LLC
785 5th Avenue
Chambersburg, P A 1720 I
Jeffrey S. Evans, Esquire
2025 East Main Street
Waynesboro, P A 17268
Date of Notice: December 22,2005
IMPORTANT NOTICE
YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A
WRITTEN APPEARANCE PERSON ALL Y OR BY ATTORNEY AND FILE IN WRITING
WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH
AGAINST YOU. UNLESS YOU ACT WITHIN TEN DAYS FROM THE DATE OF THIS
NOTICE, A JUDGMENT MAYBE ENTERED AGAINST YOU WITHOUT A HEARING
AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS,
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
LA WYER,
120409112/22/05
-2-
IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE
ABLE TO PROVIDE YOU WITH INFORMA nON ABOUT AGENCIES THAT MAY
OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE.
Cumberland County Bar Association
2 Liberty Avenue
Carlisle, PAl 70 13
Telephone No, (717) 249-3 I 66
By:
ich el ,Greco, Es U1re
Francis X, Riley, Esquire
Matthew M. Haar, Esquire
Atty, ID No, 78426, 74075 & 85688
Saul Ewing LLP
Penn National Insurance Plaza
2 North Second Street, 7'h Floor
Harrisburg, Pennsylvania 1710 I
(717) 257-7500
Attorneys for Plaintiff
12040'l112/22/05
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CERTIFICATE OF SERVICE
I hereby certify that on December 22, 2005, I served a true and correct copy of the
foregoing IMPORTANT NOTICE upon the following parties by first class mail, postage
prepaid:
Ada George
720 Franklin Square Drive
Chambersburg, P A 1720 I
Preferred Realty, LLC
d/b/a Exit Preferred Realty LLC
417 Phoenix Drive
Chambersburg, PA 17201
Jeffrey George
720 Franklin Square Drive
Chambersburg, P A 1720 I
Preferred Realty, LLC
d/b/a Exit Preferred Realty LLC
785 5th Avenue
Chambersburg, P A 1720 I
Ada George
Exit Preferred Realty LLC
785 5th A venue
Chambersburg, PAl 720 I
Jeffrey George
Exit Preferred Realty LLC
785 5th Avenue
Chambers burg, P A 1720 I
Jeffrey S. Evans, Esquire
2025 East Main Street
Waynesboro, P A 17268
Dated: December 22, 2005
120<109112122105
CERTIFICATE OF SERVICE
I hereby certify that on January 4, 2006, I caused a true and correct copy
of the foregoing Praecipe for Entry of Default Judgment to be served upon the following
parties by first class mail, postage prepaid:
Ada George
720 Franklin Square Drive
Chambersburg, P A 17201
Preferred Realty, LLC
d/b/a Exit Preferred Realty LLC
417 Phoenix Drive
Chambersburg, P A 17201
Jeffrey George
720 Franklin Square Drive
Chambers burg, P A 17201
Preferred Realty, LLC
d/b/a Exit Preferred Realty LLC
785 5th Avenue
Chambersburg, P A 17201
Ada George
Exit Preferred Realty LLC
785 5th Avenue
Chambersburg, P A 1720 I
Jeffrey George
Exit Preferred Realty LLC
785 5th Avenue
Chambers burg, P A 17201
Jeffrey S, Evans, Esquire
2025 East Main Street
Waynesboro, P A 17268
( i ]-co-' I / )
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Nailah 1. Rogers, Esqui,#
Dated: January 4, 2006
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MICHAEL R, GRECO, ESQUIRE
FRANCIS X. RILEY, ESQUIRE
MATTHEW M, HAAR, ESQUIRE
SAUL EWING LLP
Atty, ID No, 78426, 74075 & 85688
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
Attorneys for Plaintiff
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REALTOR, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs,
ADA GEORGE
720 Franklin Square Drive
Chambers burg, Pennsylvania 1720 I,
and
JEFFREY GEORGE
720 Franklin Square Drive
Chambers burg, Pennsylvania 1720 I,
and
PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
785 5th Avenue
Chambersburg, Pennsylvania 17201
Defendants,
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No,05-cv-6162
AFFIDAVIT OF SERVICE AS TO ALL DEFENDANTS
120642,11/4/06
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COMMONWEALTH OF PENNSYLVANIA
SS
COUNTY OF DAUPHIN
Before me, the undersigned Notary Public, personally appeared Michael D, Vishnesky,
Investigator for API Investigations of Marysville, Pennsylvania, to me known, who being duly
sworn according to law, deposes and says as follows:
\, I am adult individual, 42 years of age, and not a party, an employee of a party, or a
relative of a party to this action, The Complaint in this civil action includes a request for injunctive relief,
and consequently, I was retained by the plaintiff to serve original process pursuant to Pa, R, Civ, p,
400(b)(I),
2, On Thursday, December 1,2005 at 4: 15 p,m" I served a true and correct copy of the
Complaint in this civil action upon the Defendant, Preferred Realty, LLC d/b/a Exit Preferred Realty
("Preferred"), a Pennsylvania limited liability company at Preferred's office located at 785 5th Avenue,
Chambers burg, Pennsylvania 1720 I, by personally handing a copy of the Complaint to Jeffrey George,
who identified himself as the person in charge of Preferred's office.
3, On Thursday, December 1,2005 at 4: 15 p.m" I served a true and correct copy of the
Complaint in this civil action upon the Defendant, Jeffrey George at 785 5th A venue, Chambersburg,
Pennsylvania J 720 I, by personally handing a copy ofthe Complaint to Jeffrey George,
4. On Thursday, December I, 2005 at 4: I 5 p,m., I served a true and correct certified copy of
the Complaint in this civil action upon the Defendant, Ada George at her usual place of business, which is
located at 785 5th Avenue, Chambersburg, Pennsylvania 17201, by personally handing a copy of the
Complaint to her husband, Jeffrey George, who identified himself as the person in charge of the office,
12064211/4/06
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I declare under penalty of perjury that the foregoing statements are true and correct to the
best of my knowledge, information and belief.
(\U ) !v
ishnesky
Michael
Sworn and subscribed to
before me this 4th day of
January, 2006.
. '-/), \ . ,.. . j
Kl:1Th~ x0-lti C L
" otary Public
COMMONWEALTH OF PENNSYLVANIA
Notanal Sea!
Kathy L. SiUer. Notary Public
City Of Harrisburg, Dauphin County
My Commission Expires Mar. 23, 2008
Member. Pennsylvani"l ,(',:,,".'>:i8'inr Of Notaries
120642,11/4106
.
CERTIFICATE OF SERVICE
I hereby certify that on January 4, 2006, I served a true and correct copy of the
foregoing Affidavit of Service upon the following parties by first class mail, postage prepaid:
Ada George
720 Franklin Square Drive
Chambersburg, PAl 720 I
Preferred Realty, LLC
d/b/a Exit Preferred Realty LLC
417 Phoenix Drive
Chambersburg, P A 1720 I
Jeffrey George
720 Franklin Square Drive
Chambers burg, P A 1720 I
Preferred Realty, LLC
d/b/a Exit Preferred Realty LLC
785 5th Avenue
Chambers burg, P A 1720 I
Ada George
Exit Preferred Realty LLC
785 5th Avenue
Chambers burg, P A 1720 I
Jeffrey George
Exit Preferred Realty LLC
785 5th Avenue
Chambers burg, P A 1720 I
Jeffrey S, Evans, Esquire
2025 East Main Street
Waynesboro, P A 17268
. ~'._ __..1
C / )t;~l~~7C z /
Nailah 1. Rogers, ~Juire
Dated: January 4, 2006
120642]1/4/06
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA - CIVIL ACTION EQUITY
JACK GAUGHEN REALTON, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs,
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants,
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ORDER OF COURT
NOW this, L day of fdj , 2006, the within Petition having been
presented, read, considered, and ordered to be filed; it is hereby ordered that:
1, A rule is issued upon the Respondent to show cause why the Petitioner is
not entitled relief requested in the attached Petition;
2. The Rule shall be returnable within ~ ( ~) days from the date of
this Order
3. The Petition shall be decided under Pa.R.C.P. No. 206.7;
5. HI?:mHg ,llHl/er argument shall be held on the /sti day of
/Jza../lA'.A ,2006, at 1,' ,9() o'clock -/Z-.m" III Courtroom No. tj of the
Cumberland County Courthouse, Carlisle, Pennsylvania.
6, If items 4 and 5 above are left blank, depositions and/or argument and/or
hearing will be considered upon request of any party; and
7, Notice of the entry of this Order shall be provided to all parties by the
Petitioner.
By the Court,
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Plaintiff,
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No,OS-cv-6162
,
MICHAEL R. GRECO, ESQUIRE
FRANCIS X. RILEY, ESQUIRE
MA TTHEW M. HAAR, ESQUIRE
SAUL EWING LLP
Atty, ID Nos, 78426, 74075 and 85688
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, Pennsylvania 17 10 I
(717) 257-7500
Attorneys for Plaintiff
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYL VANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REALTOR, ERA
vs.
ADA GEORGE, et ai,
Defendants.
PLAINTIFF'S ANSWER AND NEW MATTER IN OPPOSITION
TO DEFENDANTS' PETITIONS TO OPEN DEFAULT JUDGMENT
Plaintiff Jack Gaughen Realtor, ERA ("Jack Gaughen") hereby files this
Answer and New Matter in Opposition to Defendants' Petitions to Open Default
Judgment tiled January 13, 2006, and in response to the Court's Order of February I,
2006, and in support thereof avers as follows:
]. Admitted,
2, Admitted,
3, Admitted,
4, Admitted,
12\26722/21/06
5, Admitted, By way of further response, a copy of the December 5, 2005
letter is attached hereto as Exhibit A,
6, Admitted. By way of further response, a copy of the December 19, 2005
letter is attached hereto as Exhibit B. Prior to December 19, 2005, Petitioners' counsel
spoke by telephone to Respondent's counsel on several occasions concerning this civil
action and the averments contained in the Complaint. During these two or three fairly
lengthy telephone discussions, Petitioners' counsel evinced his knowledge of Petitioners'
obligation to respond to the complaint because he stated, more than once, that Petitioners
intended to file preliminary objections,
7. Admitted. By way of further response, a copy of the "ten day notice" is
attached hereto as Exhibit C.
8, Denied. Plaintiff is without sufficient information to form a belief as to
the truth of the averments in paragraph 8, and such averments are therefore denied. By
way of further response, Plaintiffs were on notice as of December I, 2005 that they were
required to respond to the Complaint on or before December 21, 2005, regardless of
when they may have received the ten day notice, See paragraph 6 supra (describing
telephone discussions in which Petitioners' counsel acknowledged Petitioners' obligation
to respond to the Complaint),
9, Denied. Plaintiff is without sufficient information to form a belief as to
the truth of the averments regarding when defense counsel became aware of the ten day
notice, whether defense counsel contacted the Prothonotary}, or what the Prothonotary
I Paragraph 9 of the Petition states that "Respondent's counsel contacted the office of the Prothonotary of
Cumberland County and was advised that no judgment had yet been entered," (emphasis added), This
appears to be a typographical error, and it appears that Petitioners' meant to state that Petitioner's counsel
contacted the Prothonotary.
12126722(11/0<>
14, Denied as characterizations of a written document, the terms of which are
may have told defense counsel, and such averments are therefore denied, It is denied that
on January 4, 2006 defense counsel contacted plaintiff s counsel regarding whether a
default judgment had been entered, To the contrary, defense counsel did not contact
plaintiffs counsel until January 5, 2006, A copy of defense counsel's January 5, 2006
letter is attached hereto as Exhibit D.
] 0, Admitted in part and denied in part. It is admitted that the Preliminary
Objections attached to the Petition were filed on January 5, 2006, after a default judgment
had been entered. Plaintiff is without sufficient information to form a belief as to the
truth of the averment that the Preliminary Objections were prepared on January 5, 2006
(i,e" thirty-five (35) days after the Complaint was served), and such averments are
therefore denied,
II. Admitted,
12. Admitted in part and denied in part. It is admitted that a copy of the
Notice of Judgment is attached to the Petition, Plaintiff is without sufficient information
to form a belief as to the truth of the averment that Defendants and their counsel received
the notice on January 6, 2006, and such averment is therefore denied.
PETITION TO OPEN JUDGMENT
AND LEAVE TO PROCEED WITH PRELIMINARY OBJECTIONS
13, Plaintiff incorporates the averments of paragraphs I through 12,
self-evident.
15, Admitted in part and denied in part2 It is admitted that the Complaint
references some connections to Franklin County. It is denied that there are no
2 Paragraph 15 of the Petition refers to "Petitioner's Complaint." This appears to be a typographical error.
and it appears that Petitioners' meant to refer to Respondent's Complaint.
12126722121106
connections to Cumberland County. To the contrary, the Complaint alleges several
specific actions which occurred in Cumberland County, specifically:
(a) Mr. George's Independent Contractor Agreement with Plaintiff, which
forms the basis for certain of Plaintiff s claims, was delivered to and countersigned by
Plaintiff in Cumberland County, and therefore was formed in Cumberland County
(Compl. ~ 16);
(b) Prior to terminating his relationship with Plaintiff, Mr. George
misappropriated the listings for twenty properties located in Cumberland County (Compl.
~ 34 & Exh. E);
(c) After separating from Plaintiff, Mr. and Mrs, George placed their real
estate licenses with Exit Platinum Plus Realty, located in Cumberland County (Compl. ~
37); and
(d) Mr. George moved the misappropriated properties to Exit Platinum Plus
Realty, which is located in Cumberland County (Compl. ~ 38),
16, Admitted in part and denied in part. It is admitted that the Georges live in
Chambersburg, and 1hat some of their work is in Chambersburg. It is denied that the
Georges' work is confined to Chambersburg, To the contrary, the Georges engage in
business in other counties, including Cumberland County, as evidenced by the listing of
properties through Exit Platinum Plus Realty (Compl. ~ 38),
17, Admitted on information and belief.
18, Denied as characterizations of a written document, the tenus of which are
self-evident. By way of further response, Defendants' argument that the Uniform Trade
Secrets Act ("UTSA") expressly displaces any other cause of action related to the
121267.22121106
misappropriation of trade secrets is flawed. Defendants ignore the Jimitations on the
UTSA's displacement of common law claims, The UTSA states that only "conflicting"
law is displaced, See 12 Pa. C.S,A. S 5308(a). The UTSA does not displace "other civil
remedies that are not based upon a misappropriation of a trade secret." Id. (emphasis
added), In this regard, Petitioners ignore that Count IV of Plaintiffs Complaint is "not
based upon a misappropriation of a trade secret", but rather, it is a claim for "Conversion
of Confidential Business Information," In other words, Plaintiff s conversion claim is
stated in the alternative to Plaintiffs trade secret claim in the event the Court determines
that the information at issue does not constitute a trade secret. Courts around the country
have recognized that under these circumstances, conversion claims are not preempted by
the Uniform Trade Secrets Act. See~, Stone Castle Financial, Inc, v, Friedman,
Billings, Ramsey & Co" 191 F.Supp,2d 652, 659 (E,D. Va. 2002)(rejecting a motion to
dismiss on grounds of preemption under the Virginia UTSA and stating: "The plain
meaning of the statute, coupled with decisions interpreting similar preemption provisions
in the context of a motion to dismiss, make it apparent that unless it can be clearly
discerned that the information in question constitutes a trade secret, the Court cannot
dismiss alternative theories of relief as preempted by the VUTSA, As Defendants made
clear at oral argument, the parties very much dispute whether the confidential information
constitutes trade secrets,"), See also Charles Schwab & Co, v, Carter, No, 04 C 7071,
2005 WL 2369815, *4-*5 (N.D, Ill. Sept. 27, 2005) (rejecting motion to dismiss
conversion claim based upon preemption argument under the rIlinois UTSA and stating
that the defendant may have "acquired proprietary and confidential information that
could give rise to common Jaw liability, even if that information does not constitute a
12126711/11/(16
full-blown trade secret") (a copy of the Charles Schwab opinion is attached hereto as
Exhibit E); Powell Products v, Marks, 948 F. Supp. ]469, ]475 (0, Colo, ]996)
("Because plaintiff s claim also seeks recovery of the physical items stolen, including
blueprints and drawings, which would not be the subject of a misappropriation claim
under the UTSA, plaintiffs conversion claim is not entirely preempted,"); Micro Displav
Systems. ]nc, v, Axtel, 699 F, Supp, 202, 205 (D, Minn, ] 988) ("To the extent a cause of
action exists in the commercial area not dependent on trade secrets, that cause continues
to exists.") (emphasis in original); (Lucini Italia Co, v, Grappolini, No. 01 C 6405, 2003
WL ] 989605, *22 (N,D. Ill. Apr. 28, 2003) (a copy of the Lucini case is attached hereto
as Exhibit F),
] 9. Denied as characterizations of a written document, the terms of which are
self-evident.
20, Denied as characterizations of a written document, the terms of which are
self-evident.
21. Admitted in part and denied in part. ]t is admitted that Rule 237.3 does
not apply when the petitioner seeks to file preliminary objections after a default judgment
has been entered, See Rule 237,3 note, It is denied that Rule 237.3 provides that a
default judgment shall be opened when an answer is filed within ten days following the
entry of the judgment. To the contrary, the Ru]e provides that the court shall open the
judgment only "[i]f the petition is filed within ten days after the entry of the judgment on
the docket" and "if the proposed '" answer states a meritorious '" defense," Id,
(emphasis added),
22, Admitted In part and denied In part, It IS admitted only that the
12126722111/0(,
WHEREFORE, Plaintiff Jack Gaughen Realtor, ERA respectfully requests
Defendants filed Preliminary Objections the day after judgment had been entered, It is
denied that the Preliminary Objections are meritorious, To the contrary, and as alleged
more fully in the accompanying New Matter (set forth below), the Preliminary
Objections are meritless, Plaintiff is without sufficient information to form a belief as to
the truth of the remaining averments of paragraph 22, and such averments are therefore
denied, By way of further response, conspicuously absent from the Petition is anv
explanation from Defendants or their counsel as to why they did not respond to the
Complaint within the required twenty day period (or the fifteen days thereafter),
Defendants and their counsel have not articulated any reason why they were unable to
respond to the Complaint on or before December 21, 2005, Not only were defendants
served with the complaint on December I, but Defendants' counsel sent a letter to
Plaintiff's counsel on December 19, two days before a response to the Complaint was
due, As explained above in paragraph 6, Defendants' counsel acknowledged his
obligation to respond during multiple telephone discussions with Plaintiff's counsel prior
to December 19,2005, At no time did Defendants or their counsel ask for an extension
of time to respond, but instead they simply thumbed their nose at their duties, and they
should not be permitted to escape the consequences of their conduct.
that the Court deny the petition to open the default judgment and for leave to proceed
with preliminary objections.
PETITION TO OPEN JUDGMENT
PURSUANT TO P A,R.C.P. 237.3 AND FOR LEAVE TO FILE ANSWER
23, Plaintiff incorporates the averments of paragraphs I through 12,
24, Admitted in part and denied in part, It is admitted that an answer is
/212672212).'06
attached to the Petition, Plaintiff is without sufficient information to fonn a belief as to
the truth of the remaining averments, and such avennents are therefore denied.
25, Denied as a conclusion of law to which no response is required, To the
extent a response is required, it is denied that a meritorious defense is the only
requirement for defendants to satisfy to have the judgment opened, Further it is denied
that defendants have asserted a meritorious defense, To the contrary, as averred more
specifically in the following new matter, defendants' purported defenses are without
merit.
WHEREFORE, Plaintiff Jack Gaughen Realtor, ERA respectfully requests
that the Court deny the petition to open the default judgment and for leave to file an
answer.
NEW MATTER
26, Plaintiff incorporates the averments of paragraphs I through 25,
27, Defendants are required to satisfy the requirements of Schultz v, Erie
Insurance Exchange, 505 Pa, 90, 477 A.2d 471 (1984) in order for the judgment to be
opened and for them to be given permission to file a pleading other than an answer. See
Pa, R. Civ, p, 237.2 note, The requirements imposed by Schultz are:
(1) the petition has been promptly filed;
(2) a meritorious defense can be shown; and
(3) the failure to appear can be excused,
Id, at 93, 477 A.2d at 472 (emphasis in original),
28, The defendants' proposed preliminary objections are not meritorious, and
their failure to appear cannot be excused.
29, Defendants assert three categories of preliminary objections: Improper
12126722121/06
venue, insufficient specificity and a demurrer. None of these preliminary objections is
meritorious,
30. Defendants' preliminary objection that venue is improper in this county is
frivolous, and there is no good ground to support this objection, While some of the
conduct alleged in the Complaint took place in Franklin County, that is not dispositive of
whether venue is proper in Cumberland County, Venue is proper in Cumberland County
because it is "a county where a transaction or occurrence took place out of which the
cause of action arose," Pa, R, Civ, P. 21 79(a)(4),
31, Plaintiff alleged in the Complaint numerous contacts with Cumberland
County, including:
(a) Mr. George's Independent Contractor Agreement with Plaintiff, which
forms the basis for certain of Plaintiff's claims, was delivered to and countersigned by
Plaintiff in Cumberland County, and therefore was fonned in Cumberland County
(Compl. ~ 16);
(b) Prior to terminating his relationship with Plaintiff, Mr. George
misappropriated the listings for twenty properties located in Cumberland County (Compl.
~ 34 & Exh, E);
(c) After separating from Plaintiff, Mr. and Mrs, George placed their real
estate licenses with Exit Platinum Plus Realty, located in Cumberland County (Compl. ~
37); and
(d) Mr. George moved the misappropriated properties to Exit Platinum Plus
Realty, which is located in Cumberland County (Compl. ~ 38),
32, Several transactions and occurrences underlying the Complaint took place
!212b722!2IJ(lb
In Cumberland County, and Defendants' suggestion that venue IS improper here IS
without merit.
33, Defendants' allegation that the Complaint is insufficiently specific is
similarly flawed, The Complaint fully summarizes the material facts such that
Defendants can prepare their defense, and the Complaint is therefore sufficiently specific,
See Cull v. Cabot Corp" 61 Pa. D, & C.4th 343 (2001) (overruling objection based upon
insufficient specificity); Commonwealth ofPa, ex reI. Milk Marketing Bd. v, Sonnvbrook
Dairies, Inc" 29 Pa, Commw, 210, 214, 370 A,2d 765,768 (1977),
34, The Complaint, consisting of thirty pages and ninety-two paragraphs, is
not vague, This is clearly established by the fact that Defendants actually have drafted an
answer and at no point in their proposed answer do the Defendants claim that they are
unable to formulate a response,
35, Many of the alleged vagaries of the complaint are simply silly, For
example, Defendants acknowledge that Plaintiff alleges that Mr. George has violated
paragraphs 2, II and 2 1 of his Independent Contractor Agreement, but argue that
Plaintiff fails to "specify precisely what other provisions of the Independent Contractor
Agreement he has or is violating," See Proposed Preliminary Objections ~~ 27 & 29,
36, Many of the other alleged infirmities with the Complaint are flat-out
wrong and plainly disregard the black and white averments in the Complaint. For
example, Defendants allege that the "Complaint fails to specify any 'employee' of
Defendant that Mrs, George is alleged to have solicited," See Proposed Preliminary
Objections ~ 24, To the contrary, the Complaint specifically alleges that the Defendants
improperly solicited Tina Long, Sonja Boatman, Austin Kegerreis, Vickie Johnson, Rod
J1J]67.22J2J/06
Hocker, Christy Highlands, Kelly Setter, Joan Smith, Heather Stoner, Mike West, Sloane
Gillespie, Michelle Cordell, Susan Barlup, Jennifer Deverell, William Kopp and James
Sourbier. See Compl. ~ 30. It is unfathomable how the Complaint could be any more
specific as to the employees improperly solicited by Mrs, George,
37, Defendants' preliminary objections as to insufficient specificity are
baseless and appear to be filed for no purpose other than to improperly delay this
litigation,
38, Defendants' preliminary objection in the nature of a demurrer to Count IV
(Conversion of Confidential Business Information) lacks merit. Defendants' argument
that the Uniform Trade Secrets Act ("UTSA") expressly displaces any other cause of
action related to the misappropriation of trade secrets is flawed, Defendant's ignore the
limitations on the UrSA's displacement of common law claims. The UrSA states that
only "conflicting" law is displaced, See 12 Pa, C.SA S 5308(a), The UTSA does not
displace "other civil remedies that are not based upon a misappropriation of a trade
secret." (emphasis added), In this regard, Petitioners ignore that Count IV of Plaintiffs
Complaint is "not based upon a misappropriation of a trade secret", but rather, it is a
claim for "Conversion of Confidential Business Information," In other words, Plaintiffs
conversion claim is stated in the alternative to Plaintiffs trade secret claim in the event
the Court determines that the information at issue does not constitute a trade secret.
Courts around the country have recognized that under these circumstances, conversion
claims are not preempted by the Uniform rrade Secrets Act. See~, Stone Castle
Financial. Inc, v, Friedman. Billings, Ramsev & Co., 191 F,Supp,2d 652, 659 (E.D, Va,
2002)(rejecting a motion to dismiss on grounds of preemption under the Virginia UrSA
12126722/2]106
and stating: "The plain meaning of the statute, coupled with decisions interpreting similar
preemption provisions in the context of a motion to dismiss, make it apparent that unless
it can be clearly discerned that the information in question constitutes a trade secret, the
Court cannot dismiss alternative theories of relief as preempted by the VUTSA. As
Defendants made clear at oral argument, the parties very much dispute whether the
confidential information constitutes trade secrets."), See also Charles Schwab & Co, v,
Carter, No, 04 C 707], 2005 WL 23698]5, *4-*5 (N,D, Ill. Sept. 27, 2005) (rejecting
motion to dismiss conversion claim based upon preemption argument under the Illinois
UTSA and stating that the defendant may have "acquired proprietary and confidential
information that could give rise to common law liability, even if that information does
not constitute a full-blown trade secret") (a copy of the Charles Schwab opinion is
attached hereto as Exhibit E); Powell Products v, Marks, 948 F. Supp, 1469, 1475 (0,
Colo, 1996) ("Because plaintiff s claim also seeks recovery of the physical items stolen,
including blueprints and drawings, which would not be the subject of a misappropriation
claim under the UTSA, plaintiffs conversion claim is not entirely preempted,"); Micro
Display Systems. ]nc, v, Axtel, 699 F, Supp, 202, 205 (D. Minn, 1988) ("To the extent a
cause of action exists in the commercia] area not dependent on trade secrets, that cause
continues to exists,") (emphasis in original); (Lucini Italia Co, v. Grappolini, No, 01 C
6405, 2003 WL ] 989605. *22 (N,D. Ill, Apr, 28, 2003) (a copy of the Lucini case is
attached hereto as Exhibit F)..
39, The defendants have also failed to articulate any facts from which the
Court could conclude that their failure to respond can be excused,
40, Defendants were served with the Complaint on Thursday, December ],
I~ 126722/21/06
2005,
41, The Complaint contains a Notice to Defend which advised Defendants and
their counsel of their duty to respond within twenty days,
42. Defendants' response to the Complaint was due on Wednesday, December
21,2005,
43, Defendants' did not respond to the Complaint on or before December 21,
2005, In fact, on multiple occasions prior to December 19, 2005, Defendants' counsel
spoke by telephone with Plaintiffs counsel and acknowledged Defendants' obligation to
respond to the Complaint by stating that Defendants would be filing preliminary
objections,
44, Neither Defendants nor their counsel have articulated any reason that
prohibited them from filing a response to the Complaint between December I, 2005 and
December 21, 2005, Nor do they explain why they chose to wait until January 5, 2006 to
file their preliminary objections (except to suggest that Defendants' counsel decided to go
on vacation apparently without making any arrangements to deal with this lawsuit),
45, Defendants and their counsel were served with a "ten day notice" on
December 22,2005. See Exh, C.
46, At no time did Defendants' counsel seek an extension of time within
which to respond to the Complaint (despite the fact that he had the opportunity to do so
during multiple telephone discussions with Plaintiffs counsel),
47, Defendants state that their counsel did not become aware of the ten-day
notice until January 4, 2006 after he returned from vacation, but they have failed to
explain why they believed that they could simply ignore the deadline for answering the
121267~ 2i21/06
51. The only defenses asserted by defendants are laches and unclean hands,
neither of which is viable,
52. The defense of laches generally follows the relevant statute of limitations,
See Citv ofPhiladelohia v. Louis Labs..lnc" 201 Pa. Super. 16,19,189 A,2d 891, 893
(1963).
53,
The statute of limitations for tort claims is generally two years, and for
Complaint, which they clearly did know about, before their counsel left for vacation,
Moreover, Plaintiff had served document requests and interrogatories on Defendants
concurrent with the Complaint. The responses to these discovery requests were due no
later than January 3, 2006. Defendants also ignored the deadline to respond to the
discovery requests and did not seek an extension, Consequently, ignoring deadlines
appears to be the rule, and not the exception, for the Defendants,
48. Defendants have failed to present any facts from which the Court could
conclude that their failure to appear can be excused,
49, Defendants are required to satisfy the requirements of Pa. R, Civ, p,
237,3(b) in order to have the judgment opened and to have their answer accepted.
Specifically, in addition to filing their petition within ten days of the entry of judgment,
defendants must state a meritorious cause of action or defense,
50, The proposed answer attached to the petition does not contain a
meritorious cause of action or defense,
contractual claims generally four years.
54, The time from when Plaintiff was first alerted to Defendants' wrongful
conduct in June 2005 until when suit was commenced in November 2005 was
12126722/21.'06
approximately five months, which does not approach either of the applicable statutes of
limitations, and defendants' laches argument is without merit.
55, Further, laches is only applicable to equitable claims, and is simply
irrelevant to legal claims, See Beech v. Ragnar Benson, Inc., 402 Pa, Super. 449, 453,
587 A,2d 335, 337-338 (1991), Defendants' proposed defense therefore cannot be
meritorious as a matter of law in relationship to Plaintiffs legal claims.
56, To articulate the defense of unclean hands, Defendants were required to
plead that Jack Gaughen acted unfairly, fraudulently or deceitfully. See Terraciano v,
Commonwealth of Pa" Dep't of Trans" 562 Pa, 60, 69, 753 A,2d 233, 237-238 (2000),
Nothing in Defendants' proposed answer comes remotely close to satisfying this
standard,
57. Defendants have failed to identify any meritorious defense, and their
petition should therefore be denied,
WHEREFORE, Plaintiff Jack Gaughen respectfully requests that the
Court deny the petition to open the default judgment.
Respectfully submitted,
/i
Michael R. Greco, Es e
Francis X, Riley, Esquire
Matthew M, Haar, Esquire
Atty. ID Nos, 78426, 74075 and 85688
Saul Ewing LLP
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, Pennsylvania 1710 I
(717) 257-7500
Dated: February 21, 2006
Attorneysfor Plaintiff
12126722121/06
VERIFICATION
I, Matthew M. Haar, Esquire, hereby verify that I am authorized to execute
this verification on behalf of Plaintiff Jack Gaughen Realtor, ERA, that I have read the
foregoing document entitled Plaintiffs Answer And New Matter In Opposition To
Defendants' Petitions To Open Default Judgment and that the statements of fact therein
are true and correct to the best of my knowledge, information and belief. I make this
verification subject to the penalties of 18 Pa. C.S.A. 9 4904 relating to unsworn
falsification to authorities.
I
Dated: February 21, 2006
]2126722121/06
?l~
'. i -<-. fk./ f, 7te---
Matt ew . Haar, Esquire
CERTIFICATE OF SERVICE
I hereby certify that on February 21,2006, I caused a true and correct copy
of the foregoing document entitled Plaintiffs Answer And New Matter In Opposition To
Defendants' Petitions To Open Default Judgment to be served upon the following
counsel by first class mail, postage prepaid:
Jeffrey S. Evans, Esquire
2025 East Main Street
Waynesboro, P A 17268
Attorney/or D~rendanls
Dated: February 2],2006
12126722/2]/[)6
-
~h,0It F\
www.saul.com
SAUL
EWING
Michael R.Grcco
Phone (610) 251.5757
Fax: (610) 408-4413
Attorneys at Law
A Delaware LLP
mgrcco@silul.com
December 5, 2005
Via Facsimile (717-264-8540)
And United States Mail
Preferred Realty, LLc
Ada George
Jeffrey George
785 5th Avenue
Chambers burg, Pennsylvania] 720 I
Re: Preservation of Evidence and Demand for Assurances
Dear Mr. and Mrs. George:
This firm has been retained to represent Jack Gaughen Realtor, ERA ("JGR") in all
matters concerning your contractual, statutory and common law obligations to JGR. This letter
is directed to you in your individual capacity and in your capacity on behalf of Preferred Realty,
LLc ("Preferred"). As you know, JGR commenced litigation against you and Preferred in the
Pennsylvania Court of Common Pleas for Cumberland County. The purpose of this letter is to
remind you of your obligation to preserve evidence related to the claims asserted against you and
Preferred in the Lawsuit, and to request your assurance concerning the matters set forth below as
the Lawsuit proceeds.
Preservation of Evidence
The law is clear that parties to a lawsuit have a duty to preserve evidence which they
know or reasonably should know is relevant to the lawsuit. See Troup v. Tri-count Confinement
Svstems. Inc., 32 Pa. D. & cAth 52, 56 n.l (1996); Winters v. Textron, 187 F.R.D. 518, 520
(M.D. Pa. ] 999). Accordingly, JGR hereby demands that you, Preferred, and all other persons or
entities acting in concert with you and/or Preferred, take steps to ensure the preservation,
maintenance, and protection, of any and all evidence potentially related to the claims at issue in
the Lawsuit. This includes preserving potentially relevant documents, files, or data, whether
written or in an electronic format, in their present state, from destruction, modification, or
alteration. This applies to evidence concerning the allegations set forth in the Complaint and
documents responsive to the requests set forth in request for production of documents that were
served upon you.
Cheslerbrook Office. 1200 Liberty Ridge, Suite 200 . Wayne, PA 190&7-5569
Phone: (610) 251-5050 . Fax: (6] OJ 65] -5930
BALTIMORE CHESTFRBROOK HARRISBURG NEWARK PHILADELPHIA PRIJ'.:(ETON WASHINGTON WILMINGTON
b242R7.1
ADELA WA)l.E L1:o.1ITEDLlABIUTY PARTl"tRSHIP
Michael R. Greco
December 5, 2005
Page 2
Demand for Assurances
As set forth more fully in JGR's Complaint, JGR is concerned that you and Preferred
have violated, and will continue to violate JGR's contractual, statutory and common law rights.
Accordingly, demand is hereby made that you:
(I) Identify in writing all records and information in your possession, custody or control,
that you obtained as a result of your affiliation with JGR (the "JGR Property") and
immediately return to me as JGR's representative all such JGR Property. JGR further
requires that you confirm in writing that you have returned all such JGR Property;
(2) Identify in writing all listings diverted from JGR by you and/or anyone on behalf of
Preferred; and
(3) Commit in writing to refrain from further efforts to solicit, induce or otherwise
intluence JGR's Salespersons to terminate their affiliation with JGR.
This letter, along with the Complaint and discovery requests previously served upon you,
involve important legal issues. You are strongly urged to retain an attorney and to have your
attorney contact me. Your failure to comply with the requests set forth above will result in JGR
taking action to seek appropriate legal and equitable relief.
Very truly yours,
~t.r
6242871
.
-1Jr
/ c -s
\ I. I) ,1' -
,/ )(~'\ I V \
-----
ATTORNEY'
JEFFREY S. EVANS
December 19,2005
PARALEGAL:
KELLY V. HIGH
12~18-2005 04:38pm From-J EVANS/BUCHANAN
717 T65 0 IT2
T-568 P002/003 F-816
Law Offices
of
JEFFREY S. EVANS
2025 E:AST MAIN STREET
WAYNESBORO, PA 17268
(717) 762-1415
(717) 263-5001
Fax (717) 765-0172
vrww.ievans/aw.com
Michael Greco
Saul Ewing
1200 Liberty Ridge, Suite 200
Wayne, PA 19087-5569
Re: Preservation and Demand for Assurances
Dear Mr. Greco;
Pursuant to our conversation oflast week, I represent the Defendants in tile
lawsuit filed by Jack Gaughen Realtor in Cumberland County, Pennsylvania. While I
expect to file objections to the complaint in the near future, my clients are aware of their
obligation to preserve evidence relating to the subject matter of the complaint, to the
extent the averments are sufficient to allow them to identify those issues.
With respect to the demand for assurances, my clients are happy to return any
JGR materials or records that may have been inadvertently taken when they told to
immediately clear their possessions from the office. As yet, they have not discovered any
of your client's records or property. Lastly define information, Mr. and Mrs. George
have been rcaltors for in excess of twenty years, a small portion of which was spent
associated with Jack Gaughen Realtor. Second, as yet to the best of my clients'
knowledge, there have been no listings diverted from your client. Third, my clients have
not engaged in the active recruiting of any salespersons associated with your client, nor
do they intend to actively initiare solicitation regarding any such perSOns.
Finally, bc advised that my clients intend to defend this suil vigorously and will
seck recompense from your client and James Grandon personally, who has engaged in a
course of conduct designed to harass and intimidate particularly Aea George since she
resignee her position with Jack Gaughen Realtor, through a series of phone calls that
were threatening profanity laced tirades.
It-19-2005 04:38pm From-J EVANS/BUCHANAN
717 165 0112
T-568 P.003/003 F-816
December 19, 2005
Page 2
Should you have allY questions or concerns, please feel free to contact me.
JSE: kvh
Via: Fax and Mail
cc: Mr. and Mrs. Jeffrey George
Preferred Realty LLC
,
(
~i'J,bJ L
MICHAEL R. GRECO, ESQUIRE
FRANCIS X. RILEY, ESQUIRE
MATTHEW M. HAAR, ESQUIRE
SAUL EWING LLP
Atty. ID No. 78426, 74075 & 85688
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, Pennsylvania 17101
(7 I 7) 257-7500
Attorneys for Plaintiff
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REAL TOR, ERA
3915 Market Street
Camp Hill, Pennsylvania 170 I 1,
)
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)
No.05-cv-6l62
Plaintiff,
vs.
ADA GEORGE
720 Franklin Square Drive
chambersburg, Pennsylvania 1720 I,
and
JEFFREY GEORGE
720 Franklin Square Drive
chambersburg, Pennsylvania 17201,
and
PREFERRED REALTY, LLc
d/b/a EXIT PREFERRED REALTY LLc
4 I 7 Phoenix Drive
Chambers burg, Pennsylvania 1720 I
Defendants.
120409.112/22/05
To: Ada George
720 Franklin Square Drive
chambersburg, PAl 720 I
Preferred Realty, LLc
d/b/a Exit Preferred Realty LLc
417 Phoenix Drive
chambersburg, PA 17201
Jeffrey George
720 Franklin Square Drive
chambersburg, PAl 720 I
Preferred Realty, LLc
d/b/a Exit Preferred Realty LLc
785 5th Avenue
Chambers burg, P A 1720 I
Ada George
Exit Preferred Realty LLc
785 5th Avenue
Chambers burg, PAl 720 I
Jeffrey George
Exit Preferred Realty LLc
785 5th Avenue
chambersburg, PA 17201
Jeffrey S. Evans, Esquire
2025 East Main Street
Waynesboro, P A 17268
Date of Notice: December 22,2005
IMPORT ANT NOTICE
YOU ARE IN DEF AUL T BECAUSE YOU HAVE FAILED TO ENTER A
WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING
WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH
AGAINST YOU. UNLESS YOU ACT WITHIN TEN DAYS FROM THE DATE OF THIS
NOTICE, A JUDGMENT MAYBE ENTERED AGAINST YOU WITHOUT A HEARING
AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS.
YOU SHOULD TAKE THIS PAPER TO YOUR LA WYER 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.
120409112/22/05
-2-
120409.]12/22105
-3-
J
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 TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE.
Cumberland County Bar Association
2 Liberty Avenue
Carlisle, PA 17013
Telephone No. (717) 249-3166
/f;/
",/-1 ~ .
By: . /"
Michael R. Greco, Esquire
Francis X. Riley, Esquire
Matthew M. Haar, Esquire
Atty. ID No. 78426, 74075 & 85688
Saul Ewing LLP
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
Attorneys for Plaintiff
.- /1
/~jl;/ /,
<n/j . 'dt{..~
Matthew M. Haar, Esquire
CERTIFICATE OF SERVICE
I hereby certify that on December 22,2005, ] served a true and correct copy of the
foregoing IMPORTANT NOTICE upon the following parties by first class mail, postage
prepaid:
Ada George
720 Franklin Square Drive
chambersburg, PA 17201
Preferred Realty, LLc
d/b/a Exit Preferred Realty LLc
4 I 7 Phoenix Drive
Chambersburg, PA 17201
Jeffrey George
720 Franklin Square Drive
chambersburg, PAl 720 I
Preferred Realty, LLc
d/b/a Exit Preferred Realty LLc
785 5th Avenue
Chambers burg, PAl 720 1
Ada George
Exit Preferred Realty LLc
785 5th Avenue
chambersburg, P A 1720 I
Jeffrey George
Exit Preferred Realty LLc
785 5th Avenue
chambersburg, PA 17201
Jeffrey S. Evans, Esquire
2025 East Main Street
Waynesboro, PA 17268
Dated: December 22, 2005
12040\1112/22/05
D
f:- )(1,,'" t D
01-05-2006 04:24pm From-J EVANSIBL AN
TIT 765 0172
T-712 P002
Law offices
of
JEFFREY S. EVANS
2025 EAST MAIN STREET
WAYNESBORO, PA 17268
(717) 762-1415
(717) 263-5001
FaX(717)76~172
www.ievanslaw.com
ATI'ORNEY,
JEFFREY S. EVANS
January 5, 2006
PARALEGAL:
KELLY V. HIGH
Michael Greco, Esquire
Saul Ewing
1200 Liberty Ridge, Suite 200
Wayne,PA 19087-5569
Re: Jack Gaughen v. Ada George et aL
Cumberland Cry c.c.P. No. 2005 -
Dear Mr. Greco;
Please find enclosed herewith a true and attested copy of Defendants' Preliminary
Objections to Plaintiffs' Complaint, filed January 5, 2006. At the time of the filing no
praecipe for default judgment had been entered.
I will provide you with copies of our responses to your discovery requests on or
before Tuesday, January 10, 2006.
Should you have any questions or concerns, please feel free to contact me.
JSE: kvh
Via: Fax and Mail
cc: Mr. and Mrs. Jeffrey George
Preferred Realty LLC
F-075
E
f/J'1 LJ)t C
\J\kst!avv.
Slip Copy
Slip Copy, 2005 WL 2369815 (N.D.IlI.)
(Cite as: Slip Copy)
H
Briefs and Other Related Documents
Only the Westlaw citation is currently available.
United States District Court,N.D. Illinois, Eastern
Division.
CHARLES SCHW AB & CO., INC., Plaintiff,
v.
Brian D. CARTER, Acorn Advisory Management,
L.L.C., Acorn Advisory Capital, L.P., Delphi
Financial Group, Inc., Delphi Capital Management,
Inc., and Robert Rosenkranz, Defendants.
No. 04 C 707\.
Sept. 27, 2005.
Eric D. Brandfonbrener, Darrell J. Graham, Jonathan
R. Buck, Perkins Coie LLC. Chicago, IL, for
Plaintiff.
Peter Vincent Baugher, Anna S. Eisner, Arthur J.
How.t, Schopf & Weiss, Paul R. Garcia, Kevin S.
Ueland, Lisa M. Holubar, Michelle A.H. Francis,
Kirkland & Ellis LLP, Chicago, IL, for Defendants.
MEMORANDUM OPINION AND ORDER
ST. EVE, J.
*1 In its initial complaint, Plaintiff Charles Schwab
& Co., Inc. ("Schwab") brought suit against
Defendants Brian D. Carter ("Carter"), Acorn
Advisory Management, L.L.C., and Acorn Advisory
Capital, L.P. (collectively, the "Original
Defendants") for incidents surrounding Carter's
resignation from Schwab and subsequent
employment with one of the Acorn entities. '"
Schwab maintained that Carter and Acorn were liable
for misappropriation of Schwab's trade secrets (Count
I), conversion (Count Il), and violation of the
Computer Fraud and Abuse Act (codified at 18
Ij.S.C. ~ 1030) (the "CFAA") (Count VI). Schwab
further alleged that Carter was liable for breach of
contract (Count IV) and breach of fiduciary duty
(Count III) and that Acorn was liable for aiding and
abetting Carter's breach of fiduciary duty (Caunt V).
FN I. The Complaint does not allege which
one of the Acorn entities hired Carter, but
for ease of reference, the Court will refer to
the Acorn entities together as '''Acorn.''
Page I
Schwab subsequently added other parties to this suit.
Specifically, Schwab (after receiving leave of court)
filed a Third Amended Complaint (the "Complaint")
suing the Original Defendants and adding to the suit
Acorn Partners, L.P., Delphi Financial Group. Inc.,
Delphi Capital Management, Inc., and Robert
Rosenkranz ("Rosenkranz") (collectively, the "New
Defendants"). Schwab added the New Defendants to
Counts I, Il, V, and VI. In addition, Schwab added a
claim of unjust enrichment (Count VII) against all
Defendants.
Two motions currently are before the Court. The
New Defendants filed a motion to dismiss Counts II,
Ill, V, VI (in part), and VI! (the "Motion to Dismiss")
and a motion for summary judgment on Count I (the
"Summary Judgment Motion") The Original
Defendants have joined in the New Defendants'
Summary Judgment Motion IN2 and have further
requested to join in the New Defendants' Motion to
Dismiss pursuant to Federal Rule of Civil Procedure
J1ffl (despite having previously tiled their own
motion under Rule 12(b)(6)). '" For the reasons
below. the Court denies both Motions.
FN2. On August 2, 2005, the Court granted
the Original Defendants' motion to join in
the New Defendants' Summary Judgment
Motion. (R. 96-1: Order of Aug. 2. 2005.)
FN3. Because Federal Rule of Civil
Procedure 12( c) allows a party to move for
judgment on the pleadings "[aJfter the
pleadings are closed but within such time as
not to delay the trial" the Court will allow
the Original Defendants to join the New
Defendants' motion to dismiss. See
Fed.R.Civ.P. 12(c): see also North Indiana
Gun & Outdoor ShOH'S. Inc. v. City otSoUlh
Bend. 163 F3d 449, 452 (7,h Cir.1998)
(under Rule 12(c) a court applies the same
standard that applies to a Rule 12(b)(6)
motion to dismiss). Accordingly. the Court
will refer to the Original Defendants and the
New Defendants collectively as
"Defendants." Yet because many of
Defendants' grounds for dismissal do not
pertain to Carter the term "Defendants" as
used herein will not refer to Carter unless
the Court so indicates.
<1) 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
Slip Copy
Slip Copy, 2005 WL 2369815 (N.DJI!.)
(Cite as: Slip Copy)
ANAL YSIS
1. The Motion to Dismiss
A. Legal Standard
Defendants' motion to dismiss is based on Federal
Rule of Civil Procedure 12(b)(6). A Rule 12(b)(6)
motion tests the sufficiency of a complaint. It is not
designed to resolve the case on the merits. Johnson v.
Rivera. 272 F.3d 519. 520-21 (7'h Cir.2001). When
determining whether to grant a 12(b)(6) motion to
dismiss, a court must accept all factual allegations in
the complaint as true. Jallf! v. A.M. Miller & Assocs..
122 F.3d 480. 483 (7'h Cir.1997). A court must also
draw all reasonable inferences in the plaintiffs favor.
Id A court should dismiss a complaint under Rule
12(b)(6) only if "it is clear that no relief could be
granted under any set of facts that could be proved
consistent with the allegations." Hisholl v. Kille &
Soauldine. 467 U.S. 69. 73.104 S.C!. 2229. 2232.81
L.Ed.2d 59 (1984).
B. Facts
For purposes of deciding Defendants' Motion to
Dismiss, the Court accepts the following allegations
as true.
l. The Parties
*2 Schwab is a California corporation with its
principal place of business in San Francisco,
California. (R. 69-1; P1.'s Third Am. Comp!. at ~ 17.)
Defendant Brian Carter was formerly employed by
Schwab and currently resides in Tinley Park, lIlinois.
(Id at ~ ~ I, 18.) Defendant Acorn Advisory
Management. L.L.c., is a limited liability company
formed in Delaware with its principal place of
business in New York, New York. (Id at ~ 19.)
Defendant Acorn Advisory Capital, L.P., is a limited
partnership formed in Delaware with its principal
place of business in New York, New York. (Jd at ~
20.) Defendant Acorn Partners, L.P., is a limited
partnership formed in Delaware with its principal
place of business in New York. New York. (Id at ~
21.) Defendant Delphi Financial Group, Inc. is a
Delaware corporation with its principal place of
business in New York, New York. (Id at ~ 23.)
Defendant Delphi Capital Management, Inc. is a
Page 2
Delaware corporation with its principal place of
business in New York, New York. (Jd at ~ 22.)
Defendant Robert Rosenkranz is a New York resident
and has an ownership interest in each of the company
defendants. (Id at ~ ~ 24,25.) ,."
FN4. In their Local Rule 56.1 statements,
the parties concede that the Complaint
accurately identifies the parties. (R. 99.1;
Defs.' Stmt. of Mat. Facts in Supp. of Its
Mot. for Summ. J. ("Defs.' SMF") at ~ ~ 1-
8.)
2. The Events Surrounding Carter's Departure
Prior to November I, 2004, Schwab, a full service
investment and securities firm, maintained a business
division named the Schwab Soundview Capital
Markets' Investment Analytics Division ("IA"). (Id.
FN5
at ~ ~ 1-2, 17.) -'- Through lA, Schwab generated
and maintained substantial amounts of confidential
information, including proprietary investment
research strategies and analytical tools. (Jd at ~ 30.)
IA provided analytical research-derived from twelve
analytical models (the "Models").to approximately
100 institutional clients (including Defendants)
nationwide. (Id at ~ 2.) Schwab kept the Models
confidential and did not disclose the Models to IA
customers or other individuals outside of Schwab.
(Id ~ ~ 2, 30.) To protect the confidentiality of the
Models, Schwab instituted certain policies and
precautions. (Id. at ~ 32.) For instance, Schwab
maintained security at all of its offices, restricted
access to confidential information on a need-ta-know
basis, and used computer pass codes. (Id.) Schwab
also required its employees, including Carter, to
execute a confidentiality agreement which prohibited
the employees from disclosing Schwab's
"Confidential Information." (Id at ~ ~ 33.37.)
FN5. The facts elicited during discovery
indicate that Schwab acquired lA's
predecessor, Chicago Investment Analytics,
in 2000 for $20 million. (R. 115- I: PI.'s
Stmt. of Additional Material Facts ("PI.'s
SAMF") at ~ 17.)
Carter worked in the fA division as the Director of
Information Technology. (Id at ~ 3.) Carter's
position allowed him to access the fA division's
entire computer information network, including the
Models and customer information. (Id at ~ 39.)
Carter did not develop the IA Models and did not
<<) 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
Slip Copy
Slip Copy, 2005 WL 2369815 (N.D.I1I.)
(Cite as: Slip Copy)
provide any of the ongoing analytical research used
to maintain the Models. (Id at ~ 3.)
In September 2004, Schwab announced that it
intended to close lA, effective November I, 2004.
(ld at ~ 4.) Schwab's IA division, however,
continued to provide research to its institutional
clients through the end of January 2005. (Id) In
connection with lA's closing, Schwab offered its IA
employees severance packages or employment within
other areas of Schwab. (Id)
*3 On October I, 2004, Acorn made a written offer
to Schwab to acquire lA, proposing to acquire all
assets necessary to operate the Models (including all
of lA's intellectual property associated with the
Models) and to hire six IA employees including
Carter and several of lA's analysts. (Id. at ~ 5.)
Schwab rejected Acorn's offer. (ld. at ~ 6.)
According to Schwab. Acorn's proposed
consideration was inadequate, and Acorn's offer did
not protect Schwab's brand and continuing business,
in particular Schwab Equity Ratings, the investment
research offered to Schwab's retail client base. (Id.)
Even though the model used by Schwab to generate
the Schwab Equity Ratings "was built from scratch"
in 2002, it shares a "brand" with Schwab's IA
Models. (Id.) As Schwab sees it, if Schwab sold lA's
intellectual property without appropriate controls and
if a Schwab competitor then acquired the Models, the
brand, reputation and value of the Schwab Equity
Ratings would be diluted and harmed. (Id.) Schwab
thus decided to retain lA's confidential property,
including the Models. (Id.)
On Friday, October IS, 2004, after Schwab had
rejected Acorn's offer, Rosenkranz, on behalf of
Acorn, made offers to employ Carter and several of
lA's analysts. (Jd. at ~ 7.) By October 18, 2004, all
IA analysts had rejected Acorn's employment offers.
(Jd.) Carter, however, accepted Rosenkranz's offer.
(!dat~ 8-13.)
On Monday, October 18, 2004, in preparation for
joining Acorn and at Acorn's direction, Carter e-
mailed confidential information to Acorn relating to
certain of the "outside data sources" used in lA's
Models. (ld. at ~ 8.) In addition, Carter's e-mail
attached documents that would facilitate Acorn's
access to an information database licensed by
Schwab and used in connection with the Models. (Id.
at ~ 44.) Schwab's records also indicate that Carter
accessed and copied huge volumes of Schwab's
computer information (approximately 15,000
computer files in a single day) during the previous
Page 3
weekend. (Id at ~ 8.) At that time, Carter had access
to the entire information network of the IA division,
but Carter was only authorized to access the
information network insofar as it was necessary for
him to perform his job duties. (Jd. at ~ 39.)
Shortly before copying this information, Carter
acquired a laptop (it was either Carter's or Acorn's)
containing a high-speed DVD burner. (Jd. at ~ ~ 9,
45.) In addition, Carter previously had infonned his
colleagues at IA that he planned to copy and keep
lA's Models. (Jd at ~ 10.) Carter further suggested
that he and a group of IA employees could take the
Models and open their own business based on them.
(Jd) When a subordinate IA employee told Carter
that such conduct was illegal, Carter opined that it
was not because Schwab was closing IA. (Id.) On
October 22, 2004, Carter resigned without notice and
thereafter joined Acorn (which had paid Carter a
substantial amount to bring with him the IA
information that he had copied). (ld at 11 ~ 1, II, 78.)
Had he remained at Schwab for another week, Carter
would have received a severance package. (ld at ~
Il.)
C. Defendants' Purported Grounds for Dismissal
*4 The Court now turns to Defendants' asserted
grounds for dismissal. Defendants move to dismiss
on four grounds: (1) that the Illinois Trade Secret Act
("ITS A") preempts Schwab's common law causes of
action (Counts Il, Ill, V, and VII); (2) that, as a
matter of law, the CF AA (Count VI) does not allow
Schwab to pursue an aiding and abetting theory
against Defendants: (3) that Schwab's claim under
CFAA Section 1030(a)(2)(A) (Count VI) fails against
all Defendants (including Carter) because Carter did
not access a "financial record" from a "financial
institution;" and (4) that Schwab's claim under CFAA
Section 1030(a)(2)(C) (Count VI) fails because
Carter's alleged unauthorized access of Schwab's
computers did not involve "an interstate or foreign
communication" as required by that statutory
subsection. The Court will address each argument in
turn.
I. Preemption Under the Illinois Trade Secret Act
Defendants contend that the plain language of the
Illinois Trade Secret Act ("ITSA") preempts
Schwab's common law causes of action (i. e" Counts
Il, III, V, and VIl). Even though Schwab presses a
number of common law theories aside from its claim
I(:) 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
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under the ITSA, Defendants assert that the ITSA's
preemption provision operates nonetheless because
trade secret misappropriation is "undeniably at the
heart of this litigation." The COUl1 finds Defendants'
argument unavailing.
The preemption provision of the ITSA FN6 controls
the Court's determination of this issue. That provision
states:
FN6. As discussed below, to state a claim
for trade secret misappropriation under the
ITSA, a plaintiff must establish that it had:
(1) a trade secret, (2) that the defendant
misappropriated and (3) used for business
purposes. See Do It Best Curv, V. Passoorf
Software. Inc. No. 0 I C 7674. 2004 WL
1660814. *10 (N.D.I11. Julv 23.2004); PRO-
Schull" In!'l. Inc. v. Kirix Corv.. No. 03 C
1867, 2003 WL 22232771. *5 (N.D.III.
Seo.22. 2003). The ITS A further defines the
term "trade secret" as "mean [iog]
infonnation, including but not limited to,
technical or non-technical data, a formula,
pattern, compilation, program, device,
method, technique. drawing, process,
financial data, or list of actual or potential
customers or suppliers, that: (I) is
sufficiently secret to derive economic value,
actual or potential, from not being generally
known to other persons who can obtain
economic value from its disclosure or use~
and (2) is the subject of efforts that are
reasonable under the circumstances to
maintain its secrecy or confidentiality." 760
ILCS I 065/2( d).
(a) Except as provided in subsection (b), [Illinois
Trade Secret] Act is intended to displace conflicting
tort, restitutionary, unfair competition, and other laws
of this State providing civil remedies for
misappropriation of a trade secret.
(b) This Act does not affect: (I) contractual remedies,
whether or not based upon misappropriation of a
trade secret [or] (2) other civil remedies that are
not based upon misappropriation of a trade secret ...
765 ILCS 1065/8. By its plain terms, the ITSA
preempts only conjlicling laws that provide remedies
for misappropriation of a trade secret. The ITSA
expressly allows all other claims that are not based
upon trade secret misappropriation. See Lucini /tu/ia
Co. v. GrclPIJohni. No. 0 I C 6405. 2003 WL
1989605. *22 (ND.II1. Aor.28. 2003) ("[i]nterpreting
Page 4
[the] language [of the preemption provision], courts
have determined that the ITSA is the exclusive
remedy for misappropriation of trade secrets, but it
does not affect common law claims based on other
theories" (citing Aulomed Tech.. Inc. v. Eller 160
F.Supp.2d 915, 922 (N.D.1I1.2001)).
Accordingly, when considering whether the ITSA
preempts a separate claim, a court must determine
whether that separate claim "seek[s] recovery for
wrongs beyond the mere misappropriation."
EarlhDweller. Lid. v. ROlhnaeel. No. 93 C 3790.
1993 WL 487546. *7 (N.D.1I1. Nov.22. 1993)
(denying motion to dismiss because the ITSA did not
preempt plaintiffs common law claims of fraud and
breach of fiduciary duty even though those claims
were related to plaintiffs trade secret claim). If such
is the case, then a court must deny a motion to
dismiss because "claims based on something more
than the trade secret misappropriation are not
preempted." Lucini haha. 2003 WL 1989605 at *22
(citing Thomas & BeTts COrr>. v. Pandt/it Com. 108
F.Suon.2d 968, 971 (N.D.1I1.2000)): Combined
Metals of ChicaQo Ltd. P'shiIJ v. A irlek. Inc. 985
F.Supp. 827. 830 (N.D.1I1.1997) (denying motion to
dismiss because if the items at issue "fail to qualifY
as a trade secret. how could the breach of fiduciary
duty count be preempted under the ITSA? Again, the
ITSA preempts only counts premised on the
misappropriation of a trade secret. Thus, if the [items
at issue are] not a trade secret or secrets, the ITSA
preemption provision is inapplicable."): see also Web
Comm. Grmm v. Gatewav lOOO, Inc., 889 ~
316. 321 (N.DIII.19951 (cited by Defendants but
stating only that the ITS A preempted an unjust
enrichment claim to the extent the plaintiff based that
claim on an alleged misappropriation of a trade
secret); cf Learninf! Curve Tovs, L.P. v. Plavwood
Tol's. Inc.. No. 94 C 6884. 1999 WL 529572. *3
(N.D.1I1. July 20. 1999) (granting summary judgment
motion on preemption grounds because "the
operative facts [of non.ITSA claims] are arguably
cognizable under the ITSA").
*5 Drawing all reasonable inferences from the
allegations in Plaintiffs favor, Schwab's Complaint
survives Defendants' Motion to Dismiss, Schwab
alleges that, just prior to resigning, Carter copied
15,000 computer files from Schwab's computer
network. (R. 69.1: PI.'s Third Am. Compl. at 11 8.)
The Complaint further alleges that Carter e-mailed
confidential information to Acorn relating to certain
of the outside data sources used in lA's models, (id)
and that Carter copied and removed confidential
information from Schwab's offices. (ld at ~ 47.)
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Taken together, it is reasonable to infer that within
the downloaded files, the e-mailed information, and
other information removed from Schwab's officel
Carter acquired proprietary and confidential
information that could give rise to common law
liability, even if that information does not constitute a
full-blown trade secret. See. e.g. Bardev v.
Lumbermens Mutual Cas. Co.. 100 F.Supp.2d 879.
884 (N.D.l11.2000) (denying motion to dismiss
common law misappropriation and unfair competion
claims because the ITSA preemption provision did
not preclude alternative assertion that stolen business
plan was not actually a trade secret). At the motion to
dismiss stage, these allegations thus are sufficient to
allow Schwab to go forward with its common law
claims.
2. The Computer Fraud and Abuse Act
a. Vicarious Liability
Defendants next contend that, as a matter of law, they
cannot be liable under the CF AA. Specifically,
Defendants argue that Schwab's Complaint
essentially seeks relief against them based upon an
aiding and abetting theory of liability-a theory that
allegedly conflicts with the CF AA's civil suit
provision. Schwab counters by asserting that it is not
pursuing an aiding and abetting theory, but rather the
theory that Defendants are vicariously liable as
principals for the conduct of Carter, their agent. FN'
Given the presumptions in play at the motion to
dismiss stage, the Court concludes that the Complaint
states a claim upon which relief may be granted.
FN7. In reply, Defendants argue that by
repeatedly using the phrase "support and
encouragement" -a phrase that Defendants
contend is, by definition, synonymous with
"aiding and abetting"-Schwab can maintain
only a theory of aiding and abetting and is
foreclosed from pursuing a theory of
vicarious liability based on Defendants'
alleged principal/agent relationship with
Carter. (R. 119-1: Defs.' Reply Br. in
Support of Summ. J. at 4-5.) Defendants'
argument is misplaced. Seventh Circuit
authority makes clear that Federal Rule of
Civil Procedure 8 does not require a plaintiff
to accurately plead a legal theory, or even
plead a legal theory at all. Bar/holet v.
Reishauer A. G. (Zurich). 953 F.2d 1073.
Page 5
1078 (7'" Cir.1992) (a "complaint need not
identify a legal theory, and specifying an
incorrect theory is not fatal"-"details of both
fact and law come later, in other
documents"); La Porte COllnt)! Revublican
Cent. Comm. v. Board ofComm'rs o(COlmlv
of La Porte. 43 F.3d 1126. 1129 (7'"
Cir.1994) ("Just as a complaint need not
plead facts, however, it also need not plead
law, and it is not tied to one legal theory.").
Rather, at the motion to dismiss stage "a
court should ask whether relief is possible
under any set of facts that could be
established consistent with the allegations."
Barthole!. 953 F.2d at 1078. Indeed. the
Seventh Circuit "insist[s] that a complaint
not be dismissed unless no relief may be
granted 'under any set of facts that could be
proved consistent with the allegations." ,
Hrubec v. National R.R. Passen~er ('01'0..
981 F.2d 962. 963 (7'" Cir.1992) (quoting
Hishon v. KiM & Svaldinz 467 U.S. 69. 73,
104 S.Ct. 2229. 2232. 81 L.Ed.2d 59 (J 984))
(emphasis original). Thus, notwithstanding
Defendants' contention that the Complaint
boxes in Schwab's legal theory, Schwab can
pursue its CF AA claim against Defendants
as long as the Complaint in fact contains
allegations upon which relief is possible
under the Act. In addition, because Schwab
has conceded that it is not pursuing an
aiding and abetting theory, the Court will
not determine the merits of Defendants'
argument that such a theory is unavailable.
In detennining whether Schwab can establish liability
under the CF AA against Defendants-parties who
themselves have not directly violated that statute's
provisions-the Court first looks to the language of the
statute. UnUed Slates v. /Hiscellaneous Firearms
txolosives, Destructive Devices and Ammunitions.
376 F.3d 709, 712 (7'" Cir.2004) ("The cardinal rule
of statutory interpretation is that courts must first
look to the language of the statute and assume that its
plain meaning accurately expresses the legislative
purpose" (quotation and citation omitted)). "Where
the meaning of a statute is unambiguous, our sole
task is to apply it straightforwardly to the facts at
issue without referring to legislative history or other
devices." United States v. Jones. 372 F.3d 910. 913 n.
:? (7'" Cir.2004). Yet a court may assume that "when
Congress creates a tort action, it legislates against a
legal background of ordinary tort-related vicarious
liability rules and consequently intends its legislation
to incorporate those rules." Meve!' v. Holley 537 U.S.
<Q 2006 Thomson/West. No Claim to Orig. U.S. Gov!. Works.
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Slip Copy, 2005 WI. 23698] 5 (N.D.IIL)
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280. 285. 123 S.C!. 824. 828-29. 154 L.Ed.2d 753
(2003) (applying common law principle of vicarious
liability to Fair Housing Act claim notwithstanding
the fact that the statute "says nothing about vicarious
liability" because "[i]t is well established that
traditional vicarious liability rules ordinarily make
principals or employers vicariously liable for acts of
their agents or employees in the scope of their
authority or employment"). '" Any presumption of
vicarious liability, however, cannot apply when doing
so would conflict with clear congressional intent. See
Liquid Air Com v. RMers. 834 F.2d 1297. 1306 (7'h
Cir.1987) ("Vicarious liability, however, has only
limited application to civil RICO to avoid holding
vicariously liable a corporation that was the victim of
a RICO violation. To the extent that agency rules
would require holding a legitimate, infiltrated
business vicariously liable, the rules are at odds with
the clear congressional intent to protect such
legitimate businesses.").
FN8. In support of their argument that
Schwab cannot pursue liability under an
aiding and abetting theory, Defendants rely
heavily on the Supreme Court's decision in
Cenlral Bank or Denver. N.A. v. Firsl
Interstate Bank of Denver. N.A.. 511 U.S.
164, 181-82. 114 S.Ct. 1439, 1450-51. 128
L.Ed.2d 119 (1994). As noted above, the
Court is not reaching that argument, but, in
any event, Cenlral Bank does not foreclose
the possibility of establishing vicarious
liability under an agency theory. See Zurich
Capital !vlarkets Inc. v. COf!./ianese, 332
F.SuPP.2d 1087. 1/06 (N.D.!1l.2004).
*6 The CF AA allows civil actions against:
(a) Whoever ... (2) intentionally accesses a computer
without authorization or exceeds authorized access,
and thereby obtains (A) information contained in a
financial record of a financial institution ... [or] (e)
information from any protected computer if the
conduct involved an interstate or foreign
communication ...
18 U.S.C. ~ 1030(a)(2) FN9 A plaintiff may
"maintain a civil action against the violator," if the
plaintiff "suffers damage or loss by reason of a
violation of this section...." 18 U.S.C. ~ 1030(g); see
also Charies Schwab & Co. v. CarieI'. No. 04 C
7071. 2005 WI. 351929. '2-3 (N.D.IlL Feb.ll. 2005)
(interpreting 18 U.S.C. ~ 1030(g)).
Page 6
FN9. 18 U.S.c. ~ I 030( g) further provides
that "[aJ civil action for a violation of this
section may be brought only if the conduct
involves I of the factors set forth in clause
(I), (ii), (iii), (Iv), or (v) of subsection
(a)(5)(B)." Here, Schwab has standing
pursuant to 18 U.s.C. ~ 1030(a)(5)(B)(i),
which lists as a factor: "]oss to ] or more
persons during any I-year period (and, for
purposes of an investigation, prosecution, or
other proceeding brought by the United
States only, loss resulting from a related
course of conduct affecting 1 or more other
protected computers) aggregating at least
$5,000 in value."
By providing compensation to victims of computer
fraud, the CF AA operates, in effect, like a tort action.
See, e.g., Citv of Monlerev v. Del MOnle Dunes al
Monlerev. Ltd. 526 U.S. 687. 709. 119 S.O. 1624,
1638. 143 L.Ed.2d 882 (999) (claims brought under
a federal statute in effect sound in tort when, like
common-law tort actions, the statute provides redress
for interference with protected personal or property
interests) (Seventh Amendment context); Mever. 537
U.S. at 285. \23 S.Ct. at 828-29 (action under the
Fair Housing Act, in effect, is a tort action because
the statute provides remedies for violation of a
personal or property interest). As a result, the Court
assumes that Congress drafted the CF AA with an
intent to permit vicarious liability. L'ill! Thus, Schwab
can pursue relieffrom Defendants.
FN 10. The Supreme Court and Federal
Courts of Appeal have imposed vicarious
liability for violations of other federal
statutes. See, e.g., Farrazher v. the Citv of
Boca Ralon. 524 U.S. 775. 787-809. 118
S.O. 2275. 141 L.Ed.2d 662 (998) (Title
VII); Liquid Air. 834 F.2d at 1306 (RICO):
Quick v. Peoples Bank of Cullman COlin/V.
993 F.2d 793. 797 (lI'h Cir.1993) (RICO);
Uniled Slales I'. O'Connell. 890 F.2d 563.
569 (I" Cir.1989) (False Claims Act): Jones
v. Federated Fin. Reserve Com.. 144 F.3d
961. 965 (6'h Cir.1998) (Fair Credit
Reporting Act).
Doe v. Dartmouth-Hitchcock Medical Ctr.-one of the
few cases expressly addressing whether vicarious
liability is available under the CF AA and a case that
Defendants cite in support of their argument-does not
counsel a different result No. Civ. OO-IOO-M. 200 I
WI. 873063, *1 (D.N.H. Julv 19.2001). There, the
ild 2006 ThomsoniWest No Claim to Orig. U.S. Govt. Works.
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plaintiff sued both her physician and the medical
center that employed her physician, alleging that the
physician had exceeded her authorization to access
plaintiffs medical records. In rejecting the plaintiffs
theory of vicarious liability against the medical
center, the court noted that to hold the employer
liable for the employee's "intentional violation of the
CF AA, when that violation necessarily involved [ ]
an intentional violation of the [employer's] own
policies-and actually victimized the [employer],
would hardly be consistent with, or further the
purpose of, the CF AA, which, after all, is intended to
protect computer system's like [the employer's] from
unauthorized access and concomitant damage.'l Id. at
*5. Applying vicarious liability in that case thus
would have resulted in imposing liability on an
employer that was harmed by its employee's unlawful
conduct. See also, e.g., ScJnvarz v. National Van
Lines. Il1c.. No. 03 C 7096. 2004 WL 1497804, *3
(N.D.11l. July 20. 2004) (noting that a corporation
may be held vicariously liable under RICO, but
refusing to allow plaintiff to proceed on a theory of
vicarious liability "[b Jecause the purpose of RICO is
to reach those who profit from a pattern of
racketeering, [hence] vicarious liability only applies
to civil RICO in limited circumstances in order to
avoid holding innocent corporations liable for the
wrongdoing of their employees.").
*7 Here, in contrast, Schwab alleges that Defendants
affirmatively urged Carter to access Schwab's
computer system beyond his authorization for their
benefit. Looking to the language of the CF AA, "the
CFAA's unequivocal purpose is to deter and punish
those who intentionally access computer files and
systems without authority and cause harm." See Doe,
2001 WL 873063 at *5. Thus, if the allegations in the
Complaint are true, imposing vicarious liability
would further the CF AA's purpose. See Pacific
AetaS-Dace & Electronics, Inc. v. T([vlol'. 295
F.SuPP.2d 1188. 1195 (E.D.Wash.2003), cited in
Schwab 2005 WL 351929 at *3 ("Case law supports
an employer's use of the CF AA's civil remedies to
sue former employees and their new companies who
seek a competitive edge through wrongful use of
information from the former employer's computer
system"); see also Shuf'.!ard Storaee Centers. Inc. v.
Sale~u,,/'d Sel( Slo/'a~e. Inc.. 119 F.Supp.2d \ 121.
1123 (W.D. Wash.2000). To hold otherwise would
exempt a principal from liability when its agent
improperly accessed a computer at the direction of
the principal. The allegations in Schwab's Complaint
are sufficient to establish an actionable claim against
Defendants.
Page 7
b. Section 1030(a)(2)(A)
Defendants next argue that Schwab cannot sustain a
claim under CFAA Section I 030(a)(2)(A). The rub of
Defendants' argument is that Schwab failed to
"expressly allege" that Carter accessed a "financial
record" from a "financial institution" as those terms
are defined in the statute. The Court rejects this
argument.
As noted above, the CFAA permits an injured party
to recover civil remedies against:
(a) Whoever ... (2) intentionally accesses a computer
without authorization or exceeds authorized access,
and thereby obtains (A) information contained In a
financial record of a financial institution .n
18 U.S.c. ~ 1030(a). The CFAA further defines the
terms "financial record" and "financial institution" as
follows:(4) the term "financial institution" means
[among other things] ..' (F) a broker-dealer registered
with the Securities and Exchange Commission
pursuant to section IS of the Securities Exchange Act
of 1934...
(5) the term "financial record" means information
derived rrom any record held by a financial
institution pertaining to a customer's relationship with
the financial institution.
18 U.S.c. ~ 1030. Schwab concedes that it has not
alleged specifically that it is a "financial institution"
as defined by the statute, but argues that its allegation
that it is a "full service investment and securities
firm" should suffice for p,urposes of a motion to
dismiss. The Court agrees. _lill
FN I I. Schwab contends alternatively that it
does in fact meet the definition of "financial
institution" because it is a "broker-dealer
registered with the Securities and Exchange
Commission pursuant to section 15 of the
Securities Exchange Act of 1934." l!\
U.S.C. ~ 1030(e)(4)(F). Although it need
not do so to resolve the Motion to Dismiss,
the Court could take judicial notice that
Schwab indeed is a registered broker-dealer.
See NASD BrokerCheck (available at ht
tp:l/pdpi6. nasdr. comlpdpi/mas
ter _report _ rrame.asp?Subject~ 5393 &
Subject_Name~CHARLES+S CHW AB++
CO. + INC. & SubjectType~F) (indicating
that Charles Schwab & Co. Inc. has been
registered with the SEC as a broker-dealer
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since 1971); see also Pala\' v. United States.
349 F.3d 418. 425 (71h Cir.2003) ("in
resolving a motion to dismiss, the district
court is entitled to take judicial notice of
matters in the public record (citing Anderson
v. Simon. 217 F.3d 472. 474-75 (7'h
Cir.2000) and G.E Caoital Com. v. Lease
Resolulion Com.. 128 F.3d 1074. 1080-81
(7'h Cir.1997)).
The Court further agrees that Schwab has adequately
alleged that Defendants improperly accessed
Schwab's "financial records." The Complaint alleges
that Carter (at Defendants' urging) downloaded
approximately 15,000 files from Schwab's computer
systems. (R. 69-1; P!.'s Third Am. Comp!. at ~ 8,
83.) Based upon all of the allegations in the
Complaint and the nature of Schwab's business (id. at
~ ~ 1, 2, 17), it is reasonable to infer that some of
these files "pertain( ] to a customer's relationship
with [Schwab]" so as to satisfy the statutory
definition of "financial records." Such an inference
comports with the allegations of the Complaint.
Barthole!. 953 F.2d at 1078. At the motion to dismiss
stage, that is all that is required.
c. Section 1030(a)(2)(C)
*8 Defendants (including Carter) finally contend that
Schwab cannot maintain a claim under CF AA
Section 1030(a)12)(C). As previously noted. that
section permits an injured party to recover civil
remedies against:
(a) Whoever ... (2) intentionally accesses a computer
without authorization or exceeds authorized access,
and thereby obtains ..' (C) information from any
protected computer if the conduct involved an
interstate or foreign communication ...
18 U.S.c.. 1030Ia). Defendants maintain that,
under the plain meaning of the statute, the "conduct"
under subsection (C) necessarily refers to the act of
"accessing a computer" under subsection (2). To fall
within the scope of the CF AA, Defendants argue, the
"access" of a computer must involve an interstate or
foreign communication. According to Defendants,
the Court must dismiss the Complaint because it
alleges only that, when Carter "accessed" Schwab's
computer, he did so by using only a laptop and a
DVD burner (allegedly, a purely intrastate event).
Although the Court agrees with Defendants'
construction of the statute, dismissal is not warranted.
The Complaint alleges that Schwab (a company
Page 8
headquartered in San Francisco. but with corporate
offices outside of CaHfornla) maintains an interstate
computer network as part of its nationwide business
operations. (R. 69-1: Pl.'s Third Am. Compl. at ~ ~ I,
2,4, 17,82,84.) The Complaint further aJleges that
Carter (from his office in Illinois) exceeded his
authorization and downloaded substantial volumes of
files from Schwab's computers. (ld. at ~ ~ 8,39, 83.)
Based on these allegations, it is reasonable to infer
that when Carter accessed Schwab's computer
network his conduct involved an interstate
communication. As a result, Defendants' argument
does not warrant dismissal at this stage.
11. The Summary Judgment Motion
As Defendants themselves put it, the Summary
Judgment Motion raises but one issue: did Schwab
specifically identify its alleged trade secrets with the
particularity required under the law" For the reasons
discussed below, the Court concludes that Schwab
has done so and, accordingly, denies the Summary
Judgment Motion.
A. Legal Standard
Summary judgment is proper when "the pleadings.
depositions, answers to interrogatories, and
admissions on file, together with the affidavits, if
any, show that there is no genuine issue as to any
material fact and that the moving party is entitled to a
judgment as a matter of law." Fed.R.Civ.P. 56(c). A
genuine issue of material fact exists only if "the
evidence is such that a reasonable jury could return a
verdict for the nonmoving party." Anderson v.
Liber!]' Lobbl'. Inc.. 477 U.S. 242. 248. 106 S.Ct.
2505. 2510. 91 L.Ed.2d 202 (1986). In determining
whether a genuine issue of material fact exists, the
Court must construe all facts in a light most favorable
to the non-moving party and draw all reasonable and
justifiable inferences in favor of that party. Id. at
255. 106 S.Ct. at 2513. The party seeking summary
judgment must establish that no genuine issue of
material fact exists and that it is entitled to judgment
as a matter of law. Celot/!x CorD. v. Catrett. 477 U.S.
317, 323. 106 S.Ct. 2548. 2552. 91 L.Ed.2d 265
(1986). To prevail. the responding party must then
come forward with facts <'sufficient to establish the
existence of an element essential to the party's case,
and on which the party will bear the burden of proof
at tria!." Id. at 322. 106 S.Ct. at 2552. The existence
of a factual dispute is not sufficient to defeat a
summary judgment motion, instead the non-moving
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party must present definite, competent evidence to
rebut the summary judgment motion. Butts v. Aurora
Health Care. Inc.. 387 F.3d 921. 924 (7'" Cir.2004).
With these standards in mind, the Court turns to the
merits of Defendants' Summary Judgment Motion.
B. Facts
*9 The following facts find support in the record and
are relevant to Defendants' Summary Judgment
Motion. In October 2004, after learning that Schwab
was closing its IA division. Acorn offered to buy lA,
including lA's intellectual property. (R. 115-1; PI's
SAMF at ~ 23.) According to Acorn's proposed
agreement. the term "intellectual property" "mean[t]
all fonns of intellectual property. including ...
confidential and proprietary information, including
trade secrets and know-how..." (ld at ~ 24.) In
addition, Acorn's proposal counted among Schwab's
"intellectual property" "[a]lIIA stock selection model
formulas" and specifically listed IA Models by name.
(ld)
In March 2005, as part of discovery in this case, INI2
the Original Defendants' submitted an interrogatory
asking Schwab to:
FN 12. Fact discovery in this case will close
on October 14, 2005 and expert discovery
will close on February 6, 2006. (R. 96-1;
Order of Aug. 2, 2005.) Schwab did not file
its Third Amended Complaint (naming the
New Defendants) until June 8, 2005. (R. 69-
I: PI.'s Third Am. CompI.)
Describe in detail all information that Schwab deems
to be confidential, proprietary andlor a trade secret ...
including but not limited to its data sources or
derivation, economic value, the extent to which this
information was confidential or publicly available,
and the extent to which Schwab protected the
confidentiality of the information.
(R. 99-1: Defs.' SMF at ~ 9 (quoting Interrogatory
No. 4 from the Original Defendants' First Set of
Interrogatories).) Schwab responded by "stat[ing]
that the confidential, proprietary and/or trade secret
information that is the subject of this case is the
confidential information taken from Schwab by
Defendants. including the model formulations
maintained by [the] IA [division] ..." (ld. at ~ 10.)
The Original Defendants' second set of
interrogatories inc1uded an essentially identical
interrogatory, to which Schwab offered an identical
Page 9
response. (ld at ~ ~ 12-13.)
On March 23. 2005, the Original Defendants deposed
Schwab's 30(b)(6) designee (Gregory Forsythe) on 18
subjects including:
The Infonnation that Schwab deems to be
confidential, proprietary and/or a trade secret, and
that is the subject of Schwab's Complaint and/or
Preliminary Injunction Motion, including without
limitation its data sources or derivation, economic
value, the extent to which this information was
confidential or publicly available, and the extent to
which Schwab protected the confidentiality of the
information.
(R. 115-1; PI.'s SAMF at ~ 40.) During his
deposition, Mr. Forsythe testified that "[w]hat is
proprietary is the underlying factor formulas, the
precise data inputs, how they were computed, how
data was combined, how those factors were weighted,
that is what is proprietary." (ld at ~ 42.) Mr.
Forsythe further testified that "[t]he proprietary layer
[of the IA Models] is the factor layer. the specific
data inputs, formulations, data manipulations and
weights... That is the secret sauce." (ld at ~ 41.) The
Original Defendants did not ask Mr. Forsythe to
further clarify his testimony. (ld)
On April 22, 2005, the Original Defendants filed a
motion to compel. (ld. at ~ 39.) That motion
complained that Schwab (among other things not
relevant here) had not fully or promptly complied
with the Original Defendants' request for production
of documents, and that Mr. Forsythe's 30(b)(6)
testimony was deficient in certain regards, but not as
to his testimony regarding the trade secrets at issue in
this case. The Original Defendants' motion mentions
Schwab's response to Second Interrogatory No.3, but
only in passing as part of a string cite. (ld.. Ex. 20 at
13.) The Original Defendants' motion did not
expressly raise any concern regarding the specificity
with which Schwab had identified the trade secrets at
issue. (ld. Ex. 20.)
*10 On May 4, 2005, Schwab amended its response
to add specific references to documents produced in
discovery:
Schwab states that the confidential, proprietary
and/or trade secret infonnation that is the subject of
this case is the confidential information taken from
Schwab by Defendants, including the model
formulations maintained by IA Copies of this
information have been produced in this litigation,
subject to protective order. including on the copies of
hard drives that Schwab made of the computers used
ibJ 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
Slip Copy
Slip Copy, 2005 WL 2369815 (N.D.!I!.)
(Cite as: Slip Copy)
by Carter (Bates stamp CS 000199) (including, but
not limited to, on files named "CIA Model
Diagrams.xls"), on discs retained by Carter
(BC0000362, BC0000381, BC0000389, BC0000390,
BC0000423), and emails that Carter sent to Sabot
immediately after being hired by AcornlDelphi
(BC0000794-815, BC0000784-91, BC0000782-83,
BC0000792-93).
(R. 99-1; Defs.' SMF at 11 I I.) In response to the
essentially identical interrogatory posed in the
Original Defendants' second set of interrogatories,
Schwab added to the above list of documents copies
of files on Carter's hard drive including those named,
"TRIAL_I.SPS," "MODEL.SPS," and
"VA_IBES_DATA_ CALCULATION.TXT." (Id at
n 13-14.)
C. The Illinois Trade Secret Act
To sustain a claim for trade secret misappropriation
under the ITSA, a plaintiff must demonstrate that it
had: (I) a trade secret, (2) that the defendant
misappropriated, and (3) used for business purposes.
See Do It Best. 2004 WL 1660814 at *lQ; PRG-
Schultz. 2003 WL 22232771 at *5 (N.D.II!. SeD.22.
2003). Under the ITSA, a "trade secret" is defined as:
information, including but not limited to, technical or
non-technical data, a formula, pattern, compilation,
program, device, method, technique, drawing,
process, financial data, or list of actual or potential
customers or suppliers, that:
(I) is sufficiently secret to derive economic value,
actual or potential, from not being generally known
to other persons who can obtain economic value from
its disclosure; and
(2) is the subject of efforts that are reasonable under
the circumstances to maintain its secrecy or
confidentiality.
765 ILCS 1065/2(d). "Thus to show that particular
information is a trade secret, [a plaintiff) must
demonstrate that it is valuable, not known to others
who might profit by its use, and has been handled by
means reasonably designed to maintain secrecy." /DX
Sl's. Com. v. Eoic Svs. Com.. 285 F.3d 581. 584 (7th
Cir.2002); see also Ll'nchval Svs. Inc. v. Chicazo
Consultinf! Actuaries. Ine.. No. 95 C 1490. 1998 WL
151814, *5 (ND.1I1. Mar.27. 1998) ("[t]he essential
element of a trade secrets action is establishing the
existence of the confidential information or trade
secrets in dispute").
"It is not enough to point to broad areas of
Page I 0
technology and assert that something there must have
been secret and misappropriated. The plaintiff must
show concrete secrets." COffloosile A1arine
Prooeflers. Inc. v. Van Del' froude 962 F.2d 1263.
1266 (7th Cir.1992) (per curiam ). "Hence. [a
plaintiff) cannot state a claim for trade secret
protection ..' by simply producing long lists of
general areas of information which contain
unidentified trade secrets." Nilssen v. .Motorola Inc.
963 F.SUDP. 664. 672 (N.D1I!.1997) (quoting AMP
Inc. ". Fleischhacker 823 F.2d 1199. 1203 (7th
Cir.1987)). That is to say, a plaintiff pursuing a trade
secret claim "must do more than just identify a kind
of technology and then invite the court to hunt
through the details in search of items meeting the
statutory definition." IDX. 285 F.3d at 584 (citing
ComtJOslle Marine. 962 F.2d at 1266): see also
Nilssen. 963 F.SuPP. at 672 (to sustain a trade secrets
claim a party must do more that "simply persist in the
blunderbuss statement that 'Everything you got from
us was a trade secret ... [That view is J wrong as a
matter of law" , (quoting aad. inc. v. ALN Associates.
file.. No. 88 C 2246. 1990 WL 93362. *3 (N.D.III.
June 20. 1990)).
*1\ Defendants argue that, in line with the above
authorities, Schwab has failed to identify its trade
secrets with requisite specificity despite "pointed"
interrogatories requesting that specific information.
In support of their argument, Defendants latch on to
Schwab's interrogatory responses wherein Schwab
stated that its "confidential, proprietary and/or trade
secret information that is the subject of this case is
the confidential information taken from Schwab by
Defendants. including the model formulations
maintained by IA [and others items that Schwab
identified by Bates number] ..." (R. 115-1: PI.'s
SAMF at 11 II.) Defendants read Schwab's response
to say that Schwab is pursuing its trade secret claim
as to any or all of the 15,000 computer files Carter
downloaded. Schwab aptly notes, however, that
Defendants' interrogatories were not as "pointed" as
Defendants make them seem. Indeed, Defendants'
interrogatories do not ask Schwab to isolate the
infonnation that is trade secret, but rather ask Schwab
to lump trade secrets in with other proprietary and
confidential information. (R. 99-1; Defs.' SMF at 11 9
("Describe in detail all information that Schwab
deems to be confidential, proprietary and/or a trade
secret ... ).) It is entirely possible that, when Carter
downloaded lA's computer files, all of the documents
he copied were confidential or proprietary, if not
trade secret, thus rendering Schwab's response in
some sense accurate.
(Q 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
Slip Copy
Slip Copy, 2005 WL 2369815 (N.D.IIl.)
(Cite as: Slip Copy)
FUl1hennore, Defendants could raise any
shortcoming in Schwab's interrogatory responses
(and any attendant confusion regarding what trade
secrets are at issue in this case) FND in a motion to
compel, FN14 especially since discovery in this case
has yet to close. Indeed, the Original Defendants
already have moved to compel regarding a number of
Schwab's supposedly deficient discovery responses,
but have not asked Schwab to clarify what
constituted the trade secret information in this case.
Instead, the New Defendants have raised what is
essentially a complaint about Schwab's responses to
discovery-notably not the New Defendants'
discovery. FNI5 but that of the Original Defendants-in
a motion for summary judgment. At this juncture,
rendering summary judgment would be premature.
FN 13. In addition, Defendants' claim that
they cannot detennine what exactly
constitutes Schwab's trade secrets rings
somewhat hollow considering that Acorn at
one point offered a written proposal to
acquire IA and its "confidential" and
"proprietary." information (including trade
secrets) and specifically identified certain
Models by name. Further, although
requesting that Schwab produce a 30(b)( 6)
witness to testify as to the trade secrets at
issue in the case, it appears that the
Defendants asked only one question on that
subject.
FN 14. Defendants must comply with Local
Rule 37.2 before filing any such motion.
FN 15. The Court ordered written discovery
as to New Defendants be issued by August
24.2005. (R. 96-1; Order of Aug. 2, 2005.)
In any event, Defendants' cited authorities do not
carry the day. Defendants, in large part, rest their
motion on IDX Svs. Com. v. Eo!c Svs. Com.. 285
F.3d 581 (7'" Cir.2002). In that case, the plaintiff
alleged that an entire software program constituted a
trade secret notwithstanding the fact that the
defendant had purchased the software to use in its
business:
According to IDX, "a 43-page description of the
methods and processes underlying and the inter-
relationships among various features making up
IDX's software package" is specific enough. No, it
isn't. These 43 pages describe the software ... it does
not separate the trade secrets from the other
information that goes into any software package.
Page II
Which aspects are known to the trade, and which are
not? That's vital under the statutory definition.
Likewise, IDX's tender of the complete
documentation for the software leaves mysterious
exactly which pieces of infonnation are the trade
secrets ... [A] plaintiff must do more than just
identify a kind of technology and then invite the court
to hunt through the details in search of items meeting
the statutory definition. What is more, many of the
items that appear in the 43-page description, such as
the appearance of data-entry screens, are exceedingly
hard to call trade secrets: things that any user or
passer-by sees at a glance are "readily ascertainable
by proper means" Minnesota A.finine &
Manu(acturine Co. v. Pribvl. 259 F.3d 587 (7"
Cir.200 I), on which IDX principally relies, did not
involve such self-revealing infonnation. Other
details, such as the algorithms that the software uses
to do real-time error checking (a vaunted feature of
IDX's software), may be genuine trade secrets, but
IDX has not tried to separate them from elements
such as its input and output formats.
*12 IDX. 285 F.3d at 583-84 (internal citation
omitted); see also AMP. 823 F.2d at 1203 (cited by
Defendants and refusing to overturn judgment on the
merits because plaintiff "consistently failed
throughout [the] litigation to identify any
particularized trade secrets actually at risk," but
rather contended only that it held trade secrets in "a
host of confidential information to which [its former
employee] had access during the course of his
employment at AMP" including "business and
strategic planning information," "manufacturing
information," "financial information," and
"marketing and customer information"); Lvnchval
Svs.. 1998 WL 151814 at *6 (granting summary
judgment where plaintiff was unable to identify any"
'computer printouts, formulae, memoranda, or any
other tangible technical data,' identifying its trade
secrets n.").
fDX, however, dealt with facts distinguishable hom
the facts here. The plaintiff in IDX sought trade secret
protection for "self-revealing information," such as
the software's data-entry screens. As a result, IDX
was seeking trade secret protection for something
(publicly disclosed, non-confidential data entry
screens) that the trade secret statute at issue .!-';.,J16
clearly did not allow. Here, in contrast, there is at
least a genuine issue of material fact as to whether
the information Carter took was ever disclosed to the
public. (See R. 1 IS-I; PI.'s SAMF at ~ 20.)
Moreover, although Schwab's interrogatory responses
may have been open-ended (perhaps in part due to
<1) 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
Slip Copy
Slip Copy, 2005 WL 2369815 (N.D.III.)
(Cite as: Slip Copy)
Page 12
the way in which Defendants framed the question).
Schwab responded to Defendants' Summary
Judgment Motion by identifying its "trade secrets" by
Bates number and computer file type. By doing so,
Schwab would survive summary judgment. See Do II
Best Corn. v. Passport Sofiware. Inc.. No. 01 C 7674.
2005 WL 743083. *13 !N.D.III. Mar.31. 2005)
(plaintiff came "dangerously close" to being too
general to sustain trade secret claim where plaintiff
instructed that "to determine [its] trade secret,
[defendant] need merely look at the lines of code
which [plaintiff] identified and examine the design,
structure, and programming techniques and the
integration into the code which DIB is using," but
denying summary judgment because the plaintiff "did
identify specific lines of code and specific software
features for which it claims protection").
FN 16. The IDX court was construing the
Wisconsin Trade Secret Act, which is
essentially identical to the ITSA.
CONCLUSION
For the above stated reasons, the Court denies
Defendants' motion to dismiss. motion for judgment
on the pleadings, and motion for summary judgment.
ND.lll.,2005.
Charles Schwab & Co., Inc. v. Carter
Slip Copy, 2005 WL 2369815 (N.D.IIl.)
Briefs and Other Related Documents (Back to top)
. 1:04cv07071 (Docket) (Nov. 02, 2004)
END OF DOCUMENT
<D 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
f
f:-)ZkbA f
West!aw.
Not Reported in F.5upp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.DJI!.)
(Cite as: 2003 WL 1989605 (N.D.III.))
H
Motions. Plcadinl!s and Filinl!s
Only the Westlaw citation is currently available.
United States District Court,
N.D. Illinois, Eastern Division.
LUCINI ITALlA COMPANY, Plaintiff.
v.
Giuseppe GRAPPOLlNI. and Grappolini G. s.r.l.,
Defendants.
No. 01 C 6405.
April 28. 2003.
Olive oil company brought action against consultant for
breach of loyalty and theft of valuable trade secrets. The
District Court, Dcnlow, United States Magistrate Judge,
held thal: (1) consultant breached his fiduciary duties to
olive oil company under l1Iinois law by usurping company's
business opportunity with supplier, misappropriating
company's valuable trade secrets for his own financial gain,
and then marketing a new olive oil product substantially
similar to the one company had planned to market after
securing the supply contract; (2) consultant misappropriated
olive oil company's valuable trade secrets in violation of
Illinois Trade Secret Act; (3) punitive damage award of
$1,000,000 against consultant was appropriate; and (4)
company was entitled to injunction.
Judgment for plaintiff
West Headnotes
ill Principal and Agent €=48
308k48 Most Cited Cases
To establish a claim for breach of fiduciary duty under
lIlinois law, a principal must prove: (1) the existence of a
fiduciary duty on the agent's part. (2) agent's breach of the
duty, and (3) damages proximately resulting from the
breach.
ill Principal and Agent ~l
308k I Most Cited Cases
Page I
ill Principal and Agent €=48
308k48 Most Cited Cases
Under lIlinois law, an agency relationship engenders a type
of fiduciary affiliation in which the principal has the right to
control the agent's conduct, and the agent has the power to
act on the principal's behalf; once an agency relationship is
found, a fiduciary relationship arises as a matter of law.
ill Principal and Agent €=48
308k48 Most Cited Cases
Under Illinois law, agent owes principal full disclosure of
all relevant facts relating to the transaction or affecting the
subject matter of the agency.
ill Principal and Agent €=69( I)
108k69( I) Most Ci1cd Cases
ill Principal and Agent €=72
308k72 Most Cited Cases
Consultant breached his fiduciary duties to olive oil
company under Illinois law by usurping company's business
opportunity with supplier, misappropriating company's
valuable trade secrets for his own financial gain, and then
marketing a new olive oil product substantially similar to
the one company had planned to market after securing the
supply contract.
ill Principal and Agent €=79(9)
308k79(9) Most Cited Cases
Punitive damages are appropriate under Illinois law where
an agent has intentionally breached a fiduciary duty.
ill Principal and Agent €=79(9)
308k79(9) Most Cited Cases
A punitive damages award of $1 ,000,000 against consultant
was appropriate under Illinois law where consultant
breached his fiduciary duties to olive oil company by
usurping company's business opportunity with supplier,
misappropriating company's valuable trade secrets for his
own financial gain, and then marketing a new olive oil
product substantially similar to the one company had
planned to market after securing the supply contract.
ill fraud €=12
184k12 Most Cited Cases
((;) 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
westlaw.
Not Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.II1.)
(Cite as: 2003 WL 1989605 (N.D. III.))
Consultant committed promissory fraud under Illinois law
by promising olive oil company that he would secure an
exclusive worldwide supply arrangement, while never
intending to do so because consultant wanted such an
arrangement for his own company.
ill Principal and Agent €;=79(9)
308k7919) Most Cited Cases
A punitive damages award of $1 ,000,000 against consultant
was appropriate under Illinois law where consultant
committed promissory fraud by promising olive oil
company that he would secure an exclusive worldwide
supply arrangement, while never intending to do so because
consultant wanted such an arrangement for his own
company.
ill Estoppel €;=85
156k85 Most Cited Cases
Promissory estoppel claim existed under Illinois law in
favor of olive oil company where consultant falsely
promised company that he would secure an exclusive
worldwide supply arrangement, while never intending to do
so because consultant wanted such an arrangement for his
own company; company relied on that promise and spent
hundreds of thousands of dollars preparing its products for
market based on the promise and such reliance was expected
and foreseeable to consultant.
WU Trade Regulation €;=987
382k987 Most Cited Cases
(Formerly 379kI0(5))
Olive oil company's research, design and marketing plans,
product fommlations and production methods, and customer
and supplier identities met the secrecy requirement of the
Illinois Trade Secret Act; such information was not readily
ascertainable from any source of public information, was
developed through great expense and effort, and was not
shared with anyone outside of 765 company's senior
management, except for a few select individuals who were
assisting company and who were subject to non-disclosure
agreements, and company took reasonable steps to
safeguard its confidential information. S.H.A. 765 ILCS
1 065/2( d1.
llll Trade Regulation €;=990
Page 2
382k990 Most Cited Cases
(Formerly 379kI0(5))
Consultant misappropriated olive oil company's valuable
trade secrets in violation of Illinois Trade Secret Act;
consultant acquired company's trade secrets under
circumstances giving rise to a duty to maintain their secrecy,
and then marketed a new olive oil product substantially
similar to the one company had planned to market S.H.A.
765 ILCS 1065/2Ib).
U1l Injunction €;=56
212k56 Most Cited Cases
Olive oil company, which established that consultant
unlawfully misappropriated its trade secret information, was
entitled to injunction under Illinois Trade Secret Act;
company established that disclosure of trade secrets was
inevitable, that it would suffer irreparable harm if a
permanent injunction does not issue, that it had no adequate
remedy at law, that the injury to company if injunctive relief
does not issue would exceed any harm to consultant if an
injunction was entered, and that the public interest
supported the issuance of an injunction. S.H.A. 765 ILCS
1 06511( a).
ll.ll Damages €;=40(1)
115k4()( 1 ) Most Cited Cases
Olive oil company, which established that consultant
unlawfully misappropriated its trade secret information, was
entitled under Illinois Trade Secret Act to recover its lost
profits which resulted from consultant keeping company out
of the marke!. S.HA 765 ILCS 1065/4(a1.
U:!l Damages €;=40(1)
115k40( I) Most Cited Cases
Consultant engaged m willful and malicious
misappropriation of olive oil company's trade secret
information as evidenced by his use of the information for
directly competitive purposes and his efforts to hide the
misappropriation; thus, exemplary damages were warranted
under lllinois Trade Secret Act. S.H.A. 765 ILCS 1065/4(b).
1JjJ Trade Regulation €;= I 009
3 H2k I 009 Most Cited Cases
(Formerly 379k30)
Where company was successful on one or more claims all
(() 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
V\kstlaw.
Not Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.IlJ.)
(Cite as: 2003 WL 1989605 (N.D.III.))
based on a common core of facts, counsel could collect fees
for all litigation involving the trade secret count under
Illinois Trade Secret Act because willful and malicious
conduct was found to have occurred. S.H.A. 765 ILCS
1065/5.
l!!il Declaratory Judgment €=;:>145
118Ak145 Most Cited Cases
Based on court's determination that consultant willfully
misappropriated company's trade secrets, company was
entitled to a declaration that it properly terminated its
contractual relations with consultant and properly broke off
negotiations over a more expanded relationship with
consuliant. 21< U.S.C.A. o220I(a).
l1ll Trade Regulation €=;:>996
382k996 Most Cited Cases
(Formerly 379kI0(5))
Illinois Trade Secret Act is the exclusive remedy for
misappropriation of trade secrets, but does not preempt
common law claims based on other theories. 765 ILCS
I 065/8t a 1.
Steven C. Florsheim, Claire P. MUI:phv, Robert D. Cheifetz,
Sperling & Slater, P.c., Chicago, IL, for Plaintiff.
Giuseppc Grappolini, Grappolini G. s.r.l., Loro Ciuffcnna,
pro se.
MEMORANDUM OPINION AND ORDER
DEN LOW, Magistrate J.
* I This case involves a breach of loyalty and theft of
valuable trade secrets by a highly paid consultant to a small
family business engaged in the sale of olive oil. Defendants
vigorously defended this case until shortly before trial at
which time thcir counsel withdrew. Defendants failed to
appear at trial. The reason for their failure to appear is clear.
They stole an important business opportunity from Plaintiff,
misappropriated Defendants' valuable trade secrets for their
own financial gain, and they do not wish to face the
consequences.
The Court conducted a bent:h trial on February 24-25, 2003
in connection with the complaint brought by Plaintiff,
Lucini Italia Company ("Lucini" or "Plaintiff') alleging that
Page 3
Defendants Giuseppe Grappolini ("Mr.Grappolini") and
Grappolini G. s.r.I. ("Grappolini Company")(eollectively
"Defendants"), seized an exclusive contract with a key
supplier for their own benefit and began marketing a new
product by means of misappropriating trade secrets from
Plaintiff. The Court has carefully considered the testimony
of the three witnesses who appeared at trial, the witnesses
who appeared through depositions, the Plaintiffs trial
exhibits, the Plaintiffs written submissions and arguments.
The following constitute the Court's findings of fact and
conclusions of law pursuant to Rule 52(a\ of the Federal
Rules of Civil Procedurc. To the extent certain findings may
be deemed conclusions of law, they shall also be considered
conclusions. Similarly, to the extent matters contained in the
conclusions of law may be deemed fIndings of fact, they
shall also be considered findings.
1. FINDINGS OF FACT
A. Nature of the Action
t. Lucini alleges that Defendants promised to obtain an
exclusive contract with a key supplier, Vegetal Progress
("Vegetal"), but instead signed Vegetal to an exclusive
contract with defendant Grappolini G. s.r.l. Lucini claims
that after usurping Lucini's business opportunity with
Vegetal, Defendants began marketing a new olive oil
product substantially similar to the one Lucini had planned
to market after securing the supply contract. In developing,
producing, packaging, and marketing this new product,
Defendants are accused of using trade secrets
misappropriated from Lucini. Following Lucini's discovery
of Defendants' activities, Lucini terminated its relationship
with Defendants and pulled out of negotiations over a more
expanded relationship. The parties dispute whether Lucini
had good cause to terminate the contracts. At trial, Lucini
asserted five causes of action: (I) breach of fiduciary duty;
(2) fraud; (3) promissory esluppel; (4) violalion of the
Illinois Trade Secrel Act. 765 ILCS 1065/1 el seq.; and (5)
declaratory judgment. Lucini had earlier asserted two other
alternative legal theories for recovery, constructive fraud
and unjust enrichment, but elected to withdraw these
without prejudice at the time of trial.
B. The Parties
~ 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
westlaw.
Not Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.I1I.)
(Cite as: 2003 WL 1989605 (N.D.IIl.))
2. Plaintiff Lucini was an Illinois corporation at the time this
action was tiled and has since reincorporated in Florida.
Plaintiffs principal place of business was in Chicago,
Illinois at the time the lawsuit was filed. Lucini imports and
sells premium extra virgin olive oil and other products of
Italy. It was fonned (under its fonner name, IGOPLX
Incorporated) by Arthur Frigo, a Chicago entrepreneur and
adjunct professor of management and strategy at
Northwestern University's Kellogg Graduate School of
Management. The Court will refer to Plaintiff by its current
name, Lucini, even though it was named IGOPLX in its
early years. Mr. Frigo is the Chairman of the Board of
Lucini. The company's CEO is Mr. Frigo's daughter, Renee
Frigo, and its President is Renee Frigo's husband, Daniel
Graeff. Arthur Frigo, Renee Frigo, and Daniel GraetT
testified in person at trial and their testimony was credible
and consistent with the documentary evidence.
*2 3. Defendant Giuseppe Grappolini is a resident of Loro
CiutTenna, Italy. Mr. Grappolini served as a consultant to
Lucini pursuant to a Consulting Contract datcd December
22. 1997. (Px ]7). Under the Consulting Contract, Mr.
Grappolini worked on behalf of Lucini to develop Lucini
Premium Select extra virgin olive oil as well as to develop a
number of flavored olive oil products utilizing essential oils.
Defendant Grappolini G. s.r.!. (the "Grappolini Company")
is an Italian limited liability company, with its principal
place of business in Arezzo, Italy. Mr. Grappolini is the sole
owner and operator of the Grappolini Company. The
Grappolini Company distributes small volumes of
extra-virgin olive oil in Chicago and other markets
throughout the United States, and larger volumes in Europe.
Between December 1997 and June 2000, the Grappolini
Company served as Lucini's supplicr of extra virgin olive oil
pursuant to a December 1997 Supply Agreement.
4. Both Defendants appeared in this case through Chicago
counsel and actively participated in motion practice and
discovery. They gave limited deposition testimony, but
Giuseppe Grappolini and the Grappolini Company's
bookkeeper, Morena Botti, refused to sit for continuations
of their depositions ordered by this Court. Defcndants'
counsel was permitted to withdraw shortly after the close of
discovery. Neither Defendants nor any counsel representing
Page 4
them appeared at the pretrial conference or at trial, although
notice was sent directly to Defendants. Prior to trial,
Defendants sent a letter to the Court indicating that they
would not attend the trial or be represented. The Court
draws an adverse inference by reason of Defendants' failure
to appear at trial to rebut statements attributed to them or to
explain, under oath, their position on key events. Although
defendants did not appear, Lucini offered deposition
designations from the depositions of (i) Giuseppe
Grappolini. appearing individually and as a 30(b)( 6)
representative of thc Grappolini Company, (ii) Morena
Botti, the bookkeeper from the Grappolini Company, and
(iii) Marco Milandri, the former assistant to Mr. Grappolini.
(Px 301-303). Defendants' deposition testimony supports
several elements of Lueini's claims.
C. Background of thc Relationship Between Lucini and
Defendants
5. Arthur Frigo is an experienced self."made businessman
who began his busincss career working as a youth in his
father's Italian food store. Following college and a brief
allempt as a pool table designer, he enjoyed a successful
business career as a sales engineer, a management
consultant and the operator and owner of a consumer
products company which he eventually sold. Mr. Frigo
formed Lucini in 1996. Lucini's first project was Italian
premium select extra-virgin olive oil. After performing an
initial category analysis and select market research, Mr.
Frigo perceived a lucrative, high~end niche market for the
olive oil. Along with Renee Frigo and Daniel Graeff, Mr.
Frigo developed a plan to fill the niche. The success of the
company and its product was to be based on extensive
research and development and a substantial investment in
advertising, packaging and targeted marketing, and a
high-quality product. Because the olive oil market is highly
competitive, Lucini felt it was essential that Lucini's product
have an appearance designed to attract customer interest
even in a supermarket full of divergent olive oil products. It
was equally important to have a superior olive oil so that the
customer would return to buy more.
*3 6. While Lucini was searching for a supplier of high
quality extra virgin olive oil in Italy, it began market
research in the United States including: product names,
rg 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
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Not Reported in F.Supp.2d, 2003 WL 1989605 (ND.III.)
(Cite as: 2003 WL 1989605 (N.D.III.))
bottle shapes and sizes, and marketing approaches. Lucini's
intention was to leave nothing to chance, testing every
aspect of its products with focus groups and consumer trials
before launching its products nationally. Before Mr.
Grappolini agreed to be Lucini's consultant, Lucini had
spent in excess of $300,000 researching and laying the
groundwork for its future products.
7. After Lucini's representatives investigated and met with
many potential olive oil suppliers and consultants, Lucini's
officers focused on Giuseppe Grappolini and his company.
On June 1, 1997, Mr. Grappolini entered into a
non-disclosure agreement with Lucini. (Px 15). Lucini then
shared with Mr. Grappolini many of the details of its
ongoing research and solicited from Mr. Grappolini his
views on the direction Lucini's initial product should take.
Lucini believed Grappolini shared its goals to develop high
quality Italian olive oil products.
8. Working closely with Defendants, Lucini sought to
develop a distinctive extra virgin olive oil that would
become its signature product and sell in the range of
$10--$12 per bottle at retail. Arthur Frigo, Renee Frigo and
Daniel Graeff tasted numerous different blends of extra
virgin olive oils before pinpointing a flavor profile that they
and Grappolini agreed would be exceptional and likely to
appeal to Lucini's target audience in the United States and
around the world. The resulting olive oil had a deep green
color, unique taste, medium body, acidity of less than 0.4%,
and a variety of other trade secret chemical-analytical
characteristics. Because the flavor of an olive oil is
impacted by such factors as the types of olives used, the soil
content, weather, climate, method of picking the olives, the
ripeness of the olive when picked, method of pressing, the
time between harvest and bottling, and its exposure to light
and air, the exact techniques Lucini developed and uses to
produce a consistent product from year to year are also
secret. The difficulty in reproducing Lucini's olive oil by
persons not versed in Lucini's trade secrets is evidenced by
the fact that experienced olive oil purveyors and
cultivators-who were solicited to replace the Grappolini
Company atler the Supply Contract was terminated-could
not recreate Lucini Premium Select until Lucini disclosed its
methodology and techniques.
Page 5
9. After fonning a friendship with Mr. Grappolini and
developing a respect for his ability to taste olive oil, the
Frigos and Graeff chose Grappolini and his company to
become their primary consultant and supplier. On December
22, 1997, Lucini entered into an Extra-Virgin Olive Oil
Supply Agreement with the Grappolini Company and a
Consulting Agreement with Grappolini. In these
agreements, Defendants acknowledged the valuable and
confidential nature of Lucini's customer infonnation,
product development plans, marketing plans and strategies,
and design products. Grappolini was generously
compensated for his consuiling efforts on Lucini's behalf.
Lucini paid him $12,500 per month in November and
December of 1997, $12.500 per month in 1998. $15.000 per
month in 1999. and $16,500 per month in 2000 until
tennination in June 2000. Apart from the hundreds of
thousands of dollars in consulting fees paid to Grappolini,
Lucini also reimbursed him for all of his travel and related
expenses. Lucini also paid the Grappolini Company for the
oil it supplied. In respectively becoming Lucini's consultant
and supplier, Grappolini and the Grappolini Company
entered into an agency relationship with Lucini, the
principal.
*4 10. To succeed and distinguish their company in the
market, the Frigos created Lucini as a distinctive brand, and
also "branded" Grappolini-spending substantial time and
money promoting and marketing Giuseppe Grappolini as an
olive oil expert and dubbing him a "master cultivator" in its
literature, commercials, and in person at speaking
engagements with food sector experts. Lucini paid for
Grappolini to take courses to make him a better public
speaker. He became Lucini's public face. In exchange,
Lucini insisted on exclusive rights and confidentiality.
II. At great expense, Lucini also commissioned marketing
firms using psychological research techniques to create a
marketing plan to target both emotional and intellectual
responses from consumers. Lucini engaged in traditional
and non-traditional advertising and promotion and refined
its marketing message. Lucini shared the results of its
extensive research as well as its business plans with
Defendants; it did not disclose its plans or the results of its
studies with anyone who was not working for Lucini or
I[;J 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
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Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.!I!.)
(Cite as: 2003 WL 1989605 (N_D.III.))
subject to a confidentiality agreement. In total, Lucini spent
more than a million dollars in research and development and
other expenses before selling its first bottle of olive oil.
12. After making its first sale of its Lucini Premium Select
product in August 1998, Lucini worked to create a brand
identity and market the product into the specialty and
grocery stores it had targeted. Lucini's efforts paid off.
According to A.c. Nielsen's Olive Oil Item Rating Report,
in less than five years, Lucini has become the number three
(of 40) selling brand of premium olive oil in the United
States.
D. The LEO ProjecI
13. In early 1998, Lucini and Grappolini discussed adding a
line of extra virgin olive oils blended with "essential oils"
(i.e., natural extracts such as lemon or garlic). Grappolini
agreed to be primarily responsible for the food-related study
(taste, smell) of the new products, and Lucini agreed to be
responsible for the advertising, distribution, and marketing.
They termed the project the "LEO Project," which stands for
L ucini Essential 0 ils.
14. Lucini extensively researched the potential market for
natural extract premium olive oil products by empaneling
focus groups and commissioning other studies. These
studies analyzed all elements of packaging, product
positioning, label colors, label textures, language and titles.
In March of 1998, Lucini received a very strong positive
response to the products and was eager to move quickly to
develop and market this new product.
15. In a March II, 1998 lelter to Me. Frigo, Grappolini
enthused that he was "really happy to hear that you received
a strong interest in the essential oil I know that Renee
[Frigo] and Daniel [Graeff] told you how much I desire 10
put my energy in this project." (Px 43).
16. Grappolini ostensibly did pul his energy into the LEO
project. He attended meetings in Chicago concerning the
LEO project in the summer of 1998. Grappolini told the
Frigos about the "only" company in Italy that could supply
Lucini with the quantity and quality of natural essential oils
Lucini would need. This company, Vegetal-Progress s.r.l.
Page 6
("Vegetal"), was run by the Perotti family. Subsequently,
Lucini did its own extensive research looking for an
alternative supplier of essential oils, but could find no
company in Italy other than Vegetal that was capable of
producing the superior product Lucini sought and the
variety of flavors needed.
E. Lucini's Efforts To Obtain an Exclusive Supply
Agreement With Vegetal
*5 17. In the summer of 1998 Lucini asked Grappolini to
approach Vegetal on Lucini's behalf and propose an
exclusive worldwide supply arrangement. Although
Grappolini lold Renee Frigo that he did not believe Vegetal
would ever consider an exclusive arrangement with anyone,
he agreed to ask Vegetal for an exclusive contract on
Lucini's behalf. Lucini explained that it could make thc
capital commitment necessary to finance the LEO project
only if it knew that Vegetal had agreed to an exclusive
relationship for the supply of its essential oils for use in the
olive oil industry. Lucini eXplained to Grappolini that
exclusivity was crucial for the LEO project. Lucini could
not justify the start-up costs necessary to bring this new and
unique product to market and to create consumer demand if,
after Lucini had succeeded in creating the demand for the
product, the Perottis were free to switch their supply of
essential oils to one of Lucini's competitors. Lucini did not
seek to limit Vegetal from supplying its essential oils to
other industries such as perfumes and cosmetics.
18. In the summer of 1998, Grappolini reported back to
Lucini that he had a very positive response from his meeting
with the Perottis. He stated that Vegetal was uniquely
equipped-from technical and quality standpoints-for the
LEO project. On August 8, 1998. he further reported that
the Perottis "will work with us exclusively and arc ready to
sign a contract stating as much." (Px 61). Renee Frigo told
Grappolini to have the Perottis send them a contract they
had used in the past, and they would work with it.
F. Grappolini Misleads Lucini About the Status of the
Vegetal Negotiations
19. Grappolini attended a meeting in Chicago in December
1998 to further discuss and plan the LEO project. In
IQ 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
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Nol Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.IIL)
(Cite as: 2003 WL 1989605 (N.D.III.))
addition, Grappolini regularly communicated by telephone
and fax with Lucini as the project moved forward. Lucini
spent hundreds of thousands of dollars testing flavors,
designing labels and packaging, creating recipes for the new
products, determining a pricing stmtegy, selecting the types
of essential oil products that would be best sold in grocery
stores, speciality stores, and to those in the food service
industry, and testing everything in focus groups. As it had
with Lucini Premium Select, Lucini shared its results with
Defendants and regularly incJuded Mr. GrappoJini in high
level discussions of strategy and plans. Lucini included
Grappolini in meetings to discuss feedback regarding its
products from world-renowned chef Charlie Trotter (whose
company signed a non-disclosure agreement). Chef Trotter
advised Lucin; on potential flavor possibilities for the LEO
products for the line of products Lucini intended to market
to the food service industry (the chefs line) as well as for
the lines of products Lucini intended to market in specialty
stores (the gourmet line) and grocery stores (the grocery
line).
20. In December 1998, GrappoJini wrote to Arthur Frigo,
Renee Frigo, and Daniel Graeff that Vegetal wanted Lucini
to provide a draft "world exclusive" contract as soon as
possible. (Px 72). The same day, Lucini wrote back that it
would begin to draft an agreement. (Px 73). On February
24, ] 999, Renee Frigo wrote to Marco Milandri,
Grappolini's assistant, stating, "We are ready with the
essential oil agreement for Mr. P ." family's company. Let
me know if Mr. Grappolini would like it sent to him to give
10 Mr. P or if he would like us to fax it directly." (Px 76).
Mr. Milandri wrote back that Grappolini would prefer to
personally deliver the agreement to the Perottis because he
has the relationship with Mr. P. (Px 77). Mr. MiJandri
testified thaI Mr. Grappolini had specifically directed him to
makc this response. (Px 302. pgs. 145-46). Later that day,
Renee Frigo faxed a draft agreement to Mr. Grappolini with
the cover note: "I have attached the Essential Oil Agreement
for you to present on Lucini behalf to Mr. Perotti." (Px 78).
The attached supply agreement described a worldwide
exclusive supply arrangement betwecn Vegetal and Lucini.
Id
*6 21. Aller February 1999. Mr. Grappolini indicated to
Page 7
Lucini that he had presented the contract to Vegctal and
stated, on numcrous occasions, that it was only a matter of
time before he would have the supply contract signed by
Vegetal. He indicated that any delays were due to Vegetal's
need to run the proposed agreement past its French parent
company. Mr. Grappolini's representations to Lucini were
not true. At his deposition, Mr. Grappolini admitted that
Lucini had asked him to present the contract to Vegetal, that
he had never done so, and that he never told Lucini of his
failure to transmit the contract. (Px 303, pgs. 23-27).
22. In May of 1999, Arthur Frigo, Renee Frigo, Daniel
Graeff, and Grappolini met with the Perottis. Before the
meeting, Grappolini cautioned the Frigos not to mention the
proposed supply agreement with Vegetal. He stated that
since it was their first meeting, the Perottis would be
offended by such an American and aggressive approach.
Grappolini reassured the Frigos that he would take care of
the business issues with the Perottis. Once again, Lucini
relied on Grappolini's advice. After the meeting, Giorgio
Perotti wrote to Renee and Daniel, "expressing great
confidence in [their] enterprise, which aim is to link to the
qualities of thc olive oil the numerous and suggestive
qualities of the essential oils." (Px 89).
23. As time went by and Lucini spent more and more money
developing its flavored oil products, Grappolini continued to
reassure Lucini that he would obtain the Vegetal contract for
Lucini.
24. From March to October 1999, Grappolini met nearly
every month for extensive, multiple day meetings with
Arthur and Renee Frigo, Daniel Graet1~ and LlIcini's
designer, Milana Kosovac:, concerning the LEO Project.
During the meetings, which took place in Chicago, New
York, Miami, Loro Ciuffenna, and Lake Como, as well as
through confidential correspondence, the Frigos explained
to Grappolini in detail Lucini's confidential and trade secret
marketing and design strategies, research results and
analysis concerning the LEO Project. This information
included:
(a) Lucini's targeted marketing strategy for specific sales
venues;
(b) Lucini's research into consumer profiles in different
sales venues;
!d 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
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NUl Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.I1l.)
(Cite as: 2003 WL 1989605 (N.D,IIJ.))
(c) Lucini's specific plans for introducing new single
flavor and combination LEO products in different venues;
(d) Lucinj's testing data and analysis of bottle, package
and label design features to determine which elements
would maximize the chances that first-time customers
would pick Lucini's products off the shelf;
(e) Lucini's advertising strategy and techniques to
establish ,md maintain a "brand" identity and image;
Cf) Lucini's research into consumer acceptance of ditTerent
flavors; and
(g) Lucini's pricing strategy,
25. The information and plans Lucini shared with
Grappolini were not shared with anyone outside of Lucini's
senior management, its designer, and Grappolini. As
Lucini's designer, Ms. Kosovac had signed an agreement
specifying that inf(:>mlation shared by Lucini would remain
strictly confidential. Lucini maintained its marketing,
product development and design information as a closely
guarded secret because it believed this infonnation would
give it a competitive advantage when it began selling LEO
products, so long as it was unknown to Lucini's campetitorK
By the end of 1999. Locini had spenl over $800,000
developing the market information, researching packaging
and sales possibilities and generating its trade secrets for the
new LEO producls. (Px 402).
*7 26. Lucini's extensive expenditures preparing its LEO
products for market made good business sense to Lucini
based on its sales forecasts for the products. On its grocery
line of LEO products, Lucini conservatively forecast sales
of at least $1.2 million in its first full year; at least $2.1
million in its second full year; at least $2.5 million in its
third full year, and al least $5.0 million in its fourth full
year. (Px 401). Lucini anticipated profits of at least $4.17
million on the grocery line over its first four years. Lucini
anticipated additional sales and profits on its gounnet and
chcf's Jines of LEO products, but does not have
contemporaneous sales forecasts for these products. Lucini's
forecast arc conservative, reasonable and credible. They arc
validated by the fact that Lucini did similar forecasts for its
Lucini Premium Select product and for its vinegar products
and exceeded its forecasts during the initial years the
products were sold. If Lucini gains access to Vegetal
Page 8
essential oil or an alternative supply source immediately, it
will be able to launch its products in early 2004, but not
sooner, based on the fact that the olive harvest for 2003 has
already concluded and Lucini cannot obtain sufficient
quantities of the necessary base oil at this time to fill orders
for 2003. Defendants have sold olive oil flavored with
Vegetal essential oils since some time in J 999 under several
different brand names but refused to disclose in discovery
their total sales or profits from these products. The Court
draws the inference from Defendants' refusal to disclose
their actual sales experiencc with the product lines that
Defendants' sales and profits meet or exceed those forecast
by Lucini.
G. Defendants Strike Their Own Dcal With Vegetal,
Shutting Out Lucini.
27. In direct contravention of his representations and
Lucini's reasonable expectations, GrappoJini secretly
negotiated an exclusive, worldwide supply contract with
Vegetal for the Grappolini Company, rather than for Lucini.
Grappolini never told Lucini that he was negotiating his
own deal with Vegetal. The Grappolini-Vegetal agreement
was signed on October 4. 1999. (l'x 1 Sand 19). The
Grappolini-Vegetal contract expressly prohibited any
assignment of the contract to any third party, including
Lucini. (Px 19, Art. 12).
28. After entcring into his own exclusive arrangement with
Vegetal, Grappolini deliberately hid that fact from Lucini.
Grappoljni continued to represent to Lucini that Lucini
would soon have a worldwide exclusive contract with
Vegetal. On October 4, 1999, the very day on which the
Grappolini Company entered into its exclusive agreement
with Vegetal, Renee Frigo and Daniel Graeff were in Italy
to finalize details of the LEO Project. During that trip, Me.
Grappolini met with Renee Frigo and Daniel Graetf in Lora
Ciuftenna to review labeJs for ,he LEO project, discuss
Lucini's marketing plans, and conduct tastings. When Renee
and Daniel reminded Grappolini of the importance of a
direct supply agreement betwcen Lucini and Vegctal,
Grappolini responded, "Do not worry." Mr. Grappolini
continued in his deception in mid-October J 999, during a
day-long meeting about the LEO project, Grappolini told
Arthur Frigo, "Do not worry. The PeroHi agreemcn( is going
(Q 2006 Thomson/Wes!. No Claim to Orig. U.S. Gov!. Works.
Westlaw.
Not Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.II1.)
(Cite as: 2003 WL 1989605 (N_p,m.))
to be done in the next 30~45 days. I will have it for you. No
problem. Do what you got to do." (Tr. 85). Mr. Grappolini's
statements were false and intended to mislead Lucini into
continuing to spend money on LEO, to continue sharing its
trade secrets with Grappolini, and to continue paying
Grappolini his monthly consulting fee even though he had
begun to work exclusively for his own interests instead of
for Lucini.
*829. Because Lucini was nearing its planned launch of the
LEO products at the important Fancy Food Show in San
Francisco in mid-January 2000, Arthur Frigo insisted on
knowing the status of the Vegetal negotiations by
mid-October 1999. Mr. Frigo further reminded Grappolini
that if the Lucini/Vegetal agreement was not executed
within 30-45 days, then Lucini would be in serious risk of
ruining its credibility with its customers (some of whom had
committed to purchase the product sight unseen based on
Lueini's reputation). Again, Grappolini insisted that
everything was on track and reassured Frigo that he should
not be concerned.
30. On or about November 5, 1999, in reliance on
Grappolini's reassurances and representations, Lucini placed
an order for LEO products from Grappolini, to be delivered
in Chicago on February 21, 2000 and delivered to Lucini's
warehouse in San Francisco on February 28, 2000.
Grappolini indicated that he would fill this order using
Lucini Premium Select oil and essential oil that Vegetal had
agreed to provide pursuant to the anticipated exclusive
supply arrangement with Lucini. Lucini paid the Grappolini
Company S28,000 for the essential oils in anticipation of the
contract. Lucini planned to use the LEO products to fill
advance customer orders it would take at the Fancy Food
Show and to begin its efforts to have the products
distributed to stores around the country.
H. Lucini Discovers the Truth
31. On November 9. 1999, Daniel Graeff met with
Grappolini in Italy in connection with negotiations over a
potential expanded role for Mr. Grappolini with Ludni as it
added more product Jines. Because Lucini's otTer to expand
Grappolini's role and nearly double his monthly
compensation was explicitly contingent on securing for
Page 9
Lucini the worldwide exclusive contract with Vegetal, Mr.
Graeff questioned Mr. GrappoJini about the status of the
Vegetal negotiations. Under direct questioning from Daniel
Graeff, Grappolini admitted that he had already entered into
an agreement with Vegetal for himself and his company, bUI
refused to elaborate on the terms of the contract. Graeff
expressed shock and disbelief, and immediately informed
Arthur and Renee Frigo of the news.
32. Lucini made repeated requests to Defendants to
immediately provide Lucini with a copy of the agreement
between the Grappolini Company and Vegetal.
Nevertheless, Grappolini did not provide a copy of this
agreement to Lucini's Italian counsel until December 21,
1999. At this point, Lucini learned for the first time that the
Grappolini Company's contract with Vegetal was nOl
assignable and that Grappolini did not intend to transfer the
contract to Lucini.
33. Following its discovery of the terms of the
GrappoJini-Vegetal contract, Lucini contacted the Perottis to
explore whether there was any possibility of achieving a
direct supply arrangement. Mr. Perotti told Renee Frigo and
DanicJ Graeff that Vegetal had no objection to supplying
essential oil for use in Lucini's LEO products, and
acknowledged that Grappolini was a "bad boy" in procuring
the contract for his own company rather than Lucini, but
Vegetal would not renege on its existing commitments to
Mr. Grappolini. (Tr. 228). But for Grappolini's unlawful
activities in entering into an exclusive arrangement with
Vegetal for his company, Lucini would have been <tble to
enter into an exclusive supply arrangement with Vegetal.
*9 34. Because the olive harvest had concluded by the time
Lucini discovered Grappolini's actions, it was too la1e for
Lucini to find an alternative source for its Premium Select
Olive Oil for the coming year, so Lucini continued doing
business with Grappolini for a few months while it began
investigating its alternatives. When all discussions with
Defendants' representatives seeking a negotiated solution
broke down in June 2000, Lucini terminated ils consulting
and supply agreements with Grappolini and the Grappolini
Company. (Px 126 and 127). In hjs Jelter terminating the
Consulting Contract, Arthur Frigo informed Mr. Grappolini
that Lucini was terminating the agreement "due to the
~ 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
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Nol Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.IlL)
(Cite as: 2003 WL J 989605 (N,D,I)I,))
repealed violation of your fiduciary duties toward our
company." (Px 127). Mr. Frigo specifically noted that a
basis for the termination was Mr. Grappolini's bad faith
during negotiations over the Vegetal contract.
I. Defendants Compete with Lucini Using Vegetal Essential
Oil and Lucini's Trade Secrets
35. Unbeknownst to Lucini, Defendants began selling their
own products blending extra virgin olive oil with essential
oils as early as 1999. Defendants first marketed their
products in Italy and later expanded their sales to the United
States, Sweden, Denmark, England, and other parts of
Europe. (Px 10. 12, 141, 146, ISO). Defendants marketed
their products under various names, including Res
Essenziale, Cuoco, Ortoliva, Ortointavola, and under the
Grappolini name.
36. In the United Slates, Ihe Grappolini Company sold
single flavor products in specialty stores, Liberty Heights
Fresh and Sur La Table. Lucini had planned to sell its single
flavor gounnet line in specialty stores. Grappolini knew of
Lucini's plans to sell its single flavor gourmet line in
specialty stores, including Sur La Table, and its combination
flavor products in grocery stores, and knew that Lucini
made this distinction based on testing and research.
37. Grappolini's flavors consisted of Basil, Rosemary,
Garlic. Lemon and Orange. (Px 12 and 139). Lueini's
gourmet line had included each of these flavors. Lucini had
detcnnincd the most promising flavors by testing a wide
variety of possibilities with essential oils purchased from
Vegetal. Prior to receiving access to the results of Lucini's
market research, Mr. Grappolini had believed that the most
promising flavors for the essential oil products included
rose, lavender, and mint, but not lemon. Lucini's research
disclosed that basil, rosemary, garlic, and lemon were marc
likely to be successful than the flavors Mr. Grappolini had
preferred. Mr. Grappolini was told the results of Lucini's
research on flavor preferences.
38. Lucini spent several months working with Grappolini to
determine the ideal percentage of essential oil that should be
blended into extra virgin olive oil. In conducting tests to
make this detennination, Lucini paid Mr. GrappoIini his
Pagc 10
monthly consulting fee as compensation and paid for all of
the essential oils that were used in the tests. Lucini's testing
specifically detennined the correct percentage of essential
oil to use for each of the flavors the Grappolini Company
sold. Mr. Grappolini was privy to all ofrhe formulations and
used them in creating his own flavored olive oil products.
*1039. In marketing its essential oil products in the United
States, the Grappolini Company offered a selection of cach
of its flavors in a single box containing sample size bottles
of the oil. In addition, the GrappoJini Company sold larger
single boltles of each flavor, again packaged within a box.
In both instances, the box featured a window through which
a customer could see the color of the oil and looking
through the window and through the bottle eQuid see an
image behind of an olive or the flavor source on a
value-added package insert. This packaging configuration is
exactly what Lucini had designed for its own LEO trial pack
and had communicated to Grappolini.
40. On both the Res Essenziale packaging and the
Grappolini brand packaging, the Grappolini company used
hand drawn images of the flavor source (e.g. garlic,
rosemary, basil, lemon) strikingly similar to what Lucini
planned to use on its grocery line. Mr. Grappolini had
received each of Lucini's images digitally on a computer
disk. On the Grappolini brand products, Defendants used the
images on a clean white background in a manner that
mirrors Lucini's planned labels for its gounnet line. Lucini's
selection of its label designs was based on extensive and
expensive testing of over 300 candidate labels with focus
groups and analyzing the results in the context of
demographic information Lucini gathered; Grappolini's
selection of his label designs came after reviewing Lucini's
selections and learning the results of Lucini's rcsearch.
Lucini had considered and weighed the possibility of using
images depicting product use or what familiar foods the
product would enhance before dctermining that product
compOSItion should be depicted in the label image;
Grappolini reached the same conclusion for his own
products after learning of Lucini's research.
41. Lucini determined that flavored olive oil producls would
sell better in smaller bottles than the bottles used for
unflavored extra virgin olive oil. This was based on pricing
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(Cite as: 2003 WL 1989605 (N.D.m.))
considerations and how quickly it was determined an
average consumer would finish a bottle of each respective
product. Grappolini was told ofLucini's conclusions. Just as
Lucini had planned to use a smaller bottle for its LEO
products, Grappolini sold his essential oil products in bottles
smaller than those he typically used for unflavored products.
42. Lucini determined that its LEO products should be sold
at a single common price, even though the costs of the raw
material essential oil varied from flavor to flavor. Such a
pricing plan would eliminate potential customer confusion
and maximize sales. After learning of Lucini's pricing plan,
Grappolini set the prices for his own essential oil products at
a common price, without regard to the costs of producing
each respective flavor.
43. Lucini determined that in order to win new customers
for an unfamiliar product, it was important to include
value-added inserts containing recipes and instructions for
how to use the product. Lucini hired and worked with chefs
to create the recipes and shared its conclusions with
Grappolini. Again, Grappolini's U.S. essential oil products
contain recipes and instruction on how to use the products.
* J t 44. Lucini went through hundreds of drafts of the text
for its labels and advertising materials for its LEO products.
(See e.g. Px 168-70, 175, 184 and 214). It based these drafts
on its market research and tested these drafts in focus
groups before deciding on the most effective messages to
deliver and the descriptive temlS that would best capture the
interest of potential consumers. It shared with Me.
Grappolini many of the draft labels and told him of the
messages it wanted to deliver. The product literature of both
Lucini and the Grappolini Company refer to the "marriage"
of extra virgin olive oil with essential oils; both emphasize
"natural aromas" and make liberal use of the descriptive
terms "fresh," "organic," and "natural;" both refer to
"mountain" pepper; Lucini's refers to capturing the "peak of
freshness" and the "tastes of the harvest season" while
Grappolini's emphasizes "freshness" and "flavor" and states
his product "solves the problem of finding quality fresh
ingredient only when they arc in season;" both encourage
the consumer to "pour" or "drizzle" the oil over the
"finished dish."
Page II
45. For the products Lucini planned to use to introduce its
U.S. customers to essential oil products, it determined that
using label coloring and design to create a parchment-like,
old-world feel evoked positive responses from grocery store
consumers and others new to the product's uses. It used this
effect on both the boxes and labels of its original grocery
line products. The boxes, the labels, and the reasoning
behind them was shared with Grappolini. When Grappolini
first introduced his original U.S. product, he elected to use
his own parchment-like coloring and design effect. Lucini
determined that white labels and black bottles have an
impact on gourmet purchasers, and Grappolini used this
coloring scheme in Sweden when he sold to sophisticated
gourmet store Zeta.
46. While Lucini told select customers of its plans to sell a
superior form of flavored olive oil not before sold anywhere
in the world, Lucini told no one, outside of its trusted
consultants and employees, of its plans to use Vegetal
Progress as the key supplier of essential oil for this line of
products. Lucini knew that if this information were
disclosed to its competitors, this might have required it to
pay more to sign Vegetal to an exclusive contract or it might
lose its anticipated competitive advantage of being tirst to
market with the new product.
47. Lueini spent in excess of $800,000 developing the
marketing, design, and product development information it
shared with Grappolini. It treated this information as secret
and did not share it with anyone else. The Grappolini
Company's bookkeeper, Morena Botti, testified that she
could not identify any funds her company had spent on
research and development in connection with its essential
oil products. (Px 301, p. 37). Mr. Grappolini lestitied that he
never paid money to anyone to conduct any research, that he
alone was responsible for selecting the flavors used by his
company, for selecting the messages to be delivered in his
product labels, for selecting the images to be conveyed on
the labels, and for designing the window box packaging. (Px
303, pgs. 101-05, 225). Based on his knowledge of Lucini's
research and other confidential information, Mr. Grappolini
was able to make more informed decisions about how to
formulate and market his products than he would otherwise
have been able to do without a significant expenditure of
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money. (Px 303).
*12 48. Lucini would not have been willing to share its
confidential information with a competitor for any price,
particularly before it had secured an exclusive supply
contract with Vegetal and brought its products to market.
With regard to the identity of Vegetal as its key supplier,
Lucioi is unlikely to have disclosed the information for a fee
of anything less than its anticipated profits on its LEO
products over some years. With regard to its formulation,
design, and packaging information, the Court finds that a
reasonable royalty would be at least the substantial sum
Lucioi spent developing the information.
49. The Lucini trade secrets that defendants have used and
will continue to use in the future, unless pennanently
enjoined, unfairly erode Lucini's competitive position in the
market and limit the benefit Lucini can achieve from its
investment in market, product tonnulation and design
research. Unless pennancntly enjoined, Defendants will
continue to improperly use Lucini's trade secrets.
1. The Private Label Threat
50. Despite a large investment in time and money studying
its competition, Lucini is not aware of any product sold in
lhe United States with a flavor profile identical to Lucini
Premium Select extra virgin olive oil.
51. Without knowledge of Lucini's confidential methods for
creating its oil, it would be difficult, if not impossible, for a
competitor to duplicate Lucini Premium Select without a
large investment of time and money.
52. Lucjni's competitive position in the premium extra
virgin olive oil market is enhanced by the uniqueness of its
popular product. If Lucini Premium Select were to become
one of several copycat oils, the damage to Lucini's
reputation and market position would be irreparable.
53. Several of Lucini's customers sell private label extra
virgin olive oils. Although Lucini's customers list (including
some 13,000 stores) is maintained as confidential by Lucini
and has not been shared outside the company, Lucini
disclosed the identity of its largest and most important
customers to Grappolini while he was acting as a consultant
Page 12
subject to multiple confidentiality agreements. Sur La Table
has been one of Lucini's major customers.
54. After Lucini terminated Grappolini's consulting contract
in June 2000, Grappolini met with Sur La Table and admits
he discussed creating a private label extra virgin olive oil for
that chain of stores. (Px 303. pgs. 234-35). The flavor
profile of the oil Grappolini proposed private labeling for
Sur La Table was described in terms matching the flavor
profile Grappolini developed with Lucini for its Premium
Select flagship product.
55. Unless permanently enjoined, Defendants will use or
disc/ose Lucini's secret methods for producing its Premium
Selecl product.
K. Affinnative Defenses
56. Defendants offered no evidence at trial in support of
their affinnativc defenses. Defendants have failed to meet
their burden to establish sufficient facts to support their
affirmative defenses. Going further, the Court finds that
there is no evidence in the record supporting a finding of res
judicata or collateral estoppel. The Court will discuss the
issue of preemption in the Conclusions of Law.
L. Defendants Acted Willfully and Maliciously
*1357. Defendants acted in a willful and malicious manner
to misappropriate Lucini's trade secrets and corporate
opportunities. They acted to intentionally misappropriate
and use Lucini's (rade secrels for their own financial gain in
conscious disregard for Lucini's right to prolect and preserve
its trade secret information and in conscious disregard for
their duties as an agent to Lucini.
II. CONCLUSIONS OF LAW
A. Jurisdiction
58. The Court has jurisdiction over this diversity action
under 28 U.S.c. ~ 1332.
B. fIIinois Law Applies
59. The parties do not dispute that Illinois law applies. In
this regard, the Court finds that Lucini developed its trade
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(Cite as: 2003 WL 1989605 (N.D.III.))
secrets primarily in Illinois, that Defendants received certain
of Lucini's trade secret information in Illinois, and that
Lucinj's injury was suffered in Illinois, The June 1997
Non-Disclosure Agreement specifies that Illinois law
applies. (Px 15,116).
C. Breach of Fiduciary Duty--Count I
ill 60. To establish a claim for breach of fiduciary duty,
Lucini must prove: (1) the existence of a iiduciary duty on
the defcndant's part. (2) the defendant's breach of the duty,
and (3) damages proximately resulting from the breach,
Nevde v. Portes 193 llUd 433 444 250 lll.Dee. 733 739
N.E.2d 496 502 (2000); Rumanek v. Connellv 324
lll.App.3d 393 404 257 1ll.Dec. 436 753 N.E.2d 1062
1072 (Ist Dist.200n
illDJ 61. An "agency relationship engenders a type of
fiduciary affiliation in which the principal has the right to
control the agent's conduct, and the agent has the power to
act on the principal's behalf Once an agency relationship is
found, a fiduciary relationship arises as a matter of law."
Kirkr,,!!' v. Wiseearver 297 III.App.3d 826 830 231
III.Dec. 852. 697 N.E.2d 406. 410 (4th Dist.l998). "The
existence of an agency relationship constitutes a question of
fact for the trier of fact." id. As agents, Defendants owed
Lucini general duties of good faith, loyalty, and trust.
Kirkmlf: 297 III.AooJd at 832 231 III.Dee. 851 697
N.L2d at 411. In addition, Defendants owed Lucioi "full
disclosure of all relevant facts relating to the transaction or
affecting the subject matter of the agency." id.
HI 62. Defendants were Lucini's agents and owed Lucini a
fiduciary duty to advance Lucini's interests, not their own.
When Defendants obtained an exclusive supply agreement
with Vegetal for the Grappolini Company instead of for
Lucini, they were disloyal and breached their fiduciary
duties. Lucin; suffered substantial damages as a result of
this breach.
63. As a proximate result of Defendants' breach of their
fiduciary duties, Lucini suffered lost profits damages of at
least $4.17 million from selling its grocery line of LEO
products tram 2000 through 2003.
Page 13
.L2[QJ. 64. Punitive damages are appropriate where the
defendant has intentionally breached a fiduciary duty.
Obermmer v. Obermaier 128 llLAnoJd 602 610 X3
111 Doc. 627 470 N.E2d 1047. 1053 (1st Dist.l984); see
alsa O'Neill v. Gallant Ins Co 329 I1I.Ao.j).3d 1 J 66. 1177
263 I1I.Doe 898 769 N.E.?d 100 109 (Sth Disl.20021
(stating that "lIIinois courts are not hesitant to award
punitive damages in cases where there has been a flagrant
breach of fiduciary responsibility"). Defendants' breach of
their fiduciary duties was flagrant and intentional.
Defendants deliberately usurped a corporate opportunity
sought by Lucini, which Lucini had entrusted Defendants to
secure on Lucini's behalf. Although Defendants explicitly
accepted this trust and ensured Lucini that Mr. Grappolini
and his company would do as Lucini requested, Defendants
failed to do so and hid this fact from Lucini. A punitive
damage award of $1,000,000 against Defendants is
appropriate in order to punish Defendants and to deter
Defendants from committing similar acts in the future.
B. Fraud--Count III
*14 65. In its claim for common law fraud, Lucini must
prove: (]) the defendant made a statement, (2) the statement
was material in nature, (3) the statement was untrue, (4) the
defendant knew it was untrue or made the statement with
culpable ignorance of its truth or falsity, (5) the statement
was made for the purpose of inducing the plaintiff's reliance,
(6) the statement was actually relied upon by the plaintiff,
and (7) the plaintiff suffered injury as a result. Sma!! I'.
Sussman 306 III.Avo.3d 6.19. 646 2.19 tiLDe". 366 713
N.E.2d 1216 1221 (1st Dist.l999\.
66. Defendants committed fraud when Guiseppe Grappolini
falsely told Lucini that he had delivered Lucini's draft
contract to Vegetal and when he told Lucini that Vegetal
had agreed to enter into a worldwide exclusive agreement
with Lucini. These statements were material, known by
Defendants to be untrue when made, made to induce
reliance by Lucini, actually induced Lucini's reliance, and
caused injury to Lucini.
67. While a claim of fraud ordinarily cannot be sustained in
connection with a forecast or forward looking statement, the
Illinois Supreme Court has recognized that false promises or
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representations of future conduct is actionable as
promissory fraud if made in furtherance of a fraudulent
scheme. HPI Health Care Servo Inc. v Mr. Vernon Has/},
Inc. 131 IIl.2d 145 168 137 !ltDec. 19.545 N.E.2d 672
682 (1ll.1989); Bensdorf & Johnson Inc. v. Northern
Telecom LId 58 F.Supp 2d 874 881 IN D.IIlI999\
(accepting promissory fraud claim "where a plaintiff is able
to show that the misrepresentations are part of a 'scheme to
defraud" ').
68. "Where a party makes a promise of perfonnance, not
intending to keep the promise but intending for another
party to rely on it, and where that other party relics upon it
to his detriment, the false promise will be considered an
intended scheme to defraud the victim and will be
actionable," Concord indus. Inc. v. Harvcv indus. Com
122 I1LAno.3d 845 849-50 78 I1tDcc. 898 462 N E.2d
1252 1255 list Dist.19841.
ill 69. In promising Lucini that they would secure an
exclusive worldwide supply arrangement with Vegetal,
while never intending to do so because Mr. Grappolini
wanted such an arrangement for his own company,
Defendants committed promissory fraud. Because Lucini
has established that Defendants' fraud was in furtherance of
a scheme to beat Lucini to market and unlawfully compete,
Lucini has met its burden of proving promissory fraud,
70. But for Lucini's reliance on defendant's false statements,
it would have directly sought a worldwide exclusive supply
arrangement with Vegetal. Vegetal would have willingly
entered into such an arrangement with Lucini on at least the
same terms as the contract it entered into with the
Grappolini Company. As a result of Defendants' fraud and
promissory fraud, Lucini has suffered damages in the
amount of its lost profits on LEO products.
71. In seeking to recover punitive damages on its fraud
claim, Lucini must show in addition to simple fraud, "gross
fraud, breach of trust, or other extraordinary or exceptional
circumstances clearly showing malice and willfulness!'
Jannotta 1'. Suh\vav Sanmvich ShoDs Inc. 125 F.3d ')03.
511 nth Cir.1997) (internal quotations omitted). "One way
to satisfy that standard is through evidence indicating that a
fraud was designed to enrich the defendant without regard to
Page 14
its effect on others or was intended by him to harm the
plaintifT." /d.; see also Los Amiflos SuuemulIket Inc. v.
Melro. Bunk and TI'I/st Co. 306 1Il.App.ld 115. 129-30 239
I1I.Dec. 155.713 N.E.2d 686. 696 list Dist.1999) (holding
punitive damages may be awarded where the wrongful act
committed by the defendant is characterized by wantonness,
malice, oppression or other circumstances of aggravation as
well in a fraud action where false representations are
wantonly and designedly made).
*15 L8.l 72. Defendants were willful and malicious in
making statements to induce Lucini to believe they were
working on Lucini's behalf to secure the Vegetal contract.
Defendants' fraud was designed to enrich themselves
without regard to the harm it would inflict on Lucini.
Defendants' misrepresentations were wantonly and
designedly made to cheat Lucini for their own benefit.
Lucini is entitled to an award of $ 1,000,000 in punitive
damages to punish Defendants and to detcr them from
engaging in such conduct in the future.
C. Promissory Estoppel--Count IV
73. A claim for promissory estoppel must establish: (I) Ihe
defendant made an unambiguous promise, (2) the plaintiff
relied on the promise, (3) the reliance was expected and
foreseeable from the defendant's perspective, and (4) the
plaintiff's reliancc on the promise was detrimental. Pickus
Constmction and EquiD. \'. Am, Overhead Door 326
IlI.ADIJ.3d 518 523 260 IlLDcc. 512 761 N.E.2d 356.361
(2nd Dist.200 l).
74. Defendant Giuseppe Grappolini promised that he would
deliver to Lucini an exclusive worldwide supply contract
with Vegetal. This promise was unambiguous and clearly
within Defendant's power to carry out based on the
assurances he had received from Vegctal and the fact that he
was ultimately able to secure just such a contract for his
own company. Lucini relied on thiS promise and spent
hundreds of thousands of dollars preparing its products for
market based on the promise. Lucini also accepted
commitments to order its LEO products from its customers
based on Defendants' unambiguous promises thaI they
would deliver the Vegetal contract and the LEO product in
time for the 2000 San Francisco Fancy Food Show. Lucini's
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Not Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.IlI.)
(Cite as: 2003 WL 1989605 (N.D.III.))
relianc.e was expected and foreseeable to Grappolini and his
company and worked to the detriment of Lucini.
12l 75. The presumptive measure of damages for promissory
estoppel is the value of the promise. Go/d\'lick ~I. lCJd
Rea/tv 7S8 F.2d 456 464 (7th Cir.I986). However. Illinois
courts do allow a plaintiff in a promissory estoppel case to
recover damages for the profits it would have made had the
defendant kept his promise-provided it was necessary to do
justice to the plaintiff. /d. at 461. This is such a case because
the value of the Vegetal contract is directly related to
Lucini's business plan for its LEO project Accordingly, this
Court awards Lucini its lost profits of $4,170,000 on its
promissory estoppel claim.
D. Illinois Trade Secret Act--Count VI
76. To establish a misappropriation of a trade secret, a
plaintiff must prove: J) the existence of a trade secret, 2)
misappropriation of the secret information, and 3) that the
secret information was used in the defendant's business.
Comvosile Marine Pronc/!crs Inc. v. Van Del' Woude 962
F.2d 1263 1265-66 (7th Cir.1992).
Trade Secrets
77. The lllinois Trade Secret Act defines a "trade secret" as
"information, including but not limited to, technical or
non-technical data, a formula, pattern, compilation,
program, device, method, technique, drawing, process,
financial data, or list of actual or potential customers or
suppliers, that: (l) is sufficiently secret to derive economic
value, actual or potential, from not being generally known
to other persons who can obtain economic value from its
disclosure or use; and (2) is the subject of etTorts that arc
reasonable under the circumstances to maintain its secrecy
or confidentiality." 765 ILCS 1065/2(dl. A plaintiff must
prove that the true value of the information lies in the fact
that it is not generally known to others who could benefit
from using it, and that it made reasonable effort to maintain
secrecy. Manpren Research & DeY'. Corn. v. National
Chern. Co. Inc. 87 F.3d 937. 942 943 (7th Cir.1996l.
* J 6 78. Whether the information sought 10 be protected
qualifies as a trade secret focuses fundamentally on the
secrecy of such information. Thermodvne F'ood Servo
Page 15
Products lnc. v. McDonald's Corn 940 F.Suno. 1300
1304 IN.D.1I1.l996) (citing iVf<tneren 87 F.3d at 9421- see
also Stanwedf? Too! Warehouse Inc. \'. Mal' 272 I1I.AVp.ld
580. 588. 209 III.Doc. 281 651 N.E.2d 209 215 (I st
Dist.l995) (stating that the key factor to establishing
secrecy "is the case with which the infonnation can be
readily duplicated without involving considerable time,
effort or expense"); RKI lnc. \'. Grimes 177 F.Sunn.2d 859
874 (N.D 111.2001) (finding customer information not
readily available from any source of public infonnation to
be a trade secret).
79. The following factors are significant in detennining
whether a trade secret exists: (l) the extent to which the
infonnation is known outside of the plaintiffs business; (2)
the extent to which the information is known by the
employees and others involved in the plaintiffs business; (3)
the extent of measures taken by the plaintiff to guard the
secrecy of the infonnation; (4) the value of the information
to the plaintiff and to Ihe plaintiffs competitors; (5) the
amount of effort or money expended by the plaintiff in
developing the information; and (6) the ease or difliculty
with which the infonnation could be properly acquired or
duplicated by others. iLG indus. Inc v. Scott. 49 /IUd 88
93 273 N.E.2d 393 396 11971 ): Struta Mkte. Inc. ".
MlImh,'. 317 IIJ.App.3d 1054 1068, 251 III.Dec. 595 740
N.E.2d 1166 1177 (1st Dis(2000) (stating that a customer
list can be a trade secret if it takes considerable effort, time,
and money to compile).
80. Information meeting the lllinois Trade Secret Act
"secrecy" criterion may include customer lists that are not
readily ascertainable, pricing distribution and marketing
plans, and sales data and market analysis information. RKI
177 F.Suop.2d at 873.
UQ.l 81. Lucini's research, design and marketing plans,
product formulations and production methods, and customer
and supplier identities meet the secrecy requirement of the
llIinois Trade Secret Act. Such infonnation is not readily
ascertainable from any source of public information, was
developed through great expense and effort, and was not
shared with anyone outside of Lucini's senior management,
except for a few select individuals who were assisting
Lucini and who were subject to non-disclosure agreements.
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westlaw.
Not Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.IlL)
(Cite as: 2003 WL 1989605 (N,D,III.))
Lucini took reasonable steps to safeguard its confidential
information. See Sen';c:e Centers of" Chicavo. inc. v
Minoe"e 180 IlLAppJd 447 453-54 129 JIlDec 367.535
N.E.2d 1 I 32 1136 (lsI Dist.I989). Further, the iofomation
would be extremely valuable to Lucini's competitors, as it
has been to the Grappolini Company. Lucini's trade secrets
derive a substantial part of their value from being known to
Lucini and not its competitors. If Lucini's competitors were
to have access to Lucini's information, it would give them
an unfair competitive advantage over Lucini because (i)
they would know Lucini's plans and strategies while Lucini
would not know theirs, (ii) they would be able to utilize
detailed knowledge of the market and consumer preferences
without incurring the cost of obtaining such information
from studies and research, and (iii) they would be able to
anticipate and undercut the effectiveness of Lucini's market
and design schemes.
Misappropriation by Defendants
*17 82. The lIIinois Trade Secret Aet defines
"misappropriation" as:
(I) acquisition of a trade secret of a person by another
person who knows or has reason to know that the trade
secret was acquired by improper means; or
(2) disclosure or use of a trade secret of a person without
express or implied consent by another person who:
(A) used improper means to acquire knowledge of the
trade secret; or
(B) at the time of the disclosure or use, knew or had
reason to know that knowledge of the trade secret was: (I)
derived from or through a person who utilized improper
means to acquire it; (II) acquired under circumstances
giving risc to a duty to maintain its secrecy or limit its
use; or (Ill) derived from or through a person who owed a
duty to lhe person seeking rdief to maintain its secrecy or
limit its use~ or
(C) before a material change of position, knew or had
reason to know that it was a trade secret and that
knowledge of it had been acquired by accident or mistake.
765 ILCS 1065/2(b). The Aet further specities that improper
means of acquiring a trade secret include "breach of a
confidential relationship or other duty to maintain secrecy or
limit use." 7651LCS 1065J2(a).
Page 16
Defendants' Use of Trade Secrets
83, The user of another's trade secret is liable even ifhe uses
it with modifications or improvements upon it effected by
his own effort~, so long as the substance of the process used
by the actor is derived from the other's secret Ma/1f{ren 87
F 3d at 944' see also Thermodl'ne 940 F .Supp at 1308
("Although a product appears to be a new or modified
product, a violation of the fTSA occurs if the modification
or new product was substantially derived from another's
trade secret."). The limited extent to which defendant
modified Lucini's essential oil products and packaging to
suit themselves does not change the fact that such products
and packaging are substantially derived from Lucini's trade
secret informalion.
llU 84. Defendants misappropriated Lucini's valuable trade
secrets. Defendants acquired Lucini's trade secrets under
circumstances giving rise to a duty to maintain their secrecy.
Defendants' assistant Marco Milandri testified that he
understood that Lucini's Premium Select and LEO product
fonnuJations were company secrets. Likewi~e, Grappolini
testified that he understood the secrecy of trade secret
infonnation communicated to him. Indeed, his various
contracts specified that he would maintain the
confidentiality of Lucini's research conclusions. After
Defendants had secretly secured their own exclusive supply
contract with Vegetal, lhey hid this fact from Lucini in order
to induce Lucini to continue sharing its trade secret
research, strategies, and plans with Grappolini.
85. Lucini's decision lo focus its LEO project around
essential oils from Vegetal Progress was a closely guarded
trade secret. When Mr. Grappolini used this infonnation on
behalf of the Grappolini Company 10 allow it unfettered
access to negotiate its own exclusive arrangemenl with
Vegelal, it is necessary to conclude that the Grappolini
Company "acquired" the information with full knowledge
that: (i) Lucini had not consented to the use of the
information by a competitor, and (ii) Mr. Grappolini had no
right to transmit or use the information for his own purposes
or on behalf of the Grappolini Company.
*18 86. Defendants also unlawfully misappropriated
Lucini's trade secret information because it is inevitable,
absent an injunction, that Defendants will use the
(() 2006 Thomson/West. Nu Claim to Orig. U.S. Govt. Works.
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V\€st!aw.
Not Reported in F.Supp.2d
Not Reported in F$upp.2d, 2003 WL 1989605 (N.D.III.)
(Cite as: 2003 WL 1989605 (N.D.III.))
infonnation they obtained under a duty of secrecy in
connection with their consulting and olive oil businesses.
The inevitable use of Lucini's trade secrets would give
defendants a substantial unfair competitive advantage over
Lucini. PepsiCo. Inc.. 54 FJd at 1269-70; Slra/a Markelinv
Inc. 251 III Dec 59\ 740 N.E 2d a' 1178 ("We believe
PepsiCo correctly interprets lllinois law and agree that
inevitable disclosure is a theory upon which a plaintiff in
Illinois can proceed under the (Illinois Trade Secrets] Act").
87. Lucini has established that the disclosure of trade secrets
is inevitable by demonstrating: (i) that it is in direct
competition with the Grappolini Company with respect to
premium extra virgin olive oil and essential flavored olive
oils, (ii) that within his company, Mr. Grappolini has
responsibility for all product design, formulation, and
marketing-the very subject about whieh he received Lucini's
trade secret infoffilation, and (iii) there are no steps the
Grappolini Company has taken or couid take to prevent Mr.
Grappolini from using Lueini's trade secret information as
he fulfills his duties to the Grappolini Company_ PepsiCo,
Inc.. 54 F.3d al 1269-70. As in the Seventh Circuit's
PepsiCo case, by virtue of his position with the Grappolini
Company, it is inevitable that Mr. Grappolini will use or
disclose Lucini's trade secrets as his company competes
with Lucini.
Llll 88. Under the lIIinois Trade Secret Act. "actual or
threatened misappropriation may be enjoined." 765 ILCS
1065/3(a). "(WJhere a statute expressly authorizes
injunctive rcliet~ a plaintiff need only show defendant's
violation of the Act and that plaintitfhas standing to pursue
the cause.... The general rules of equity requiring a showing
of irreparable injury and a lack of an adequate remedy at
law need not be shown." Illinois Bell Tel. Co. v. Lake
Countv Grodin" 313 1II Anp.:Jd \ 84. 189. 245 Ill.!)ec. 821
728 N.E.2d 1178. 1181 (2d Disl.2000} (interpreting the
lllinois Underground Utility Facilities Damage Prevention
Act) (internal citations omitted). Thus, to the extent that
Lucini's request for injunctive relief is based on Grappolini's
violation of Lucini's trade secret, Lucini is not required to
establish irreparable injury and a lack of adequate legal
remedy _
89. Alternatively, Lucini has established that it will sutfer
Page 17
irreparable harm if a pennanent injunction does not issue,
Ihat Lucini has no adequate remedy at law, that the injury to
Lucini if injunctive relief does not issue would exceed any
hann to Defendants if an injunction is entered, and that the
public interest supports the issuance of an injunclion.
Chi('a~~() Schoof Ref(Jrm Bd. (~r T rusl{'e5 v. Di\N>ndied
Pharm. Serv. Inc. 40 F.Supp.2d 987.991 (N.D.lII.I9991 (to
obtain a permanent injunction, plaintiff must show: (1)
actual success on the merits; (2) plaintiff does not have an
adequate remedy of law or that it will suffer irreparable
hann without the injunction; (3) the balance of hamlS
between the parties favors cntry of an injunction; and (4)
entry of the injunction will not hann the public interest).
The Court will issue an injunction to protect Lucini from the
future use of its trade secret information. The damage award
is inadequate because the LEO project could produce profits
to Lucini for many years beyond the four years for which
this Court has awarded damages. In addition, the damages
have been conservatively computed,
*1990. In addition to injunctive relief, Lucini is entitled to
damages from the unauthorized use and disclosure of
Lucini's trade secret infonnation in addition to an
injunction. See RKl Inc. 1'. Grimes 200 F.Supp.2d 916. 926
(N.D.!l1.2002). Under the ITSA.
[d]amages can include both the actual loss caused by the
misappropriation and the unjust enrichment caused by
misappropriation that is not taken into account in
computing actual loss. lf neither damages nor unjust
enrichment caused by the misappropriation are proved by
a preponderance of the evidence, the court may award
damages caused by a misappropriation measured in terms
of a reasonable royalty for a misappropriator's
unauthorized disclosure or use of a trade secret.
765 fLCS 106514(a). Actual damages can include lost sales
as a result of the competitor's entry into a illurket, as well as
price erosion. Rolon Barrier lnc. v S!cmJev ft'orks 79 FJd
1112 \ 119-20 (Fed.c'lr.1996l.
illJ 91. While Lucini's lost profits arc necessarily uncertain,
that poses no barrier to an award of actual damages. The
United States Supreme Court has held on many occasions
that when a defendant's unlawful act keeps a plaintiff out of
a market, specific and certain proof of the actual amount of
:b> 2006 ThomsonlWest. No Claim to Orig. US Govt. Works.
, '.
W?stlaw.
Not Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.l1I.)
(Cite as: Z003 WL 1989605 (N.D.m.))
losses is not required. J. Truett Pavne Co. Inc. v. Clllysler
Motors COI'D. 451 U.S 557. 565-66 101 S.C!. 1923 68
L.Ed.2d 442 (! 98 Il. "Any other rule would enable the
wrongdoer to profit by his wrongdoing at the expense of his
victim. It would be an inducement to make wrongdoing so
effective and complete in every case as to preclude any
recovery, by rendering the measure of damages uncertain .n
BirrC"/ow t', RKO Radio Pictures Inc. 327 U.S. 251. 264.65
66 S.Ct. 574 90 L.Ed. 652 (! 946); see also S1ill.;i
Parchment Co. v. Paterson Parchment Pana Co. 282 U.S.
555 563 51 S.C<. 248. 75 L.Ed. 544 (193]) ("Where the
tort itself is of such a nature as to preclude the ascertainment
of the amount of damages with certainty, it would be a
perversion of fundamental principles of justice to deny all
relief to the injured person, and thereby relieve the
wrongdoer from making any amend for his acts. "). In this
case, Lucini has established its lost profits through credible
forecasts which would meet its ordinary burden of proof of
establishing the amount of its lost profit damages.
Alternatively, to the extent Lucini's lost profits are
necessarily uncertain as a result of Defendants' acts to keep
Lucini out of the essential oil market, the Court finds that
Lucini has provided sufficient evidence to meet the lesser
burden that is applicable to such a situation. Defendants'
failure to disclose in discovel)' (much Jess, offer proof at
trial) of their own sales and profits from essential oil
products leads the Court to draw the inference that such
information would support Lucini's forecasts.
92. The Court will award Lucini its lost profits of
$4,170.000. together with its $800,000 of development costs
for LEO project.
Punitive Damages
llil 93. "If willful and malicious misappropriation exists,
the court may award exemplary damages in an amount not
exceeding twice any award made under subsection (a)." 765
ILCS 1065/4(bl. Willful and malicious misappropriation
includes intentional misappropriation as well as
"misappropriation resuhing from the conscious disregard of
the rights of another." MamTren 87 .F.3d at 946. Defendants
engaged in willful and malicious misappropriation as
evidenced by their use of the infonnation for directly
competitive purposes and their efforts to hide the
Page 18
misappropriation and, accordingly, the Court will award
$\ ,000,000 in exemplary damages. Such an award is
necessary to discourage Defendants from engaging in such
conduct in the future.
Attorney's Fees
*2094. The Illinois Trade Secret Act authorizes an award of
reasonable attorneys' fees to the prevailing party where
willful and malicious conduct is found to have OCCUlTed.
765 ILCS 1065/5. This is an appropriate case for an award
of attorney's fees and computerized research in the total
amount of $750,065.28 as set forth in Lucini's petition for
attorney's fees and costs. The Court finds the time and effort
to be reasonable, the hourly rates arc the market rates fl)f
Plaintiffs counsel. Counsel has done an excellent job in this
difficult, hard fought litigation.
95. Lucini seeks a total of $736,311.54 for atlomcy's fees
and computerized research in the amount of $13,753.74.
Included in the petition for fees is $24,400.29 for attorney's
fees rendered by the Milan, Italy firm of Simmons &
Simmons related to this litigation. The Court finds these
fees to be reasonable and necessary for the prosecution of
this case.
96. Lucini bears the burden of proving the reasonableness of
its attorney's fees. flenslev 1'. Eckerhart 461 U.S. 424 437
103 S.C<. 1933 76 L.Ed.2d 40 (l98.J1. The process of
detennining a proper fee award begins with a calculation of
the "lodestar" -the number obtained by multiplying the
number of hours reasonably expended by a reasonable
hourly rate. Eddleman v. Switchcra/; Inc. 965 F.2d 422
424 17th CiLI992). The Court may then reduce or augmenl
the lodestar based on a variety of factors: (I) the time and
labor required; (2) the novclly and difficulty of the question;
(3) lhe skill requisite to perfonn the legal service properly;
(4) the preclusion of employment by the attorney due to
acceptance of the case; (5) the customary fee; (6) whether
the fee is fixed or contingent; (7) any time limitations
imposed by the circumstances; (8) the amount involved and
the results obtained; (9) the experience, reputation, and
ability of the attorneys; (10) the undesirability of the case;
(11) the nature and length of the professional relationship
with the client; and (12) awards in similar cases. Hem'iev
461 \1 S. at 430 n. 3. Finally. Ihe degree ofa party's overall
(Q 2006 Thomson/Wes!. No Claim to Orig. U.S. Gov!. Works.
'. , '..
westlaw.
Not Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.Ill.)
(Cite as: 2003 WL 1989605 (N.D.III.))
success is critical in determining the reasonableness of a fee
award. Farrarv. Hobbv 506 U.S. 103 114 113 S.Ct. 566
121 L.Ed.2d 494 (19921. The standard is whether the fees
are reasonable in relation to the difficulty, stakes, and
outcome of the case. Bankston v. State ollllinois 60 F.3d
1249 1256 (71h Cir 19951.
97. The first step in calculating the lodestar is to determine a
reasonable hourly rate. Reasonable hourly rates are
determined by the prevailing market rates in the relevant
community Blum v. Stenson 465 U.S. 886 895 104 S.Ct.
1541 79 L.Ed.2d 891 (19841. "[T]he market rate is Ihe rate
that lawyers of similar ability and experience in the
community normally charge their paying clients for the type
of work in question." Bankston 60 F.3d at 1256. The Court
has reviewed the affidavits of Lucini's counsel and finds that
the hourly rates set forth in the fee petition are reasonable.
*21 98. Lucini has excluded from its request time which
was expended on claims other than the Illinois Trade
Secrets Act claims, services performed overseeing the
European arbitration and Italian criminal proceedings. In
addition, over $50,000 in time was previously excluded for
time spent by junior lawyers who participated in hearings
primarily for training purposes and where the firm felt work
was not performed as efficiently as possible.
Ll.2l 99. This Court recognizes that Lucini is only entitled to
compensation for the time spent in furtherance of the
specific action for which fees are allowed. Where, as here,
Lucini is successful on one or more claims all based on a
common core of facts, counsel can collect fees for all
litigation involving the trade secret count against
Defendants. Rosario v. Livadit;s 963 F.2d 1013 1020 nth
C(r.19921; Becov;c v. eilv a(Chicaeo 296 IIl.Aoo.3d 236
242. 210 llLDec. 766. 694 N.E 2d 1044 1048 (1st
Dist.1998) (applying Illinois law). Lucini has excluded the
time devoted to claims other than the trade secret claim. The
Court finds the exclusion to be proper.
100. The Court allows the computerized legal research
charges in the amount of $13,753.74, which represents a
10% reduction for non-ITSA research. /n the Matter of
Continental Illinois Securities Utif7ation 962 F.2d 566 570
nth Cir.1992l (allowing recovery for computerized research
Page 19
costs).
Sanctions
101. The Court awards non~taxable costs in the amount of
$41,848.00 as a result of sanctions previously entered by
Judge Norgle. These out-of~pocket costs were the result of
last minute deposition cancellations on two separate
occasions and for violation of this Court's standing order
regarding settlement.
E. Declaralory Judgment--Count VII
[lQ] 102. Under [he Declaratory Judgment Act. 28 U.S.c. 0
2201, "any court of the United States may declare the
rights and other legal relations of any interested party
seeking such declaration." 2R U.S.c. IS 2201(a). A court may
hear such a declaratory judgment action when it will settle a
particular controversy and clarify the legal relations in issue.
"In other words, there must be 'an actual, substantial
controvcrsy, betwccn parties having adverse legal interests,
of sufficient immediacy and reality to warrant the issuance
of a dcclaratory judgment." 'Johnson \', Rohr-ViJfc Motors
Inc. 64 F.Supp.2d 737 739 (N.D.1ll.19991 (internal
quotations omitted).
103. Lucini asserts that it had a right to terminate its
contractual relationships with Defendants and to break off
negotiations over a more expanded relationship based on its
discovery of Defendants' breach of fiduciary duty and
misappropriation and use of Lucini's trade secrets.
Defendants dispute that they committed any of the
underlying acts (although they offered no evidence at trial in
support of their position) and therefore deny that Lucini had
any right to terminate the contracts or break off
negotiations. There is an actual dispute between the parties
as to the right to terminate if material fraud or breach of
fiduciary duty occur. A determination of the validity of
Lucini's termination for the stated reasons is of sufficient
immediacy and importance that it merits the issuance of a
declaratory judgment because it will impact the parties'
resolution of ongoing disputes from their fractious
"divorce."
*22 104. Based on the Court's determination that
Defendants willfully misappropriated Lucini's trade secrets,
11) 2006 Thomson/West. No Claim 10 Orig. U.S. Govt. Works.
.. l ....
\t\kstlaw:
Not Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.IlL)
(Cite .s: 2003 WL 1989605 (N.DJII.))
the Court finds that Lucini is entitled to a declaration that it
properly tenninated its contractual relations with
Defendants and it properly broke off negotiations over a
more expanded relationship with Defendants.
F. Preemption Revisited
un 105. The lTSA displaces "conflicting tort,
restitutional)', unfair competition, and other laws of this
State. providing civil remedies for misappropriation of a
trade secret" 765 ILCS 1065/8ta). This preemption does not
affect contractual remedies or "other civil remcdie.s that are
not based upon misappropriation of a trade secret." W
ILCS 1065/8tbl. Interpreting this language, courts have
determined that the [TSA is the exclusive remedy for
misappropriation of trade secrets, but it does not affect
common law claims based on other theories. Autamed
Techn%~ies. Inc. v. Eller 160 F.Supp.2d 915. 922
IN D III 2001). Thus. claims based on something more than
the trade secret misappropriation are not preempted. Thomas
& Betts Com. v. Panduit Corn. 108 PSupn 2d 968. 971
IN.D.lIL2000).
106. At the motion to dismiss stage, this Court's decision
denying Defendant's motion to dismiss counts I~~ V of the
First Amended Complaint was made without the aid of a
definitive interpretation of the clause from the Supreme
Court of Illinois. Lucini ftalia Co. v. Granuoini 231
F.Sunu.2d 764 767 tN.D.IlI.2002\. The Supreme Court stilI
has nol clarified the issue; however, the Court makes the
following determination based on the same law, but with a
more developed factual record.
107. At the motion to dismiss stage, the Court sustained the
common law claims to the extent they were independent of
the trade secret claim. At this stage, the Court finds that the
facts relating to the breach of fiducial)' duty, fraud, and
promissory estoppel claims are inextricably linked to the
trade secret claim. All facts are part of the same trade secret
theft: Defendants abused their position to obtain and
inappropriately use secret information to their advantage
and the Plaintiffs detriment. Accordingly, all damages are
awarded under the trade sccret count This Court made
findings and entered judgment regarding the other counts, in
the event on later review they are deemed to survive
Page 20
independently. The Court intends that Plaintiffls recover no
more than the damages awarded under the minois Trade
Secrets Act count
Ill. CONCLUSION
Defendants stole Plaintitfs trade secrets and their corporate
opportunity. They deprived a family of their financial future
and business dreams. Justice requires that Defendants be
made to pay for the damages they caused to Plainti Ff and
that Defendants be stopped from thrther unlawful conduct
involving Plaintiffs trade secrets. For the reasons set forth
in this opinion, the Court directs the Clerk of the Court to
entcr judgment in favor of Plaintift~ Lucini Italia Company,
and against Defendants, GUlscppe Grappolini and
Grappolini G. 5.r.1., an Hahan limited liability company, by
means of the Final Judgment Order dated April 24, 2003,
granting Plaintiff monetary damages in the amount of
$6,761,913.20, a declaratOl)' judgment, and a permanent
injunction against Defendants.
FiNAL JUDGMENT ONDEN
*23 This matter was heard by the Court in a bench trial on
February 24 and 25, 2003. The parties have consented 10 the
jurisdiction of a Unitcd States Magistrate Judge pursuant 10
28 U.S.c. .s 636(c). The parties were givcn notice of the
trial and the opportunity to present their cvidence. The
issues have been tried and the Court has entered a
Memorandum Opinion and Order dated April 24, 2003.
IT IS HEREBY ORDERED AND ADJUDGED that wilh
respect to Plaintiffs First Amended Complaint, judgment is
entered in favor of Plaintiff, Lucini italia Company
C'Lucini"), and against Defendants, Giuseppe Grappolini
and Grappolini G.s.r.l., ("Defendants") on Counls I (breaeh
of fiduciary duty). III (fraud), IV (promissory estoppel), VI
(Illinois Trade Secrets Act) and VIl (declaratory Judgmcnl).
and that Counts II (constructive fraud) and V (unjust
enrichment) were withdrawn before trial. Because the Court
finds that Count VI preempts the claims under Counts 1, III
and IV, no relief will be awarded pursuant to Counts I, III
and IV.
In accordance with the findings of fact and conclusions of
law set forth in the Memorandum Opinion and Order of the
Court, judgment is entered in favor of Plaintiff, LUclni ltalia
@ 2006 Thomson/Wes!. No Claim to Orig. U.S. Gov!. Works.
, , .
\i\€stlaw.
Not Reported in F.Supp.2d
Not Reported in F.Supp.2d. 2003 WL 1989605 (N.D.IIL)
(Cite as: 2003 WL t989605 (N.D. III.))
Company, and against Defendants, Giuseppe Grappohni and
Grappolini G. s.r.l, jointly and severally as follows:
MONETARY DAMAGES
1. Defendants are ordered to pay to Plaintiff
compensatory damages for lost profits in the amount of
$4,170.000.00.
2. Defendants are ordered to pay to Plaintiff
compensatory damages for development costs of its
Lucini Essential Oils product in the amount of $800,000.
3. Defendants arc ordered to pay to Plaintiff punitive
damages in the amount 01'$1,000,000.00.
4. Defendants are ordered to pay to Plaintiff attorney's
fees and nontaxable costs in the amount 0[$750,065.28.
5. Defendants arc ordered to pay to Plaintiff sanctions in
the amount 01'$41,848.00.
6. The total amount of monetary damages awarded to
Plaintiffs: against Defendants as set forth in paragraphs 1.
through 5. above is $6,761,913.20.
DECLARA TORY JUDGMENT
7. The Court declares that Plaintiff had good and
sufficient cause to withdraw from its contractual
relationship with Defendants and to cease its negotiations
of new contracts with Defendants based on Defendants'
misappropriation of Lucini's trade secrets.
PERMANENT INJUNCTION
8. Because Defendants have unlawfully stolen and are
using Plaintiffs trade secrets for their own benefit, the
Court hereby issues a permanent injunction barring
Defendants, and any of their officers, agents, servants,
employees and attorneys, and all persons in active concert
or participation with them, who receive actual notice of
this order by personal service or otherwise, from
disclosing or using, directly or indirectly l the results of
Plaintiffs marketing research, marketing plans, product
designs, formulations and/or flavor profiles for premium
extra virgin olive oil products, including essential oil
flavored products. Without limitation, the Court's Order
bars Defendants (a) from marketing essential oil flavored
olive oils either in the single flavors of garlic, rosemary,
lemon, pepper, or basil or in combination flavors
substantially similar to Lucini's Savory Lemon with
Mountain Black Pepper, Robust Garlic with Wild
Page 2 I
Rosemary, Tuscan Herb with Summer Basil; (b) from
marketing or selling any products utilizing essential oils
purchased from Vegetal Progress; (c) from using
drawings or images substantially similar to those Lucini
disclosed to Defendants (which include the drawings and
images on Trial Exhibits 9-12); (d) from using the
packaging configuration of Lucini's LEO Trial Pack; and
(e) from selling, disclosing, private labeling, or offering
consulting services with respect to extra virgin olive oil
with the chemical and organoleptic characteristics of
Lucini Premium Select (or any substantially similar oil) or
the methods of creating such oil.
*24 9. The Court finds there is no just cause to delay
enforcement or appeal of this Final Judgment Order.
lO. Plaintiff is awarded its court costs and shall file its bill
of costs on or before May 7, 2003.
II. The Court shall retain jurisdiction to enforce the terms
of this Final Judgment Order.
Not Reported in F.Supp.2d. 2003 WL 1989605 (N.D.JlJ.)
Motions, Pleadings and Filings (Back to ton)
2003 WL 23524778 (Trial Motion. Memorandum and
Affidavit) Lucini's Motion to Place Certain Portions of the
Trial Record Under Seal (Mar. 10,2003)
. 2003 WL 2352477} (Trial Mution, Memorandum and
Affidavit) Plaintiffs Petition for Attorney's rees and Costs
(Mar. 06, 2003)
. 2003 WL 23524767 (Trial Motion, Memorandum and
At1idavit) Lucini's Motion For Sanctions (Feb. 10,2003)
. 200} WL 23524761 (Trial Motion. Memorandum and
Affidavit) Lucini's Motion in Limine to Exclude the
Testimony of Defendants (Feb. OJ. 200})
. 2003 WL 23524763 (Trial Motion. Memorandum and
Affidavit) Lucini's Motion in Limine to Exclude Witnesses
not Disclosed and Responsive Evidence not Provided in
Discovery (Feb. 03, 200})
. 2003 WL 23524758 (Trial Motion. Memorandum and
Affidavit) Motion to Compel Responses to Written
Discovery (Jan. 07. 2003)
rD 2006 ThomsonlWest. No Claim to Orig. U.S. Govt. Works.
.. ,
V\€stJa-w.
Not Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D.I1I.)
(Cite as: 2003 WL 1989605 (N.D.IlI.))
. 2002 WL 32510271 (Trial Motion, Memorandum and
Affidavit) Motion to Compel (Dec. 16, 2002)
. 2002 WI, 32510254 (Trial Motion, Memorandum and
Affidavit) Renewed Motion to Compel Deposition of Mario
Marchini (Nov. 27, 2002)
. 2002 WL 32510261 (Trial Malian, Memorandum and
Affidavit) Renewed Motion to Compel Deposition of Mario
Marchini (Nov. 27, 2002)
. 2002 WL. 32510697 (Trial Pleading) Answer and
Affirmative Defenses to Counts I Through V of Plaintiffs
Firsl Amended Complainl (Nov. 27, 2002)
. 200? WL 32678539 (Trial Pleading) Answer and
Affirmative Defenses to Counts I Through V of Plaintiffs
First Amended Complaint (Nov. 27, 2002)
. 2002 WI. 12510246 (Trial Motion, Memorandum and
Affidavit) Motion to Compel (Oct. 07, 2002)
. 2002 WL 32510239 (Trial Motion, Memorandum and
Affidavit) Plaintiff's Reply Memorandum of Law in Support
of Its Motion for Sanctions (Oct. 01.2002)
. 2002 WL 32678537 (Trial Motion, Memorandum and
Affidavit) Plaintiffs Reply Memorandum of Law in Support
of Its Motion for Sane lions (Oct. 0 1,2002)
. 2002 WI. 32678533 (Trial Motion, Memorandum and
Affidavit) Defendants' Response to Plaintiffs Emergency
Motion for Sanctions (Scp. 24, 2002)
. 2002 WL 32510226 (Trial Motion, Memorandum and
Affidavit) PlainliH's Motion for Sanctions (Sep. 06,2002)
. 2002 WI. 32678526 (Trial Motion, Memorandum and
Affidavit) Plaintiffs Motion for Sanctions (Sep. 06, 2002)
. 2002 WI. 32510219 (Trial Motion. Memorandum and
Affidavit) Plaintiffs Emergency Motion for Sanctions (Aug.
15,2002)
. 2002 WL 32510213 (Trial Molion, Memorandum and
Affidavit) Defendants' Reply Memorandum in Support of
Motion to Dismiss Counts Iv V of First Amended Complaint
Page 22
(Aug. 12.2002)
. 2002 WL 32678522 (Trial Malian. Memorandum and
Affidavit) Defendants' Reply Memorandum in Support of
Motion to Dismiss Counts I-V of First Amended Complaint
(Aug. 12, 2002)
. 2002 WI. 32678515 (Trial Motion. Memorandum and
Affidavit) Lucini's Response to Defendants' Motion to
Dismiss Counts I- V (Aug. 05, 2002)
. 2002 WI. 32510208 (Trial Motion. Memorandum and
Affidavit) Plaintiffs Motion to Compel and for Sanctions
(Jul. 31, 2002)
. 2002 WL 32510695 (Trial Pleading) Answer and
Affirmative Defenses to Counts VI and VII of Plaintiffs
First Amended Complain I (Jul. 29, 2002)
. 2002 WL 32678509 (Trial Pleading) Answer and
Affirmative Defenses to Counts VI and VII of Plaintiffs
Firsl Amended Complainl (Jul. 29, 2002)
. 2002 WL 32510197 (Trial Motion. Memorandum and
Affidavit) Motion for Entry of Scheduling Order (Jul. 26,
2002)
. 2002 WL 32510201 (Trial Motion, Memorandum and
Affidavit) Defendants' Motion to Dismiss Counts I-V of
First Amended Complaint (Jul. 26, 2002)
. 2002 WI. 32510691 (Trial Pleading) Firsl Amended
Complaint (Jun. 28. 2002)
. 2002 WL 32678498 (Trial Pleading) First Amended
Complaint (Jun. 28.2002)
. 2002 WI. 32510190 (Trial Motion, Memorandum and
Atlidavit) Motion to Compel Production of Documents and
Supplementation of Interrogatory Answers (Jun. 19,2002)
. 2002 WL 32510186 (Trial Motion, Memorandum and
Affidavit) Defendants' Motion to Dismiss Counts I, II, Ill,
IV, V and VI (Jun. 11.2002)
. 2002 WI. 32510688 (Trial Pleading) Answer 10 Counts
VII and VIII of Complaint for Injunctive and Other Relief
(!;J 2006 Thomson/West No Claim 10 Orig. U.S. Govt. Works.
'-, to "
V\estlaw.
Not Reported in F.Supp.2d
Not Reported in F.Supp.2d, 2003 WL 1989605 (N.D. ilL)
(Cite as: 2003 WL 1989605 (N.D.IIL))
and Affirmative Defenses (Jun. 11,2002)
. 2002 WI. 32678491 (Trial Pleading) Answer to Counts
VII and VIll of Complaint for Injunctive and Other Relief
and Affirmative Defenses (Jun. 11,2002)
. 2002 WL 32510182 (Trial Molion, Memorandum and
Affidavit) Agreed Motion for Entry of Cnnsent Order (Jun.
10, 2002)
. 2002 WI. 32510155 (Trial Motion, Memorandum and
Affidavit) Plaintiff's Motion for Default Judgment or in the
Alternative to Compel (Apr. 02, 20(2)
. 2002 WI. 32510147 (Trial Motion. Memorandum and
Affidavit) Plaintiffs Motion to Reconsider the Court's
Denial of its a Preliminary Injunction as "Moot" (Feb. 20,
2(02)
. 2002 WI. 32678479 (Trial Motion. Memorandum and
Affidavit) Grappolini's Response to Lucini ]talia's Motion to
Compel (Feb. 14.2(02)
. 2002 WI. 32678486 (Trial Motion, Memorandum and
Affidavit) Plaintiffs Response to Defendants' Motion to
Stay Discovery (Feb. ]4.2002)
. 2002 WI. 32510129 (Trial Motion. Memorandum and
Affidavit) Defendants' Motion to Stay Discovery Until
March 26, 2002 (Feb. 13.20(2)
. 2002 WI. 32510136 (Trial Motion. Memorandum and
Affidavit) Plaintiffs Motion to Compel and to Set
Discovery Schedule (Feb. 13,2002)
. 2002 WI. 32678476 (Trial Motion, Memorandum and
Affidavit) Plaintiffs Response To Defendants' Motion To
Supplement (Jan. 17,2002)
. 2002 WI. 32510121 (Trial Motion. Memorandum and
Affidavit) Defendants' Motion to Supplement Their Motion
to Dismiss with Newly Discovered Evidence (Jan. 16,2002)
. 2002 'Vt 32510110 (Trial Motion, Memorandum and
Aflidavit) Reply Memorandum in Support of Plaintiffs
Motion for Rule I I Sanctions (Jan. 03. 20(2)
Page 23
. 2002 WI. ,2678471 (Trial Motion. Memorandum and
Affidavit) Reply Memorandum in Support of PJainlitTs
Malian for Rule I I Sanctions (Jan. 03. 2002)
. 2001 WI. 34554264 (Trial Motion, Memorandum and
Affidavit) Defendants' Motion to Supplement Its Response
to Plaintiffs Motion for Sanctions (Dec. 19,2001)
. 200] WI 14554260 (Trial Motion, Memorandum and
Affidavit) Defendants' Memorandum in Opposition to
Plaintiffs Motion tor Rule II Sanctions (Dec. 14, 200 I)
. 2001 WI. 14667407 (Trial Motion. Memorandum and
Affidavit) Defendants' Memorandum in Opposition to
Plaintiffs Motion for Rule II Sanctions (Dec. 14, 200 I)
. 1:01CV06405 (Docket) (Aug. 17,2001)
END OF DOCUMENT
I\J 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works.
f'<j
\"d
c~
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA - CIVIL ACTION EQUITY
JACK GAUGHEN REAL TON, ERA
3915 Market Street
Camp Hill, Pelillsylvania 1701 I,
Plaintiff,
vs.
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants.
)
)
)
) No. 05-6162 - Civil
)
)
)
)
)
)
)
)
)
DEFENDANTS' RESPONSE TO PLAINTIFF'S NEW MATTER RAISED IN
ANSWER TO DEFENDANTS' PETITIONS TO OPEN JUDGMENT
Now come the Defendants, Ada George, Jeffrey George and Preferred Realty
LLC, trading and doing business as Exit Preferred Realty, and responds to the New
Matter of Plaintiff as follows:
26. The averments of Paragraphs 1 through 25 of Defendants' Petitions to
Open are incorporated herein by reference as if set forth at length.
27. Admitted.
28. Denied. To the contrary the Preliminary Objections are meritorious and
the failure to file can be explained by defense counsel's absence from the
Commonwealth, the failure of Plaintiffto file an Affidavit of Service in this Matter until
January 4,2006.
29. Admitted in part, denied in part. It is admitted that the Preliminary
Objections are as attached to the Petition. It is denied that said Preliminary Objections
lack merit.
30. Admitted.
3 I. Admitted in part, denied in part. It is admitted that Plaintiff alleged
certain acts occurred in Cumberland County, Pennsylvania. It is denied however that
any of the acts alleged to have occurred in Cumberland County, were anything more than
.
.
administrative and would not support a finding that venue is appropriate in Cumberland
County, Pennsylvania.
32. Denied. All of the substantive acts giving rise to the cause of actions
raised in the complaint took place in Franklin County, Pennsylvania, and the majority of
the witnesses to said actions reside and work in Franklin County, Pennsylvania.
33. Denied. To the contrary, the averments of the proposed Preliminary
Objections are incorporated herein as if set forth at length.
34. Admitted in part, denied in part. It is admitted that the Complaint is long.
It is denied that it is not vague. Further, the answer drafted, which is fifteen pages in
length and 104 paragraphs, alleges in several paragraphs that Defendants do not have
sufficient knowledge or information to answer the allegations made, largely due to the
vagueness of the complaint.
35. Denied as stated. To the contrary, Defendants assert in Paragraph 28 of
the proposed Preliminary Objections that Plaintiffs do not allege how Mr. George
violated those provisions of the Independent Contractor Agreement. Further, the Plaintiff
alleges that he has violated other provisions of the Agreement and that he will continue to
do so, but fails to specify what those violations might be. (Paragraphs 50 through 53 of
the Complaint).
36. Denied. To the contrary the persons listed are identified as Independent
Contractors associated with Plaintiff at one point and as employees at other points
throughout the Complaint.
37. Denied. To the contrary said Preliminary Objections were filed for a
legitimate purpose and have merit.
38. Denied. To the contrary, Plaintiff, in their Complaint refer to the same
information, the vague list of items set forth by Cendant as "trade secrets" and file two
counts for misappropriation ofthose trade secrets, one under the Uniform Trade Secrets
Act, and one count for conversion of confidential business information, which although
not specifically identified, is the same information they allege to constitute "trade
secrets. "
39. Denied. To the contrary the averments of Paragraphs 6 through 9 ofthe
Petitions to Open are incorporated herein by reference.
40. Admitted. By way of further answer, the Complaint was served upon
Defendants by private process server and an affidavit of service was not filed in this
action by Plaintiff until January 4,2006.
41. Admitted.
42. Admitted.
43. Admitted in part, denied in part. Defendant's counsel spoke with
Plaintiffs counsel on one occasion on or about December 6, 2006. It is denied that
Defendant's counsel spoke about a pleading but rather addressed Plaintiff counsel's
request for assurances.
44. Denied. To the contrary the averments of the Petition to Open Judgment
are incorporated herein by reference.
45. Admitted in part, denied in part. It is admitted that the Notice received by
Defendant's counsel from Plaintiff on or about December 28 or 29,2006 was dated
December 22, 2006.
46. Admitted in part, denied in part. It is admitted that Defendant's counsel
did not seek an extension prior to January 4,2006, when upon receiving the notice he
telephoned Plaintiffs counsel who advised that judgment had been entered. It is
specifically denied that there were several telephone calls between Plaintiffs counsel and
Defendant's counsel, there was one before January 4,2006.
47. Admitted in part, denied in part. To the contrary, Defendants did not
ignore the deadline for filing the Complaint. Further although it is admitted that Plaintiff
served Defendants with discovery requests with the Complaint, said document was a mix
ofrequests for admissions and interrogatories, that were tied to the response to the
requests. Pursuant to Pa.R.C.P. 4014(b) a party is permitted forty-five days to respond to
requests for admission served with original process. Defendants served their answers on
Plaintiff on January 13,2006 within the allotted period.
48. Denied. To the contrary the averments of the Petitions to Open
Judgments, paragraphs I through 25 and Paragraphs 26 through 47 hereof are
incorporated herein as if set forth at length.
49. Admitted.
50. Denied. To the contrary the averments of the proposed Answer with New
Matter, paragraphs 1 through 104 are incorporated herein by reference as if set forth at
length.
51. Denied. To the contrary, Defendants assert several factual defenses
throughout the proposed answer, including those raised in the New Matter.
52. Denied. To the contrary, "Laches, unlike the statute oflimitations, does
not operate solely by the passage of time." Nilon Bros. Enterprises v. Lucente, 461 A.2d
1312 at 1314 (Pa. Super. 1983), quoting Lehner v. Montgomery, 119 A.2d 626 at 630
(Pa. Super. 1956).
53. Admitted.
54. Admitted.
55. Admitted.
56. Denied. To the contrary the averments of Paragraphs 98 through 103 of
the Answer with New Matter are incorporated herein by reference as if set forth at length.
57. Denied. To the contrary the Answer with New Matter raises several
defenses including that Defendant Ada George was not an employee of Plaintiff, that
neither of the Defendants breached any agreement with Plaintiff, and engaged in no
wrongdoing against Plaintiff in addition to the affirmative defenses raised in the New
Matter.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
the relief requested in their Petitions to Open.
Respectfully submitted,
Jef
A fendants
2025 East Main Street
Waynesboro, PA 17268
(717)762-1415
P A Atty. ID No. 55654
VERIFICATION
The undersigned is counsel for the Defendants in the foregoing document and states that the
facts set forth in said document are true and correct, in part according to their own personal
knowledge, and as to the remainder, upon information and beliefbased upon conversations with and
representations made by Defendants. The undersigned also understands that false statements herein
are made subject to the penalties of 18 Pa. C.s. 4904, relating to unsworn falsification to authorities.
Dated: ::;( {()&Of>
/ /l ~.. -c:--)
(~Z0--
-] e e v s, Esquire
(:)
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REALTOR, ERA
Defendants.
)
)
)
)
)
)
)
)
)
)
)
No.05-cv-6162
Plaintiff,
vs.
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
STIPULATED ORDER COMPELLING PRODUCTION OF DOCUMENTS
AND WRITTEN DISCOVERY RESPONSES
WHEREAS, plaintiff Jack Gaughen Realtor ERA ("Jack Gaughen") scrved
defendants with Rcquests for Admissions, Interrogatories and Requests for Documcnts (the
"Discovery Requests") on December 1,2005;
WHEREAS, defendants served responses to thc Discovery Requests (the
"Responses") on January 13,2006;
WHEREAS, plaintiff and defendants have amicably resolved a discovery dispute
pertaining to the Responses;
WHEREAS, plaintiff and defendants are contemporaneously herewith entering
into, and submitting for the Court's approval, an Agreed Protectivc Order relatcd to the
production of confidential information;
WHEREAS, plaintiff and defendants, by and through their undersigned counsel,
agree to the cntry of the within Order, which shall constitute an Order compelling discovcry
pursuant to Pa. R. Civ. P. 40l9(g)(1);
1223362.lil5/06
,
It is STIPULATED and AGREED between and among plaintiff and defendants,
by and through their respective counsel and subject to approval of the Court, as follows:
I. No later than the close of business on March 15, 2006, defendants shall have
delivered to the office of plaintiffs counsel in Harrisburg a complete and verified response to
Interrogatory No.3, subpart (c).
2. No later than the close of business on March 15, 2006, defendants shall have
delivered to the office of plaintiffs counsel in Harrisburg a complete and verified response to
Interrogatory No.6, including without limitation, a response that identifIes all Customers (as
defined by the Interrogatories) whom the defendants solicited to do business with, and on behalf
of, Preferred and/or Exit Realty Corp. International.
3. No later than the close of business on March 15, 2006, defendants shall have
delivered to the officc of plaintiffs counsel in Harrisburg a complete and verified response to
Interrogatory No.9, including without limitation, a response that identifies all persons having
control, responsibility, management or possession of Preferred's books, ledgers, reccipt books, or
journals.
4. No later than the close of business on March 15, 2006, defendants shall have
delivered to the office of plaintiffs counsel in Harrisburg a complete and verifIed response to
Interrogatory No. 10, including without limitation, a response that states, for each checking or
savings account opened or maintained by or on behalf of Preferred, (a) the identity of the
institution at which such account exists; (b) the title and identifIcation of each account; and (c)
the datc on which each account was opened.
5. No later than the close of business on March 15, 2006, defendants shall have
delivered to thc office of plaintiffs counscl in Harrisburg a complete and verified response to
122))6.23/15/06a
-2-
i . -
Interrogatory No. II, including without limitation, a response that identifies all persons
employed by Preferred, as well as their address and telephone number.
6. No later than the close of business on March 24, 2006, defendants shall have
delivered to the office of plaintiffs counsel in Harrisburg (a) all documents that are responsive to
each and every Document Request (excluding privileged documents); (b) revised, verified,
written responses to the Document Requests that comply with Pa. R. Civ. P. 4009.l2(b)(1)
and/or (5); and (c) a privilege log that that identifies the documents or things not produced with
particularity sufficient to enable plaintiff to test the sufficiency of defendants' privilege
assertions.
STIPULATED AND AGREED BY ALL COUNSEL
(
" sq uire
I . 55654
2025 East Main Street
Waynesboro, PA 17268
(717) 762-1415
/ ./}
/ .' ./
(./1f,~, .~~
ichael R. Greco, Esquire
Francis X. Riley, Esquire
Matthew M. Haar, Esquire
Atty. ID No. 78426, 74075 & 85688
Saul Ewing LLP
Penn National Insurance Plaza
2 North Second Street, 7'h Floor
Harrisburg, Pennsylvania 1710 I
(717) 257-7500
Attorney for Defendants
Attorneys for Plaintiff
APPROVED AND SO ORDERED
BY THE COURT:
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d: March 1>:-2006
1223362.1/15/06
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---~-----
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA -- CIVIL ACTION - EQUITY
Defendants.
)
)
)
)
)
)
)
)
)
)
)
)
JACK GAUGH EN REALTOR, ERA
No. 05-6162
Plaintiff,
vs.
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
AGREED PROTECTIVE ORDER
WHEREAS, Defendants in the above-captioned civil action have objected to producing
certain documents and providing responses to certain interrogatories and/or other discovery
requests in the absence of a protective order on the basis that some of information at issue in said
discovery requests is claimed to contain trade secrets or other confidential information;
WHEREAS, Plaintiff in the above-captioned civil action may, during the course of this
litigation, be presented with discovery requests seeking the production of documcnts and/or
information that Plaintiff claims to contain trade secrcts or other confidential information;
WHEREAS, disclosure of such information might be harmful to the parties and/or to the
person or entity producing the information; and
WHEREAS, however, the parties reserve the right to object to any discovery rcquest that
they believe should not require the production of any documents or information;
IT IS HEREBY ORDERED that:
I. Scope of Order. This Protective Order ("Order") shall govern the use and
disclosure of all alleged confidential, proprietary or trade secret information ("Protected
Information") produced by or on behalf of any party or furnished by any person associated with
any party on or after the date of this Order in any pleading, deposition, interrogatory, request for
122451.13/15/06
admission, document production, subpoena, or any other disclosure or discovery proceeding in
this action. Any alleged confidential or proprietary or trade secret information produced in
discovery shall only be used for the purposes of preparing for and conducting this action
(including any appeals or retrials) and only as provided in this Order.
2. Confidentiality Designations. Any party, person or entity producing information
10 this action may designate any document, information, thing, or discovery response as
protected by marking it at or before the time of production or exchange with the legend
"CONFIDENTIAL - ATTORNEYS' EYES ONLY" or "CONFIDENTIAL". If it is
impracticable to mark something with such a legend (~, information contained on a computer
hard drive), the designation may be made in writing. Such designations may also be made in the
course of depositions. All "CONFIDENTIAL - ATTORNEYS' EYES ONLY" designations
must be based on the good faith belief that the information constitutes highly sensitive business
or commercial information requiring protection above and beyond that which is afforded by this
Order to documents marked "CONFIDENTIAL". All "CONFIDENTIAL" designations must be
based on the good faith belief that the information constitutes (a) proprietary or sensitive
business, personal or financial information or (b) information subject to a legally protected right
of privacy.
3. Undertaking. Any documents or materials marked either "CONFlDENT1AL -
A TTORNEYS' EYES ONLY" or "CONFIDENTIAL" shall be held in confidence by each
person to whom it is disclosed according to the procedures set forth in this Order; shall be used
only for purposes of preparation, trial, and appeal of this action; shall not be used for any
business or commercial purpose; and shall not be disclosed to any person who is not authorized
122451.13/15/06
- 2-
to receive such information as provided herein. All documents or materials so marked shall be
carefully maintained in secure facilities.
4. Manner of Designation.
a. The designation of documents or other materials shall be made by written notice
in the documents or materials by affixing to it, in a manner that shall not interfcre with its
legibility, the word "CONFIDENTIAL - ATTORNEYS' EYES ONL Y" or "CONFIDENTIAL"
on all or any part of the document or thing. Wherever practicable, the designation of
"CONFIDENTIAL - ATTORNEYS' EYES ONLY" or "CONFIDENTIAL" shall be madc
prior to, or contemporaneously with, production or disclosure. Documents or information
designated as "CONFIDENTIAL - ATTORNEYS' EYES ONLY" or "CONFIDENTIAL"
before entry of this Order shall be treated as "CONFIDENTIAL - ATTORNEYS' EYES
ONLY" or "CONFIDENTIAL" within the meaning of this Order. The non-designating party
may challenge any designation of confidentiality in accordance with Paragraph I I.
b. All deposition transcripts in this action shall be treated by all parties as
provisionally protected as "CONFIDENTIAL - ATTORNEYS' EYES ONLY" for a period of
fourteen (14) calendar days following receipt of the transcripts. Within the fourteen (14) day
period, any party may designate particular portions of a transcript as "CONFIDENTIAL" or
"CONFIDENTIAL - ATTORNEYS' EYES ONLY" information by giving written notice of
such designation to every other party to the action. To the extent possible, the party making the
designation shall be responsible for assuring those portions of the deposition transcript and
exhibits designated "CONFIDENTIAL" or "CONFIDENTIAL - ATTORNEYS' EYES ONLY"
are appropriately bound by the reporter. The parties should avoid designating entire transcripts
as "CONFIDENTIAL" or "CONFIDENTIAL - ATTORNEYS' EYES ONLY" where only a
122451.1 3/15/06
- 3 -
portion thereof or the exhibits used therewith qualify for protection under this Order; to the
extent reasonably practicable, only such portions or exhibits should be designated. Failure of a
party to so designate any particular portion of the transcript establishes that such portion is not
subject to this Order.
c. In the event that a party is permitted by agreement or by order of this Court to
inspect or review documents prior to production, all documents and things produced at such
inspection will be considered to be CONFIDENTIAL - ATTORNEYS' EYES ONLY. At the
time documents and things are actually produced, however, an appropriate designation, if any,
shall be placed on each document or thing in accordance with this Protective Order.
5. Use and Access of Confidential Information.
a. CONFIDENTIAL - ATTORNEYS' EYES ONLY: Except as set forth herein or
in any subsequent order of the Court or by express written consent of counsel of record, no
documents, things or information designated as "CONFIDENTIAL - ATTORNEYS' EYES
ONL Y" shall be, directly or indirectly, delivered, exhibited or disclosed to persons other than:
(i) the Court, or any Court personnel, including any court reporter or typist recording
or transcribing testimony in this action; and
(ii) Counsel for the parties in this proceeding and their paralegals, law clerks, and
clerical staff who are providing active assistance with this action; and
(iii) any person identified from the four corners of the information, document or thing
itself as having authored or previously received the information, document or thing; and
(iv) any expert or technical advisor retained or employed by any party for the
purposes of this action, provided that said experts or consultants have executed a certification in
accordance with Paragraph 6 below; and
122451.1 3/15/06
-4 -
(v) other persons who may be specifically designated by consent of all attorneys of
record or pursuant to an order of the Court, provided that said person has executed a certification
in accordance with Paragraph 6 below.
b. CONFIDENTIAL: Except as set forth herein or in any subsequent order of the
Court or by express written consent of counsel of record, no documents, things or information
designated as "CONFIDENTIAL" shall be, directly or indirectly, delivered, exhibited or
disclosed to persons other than:
(i) the Court, or any Court personnel, including any court reporter or typist recording
or transcribing testimony in this action; and
(ii) counsel for the parties in this proceeding and to other attorneys, paralegals, law
clerks, and clerical staff working with those attorneys;
(iii) any person identified from the four corners of the information, document or thing
itself as having authored or previously received the information, document or thing;
(iv) the parties to this action, provided, however, that disclosure may be made only to
the extent necessary for the prosecution or defense of this litigation;
(v) any actual or potential witness, provided that said witness has executed a
certification in accordance with Paragraph 6 below; and
(vi) any person testifying at a deposition, provided that said person has executed a
certification in accordance with Paragraph 6 below; and
(vii) any expert or technical advisor retained or employed by any party for the
purposes of this action, provided that said experts or consultants have executed a certification in
accordance with Paragraph 6 below; and
12245113/15/06
- 5 -
(viii) other persons who may be specifically designated by consent of all attorneys of
record or pursuant to an order of the Court, provided that said person has executed a certification
in accordance with Paragraph 6 below.
6. Disclosure to Witnesses and Technical Advisers and Certification of
Confidentiality. Before giving any witness, or technical adviser access to information,
documents or things designated as "CONFIDENTIAL - ATTORNEYS' EYES ONLY" or
"CONFIDENTIAL", the parties' Counsel who seeks to disclose such information to such
witness, or technical adviser shall require the witness or technical adviser to read and agree to be
bound by this Order by signing the following certification:
I certify my understanding that documents, information, answers,
and responses are provided to me pursuant to the terms and
restrictions of the Court's Protective Ordcr on Confidentiality in
Jack Gaughen Realtor, ERA v. Ada George el 01. ("Order"). I have
bcen given a copy and have read that Order.
I have had its meaning and effect explained to me by counsel who
provided me with the information. I understand that such
information and documents, and any copies, any notes or other
memoranda regarding information in such documents, shall not be
disclosed to others except in accordance with that Order, and shall
be used only for purposes of this proceeding. I agree to comply
with the Order.
The term "technical adviser" shall mean any person, including but not limited to a
proposed expert witness or consultant, with whom counsel may deem it necessary to consult
122451.13/15/06
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concerning technical, financial, or other aspects of this case for the preparation or trial thereof;
provided, however, that no party, or person currently employed by a party, or person currently
employed by any competitor shall so qualify hereunder.
7. Safeguarding Confidential Information. The recipient of any "CONFIDENTIAL
~ ATTORNEYS' EYES ONLY" or "CONFIDENTIAL" material provided pursuant to this
Order shall maintain such information in a secure and safe area and shall exercise due and proper
care with respect to its storage, custody and use, so long as it remains so designated.
8. Filing Procedures. Unless agreed otherwise by the parties in writing, any party
incorporating protected material into another document, including any document filed with the
Court, shall designate any affected portions of such a document as protected pursuant to this
Protective Order. In the event "CONFIDENTIAL - ATTORNEYS' EYES ONLY" or
"CONFIDENTIAL" information is included with, or the contents thereof are in any way
disclosed in any pleading, motion, deposition transcript, or other paper filed with this Court, such
information shall be filed and kept under seal by the Clerk until further order of this Court by the
following procedure: The document shall be submitted to the Court for filing in a sealed
envelope or other appropriate sealed container on which shall be endorsed the title of this action,
an indication of the nature of the contents of such sealed envelope or other container, the words
"CONFIDENTIAL INFORMATION - SEALED UNDER PROTECTIVE ORDER" and a
statement substantially in the following form:
This envelope contains information designated by one or more of
the parties to this case as "confidential" and filed in this case by
[name of party] in connection with its [motion for ...J and is not to
12245113/15/06
- 7 -
be opened nor the contents thereof to be displayed or revealed
except by order of the Court.
All material previously designated as such that is filed with or submitted to the Court shall be
conspicuously marked "CONFIDENTIAL ATTORNEYS' EYES ONL Y" or
"CONFIDENTIAL" as set forth above in paragraph 4 prior to filing or submission. Unless the
Court rules otherwise, in the event that "CONFIDENTIAL - ATTORNEYS' EYES ONLY" or
"CONFIDENTIAL" material is used or disclosed in any hearing or at trial, that portion of the
hearing or trial proceedings at which such material is disclosed shall be closed to the public and
such material shall not lose its protected status by reason of such use or disclosure.
9. Final Disposition. Within ninety (90) days of the conclusion of this action,
including any appeals, all "CONFIDENTIAL" or "CONFIDENTIAL - ATTORNEYS' EYES
ONLY" information furnished pursuant to the terms of this Order, any notes reflecting Protected
Information and all copies thereof, which are not in the custody of the Court, shall be returned to
thc party furnishing that Information or be destroyed (and certified by affidavit as having been
destroyed) by the party in possession thereof, provided that counsel for the parties may retain
their notes and any work product materials and litigation files.
10. No Presumption of Protected Status. This Protective Order does not addrcss
discovery objections, nor does it preclude any party from asserting objections to any discovery
request for any reason permitted by the applicable Pennsylvania Rules of Civil Procedure or as
otherwise permitted by law. This Protective Order does not preclude any party from moving for
any relief cognizable under the Pennsylvania Rules of Civil Procedure or this Court's inherent
po wcrs.
122451.13/15/06
- 8 -
11. Challenging Confidential Designation. A party may oppose the designation of
protected material by notifying the opposing party in writing. If a party opposes the designation
of any particular document designated as "CONFIDENTIAL - ATTORNEYS' EYES ONLY"
or "CONFIDENTIAL", the parties shall make a good faith attempt to resolve the dispute by
agreement. If the parties are unable to resolve the dispute, then the party opposing thc
designation may file a motion with the Court to have the designation modified or rcmoved. The
burden remains on the designating party to demonstrate the propriety of the designation. Until a
motion is filed and resolved by the Court, all documents and materials with which a confidential
designation is being challenged shall be treated in the confidential manner that thcy have been
designated by the producing party as prescribed in this Order.
12. Modification of Order. Nothing in this Order shall preclude any party from
applying to the Court for an appropriate modification of this Order; provided, however, that
before such an application, the parties involved shall make a good faith effort to resolve the
matter by agreement. Furthermore, the parties can agree in writing, without approval from the
Court, on the exclusion of particular information, documents, answers, or responses from the
scope of this Order.
13. Inadvertent Production. The inadvertent production pursuant to discovery by any
party of any document or communication that is protected by privilege, work product doctrine or
statutory confidentiality will not operate as a waiver of the producing party's right to assert a
defcnse to production of that document or communication, or any other documcnt or
communication, and any such material shall be returned promptly to the party producing it on
timely written demand identitying the specific document(s). Any information, document or
thing mistakenly produced or disclosed without a "CONFIDENTIAL" or "CONFIDENTIAL -
122451.1 3/15/06
- 9 -
ATTORNEYS' EYES ONLY" designation may be subsequently designated by the producing
party as "CONFIDENTIAL" or "CONFIDENTIAL - ATTORNEYS' EYES ONLY" at any time
pursuant to the terms of this paragraph without waiving the confidential nature of the document
or information. In each such case, the designating person shall provide to all other parties notice,
either orally followed by written notice within five (5) business days or by written notice, of that
subsequent designation and a copy of the document or thing marked in accordance with this
paragraph.
14. Continuing Jurisdiction. Unless superseded by later order, this Order shall remain
In full force and effect after the termination of this litigation and the Court shall retain
jurisdiction over the parties, their attorneys, and all other persons to whom protected information
has been disclosed for the purposes of enforcing the terms of this Order and/or redressing any
violations thereof.
15. Non-Parties. The existence of this Order may be disclosed to any non-party
producing documents or information in this action who may reasonably be expected to dcsire
confidential treatment of such information. Such non-parties may avail themselves of the
protections of this Order. By availing themselves of the protections of this Order, such non-
parties consent to the jurisdiction of this Court for purposes of enforcing the tcrms of this Order
only.
16. Exclusions. The restrictions set forth in any of the paragraphs hereof with respect
to information, documents or things designated as "CONFIDENTIAL" or "CONFIDENTIAL -
ATTORNEYS' EYES ONLY" shall not apply to:
a. any information, document or thing which at the time of disclosure to a
receiving party is in the public domain;
122451.13/15/06
- 10-
b. any information, document or thing which after disclosure to a receiving
party becomes part of the public domain as a result of publication not involving a violation of
this Order; or
c. any information, document or thing which a receiving party can show was
received by it, whether before or after the disclosure, from a source who obtained the
information lawfully and under no obligation of confidentiality to the producing party.
IT IS SO ORDERED this /5day of March, 2006.
Entered:
Ai
APPROVED AS TO FORM AND CONTENT.
DATED:
,
March ( ;, 2006
Saul Ewing LLP
~!
By:':;'---; /i.
atthew M. Haar
Attorneys for Plaintiff, Jack Gaughen
Realtor, ERA
DATED:
Marchu, 2006
Law 0
/
BYl
J Ev ns
r Defendants Ada George,
Jeffrey George and Preferred Realty
LLC d/b/a Exit Preferred Realty LLC
122451.13/15/06
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JACK GAUGHEN REAL TOR,
ERA,
Plaintiff
vs.
ADA GEORGE, JEFFREY
GEORGE and PREFERRED
REALTY, LLC d/b/a EXIT
PREFERRED REALTY LLC,
Defendants
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
NO. 05-6162 CIVIL
IN RE: PETITIONS TO OPEN DEF AUL T JUDGMENT
AND NOW, this
ORDER
2- J'
day of March, 2006, the petition of the defendants to open
judgment and for leave to proceed with preliminary objections is DENIED.
The petition of the defendants to open judgment and for leave to file an answer is
GRANTED, the defendants to file their answer within twenty (20) days hereof.
.)(l'ichael R. Greco, Esquire
For the Plaintiff
~ffrey S. Evans, Esquire --l
For the Defendants
:rlm
BY THE COURT,
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYL VANIA - CIVIL ACTION EQUITY
JACK GAUGHEN REALTOR, ERA
3915 Market Street
Camp Hill, Pennsylvania 1701 I,
Plaintiff,
vs.
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants.
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) No. 05-6162 - Civil
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NOTICE TO PLEAD
To: Jack Gaughen Realtor, ERA, Plaintiff
You are hereby notified to file a written response to the Defendants' Answer and New Matter
within twenty (20) days from service hereof or judgment may be entered against you.
/
By:L '-
Jeffrey
Attorn r endants
2025 East Main Street
Waynesboro, PA 17268
(717)762-1415
Pa. Atty. ID No. 55654
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYL VANIA - CIVIL ACTION EQUITY
JACK GAUGHEN REALTON, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs.
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants.
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) No. 05-6162 - Civil
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ANSWER WITH NEW MATTER
Now come the Defendants, Ada George, Jeffrey George and Preferred Realty
LLC, trading and doing business as Exit Preferred Realty, and answers the complaint of
Plaintiff Jack Gaughen Realtor ERA, as follows:
1. Denied. To the contrary, Defendant is without sufficient knowledge or
information to form a be!iefas to the truth ofthe averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
2. Admitted in part, denied in part. It is admitted that Defendant Ada George
("Mrs. George") is a resident of the Commonwealth of Pennsylvania jiving and residing
at 720 Franklin Street, Chambersburg, Franklin County, Pennsylvania. It is further
admitted that Mrs. George was a manager assigned to Jack Gaughen Realtor, ERA
Chambersburg office.
It is denied that Mrs. George was an employee of Plaintiff, much less a "key
employee." To the contrary Mrs. George was employed by Cendant Corporation
("Cendant") and worked for that entity at the Jack Gaughen Realtor, ERA Chambersburg,
Franklin County, Pennsylvania office.
3. Admitted.
4. Admitted.
5. Denied. To the contrary the facts alleged in Plaintiffs complaint in
support thereof, involve conduct and actions that occurred in Franklin County,
Pennsylvania. Further, Preferred is a limited liability company with its registered office
in Chambersburg, Franklin County, Pennsylvania, and doing business in Franklin
County, Pennsylvania.
6. Denied. Defendant is without sufficient knowledge or information to form
a belief as to the truth of the averments of this paragraph and therefore same are denied
and proof thereof is demanded at trial.
7. Denied. Defendants are without sufficient knowledge or information to
form a belief as to the truth of the averments of this paragraph and therefore same are
denied and proofthereofis demanded at trial.
By way of further answer, it is denied that Mrs. George was ever an employee of
Plaintiff. To the contrary Mrs. George was an employee ofCendant.
8. Admitted.
9. Admitted in part, denied in part. It is admitted that Mrs. George was the
manager at Plaintiffs Chambersburg, Pennsylvania office. It is denied that Mrs. George
was an employee of Plaintiff. To the contrary the averments of paragraphs 2 and 7 hereof
are incorporated herein by reference as if set forth at length.
10. Denied. To the contrary, Mrs. George as an employee ofCendant signed
an acknowledgement form regarding Cendant Core Policies as well as other documents.
Mrs. George never signed any such documents purporting to contain policies of Plaintiff.
As to the remaining averments of this paragraph, Defendants are without sufficient
knowledge or information to form a belief as to the truth ofthe averments of this
paragraph and therefore same are denied and proof thereof is demanded at trial.
11. Denied. The averments of paragraphs 2,7, and 10 hereof are incorporated
herein by reference as if set forth at length. It is further denied that Mrs. George ever
signed any document pledging a duty ofloyalty to Plaintiff.
12. Denied. The averments of para graphs 2,7, and 10 hereof are incorporated
herein by reference as if set forth at length. It is further denied that Mrs. George ever
signed any document containing said language for Plaintiff, by whom she was not
employed or paid.
13. Denied. To the contrary the averments of paragraphs 2,7, and 10 hereof
are incorporated herein by reference as if set forth at length.
As to the remaining averments of this paragraph, Defendants are without
sufficient knowledge or information to form a belief as to the truth of the averments of
this paragraph and therefore same are denied and proof thereof is demanded at trial.
14. Denied. To the contrary the averments of paragraphs 2,7 and 10 hereof
are incorporated herein by reference as if set forth at length.
As to the remaining averments ofthis paragraph, Defendants are without
sufficient knowledge or information to form a belief as to the truth ofthe averments of
this paragraph and therefore same are denied and proofthereofis demanded at trial.
15. Admitted.
16. Admitted in part, denied in part. It is admitted that Mr. George entered the
Independent Contractor Agreement attached to Plaintiffs Complaint marked Exhibit B.
As to the remaining averments ofthis paragraph, Defendants are without
sufficient knowledge or information to form a belief as to the truth of the averments of
this paragraph and therefore same are denied and proofthereof is demanded at trial.
17. Admitted.
18. Admitted.
19. Admitted.
20. Admitted.
2 I. Denied. To the contrary Mr. George was not provided with a Cendant
Core Policies Manual, during his association with Plaintiff.
22. Denied. To the contrary Mr. George formed Preferred with two other
partners. Mrs. George was not involved in the formation of Preferred in any respect, and
has no ownership interest in Preferred.
23. Admitted in part, denied in part. It is admitted that Preferred purchased an
Exit Realty Corp. International franchise. It is admitted further admitted that Preferred
competes with Plaintiff in Franklin County, Pennsylvania. It is denied that Preferred was
established by Mr. George for the purpose of competing with Plaintiff. To the contrary,
Mr. George had been in the process of obtaining his Pennsylvania Real Estate Brokers
License and was desirous of opening his own real estate business, having been a realtor in
Franklin County with various firms for a period in excess of fifteen years.
24. Denied. To the contrary the averments of paragraph 22 hereof are
incorporated herein by reference as if set forth at length. By way of further answer, Mr.
George is a member of Preferred. Mrs. George is an Independent Contractor working out
of Preferred's Chambersburg, Franklin County, Pennsylvania office.
25. Admitted.
26. Admitted in part, denied in part. It is admitted that on or about June 19,
2005, Mrs. George met with Darlene Gontz at her home, in or around Chambersburg,
Franklin County, Pennsylvania and that Mrs. George, informed Ms. Gontz that Mrs.
George would no longer be managing Plaintiffs Chambersburg office.
The remaining averments of this paragraph are denied as stated. To the contrary,
the meeting with Ms. Gontz took place at the specific request of Ms. Gontz who indicated
she would not be able to attend the meeting of salespersons scheduled for the morning of
June 20,2005. Ms. Gontz, a friend of Mrs. George, asked Mrs. George why she was
leaving and where she would work following. Mrs. George indicated that she would be
working for Mr. George who with partners had purchased an Exit franchise. Mrs. George
advised that Mr. George intended to open in October 2005.
27. Admitted in part, denied in part. It is admitted that Mrs. George
conducted a meeting on June 20, 2005. It is further admitted that she advised she would
be leaving her position as manager at Plaintiffs Chambersburg office.
It is denied that Mrs. George was forced to conduct the Meeting but rather she felt
an obligation to advise the persons she managed to that she would no longer be doing so.
28. Denied. To the contrary, Mrs. George advised that her husband had
purchased an Exit franchise and that she was going to work at his franchise. It is denied
that Mrs. George was openly critical of Plaintiff, but rather advised the sales staff they
were the reason Plaintiff was so successful. Mrs. George on questioning by the sales
staff, answered questions regarding Exit and provided a Preferred "mission statement."
Upon requests for additional information, Mrs. George advised that there would be a
breakfast meeting of anyone interested in hearing about Preferred and Exit on June 22,
2005. No invitation was made to any specific member of the sales staff.
29. Denied. To the contrary, Mrs. George made no such individual
solicitations.
30. Denied. To the contrary, Mrs. George did not actively solicit any of the
Salespersons listed. Several of the salespersons listed were not at either the June 20,
2005 meeting and/or the meeting on June 22, 2005. Further, Tina Long, James Sourbier,
Jennifer Deverell and William Kopp were all fired by Plaintiff and subsequently became
associated with Preferred, and Michele Cordell was never an employee of or an
independent contractor associated with Plaintiff.
31. Denied. Defendants are without sufficient knowledge or information to
form a belief as to the truth of the averments of this paragraph and therefore same are
denied and proof thereof is demanded at trial.
32. Admitted in part, denied in part. It is admitted that the Former
Salespersons listed work for Preferred. It is denied that their association with Preferred
was a result of any wrongful conduct on part of Defendants.
As to the remaining averments ofthis paragraph, Defendants are without
sufficient knowledge or information to form a belief as to the truth of the averments of
this paragraph and therefore same are denied and proof thereof is demanded at trial.
33. Admitted in part, denied in part. It is admitted that Mr. and Mrs. George
frequently co-listed properties, and had done so even prior Mr. George's affiliation with
Plaintiff and Mrs. George becoming an employee of Cendant.
It is denied that S&A Homes was a customer of Plaintiff, but rather S&A Homes
had a long standing relationship with Mr. George that predated his association with
Plainti ff.
34. Admitted in part, denied in part. It is admitted that said "Change to
Listing Contracts" before terminating his association with Plaintiff. It is denied that he
solicited customer to change same. To the contrary said "Change to Listing Contract"
forms were prepared at the direction and specific request of the client S&A Homes.
Further it is common practice for agents to be able to enter said change forms without any
knowledge, consent or approval of a broker.
35. Admitted in part, denied in part. It is admitted that Mr. George terminated
his affiliation with Plaintiff. Mrs. George, however resigned from her employ with
Cendant.
36. Admitted.
37. Admitted.
38. Denied. To the contrary, six ofthe properties were listed with Exit
Platinum Plus on June 28, 2005. Said properties were expired on July 1,2005, and
relisted with Plaintiff on July I, 2005.
39. Denied. To the contrary, S&A Homes, which had approved the change to
the listings, advised that James Grandon, contacted them complaining about the listings
and that in response to his complaints they requested Mr. George relinquish the listings
and he did so, again at the specific request ofS&A Homes.
40. To the extent that averments of this paragraph constitute conclusions of
law, no response is required.
To the extent an answer is required the averments are denied. To the contrary,
Defendants have not engaged in any wrongful conduct.
As to the remaining averments of this paragraph, Defendants are without
sufficient knowledge or information to form a belief as to the truth of the averments of
this paragraph and therefore same are denied and proof thereof is demanded at trial.
COUNT I
INJUNCTIVE RELIEF
(Against All Defendants)
41. The averments of Paragraphs 1 through 40 of this Answer are incorporated
herein as if set forth at length.
42. The averments ofthis paragraph constitute a conclusion oflaw to which
no response is required.
43.
follows:
Denied. To the contrary, the various subparagraphs are answered as
a. Denied. Defendants are not in possession of nor have they disclosed any
confidential or trade secret information of Plaintiffs, whatever same may be.
b. Denied. Defendants are without sufficient knowledge or information to
form a belief as to the truth of the averments of this paragraph and therefore same are
denied and proof thereof is demanded at trial.
c. Denied. Defendants are without sufficient knowledge or information to
form a belief as to the truth of the averments of this paragraph and therefore same are
denied and proof thereof is demanded at trial.
d. Denied. To the contrary, Defendants believe and therefore aver that
Plaintiff is by far the real estate agency doing the highest volume of real estate sales in
Franklin County even since Preferred opened. As to the remaining averments ofthis
paragraph, Defendants are without sufficient knowledge or information to form a belief
as to the truth of the averments of this paragraph and therefore same are denied and proof
thereof is demanded at trial.
44. The averments of this paragraph constitute a conclusion oflaw to which
no response is required.
WHEREFORE, Defendants request that this Honorable Court enter an Order
denying Plaintiffs request for injunctive relief in whole and enter judgment in favor of
Defendants for the costs of this action.
COUNT II
BREACH OF CONTRACT
(Against Mrs. George)
45. The averments of Paragraphs 1 through 44 of this Answer are incorporated
herein as if set forth at length.
46. Denied. To the contrary, Mrs. George owes no obligation to Plaintiff in
that she was not an employee of Plaintiff. The averments of Paragraphs 2,7, and 10
through 12 hereof are incorporated herein by reference as if set forth at length.
47. Denied. To the contrary, Mrs. George owes no obligation to Plaintiff in
that she was not an employee of Plaintiff. The averments of Paragraphs 2, 7, and 10
through 12 hereof are incorporated herein by reference as if set forth at length.
48. To the extent that the averments of this paragraph constitute conclusions
of law, no response is required.
To the extent an answer is required the averments are denied and the averments of
Paragraph 43 a through d hereof are incorporated by reference as if set forth at length. As
to the remaining averments of this paragraph, Defendants are without sufficient
knowledge or information to form a belief as to the truth of the averments of this
paragraph and therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendant respectfully requests that this Honorable Court enter
judgment in favor of Defendant and against Plaintiff on this Count and award Defendants
the costs of this action.
COUNT III
BREACH OF CONTRACT
(Against Mr. George)
49. The averments of Paragraphs I through 48 of this Answer are incorporated
herein as if set forth at length.
50. Denied. To the contrary the averments of Paragraphs 15 through 24, and
34 through 40 hereof are incorporated herein by reference as if set forth at length.
51. Denied. Defendant is without sufficient knowledge or information to form
a belief as to the truth of the averments contained is this paragraph, therefore, same are
denied and proof thereof is demanded at trial.
52. Denied. Defendant is without sufficient knowledge or information to form
a belief as to the truth of the averments contained is this paragraph, therefore, same are
denied and proof thereof is demanded at trial.
53. To the extent that the averments ofthis paragraph constitute conclusions
of]aw, no response is required.
To the extent an answer is required the averments are denied and the averments of
Paragraph 43 a through d hereof are incorporated by reference as if set forth at length. As
to the remaining averments of this paragraph, Defendants are without sufficient
knowledge or information to form a belief as to the truth of the averments of this
paragraph and therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendant respectfully requests that this Honorable Court enter
judgment in favor of Defendant and against Plaintiff on this Count and award Defendants
the costs of this action.
COUNT IV
CONVERSION OF CONFIDENTIAL BUSINESS INFORMATION
(All Defendants)
54. The averments of Paragraphs I through 53 of this Answer are incorporated
herein as if set forth at length.
55. Denied. To the contrary both Mr. and Mrs. George were successful
realtors in Franklin County, Pennsylvania prior to their respective associations with
Plaintiff and have garnered no specialized knowledge not readily discernible or
discoverable by experienced persons in the real estate sales field. As to the remaining
averments of this paragraph, Defendants are without sufficient knowledge or information
to form a belief as to the truth of the averments of this paragraph and therefore same are
denied and proof thereof is demanded at trial.
56. Denied. The averments of Paragraph 55 hereof are incorporated herein by
reference as if set forth at length. As to the remaining averments of this paragraph,
Defendants are without sufficient knowledge or information to form a belief as to the
truth of the averments of this paragraph and therefore same are denied and proof thereof
is demanded at trial.
57. To the extent that the averments ofthis paragraph constitute conclusions
of law, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proofthereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action.
COUNT V
MISAPPROPRIATION OF TRADE SECRETS, 12 Pa.C.S.A. Sections 5301 - 5308
(All Defendants)
58. The averments of Paragraphs I through 57 of this Answer are incorporated
herein as if set forth at length.
59. Denied. Defendants are without sufficient knowledge or information to
form a belief as to the truth of the averments contained is this paragraph, therefore, same
are denied and proof thereof is demanded at trial.
60. Denied. Defendants are without sufficient knowledge or information to
form a belief as to the truth of the averments contained is this paragraph, therefore, same
are denied and proofthereof is demanded at trial.
61. Denied. Defendant is without sufficient knowledge or information to form
a belief as to the truth of the averments contained is this paragraph, therefore, same are
denied and proof thereof is demanded at trial.
62. Denied. To the contrary, Mr. and Mrs. George have not actively recruited
any of Plaintiffs salespersons, and have only provided information regarding Preferred
and Exit if approached. As to the remaining averments of this paragraph, Defendants are
without sufficient knowledge or information to form a belief as to the truth of the
averments contained is this paragraph, therefore, same are denied and proof thereof is
demanded at trial.
63. To the extent that the averments of this paragraph constitute conclusions
oflaw, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments ofthis paragraph and
therefore same are denied and proof thereof is demanded at trial.
64. To the extent that the averments ofthis paragraph constitute conclusions
oflaw, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth ofthe averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
65. To the extent that the averments of this paragraph constitute conclusions
oflaw, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proofthereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs ofthis action.
COUNT VI
BREACH OF DUTY OF LOYALTY
(Against Mr. and Mrs. George)
66. The averments of Paragraphs I through 65 of this Answer are incorporated
herein as if set forth at length.
67. Denied. To the contrary, Mrs. George owes no obligation to Plaintiff in
that she was not an employee of Plaintiff. The averments of Paragraphs 2,7, and 10
through 12 hereof are incorporated herein by reference as if set forth at length. Further
Mr. George has not breached any common law duty of loyalty to Plaintiff or any duty
imposed upon him by virtue of the Independent Contractor Agreement.
68. To the extent that the averments ofthis paragraph constitute conclusions
oflaw, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs ofthis action.
COUNT VII
UNFAIR COMPETITION
(Against all Defendants)
69. The averments of Paragraphs 1 through 68 of this Answer are incorporated
herein as if set forth at length.
70. The averments of this paragraph constitute conclusions of law to which no
response is required.
71. To the extent that the averments of this paragraph constitute conclusions
oflaw, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action.
COUNT VIII
INTERFERENCE WITH CONTRACTUAL RELATIONS
(Against all Defendants)
72. The averments of Paragraphs I through 71 of this Answer are incorporated
herein as if set forth at length.
73. Denied. As to Mrs. George the averments of Paragraphs 2,7, and 10
through 12 hereof are incorporated herein by reference as if set forth at length. As to Mr.
George, it is denied he has any existing contractual relation with Plaintiff. As to the
remaining averments of this paragraph, Defendants are without sufficient knowledge or
information to form a belief as to the truth of the averments contained is this paragraph,
therefore, same are denied and proofthereof is demanded at trial.
74. Denied. Defendants are without sufficient knowledge or information to
form a belief as to the truth ofthe averments contained is this paragraph, therefore, same
are denied and proof thereof is demanded at trial.
75. To the extent that the averments ofthis paragraph constitute conclusions
of law, no response is required.
To the extent an answer is required, it is denied that Defendants knowingly
solicited, aided or abetted any person to breach any contractual obligation that person
may have had with Plaintiff. As to the remaining averments of this paragraph Defendants
are without sufficient knowledge or information to form a belief as to the truth of the
averments of this paragraph and therefore sanle are denied and proof thereof is demanded
at trial.
76. The averments ofthis paragraph constitute conclusions oflaw to which no
response is required.
77. Denied. As to Mrs. George the averments of Paragraphs 2, 7, and 10
through 12 hereof are incorporated herein by reference as if set forth at length. As to Mr.
George, it is denied he has any existing contractual relation with Plaintiff or that he
breached any contractual obligation owed Plaintiff under the Independent Contractor
Agreement. As to the remaining averments of this paragraph, Defendants are without
sufficient knowledge or information to form a belief as to the truth of the averments
contained is this paragraph, therefore, same are denied and proof thereof is demanded at
trial.
78. The averments of this paragraph constitute conclusions oflaw to which no
response is required.
79. To the extent that the averments of this paragraph constitute conclusions
of law, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments ofthis paragraph and
therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action.
COUNT IX
TORTIOUS INTERFERENCE WITH PROSPECTIVE ECONOMIC ADV ANT AGE
(Against all Defendants)
80. The averments of Paragraphs I through 79 of this Answer are incorporated
herein as if set forth at length.
81. The averments of this paragraph constitute conclusions oflaw to which no
response is required.
82. To the extent that the averments of this paragraph constitute conclusions
oflaw, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments ofthis paragraph and
therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action.
COUNT X
CNIL CONSPIRACY
(Against all Defendants)
83. The averments of Paragraphs I through 79 of this Answer are incorporated
herein as if set forth at length.
84. Denied. To the contrary, Defendants lawfully operate offices in Franklin
County, Pennsylvania that lawfully offers real estate services to potential buyers and
sellers of real estate throughout Franklin County, and do so without interfering with or
violating any right of Plaintiff.
85. The averments of this paragraph constitute legal conclusions to which no
response is required.
86. The averments of this paragraph constitute legal conclusions to which no
response is required.
87. The averments ofthis paragraph constitute legal conclusions to which no
response is required.
88. To the extent that the averments of this paragraph constitute conclusions
of law, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth of the averments of this paragraph and
therefore same are denied and proof thereof is demanded at trial.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs ofthis action.
COUNT XI
CONSTRUCTIVE TRUST
(Against all Defendants)
89. The averments of Paragraphs I through 88 of this Answer are incorporated
herein as if set forth at length.
90. The averments of this paragraph constitute legal conclusions to which no
response is required.
91. To the extent that the averments of this paragraph constitute conclusions
of law, no response is required.
To the extent an answer is required, Defendants are without sufficient knowledge
or information to form a belief as to the truth ofthe averments of this paragraph and
therefore same are denied and proofthereof is demanded at trial.
92. The averments of this paragraph constitute legal conclusions to which no
response is required.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on this Count and award
Defendants the costs of this action.
NEW MATTER
93. The averments of Paragraphs 1 through 92 of this Answer are incorporated
herein as if set forth at length.
94. Plaintiff, despite being aware that Mr. George was opening a real estate
office, in June 2005, delayed bringing the present action until November 30, 2005.
95. Defendants have been prejudiced by said delay, particularly, Mr. George
and Preferred, who have invested significant time, money and effort in opening its
offices.
96. Plaintiff is guilty oflaches.
97. Plaintiffs causes of action against Defendants are accordingly barred by
the defense oflaches.
98. Since terminating her employment with Cendant, Plaintiffs president,
James Grandon has repeatedly contacted Mrs. George via telephone, requesting that she
return and when she refused, he threatened he would sue Mr. and Mrs. George 'just to
sap their time, energy and money."
99. Neither Mr. or Mrs. George signed any document, either in their affiliation
with Plaintiff that contained a covenant not to compete with Plaintiff or Cendant (in the
case of Mrs. George), nor did they sign any confidentiality agreement in favor of
Plaintiff.
100. During the course ofthe last year other agents have terminated their
associations with Plaintiff, and Plaintiff has allowed them to leave with not only their
listings, but Plaintiff has failed to take any action against said agents to protect its alleged
"trade secrets and confidential business information." Further, Plaintiff routinely
provides prospective agents with information regarding its commission structure and
other similar information regarding its methods of conducting business.
101. Plaintiff has asserted these same claims in a proceeding pending before the
Pennsylvania Real Estate Commission, which Defendants believe and therefore aver that
either Plaintiff or James Grandon, filed in or about December 2005.
102. Plaintiff, through its president James Grandon has advised several of
Defendants' agents that he would soon have Defendants' real estate licenses and that
Defendants would have to cease operations.
103. At the time Plaintiff made said statements, he knew or should have known
same were fraudulent and misleading.
104. Plaintiff asks for equitable relief but does not come before the Court with
clean hands.
WHEREFORE, Defendants respectfully request that this Honorable Court enter
judgment in favor of Defendants and against Plaintiff on all counts of Plaintiffs
Complaint and further award Defendants the costs of this action.
L
Jeffr
Att efendants
20 5 East Main Street
Waynesboro, P A 17268
(717)762- I 4 I 5
P A Atty. ID No. 55654
VERIFICATION
I verify that the statements in this document are true and correct to the best of my knowledge,
information and belief, and I understand that false statements herein are made subject to the penalties
of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities.
Dated: / II ~ /2DD (
Ada George, Defendant '
VERIFICATION
I verify that the statements in this document are true and correct to the best of my knowledge,
information and belief, and I understand that false statements herein are made subj ect to the penalties
of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities.
Dated:
/ l(zJ~O h
d#J#.fh < ~
J1frey e, fendant
AFFIDAVIT
I, Jeffrey George, state that I am a member of Preferred Realty, LLC, the Defendant, that I am
authorized to make this affidavit on its behalf and that the facts set forth in the foregoing document
are true upon my personal knowledge, information and belief.
I understand that my statements are made subject to 18 Pa. Cons. Stat. Section 4904
providing for criminal penalties for unsworn falsification to authorities.
Preferred Realty, LLC
Date:
}l2~O~
,
by
Je
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA - CIVIL ACTION EQUITY
JACK GAUGHEN REALTON, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs.
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants.
)
)
)
) No. 05-6162 - Civil
)
)
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)
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CERTIFICATE OF SERVICE
On January 12, 2006, the undersigned served the within Defendants' Answer With New
Matter on Plaintiff by mailing a true and correct copy of the same to Plaintiffs attorney ofrecord
Michael R. Greco, Esquire at the address listed below by first class mail, postage prepaid, at the
Post Office in Waynesboro, Pennsylvania:
Michael R. Greco, Esquire
Penn National Insurance Plaza
2 North Second Street, 7'h Floor
Harrisburg, P A 17101
By:
Je
A e. .0. No. 55654
Counsel for Plaintiff
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA - CIVIL ACTION EQUITY
JACK GAUGHEN REALTOR, ERA
3915 Market Street
Camp Hill, Pennsylvania 17011,
Plaintiff,
vs.
ADA GEORGE, JEFFREY GEORGE
and PREFERRED REALTY, LLC
d/b/a EXIT PREFERRED REALTY LLC
Defendants.
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) No. 05-6162 - Civil
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AFFIDAVIT OF SERVICE
Personally appeared before me, an Attorney, in and for said State and County, Jeffrey S. Evans,
Esquire, who, being duly sworn according to law, deposes and says that he did serve an Answer
with New Matter in the above-captioned matter on Jack Gaughen Realtor, ERA, by mailing a
true and attested copy of the same to their attorney ofrecord, Matthew M. Haar, Esquire at Penn
National Insurance Plaza, 2 North Second Street, 7'h Floor, Harrisburg, PA 17101 on March 31,
2006.
Sworn to and subscribed to before
me this 3151 day of March, 2006.
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NOTARIAL SEAL
IGIlIy V. High, Notary PublIc
WMl\h lQlOII Township, FI8I1Idln CaunIy
MyComml8sIon ExpIres Nov. 29, 2OlI8
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MICHAEL R. GRECO, ESQUIRE
FRANCIS X. RILEY, ESQUIRE
MATTHEW M. HAAR, ESQUIRE
SAUL EWING LLP
Atty. ID Nos. 78426, 74075 and 85688
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, Pennsylvania 1710 I
(717) 257-7500
Attorneys for Plaintiff
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYL VANIA
CIVIL ACTION - EQUITY
JACK GAUGHEN REALTOR, ERA
Plaintiff,
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No. 05-cv-6162
vs.
ADA GEORGE, et al.
Defendants.
PLAINTIFF'S REPLY TO DEFENDANTS' NEW MATTER
Plaintiff Jack Gaughen Realtor, ERA ("Jack Gaughen") hereby files this
Reply to Defendants' New Matter and avers as follows:
93. Jack Gaughen incorporates the averments of paragraphs I through 92 of
its Complaint.
94. Admitted in part and denied in part. It is admitted that Jack Gaughen was
aware in June 2005 that Mr. George was opening a real estate office, and that the present
action was commenced on November 30, 2005. The remaining averments of paragraph
94 are conclusions of law to which no responsive pleading is required.
J234lJ.14120106
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95. Denied. The averments of paragraph 95 are conclusions oflaw to which
no responsive pleading is required and are therefore denied. To the extent the averments
of paragraph 95 are averments of fact, Jack Gaughen is without sufficient information to
form a belief as to the truth of the averments in paragraph 95 and the averments are
therefore denied.
96. Denied as a conclusion of law to which no responsive pleading is required.
97. Denied as a conclusion oflaw to which no responsive pleading is required.
98. Admitted in part and denied in part. It is denied that James Grandon
terminated Mrs. George. To the contrary, Mrs. George resigned. It is admitted that
James Grandon has spoken to Mrs. George since her resignation. The remaining
averments are denied. To the contrary, James Grandon took appropriate action to ensure
that Mrs. George honored her contractual commitments.
99. Denied. The averments of paragraph 99 are conclusions oflaw to which
no responsive pleading is required and are therefore denied. To the extent the averments
of paragraph 99 are averments of fact, they are denied as characterizations of written
documents, the terms of which are self evident. By way of further response, both Mr.
George and Mrs. George bound themselves to confidentiality agreements. See Compl. ~~
13 & 19.
100. Admitted in part and denied in part. It is admitted that other agents have
terminated their associations with Jack Gaughen, and that Jack Gaughen occasionally
provides information regarding its commission structures to prospective agents. The
remaining averments of paragraph 100 are denied. To the contrary, any arrangements
that Jack Gaughen may have made with other departing agents are irrelevant, as none of
123413.14/20106
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those agents were creating a competing business while working for Jack Gaughen and
none were soliciting other Jack Gaughen agents while still working for Jack Gaughen.
Further, Jack Gaughen does not provide trade secret information to prospective agents.
101. Admitted in part and denied in part. It is admitted that James Grandon
filed a complaint with the Pennsylvania Real Estate Commission regarding defendants'
conduct. The remaining averments are denied as conclusions of law to which no
responsive pleading is required.
102. Denied. James Grandon made no such statements to Defendants'
unnamed agents.
103. Denied. James Grandon did not make any fraudulent or misleading
statements.
104. Denied as a conclusion of law to which no responsive pleading is required.
WHEREFORE, Plaintiff Jack Gaughen respectfully requests that the
Court grant judgment for it and against the Defendants.
Respectfully submitted,
/
!.-- /J.
lchael R. Greco, Es Ulre
Francis X. Riley, Esquire
Matthew M. Haar, Esquire
Atty. ID Nos. 78426, 74075 and 85688
Saul Ewing LLP
Penn National Insurance Plaza
2 North Second Street, 7th Floor
Harrisburg, Pennsylvania 17101
(717) 257-7500
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Dated: April 20, 2006
Attorneys for Plaintiff
123413]4/20/06
VERIFICATION
I, James Grandon, hereby verify that I am authorized to execute this
verification on behalf of Plaintiff Jack Gaughen Realtor, ERA, that I have read the
fOTegoing document entitled Plaintiffs Reply to Defendants' New Matter and that the
statements of fact therein are true and correct to the best of my knowledge, information
and belief. I make this verification subject to the penalties of 18 Pa. C.S.A. ~ 4904
relating to unworn falsification to authorities.
Dated: ApriLi'o, 2006
12341).14120106
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CERTIFICATE OF SERVICE
I hereby certify that on April 20, 2006, I served a true and correct copy of
the foregoing Plaintiffs Reply to Defendants' New Matter upon the following counsel by
first class mail, postage prepaid:
Jeffrey S. Evans, Esquire
2025 East Main Street
Waynesboro, P A 17268
Attorney for Defendants
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Matthew M. Haar
Dated: April 20, 2006
J23413.14/20/1)(,
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