HomeMy WebLinkAbout94-00842
,
"
dt
.11
I ,j
':rN
,I!
,!I
'J
"~"ory
J';
f,l
.~
'I
I,~
,.'H.~
'!I~
r~
;il!
:'~
',I
',V
,)
i'
l:i
';(
I'
'I'
,
" ,
, , ,
" 'I
"
, ,
'I
I,
j'
'I
I'
'"
;,
"
I"
'.1
"
'I"
i'
",
,
"
,
"
,I, '
/
/
,
~
~.
;1'
,
,I
,I
I
,
I,
;-1
,
!
"
>"
I
I
I;
-
"
1,'11
I
',')
I,
"
,
"
"
,I
I,
, ,
"I
"
"
~
,'"',
I'
'j
1 ~
~t,:
a; ,
" . ~
. ;,
(~ ':1~ .....
J,l -
," rll
.., r(
~ ('''-J ~l r.:. ,I.. '-'1 r(
\j 'oQ
(..f ~{
\E) , .1 ~ lIi
rn
'1.1 ~
"
~
...:
...
~!
-J >--J ...
"" ..-
~~3~
... ~ :5,1
o=' 'd
t-8;s
thn: "
U~~t
~~;::!~
z!> .
..-q,J U ~
.4-
~ 4-
~,~
;.J
"c:
"',~
~'"
"'~
w""
~
o
'"
! I
jl'I!~
cR$J"~
..,
c:
"'
'0
c:
OJ
4-
~
t-
;;.~
~
.(
-'
"-
:0:
CJ
L)
,
>
.
Cl
~
...
::!:
...
-'
,
"=
t-
'"
~
o
'"
~
...
"i'l
, ,
('I
I
"
Iii IJ
....,"I'.....'Hlt. .
MOil f.. ~ '....I"...,..IJ'
OO~""",yal' 1'''~IOlIMI'IOOIC)
.
'"
, .
.
, ,
,
v.
IN THE COURT OF COMMON PL2AB
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
NO. 8'1-;), c..v.:A I q"..
ROBERT A. ROMBERGER, II,
Plaintiff
IMR LIMITED,
Defendant
NOTICE
You have been sued in Court. If you wish to defend yourself
Igainst the claims set forth in the followin'j papers, 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 defense 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 rellef
requeElted 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 AF~'ORD ONE, GO 1'0 OR TELEPHONE THE
OFFICE SET FORTH BELOW TO FIND OUR WHERE YOU CAN GET HELP.
COURT ADMINISTRATOR
4th Floor, CUMBERLAND COUNTY COURTHOUSE
Carlisle, Pennsylvania 17011
Telephotler (717) 240-6400
Nonc I A
r.en han demando a usted en 1a corte. 8i usted quiere
defenderse de estas demandas expuestas en las paginas siguientos,
usted tiene vient,'l (20) dias de plazo al partir da la fecha de la
demanda y la notiflcaclon. Ustad debe presentar una aparlencia
escrita 0 en persona 0 pOl' obogado y archival' en la corte en forma
escrita sus defensas 0 sus objeciones alas demandas en contra de
su persona. Sea avisado que 81 usted no se defienda, 1a corte
tomara medldas y puede antrara una orden contra usted sin previo
avlao 0 notlflcaclon y pOl' cua1qulera queja 0 a1ivio que os pedido
en 1a pet icion de demandll. Us tad puede pEnder d i nero 0 sus
~ropiedades 0 osttos derechos importantos para usted.
IMR LIMITED,
De fendan t
I
I
I
I
I
I
I
IN THE COURT OF COMMON PLEAB
CUMIlERLAND COU NTY, PENNSYLVANIA
CIVIL ACTION ~ LAW tHl L1
NO. &"~:l. C~ InT
ROBIlR'1' A. ROMBERGER, II
Plaintiff
v.
COMPLAINT
----
1. Plaintiff is Robert 1\. Romberger, Il, at) adult individual,
residing at 61"9 Smithfield Street, llarrisburg (Lower Paxton
Township), Dauphin County, Pennsylvania.
2. Defel1dant is IMR Limited, a Pennsylvani" corporation, with
its principal place of business at 1215 Slate Hill Road, Camp llill,
Cumberland County, Pennsylvania.
3. Defendant caused to be executed and delivered to Plaintiff
a certain promisGory Note bearing date of October 25, 1993 in the
original principal amount of $253,139,89, a true and correct copy
of which said note is attaohed hereto, marked Exhibit "A" and
incorporated herein by reference.
4. Defendant has defaulted under the terms of the Note by
failing to make payments required on December 25, 1993 and any and
all payments due thereafter,
'3. On Jllnuary 5, 1994, Plllintlff nr,tified Defendant of his
intention to accelerate the entire principal amount of the Note as
prOVided in the Note and Defendant has failed and refused and
I'RoHUSORY "OTI
Amount I $;I !I 3 ,139.89
pat., October a!l, 1993
rOR VJ\r.UI II'CIIVIII>, the undersigned IMR Limited ("BorroWer")
promi~e. to pay to Robert A. Romberger, II ("Noteholder") the
prinoipal sum at TWO nUNPREO FIfTY TIlIUUI TlIOU8AIlO ONr, t1UNDRr,O
TIUR'fY tUNE DOLURS AND F.IGlITY NINE CEN1'S ($:153,139.89), with
interest on the unpaid principal balance from the date of this
Promissory Note at the rate of Seven peroent (H) per annum.
Principal and interest .hall be payable at suoh pleoe as the
Noteholder may designate in a series of Two lIundred forty 240
oon..outive monthly installments in acoordance with following
sohedulel (1) slllty (60) equal monthly payment. ot ONE TnOUBAND
rOUR IIUNDREU SEVEDTY SIX DOI,llIRS ANI> SIXTY rIVE CENTS ($1,476.65)
oonsisting of interest only at the annual percenteql rate ot
Seven peroe'lt (H), the firAt Buch payment to be mllde on November
215, 1993, and on the 26th dny of each month therutter, and (2)
One lIundred Eighty (190) eqllal monthly paymente of TWO TIIOUSAND
TWO IIUNDRED SEVENTY "lVfl OOLMRB MID TWr.IITY NIIII: CENTS
($2,2715.29) each, consisting of principal and inter.st st the
annual peroentage rat. of BeVen (7'), the first such payment to
be llIade November 25, 199B, and on the 25th day ot .ach month
thereafter. Buch monthly installments shall oontinue until the
enUre lndebtednenB evidenced by thh Promh8ory Note is fully
-1M
OOI8IT """
psid, exo.rt that .IIlY remllllling indet>tedn..s, it not sooner paid,
shall be dUB alld payable 'l'wonly (;la) yeau (rom the date hereuf.
It any monthly inllte 11ment ullder thls Promlssory Note is not
paid when dUll and remAin" unpllld after a date speoiUed by a
notice to 1I0rrower, the ent J re pdncipa 1 amount outstllnding and
accrued interellt thereon ahall at olloe become due and payable at
the optioll ot Noteholder. The date ..psotfied .hall not be le.s
than thirty days trom the date Buch notioe i. mlliled. The
Not.holder may exeroise this option to accelerate durJng any
detault by Borrower regardle.. of any rrior forbearanoe. If .uJt
i. brOu9ht to collect thl. prom1s.ory Nota, the Not.hCJlder ahaU
be .ntitled to colleot all reasonable cost. and expense. ot .uit,
lncludill9, but not llmit.d to, r.a.onable attorney's f.e..
Borrow.r may prepay the princJpIIl amount outstandin9 in
whole or in pnrt. ^"y portinl prepnymollt ..hllll be applied Igainlt
the prinoiplIl amount outstllllding and sholl not postpone the due
date ot allY subsequent monthly installment, or change ths amount
of such inlltllllmont, unless the Noteholder shllll otherwise a9~.e
in writing.
Presentment, notice ot dishonor lInd prot.st Ire hereby
waived by all makers, .uretieR, guarantors and .ndors.r. h.reof.
'I'hls prominsory Note shill! be the joint and ..everal obligation of
sll makers, sur.tl.., guaralltors and endor.ers, and shall be
binding upon them and their suocessors and assigns.
-2-
VERlrICATION
I verify that the statements made in the attached Complaint
are true and oorreot, partially upon personal knowledge and
partially upon my belief} to the extent language in the attachod
Complaint is that of my attorneys, I have relied upon my attorney.
in making this Verificltion. I understand that false .tatement.
herein are made subject to the penalties of 18 Pa. C.S. Seotlon
4904 relating to unsworn faloificatio
o.to f1~
,
, I
"
, ,
,
,
" I
I
,
"
II J
,I
"
I
"
, '
'I
, "
" '
,
,d
kl
I, i
I '
,It -I-,
.....n.... .. '..uev....
^TT"~NiY. liT LIIW
IIOJ UNQl.UILJWU "LMUIIUHII h>fl
.........~.", ..."Ill.".,.........A ."..0..'.....
"
.
. ,
.
Defendant
I IN THE COUR'f Of' COMMON PLJAB
I CUMBERLAND COUNTY, PENNfJYLVANIA
I
I CIVIL ACTION - LAW
I NO, 842 civil 1994
I
I
I
I
ROBERT A. ROMBERGER, II
plaintiff
v.
IMR LIMITED
U.." UD "I' MAT'1a
COMES NOW, IMR Limited, by it. attorneys, Hedger' Hedger
and answers Plaintift's complaint a. followsl
1. Admitted.
2. Admitted.
3. Admitted.
4. The averments of paragraph 4 of the Complaint are
admitted in part and denied in part, It is admitted that Deten-
dant has oeased making payments under the Note, It is denied
that tailure to make suoh plyments is wronqtul or that any
amount. whatsoever are due to Plaintiff by Defendant under the
Note. By way of further answer, Oefendant inoorporates the
averments ot paragraphs 7 through 12 hereof with the same force
and etfsot as it eet torth at length h~rein.
5. The averments of plraqraph 5 of the Complaint are
admitted in part and denied in part. It is admitted that on or
about January 5, 1994, 'laintiff. notitied Oetendant ot his
intention to acoelerate the principal amount ot the Note. It is
further admitted that Defendant has oeased making payments under
1
,
the Note. It is denied that tailure to make suoh payments is
wrongful or that any amounts whatsoever are due to Plaintiff by
Detsndant under the Note, By way of turther anawer, plaintift
incorporates by reterenc. the Iverments ot paral1uph,s 7 throuqh
12 hereot wlth the same to roe and etteot as if set torth at
len'jJth herein.
6. The averments of paragraph 6 of the complaint are
denied. I~ is denied that the Note provides that Plaintitt i.
entltled to reoover trom Oetendant any and all reasonable oost.
ot suit and reasonable attorneys' teee. On the oontrary, it ia
averr.ed that plaintitt ia not entitled to recover trom Detendant
any ooats ot suit or attorneys' fees whatsoever. By way of
turt~er answer, Defendant lncorporates by reterenoe the averments
ot para9raphs 7 through 12 hereot with the same toroe and ettect
as it .et torth at length herein.
"I' MATTia
AFFIRMATIVE OEFENSE
Aa and tor an Atfirmative Detense, Oef$ndant avers a.
tolloWIl
7. On or about ootober 26, 1993, Plaintitt and three ot its
stookholders, Robert 0, Chamberlain, Jr., Oawson E. Flinohbauqh
and Joseph O. Cerullo, entered into that oertain Agreement with
'laintiff (herdnatter referred to as the "Buyout Agreement")
wherlbYI (1) Detendant agreed to purchase 250 shares ot the
2
OQMmon stock ot Detendant owned by 'laintitt, and (:I) Robert D.
Chamberlain, Jr., Daw.on E. Flinohbaugh and Joseph D. Cerullo
agreed to purchase ,laintitf'. partnership interest in that
oertain 'ennsylvania general partnership known as synergy
A..oolate.. A true and oorreot copy of this Buyout ~greement 11
attaohed hersto as Exhibit "A" and made a part heuot.
8. The Note, Exhibit "A" to ,lalntitt"s complaint, was
executed pursuant to, and in accordanoe with, the above-oaptioned
Buyout Agreement and is sUbjMot to the terms and oonditions
thereot.
9. Pursuant to the terms ot the aforesaid Buyout Agreement,
Detendant Igreed that he would not direotly or indirectly, own,
manage, operate, oontrol, be employed by, participate in, render
advioe with respect to, or bo connected in any manner with the
ownership, management, operation or control ot any busine.s
similar to that ot IMR Limited [Defendant), within the states ot
.ennsylvania, New York, New Jersey, Maryland and Virginla for a
period ot five (5) years trom the date ot the Buyout Agreement.
10. In dlsregard of his obligations to Defendant under the
storesaid Buyout Agreement, 'laintitf engaged, and oontlnue. to
engage, in numerous sales calls, together with written and
telephonic solioitations, as a representative ot a competitor ot
Detendant, Without limiting the foregoing, Defendant, during the
months of November end Deoember, 1993, unlawtully and in
violation ot his obligations to Defendant made sales caUs on
3
behalt of a oompetitor of Detendant upon personnel of the offioes
tha ~ecorder of Deeds ot Cumberland, Dauphin, ~uzerne,
Northhempton, Allegheny, Carbon and Bradford counties.
11. The afore.aid .ale. oa11. and solioitation. by plaintitf
were made .without ju.tificatlon or excuse and in an attempt to
advanoe the intsrests of plaintitf to the detriment ot Dstendant.
13. The atore.aid ..les oalle and solioitation. by plaintitt
oonstltute a material breaoh by 'laintitf ot the ator..aid Buy04t
Agreement thereby relieving Defendant of all obligations to
Plalntitt thereunder and under the Note.
WHIREFO~E, Detendant demand. judgment in its favor and
against 'laintitt, together with .uch other and further reliet aD
to the Court may appear ju.t and proper.
COUNTERCLAIM I
13. Defendant repeat. and realleges the averments oontained
in 'aragraphs 7 through 12 hereof with the same foroe and efteot
as If set forth at length herein,
14. By reaaon of Plaintiff'S flagrant and material breaoh of
the atoresaid Buyout Agreement, Detendant has suttered, and will
continue to autter, damages in an amount exoeeding Ten Thousand
Dollars ($10,000).
115. By reason of Plaintitt's tlagrant and material breeoh of
the aforasaid Buyout Agreement, Detendant hereby resoind. aame.
16. Detendant hereby tenders to Plaintiff the 250 aha res ot
4
the oo.-on stook of D~t.ndant hsretofore owned by 'laintitt and
whioh were transferred to Oet.ndant pursuant to the aforesaid
Buyout Agr....nt.
WHEREFORE, Oefendant demand. judqmsnt in its favor end
against 'laintift a. tol10wsI
(i) In en a.ount in exoess ot Ten Thou.and Dollars
($10,000) r.pres.nting damage. sutf.red, and which will be
Buft.red, by Det.ndant a. a result of 'laintift'. breeoh ot
the atoresaid Buyout Agr.ement,
(ii) Damages in the amount of $3,231.69, toqether with
intere.t th.reon, repre.enting payments heretotore made by
Detendant to Plalntift under the Buyout Agreement,
(iii) Deolaratory judgment oonfirminq Detendant's
reoision of the afore.aid Buyout Agreement, and
(iv) Suoh other and further reUet as to the Court may
app.ar just and proper.
COUNTERCLAIM I I
17. On or about April 27, 1989, Plaintift, as an .mployee ot
Detendant, entered into an Employment Agreement with Detendant.
A true and oorreot oopy of this Employment Agreement ls attaohed
hereto as Bxhibit "B."
l8. Pursuant to the atore.aid Employment Agreement,
'laintitt agr.ed that he would not, for a period ot flve (~)
years att.r the termination or expiration of the Employment
Aqr.e~ent, withln the qreateBt ot the currently existing
marketing are. ot Employer [Detendant) ln the Commonwealth of
'ennsylvanla or any tuture marketing are. ot Employer [Defendant)
begun during Employee's (.laintitt'8) employment under the term.
,
I
'I
I
I
I
IS
ot the Imployment Agreement or a radius of a~o miles ot
Hsrrisburg, Pennsylvania, direotly or indireotly, own, manaqe,
operate, oontrol, be employsd by, partioipate in, or be oonneoted
in sny manner with the own.r.hip, management, operation Qr
control ot any busines. r.lated to miarofllm or miorotilm
processing or otherwise .imilar to the type ot bu.ines. Qonduoted
by Employer [Detendant) at the time ot the termlnation or
expiration ot the Employment Aqr.ement.
It, In diBuqard ot his obl1qations under the atounid
imploym.nt Agreement, Plaintift, durinq the months ot November
and Deoember, 1993, engag.d ln numerous sales calls, together
with written and telephonic solioitations, as a representative ot
a oompetitor ot Detendant. without limiting the tor'going,
Detend.nt during the afor..aid period, unlawfully and in
violation of his obl1gations to Oetendant, made sales calls on
behalt ot a oompetitor of Defendant upon per-onnel ot the ottioes
the Reoorder ot De.ds ot Cumberland, Dauphin, Luzerne,
Northhampton, Alleghsny and Bradtord counties.
20. The afore.aid sale. oall. and solioitations by 'lainti.tt
were made without justltication or excuse and in an attempt to
advanoe the lnterests ot Plaintitt to the detriment ot Detendant.
:11. By reason ot plaintitt's tlaqrant end material breaoh ot
the aforesald Employment Aqreement, Detendant has SUffered, and
will continue to sutter, damages in an amount exoeeding ~en
Thousand Dollars ($10,000).
6
AGIlI...ltlT
...1. A..........T, IIIlde th1B as day of e)otob...., un, by and
b.twe.n ~ob.~t A. pOlllb.rv.r, II (h....ein.ft.... r.f.r....d to ..
",.U,....") .nd IMP 1.11111ted ("nln"), Rob....t D. chamberlain, J....,
DIWlon I. rUnahbauvh .nd Jo..ph P. C:.ruJ.lo (h.r.ln.ft.r ....ferrred
to a. "Buyer.").
".I~I"', S.U.... and nuyera are .harehold.r. of IMR, .aoh
ownln, THe) IIUNDnlO rIFT" (250) .hu'e. of tha b.u.d and
outat:andlnv Clommon .tock th.r.of,
".I.IA', I.U.... and Buyel'l u., partne.... in th.t Clut:aln
p.nnaylv.nll vene...al pa...tne....hip known a. synervy A..oolato..,
e.oh ownlnv Tw.nty Flv. percent (25') ot the earnin9. and c.pital
th.~eot ,
WHlnl"', Selle~ deli~.. to 1.11 and IMP and Buy.r. d..lr. to
~.d..lII and buy, r..pectlv.ly, the common .tock ot IMP and the
8yn.rvy A..ooiat.. p.rtn.r'hip intere.t ot Seller,
HOW, T..RlfORI, the partie. her.to, ln con.lderation ot the
.utual cov.nant. and promi.e. her.ln oontalnod, and for oth.r
vood and valuable con.id.ration, heraby 8gre. a. follow.1
1. .al., pu~oha.., oon.ultlnv and cov.nant. S.11.... h.r.by
av~ee. to ..11, and IMP and Buy.r. har.by evr.e to r.d... and
purcha.., ra.pectiv.ly. the IMn l.lmit.d common .took and t.h.
Iynervy A..oolate. partn.....hlp illt......t of S.U.r (herdnatter
-1-
EXHIBIT A
...,....... 110 e. the "'took" and the '1..l'tne...hip Int.....t",
....p.otiv.ly) .nd, furth..., Selle.. .Vr.c. to turni.h oon.ultinv
..I'vioe. to, .nd not to oompete with, IMR in aon.lde...tlon fol'
the total .u. ot SU /IUNUI1ID T/lOU8AND DOLLI\R8 (.100,000) to be
paid by INR end .uye... to ..11er, inolu.ive ot prlnoip.l and
int.....t .t the rate ot aeven ~e..oent en) pe.. annum upon the
unpaid b.hna. in re.p.ot ot .dd Stock and Partn....hip Int.re.t,
.ubjeot to I'.duotion in the .vent of mandatory or di.o..etionary
p~.p.ym.nt ot principal as h.rein provided, and inoludve at
oon.ultln9 fee. and Sell.r'. oovenant not-to- oompete, all a.
lIore p.rtioularly d..oribed and lIet torth hereinb.low.
2. 'doe - INR Stook. IMIl shall pay to Seller in
aon.id.retion tor the stook the principal .um of 'l'WO /IUNI>IlED
FIFTY TJIRI. T/lOUBAND aNa IIUNDRIJD 'l'lllR'l'Y NINI DOLLAI1B AND IIOJlTY
NINI CINTI e$21l3,13e.U) tOCjJether with intere.t .t the annual
peroent.ve rata of S.ven percent (7\) upon the unpaid b.lanoe
ta"01l tille to time out.tanding, whiah .um shall be evid.noed by a
pl'ollli..ory note ("Promis.ory Nota 11"), in tarm .ub.tantially a.
.et forth in Ixhibit I .ttaahed hereto, whioh Proml..ory Not.
.haU provide tar Two /Iundr.d forty (240) monthly paym.nte in
aoool'lI.noe with the tollowin\J .ohedulel (1) Bbty (10) .qu.l
1I0nthly payment. of ON. TIIOUB^NU 'OUR /IUNDI1IlD SlVINTY IlX DOLLAI1'
AND IIXTY PIVI CINTS ($1,471.6S) eaoh oon.l.tin\J ot lnter..t only
at the annual p.rcentave rat. ot Sev.n peroent (1'), the th..t
-2-
.ua" p.)'..ent _0 be ....s. Hovemb... :u, 1113, .nd on the 211t.h d.)' of
..ah ..onth th....e.fI:.r, .nd (2) on. llundnd 11911t)' (110) equal
..ont"l)' p.YII.nh at 1'"0 TIIOU8I\HD TWO IIUNDRID 8IVIN'I'Y nv. DOl,l.I\n,
A/fD 'I'ltINTY /fIN" CRNT' (U,:17I1.U) e.oh, oond.l;1l1\J of prino1pal
.nd inter..t .t the .nnu.1 p.roent.9. r.t. of ..ven p....oent. (7'),
the 11r.t .uoh p.)'lDellt to be m.d. lfov.lllb.r 211, nea, .nd on the
311th d.)' 01 e.oh month ther..fte....
3. '~la. - .....tn....."lp lnt......t. Buyers .hall p.)' t.o
.eU.r in oon.ld.ration fo... th. l'.rtnenhlp lntere.t the
pdnoip.l .UIII at 'l'Wllf'l'Y FlVI 'l'1I0USAND DOLLl\RS AND NO CaNTS
(UIJ,ooo.OO) tov.ther with 1ntaa:"..t at the .nnual peroent.ve ....t.
of ..v.n p.ro.nt (7') upon the unpa1d belanoe fro~ tilD. to tl..
out.tendln9, ",hloh .UIII .h.ll b. .v1deno.d by . promb.ory note
("p",ollls.ory Note '2"), in lorm subat.nt1.1ly .. .et fo...th in
IlChlblt II .tt.oh.d h.reto, which promb.ory Note shnll p...ovide
for Two lIundr.d Forty (:140) mont.hly payment. in aooordano. with
the toll owing .ohedulel (1) sixty (60) equal monthly paym.nt. ot
ONI IIUNDRID 'ORTY Flva DOLLAnS ANI) tlXGIITY 'l'IIRB! CBN'l'S ($1411.83)
.soh oon.bUn9 ot inte.....t only at th. annual p.ro.ntag. rate of
I.ven percent. (n), the Unt suah payment: to b. made Nov.mb.r
215, un, end Qn the 25th day of ..011 month th.nafter, and (2)
On. lIundred li9hty (180) .qual monthly payments of '1'WO IIUNDRID
TWINTY rOUR DOl,Ll\nS AND SBVENTY ON! CINTS ($224.71) ..oh,
-3-
aan.i.ting of prinoipsl snd inter.at at the snnual p.ro.ntag.
~ste of 'even peroent (7'), the first .uoh pay...nt to be .ad.
Nave.b.r 25, uee, snd on the :15th dsy of .aoh month th.re.fte....
4, oon.ultinw ,ervioes. Seller und.rtak.. and awree. to
provide oonsulting servloes to IHR durin", the rive (II) y.ar
period b.winnin\J ootober :lIIJ, lV';), and endln\J Ootober 24, nv"
at suoh tlme. as IHI\ may rea.onably ...equ..t not to .xoeed 'l'hree
(3) "ay. per week during the period Monday through Friday.
Anythinw hereinbefore to the oontrary notwithatendlllg, nothinw
herein .hall be deemed to limlt S.ll.r's r19ht to obtain
oommisslons, tinder's tees or other oompensation frail third
parties who, throu\Jh ..ller'. effort., enter into a busin...
relationship with or do business throu9h 1HI\.
15. Oovenant Hot-to-compet.. Seller h.reby a",rees that '"
.hall not, diraot,ly or indireotly, own, Inana",e, opente, oontrol,
b. .mployed by, partioipate in, nnder advioe wlth re.psot to, or
be conneot.d ln any manner with the ownership, manalj/ement,
operation or oontrol at any bu.in... .imilar to that of IHR
Llmited within the states at Pennaylvan1a, New York, N.w Jersey,
Mnyhnd and Virginia tor e period of ,ive (5) years frOM the
date of this ^vr.ement, as 10n9 .. Buyeu or any parson darivinv
title from Buyers to tha 900dwill of IMR Limited carrie. on the
bUliness ot JHR Limited in said states. Buyars shell be
entitled, in additlon to .ueh other r.medias as th.y may have, to
equitable relief from any breaob ot this paragraph without proot
-4-
01 aotual de..v.a t~at t~e~ ~ave aufl.red or .ay sutt.r b~ such
b~.soh.
.. Gon.ideration - Consultin9 'ervioes and Covensnt "ot-
to-Co.pelle. IMR shall pa~ tu Sell.r: ln condderation tor the
storedeacribed conaultin.., .ervioes and covenant not-to-oomp.te
'iIcl:y ('0) eque1 monthly paym.nt:a of IIOHT IlU.'IJREU SIlVINTY SIBVIlN
DOLLARS AND fU'....Y 'l'Wo CIlN'l'S ($877.52) each, the first pa~llI.nt 1:0
ba made Ootober 315, 1993, and on the 25th day or 8Ioh month
there.fter. .rovided, however, in the event of dehult in the
payment ot the ator..aid sums tor a period ct 'l'hirt~ (30)
oonaeoutive d.~., than SaU.r'. obll..,.l:1on to provide conaultln9
servioes pursuent to par.vraph 4 th.raot and the ooven.nt not-to-
compete desoribed in Paravraph II hereot .hall be elCtin\luished.
7. Rel.... of par.onal Guarantee.. Upon aettlement
hareunder, Buyera sholl procu...., and tender to Seller, the full
and unconditional release or Seller ("~eleftse") frOM liability ftS
9uar:antor of the obliqfttions ot IMR Limited to lIershey Sank under
that oertain line ot credit dated May 13, 1993 ln ths maximum
amount of TllnEI IIUNDRBD THOUSAND DOLUns ($:JOO, 000) and that
certain promi.sory not. dated Hay, lJ, 1993 in the oriqinal
prinoipal amount of PIVI IlUNun.D 'l'UOU8AND DOLUItS ($!l00, 000) .
8. .xae.. GOlllpensal:ion. It, and to the extent, Suyera, or
any ot them, .hall receive or IMn Limit.d annual compensation, to
inolude compen.atlon paid under one or more qualified or non-
qualified deferred oompenution plans, ill excess ot thl "Ba..
-!l-
".ount" h...einbelow defined, then, in suoh .n event, 'eUer .hall
'orthwlth ..eoeive of Buyer., .. eoo.l....t.d payments 0' prinoipal
unde&' promis.ory Note 11 de.o&'1b.d in paragraph 2 h.rdnabove, an
..ount O&' a..ount. equal to Twenty riv. peroent (:Ill') ot suoh
.xo.... Da.. Amount is defined a. oompenlation pald to Robert o.
Ch.mb.rlain, Jr., Daw.on I. Flinohbaugh and/or Jo.eph D. CerUllo
ot up to ONS IlUNDRED 'l'IlOUSAND UOLLARS ($100,000.00) .uoh amount
to inorease .nnually, on the tir.t day ot January ot eaoh y.ar
durin\J whioh any amount remain. unpald und.... promhsory Note '"
de.oribed in paragraph 2 hereinabove, by that p.rcentage
d.termin.d by addi/ll~ rive .ercent (15\) to the Con.um.r Prio.
Ind.x 'o&' AU Urban consum.ra, all item., tor PhUadelphia,
Penn.yl vania - New Jers.y, BI pubU.hed by the U. S. Bureau of
Labo&' statistios for the imm.diately pr.o.ding twelve month
period. For purpose. of this paragJ:'aph the t.rm "Buyers" shall
inolude 011 individual. and entities to whom ownership of the
oommon stook ot IHR Limit.d of any Buyer would b~ attributed
pu&'.uant to Section 311 ot the Internal Revenu. Cod. ot 1'86, a.
am.nded .
t. .al.. of ll1R .took. In the ev.nt IHR und.ll'take. the
..le of it. .qu1ty ..ouIl'1t1.s .uoh that the p.ra.ntav. of .quity
own.&'.hip of IHR repr..ontlld by the Sl;ook Is reduoed, th.n, upon
demend of Sell.r, S.ller .hall torthwith reoeive of IHR, a.
.ccelerated payment. at prinoipal under Promissory Not. 11
de.oribed in pBrlqrlph 2 h.rdnabove, an amount or IImountl which,
-6-
when added to .U pl'ev.l.ou. .uoh paymant., ..I'ves to reduoe the
pl'.I.no.l.pal belanoe due undel' 1'1'0...1.8.01')' Nol:e '1 to an amount whioh
ba...s the ..... nt.l.o to TWO IIUtfORID FIFTY '1'IIRII 'l'1I0USI\ND ONIIl
nUNDR.D THIRTY NIHI 1>OI.lJ\n8 I\HD .IOIlTY NUll CEH1'S ('all:J, U8. IV)
.. the pel'oentage of owner.hip represenhd by the "po.t .ale"
stook bear. to 22t.
10. lettle.ent. SetUem.nt 1:0 oc:maummate the puroha.. and
.ale of the 8took and partner.hip lnter..t oontemplated hereby
.hall take pl.oe .t the oUioe of IMR Lillited at 10100 ..m.
Ootober all, 1811:), at whloh tim., (1) IMn and Buy.r. .haU tender
to S.llel' the Rel...... the pl'omi..ory Not.., the 8eourlty
A9l'eement. .nd the payment. provided in para9raph. 2, :I .nd 6
hereof, and (2) Seller .hall tender to IMR and Buyers
oertifloates tor the stook and th. partner.hlp Intere.t,
re.peotively, duly .ndorsed for transfer in .uoh manner a. IMR
and Buyers may requlre.
11. further A..uranae.. Seller, IMR and Buyer. shall
tender to eaoh other and/or exeoute Buch additional dooument. a.
m.y rea.onably be neoe...ry to 91ve ettect to, and implement the
prov1aion. of, this ^qreemellt.
12. leaur.l.ty. The promi.eory Not.., 1:0gel:her with all .Ums
pay.ble by IMn 811d Buyer. 1:0 Seller under para9raph. 2, 3 and 6
h.reof, .hall be seoured by I:he stook end partner.hip Inhrest as
provldod in .ecuril:y llqreemente (1I800urll:y ^9reomont 11" and
"seourity ^9rollment U") to be exeouted by Buyers ln torm
-7-
.\I~.t.ntiaU1 .. ..t fo&"th 1n Ixh1b1ts UI .nd IV .ttaohed
he&"eto, &"e.peot1ve1y.
13. Inroroe.ent. Anythinv he&"einbefore or herein.fter to
the oontrary notw1th.l:andill"', SeU.r lIIay entorce the obligat.ion.
evldlllno.d h.reby relative to the 8toClk and partn.r.hip Int.re.t
.01.1y .9ain.t IHR .nd Duyar., re.p.otively.
14. Intire 1\9r.....nt. Thb ^vr.ement oon.titute. the
.nUre .vre....nt betwe.n the parti.. pertaininv to the subJeot
..tte&" h.reof and .uper..de. .11 prior e..,r.ements, repre.en-
t.tions .nd undertaking. of the parti.. whet.h.r or.l or written.
No .upp1e...nt, modifioatlon or waiv.r ot thb ^gre.ment .ha11 be
bindinc;r unle.. oont.ained in a writing .xeouted by the party
ac;rain.t who.. .uoh supplement, lIIodifioation or w.iv.r is .ought to
be .nforo.d.
15. lurviv.1 of R.pre..nt.tions. ^ll repre.entation.,
warrantie., oovenant. and agr.ementB of the parti.. oontained in
this ^gr.....nt, or any in.trum.nt or other document. deliv.red
hereunder, .hall .urvive delivery of the stock and l'ortlleuhip
Inter..t.
111. Oovern1n9 Law. '1'hls ^9uement .hall b. oonstru.d Und.r
and vov.rn8d by t.he law. of the Commonwealth ot "ennsylvania.
-8-
OOIll/" 11110
017177t1lO11
111I 1.1111111)
11001
.
.
'.
'--
,I
~ .AW...' "'110., '.11.~ an<< luye~. bave ...outed tbi.
,Atl'....nt on th. "'-to Ul'Bt her.inabove vdtten.
'ILLIA
- t.t'
, ,
-.-
'1lOIII"ORY "OT.
A_ount. .a53,13....
Datel Oatob.r aD, 1..3
I'OR VALVI aICIIV.D, the underdlln.r;t INR Limited (IIBorrower")
promise. to pay to Roberl: A. RClmb.rller, II (IINoteholder") the
pt:'inoipal sum ot TWO IlUNDRBD FIFTY TIIRIlB 'l'1I0USMfD ONr IIUNDRII)
TIIIRTY NINI DOLlJ\RS AND BIGIlTY NINS CENTS ($:153,1311.89), with
lnt.rest em the unpaid prinoipal blhnoe from I:he date of I:hls
Prolli..ory Nol:e el: I:he ral:e ot SeVen pera.nl: (7') per annum.
.rinolpal and intere.t shall b. payable at such plaoe a. the
Not.hold.r may deDi9nate in a ..1'1.. of 'l'wo lIundred Forty :1140
oon..outive manl:hly J.n.l:aUm,"ts in aaco...dance with fClllowinll
.oh.duh I (1) sJ.xty (1l0) equal monthly Pllym.nte of ONI TIlOIlSANIJ
rOUR JlUNORID SJ!lVSD'rY SIX DOLLARS ANI) SIXTY 'IVI cflN'l'S ($1,4711.11!S)
oonsistillq ot inl:l.....t only al: th. annual p....o.lIl:aqe ral:e ot
Beven pero.nt (7'), the Urst suoh payment to be mad. on Novamber
:Ill, 151113, and on the 311th day ot eaoh month th.reafter, and (3)
One Jlundred Ilghty (180) .qual monthly paym.nts of TWO TIIOUSMfl)
TWO JlUNDRID BIVIlN'rY 'IVI DOLLARS ANI> 'l'WIlN'l'Y NINI!l CIllNTS
(ta,37D.3.) .sah, aonsJ.sl:inv of p...lnoipal end J.lltere.t al: the
annual pel'a.nl:eve rate of Sev.n (7\), the Ur.1: such payment to
bl ..ade November 35, llu.e, end on the 2!Sth day of each month
thneatter. Such monthly lnsl:allm.nt. .haU oontinue until the
entire indabtedn.s. ev ldenoed by thls Promhsory Note is fully
-1-
pdel, exoept. that Inv I'ellaining 1ndll1t.d"..., if not. .oonel' paid,
ahan b. due anel plyable Twentv (30) ye.ra frail the dete hereof.
It any ..onthly in.tallm.nt und.r t.hi. Prolll..ory Nate i. not.
paid when due .nd r....in. unplid .fter . dlt, .p.oified by a
notio. to Borrow.r, the en\:ire prlnoipal .mount out.t.ndinv Ind
aoorued intere.t th.reon .hall at onol beoome due and payable at
the option of Not.holder. '1'h. date .pecUhd .hall not be le..
than thirty day. froll the date .uch notice i. maUed. '1'he
Not.hold.r lIlav exerol.. this option to aooderet.e dudng .ny
d.f.ult by Borrow.r re9al'dle.. of any prlor forb.areno.. If .uit,
is brought to ooUeot this promi..ory Not., t.he Noteholder .hell
b. entitl.d to ooll.ot all rea.onable co.t. and .xpen... of .uit,
inoludinq, but not. limit.ed to, rea.onable att.orn.y'. he..
Borrowel' mav prepay the prinoipal amolJnt. Qut:.t:andin9 in
whole or in part. Any partial prepaym.nt .hall be applied a'ldnat
the prinoipal amount out..tandinv and .hall not po.tpone t.he due
date ot any .ub..qu.nt monthly in.tallment., or ohanve tha amount
ot .uch In.tallm.nt, unle.. t.he Noteholder .hall otherwi.e egr.e
in wr1tin\J.
pr...ntment, notice ot di.honor Ind prot.e.t. are herlbv
'''Iived by 011 mlker., .ureti.., 9ulrantor. Ind ..,dor..r. hereof.
Thi. prollli..ory Note .hall b. the :Joint and .ev.ral ob119al:1on of
all mak.r., .uretie., \Juarantor. and .ndor..r., end .hall b.
binding upon th.m end thelr aucoe..or. Bnd es.lgn..
-2-
'ROHX"ORY IIOTI
A_ount. '25,000.00
Oatel ootober: U, un
roa V~LU' .IOIXV.D, the und.r:sivn.d Rob.rt O. chamberleln,
':1a~., 0.'01.011 .. rlLnohbau9h and Jo..ph D. Cel:uUo ("Dorrowel:.")
prollbe to ".Y to Rob.rt ^. RomberVer, II ("Not.hold.r") the
pdnoipal .UII or T"'INTY "XVI TlIOUSAND 001.1oI\Ra (.u,ooo.OO), with
.lntsn.t on the unpaid pdnoipal balano. fr:om the date of thb
....L...~y Hote ._ the ~ate of e.ven p.l:o.nt (7') per annum.
Pdnoipal snd 1llter..t shall be payable at suoh plaoe .. the
Not.holder: IlI.Y desLvnate ln a ..d.. of Two lIundr:ed For:ty (340)
conseoutLve monthly Lnstallments in aooord.no. with tollowlnv
.oheduhl (1) sixty (110) equal monthly payments ot aNI llUNDIUlD
PORTIr rxvI DOLl.1lRS AND IlIGlITY 'l'IIREB CBN'l'S (U4!J. 83) oonsbtin." ot
intere.t only at the annual peroenta."e rat.e ot Seven peraant
(7'), the first .uch payment to be made on Novemb..r 211, un, and
on the 211th day of eaoh month thenafter, and (2) One lIundrad
8i9hty (180) equal monthly paymenta ot 'I'wa IIUNDRl!lD TWENTY FOUR
DOLl.1lRS AND BEVlBNTY ONI CENTS ($324.71) each, oonaLstin9 of
prinalpd and interest at the annual percenl:a."e rete of Seven
(7'), t.he thst .uch peyment to be made November: 215, 19118, and on
the :15th day or eaoh month thereafter. Suoh monthly installment.
.hell oontlnue until the entin lndebtedn.s. evidenoed by thJ.l
pr:omlssory Note 1. tully paid, except that any remain1ng
-1-
Ande_'odno.., l' no~ .ooner po1d, .hall b. duo and payable Tw.n~y
~aO) y.al:'s troM the date henof.
Xf sny Monthly lnstaUlllent under th1s Prolllisscu;,y Note 11 not
pa1d when due and r.ma1n. unpa1d aftor a det. speo1t1ed by a
notioe to Borrower, the entin principal alllount. out.t.andln9 and
acorued int..nst. thoreon shaU at ono. beClome due end payable at.
the option of Noteholdar:. '1'h. date .peClif hd .hall not be less
than thlrty days fro. the date such notloe 1. mailed. The
Not.holde~ .ay exerciss thls option to eOCl.ler.te during any
detault by Borrower. r.9ardless ot any prior torbearsnce. If
.ult is brouvht to oolleClt this Promi..ory Note, the Not.hold.r
.h.ll b. .ntitled to oolleot all rea.onable cost.s and exp.ns.s of
.uit, lncludlng, but not limited to, r.a.onable attorn.y'. f....
Borrowers may pnpay the pr1no1pal amount outstand1nq in
whole or in part. ^ny partial prepayment .hall b. appUed agdn.t
the prinoipal amount. outatandin9 and .hall not postpone the due
date ot any subsequ.nt monthly in.tallment, or ohange the amount
of such in.tallment., unl..s th. Not:8holder shill ot.herwise agr.e
in wrltin9.
pr.sent.m.nt, notioe at dishonor Ind prot.st are horeby
wsiv.d by all makers, sureti.s, vuarentors .nd .ndor.ers har.ot.
This Promissory Not. shall be the joint and ..verll obliVltion of
all mak.r., suretl.s, guarantors and endors.rs, and .hlll be
binding upon tham and their .uco...or. and ..signs.
-;2-
t
'IQURITY AQRIIMINT
lMR Limited (herdnafter I'8ferred to s. "ObUvor"~,
.intendinv to be levally bound, hereby e9re.s that Robert A.
RolllbarVar, Xl (har.inafter referred to II "Secured Party"~ and
hi. .ugge..or. in int.re.t will have a .acurity int.re.t in TWO
IIUIfDRID FIFTY (aI50~ .han. of common .took ot IMR Limited
(herdnafter referl'8d to e. the "Collateral"~ to .eoure the
p.ymant at a Promi..ory Note at .v.n date herewith executed by
Ob1ivor to Secured .erty in the prinoipal amount ot TWO IIUIfDRSD
PUTY TJlRIB TJlOUS^ND ONE IIUNDRED THIRTY NINE DOLLARS "NO IlIGIITY
H1NI CBNTS ('aI53,139.89~ (her.inatter referred to as "Promi..ory
Hol:."~ payable .. thereill pL'ovidlld olld (or par(orm.nue by ob1190r
of the agnaments herdn .et torth.
OBLIGOR' WARRANT.
1. ObUvor J.s the owner at the CoUat.erel ole.r ot aU
lian. and .ecurity lnterest. .xoept the ..curity interest vrantad
hereby,
:a. ObUvor ha. the rivht to maka thi. "lIreement, and
:J. '1'he CoUateral 1s Il.ad or bou9ht for u.. primarily for
bu.ine.. purpo....
OBLIGOR AlaRII' TllAT n.
1. Hill pay lecured Party, or hi. .uccee.ors in interest,
all amount. p.yable on the 'romie.ory Not. a. when the sam. shall
be due and payable, whet.her at maturity, by acoderation or
-1"
" ,
othe"",lse, IIInd will pel'lor:1I eU terMS ot .dd Pro.issory Note and
this or any othe... seourity or loan sgreement betw.en ObUgors and
8SClUl..d 'arty,
3. lfiU defend the Collat8l'al elj/ainat the olaims and
de.ands of all persons,
3. WU1 not (a) permit eny liens or aeour1l:y inl:erest. to
attaoh to sny of the coU.te&'al whioh an aup.dor to the U.n
ol'.ated hereby, (b) permit any of the collate&'al to be levied
upon unde... .ny leval prooa.s, (0) dispo.e ot any ot the
Collateral without the prior written oon.ent ot Seoured Party, or
(d) p.rmit anything to b. don. thaI: may impair tha value ot any
of the CoUateral or tha ..ourity intended to ba afforded by this
Alj/re.m.nt, and
4. Ixoept to the all tent ot existin9 lien., will obtein, on
de.and by I.ourld Party, a ...ellase ot any olalm to an interest ln
the Collateral whioh is superior to the Uen onated henby.
Ilcaow ,aOVI.I0NII
1. Upon exeoution he&'eot, Oblivo... and .Iourad Party shall
tender the Collateral, in the torm of rive (e) o.rtifioate.
rep...es.ntlnlj/ 'ixt..n (16) .haras end Ten (10) oertit1oat..
rep...es.ntinlj/ Sevente.n (17) shar.s, respectively. of IMR Limited
oo....on .took, duly .ndon.d by Seoured Party tor tran.tsr, to
Mellon Bank, lIarriBburg, pennsylvania, (hereinafl:er r.t.rred to
a. "I.orow Alj/.nt"), or to such other bankinlj/ inatitution a.
Oblilj/or and Seoured Party may mutually appolnt, .uoh I.orow Agent
-2-
'0 hold the O~ll.teK.l .nd di.tKi~ut. .... in .oo~Kd.no. with the
tn'.. hneot.
:I. .evinninv Ootober :la, UIlII, .nd upon eloh .ub.equant
.nniver'lry of the proai..ory Hote, provldad .... Ihlll not be 1n
default, ..orow AVlnt Ihal1 dl.tr1bute to Ob1190r I .took
certitlolte repra.enting' (1) sixteen (16) .h.re. ot INR Limited
COMmon Itoak on the .ixth through the tenth annivlr.ari.., Ind
(3) .evanteen (11) Ihlr.1 of IHR Limited oommon Itoak on the
deventh through the twentieth a"niver.arlll.
3. The fore901n9 notwith.tandlnq, Ilorow Aqant Iha11
forthwith tender to ob1190r, upon damand of obligor,
cartifiolte (.) repra.entlnq that number of whole Ihare. of IHR
Limit.d common Itock (rounded to the nearelt: .hare) which, when
add.d to the number ot Iharel tenderad purluant to .ubparaljJraph :II
above, baar. the .ame ratio to 280 III tha tot.a1 Pllyment. of
pdncipal mad. by obliqor under the Promislory Hote bearl to
'353,139.89, it beinq the intent heraot thllt:, in the event
ob1190r mike. mandltory or di.oretionary prepayment. of the
principII ot the Promi.lory Nota, ObliljJor Iha11 obtain, DXQ I&ta,
1'11.... from Illtlrow ot the .harel of INR Limited oommon Itook
conltitutinq the Collateral.
... Anyth1n9 ha...einbafo...e or harelnafhr to tha oontrlry
notwithlhndinljJ, .h...'e. of INR Limitad common .tock tendered to
Obli90r pur.uant to .ubpau9reph. :II and 3 haralnabclYe .he11 ltand
-3-
r.l....d fro. the t.r.. of thl. S.ourity ^9r....nt .nd .hall not
thereafter oonltitute Collat.rll hareund.r.
5. Upon default by ob1ivor in the Plly..nt of any
in.tall.ent of prlnaipll 01' intere.t und.r the Pro.i.lory Note,
whloh default Ihall r...a1n unourad for a p.riod of thirty dlY.
IIt.r writt.n not10. to our. by S.oured Party to ob1190r, ..orow
A,.nt Ihlll t.nder III Collat.rll in it. pO....llon to obll,or.
U_TJL DlrAULT, Ob1190r and may .x.rol.., on In exolu.1v.
ba.i., all votinv, divid.nd, llquid.tlon and oth.r ~19ht. in the
Co11ataral in Iny lawful mlnn.r not Incond.t.nt wlth thi.
l\'iJr.ellllnt.
IN THI IVI_T or DlrlULT by Obllvor in the performlno. of any
cov.nlnt or allnlmant h.nin, or in the di.eharlle of any
liability to Seourld Plrty, Slcur.d Party will hive III of the
riVht. Ind r.medl.. of I ..cured party und.r thl Unlform
comm.roll1 Cod. 01' other appliClbl. law and all ri9hta provided
/llrein, in the Ibovl-nf.nnc.d Promi..ory Note, Ind in Iny oth.r
applicable .ecurity or loan 8I1re.ment, all of which rillht. and
rem.die. will, to tha full .xtent plrmlttld by llW, be
cumulative. The waiv.r of any default hlr.undlr will not b. a
"aiv.r ot any .ubeequ.nt d.fau1t.
All rivht. of S.curld party h.r.undlr will inure to the
benefit ot hi. .uaee..orl and a..illn..
-4-
, "
I. .17.... w....or, Ob119or and ..oured Party have .xeout.d
thi. A9r....nt thi. 3Dth day of Oatob.r, 1"3.
.,eua.D .AIlTY
RObert A. Ro.b.rq.r, II
OILIGOa
IN. Liai tad
By.
~lI't D, chamberlain, Jr:.,
_ pre.id.nt
-I'
-,
,
, ,
- 1
" ,
, "
, '
"
, -
, '
,
1,"'5_
,
l'
. " .
"OUftl" AOa..KI.,
Pob.lt't D. che..barlain, Jr., Daw.on II. rUnchbau'iJh and Jo..ph
I). celt'ullo (hlit'e.l.ndtar rdernd to a. "ObUvoJ:."), .I.ntendin9 to
lie 1.,aUy ~ouncS, hereby I,re. that Robert. A. Romblit''iJer, II
(hereinlfter referred to I. "Ieoured party") and hi. .uoo...or.
In inten.t will hlv. a ..oudty inter..t in a Twenty rive
pe~oent (2It) intere.t in the eal'nln9. and oapltll of .yn.It"y
A..oollte. (herelnafter referred to e. tha IcoUlteral") to
leoure the payment of I Promi..oI'Y Hot. dated ootober 25, 1913,
executed by Oblivor. to .eoult'ed Party in the plt'inaipal Imount of
T".NTY PlV. TIlOUI^HD Do11lr. ($:15,000.00) payable .. thlit'ein
plt'ovided end for performano. by obl1vor. of the aqreement. hlrein
..t forth.
OBLIGOR' WARRANT I
1. Obl1vora are the owner. of the collateral alelr of III
l1en. and .eourlty intere.t. exoept the laourity intere.t vrlnted
hereby,
2. oblivor. have the rivht to make thi. A9ree..ent, and
3. Thl collateral i. u.ed 01' bouVht for u.e primarily for
bu. in... purpo....
OBLIGOR' J\GR.I TIII\' THIYI
1. "ill PlY .aoured Party, 01' hl1 .uooe.lor. in int.re.t,
all Imount. paYlble on the promb.ory Hote a. when the ..lIe .hlll
be due and payable, whether at maturity, by aoc.leration or
-1-
.. .
oth.~wl.e, and will p.ri~K. all tar~. of .Iid pro.i..ory Hot. and
thi. or Iny oth'r ..Cludty or lOin avr..mlnt b.tw..n oblivor~ .nd
Secured Party'
:I. Hill d.f.nd the Collat.rll Ivainlt th. clalm.'lnd
d..andl of ell p.r.on.,
3. Hill not (a) per..lt any lien. or ..ourlty int.~..t. to
att.oh to any ot the collltaral which en luperior to the lhn
cr.ated hereby, (b) permit any of the Collateral to b. levied
upon undll' any 1eval procI'" (c) dilpo.. of any of the
collatei'll without the prior written oonllnt. of S.cund party, or
(d) parmit. anythin9 to b. done that may blpa1r the value of any
ot the collateral or thl ..audty Intend.d to bl afforded by thil
AIJr..m.nt, and
4. Ilxa.pt. to the ext..nt of .xi.tlnq 11.n., will obtain, on
d....nd by '.Clur.d Party, I r.l,.... of any claim to en int.re.t in
the Collateral which h lup.riur to the Uen craat.d h.nby.
UIT1~ DlrAULT, Ob1iqor. mlY retain po.....lon of the
Collatlra1 end ..ay .x.rci.., on In Ixclulive ball., all votinv,
dividend, liquidation and other r19ht. therein In any lawful
mann.r not lncon.i.t..nt with thl. ^9~..m.nt.
II TH. .V.NT or DlrAuLT by Obllqorl in the plrfor.lnc. of
any covlnen\: or a9re.mlnt h.nin, or in the dhcharge ot any
liabl1ity to ..aur.d Plrty, .eoured Party will hlv. all of the
rivhtB Ind r.m.dle. of I ..ound plrty und.r thl Uniforlll
Comm.rcial Cod. or other applicable law and all riIJht. provid.d
-2-
. '
I " ,
.
.....u.... A lI"uu."
(\. '''Q~''IYI "r ~"w
Ifl ."U MU 1l~IV.. Iun. .
""~~I..u~". I'I""IVLY""'" 1lI11,11O' i
IHPLOYHIHT AGRIINIHT
7Jt
THIS AORIIHIHT ~ade thl~:?,1' dlY of April, l~.e, by and
bltween HRHI, Ino., a Penn.y1vlnl1 oorporeUon (hlrdnatter
referred to a. "Imployer") and Robart A. Romb.rqer, II
(he.:einafter .:efernd to I. "Imployee").
1. Im>>~oymant. Imployer employ. Imploy.. and B~p10yee
.ooept. employment as tha Vioe Prl.idlnt - county Sale. of
Imployer, hi. powel'l and dutlee in that ollpaoity to be .uoh a.
may be determlned by Imployer'. board ot direotors. Durlnv the
term of thl. Avreement, Employee .hall allo serve, without
additlonll1 oompen.atlon, in .uoh othar office. of Employer to
whiah hi may be e1eoted or appointed by Imployerll board ot
direator..
2. lJ.IJIl. The term ot thia Aqnement shell beqin on
April 27, 1909, and .hall terminate on April 30, 1994.
3. compensation. AI compenlation for .ervice. rendered
under thi. Aqreement, Employer .hall pay Employe. a .alary of
$70,000 par year, paYftbla biwlakly durlnq the period of
employment, prorated for any partial employment parlod. Salary
paymantB .hall be .ubject to withholdinq IInd other applioable
taxe., provided, however, .uoh oompensation .hall be reduced,
,from Um. to til., by any amounts paid by Emp10y.r as salary,
payroll tall.. or unemployment compenlation In.urance to a .pou..,
ohild, brother, .iater, nieae or naphew of IIllp10Yle.
-1-
EXH181T s
, '
... Time Iud Effort.. IlIIploye. durinv the term at thll
Agreement may enqage in any othe~ bu.ine.. or. profl..ianal
aotivlty, provided, howav.r, thlt .uoh lutlvity may not
.ub.tlntlally int.rf.re with hi. employment pur.uant to thi.
Avr.em.nt.
5. Di.cloaur. of Information. Imployee laknow1edVI. thlt
the li.t of Imployer'. au.tomer. I. it IIIIY exl.t from tim. to
time i. I valuable, .peatal Ind unique I...t of IlIIployer'.
bu.ln.... Employe. will not, durlnv or If tel' the term of hi.
employment, di.oloae the 1i.t of Employer'. au.tom.r. or Iny plrt
thereof to any pereon, firm, oorporatlon, e..oalltion, or oth.r
entity tor any rea. on or purpo.e what.olv'r, provided, howev.r,
that they may dl.olo'l .uoh Informltion it ordered to do .0 by II
oourt, or other tribunal 01' government Ivenoy wlth juri.dlqtlon
ov.r the ,ubjeat matter end their per.on.. In the event ot a
brelah or threatened breaoh by Employee of the provi.ionl ot thl.
par.aqraph, Employer. .ha11 bl entitled to an injunction
re.trainin'iJ Employee from dila10.ing, In who11 or In pert, the
li.t of Employer'. aUltomer., or from rlnd.rinq any ..rvice. to
any per.on, ti~m, oorporation, alloo1ation, or other. entity to
whom .uah 1i.t, in whole or in part, hel be.n di.alo..d or 1.
threatened to be di.olo.ed. Hothinq herein .ha11 be aonltrued al
prohibiting
.2-
, ,
, ,
ImploYlr tro. pur.uinV Iny otber rl.ediel Ivaillble to Employer
tor .uch b~e.ah ot threatened b~each, includinv the reaovery ot
dema'iJe. trom Imployee.
6. .xp.n..~. Employee IDlY incur ral.on.bl. expen.e. for
promotin'iJ Implover'. bUline.., inaludinv exp.n.a. for
entertlinment, trlvel, Ind .imillr item.. Imployer will
reimbur.e Imp10yee for all .uah expen.e. In acoordlna. with the
rule. Ind re9ulation. thllt it may 1I.u. from tlma to tim..
7. ImD1eyae B.neflt.. Thl. Agr.emant i. not lntended to be
and .hall not be deemed to be in lieu ot Iny right., bene tit. and
privillge. to which Employe. may be entitled .s an employeo of
Bmp10yer under any retirement, pension, protit-Iharinq,
in.urance, hospital or other plan which mlY now bl in effeot or
whioh mlY hereatter be Idapted, it being und.rstood that Employee
Ihall ~ave .ame righta Ind prlvilege. to partlolpate In .uoh
plans and bene Uta a. any other employ.e during hi. period of
employmant.
8. T.rminat.ion Df Aar..m.nt.
(a) It Employee willfUlly breach.. or hllbitua11y
neg1.otl the dutiee which he i. required to perform under the
term. of this Agre.ment, Employer may at It. option, by majority
vote of it. baird at direotor., tlrminata thi. Agreement by
givin'iJ 30 dIY.' written notioe of termlnlltlon to ImploYI. without
p~ejudice to any other remedy to whiah Employer may be entitlld
-3-
. '
I ., ,
.lth.r It llW, in equity, 01' under thi. AVrl...nt.
(b) It Imployel b.ooml. permanently di.lbled b.alu.e of
lickn'll, phyaiaal or mental di.ability, or any other rla.on, IQ
that it rel.onably appelI" that he will b. unable to aomplete hi.
duti.. under thi. Agreemant, Employer mlY It it. option, by
mljority vote of itl baird of dir.otor., t.rminate thi. Aqr..ment
by vivinlj/ gO day.' writtan notioe of termination to Imploy.e. A
determlnltion I' to whether or not Employea i. permanently
di..blad .ha1l be made at the end of .lx (~) month. after the
ooourrenc. of auoh cl1.lIbUity upon the determination of two
doaton, on. oho.en by Imployer and the other aho.en by the
dl.abled Employee or hil l.val r.pre.entatlv.. If the two
dootors .0 appointed taU to 19ree, they Ihal1 appoint a third
doator Ilti.flotory to both dootor., whoa a d.terminltlon e. to
whethlr 01' not Imploye. 1. permlnently dillbled ahlll be finl1.
It Employ.e i. determined to b. permanently di.abled and
lub.equ.ntly terminated, Emp1oy.r will pay the dl.ab1ed Imployee
on. (1) year" .a1ary for a period of one (1) Y.lr and ona-half
(1/~) yair'. .a1ary for a period of one-hill! (1/2) year.
g. ne.trlativI Covlnant. For a period of tlve (8) years
Ift.r thl termination or .xpiration ot thl. Agr.ement, Ilmployee
will not within the greate.t of the aurrently exiltinv mark.tJng
11'.. of Imployer in the Commonwealth ot Pann8y1vlni. or any
future ~ark.ting ar.a of Employer blgun during Employee'.
-4-
.
);,
. '
. ,I ,
..p10ym.nt und.r the t.r.1 of thi. AVr....nt 01' a rldiu. of aDO
.Ue. of lIard.burv, P.nn.ylvania, direotly 01' indirectly, own,
..nave, op.rlt., control, b. .mploy.d by, plrtloiplt. in, 01' b.
oonn.oted in any .Inn.r with the owner.hip, .anaVe.ent,
operation, or aontro1 ot any bu.ine.. relat.d to miarotilm or
miarotilm proae..in'iJ or oth.rwi.e .imilar to the type of bu.ine..
conduot.d by Emp10Ylr at the time of the termination or
.xpiraticn of thb Agreement. In the IIvent of Employee" aotual
or threatened braaoh of the provieion. of thi. paragraph,
Imployer .hall be antitlad to an injunation r..trllininq Bmployee
th.r.trom. Nothlng h.rein .hall b. oon.tru~d e. prohibltinv
Imp10Ylr fro. purluinq any other available r.medla. for euch
breaoh or thr.atened brellch, including the r.covery of damage.
from IlmploYlr.
10. JfAi3ulr of Breach. 'l'he walv.r by Employer of a breaoh
at any provi.ion of thil Agr.ement by Employ.e eha11 not operata
or b. con.tru.d I' a waiver of any .ub..quent brellch by Employee.
No wllvar .hall be va1ld unl... In writing Ind .19ned by an
luthorllld offioer ot Imployer and approvad by I two-third.
majority of Imp10yarl. board of dir.atorl.
11. A..ian.ant. Imploy.e aoknowl.dge. thlt the ..rvioe. to
b. r.ndered by him are unlqu. Ind p.r.onll. Aocordlnqly,
Imp10yee may not al.lgn any of hi. rightl or delegate any of hil
duti.1 or obligations under thl. Agreement. The right. and
-11-
. ,
I " .
., .... ...--......-..-.---.---...-
ob1ivation. ot Imploy.r und'~ thi. Agr....nt .hall inure to the
ben.tit. ot end .hal1 b. bindin'iJ upon the lucce.lor. and a..i9n.
of Employer.
la. .ntlr. Aar..~.n~. Thi. A9r....nt oontlln. thl. entlre
under.tlnding of the plrtl... It .IY b. ohlnved only by an
I
ag~.'ment in writin9 .i9n.d by the plrty Igain.t whom .ntorglm.nt
of any waiver, ghan9., .odifiaation, .xtlnllon, or di.gharV. i.
louvht to be aharved.
IN WITNIS8 WHERIOr, the parti.. have lit th.ir hand. and
.Ial. the day and y.ar fir.t written abov..
EHPLOYERI
ATTEST I
HRHI,
~'k '~~t2/t
l~J.~~: , '.
eare y
----..
BYI
P
-,
~ II'"
,.
.....
ROBIR'l' A, ROMBERGER, I I,
J>laintlff
v,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
HO, 842 CIVIL 1994
IMR LIMITIllD,
Defendant
PLAIITI"'. 11..01.. TO 'J~ MATTJ~
AID AII.~R TO COUIIT....CLAIM WIT. ..W MA!I!TlR
Plaintiff, Robert A, Romberger, II, by and through hiB
attorneys, Mllrtllolf & Bratton, responds to ths New Matter and
Counterc him of Defendant, making reference to the paragraph
numbers contained therein, as f.ollows ~
7, Admitted in part and denied in part, It is admitted that
the Plaintiff and individuals mentioned entered into a certain
Agreement on October 25, 1993 and that Exhibit "A" to the
Defendant' 8 pleading is a t.rue and correct copy of the Agreement,
It is denied, however, that only the individuals mentioned entered
.\.nto the Agreement, To the contrary, Dafendant IMR Limited cauud
the Agreoment to be executed by its Preeident, Robert D.
Chamberlain, Jr.
To the extent the remaining allegationl of
Paragraph " of Defendant's New Matter constitute characterizations
or interpretations of the Agreement, all such allegations are
denied, PlIIintiff submits that the Agreemant speaks for nulf,
8, The allegations of paragreph 8 of Defendant's New Matter
state conclusions of law to which no response is required, To the
extent a response is required, however, plaintiff expressly deni..
that the Note attaohed to the Plaintiff' s complaint and drafted by
Defendant inoorporates in any fashion the terms and oonditions of
I
the "Buyout Agreement".
To the oontrary, the Note statu an
unconditional obligation of the Defendant to pay in acoordance with
its terms.
9. Beoause Plaintiff believes that the allegations of
Paraqraph 9 of Defendant' III New Matter oonstitutes an effort by
Defendant to oharaoterizlI and interpret a writinq, such allegations
are denied. To the oontrary, Plaintiff submits that the dooument
speaks for itself.
10,
Denied.
Plaintiff hc.s not engaged in sales calls or
lol1citations as a representative of a oompetitor of Defendant.
To the contrary, many of the sales oalls reoited in Defendant. s New
Mattsr were made in oonjunption with Plaintiff's oonlulting
servioes to the Defendant and were undertaken on behalf of and with
prior or contemporaneous knowledge of Defendant, its shareholders,
officers, direotors and/or employees, By way of further denial,
Plaintiff denies having made any calls on any personnel in the
Office of the Racorder of D.aeds of Bradford County,
11. Denied. Plaintiff is undllr no oonstraints by any terml
of any agreement from engaginq in any gainful employment exoept aft
expreuly eet forth in the "Buyout Agreement".
Plaintiff' .
activities have not been, nor were they intendad to be, to the
detriment of Defendant,
2
12, Denied. The alleqlltions of Paragraph 12 of D.flndant'l
New Matter stat. conclusion" of law to which no r'lpon.e 1&
required. To the .xt.nt a response is required, D.fendant d.ni'l
that any slll.s calls or solicitations undertaken by the Plaintlff
con.titute any form of breach of hie obl'iqations under the "Buyout
Aquement" .
WHERBFORE, Plaintiff demands judqrnent J,n hie favor and agalnlt
the Defendant as originally demanded in Plaintiff's Complaint.
Alawn TO COUIITIII.CLAIM J:
13. The allegations and answers of Parllqraph 7 through 12
hereof are hereby incorporated herein by reference.
14. Denied. Plaintiff denies that he has breached any term
of any agreement with Defendant, To the contrllry, it is Defendant
which hal breached its obliqation under the terms of the Note. It
1& further denied that any action by the Plaintiff has cauled
Defendant to suffer any dllmages whatsoever.
After reasonable
investigation, Plaintiff is without sufficient information to form
a belief as to the allegations concerning dllmages in excesl of
$10,000,00, and such alleqation is therefore denied.
Meanl of
proof of luch allegation is demanded at the trial of this caule if
relllvant.
l!L The allegations of pareqraph 15 of Defendant's New Matter
Itate conclusions of law to which no response is required. To the
extent a rlllpon.e i8 required, Plaintiff denie. that Dafendant hal
I
3
1\
, I
,
any right, authority or legal blllh under the "Buyout Aguement"
I
to X'e.oind .uch Agreement, the tintJ notice of luoh reehion being
contained in Defendant '. Counterclaim.
16. The allegations of Paragraph 16 of Defendant'.
I
Counterclaim .tate conclusions of law or otller allegation. to which
no response 11 required. To the extent a respon.e ia required,
Plaintiff denial that such IIllftgation. stated in a pleadlng
conetitute an effective or legally valid ba.i. for reei.ion, and,
further, ~laintiff averl that simple tendering of Iharel of Itock
without rein.tatement of Plaintiff to his original salary and other
emoluments auociated with his share ownership and IMR Limited
con.titute. an ineffective effort at reci.ion.
WHIlRlllFORIl, Plaintiff demands judgment in his favor and aga1nlt
the Defendant on Defendant' 8 Counterclaim I and restatel the
request for relief as c<)Iltained in Plaintiff' I complaint.
All,,,,, TO COU.TIItCLIUN 11
17. Admitted without admitting the relevance or the
effectiveness of such agreemen~,
18. To the extent Paragraph 18 of Defendant's CounterCllaim
conetitute. an attempt or effort to characterize Ilnd interpret a
written agreement, all such allegations of paragraph 18 are dlnied.
By way of denial, Plaintiff eubmite that the agreement, if
relevant, speakR for itself,
4
19. Denied. Plaintiff has never engaged in any activitl..
a. a representative of a competitor of Defendant. By way of
further anewer, the allewer contained in par.graph 10 hereof 11
h.reby inoorporated by reference.
20. The anlwer contained in Paragraph 11 hereof 11 hereby
incorporated herein by reference.
21. The an.wer to Paragraph 14 hareof il hereby incor.porated
herein by reference,
22. The allegations of Paragraph 22 state conclusionl of law
to which no response i. required, To the extent a relponle il
requirad, Plaintiff denies that he has breached any agreement wlth
D.fendant or that Defendant has suffered or will suffer damages for
which no adequate remedy at law exists,
WHIRICPORI&, Plaintiff demands judgment in hie favor and againlt
D.fendant el to Counterclaim II and requests the relief requelted
in Plaintiff's Complaint.
..If MATT. I
23. The ICmployment Aqreemel'lt attached to Defendant' I
Counterclaim III Exhibit "B" was expreuly or impliedly t:erminatad
and rescinded by the "Buyout Agreement",
24. The Dafendant's Counterclaims fail to state a caule of
actlon upon which rali.f can be granted.
8
25. Dehndant hu been guilt.y of laches end 11 not, therefore
or otherwise, entitled to equitable remedies, including but not
nece..arily limited to recision or injunctive relief.
26. Under the terms, of the "Buyout Agreement", failure of
Dehndllnt to pay the sum of $877.52 monthly conunlncing October 25,
1993 IInd on the 25th day of each month thereafter for sixty (60)
conucutive monthl, which default oontinues for II period of thirty
(30) daye, resultl in the terminlltion of the plaintiff I. obligation
to provide consulting servioes and results in the extinguishment
of any covenant not to compete as contained in the "Buyout
Agreement" .
27. Defendant hilS failed and refused to make paymentl due
under the "Buyout Agreement" for consulting service. and for the
covenant not to compete since November of 1993.
28. Any obligation of Plaintiff not to compete or to provide
conlu1ting lervicel il therefore extinguished.
29. paragraph 14 of the "Buyout Agreement" expreBIly providel
that it lupeuedes all prior agreements, repreBentat.ionl or
undertaking. of the partiaB.
30. The Employment Agreement attached to Defendant I B
Counterolaim as lI:xhibit "B" is, thuB, void and of no further force
and effect.
31. All doouments upon which Plaintiff I B cause of action ie
baled were drafted by or on behalf of Defendant.
6
v.
IN 'l'll~ COllR'I' Oli' COMMON PLIAS
CUMbIllIH,ANl> COlJH'I'Y I pb:NNSnNANIA
CIVI I, AC'I'ION - {,AW
NO. 842 CIVIl, 1994
aOBIRT A. ROMBIIlRGIR, II,
flaintiff
INR LIMITED,
Defendant
YDIllWlO.II
I vel'lfy that the atlllemantll made In the IIttacllltd Jilleading
are true IInd oorrect/ pllt'tially upon put'llont.ll knowledge and
partially upon my beliefl to the extent language in the attaohed
pleading is that of my attorneys, I have rblied upon my attorneys
in making this Verification. I undet'atllnd that faIn statements
hlrein are made subject to the (lenal t lell of 18 fll. C, s. Seotion
4904 re rating to unllworn falsi fiCBti[ to lIuthor i tie .
_.m__.:JA.lkL
Robert A. Romberg~r, I
Date__ '0S;)1 t/ --
r.--.
/4.---
, I
;,
;IJ
:1
-;1,
I' ,
I '
Datenclant to Plaintitf,
as. The avar~ent of Paragraph 28 of Plaintlff'l New Matter
aon.tituteQ a conolu.lon of law as to whioh no ~e.pon.ive
pleading il required.
29. Denlld. The averment. of Paragraph 29 of Plaintitf'.
New MattiI' oonstitute an attempt by Plaintitf to characterize Ind
interpret a w~ltinq and are, therefore, denied.
30. The averment of Parllgrllph 30 ot Plaintlft'l New Mlltt.r
aon.titutal a oonolusion of law as to which no reBponslve
pl.acling 1. requi~ed,
31. The averments of Paragraph 31 of Plaintiff's New Matter
are admittad in part and denied in part, It is admitted that
ooun..l tor Defendant IMR Limited was the primary drafter of the
"Buyout ^greement" and exhibits thereto. By way of further
relponea, It 1. IIverred that the subject documonts were prepared
with tha ooneultation and advice of counsel for Plaintiff. upon
Inve.tlgation, Defendant is without information sUfficient to
for~ a bellet 8S to whether Plaintiff's cause of action is based
upon any doouments other than the aforementioned. The averment
to the affeot that any such other documents were prepared by or
on b.half of Defendant Is, therefore, denied.
3a. Admitted,
33. The averments of Paragrllph 33 of Pl.aintiff/s New Matter
oon.titute conclusions of lllw as to w~ich no responsive plelldlnq
11 ~.quired.
2
'I,
ROBIRT A. ROMBIlRGIR, II,
Plaintiff
v.
IN THE COURT OF COMMON PLIAS
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
NO. 042 CIVIL 1994
IMR LIMITED,
Defendant
PRAECIPE
TO THE PROTHONOTARY I
Please mark the above-captioned action, includinq all
counter~claims, cross-claims, setoffs and the like, settled,
discontinued and ended without prejudice to Plaintiff's actionl in
the future based on defaulto of Defendant occurrinq after
January 1, 1994.
Respectfully SUbmitted,
D.te /1 Jtf~ f?
--
By
Bruce F. Bra ton, Eequ ra
Pa. Attorney 1.0. No, 23949
2515 North Front Street
P. 0, Box 12106
Harrisburg, PA 17108-2106
(717) 236-4241
Attorneys for Plaintiff
HEDGIlR & HEDGIER
Date
BY_~-/' ~
aym nd C. He er, Jr"
1800 Linqlestown Road
Harrisburq, PA 17110
(717) 230-1800
-
Illquire
Attorneys for Defendant