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No. nja - 90 '7 Civil. 19
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Commonwealth of Pennsylvania
County of Cumberland
WRIT OF SUMMONS
RUSSELL E. DANIELS
Plaintiff
Vs.
MILLENNIUM PHARMACY
SYSTEMS, INC.
2250 MILLENNIUM WAY, STE. 300
ENOLA PA 170225
Defendant
Court of Common Pleas
No 06-907
In CivilAction-Law
To MILLENNIUM PHARMACY SYSEMS, INC:,
You are hereby notified that RUSSELL E. DANIELS the Plaintiff(s) has / have
commenced an action in Civil Action-Law against you which you are required to defend
or a default judgment may be entered against you.
(SEAL)
Date FEBRUARY 15, 2006
Curtis R. Long
Prothonotary
By
eputy
Address: 127 S. MARKET ST.
MECHANICSBURG PA 17055
Attorney for: Plaintiff
Telephone: (717) 697-7050
Supreme Court ID No. 62469
Attorney: ANDREW C. SHEELY, ESQ.
Name:
SHERIFF'S RETURN - REGULAR
CASE NO: 2006-00907 P
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF CUMBERLAND
DANIELS RUSSELL
VS
MILLENNIUM PHARMACY
SHANNON SHERTZER
Sheriff or Deputy Sheriff of
Cumberland County,Pennsylvania, who being duly sworn according to law,
says, the within WRIT OF SUMMONS
was served upon
MILLENNIUM PHARMACY SYSTEMS INC the
DEFENDANT
, at 0014:40 HOURS, on the 15th day of February , 2006
at 2250 MILLENNIUM WAY STE 30
ENOLA. PA 1702
KAREN STANSBURY (OFFICE
by handing to
MANAGER)
a true and attested copy of WRIT OF SUMMONS together with
and at the same time directing Her attention to the contents thereof.
Sheriff's Costs
Docketing 18.00
Service 14.08
Affidavit .00
Surcharge 10.00
POSTAGE .39
42.47
Sworn and Subscribed to before
me this _/7 day of
9 ?26ti A.D.
Prat tary
So Answers: R. Thomas Kline
02/16/2006
ANDREW SHEELY
By: Deputy Sheriff
Andrew C. Sheely, Esquire
127 S. Market Street
P.O. Box 95
Mechanicsburg, PA 17055
PA ID NO. 62469
717-697-7050 (Phone)
717-697-7065 (Fax)
RUSSELL E. DANIELS,
Plaintiff
V.
MILLENIUM PHARMACY
SYSTEMS, INC.,
Defendant
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
: 06 - 907
: CIVIL ACTION -LAW
: JURY TRIAL DEMANDED
NOTICE
YOU have been sued in court. If you wish to defend against the claims set forth in
the following pages, you must take action within twenty (20) days after this
complaint and notice are served, by entering a written appearance personally or by
attorney and filing in writing with the court your defenses or objections to the
claims set forth against you. You are warned that if you fail to do so the case may
proceed without you and a judgment may be entered against you by the court
without further notice for any money claimed in the complaint or for any other
claim or relief requested by the plaintiff. You may lose money or property or other
rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU
DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET
FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION
ABOUT HIRING A LAWYER.
IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE
ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT
MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED
FEE OR NO FEE.
Carlisle, PA 17013
717-249-3166
Andrew C. Sheely, Esquire
Attorney for Plaintiff
127 S. Market Street
P.O. Box 95
Mechanicsburg, Pennsylvania 17055
Cumberland County Bar Association
32 South Bedford Street
717-697-7050
717-697-7065 (fax)
Andrew C. Sheely, Esquire
127 S. Market Street
P.O. Box 95
Mechanicsburg, PA 17055
PA ID NO. 62469
717-697-7050 (Phone)
717-697-7065 (Fax)
RUSSELL E. DANIELS,
Plaintiff
V-
MILLENIUM PHARMACY
SYSTEMS, INC.,
Defendant
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
: 06 - 907
: CIVIL ACTION -LAW
: JURY TRIAL DEMANDED
COMPLAINT
Plaintiff, Russell E. Daniels, by and through counsel of Andrew C. Sheely,
Esquire, hereby files this Complaint, and respectfully states as follows:
1. Plaintiff is Russell E. Daniels, (hereinafter "Plaintiff") is an adult individual
who resides at 574 Meadowcroft Circle, Mechanicsburg, Cumberland County,
Pennsylvania.
2. Defendant, Millenium Pharmacy Systems, Inc., (hereinafter "Defendant") is a
Delaware Corporation with a principal office located at 2250 Millenieum Way, Ste 300,
Enola, Cumberland County, Pennsylvania, as of the filing of this civil action.
3. Plaintiff commenced employment as Director of Pharmacy operations with
Defendant on or about September 1, 2002 in Enola, Cumberland County, Pennsylvania.
4. In accordance with a written agreement prepared by Defendant dated June 11,
2002 attached hereto as Exhibit "A", Defendant agreed to pay Plaintiff an annual gross
salary of $95,000.00.
5. In accordance with a written agreement dated June 11, 2002 attached hereto as
Exhibit "A", Defendant agreed to pay Plaintiff quarterly incentive payments equal to six
percent (6%) of the gross profits generated by Defendant during Plaintiff s employment.
6. In accordance with a written agreement dated June 11, 2002 attached hereto as
Exhibit "A", Defendant agreed to provide Plaintiff with equity incentives in the form of
stock options to purchase fifty thousand (50,000) shares of Defendant's common stock.
7. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of May, 2004 equaled twenty-eight thousand one hundred five dollars
($28,105.00).
8. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of June, 2004 equaled thirty-five thousand eight hundred ninety-five dollars
($38,895.00).
9. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of July, 2004 equaled thirty-five thousand four hundred seventy-five dollars
($35,475.00).
10. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of August, 2004 exceeded thirty-five thousand dollars ($35,000.00).
11. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of September 2004 equaled fifty-seven thousand eighty dollars ($57,080.00).
12. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of October, 2004 equaled seventy-six thousand five hundred six dollars
($76,506.00).
13. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of November 2004 equaled ninety-seven thousand four hundred nineteen dollars
($97,419.00).
14. Plaintiff believes and therefore avers that Defendant's gross profits for the
2
month of December 2004 equaled ninety-one thousand five hundred forty dollars
($91,540.00)
15. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of January 2005 equaled ninety-five thousand two hundred forty-three dollars
($95,243.00).
16. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of February 2005 equaled ninety thousand eight hundred ten dollars ($95,810.00).
17. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of March 2005 equaled eighty-nine thousand one hundred seventy-two dollars
($89,172.00).
18. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of April 2005 equaled ninety thousand seven hundred ninety-six dollars
($90,796.00).
19. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of May 2005 equaled ninety-two thousand eight hundred thirty-two dollars
($92,832.00).
20. Plaintiff believes and therefore avers that Defendant's gross profits for the
month of June 2005 equaled ninety five thousand forty-five dollars ($95,045.00).
21. Plaintiff's employment terminated with Defendant on or about July 15, 2005
and Plaintiff is entitled to a portion of Defendant's gross profits for the month of July
2005 through the date of employment termination.
22. Defendant paid Plaintiff four payments of $5,000.00 each equaling a total
amount of $20,000.00 subsequent to Plaintiff's termination in accordance with the terms
and conditions of Exhibit "A".
COUNT 1 - BREACH OF CONTRACT
23. Paragraphs 1 - 22 are incorporated herein as if set forth at length.
24. After repeated demands, Defendant has failed to pay Plaintiff quarterly
incentive payments equal to six percent (6%) of the gross profits generated by Defendant
for the period of May 1, 2004 through the end of Plaintiff's employment.
25. Defendant breached the terms of its agreement with Plaintiff by failing to pay
Plaintiff six percent (6%) of the gross profits generated by Defendant for the period of
May 1, 2004 through the end of Plaintiff's employment.
26. Plaintiff is entitled to an amount of sixty-thousand, six hundred fifty-five
dollars and eight cents ($60,655.08), plus interest, less amounts paid after Plaintiff's
termination, as a result of Defendant's failure to pay Plaintiff six percent (6%) of the
gross profits generated by Defendant for the period of May 1, 2004 through the end of
Plaintiff s employment.
27. Plaintiff, at all times relevant to the claim set forth in this Count 1, fully
complied with all conditions and terms of his employment.
28. Plaintiff believes and therefore avers that the amount sought herein exceeds
the amount required for compulsory arbitration.
WHEREFORE, Plaintiff respectfully requests that this Honorable Court enter
judgment against Defendant and in favor of Plaintiff in an amount in excess of the
amount of sixty thousand, six hundred fifty-five dollars and eight cents ($60,655.08), plus
interest, and costs of this action, less any payments made after the date of termination.
COUNT 2 - BREACH OF CONTRACT
29. Paragraphs 1 - 28 are incorporated herein as if set forth at length.
30. Plaintiff believes and therefore avers that Plaintiff's efforts as director of
4
pharmacy operations substantially improved the business operations of Defendant.
31. Plaintiff believes and therefore avers that Defendant terminated Plaintiff s
employment directly as a result of Defendant's intent to prohibit Plaintiff from acquiring
stock in accordance with the terms of the written agreement and employment contract
attached hereto as Exhibit "A".
32. After repeated demands, Defendant has failed to provide Plaintiff with equity
incentives in the form of stock options to purchase fifty thousand (50,000) shares of
Defendant's common stock as set forth in Exhibit "A".
33. Plaintiff, at all times relevant to the claim set forth in this Count 2, fully
complied with all conditions and terms of his employment.
34. As a result of Defendant's failure to provide Plaintiff with equity incentives in
accordance with the terms set forth in Exhibit "A", Plaintiff has sustained damages in an
amount equal to the value of fifty thousand shares of Defendant's common stock as of
July 15, 2005, an amount in excess of compulsory arbitration.
WHEREFORE, Plaintiff respectfully requests that this Honorable Court enter
judgment against Defendant and in favor of Plaintiff in an amount of $50,000.00, plus
interest, and costs of this action.
COUNT 3 - BREACH OF CONTRACT
35. Paragraphs 1 - 34 are incorporated herein as if set forth at length.
36. Plaintiff was entitled to period of paid vacation in accordance with the
terms and conditions as set forth in Exhibit "A".
37. As of July 15, 2005, Plaintiff was entitled to five weeks paid vacation from
Defendant.
38. As a result of Plaintiff's termination from employment by Defendant,
Plaintiff has been damaged in the amount of $9,100.00, an amount equal to Plaintiff s
accumulated vacation leave, an amount requiring compulsory arbitration.
39. Plaintiff, at all times relevant to the claim set forth in this Count 3, fully
complied with all conditions and terms of his employment.
WHEREFORE, Plaintiff respectfully requests that this Honorable Court enter
judgment against Defendant and in favor of Plaintiff in an amount of $9,100.00, plus
interest, and costs of this action.
COUNT 4 - UNJUST ENRICHMENT
40. Paragraph 1 - 39 are hereby incorporated as if set forth at length.
41. As a result of Defendant's refusal to comply with the terms of its employment
agreement with Plaintiff after termination, Defendant has been unjustly enriched in the
amount of sixty-thousand, six hundred fifty-five dollars and eight cents ($60,655.08),
plus interest, as a result of Defendant's failure to pay Plaintiff six percent (6%) of the
gross profits generated by Defendant for the period of May 1, 2004 through the end of
Plaintiff s employment, less the amount of $20,000.00 paid after the date of termination.
42. Plaintiff has been harmed and suffered losses as a result of Defendant's
refusal to comply with the terms of its employment agreement.
WHEREFORE, Plaintiff respectfully requests that this Honorable Court enter
judgment against Defendant and in favor of Plaintiff in an amount in excess of the
amount of sixty thousand, six hundred fifty-five dollars and eight cents ($60,655.08), plus
interest, and costs of this action, less any payments made after the date of termination,
and amount in excess of compulsory arbitration limits.
6
COUNT 5 - UNJUST ENRICHMENT
43. Paragraphs 1 - 42 are incorporated herein as if set forth at length.
44. As a result of Defendant's refusal to comply with the terms of its employment
agreement with Plaintiff, Defendant has been unjustly enriched in the amount of fifty
thousand dollars ($50,000.00) due to its failure to provide Plaintiff with equity incentives
in the form of stock options to purchase fifty thousand (50,000) shares of Defendant's
common stock.
45. Plaintiff has been harmed and suffered losses as a result of Defendant's
refusal to comply with the terms of its employment agreement as to Plaintiff's right to
acquired stock from Defendant.
WHEREFORE, Plaintiff respectfully requests that this Honorable Court enter
judgment against Defendant and in favor of Plaintiff in an amount of $50,000.00, plus
interest, and costs of this action, an amount in excess of compulsory arbitration limits.
COUNT 6 - UNJUST ENRICHMENT
46. Paragraphs 1 - 45 are incorporated herein as if set forth at length.
47. As a result of Defendant's refusal to comply with the terms of its employment
agreement as to Plaintiff's accumulated vacation, Defendant has been unjustly enriched
in the amount of $9,100.00 by failing to pay Plaintiff for his accumulated vacation days
due Plaintiff as of July 15, 2005.
48. Plaintiff has suffered a direct loss as a result of Defendant's refusal to
compensate Plaintiff for unused vacation days as of the date of Plaintiff's termination.
WHEREFORE, Plaintiff respectfully requests that this Honorable Court enter
judgment against Defendant and in favor of Plaintiff in an amount of $9,100, plus
interest, and costs of this action, an amount requiring compulsory arbitration.
7
COUNT 7 - SPECIFIC PERFORMANCE - STOCK OPTIONS
49. Paragraphs 1 - 48 are incorporated herein as if set forth at length.
50. In the alternative, Plaintiff is entitled to specific performance to compel
Defendant to award stock options as set forth in Exhibit "A" as a result of Defendant
refusal to offer such stock options to Plaintiff as of the date of Plaintiff's termination
from employment.
WHEREFORE, Plaintiff respectfully requests that this Honorable Court direct
Defendant to offer to Plaintiff stock options at an amount equal to the stock as of the date
of Plaintiff's termination.
Res ct_ful/ly submitted
Andrew C. Sheely, Esquire
127 S. Market Street
P.O. Box 95
Mechanicsburg, Pennsylvania 17055
717-697-7050
717-697-7065 (fax)
8
Exhibit "A"
O
M p L L F M N! V M P N A R M A S Y
5 Y& T F F0. F I N r.
June 11, 2002
Mr. Russell Daniels
6343 Creekview Road
Mechanicsburg, PA 17050
Dear Russ:
As discussed at our meetings in May, this letter is to offer you a position as Director of
Pharmacy with Millennium Pharmacy Systems, Inc. (MPS).
Your employment will begin with the startup of an MPS satellite pharmacy in central
Pennsylvania, on or about September 1, 2002.
You will be paid a base annual salary of $95,000 plus a quarterly incentive equivalent to
6% of the gross profit generated by business serviced from your location. Your benefits will
include health insurance, vacation and other ordinary and customary benefits offered to MPS
employees. As discussed, vacation allowance will be 2 weeks for the first year of employment
and 3 weeks for each employment year thereafter.
In addition to the above you will be given an equity incentive in the form of a stock option
to purchase 50,000 shares of MPS common stock with two year vesting as follows:
• After 12 months 25,000 shares
• After 24 months 25,000 shares
The exercise price for these options will be at the most recent valuation for MPS common stock
at the time of vesting. The options will be subject to terms and conditions as determined by
the MPS Board of Directors regarding length, terms of exercise, taxability and other features
normally associated with both qualified and non-qualified stock option plans.
As a condition of employment and issuance of stock options, you will be required to sign a
mutually acceptable no-compete agreement.
Russ, we are pleased at your interest in joining the MPS tem and look forward to having
you be part of this exciting opportunity.
Sincerely,
Ga Du
Presiden d CEO
Cc: Mr. Steven N. Brody
Mr. S. Michael Streib, Esq.
VERIFICATION
I verify that the statements made in this Complaint
are true and correct. I understand that false statements
herein are made subject to penalties of 18 Pa.C.S.A.
Section 4904, relating to unsworn falsification to
authorities.
r
Date: January 2008
Russell E. Daniels
CERTIFICATE OF SERVICE
I, ANDREW C. SHEELY, hereby certify that I served
a true and correct copy of Plaintiff's Motion for Summary
Judgment upon all counsel of record on the below listed
dates by first class mail, postage prepaid to the last
known address of the persons named below:
Millenium Pharmacy Systems, Inc.
2250 Millenium Way, Suite 300
Enola, PA 17025
Millenium Pharmacy Systems, Inc.
103 Bradford Road, Suite 100
Wexford, PA 15090
Jacqueline Jackson-DeGarcia
Kirkpatrick & Lockhart Nicholson Graham LLP
17 North Second Street, 18t`' Floor
Harrisburg, PA 17101-1507
February ,
2008
Andrew C. Sheely; Attorney
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Andrew C. Sheely, Esquire
127 S. Market Street
P.O. Box 95
Mechanicsburg, PA 17055
PA ID NO. 62469
717-697-7050 (Phone)
717-697-7065 (Fax)
RUSSELL E. DANIELS
CIVIL ACTION - LAW
Plaintiff
No. 06-907
V.
MILLENNIUM PHARMACY
SYSTEMS, INC.
Defendant
PRAECIPE TO SETTLE AND DISCONTINUE
TO: CURTIS R. LONG, PROTHONOTARY,
CUMBERLAND COUNTY COURTHOUSE
CARLISLE, PA 17013
Kindly mark the above-captioned matter settled and discontinued.
Ay--.1)03t1R -
Andrew C. Sheely, Esquire
Attorney for Plaintiff
127 S. Market Street
P.O. Box 95
Mechanicsburg, Pennsylvania 17055
717-697-7050
717-697-7065 (fax)
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