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litigation and successor corporation to the right to u.e the
corporate name, Kellogg Environmental Services, Inc..
4. Detendant, Edward V. Kellogg, is and adult individual
whose last known address is 816 Anthony Drivo, Mechanicsburg,
Cumberland County, Pennsylvania 17055.
5. Defendant, Mary E.P. Kellogg, is and adult individual
who.e last known address is 816 Anthony od ve, Mechanicsburg,
Cumberland County, Pennsylvania 17055.
6. Defendant, Kellogg Environmental Services, Inc.
(hereinafter referred to as KES), is a Pennsylvania Business
Corporation, with its last known registered office located at 4705
East Trindle Road, Mechanicsburg, Cumberland County, pennsylvania
17055.
7. Defendant, Johnston Spectra Laboratories, Inc.
(hereinafter roferred to as "Johnston"), is a Pennsylvania Business
Corporation whose laRt known business address is 4705 East Trindle
Road, Mechanicsburg, Cumberland County, Pennsylvania.
8. Defendant, Johnston Laboratories, Inc., (hereinafter
referred to as "Johnston Labs") is a Pennsylvania Business
Corporation whose last known registered address in Pennsylvania ia
4705 East Trindle Road, Mechanicsburg, Cumberland County,
Pennsylvania.
2
9. Plaintiff. believe, and therefore aver, that Defendants
Johnston and Johnston Labs are solely or partially owned by
Defendants Kellogg, either individually or jointly.
10. Alternatively, plaintiffS believe and therefore aver that
Defendant, Edward V. Kellogg, is an employee, officer, director,
agent, consultant, shareholder, manager or in control of the
operations of Defendants, Johnston and Johnston Labs.
11. On or about November 8, 1991, Plaintiff Williams, and
Defendants Kellogg and Defendant KES entered into a written
Agreement entitled Sale of Assets, Non-Competition and Independent
Contractor Agreement (hereinafter referred to as "Sale of Assets
Agreement", a copy of which is attached hereto and incorporated by
reference thereto and marked as Exhibit "A").
12. Under the terms of the Sale of Assets Agreement,
Plaintiff Williams was to purchase and Defendants Kellogg were to
sell, inter AliA, allot the assets, tangible and intangible, used
exclusively by the business owned by Defendants Kellogg and known
as Kellogg Environmental Services, Inc..
13. The sale and purchase of assets included all such assets
related to the entire business activity of KES as to its
residential real estate water sample pick-up and water and airborne
radon testing including but not limited to radon testing, water and
septic system certifications, house inspections, environmental
audits, termite inspections, contracting including painting,
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maintenance, concrete slabs and electrical, sump pit/sump pump
installation and repair, asbestos removal, hazardous waste
remediation and tank supports services which Defendants operated as
a division of Kellogg Environmental Services, Inc. (The assets and
business services set forth herein are collectively referred to as
"Radon Testing and Radon Reduction" in paragraph 1.1 of the Sale of
Assets Agreement and are hereinafter referred to as "radon testing
and radon reduction").
14. In addition to the assets set forth in Paragraph 12
herein, Plaintiff Williams purchased and Defendants Kellogg and KES
sold, all their rights and interest in the name "Kellogg
Environmental Services, Inc." and any derivation thereof pursuant
to paragraph 1.1.8 of the Sale of Assets Agreement.
15. At the time the parties entered into the Sale of Assets
Agreement, Defendant Edward V. Kellogg was the holder of a
Commonwealth of Pennsylvania Radon Testing and Remediation License,
number 96.
16. On or about January 1, 1992, Plaintiff, Tony Williams,
Inc., and Defendant, Edward V. Kellogg, entered into a written
Independent Contractor Agreement (hereinafter referred to as
"Consulting Agreement"). A copy of the "Consulting Agreement" is
attached hereto and incorporated hecein by reference and marked as
Exhibit "B".
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17. On or about January 1, 1992, in order to secure the
payment of the balance of the purchase price owed to Defendants
Kellogg and KES under the terms of the Sale of Assets Agreement and
Consulting Agreement, Plaintiff Williams executed a Promissory Note
(hereinafter "Note") in the amount of $200,000.00. (A copy of the
Note is attached hereto and marked as Exhibit "C").
18. On or about April 2, 1993, Plaintiff Williams and
Defendants Kellogg and KES executed an Amendment to the Sale of
Assets Agreement and the Note adjusting the payment terms and
reducing the total amount of the purchase price bu~ preserving all
other terms and conditions of the Sale of Assets Agreement and the
Note.
19. Pursuant to paragraph 4.1.16 of the Sale of Assets
Agreement, Defendants Kellogg and KES, jointly and severally, and
as the shareholders and owners of all the issued and outstanding
sharelil of Defendant, Kellogg Environmental ServicEs, Inc., agreed
not to compete, eith~r directly or indirectly, with Plaintiffs in
any business involving radon testing and radon reduction, as
defined in the Agreements, in the counties of Dauphin, Cumberland,
Perry, Adams, Lancaster and York, Pennsylvania (hereinafter
referred to as the "Restricted Territories").
20.l'he Sale of Assets Agreement, Consulting Agreement,
Promissory Note and the Amendment to Sale of Assets Agreement are
hereinafter COllectively referred to as the "Agreements".
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21. Pursuant to paragraph 3.1 of the Conlilulting Agreement,
Edward V. Kellogg, individually, agreed not to engage in any radon
testing and/or radon reduction activities as defined in the
Agreements under Commonwealth License No. 96 during the time of the
Agreement 1n the restricted territories.
22. Pursuant to paragraph 3.2 of the Consulting Agreement,
Edward V. Kellogg, individually, agreed not to compete, either
directly or indirectly, or affiliate in any manner with a business
competing with Plaintiffs for a period of thirty-six (36) months
after termination of the agreement, for whatever reason, in the
restricted territories.
23. Pursuant to paragraph 3.4 of the Consulting Agreement,
the value of the covenant not to comp~te was set by agreement of
the parties at $129,000.00.
24. Pursuant to the terms of the Agreements and Promissory
Note, as amended, Plaintiffs have made the agreed monthly payments.
25. Pursuant to the terms of the Sale of Assets Agreement,
Promissory Note and Consulting Agreements, as amended, the
Plaintiffs have fulfilled all their pre-conditions and performed
all the obligations.
26. On or about July 19, 1993, Plaintiffs believe, and
therefore aver, that Defendant, Edward V. Kellogg, permitted the
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radon te.ting and mitigation certification, No. 96, to expire. (A
copy of the Notification from DER is attached hereto and
incorporated by reference thereto and marked as Exhibit "D").
27. Plaintiffs believe, and therefore aver, that contrary to
their covenants not to compete, Defendants, Kellogg, either jointly
or individually, have competed or associat.ed themse 1 ves, either
jointly or individually, with businesses competing with Plaintiffs
in the restricted territories.
28. Plaintiffs believe, and therefore aver, that Defendants,
Kellogg, have through their ownership of the shares of stock of
Johnston Spectra Labs and/or Johnston Labs or through their control
over the management direction and operation of Johnston Spectra
Labs and/or Johnston Labs have directly and indirectly competed
with Plaintiffs in the restricted territories by conducting
relilidential water sampling pick-up and testing which constitute
radon testing and reduction services under the terms of the
understandings amongst the parties.
29. Contrary to the terms of the written agreements, the
Defendants, Kellogg, either jointly or individually, directly or
indirectly, have further competed with Plaintiffs as follows:
(a) On or about June 11, 1993, Edward V. Kellogg
submitted a bid for site remediation work as
project manager for Gargasz Excavation, Inc..
(A copy of the bid is attached hereto llnd
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incorporated by reference and marked as
Exhibit "E");
(b) On or about July 27, 1993, Defendant, Edward
V. Kellogg, either individually or under the
guise of Johnston Spectra Labs and/or Johnston
Labs, which he owns, directs, controls or is
affiliated with, performed radon testing and
remediation work at Gettysburg college, Adams
County, Pennsylvania. (A copy of the Closure
Report is attached hereto and incorpol'ated
herein by reference and marked as Exhibit
"F"); and,
(c) On or about March 10, 1994, Defendant, Edward
V. Kellogg, either individually or under the
guise of Johnston Spectra Labs and/or Johnston
Labs, performed water sampling pick'-up and
testing for property located at 1.2 Dewalt
Drive, Mechanicsburg, Cumberland county,
Pennsylvania. (A copy of the test report is
attached hereto and incorporated herein by
reference thereto and marked as Exhibit "G") .
30. Contrary to the terms of the written agreement and the
rights transferred to Plaintiffs to all right and interest in the
name Kellogg Environmental Services, Inc., Plaintiffs believe, and
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therefore aver, that the Defendants did solicit and continue to
solicit business and perform radon testing and reduction services
using the name "Kellogg Environmental Services, Inc.".
31. Contrary to the terms of the written agreements,
Plaintiffs believe, and therefore aver, that Defendants either
solicited, bid for contracts and/or were awarded contracts using
the name Kellogg Environmental Services, Inc. as follows:
(a) Downingtown Area Regional Authority Project
for removal and replacement of storage tank
system on or about December 16, 1993. (A copy
of subcontractor proposal dated December 16,
1993, is attached hereto and incorporated
herein by reference and marked as Exhibit
"H"); and,
(b) On or about January 12, 1994, bid and received
the contract for the preparation of spill
Prevention Discharge and Elimination systems
Permit for the Greater Buffalo International
Airport.
32. Under the terms of the written agreements, Plaintiffs are
entitled to preliminary and permanent injunctive relief whether or
not Plaintiffs prove actual damages.
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33. Undet' the terms of the written agreements, Plaintiffs are
entitled to indemnification from Defendants for all costs and
expenses including legal fees.
COUNT I. BREACH or CONTRACT
34. Plaintiffs incorporate herein by reference thereto the
averments or. their Complaint as set forth in paragraphs 1 through
33.
35. From January, 1993 through and including January, 1994,
Plaintiff made the required monthly payments to Defendants in the
amount of $3,500.00.
36. Contrary to their obligations, Defendants competed both
directly and indirectly within the restricted territories.
37. Contrary to their obligations and the terms of the Sale
of Assets Agreement and Consulting Agreement, Defendant, Edward V.
Kellogg, permitted Commonwealth of Pennsylvania Radon Testing and
Remediation License number 96 to expire and become unavailable to
Plaintiffs as of June 19, 1993.
38. Contrary to Plaintiffs' right and intereut in the use of
the name Kellogg Environmental Services, Inc., Defendants have
solicited, bid, sought bids and/or performed radon testing and
reduction services within and without the state of. Pennsylvania
under the trade name "Kellogg Environmental Services, Inc.".
39. Despite demand, Plaintiffs believe and therefore aver
that Defendants, either individually or jointly, ~irectly or
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indirectly, continue to compete within the restricted territories
or continue to solicit, bid, and perform radon testing and
reduction services, as defined in the Agreements, within the
restricted territories under the guise of corporate entities eit,her
entirely or partially owned by Defendants Kellogg contrary to their
agreements not to compete and contrary to plaintiffs' business
rights and interests.
40. Under the terms of the written agreements, plaintiffs'
obligation to pay the monthly sums terminated upon the Defendant's
permitting License number 96 to expire.
41. Under the terms of the written agreements, the value of
the non-compete clauses in the Consulting Agreement was agreed to
be $129,000.00.
42. The Defendants have receiveQ payments from June 1, 1993
to January 31, 1994 amounting to $24,500.00 to which they were not
entitled.
43. By reason of the breach of Defendants, PlaintiffS have
suffered damages and will continue to suffer damages in the nature
of 10s8 of revenues, loss of market position and Business Trade
Name confusion.
WHI.I'Oal, Plaintiffs request Judgment against Defendant.,
Edward V. Kellogg, Mary E.P. Kellogg, Kellogg Environmental
Services, Inc., Johnston Spectra Labs., Inc. and Johnston
Laboratori.., Inc., jointly and severally as follow.:
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(a) Judgment in the amount of $153,500.00 plus
interest, costs of suit and reasonable
attorney's fees;
(b) Preliminary and permanent injunctive relief
enjoining Defendants' continued violation of
the Non-Competition clauses contained in the
Sale of Assets Agreement and the Consulting
Agreement;
(0) Preliminary and permanent injunctive relief
enjoining Defendants from associating with any
business which competes with Plaintiffs in the
restricted territories;
(d) Preliminary and permanent injunctive relief
enjoining Johnston Spectra Labs, Inc. and/or
Johnston Labs, Inc. by or under the ownership,
control, direction or management of
Defendants, F.dward V. Kellogg and/or Mary E.P.
Kellogg, from performing, soliciting or
subcontracting pick-up of water testing
samples and airborne and water-borne radon
test samples and radon testing and remediation
work in the restricted territories;
(e) Preliminary and permanent injunctive relief
enjoining Defendants, Edward V. Kellogg and/or
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Mary E.P. Kellogg, and any person under their
direction or control from soliciting, bidding,
or contracting or in any other form or way of
using, trading or infringing upon the name
"Kellogg Environmental Services, Inc." or any
derivation thereof;
(f) Enter an award for compensatory and punitive
damages in excess of $20,000.00;
(g) Order an accounting of all profits received by
Defendants in violation if their written
agreements; and,
(h) Such other relief as the Court deems
appropriate.
COUNT II. UN~AIR COMPETITION/CORPORATE NAME IN~RINGEMENT
44. The averments contained in paragraphs 1 through 43 are
incorporated herein by reference thereto.
45. The Defendants have continued to transact business,
borrow or collateralize loans and enter into business transactions
using the trade name "Kellogg Environmental services, Inc.".
46. Said use by Defendants of the trade name "I(ellogg
Environmental Services, Inc", has caused confusion with Plaintiff's
Worker'. Compensation Insurance carriers and Rating Bureau.
47. Said use and continued use of the trade name "I(ellogg
Environmental Services, Inc." infringes upon the rights and is
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causing and is likely to continue to cause confusion, mistake
and/or deception as to the source or origin of the services offered
to be provided amongst the public.
48. Said continued use by Defendants of the corporate name
"Kellogg Environmental Services, Inc." is likely to cause confusion
in Plaintiff's competitive area and amongst Plaintiff's creditors
and in other business relationships.
49. Oespite demand, Defendants have willfully, repeatedly and
without justification continued to solicit, contract and transact
bUliliness using the trade name of Plaintiff for the sole purpose of
causing injury to Plaintiff's business and goodwill.
50. As a direct and proximate result of the aforesaid actions
of the Defendants, Plaintiffs have suffered and will continue to
suffer immediate and irreparable harm.
51. Plaintiffs are entitled to injunctive relief under
Pennsylvania Consumer Law and Pennsylvania Associates Code, 15
Pa.C.S. 51303(e).
WHIRI'O.I, Plaintiffs demand Judgment and relief against
Defendants, Edward V. Kellogg, Mary E.P. Kellogg, and Kellogg
Environmental Service., Inc., Johnston Spectra Labs, Inc. and
Johnston Laboratories, Inc. as follows:
(a) Preliminary and permanent injunctive relief,
enjoining Defendants from using or transacting
any business in the name of "KellogCJ
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BAll'. C1I' A'JSRlB, H:Jf-<XICImTl'RII
HI) ~ (Qf.11UICltR "'~~-H.1'
'DDS ~.nuIl' is made as of 1\10<.>.'...11."", <e , 1991, between
r:ellOlJJ El1Yiu........1lal services, Ire. of 4705 Trimle Road, Med1anicsWrq,
PA ("RellC9:J" or "Seller") am J8IIII!S l\nt:hmy Willi8lll!l, an individual of
Miller Gap Read, Med1anil.1Sburg, PA ("Wi11iIl/l8" or "B1yer") and &Jwlml r.
r.eJ.IOlJJ and IIlry B.P. r.ellOlJJ of 816 Anthony Drive, Mechanics!:Jurg, PA
17055, sanetilN!s referred to lID "Kellogg" or "Seller", jointly and
severally and as shareholders, officers and Oira."1:ors of Kellogg
Dlvironnental Services, Inc.
If.l'INFSSgDl: 'Ihe parties hereto, intenlirq to be legally bound
hereby agree to the following terns and conditions:
l\Rl'IClF. I
~rn 10 BE roocJl/\SID AND ..:IRJlNSFm LlM.1'l1a'IOOS
1.1. t-.....- to be ~. Subject to the tenns and comitions of this
Jlql-eernent, Rellogg will cx:trr>Iey, transfer, assign, sell and deliver to
WilliM19 at Closing, by bill of sale, errlorserrent, assigrunent, or other
awr:q>riate instruments, free and clear of all liens, claims or
encunt>rances, and Willians will p..tI'chase all of Kellogg'S right, title and
interest in the following tangible am intangible assets used exclusively
in connection with the Wsiness known as Kellogg Envirot1JTleJ1tal services,
Inc., Medlanicstmg, Pennsylvania. Ilotwithstanding anything to the
contrary herein oontained in this Jlqreernent, it is understood and agreed
between the parties that all tangible and intangible assets hereiMfter
described to be p..trdlased by flIyer fran Seller and any and all dlIties and
obligations to be undertaken by 9.Jyer as part of the transactions
oontenplated by the parties hereto relate solely to the radon testing and
radon reduction, water and ceptic =l'stern C':'rtifications, ham inspections,
environnental audit, termite inspections, CXJntractirq, including painting,
maintenance, concrete slabs and electrical, SUJTV"pit/SIJll1l punp
installation and repair, asbestos removal, hazardous waste remediation
and tank SUJllOrt services (hereinafter "radon testing and radon
reduction") business of seller which currently qlerates as a division of
Kellogg Environmental ServiCE'S, Inc.
1.1.1 Machinery and equipnent as follCMS:
1. 1985 Ford Van (85,000 milr>s)
2. Kango IIanlner Drill (1990)
3. Black" Decker Mildlo Ilan1ner Dr! 11 500
4. 1/2 inch IIole Shooters
Drills 150 (new) (3)
5. Misoelll\l'lleaJS Bite am Attad1JTlef1ts
6 . lac\JerII
7. Desks and OIa!rs
$ 3,000.00
800.00
300.00
200.00
100.00
100.00
500.00
8. Shaw Booth 200.00
9. SUbne.tgible Water 1'Ul1p with lIose 200.00
10. 1I0le IIoq Mllwaky 250.00
11. Flashlights (3); 03mera; am Electrical Checkers (2) 50.00
12. Tools - Saws; Knives; Drql Lights; am Extension Cbrds 200.00
13. R10nes (2) - lInswerirq Machine 100.00
14. Tnlininq Mat.eriaI 100.00
15. 1985 Chevrolet Wagon 500.00
16. 1980 Pontiac 800.00
17. Sales Materials - Fee Sdledules 100.00
18. septic System; PrdJes; Snake Wrelld1es; Dyes; etc. 50.00
19. Organic Vapor llnalyzer 3.000.00
Total $10,550.00
1.1.2 Inventory oonsistirg of: fans, fittings, pipes, pipe fittirgs,
radon test kits, an:! water test kits, as set forth on a sdledule to be
initialed by Seller an:! 8.Jyer at closing.
1.1.3 All marketirg am distrihltion information, including but not
limited to custaner lists, distrib.ttor lists, major verdor lists, product.
literature ard SUWller cxmtacts.
1.1.4 All maintenance SlJR:llif'_'l, spare parts am otller such miscellaneous
i tE!llS of personal pIqJerty.
1.1.5 All p.irdlase orders, rights to ~se obligations but not any
outstanduY} obligations thereof.
1.1. 6 All insurances, telerhone IlUIt'bers and the 1 ike.
1.1.7 All trade names; logos; product names; trademarks; tradE!l1'ark
awlications; am patentd or patent awlications, foreign or U.S.
1.1.8 All rights and interest in the name "Kellogg F.nvironmentaI
Services" an:I any df'xivation thf'.reof.
1.1.9 All operatirg roslness data, client lists, records and infonration
and realtor contact lists relating to activities noted in Paragraph 1.1
above.
1.1.10 All licensirg agreeroonts, including rot not limited to, radon
testing an;) radon reduction, whether as lioensee or licensor, am whether
in the name of the Seller or any enployee of Seller who, as part of this
Ilqledlwmt receives a consulting or independent oontractor a':lL.....nent.
1.2 ,.tAhllit;y Um1tatlm. Nothirg herein oontained will operate as an
aSSl.lJll't'.ion by William!! of any liabilities of Kellogg known or unknown
except tIlOElG liabilities and obligations expressly assumed by William
urder the terms of this Ilqreernent. Provided, hOW\!!ver, that recalls by
custaners ("call-backs") in the amount of $300.00 or less per call-backs,
with a 1lBl(11ll.1I11 amount of all call-backs not to exceed $3,000.00, wlll be
asSUllEd by William. lIny balances or annmts for call-backs in excess of
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t',le above lllTnl/lts will be the financinl resp:lllDibilit.y of Kellogg, who
will IMJce payment to Wil1inllEl witllln thirty (30) d."lys of receIpt of a
written notice frail williMl!l.
1.3 hmIllH-arI Ilctivities of !'lAHer. With regard to envirorunental audits,
hazarooos waste remediation am tank B\JRXlrt services, after Deoember 31,
1992, Kellogg may erJ;fclg9 in these activities only to the extent that 9.Jyer
is not actively involved therein. lIctive involvement is defined to mean
that for calen:lar yea>: begiMing January 1, 1992 and en:Jirq Deoember 31,
1992, 8.1yer's activities in those areas JllISt equal or exceed ten percent
(10') of his gross inoaoo fron the rosiness which he i!.' purdlllsinq under
tl11s hjL~ent, or KellCXR will be permitted to engage in those
activities. KellCXR's involvement in E'mironrnental audits, hazardous
waste remediation and tank SUWOrt services slk,ll be subject to this
restriction on an annual basIs during the term of this I\greernent.
l\Rl'IClB 11
g,mJBLl\ND RlKJII\SB ~
~.1 ClosiR1. 'lhe closing of this J\qlo!E!OO.llt will take place at 't
~.H. local time on or before NovE!lTtler 8, 1991 ("Closing Date" or
"Closing") at the offices of O:Jnnelly, Reid & Spade, 108-112 Walnut
street, l/alTisb.1rg, Pennsylvania or on such other date or at such other
time and/or plaoe as may be IlP<Itually agreed upon in writing by Kellogg am
Willians/ rot the effective date of this transaction will be January 1,
1992 ("Effective Dlte").
2.2 'arcd TiUe. on the effective date, KellCXR will sell arxl convey to
Willians by BWrcpriate bills of sale, en::lorsements, assIgnments ard other
instruments of tramfer arxl oonveyance satiSfactory in form to ooonsel for
Willians, all of the Transferred Assets am Willians will payor cause to
be paid a portion of the plrd1ase prioe upon such tenrs and conditions as
defined by this luticle.
2.3 PlIJ"f'tl;,_ Price fClL.-'nMDible ani Intamible~. 'Ute purchase
price for the tangible arxl intangible assets of the Seller incl\ld.J.ng the
corporation (transferred assets) will be 1hirty Eight 'lhousard Fifty
($38,050.00) [k)llars which sum will consist of $2,500.00 for the inventory
of the Seller, $10,550.00 for the equipnent of t.he Soaller as set forth on
Schedule ~ attached hereto, and $25,000 for goodwill of tile Seller am
as agreed to by the parties.
2.3.1 ~ Price fot.J;be 0M!mI1t Not to ~. 'lhe purdJase price
for the oovenant not to cx:qlE!te of the Seller corporation md its
individual shareholdern, Edward B. KellCXR arxl Mary E. P. Kellogg at
Paragralil 4.1.16 of this h"l"""leI1t will be One IIurdn!d 'I\renty Nine
Thousand ($129,000.00) [k)l1ars as agreed to by the parties.
2.3.2 11.100....- ~d..A~~ll&mt.1Y.J!:.!......,1. williams agrees to
pay to F.dward B. J<ellCXR the to!:.,l sum of Ninet.y six 'Thou-qand ($96,000.00)
D:>llars in 8<XX>rdance with tame hereof ard the Ind€'perxl€'-TIt ContraC.'tor-
3
O:1IlBUltant J\o,j...enent attadJed hereto atiJ by rnference herein incorporated
ark1 to lIotIich the parties have 8greed.
2.3.3 (^) WilliMl!l my set-off by !lUbtracting fran the balance due from
willi_ to Kellogg, any MDlU1ts paid by willi8lm p.l1'BU8lIt to PllragraP1
8.6, inclwinq rot rot limited to damages, penalties, interest and
attorneys' fees. In the event Il'nllcxn elects to deferd, rather tJ1lIIl
settle or pay any claim for lIotIidJ WilliBll'S has the right to be
indennified, then WilliMl!l shall have the further right to withhold
payment of the litigated cl8im from any annurt:s due w-der the p.1rchase
price, until sl.1d1 time as a final judgment is ren:lered in the matter.
2.3.3(8) (1) Sllll Rlyable at Closing In addition to the down payment of
$5,000.00 receipt of which is acJcna.rledqed by Seller at closing, WilliaIM
shall ptIy to Kellogg the sum of Fifty '1ha1sard ($50,000.00) Dollars to be
awlied to the transferred assets being p.1rdlased as set forth in
P8nl~ 2.3 hE'reinal.ove.
2.3.3(8) (2) '111e balance of the p.11"Chase price of '1\/0 11UIxlred Eight
'1lnIsard Fifty ($208,050.00) Dollars shall be paid by WilliaIM to Kellogg
to be evidenced by n Note in the lIJOOU/lt of ('1\/0 IlUJrlred 'ltlOlllkW
($200,000.00) Dollars in the form as attaciled hereto as Exhibit -1-.,
payable JOOI1thly, CXlI1I'Ilel\Cing February 1, 1992 as follows:
(1) o:mnencirq February 1, 1992 nn:l each suooessive month
thereafter during calerdar year Slding December 31, 1992 the S\D1I
of $3,500.00, f.or a total of $38,500.00:
(2) carmmcing .Tanuary 1, 1993 and each month thereafter during
calendar yoar erxUnq ~Ioor 31, 1993 the S\D1I of $7,500.00, for a
total of $90,000.00:
(3) Cc:mnencing January 1, 1994 one payment of $5,500.00 due on
that date ard ClalI1le1lC'inq February 1, 1994 and each SUOOE!BSive
month thereafter duril'XJ calen:lar year en:Jinq DooeI,~r 31, 1994 the
sum of $3,500.00, for 3 total of $44,000.00: and
(4) O:mnencing January 1, 1995 nn:l each successive month
thereafter erding en:Jinq septerber 30, 1995 the sum of $3,500.00
and on Clctcber 1, 1995 one payment in the amount of $4,050.00, for
a total of $35,550.00.
2.3.3(8) (3) 'l11e parties agree that all i!IIl1l:mlts payable hereun:ler which
are not specifically allocated to inventory, equipnent ard goodwill will
be allocated to tJle oavemnt not to oatp!te and the Irdeperdent Contractor
consultant J\o,j",,,,,"ent be~ the parties.
2.4 '1'eI1ainttittL.Qf.Jmment of R.rnv.-..fIi2I. tlotwithstarding any other
provisions providinq for a set-off of the payment of the I"lrdlllS8 price by
williamEI to Kellogg, it is urxIerstood ard agreed among the parties that
if at anytime within a period not to exoeed tlIenty-four (24) months from
January 1, 1992, the radon testing license in the name of nJwaro B.
4
{ l':fll/
yV~
Jl{'t//
~'IZ
.)t~
Rallogg individually, shwld Lo=Jlle urk~vai1able to Kellogg Fmironnental
servioefl, (exoepI: sinult.ar1coos replllot'l1lE!ut of the rada1 testirq llceJISO in
the I1IlII1Il of 9.lyer) or the lIWlicatiVil for tEl license of ll1yer am
tnlnsfer of the ~rd B. Kellogg radon lioe.nse is not <D11lleted 011 or
before JIUUU}' 1, 1992, then at sud1 time all payments shall term1nnte am
Seller or EklWard B. Kellogg lun Mary E.P. Rellogg, shall have no furtJler
rights against willi_ or Kellogg nwironnental Services whatsoever for
collectim of the bal8llOll of the p.ud_ price, exoept however, it the
loss of lioenge is due solely aOO directly to actions or inactions on the
part of Williams.
2.4.1 IIIh"rl..l 1lIof'...'lt bv 1l1vm'. ^ material default on the tet1l'S,
oorditions am urrlertaki.1'JlS of the B.!yp,r to this h)reenent which results
in the tetminatim of this h)reement, will have as a result the forfeiture
of the business to Kellogg by ~lYet ~ cessation of the covenant not to
oqtpete as ~ined herein, O,N.,. NJ...v,...\,~.,..,,-,t cA NN-\ 1V.~\J;;.t {~(v'fl...l;:,~ "II
~NII'--Ic ~rIV\t'''^fM...,;.1lV\ Jw-"'t>-., V V \ q I
2.5 Aetmn of - Price. Notwithstanding any other provIsion of
this hju:...nent in the event that ~ does not awrove the licenoo
awlication of ll1yer lIln transfer of tJle ~rd R. Kellogg radon license
to Il1yer on or before January 1, 1992, then Kellogg will il\1lll!diately
return to 9.Jyer the !IUIl\ of $55,000.00 which represents the sums paid to
Kel~qgg urrler tJlis hJL~t ard any Exhibits thereto, v...-t... A/)'~ ~
~~ 1~"''\ (.( . ('l\r.Ut. ,
~ I\RI'IClE III
3.1 ~-.h. ani Sdvrlllles to w...Mlvered. Kellogg has prepared for
Willians and will deliver to willians prior to Closing the follCM~
sd1edules, documents an:l oopies required by this Article with re..pect to
Kellogg .
3.2 RAlAr1es l!Dl JDlloyment h....~.~lts. A list referred to as Schedule
I, of all eq>loyees, their (i) narres, (il) dates of birth, (iii) dates of
hIre credited, (iv) present hoorly rates or salaries, (v) oopIes of
enployment <XlI1tracts, a<JL,=".ents or urrlerstanUngs, written or oral with
any eq>loyee.
3.3 ~. ^ list, referred to as Schedule II of all motor
vehicles, showing ClOSt aOO depreciation.
3.4 Li"", ~. ^ list, referred to as Schedule III of the
licenses and permits presently beirJ:J used in connection with Kellogg
bJsiness ani oopies thereof.
3.5 n-nM>nI. To the extent available, a list of custaners reflectirq
name and address, referred to as Sd1edule IV.
3.6 .LlguJim h....-' Its. ^ list, referred to as Schedule V of all
licensing l'Igl~'o:I\ts whetl1er as licensee or licensor indicatirq
assignability am oopies thereof.
5
3.7 ~t" ~lt:s. A list, referred to liS Schedule VI, of My IIni all
prepaid deposits or ~.
3.8 ~1<ll!W' llE!netit Plgm. Cqlies of 1111 groopinsurance policies,
plllM ani other contracts or arrallJEl118llts pertaining t enployee groop
insurance, peI'V!Iion, profit sharing, boros, retirement or other similar
811>loyee benefits to be referred to as Sdledule VII.
3.9 T""lalu). ^ list, referred to as Schedule VIII oontaining a true
ani call1let:e sd1edule of all insuraooe policies or birders of insurance
held by or on behalf of RelllX1:J or relating to KelllX1:J's rosiness or any
of KelllX1:J'. assets I>'hidl will specify the insurer, the IlI1lOUIlt of
ocverage, the type of imurance, the risks insured, the E'Jqliratioll date
the policy 11l.D'Itler, the MnII1t of premiUl1l9, ani My pending or qJeJl claims,
whether or not wholly O"lIIeI"Eld, as to annmt thereuJDer.
3.10 .........11.1 o..lL..aets. ^ list referred to as Schedule IX of all
oontracts, agreements, ccmnibnents, lUTliIl,j<.:ments, evidences of liabilities
or ooligations, not otherwise requested in this lIrticle anil>'hether or not
in the nornBl ClOlIJ:'II8 of business, whidl may involve the receipt or
expemiture after Closing of lOOnies in excess of $100.00 or more.
3.11 T""n Iw.u -iLB. ^ list ani sumnary description, referred to as
Sdledule X, of i.nst.nDnents ani other docurIlmts relating to irde.btedness,
other than trade payable or trade reoeivables incurred in the ordinary
c:x:m-se of Wsiness, am cq>ies of all notes, comitional sales contracts,
financing leases, ani other security arrangements whidl encurriler title to
tile Trwlsferred Assets.
3.12 IJ.tiaatim. ^ list ani S\.DTI1llU}' description, referred to as Schedule
XI, of all litigation proooodings and governmental investigations or any
change in the zoning or buildinq ordinances, pending or known to be
threatened, affecting My of the prqJerties, ansets or rosiness of
KelllX1:J .
3.13 r...._ P~,,-'ly. A list, referred to as Schedule XII, of all l8<"\ses
relating to pereooal or real ptql8rt.ies, I>'hether as lessor or lessee in
the name of KelllX1:J Environmental Servioes, Inc. ani ~ies thereof.
3.14 Plrrrivl_ 01;.1...... C"q>ies of all material ~ orders arxl/or
SlJAllier suooontracts anticipated to be ootstaRiing on the Closing Dlte
referred to as Sdledule XIII.
6
IIRI'IClB IV
............I'>flM'IOti AND 1II\RRl\NI'1T:lR
4.1 ~.. .latiCDI ard
warrants to Will iBl1l!l, Io'hich
cl08in), 118 follows:
4.1.1 on the Effective lBte, Kellogq will CClJVe'f to Willil\lll!l, good ani
marketable title to the Transferred l\ssets, fl:\!lll an:l clear of all liens,
claims, charges and enC\lntll"lUlces, exoept as specifically assumed in
writ in) by Willians. J<:ellogg will in:lemnlfy and defen:! williams fran any
loss, damage, cost or expense, including reasonable attorneys' fees,
resulting fran a breach of the foregoin) representation arxl warranty.
. Kellogg represents ani
representations ard warranties shall survive
4.1.2 To the knowledge of J<:ellogg, there are no litigations, ptooeEdings
or investigations pend in) , other than the STEPALOVrrot arxl VERBINSKI
matters or threatened other than the C\o..~v matter that might result
in any material adverse change in the business or prospects or conditions,
financial or otherwise, of Kellogg or any of Kellogg's personal property
conveyed hereun:ler, or that questions the validity of any action taken or
to be taken by Kellogg pursuant to or in connection with the provisions of
this Jlyn"'nlel1t. J<:ellogg does not know of any basis for any such
litigations, ptoceedings or inv~tigations.
4.1.3 no cx>ntract has been entered into for the future sale or transfer
of any of the Transferred Assets other than to willians.
4.1.4 Title to, ani risk of lass or destl:'UCtion or damage to the prcplrty
being p..u:chased will remain in Kellogg until the Effective rate, at Io'hidl
time title to the pI'q)8rty will pass to Willians.
4.1.5 Kellogg has not knowingly failed to obtain any licenses, permit or
other goverrmental authorization necessary to the ownershIp, sale or use
of Kellogg's assets, Io'hidl 11Ol1UJI1"lianoe, violation or failure to obtain
might materially adversely affect the rosiness, ~tions, ptoepects,
pIqlE!rties, assets or conditions, financial or otherwise, of Kellogg ani
in l'';1rticular, wt withrot limitirg the foregoing, J<:ellogg is not
knowingly in violation of any emiI'Ot'Rl1el1tal, safety or health law, rule or
regulation.
4.1.6 Kellogg has I'lCIt offered, paId or agreed to pay, directly or
indirectly, any IOOI1ey or anythiJg of value, to any individual Io'ho is or
was an official or E'I'l1>loyee of any foreign, federal, state, a:JU/lty or
local governnent or any department, camnIssion, board, wreau, agency or
other instnJrnentality thereof, or who is or was a director, officer or
ellflloyee of aIr] private rosIness, for the purpose or with the intent of
inducing that individl.lal, in his official capacity, to use his or her
inUuenoe to obtain or maintain rosiness for Kellogg or to otherwise
affect the rosiness, Cflel'ations pl~, prcplrties, asSflts or
oordition, financial or otherwise, of Kellogg.
7
4:1.7 All unfilled orders am carmitments of Rellogg for the purdlase of
materials, mwUes am selVioes pertaining to Rellogg were rnade in the
usual nn:l ordinary oc::mBe of rosiness.
4.1.8 Rellogg is not. a party to, or in any way ooligated lUder, any
oontract for the payment of any fee, oamrlssion or expense of any broklar,
fbxler or advisor in connection with the origin, negotiation, execution or
perfonllanoe of this IIgreemeJlt, e.xoept a listing agh...'lel1t dated May 14,
1991 with Jack Gaughen Realty, am for the payment of \t1id1 Ektward &to
Rellogg is solely reBlM",ible.
4.1.9 To the knowledge of Kellogg, it is not in ""...terial default of any
oontract \t1id1 materially affocts the business or qJerations of Rellogg.
4.1.10 Kellogg will be respoIlllible for any liability clains that are
nBde with respe.."1: to any Kellogg activities oonducted prior to the
Effective l)lte am will imE!lllliCy and hold harmless and defend WilliaJIB
against any clains am damages of whatever nature, incllkiing attorneys I
fees, for oontesting the same.
4.1.11 Kellogg has good am marketable title to all of its assets,
personal am mixed, free and clear of all liens, pledges, security
interests, charges, clail1B, restrictions, am other encurriJrances of any
nature whatsoever.
4.1.12 Rellogg is not a party to any legal suit or action, not rovered by
insurance, or any arbitration or other administrative proceeding, penling
or to their knowledge th.t'eatened, or any pIlxleeJinq whatsoever aris!rg out
of the mployer/errployee relationship RnVor involving an alleged
violation of any local, state or federal law, rule or regulation. In the
event RellOC1,J is a party to ptooee..tirgs as specified herein, Kellogg shall
imemity am hold hannless WilliaJIB fran any am all liability therefor.
4.1.13 Any liability for monetary damages, includilTJ rot not limited to
negotiated settlements, resulting fran RellOC1,J's action(s) or practice(s)
in re..pect to any Rellogg errployee or errployees \t1id1 occurs prior to the
Effective l)lte will be the sole respc:us1bUity of Rellogg, including
liability for RDnllt:ary damages awarded an mployee for Wdges ~id1 may
have lIocnJed lifter the Closing Dlte to the date of any decree, settlement
or order awarding sud1 damages.
4.1.14 To the kncMledge of Kellogg, all lists, cq>ies and sd1eclu1es
requirt!d by this J\ql~t will be oatplete, valid and ac:x::urately reflect
the information requested.
4.1.15 To the kncMledge of Kellogg, the inventories of Kellogg are
CllrTently being maintained at nonra! levels believed to be adequate for
the oontinuaticn of Kellogg's rosiness as presently oonIucta:l.
4.1.16 Wwanl "'. Rellogg, and Mary f.P. Kelloqr;J, jointly and sever.aUy,
and as RellOC1,J' s shareholders am OWl1ern of all the issued am outstanding
8
stock of Kellogg IlJ'd Rellogg Ehvirorinental Services, Inc. tile Seller
~in, will not for IS period of one (1) year fran the date of final
payment hereof in tM ooonties of Dauptin, t\Inilerlnnd, Perry, 1IdanIl,
!lIJ1caster and York, Pennsylvania, wi~t the prior written CClI1SeI1t of
williams, directly or iRIirectly engage or participate in any business
illVtilving radon testing am radon reductioo as an irdividual plqlrietor,
eI11lloyee, oonsultant, partner, shareholder, director or the like, provided
however, that nlward 11'. Rellogg and Mary E.P. RellCX1.J may be solely
enployed by IS federal, state or local agency in sudi business.
It is further specifically acknowledged that a remedy at law for bread! of
the foregoing warranty will be inadequate and that WUlilllm, in addltion
to other relief available to Williams, will be entitled to te/lllOrary and
pennanent injunctive relief withoot the ~9ity of proving actual
damages .
In the event this Section 4.1.16 is held to be in any respect an
unreasonable restriction upon D:lward W. Kellogg or Mary E.P. Rellogg or
Rellogg Enviror1llE!lltal Services, Inc. by any coort having oorpetent
jurisdictioo, the coort so holding may reduce the territory to mich it
pertains arxlIor the pericxl of time in mid! it qJerates or effect any
change to the extent necessary to ren:ler this Section enforceable by said
coort. Said decision by a CXlurt of oaJtl8tent jurisdiction will not
invalidate this Jlyl,,","'lE!nt rot tilis Jv,jtOOdmt will be construed as not
containing the invalidated provisions and the rights and obligations of
the parties wUl be interpreted, construed and enforced accordingly.
4.1.17 Kellogg is a corporatioo duly organized, validly existing and in
good starding under tile laws of the a...1I,,,,,,lWealth of Pennsylvania, is
qualified to transact business in the O:m1DrlWealth of Pennsylvania and has
the corporate power to carry 00 its business as now corducted.
4.1.18 '!he executioo and delivery of this JIy.e..rnent by Rellogg aoo the
performance of the transactions contenplated herein have been duly
autilOrized by the Executive camrlttee or Board of Directors of Rellogg and
no further corporate al..1:ion is required. 'Il1e execution and delivery of
this J\ql.eument and the corvn=.ation of the p.lI'Chase of tile Transferred
i\ssets in CJaI'Illianoe with the teI1IB hereof will not conflict with or
result in the bread! of the charter or by-laws of RellCX1.J, resolutions of
Kellogg, or any term, corrlition or provisioo of, or constitute a default
under, any indenture, mortgage, deed of tnJst or other contract, or
oat1IIib1w.lnt to mid! KellCX1.J is a party or by m.idl KellCX1.J may be boord,
or result in the violation by KellCX1.J of any law, rule, regulations,
order, judgment or decree. '!he transactions conteJ1illated by this
J\ql"",,'lent may be COI1SlIII1Mted withoot the necessity of obt.,\ining any
COflfJellt fran any party. certified cqlies of the Executive ConInittes or
I!Ol1rd :resolutions of J',ellCXJ:.l are attached as Exhlbit 1-..
4.2 ~ ,latia1El lQt tmTlmUm....2LlI.ll1J.Jmu. WilliMll represents and
warrants to Kellogg, mich representations and warranties shall survive
clOl!ling, as follOWBl
9
4.'2.1 willi~ is not a party .to, or in any way ooligated under lIny
CU'ltract for the pllyment of any fee, ocmnlssiC)ll or expense of any broker
or finier in .......u"",tion with the origin, negotiation, execution or
perfoI11llll1C8 of this h"..,dllSIlt.
4.2.2 WillilU1B has received a I1Prtgage on his property as required by
the SepteJItler 3, 1991 h"l"""lellt between the parties ~id1 is attad1ed
hereto as Exhibit .3 , ani the time, ocnlitions, CXlVenants IUd
undcrstarxHrgs of the parties tllereto of ~id1 are incorporated by
reference herein.
4.2.3 Williams will OCIlply with all the t.etns, oonditions and
underta:kinqs of the Interfaoe J\o,jl....'ll!lIt to be dated j...~ l't'l L
between IlIyer ani Seller whid1 Interface h,,""C1.ll!lIt is attached <l\ereto as
Exhibit ..!:L and by referenoe herein incorporated.
J\Rl'ICLB V
9::mEl'1Yluwm OFmATlCH;
5.1 unless the action was otherwise awroved (~ich awroval shall not be
unreasonably withheld) in advance in writing by Willians, Kellogg
oovenants and agrees with respect to its business that fran ard after
Septentler 3, 1991 until the Effective D!te Y.ellogg will:
5.1.1 Corxluct Kellogg's business only in the ordinary ooorse, and use its
reasonable efforts to retain its business organization and the goodwill of
suwliem, custanera IUd others having business relations with Kellogg IUd
use its best efforts to keep available the services of the present
Ellployees of Kellogg.
5.1.2 Not enter into, assume or create any I1Prtqage, pledge, conditional
sale or other title retention ~l.,ellent, lien, security interest,
encumbrance or charge of any Jdnj on the Transferred J\ssets.
5.1.3 Not incur any IMterlal ooligation for boI'l'U</tld m:mey or make any
extensions of credit, other than ordinary trade credit, loans or adv'cII1OElS
to, or assume, guarantee, enIorse, or otherwise ~he liable with respect
to additional ooligations for Kellogg, ~ich, as a result of sud1 action,
wwld cause an adverse effect on the sale of the Transferred J\ssets.
5.1.4 At Kellogg's expense, maintain the Transferred J\ssets in custanary
repalr, order ard OOrxHtiOl1, rea.."lOI'lBble wt'ar an:) use and d."lI1lBge by fire or
other casualty excepted.
5.1.5 l\coept custaner orders, issue quot.."Jtions, estimates ar4'or
pIqlOS8ls only in the usual and ordinary cxurse of business.
10
5,.1.6 Not make any oamdbnellt for capitlll eJq:lClJdItures for additions to
ai'rf facilities currently 1&.1Sed by Kellogg which wwld be.,unO a liability
or obligatioo of WillillllB as lessee.
5.1.7 Not (i) make any increases in the CXJ11lElf1Slltioo payable or to ro.ul19
payable to any of Kellogg's officers, Ellplayees or agents, or (U) JMke or
enter into any written E!IJIllayment cxntract or any bonus, stock qrt:iOIl,
profit sharing, pensioo, retil""..e1.t or other similar payment or
arrangement which increase or nrrarqenent would be effective past tile
Closing Date, except perks, oamdssiaJS, salaries, bonuses or
reiJrb.1rsements of any type which do not legally bird WillillllB.
5.1.8 Maintain in force all tile insurarx:e policies ocvering Kellogg's
assets am leased facility until the date of transfer of assete.
5.1.9 Not incur any liabilities or obligatiaJS absolute or OCJI1tingent
for Kellogg, exoept: in the ordinary ooorse of rosiness or pmruant to
existing OCJI1tracts an:i ayl....,ents.
5.1.10 Not make any oamJltIrents ext:eming beyord one year (except
oamdtIrents for periods in exoess of one year relating to the sale or
purdJase of Kallogg of gcxxi'l an:! services for an arrount not in excess of
$100.00 per transaction) to any one plrchaser or vendor or group of
purd1asers or verdors.
5.1.11 Not enter into, renew, exterd, nr:xlify, terminate or waive any
right urder any lease or licellse.
5.1.12 ~rate with Willians in drt:aining, the transfer of any
lioenses, titles or permits necessary for Willians' use of the Transferred
Atlsets.
5.1.13 Ptu.~Lly after knowledge thereof, provide willians with notice of
(i) litigatioo: (U) anticipated litigation: (Ui) suspensioo of any
license, permit or other governnental authorization: (iv) insurance
cancellatioo: (v) any rmterial termination of or material disp.tte with
any material custaner or 1III!llber: (vi) am terminatioo or dispute over any
licensing ay~.....1eIIt or financing lease ay~",""llo:J1t: (vii) custaner
canoellatiaJS: (viU) claiJ1l!l: (1...) suwlier shortage or refusal to
deliver: (x) goverrmental agency or departmental notice, local, state or
federal, ooooeming any alleged violation of any law, rule or regulation
an:! (xi) notices or CXln'eSpClrdence oonceming liens, loans or enc::unt>ranoes
affecting the Transferred Assets.
5.1.14 J<ellogg will f'lltlloy Willians fran November 1, 1991 \ultil January
1, 1992 as an f'lltlloyee at a gross salary of FalI' '1tloosarn O:>llars
($4.000.00)/per month, payable ~y plus reiriJursement for mileage, all
car phone expenses an:i lIliscellanea.JS msiness nllated elIpelISE!B. willians
agrees during said pericxl to I"'rfonn a mInimum of 40 hours per week of
l!l1I'loyrnent sexvioes necessary to Educate hiJ1I!Ielf in the qJeratioo of the
rndon testing an:! radon reductioo msIness, provided that if WUli1lJ1l!l does
not work in any week he will not be paid for that -..-It. .
11
5:1.15 At any time between NovmtJer 1, 1991 to June 30, 1992, Willillllll
may eJlIlloy Seller's wife, ItIJ:y E.P. r.ellOlJj, at the rate of $10.00 per
hwr not to exoeed 40 hours per week. All servioes of Mary E.P. I<ellOlJj
shall be at will ani she agrees to subnit a written resignatim in a form
as required by Willilllll9 at his request.
lIRl'Ia.8 VI
aHnTRHl OF ClCRDG NIl <DIllT1<<II
M.JJl 'IIIB 6I'&"....~I..l1ll ~
6.1 Wllli-' o:nlitiwe. 'lhe cbligation of Willilllll9 to take those
acttors required by willians on the Closing Date will be subject to the
followi.rJ;J ocnUtioos:
6.1.1 'lhe representations ani warranties of Kellogg herein contained will
be tnIe in all material respects as am at the Closing Dlte with the same
effect as t:hoogh made at SlIdl date.
6.1.2 Williams will have received all documents an:! schedules required by
Article III.
6.1.3 An accurate listing of all office Ilklchinery, equiprent aJJ1
furniture with respect to the Kellogg facility, referred to as Schedule .fr
will have been catpiled am initialed as accurate by Kellogg.
6.1.4 Kellogg will have performed all cbligatioos, CXI1plied with all
covenants ani provided williams with all notioes required by this
J\o,j.=lNmt to be perfol111ecl or CXI1plied with by Kellogg.
6.1.5 Arrj waivE!I'S or consents reasonably believed necessary by Willians'
counsel will have been received in form anl substance satisfactory to
counsel.
6.1.6 All transactioos oonterplated hereby, an:! the form an:! substance of
all legal pl~ings am of all papers used or delivered hereurder,
includi.rJ;J rot not limited to any lease ani a O:>nsulti.rJ;J J\o,j."",oont with
nJward B. Kellogg will be in a form an:! substance reasaJably satisfactory
to Willilllll9 am his counsel.
6.1. 7 No suit, action or other ploceedil'g to restrain, prOOibit or
otherwise affect the oonsunrnation of this JIq..'dllE!l1t which in the
reasonable judqment of WiUiarm or his counsel ~ires a delay of the
Closing, or the termination of this Jlqu...dent, will have been instituted
or threatened, and no inquiry or request fran any governmental agency with
respect to the transaction provided herein, whid1 in the reasonable
judgment of Williarm or its counsel requires a delay of thCll Clos.I1lCJ, will
have been received by Williarre.
12
6.:! Wl1l1-' ~~. 'lhe dJlil,Jation of willilWl to talte tJ1cl8e
actions nqlired by Will iME on the Effective D!lte will be subject to the
following conditions:
6.2.1 1he repnsentlltions and warranties of Kell099 herein contained will
be true in all material lespe...-.tS as and at the Effective D!lte with tJle
BIII1le effect as though made at such date.
6.2.2 WillillJll!l will have received all documents and sd1edules required by
Article III.
6.2.3 An acc:urate listing of all office machinery, equipnent and
fUrniture with reElpect to the Kell099 facility, referred t.o as Schedule .b.
will have been CXltpiled anj initialed as aocurate by Kellogg.
6.2.4 Kellogg will have performed all ooUgations, CXltplied with all
covenants and provided Willi!lllll with all notices required by tJlis
l\greement to be performed or CXltplied with by Kell099.
6.2.5 1\rrj waivers or oonsents reasonably believed necessary by Will i!lllll ,
ooonsel will have been received .\.n form and substance satisfactory to
CCJUllSel.
6.2.6 All transactions oonteJrplated hereby, and tJle form and substance of
all legal plooeelings am of all papers used or delivered hereunder,
includ.ing b.1t not limited to any lease and a O:lnsUlting hJleement with
Mward B. Kellogg will be in a form and substance reasonably satisfactory
to WillillJll!l and his camsel.
6.2.7 Any and all permits, llWrovals and other actions of any
jur.\.sdiction or authority requ.\.red in the reasonable q>inion of oounsel
for WilliME for the lawful OOI1SlIIlI1lation of the transactions exmteJrplated
by this ~~"""llI!Ilt will have been obtained, and no such permit, awroval or
other action will oontain any provision wictJ in the reasonable judgment
of CCJUllSel for Willi!lllll will be umuly b.Irdensane.
6.2.R Kellogg will sell and OOfIIIey to WillillJll!l by aWIq>riate bills of
sale, en:1orsements, llSSignrnents and ather instruments of transfer and
oonveyance satisfactory in fonn to counsel for Willi!lllll, all of the
Transferred Assets.
6.2.9 No suit, action or other pl~lrg to restrain, prohibit or
otherwise affect the OOI1SI.lI'lI11Btion of this hJu,~ment wich in the
reasonable judgment of Willi!lllll or his oounsel reql.l1reEl a delay of the
Closing, or the termination of this J\y~"""l.ent, will have been instituted
or threatened, and no inquiry or request fran any governmental agency with
respect to the transaction provided herein, widl in tile reaSOllllble
judgment of WilliMIJ or its oounsel requires a delay of the Closing, will
have been received by WilliMIJ.
13
6,'3 lCA11MlJ1 <u1llt1lDf. '100 ci>ligat'lons of Kellogg horeumer to take
tJlOSO actions required by it 011 the Closing Dlte will be subject to the
following ocnHtions:
6.3.1 AU t:nmsactions contenplat.ed hereby, am the form IIrd sullstance of
all legal Pl"OOEll!ldings and of aU pepers used or delivered hereurXler,
incl~, wt not limited to any lease and a Consulting IIgreement with
alwanI B. K8llCXJ9, will be in a fOllll ard substance reasonably satisfactory
to KellCXJ9 ard ite coonsel.
6.3.2 Wi11illJll!l will payor cause to be paid the annult unIer the teJ:m!l
ard oon:Htions set fortil in Paragra(tl 2.3.
6.3.3 'l11e representatiOllS and warranties of wilUllJll!I herein contained
will be true in all material re.<pects as of the Closing Dlte with the same
effect llS thoogh made at such date.
6.4 Kell......... <uIlj.!;kuI. '1110 'JbUgations of Kellogg hereunder to take
those actions required by it on the Effective lXlte will be subject to the
following conditions:
6.4.1 All transactions contrnplat.ed hereby, am the form and sullstance of
all legal proceedings and of all papers used or delivered hereurxler,
includinq, rut not limited to any lease and a Consulting 1'.:JL.....'lellt with
Eklward B. KellCXJ9, will be in a form ard substance reasonably satisfactory
to Kellogg ani its oounsel.
6.4.2 WillillJll!l will payor calise to be paid the annmt under the terns
ani conditions set forth in Paragra(tl 2.3.
6.4.3 '!he representations and warranties of WillillJll!l herein contained
will be true in all material lespects as of the Effective lXlte with the
same effect as thOJgh made at such date.
6.5 ~i11b_' o:nutlUlS. lis of the effective date, Edward
B. Kellogg, individually and James J\nthony William!!, irdividually, will
provide wideroe of cross-pm:haSe life insurance policies in the initial
amount of $200,000.00 each to secure payment of the p1I"d1ase price in the
went of the death of either party. Each will name the other as
beooficiary ani payee of tJlis pol icy in the event of death. Each party
will be responsible for the paYJOOllt of pretdUl1'S on the policy in the other
parties name ani prov1de evidence in the form of a paid pretdum birder not
less than annually durirg the term of this 1'.:Ju..'E!lllellt. 'I1lEl parties !MY
nutually agree in writing to prqJOrtionally reduce the annual tnsurnnce
ClClVerage on the lives of each other to reflect the decrease in the annmt
of the pm::hase price owned by !lJyer to Seller.
14
ARrIClB VII
JICl'lOI'1t) 1m 'mmt /I!!JlIDl'FHl' '10 'DIB C'llRl':
7.1 _11~'. m.H""t-t...... J<ellogg agrees to the following obligatiOl'18
IIUbeequent: to Cloeil'Y,J:
7.1.1 It WillitUlB will determine that any rurther oonveyanoe, assiqrment
or other documents, or any further action, is J'leO""'!'!lry or ftl1'rq>rlate to
vest in or oonfer to wi11illllB fUll title to the Transferred Assets,
J{ellogg will take such action, ard execute BUd1 instrumente, lIS WillitUlB
may l"eIISa'lably determine to be necessary or awrq>rlate to carry out the
purposes of this ~....."ellt, at the expense of J<'ellogg.
7.1.2 J<'elloc;R will, in aooordance with J<elloc;R'S nor:ma.l record :ret.ention
sd1edule, retain, preserve ani IMke awilable to willitUlB during normal
business hwrs for any pI'ql8r p1IpllS8, MI'j of tile books and other papers
ani records of J{ellcgg retained by J<elloc;R hereurder and will permit
WilliBm!l to make ~ies ani extracts therefran, except any and all tax
records or records pertaining solely to Jd1neton laboratories.
7.1.3 J{elloc;R will irdemify, save ard hold hannless WilliaJIB am his
enployees, officers and Directors of ard fran any ani all claim, suit,
liability, loss damage, CXlSt or eJqX!TlS88, inclwing reasonable attorneys'
fees, resultil'Y,J fran any breach of Kelloc;R's obligations under this
J\greement existing prior to ard illclwinj the date of this hjleement or
thereafter c.lCI1I.in;J into being by reason of any state of facts existil'Y,J
prior to ard including the Effectlve ~te of this J\qleement or arisin;J or
growing rot of this ~..,.,..lellt.
7.1.4 J{ellogg will reasonably cooperate with Wi1lilllM at the request of
WillilllM in all matters involvlrg the carpletion ani filing of Internal
Revenue Service Form 8594.
7.2 Wltlt_, m.l.kratltnJ. WilliaJ1B agrees to tile following obligations
subsequent to Closing:
7.2.1 To provide Seller with an lrdlvidual financial stateJrent, upon
which J{eUogg is maJdng substantial reliance lIS part of thIs J\qh.e100nt.
7.2.2 WillillllB will irdEmlnify, save ard hold harmless J{ellogg am ite
respective officers, partners, agents servants ani enployees, of and fran
any and all liability incurred after the Effective Date arising fran the
bream of WillitUlB' obligations hereurder.
15
.'
NU'C1.'8 VIU
'ftHUIlIn'JXIf MD ~JANPIUI IBJVISRHI
8.1 """'-I..tim. 'Ihis lIg''''''''l811t may be terminated by notice given on or
prior to the closing OIIte in the following manner:
8.1.1 ~ either Williams or Kellogg if a material default is made by the
other with Iespect. to the due arrl timely performance of any of its
covenants and agreenents oontained herein, or with Iespect to the acx.."UI'l\cy
or oatplet:.ene&5 of any of its representations IUd warranties contained
herein.
8.1.2 ~ Williams if all of the corditions set forth in section 6.1 of
this lIg......,1eJ1t will not have been satisfied on or before the Closing [)too
or waived by Wi1li8l11B on or before sud1 date.
8.1.3 ~ Kellogg if all the oonlltions set fortil in section 6.3 of this
lIy......\l811t will not have been satisfied on or hAfore the Closing D100 or
waived by on or before 3Uch date.
8.1.4 By nutual consent of Willians anI Kellogg.
8.1.5 By Willilllll9 if a material adverse charqe in the business or
oorxlition, financial or otherwise, of Kellogg will have occurred, or
Kellogg will have suffered a material lOBS or damage to any of its
properties or assets, and not repaired same or such change, loss or danage
results in a material destru<...'tion of the Transferred Assets.
8.1.6 An election to terminate this Sale of Assets Jl.greement as
hereinabove provided will be exercised on behalf of Williarns,
in:.Hvidually, and on behalf of Kellogg by its President.
8.1.7 In the event of tile termination of this lIg'<=J,ent pursuant to the
provisions of this Article, this lIg.."elllent will ~lIe void ard of no
effa.'t, without liability on the part of either party or its directors,
officers, Ellployees, agents and stockholders, in re'3p8ct to this
Jlr,jl.....,ent, other than the liability on the part of ead! party for its own
expenses irx:urred in connection with the transactions cont:errplated by this
J\g1.eement, provided, ~er, that the $5,000.00 payment made by William
to Kellogg pursuant to the l'qle.,,,,mt dated Sept.entler 3, 1991 shall be
.l.mnediately returned to Willi8l11B.
8.2 llg[yival of ~. 1119 warranties, representations and
covenants of the parties hereto will survive the Closing.
8.3 RIRk of ''''''''''. At all times prior to the Effective rate, the risk of
loss with respect to the Transferred Assets will be with Kellogg. In the
event the Transferred Assets will be substantially or materially damaged
or destroyed by fire or other casualty, Kellogg will ill1ll!!diately notify
Willilllll9 in writing thereof and the extent thereof and prnTlJtly notify
16
WilliMB whether it intends to r~' with the J:'l'Pl'lir, restomtion or
~laoement to the quality as existed i.JlInediately prior to the casualty,
provided, however, in the event of total destroction WilliMll !MY declare
this J\greEment: to be null ani void. Kellogg will !Mintain in full force
ani effect until the Effective [)!t.e all fire ani extenled ooverage
insurance against such risks ani in such 8IIn1I1te as currently !Mintained.
8.4 Dh""h.I_. IT IS SPOCIF'ICIIU,y Aa<tOnEOOEIJ BY 111E PlIRl'IES 'l1J 1mS
J\GRED1ml' 11IAT WIILIJ\M'3 IS ruROlTI.'llOO OOLY CERl'AIN DESIGNI\1'ID JlSSfITS flQ{
!(F.TH~. WIlLIAMS ASSt.JMrn 00 Ilffl(QlSIBILIT'i fUR 1INY LIlIBILITIES OF
!<F.I I n-r., KtO'N OR lJN>>UVN, UNlnlS C1l11mWISF. 1RJIT1m> IIEREIN, 1IND
SPEX:lnCALLY DISClAIMS mY RrnIalSIBILlT'i fUR 111E 1mT\L 00 TflX
IWUFICATIOOS WIIIOI cnn.n BE <IDlERATED BY 1l1E Shl.E OF 1l1E ~Irnmr,
INVENfORY AND JlSSE.'IS OF KElJ..OX.
8.5 Dunsfer 1'!1lg. Neither party to this hJreertl'?nt is aware of any
sales, use or excise or other similar taxes or fees arising out of the
conveyance, transfer, assignment, sale ani delivery hereunder of the
assets to be transferred, but it any are levied against either of them,
tlley will be paid by Williams, provided however, that any OER awlication
fee to be paid by Willirum to qualify for the corporate radon license will
be paid one-half by William ani one-half by Kellogg. Any renewal fees
will be Williane' responsibility.
8.6 ~....r~. l<elloqg 1Igrees to indemify arx.I defE'oo Williams
against any claiJm ani d,IllIo"ges of whatever nature including attorneys'
fOP-s, for contesting the same, ani assessroonts against Williams by any
creditor of Kellogg for norlCOl1Jlliance with the Pennsylvania Mk Transfers
law whidl !MY be awlicable to the sale or transfer of the Transferred
1\ssets .
8.7~ . Each party will bear its own expenses arx.I fees incurred in
connection with this JIo,j''''''''lelIt ani the transactions conterrplated hereby,
inclucUng wi~ limitation fees ani expenses of aCCOW1tants, awraisers
ani attorneys.
8.8 Chmt-..rn""t8. ^"t number of counterparts of this lIgreernent !MY be
signed ani delivered and each will be considered an original and together
they will constitute one ayu,""",ent.
8.9 Gavmnirn lav. 'Ihis lIgreement will be E'.xecuted, CXlnstrued and
perfoI11llld in accordance with the laws of the CamDrFw'ealth of Pennsylvania.
8.10 n-.t.lrA 1Lu-'-,l. This hjtt1oo.leJ'lt constitutes the entire agreement
between the parties pertainirg to its !,'ubject matter and supersedes all
prior ani oontenp:lraneou.s negotiations, ay."",,,ents arx.I understardings,
written or oral, of the parties in connection with it. No repreSE>J1tation,
covenant or oordition not expressed in this hjh='lent will affect 01' be
effective to interpret, charge or restrict this lIy''''''''lI8nt. No amendrnP..nt,
roodification, termination or attmpted waiver of any of the provisions of
this JIo,j,,,,,,,,.ent will be binding on the parties unless in writing signed by
both ptlrties. No waiver of any provision of or default urder this
17
'I\g~ will affect the right of the- parties thereurxler to enforce any
oUler provisioo or to exercise I\IlY right or remedy in the event of any
otller default, Wether or not similar.
8.11 Nnl-I__. All notices, deIran1s ard otller CXITI1lIllications wich I\r:'8
required to be given to or JMde by either party to the other in connection
with this 1\g1~1lBIlt will be in writirq, will be deened to have been given
when posted by certified or registered mail or Wen receipt ot a ooorier
express, telegram, cable or telex has been acJmawledged too the following
addresses :
It to Kellogg Envircnnental Services, Inc.:
4705 Trirdle Road
Hed1anicsOOrg, P^ 17055
It to nlward B. I'.ellogg ani Mary E.P. Kellogg:
816 Anthony Drive
Hed1anicsrorg, PA 17055
It to WillianE:
P.O. Box 1002
Millers Gap Road
Medlanicsrorg, P^ 17055
With Cqly To:
Connelly, Reid , spade
Attn: James E. Reid, Jr.
108-112 Walnut street
P.O. Box 963
Harristurg, P^ 17108
It notice is personally delivered, the inUvidual aoceptirq such notice,
if requested, will sign a duplicate of the notice to evidence receipt
thereof.
8.12 ~lles. Schedules referred to herein wir.ta have not been
attached hereto at the tiJre of the execution of this ^",u..,jnent will, by
tile consent of the parties, signified by the parties' initials on the
l\a:Uticn be later attached or COltlleted ard be deemed a part of this
l\q<'='I.ent as it attached hereto at the tine of execution.
8.13 p.wIlrq!J. 'Il1e he.1dirqs to the varioos l!leCtions of the J\qL800lent
have been inserted for convenient reference only ard will not to any
extent have the effect of rrcdifyirq, amerdinq or dJanginq the express
t.enrs ard provisions of this IIlJla.llent.
18
INfmJllM'IlUI' <XIfi .
/."'J 'lUIB Inieperdent O:lntra~to Cbnsultant Jlgreaoont this J day of _
(l,v. , 19 2 ~_ ""lll~, Inc. ("CcJrpany---li) IUl1 aJwotd
Yell~ of 11, ~JI(....~ ~'( J.., ,o/~plut irxUvidual ("Consultant").
/
W1'IlfmSB'1H:
this document,
foll~:
In consideration of the nutual agreements contained in
the parties, inten:ling to be legally boorxJ hereby, agree as
1IRI'ICIJ3 I
NA'lURE OF a:.tRJ1JD\Nl' RSrI'Im
1.1 Carpany desires, upon the p.Irdlase of Consultant's business, to
make use of Consultant's expert-lse In the radon testing and radon
reduction, water IUl1 ceptic system certifications, hane inspections,
environmental audit, termite inspections, contracting, including palntinq,
maintenance, concrete slabs and electrical, sunp-pit/BUI1p punp
installation and repalr, asbestos removal, hazardous waste remediation
and tank SlJRlOrt services (hereinafter "radon t.esting and radon
reduction") business. Consultant personally is lioeJ1SEd in the
CamI:lnwealth of Pennsylvania to CXlrduct radon testing and radon reduction
services umer 1J.cense No. ifL--.
1.2 Ck:1rpany shall e/lIlloy Con.."l\11tant, and Consultant shall accept such
enployment fran January 1, 1992 t.I1roogh January 1, 1996 (the "Cbnsultinq
Term") to uroertake sudl duties and to perform such services as reasonably
may be assigned to him by the Board of Directors of the Carplny or by its
officers, as further defined in Paragraph 2. Cbnsultant shall provide
CXlnsultinq services not to exoeed 960 hours et an hrorly rate of $100.00
per hour during the term hereof.
1.3 Consultant shall be an bxleperxlent contractor and not an e/lIlloyee
of the Ck:1rpany IUl1 subject only to the terns of Paragraph 2, shall
determine his CM1 JrethcxJ of qJeration in aCXX'llplishlng such tasks as may
be assigned. 'I11e Consultant shall not be entitled to receive any
carp!llSation, cx:rmLissions or benefits other than those expressly provided
in this ~....,.,.ent.
JIRl'ICIJ3 II
~~<IHlJI1[miJID'.mi
2.1 nu-ing the Consulting Term, Cbl1sultant shall be available upon
reasonable notice givE'J1 by the President of the Catpmy to assist the
CalpIny in an advisory or special as..qignment capacity in his areas of
expertise and C011Jetetlce in radon testing am radon nrluct ion through
utilization of his Cam10nwealth of Pennsylvania lJcense No. '! (.
COllsultallt should be available at least telephonically during the
OJnsulting 'l'errn to carry rot the duties assigned by the President of the
COlpUly. 'Ihese OJrsultant lIBSignments shall be caTfJ8flBllted by pIIymE'J1t to
O:nn1ltant, ocmnencing February 1, 1992, of a total consulting fee of
$96,000.00 to be plIid JIIJI1thly based upon a total not to exoeed 960 hours
of consulting services at a rate of $100.00 per hour ani eadt J1'DIlth
thereafter to ard incllxling January 1, 1996. Consultant shoo.ld be
responsible for am pay any am all expeM88 necessary for him to carry-
rot the p.1lJXll!IE!S of this oonsulting hju.etll.,nt.
2.2 It is urderstood am agreed by the OlmUltant ard the President of
the c:mpmy that the O:IlI1lalWmlth of Pennsylvania Radon Testing ard
Reduction License No. 9(, is IIl1 .integral part ant consideration for
the PJId- by President of the b1siness known as Kellogg Envirol1loontal
services, Inc. fran the Consultant. It is the intention of the PrP..sident
of the C'aIpU1y to lIWly for arn OOtain radon testing ard radon reduction
licensing in the Cl:IlIla1W'ealth of Pen/lsylvania in his own name within
\:we11ty-foor (24) 1lIlIlths fran January 1, 1992.
2.3 If for any reason during the twenty-six (26) month period
ocmnencing on the date of this lIqreement the radon testing and radon
reduction license of the consultant is inpaired or terminated by the
awlicable licensing Wreau of the O:1tIlr:JrM!alth of Pennsylvania, then any
and all future payments \liner the terns of this lIqreement otherwise
payable by the catpany to the Consultant shall terminate ard the CoI1pIny
shall have no further ooligation to make such payments to tile consultant,
exoept, however, if the inplirment or t:errnin.'\tion of the t1.lsiness is due
solely ll/n directly to the ac..-tions or inactions of Williarrs.
AR1'IClP. III
~rrrIOO
3.1 nu-ing tile to..nn of this hjn,ellent, Consultant agrees that he will
not engage in radon testing ani radon ~ion activities urder the
<::amrJnwealth of Pennsylvania License No. ~, nor directly or irdirectly
engage in, cpuclte, or participate in the ownership, management,
cpucltion, or control of or be an officer, agent, consultant, eJIllloyee,
partner, director or shareholder or have any b1siness affiliation
whatsoever with a b1siness that OCJ11lEltes with the C01pany in any manner in
the CIC1.II1ties of D!luphin, a.onberlant, Perry, lIdiIJM, Iancaster and York in
the C'at1ooI1Wealth of Pennsylvania.
3.2 Upon tennination of this Jlyn,e1nent for wh,,'\tever reason,
consultant agroos that Cons\lltant shall not directly or irrlirectly engage
in, ~te, or participate in the CMlElrship, management, C1l9rations or
control of, or be an officer, agent, consultant, enployee, partner,
dIrector or shareholder of any oo.!liness that cmp:!tes with the Catpmy in
any Jl1IIJUleI' as described in thIs J1q._,ent in the cnmties, ~lIphIn,
C\.JrNJerlard, Perry, JIdans, lancaster ard York in the O::mrortWelllth of
Pennsylvania for a period of thirty-six (36) J1'DIlths.
3.3 Consultant agrees tJ\8t thIs non~.t""tition section is l1l!OI!SBl\ry
to protect the O:IIpU1y's rosiness, whidl has been p.1Xd1ased fran the
O:lnsultant, am that any violation of this secticn will result in
irreparable harm to the O:lrpany. In the event that the consultant
bre!ld1.es this sectioo, the O:lrpany shall be entitled to injunctive relief
in IKldition to any other renedies legally available. This secticn roD the
rights of the 0:Ilpany herein shall survive terrniMticn of this lIgreemellt.
3.4 'Ihe parties agree that the value of this OOVeMllt not to ca1pilte
over the term shall be $129,000.00.
IIRl'ICIB IV
~
4.1 1he Consultant: shall not lit anytime or in any manner, either
directly or irrlirec:tly, divulge, disclose or oarmunicate to any person,
firm, corponticn or other eJ1t1ty in any menner whatsoever any infonnation
oonoerning any matters affecting or relating to the business of the
0:Ilpany, including without limitation, any of its custaners, prcxluct,
prices, manner of qJerations or any other inforrnaticn oonoerning the
tuliness of the Carpany, itg plans, prcoe<J!'9S, or other data without
regard to whether all the above-stated matters ~d be deemed
oontidential, material or illp:lrtant. 0:Itpany am Consultant specifically
am expressly stip.tlate that as between then, sud1 matters are material
am oonfidential am cnUd seriously affect the suooessfUl oorduct of the
blsiness of the Carpany ani the O:IlpYIy's good will. In the event the
Consultant bre!ld1es - Ws section, the Cc.Ilpmy shall be l!1ltitled, lII1Klrg
other remedies, to injunctive relief prdlibiting the Consultant fran
disclOl!ling sud1 infonnation. Provisions of this section shall survive the
termination of this l\yu.eso.ent.
IIRl'.tClE V
1lMlIJ.JIm\RY 'llBWWl'ICII OF 'lllIS l\rnF.FMOO
5.1 In additioo to the termiMtion of this hJ.,=,..ent for the reasons
set forth in Article IV hereinabove, the Ca1pany may tenniMte this
Agreement for cause upon Consultant's failure or refusal to adequately
perform the duties assigned to the Consultant.
5.2 It is further understood am IIgre8d bet_en the Consultant am
carpmy that the breadl of any of the representations, warranties,
obligations or duties of the Consultant as the seller of the assets of
Jl:elll'lglJ DlVircnnental Services, Inc. to l\ntJlcnY Williame p.1I'S\W1t to the
sale of Assets hJ."""IS/,t dated L day of IV,~ ,"';. ,,.. , 1991 may
also ~lt in a reduction of, alSSation of, or cancellation of any am
all payments urder this Consulting l\greement an:) tJlS parties hereto hereby
inoorponte by refereooe aU the tenM, corditions, undertakings am
obligations of the parties set forth in the sale of Assets r.y.......ent am
incorponte the _ by reference herein.
NU'laB VI
DlIm
6.1 Ca1plny w Cblsultant lUderstanl ard agree that OlnSUltant is
wholly respaeible ard liable for all taxes on inoane he receives pursuant
to this J\o,J~.....ent. l\rrf ard all inoane taxes or taxes of any nal-ure wich
are required to be paid by O:>nsu! tant p.1I'IIU8I1t to any federal, state or
local statutes are solely the Consultant's tespollsibility am the
OlnBUltant hereby agrees to indElll'l1ity am hold harmless the cmpany fran
any wall liability therefor.
Ml'laB VII
H1UVER Of IR2IQJ
7.1 'lbe waiver by tile C'atplny of a breach of any provision of this
J\o,J~""".ent by the OJnsultant shall not ~rate or be oonst.rued as a waiver
. of any subsequent breach by the onmltant. No waiver shall be valid
\Uuess in writing am signed by an authorized officer of the cmpany.
NU'laB VITI
~~o.;..' OF ~1:t11tTY
8.1 '1he invalidity of any portion of this J\grEement will not am shall
not be deellled to affect the validity of any other provision. In the eVfmt
that any provision of this ~~"""leI1t is held to be invalid, the parties
agree that the renainirq provisions shall be deemed to be in full force
am effect as it they had been executed by both parties subsequent to the
expungement of the invalid provision.
IlRl'laB IX
ODlc:E OF L'\H
9.1 It is the intention of the parties to this }\ql'=l,.ent that this
IIgIE!E!llel1t ard the performance pJrSUaIlt hereto and all suits lU'ld special
prooeeclings un:1er this }\ql.,.,ment be oonstrued in accordance with, under
and p.lI"B\Wlt to the law of tile o:mron.oealth of Pennsylvania am that, in
any action, plOOl!6.ling or suit that might be brought arising rot of, in
oonnection with, or by reason of this }\ql.,...,.ent, the law of tile
OamrJrJwealth of Pennsylvania shall be awlicable ani shall govern to the
exclusion of the law of any other fOl\Dll, withoot I"t!'C}ilrd to the
jurisdiction in w.ich any action or special proceeding may be instituted.
'lbe parties further agree that venue for p.IIJXlfile9 of this J\ql.,...,lent shall
be CllJOOerllU'ld cnmty, Pennsylvania.
ARl'Ia.E X
IIJ1lF.I<7a'IClf
10.1 '!his J\q1.....,leIlt represents the entire Jlgreelnent between the
~ am the Consultant. No moditicatial of this hJ......,.ent is valid
unless it is in writin,J and signed by the parties hereto.
JIRl'IaE XI
I ~"1r..f".L'II;'"J
11.1 Prior to receipt by CcITpany and WillianB of radal licenses, this
JIo,j."""..ent is fUlly assignable by the ~ witl1a1t the consent of
<bnsultant ani shall inure to the benefit of any assignee or their legal
suooesso:>r in interest of the oatpanyl thereafter, this J\ql..enMt may be
assigned by Calpmy, t:1.Jt sucta assignnent shall not be effective without
the prior written consent of O:lnSUltant, which OOI1sent will not be
unreasonably withheld. If Consultant refUses to consent then he shall
forfeit all rights to payments under this JIo,j........ent.
11.1.2 'lbe Consultant leo..gllizes that this JIo,j""""lef1t is personal to
the Consultant ani has been executed with him based upon his inHvidual
ownership of the O:ImDrM!alth of ~lvania License No. f=-- which
permits radon testing ani racial reduction in the camoowealth. Based upon
the representations of the Consultant as to the personal natux'e of his
licensure ani of the personal efforts to be made by the c.bnsu.ltant in the
radon testing ani radon reduction efforts of the CcITpany, it is agreed
that any assignnent or attenpted assignnent bv the O:lnsultant of his
o...lI'lUIlWealth of Pennsylvania License No. 'Ie and the duties the
Consul tant has undertaken p.1l'SlWlt to this Aq..=nent shall be null ani
void aR:I shall pemit the CcITpany to irrrrediately terminate this 1Igreerrent.
ARl'Ia.E XII
mIWJWBJ
12.1 '1l1e titles to the paragrclPls of this hJ.ot=I.ent are solely for the
convenience of the parties and shall not be used to explain, modify,
sinplify or aid in the Jnterpretation of the provisions of this hjtot=.leJlt.
IN ~ MIUWJf', the parties ha"e executed this h".ot=Ilel1t this the
1 day of. //lm",), , 199~
Ju:n;::Jl':
<Nt WII.t..l'NI;,:o<<:.
~..C'~.....
9jJ> '(~~(
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;1/ ,) 1
,0. t,)
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$200,000.00
J~,rrl~, ~1IilY!vnnla
llloo:..:.J t!d.. 'I (; /'
c. "E!.ut<
(fi1A.'-W.,
ftR W\lllR Ra::F.~, James Tulthony WilUans, an inr.lividu",l of
Miller's Gap Road, -HeehaniceblJt"CJr l'ennsylvania, (the "Ilorrower") hereby
pranises to pay to RellCX};J Environmental services, Inc. of 4705 'rrindle
Road, Medlani.csblX'g, Ph, a Pennsylvania corporation, and D3ward It. Kellogg
nn:l Mary E.I'. Kellogg of 816 Tulthony Drive, Medlanicsblrg, Ph 17055, as
their interests may 8RJear (the "Payee"), or order, in lawful Jl1OI18y of the
United states of America, the principal mun of '1\10 IlJrIlred 'ItnIsi1nrl
Dollam ($200,000.00) (the "principal stun") withcA.it interest.
'Ihe principal stun shall be due and payable as follCMS:
(1) ~.ncillg Fcbnli\ry 1, 1992 m.-1 cadI sucx:essivc month
there.,fler durirq calcrd,r year enUn;} [):!(;emher 31, 1992 tho sum
ot $3,500.00, for a total of $3B,500.UO;
(2) CamY>..ncirq January 1, 1993 mxl eadl monUI Ulm-e'lfter during
calerdar ye..u- en1b~ December 31, 1993 the stun of $7,500.00, for a
total of $90,000.00;
(3) cam~llcing January 1, 1994 one paymE'J1t of $5,500.00 due OIl
that date and ocmnencing February 1, 1994 Rnd cadl suCY.X'ssive
month thereafter durIng calE'rdar year ending December 31, 1991 the
sum of $3,500.00, for a total of $44,000.00; and
(4) ccmnenci.J~ January 1, 1995 and each successive month
thereafter €'nlliq E'.ruing Sept.enber 30, 1995 Ule sum of $3,500.00
and on OctOOer 1, 1995 0IlE! payment in the aJOClunt of $4,050.00, for
a total of $35,550.00.
'lhis Note may be prepaid in whole or in part at any tlnlO and fran
time to tirre. Payments hereunder shall he Illo'lde c/o lliward ~ Y.ellogg,
4705 Trindle Rood, Mechani~, Fennsylvania 17055 or at such othe.r
location as the holder of thIs Note IlIiIY designate to the Ilorrower.
'Ille occurrenoe of any of the follCMlng events shall constitute an
"Event of Default":
(1) Failure of IlorI"OWl"r to pay any amount payable h01-eurrlet'
within fifteen (15) bunl.rlCn!'l d<lYs of whf-"! due;
(2) Failure of E1orrowcr to observ(' and perform any roverk1nt or
agreenll'>.fjt conta\no:l III UIC Jlqre<'mcnt dated !V,~".ILi:.'~.j'L'li_
BI1DI19 the parties.
Upon UIC OL-ctlrrence of An "Event of l-efault", the rayee, mny at
his ~ion declare tJle entire bcllance of principBl of U1is Note to be
-...,.........~ ..~"""""'~~_....,"'~',',' "',1. 1.,;....J,t:"'_~-U1l.."..,."...~_ .-wI""'. 11'.__.,._,
BXIIIBIT "0"
'J
(b) Paragraph 2.3.3 n (2) (4) of the Agreemnnt and
subparagraph (iI) of the said Promissory Note shall be amended and
replaced by the following:
(iI) COlnJncncing on Januar.y 1, 1995, and each successive
month thereafter ending on Mar~h 31, 1996, the sum of
't'lIREE 'l'1I0U5AND FIVE IIUNDHED DOLLARS ($3,500.00) and on
April 20, 1996, one payment in the amount of FOUR
TlIOUSl\lID FIF'l'Y OOf,r.^HS ($4,050.00) r;hall be paid, for a
total of li'LF"l'Y-S!X 'l'1I0USl\l1D rIVE IIUllDRED FI.1i"ry. DO[.r.I\HS
($56,550.00) .
(e) 'rhis l\llIondmnnt. will reduce th,., halnn.:;" of tho purchaon
pric') duo Kellogg Envirol\llIcntn.l. serviens, 1nc., and/or Edward V.
Kellogg nnd M.:Iry Fl. Kell.ogg, pursuant to said Agreement dated
November 8, 1.991 and promissory !lote dut.eel Jnnuary 1, 1992, by the
total sum of TWEN'rY-SEVEN 'l'llOUSAND DOLI,ARS ($27,000.00) and
paragraph 2.3.3(B) (2) shall be deemed amended hereby and reduced by
suid amount. The parties hereto agree that all of the terms and
condItions of the l\greement dated November B, 1991, and promissory
Note dated January 1, 1992, not amanded uS herein provided, shall
remain the same.
2
'.. .. \.. "
COMMONWEALTH OF PENNSYLVANIA
COUNTY OF Co l'I)ocd (\ nc.l
.
: os.
:") nc.\ 00" , ,
ON THIS, the ia.- day of ~ 1993, beforn me, n lIotary
I'ublic, the undorsigncd of ricar, personally appeared MARV E.
. KELLOGG, known to me (or saUsfnctor i ly proven) to be the person
whose name is subscribed to the within instrument, IInd acknowledge
that he executed the snme for tho purpones therein contained.
IN WITNESS WHEREOF, I have horcunt:p set my han~\ nnu of f I cial
snnl.
.
'-fu\;'t..~ (\ ,f) 0 - D~ \. '1 ~)
Notary Public
t--- -
Hy Com i~J\l^l~rl:~r'tNlIIc
Camp ."11, Cl!I!loorland eMr
My~~~~p~cSMard111, 1.
COMMONWEALTH or PENNSYLVANIA
COUNTY OF c..u1Y)~\o..nd
_:1 nc.\ nDr'; \
the 5.J_ dny of ~\,
99.
1993, before me, a lIotllry
ON THIS,
PUblic, the undersigned officer, personally appeared KELLOGG
EIIVIRONMENTAL SERVICES, INe., by EDWARD V. KELLOGG, President, and
Mary E. Kellogg, Secretary, known to me (or satisfactorily proven)
to be the person whose name is subscribnd to the within instrument,
and acknowledge that he OXl"cutcd the snme for the pur.poses there.in
contained.
IN WITNESlJ WIlP.IlEOF, I hilvc IWL'Nlnto snt my h"n<\ and officIal.
seal.
~b1\~f)a .-l1().l;&
IIotnry Public
My
CO
NOJAAW. sm
I<A TIIlElH A. DAVIS, ~ '~IC
~p HiI~ CUmIielIil1d c.nr
Iltw tpnIsSlan CllPInI M1\t111. 1.
"., . 1'IItV1,':i1',:!! J,l, '\11 .'~I.l,/~'I
1/..., '.' I [,,' I _' I';
I'~:"~' "'".,~,I";'il:~~;i~;il\M!"I'~0'~"_"~~"i':"~'~: ',1 'i';<'~' '1<'"
. , ,~). .'rt~',\Io;.~.\ I~:~ "":"~~".rl'r.:, ,..I~ I~,:,,""~.i\:,," ""...~I...i",
I"~"'.~"" '.,""" ..",.1".',,,. . ,_~, ~'I"IJ~,." ,oj' ....' ':','
.
~
.
.~
'INNSYLVANIA
~
COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF ENVIRONMENTAL RESOURCES
Bureau of Radiation protection
POAt Office Box 8469
JlElrriAhurq, PA 1'1105-8469
September 22, 1993
(717) 783-3594
~rtified Mail
Mr. James A. Williams
williams, Inc. DBA/Kellogg Environmental
services
4705 Trindle Road
Mechanicsburg, PA 17055
Dear Mr. Williams:
'fhe certified individual testing and mitigation agreement
we have on file between Mr. Edward Kellogg and yourself, is no longer
valid. Mr. Kellogg'S testing and mitigation certifications
were not renewed and expired on July 19, 1993.
Your firm was required to notify us of the loss of your
certified individual within five days as specified in 25 PA. Code Ch.
240, ~ 240.102(b). And, most importantly, as specified in 25 Pa.
Code Ch. 240 ~ 240.102(b), until you supply our Department with a
certified testing and mitigation agreement between yourself and a
certified testing and mitigation individual, your certification for
both testing and mitigation have lapsed and are void. You must
therefore ~~dia~l~C~aH~ all radon testing and mitigation
activities until your new certified individual agreement is
acknowledged in writing as being received and accepted by our
Department.
Please submit your new certified testing and mitigation
individual agreement to our Department within 5 days and use the
enclosed at a minimum guidelines to ensure that your agreement will
meet all requirements.
Should you have further questions or concerns please
contact me.
sincerely,
t;.~L-, 0Jb-.~
Ke 1 ley M. lIaney
Radiation lIealth Physicist
Radon I)ivision
An Eqlff'll Opportunlty/Affirmallve Action Employ,..,
Recycled PII""r .~
EXHIBIT lip"
GARGASZ EXCAVATING, INC.
P.U. Box 148 · rhHlpsburg, I'A 16866
<eH),342.1281
FAX (814) 342.728fS
.7un. 11, 199'
. .
. I
8UIJ8eTI tett.r 01 Intro~u~tion
Dear Prospeotiv. cuntom~r:
Olr,..1 lx~avltinq toe. 19 In .~c.vatin' I ,.trol.u.
inlhlUtlon t,'c-mp.ny involve!! In all fields I'11aUn, \!o the
petrol.um lndultry.
w. hive in our e~ploym.nt prot...ionu~ D.t..~. C~RTIrlED 1"'TALLI~'.
w. .110 'llIploy rrcteuiQnd. in all trades of the conltruotlon
indu.tri.. .
Our credenU.la an primut./y In tht petrol." ';,\du.hr. To ,lv.
ju.t . few IXI",p1.., WA have compltted tho rCl~ ." ',' of .ppro!C1Il1.,.lr
no fu.l tlnk., comrlOt.vd 41 mlljor rllIIoc:!oh, (....,. , .\ Clon.lated 0' not
only the rAlIIov'l Ind inlt~llation of the t.nk~, but .1.0 plpin,
involv.d) a. w.l1 al dlwpensers I canopy inAt'llatlon, On' of thl
l'II'lor rtmod,l. 1II111ntloned "'I havI Ilao totlUy r.conltl'UoU4 the
bu Uin,.. All of the menUoned up.etl of worll hive b.,n
oo~pletld in the la.t 12 montha.
At thi. ~lm' I woul~ al.o like to mention that we work v.ry Gloa.lI
wl\h anll have a au~erb bu.in'~8 ~61ationltl1p with an tnvlronment.
company.
oary'" ExclIvatlnq Ino. is " conlehntiou!l company conolrn.d with
mlk n9 a.rvica to the customer R .1 priority.
t have attach.d . lilt of ~y a.tlarind eugtom~r.. Al.G inoluded 1.
ft oopy of our eo~p.ny'. certirioation document. Wh.n you ar. in
n..1I of .ore inlonaHon pl.... qiv. our cOlllpany a oan at tha
n\lMel' U.h4.
~lap.e~f~'ly .ubmltt.~,
Dlvld I. Q9t1'..
/ '
fnll n<; ,''''.1 IIEl' I;>:';:' 1ll:IIELllnll n;~"r:lnrF~ rr lEI "'.1'71'~'l.'(.-~"OO 1t"lf1'\ rln
" II . \. It . , r. U .lUl1 4 4 IN"'" --
,( OAROASZ EX9AVATING, INC. ~:"I) ~fI\,
P.O. Bo)( 146 . Phlllp!lburg. PA 16866 'ti\<'Jtl)
(814) 342.7261
"AX (814) 842.7285
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Att.. "~. ..~..rl'~
H'lo~t. 01110. 01 Weon.slo Develop..at
Cl J .'T..~.a' c.nt..
10 M Mark.t 'tutl'
,,"",,,,,, 'A 11101
.VIJIOT. .rof."l '771
,It. .....l.tloD
..rvlt. '.oklu9 00. .it.
11.1.11.' t. o...roa .\
1.~.II'\lr,,'A 17S0S
DI.r Mr. .b..tf..t
tilt I.U.vlll, it our propolll for ua.vb, dl ,......".
._,..101' fr.a tho .ubj.ot .it.. W. bay. vial'.. ~~. .1'. ,.4
~.vlov.4 \bo .00~'Dt. proplr.. by Holb" Alto.I,""
II.U.. al too The b..1I'4o"l .."dU. llta'UIII Oil ''''0 .AU
vll1 be .,.0T,d *to. ,~. nl\' 'ft~ 111,0.la .t In ooapllll'. .&\b
'11. fa '14 Ita "'9\lU\loll.. n... 8lClUvlU.. .Ul taClI..' 1.,
p.elll"t tllt ...U ClU_lItlth., plUlpiD; an4 4hpo..l of \b' w.."
fUll 0 1 'D. .otor Oil, ..movI' .ad dlft~os'l or \be ..b"'" an'
lab ,.._11' tll. .el .o~t.Ialn~ "II.,t,.
lb. On'.r9roun4 '\or.,. ,aD. vtll b. "'.OT'O tDe laJ eo.,..I'.'"
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TEL"I' 2.16 5609
JOHNSTON
SPE CTr~ A------------------------.-----
LABORArORIES
P,OI
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James Anthony Williams and Real Estate In the Court of Common Pleas of
Environmental Services Inc., Successor Cumberland County, ?ennsylvania
Corporation to Tony Williams, inc. No. 94-~J55 Civil 'ferm
vs Complaint in Civil Action Law
Edward V. Kellogg and Mary E. P. Kellogg and Notice to Defend and
Kellogg Environmental Services Inc. Claim Rights
Johnston Spectra Laboratories inc. and
Johnston Laboratories inc.
Philip Baughman, Deputy Sheriff, who being duly sworn according
to law, says on S\!ptember 26, 1994 at 20.10 o'clock P.M., E.D.S.T., he
served true copies of Complaint in Civil Action Law and Notice
to Defend and Claim Rights, in the above entitled action upon the
within named four defendants, to wit. Edward V. Kellogg, Kellogg
Environmental Services, Inc., Johnston Spectra Laboratories Inc.
and Johnston Laboratories Inc., by making known unto Edward V.
Kellogg for himself and Kellogg Envioronmcntal Services, Inc.,
Johnsotn Spectra Laboratories Inc. and Johnston Laboratories Inc.
at 4705 East Trindle Road, Mechanicsburg, Cumberland County, Pennsylvania
its contents and at the same time handing to him personally the
said true and attested copies of the same.
Wesley Cook, Deputy Sheriff, who being duly sworn according
to law, says on September 27, 1994 at 12:39 o'clock P.M., E.D.S.T.,
he served a true copy of Complaint in Civil Action Law and Notice
to Defend and Claim Rights, in the above entitled action upon one
of the within named defendants, to wit. Mary E. P. Kellogg by
making known unto Mary E. P. Kellogg at 816 Anthony Drive, Mechanicsburg,
Cumberland County, Pennsylvania, its contents and at the same time
handing to her personally the said true and attested copy of the
same.
Sheriff's Costs:
Docketing
Service
Surcharge
So anSWerllr '/
, '
. ,'. ~ """, /~ .....'''- /}
30.00
14.56
10.00
54.56
R.
Pd. by Atty.
9-28-94 by
Thomas Kline, Sheriff
~p'~
Deputy She~iff Ba ghman
Sworn and suhscribed to before me
by
this
(I...
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""I ..-
day of (j,o',(,,_
1994,
A.D.
,
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(, }J'l"!',, (1;iJ'}
prothonotar'y
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I. pAILUR. 0' PLEADING TO CONFORM TO LAW
2. The averments contained in paragraph 1 above are
incorporated herein by reference as though more fully set forth
herein.
3. The Plaintiffs' Complaint has been filed as a
civil Action at Law.
4. Count I of the Plaintiffs' complaint, which
purports to be a Count av~rring Breach of contract, seeks as
relief, among other things:
A. Preliminary and permanent injunctive relief
enjoining Defendants' continued violation of
the Non-Competition clauses contained in the
Sale of Assets Agreement and the consulting
Agreement; and
B. Preliminary and permanent injunctive relief
enjoining Defendants from associating with
any business which competes with Plaintiffs
in the restricted territories; and
C. Preliminary and permanent injunctive relief
enjoining Johnston spectra Labs, Inc. and/or
Johnston Labs, Inc. by or under the
ownership, control, direction or management
of Defendants, Edward V. Kellogg and/or Mary
E.P. Kellogg, from performing, soliciting or
subcontracting pick-up of water testing
samples and airborne and water-borne radon
test samples and radon testing and
remediation work in the restricted
territories; and'
D. Preliminary and permanent injunctive relief
enjoining Defendants, Edward V. Kellogg
and/or Mary E.P. Kellogg, and any person
under their direction or control from
soliciting, bidding, or contracting or in any
other form or way of using, trading or
infringing upon the name "Kellogg
Environmental Services, Inc." or any
derivation thereof.
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5. Count II of the plaintiffs' Complaint, which
.
purports to be a Count averring Unfair competition/corporate Name
Infringement, seeks as relief, among other things:
A. Preliminary and permanent injunctive relief,
enjoining Defendants from using or
transacting any business in the name of
"Kellogg Environmental services, Inc." and
infringing upon and diluting the business and
goodwill of Plaintiffs.
6. The law in Pennsylvania states that, if the
Plaintiff is requesting permanent injunctive relief, the case is
governed by the rules controlling actions in equity. See, e.g.,
Soia v. Factorvville Soortsmen's Club, 522 A.2d 1129 (pa. Super.
1987) .
7. The Plaintiffs in the ~nstant case have improperly
sought equitable relief in a complaint at Law.
WHEREFORE, the Defendants pray that the Plaintiffs'
Complaint be dismissed for lack of conformity to the law.
II. FAILURE TO CONFORM TO RULE OF COURT
8. The averments contained in paragraph 1 above are
incorporated herein by reference as though more fully set forth
herein.
9. The Plaintiffs' Complaint has been filed as a
civil Action at Law.
"
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10. Count I of the Plaintiffs' Complaint, which
purport. to be a Count averring breach of contract, .eek. as
relief, among other things:
A. Preliminary and permanent injunctive relief
enjoining Defendants' continued violation of
th~ Non-Competition clauses contained in the
Sale of Assets Agreement and the Consulting
Agreement; and
B. Preliminary and permanent injunctive relief
enjoining Defendants from associating with
any business which competes with Plaintiffs
in the restricted territories; and
C. Preliminary and permanent injunctive relief
enjoining Johnston Spectra Labs, Inc. and/or
Johnston Labs, Inc. by or under the
ownership, control, direction or management
of Defendants, Edward V. Kellogg and/or Mary
E.P. Kellogg, from performing, soliciting or
SUbcontracting pick.-up of water testing
samples and airborne and water-borne radon
test samples and radon testing and
remediation work in the restricted
territories; and
D. Preliminary and permanent injunctive relief
enjoining Defendapts, Edward V. Kellogg
and/or Mary E.P. Kellogg, and any person
under their direction or control from
SOliciting, bidding, or contracting or in any
other form or way of using, trading or
infringing upon the name "Kellogg
Environmental Services, Inc." or any
derivation thereof.
11. Count II of the Plaintiffs' Complaint, which
purports to be a Count averring unfair competition/corporate name
infringement, seeks as relief, among other things:
A. Preliminary and permanent injunctive relief,
enjoining Defendants from using or
transacting any business in the name of
"Kellogg Environmental Services, Inc." and
infringing upon and diluting the business and
goodwill of Plaintiffs.
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12. The Pennsylvania RUles of Civil Procedure
governing special relief/injunctions is Pa. R.C.P. 1531, and is
an Action in Equity.
13. The Plaintiffs in the instant case have improperly
sought equitable relief in a complaint at Law.
WHEREFORE, the Defendants pray that the Plaintiffs'
Complaint be dismissed for lack of conformity to the Pennsylvania
Rules of civil Procedure.
III. INSUFFICIENT SPECIFICITY OF PLEADING
14. The averments contained in paragraph 1 above are
incorporated herein by reference as though more fully set forth
herein.
15. The Plaintiffs have averred in paragraph 51 of its
Complaint that the Plaintiffs are entitled to injunctive relief
under Pennsylvania Consumer Law and Pennsylvania Associates Code,
15 Pa. C.S. S1303(e).
16. After reasonable investigation, the Defendants are
unable to identify the "Pennsylvania Consumer Law" averred by the
Plaintiffs .
17. The Complaint fails to set forth with
particularity the entitlement to injunctive relief on the part of
the Plaintiffs, averred in Plaintiffs' Complaint Count II, under
the "Pennsylvania Consumer Law".
18. 'fhe Complaint fails to provide proper notice to
Defendants of the above-averred entitlement.
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19. This Court should requdre Plaintiffs to specify
with particularity the allegations relating to the above-averred
entitlement to relief.
WHEREFORE, Defendants request this Honorable Court to
sustain their Preliminary Objections and require the Plaintiffs
to file a more specific pleading.
IV. LACK OP CONFORMITY TO LAW
20. The averments contained in paragraph 1 above are
incorporated herein by reference as though more fully set forth
herein.
21. Each Count contained in the Plaintiffs' complaint
.
seeks relief from this Honorable Court in the form of a demand
for punitive damages.
22. In accordance with section 908 of the Restatement
of Torts 2d, which the Pennsylvania Courts have expressly
adopted, punitive damages may be awarded against a party to
punish for outrageous conduct.
23. The Plaintiffs' averments regarding the Defendants
alleged actions and/or inactions do not rise to the level of
outrageous behavior, and do not support a cause of action
allowing for the application of punitive damages.
24. The Plaintiffs' Complaint fails to state a cause
of action aqainst the Defendants which would allow for the
application of punitive damages.
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JAMI. ~HOHY WILLIAM' an4
RIAL ISTATI INVIRONMINTAL
SIRVICIS, INC., 8UCCISSOR
CORPORATION TO TONY WILLIAMS,
INC. ,
IN TN. COURT or COMMON PLIA.
CUMBBRLAND COUNTY, PllOI8YLVJUlIA
Plaintiffs
v.
NO. 7'/,' d ~-.(
CIVIL TIU
IDWARD V. KELLOGG; MARY
I.P. KILLOGG; KELLOGG
INVIRONMENTAL SERVICIS, INC.;
JOHNSTON SPECTRA LABORATORIES,
INC.; an4 JOHNSTON
LABORATORIES, INC.,
Defen4ants
CIVIL ACTION - LAW
JURY TRIAL DEMANDID
NOTICE TO DEFEND AND CLAIM RIGHTS
You have been sued in Court. If you wish to defend against the
claims set forth in the following 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 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 LAWVER AT ONCE. IF
YOU DO NOT HAVE A LAWVER OR CANNOT AFFORD ONE, GO TO OR
TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE
YOU CAN GET LEGAL HELP.
Court Administrator, Fourth Floor
Cumberland County Court House
1 Courthouse square
Carlisle, Pennsylvania 17013-3387
Telephone: 240-6200
Da te &fJ.J", ", I' 'y;' 'I
TRUE COPY FROM RECORD
In Tll'stlf'wny""lv .:of, I !'1i>r~ 1,1'1., '.cl ""~ rlJM
MIIJ tilt ::"'t ;ll ...1,(1 CO<J.;,t Cvn,~! ~, PI.
ThIS. .J. . ,.dIIy u4~~~19_'2_~.__
~ (, -Jl<,)~, ,_,h~L)'
Prothonoll'V
By:
J h F. Lyons squire,
t rney for ~ laintif~
/' . Box 963 _._____________
HarriSburg, PA 17108
(717) 238-4776
0.8.1 23859
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litigation and successor corporation to the right to use the
corporate name, Kellogg Environmental Services, Inc..
4. Defendant, Edward V. Kellogg, is and adult individual
whose last known address is 816 Anthony Drive, Mechanicsburg,
Cumberland County, Pennsylvania 17055.
5. Defendant, Mary E.P. Kellogg, is and adult individual
whose last known address is 816 Anthony Drive, Mechanicsburg,
Cumberland County, Pennsylvania 17055.
6. Defendant, Kellogg Environmental Services, Inc.
(hereinafter referred to as KES), is a Pennsylvania Business
Corporation, with its last known registered office located at 4705
East Trindle Road, Mechanicsburg, Cumberland County, Pennsylvania
17055.
7. Defendant, Johnston Spectra Laboratories, Inc.
(hereinafter referred to as "Johnston"), is a Pennsylvania Business
Corporation whose last known business address is 4705 East Trindle
Road, Mechanic~burg, Cumberland County, Pennsylvania.
8. Defendant, Johnston Laboratories, Inc., (hereinafter
referred to as "Johnston Labs") is a Pennsylvania Business
Corporation whose last known registered address in Pennsylvania ia
4705 East Trindle Road, Mechanicsburg, Cumberland County,
Pennsylvania.
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9. Plaintiffs believe, and therefore aver, that Defendants
Johnston and Johnston Labs are solely or partially owned by
Defendants Kellogg, either individually or jointly.
10. Alternatively, Plaintiffs believe and therefore aver that
Defendant, Edward V. Kellogg, is an employee, officer, director,
agent, consultant, shareholder, manager or in control of the
operations of Defendants, Johnston and Johnston Labs.
11. On or about November 8, 1991, Plaintiff Williams, and
Defendants Kellogg and Defendant KES entered into a written
Agreement entitled Sale of Assets, Non-Competition and Independent
Contractor Agreement (hereinafter referred to as "Sale of Assets
Agreement", a copy of which is attached hereto and incorporated by
reference thereto and marked as Exhibit "A").
12. Under the terms of the Sale of Assqts Agreement,
Plaintiff Williams was to purchase and Defendants Kellogg were to
sell, inte~ AliA, all of the assets, tangible and intangible, used
exclusively by the business owned by Defendants Kellogg and known
as Kellogg Environmental Services, Inc..
13. The sale and purchase of assets included all such assets
related to the entire business activity of KES as to its
residential real estate water sample piCk-up and water and airborne
radon testing inClUding but not limited to radon testing, water and
septic system certifications, house inspections, environmental
audits, termite inspections, contracting including painting,
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maintenance, concrete slabs and electrical, sump pit/sump pump
installation and repair, asbestos removal, hazardous waste
remediation and tank supports services which Defendants operated as
a division of Kellogg Environmental services, Inc. (The assets and
business services set forth herein are collectively referred to as
"Radon Testing and Radon Reduction" in paragraph 1.1 of the Sale of
Assets Agreement and are hereinafter referred to as "radon testing
and radon reduction").
14. In addition to the assets set forth in Paragraph 12
herein, Plaintiff Williams purchased and Defendants Kellogg and KES
sold, all their rights and interest in the name "Kellogg
Environmental Services, Inc." and any derivation thereof pursuant
to paragraph 1.1.8 of the Sale of Assets Agreement.
15. At the time the parties entered into the Sale of Assets
Agreement, Defendant Edward V. Kellogg was the holder of a
Commonwealth of Pennsylvania Radon Testing and Remediation License,
number 96.
16. On or about January 1, 1992, Plaintiff, Tony Williams,
Inc., and Defendant, Edward V. Kellogg, entered into a written
Independent Contractor A~reement (hereinafter referred to as
"Consulting Agreement"). A copy of the "Consulting Agreement" is
attached hereto and incorporated herein by reference and marked as
Exhibit "8".
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17. On or about January 1, 1992, in order to secure the
payment of the balance of the purchase price owed to Defendants
Kellogg and KES under the terms of the Sale of Assets Agreement and
Consulting Agreement, Plaintiff Williams executed a Promissory Note
(hereinafter "Note") in the amount of $200,000.00. (A copy of the
Note is attached hereto and marked as Exhibit "C").
18. On or about April 2, 1993, Plaintiff Williams and
Defendants Kellogg and KES executed an Amendment to the Sale of
Assets Agreement and the Note adjusting the payment terms and
reducing the total amount of the purchase price but preserving all
other terms and conditions of the Sale of Assets Agreement and the
Note.
19. Pursuant to paragraph 4.1.16 of the Sale of Assets
Agreement, Defendants Kellogg and KES, jointly and severally, and
as the shareholders and owners of all the issued and outstanding
shares of Defendant, Kellogg Environmental Services, Inc., agreed
not to compete, either directly or indirectly, with Plaintiffs in
any business involving radon testing and radon reduction, as
defined in the Agreements, in the counties of Dauphin, cumberland,
Perry, Adams, Lancaster and York, Pennsylvania (hereinafter
referred to as the "Restricted Territories").
20. The Sale of Assets Agreement, Consulting Agreement,
Promissory Note and the Amendment to Sale of Assets Agreement are
hereinafter collectively referred to as the "Agreements".
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21. Pursuant to paragraph 3.1 of the Consulting Agreement,
Edward V. Kellogg, individually, agreed not to engage in any radon
testing and/or radon reduction activities as defined in the
Agreements under Commonwealth License No. 96 during the time of the
Agr~ement in the restricted territories.
22. Pursuant to paragraph 3.2 of the Consulting Agreement,
Edward V. Kellogg, individually, agreed not to compete, either
directly or indirectly, or affiliate in any manner with a business
competing with Plaintiffs for a period of thirty-six (36) months
after termination of the agreement, for whatever reason, in the
restricted territories.
23. Pursuant to paragraph 3.4 of the Consulting Agreement,
the value of the covenant not to compete was set by agreement of
the parties at $129,000.00.
24. Pursuant to the terms of the Agreements and Promissory
Note, as amended, Plaintiffs have made the agreed monthly payments.
25. Pursuant to the terms of the Sale of Assets Agreement,
Promissory Note and Consulting Agreements, as amended, the
Plaintiffs have fulfilled all their pre-conditions and performed
all the Obligations.
26. On or about July 19, 1993, Plaintiffs believe, and
therefore aver, that Defendant, Edward V. Kellogg, permitted the
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radon testing and mitigation certification, No. 96, to expire. (A
copy ot the Notification from DER is attached hereto and
incorporated by reference thereto and marked as Exhibit "D").
27. Plaintiffs believe, and therefore aver, that contrary to
their covenants not to compete, Defendants, Kellogg, 8i ther jointly
or individually, have competed or associated themselves, either
jointly or individually, with businesses competing with Plaintiffs
in the restricted territories.
28. Plaintiffs believe, and therefore aver, that Defendants,
Kellogg, have through their ownership of the shares of stock ot
Johnston Spectra Labs and/or Johnston Labs or through their control
over the management direction and operation of Johnston Spectra
Labs and/or Johnston Labs have directly and indirectly competed
with Plaintiffs in the restricted territories by conduoting
residential water sampling pick-up and testing which constitute
radon testing and reduction services under the terms of the
understandings amongst the parties.
29. Contrary to the terms of the written agreements, the
Defendants, Kellogg, either jointly or individually, directly or
indirectly, have further competed with Plaintiffs as follows:
(a) On or about June 11, 1993, Edward V. Kellogg
Rubmitted a bid for site remediation work as
project manager for Gargasz Excavation, Inc..
(1\ copy of the bid is attached hereto and
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incorporated by reference and marked as
Exhibit "E");
(b) On or about July 27, 1993, Defendant, Edward
V. Kellogg, either individually or under the
guise of Johnston Spectra Labs and/or Johnston
Labs, which he owns, directs, controls or is
affiliated with, performed radon testing and
remediation work at Gettysburg College, Adams
County, Pennsylvania. (A copy of the Closure
Report is attached hereto and incorporated
herein by reference and marked as Exhibit
"F"); and,
(c) On or about March 10, 1994, Defendant, Edward
V. Kellogg, either individually or under the
guise of Johnston Spectra Labs and/or Johnston
Labs, performed water sampling pick-up and
testing for property located at 12 Dewalt
Drive, Mechanicsburg, Cumberland County,
Pennsylvania. (A copy of the test report is
attached hereto and incorporated herein by
reference thereto and marked as Exhibit "G").
30. Contrary to the terms of the written agreement and the
rights transferred to Plaintiffs to all right and interest in the
name Kellogg Environmental Services, Inc., Plaintiffs believe, and
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therefore aver, that the Defendants did solicit and continue to
solicit business and perform radon testing and reduction services
using the name "Kellogg Environmental Services, Inc.".
31. ContrHry to the terms ot the written agreements,
Plaintiffs believe, and therefore aver, that Defendants either
solicited, bid for contracts and/or were awarded contracts using
the name Kellogg Environmental services, Inc. as follows:
(8) Downingtown Area Regional Authority Project
for removal and replacement of storage tank
system on or about December 16, 1993. (A copy
of subcontractor proposal dated December 16,
1993, is attached hereto and incorporated
herein by reference and marked as Exhibit
"H"); and,
(b) On or about January 12, 1994, bid and received
the contract for the preparation of Spill
Prevention Discharge and Elimination Systems
Permit for the Greater Buffalo International
Airport.
32. Under the terms of the written agreements, Plaintiffs are
entitled to preliminary and permanent injunctive relief whether or
not Plaintiffs prove actual damages.
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33. Under the terms of the written a9reements, Plaintiffs are
entitlsd to indemnification from Defendants for all costs and
expenses including le9al fees.
COUNT I. BREACH OF CONTRACT
34. Plaintiffs incorporate herein by reference thereto the
averments of their Complaint as set forth in paragraphs 1 throu9h
33.
35. From January, 1993 through and includin9 January, 1994,
Plaintiff made the required monthly payments to Defendants in the
amount of $3,500.00.
36. Contrary to their obligations, Defendants competed both
directly and indirectly within the restricted territories.
37. contrary to their obligations and the terms of the Sale
of Assets A9reement and Consulting Agreement, Defendant, Edward V.
Kellogg, permitted Commonwealth of Pennsylvania Radon Testing and
Remediation License number 96 to expire and become unavailable to
Plaintiffs as of June 19, 1993.
38. Contrary to Plaintiffs' right and interest in the use of
the name Kell099 Environmental Services, Inc., Defendants have
solicited, bid, sought bids and/or performed radon testin9 and
reduction services within and without the state of Pennsylvania
under the trade name "Kellogg Environmental services, Inc.".
39. Despite demand, Plaintiffs believe and therefore aver
that Defendants, either individually or jointly, directly or
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indirectly, continue to compete within the restricted territories
or continue to solicit, bid, and perform radon testing and
reduction services, as defined in the Agreements, within the
restricted territories under the guise of corporate entities eit,her
entirely or partially owned by Defendants Kellogg contrary to their
agreements not to compete and contrary to Plaintiffs' business
rights and interests.
40. Under the terms of the written agreements, Plaintiffs'
obligation to pay the monthly sums terminated upon the Defendant's
permitting License number 96 to expire.
41. Under the terms of the written agreements, the value of
the non-compete clauses in the Consulting Agreement was agreed to
be $129,000.00.
42. The Defendants have received payments from June 1, 1993
to January 31, 1994 amounting to $24,500.00 to which they were not
entitled.
43. By reason of the breach of Defendants, Plaintiffs have
suffered damages and will continue to suffer damages in the nature
of loss of revenues, loss of market position and Business Trade
Name confusion.
lIHIRII'ORI, Plaintift's request Judgment against Defendants,
Edward V. Kellogg, Mary E.P. Kellogg, Kellogg Environmental
Services, Inc., Johnston Spectra Labs., Inc. and Johnston
Laboratories, Inc., jointly and severally as follows:
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(e) Judqment in the amount of $153,500.00 plus
interest, costs of suit and reasonable
attorney's fees;
(b) Preliminary and permanent injunctive relief
enjoining Defendants' continued violation of
the Non-Competition clauses contained in the
Sale of Assets Agreement and the Consulting
Agreement;
(c) Preliminary and permanent injunctive relief
enjoining Defendants from associating with any
business which competes with Plaintiffs in the
restricted territories;
(d) Preliminary and permanent injunctive relief
enjoining Johnston Spectra Labs, Inc. and/or
Johnston Labs, Inc. by or under the ownership,
control, direction or management of
Defendants, Edward V. Kellogg and/or Mary E.P.
Kellogg, from performing, soliciting or
subcontracting pick-up of water testing
samples and airborne and water-borne radon
test samples and radon testing and remediation
work in the restricted territories;
(el preliminary and permanent injunctive relief
enjoining Defendants, Edward V. Kellogg and/or
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Mary E.P. Rellogg, and any person under their
direction or control from soliciting, bidding,
or contracting or in any other form or way of
using, trading or infringing upon the name
"Kellogg Environmental Services, Inc." or any
derivation thereof;
(fl Enter an award for compensatory and punitive
damages in excess of $20,000.00;
(gl Order an accounting of all profits received by
Defendants in violation if their written
agreelnents; and I
(h) Such other relief as the Court deems
appropriate.
QQVNT II. UNfAIR COMPETITION/CORPORATE NAME INfRINGEMENT
44. The averments contained in paragr.aphs 1 through 43 are
incorporated herein by reference thereto.
45. The Defendants have continued to transact business,
borrow or collateralize loans and enter into business transactions
using the trade name "Kellogg Environmental Services, Inc.".
46. Said use by Defendants of the trade name "Kellogg
Environmental services, Inc", has caused confusion with Plaintiff's
Worker'. Compensation Insurance carriers and Rating Bureau.
47. Said use and continued use of the trade name "Kellogg
Envlronmental Services, Inc." infringes upon the rights and is
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causing and is likely to continue to cause confusion, mistake
and/or deception as to the source or origin of the services offered
to be provided amongst the public.
48. Said continued use by Defendants of the corporate name
"Kellogg Environmental Services, Inc." is likely to cause confusion
in Plaintiff's competitive area and amongst Plaintiff's creditors
and in other business relationships.
49. Despite demand, Defendants have willfully, repeatedly and
without justification continued to solicit, contract and transact
business using the t~ade name of Plaintiff for the sole purpose of
causing injury to Plaintiff's business and goodwill.
50. As a direct and proximate result of the aforesaid actions
of the Defendants, Plaintiffs have suffered and will continue to
suffer immediate and irreparable harm.
51. Plaintiffs are entitled to injunctive relief under
Pennsylvania Consumer Law and Pennsylvania Associates Code, 15
Pa.C.S. Sl303 (el.
WHEREFORE, Plaintiffs demand Judgment and relief against
Defendants, Edward V. Kellogg, Mary E.P. Kellogg, and Kellogg
Environmental Services, Inc., Johnston Spectra Labs, Inc. and
Johnston Laboratories, Inc. as follows:
(a) Preliminary and permanent injunctive relief,
enjoining Defendants from using or transacting
any business in the name of "Kellogg
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SlUB Off A'lSRIB, ~'''''r.luf
AND ~ mf.llW!ltR "-~-n1'
'1HIS ""->r.null' is made as of 1V<K1"-lLn. 'a , 1991, bebleen
Y4IllOlJ.J EnvL.........,lal services, Inc. of 4705 TriRlle Road, Mechanicsb.1rq,
PA ("KollCllJ:J" or "Seller") am JlIIIE8 I\nt:hc.ny willilmB, an individual of
Miller Gap Road, Mechanicsburq, PA (''WillI_'' or "flIyer") ard D:Jwnrd It.
Y4Ulogg and Jluy B.P. Jfellogg of 816 Anthooy Drive, MechanicsI:m';J, PA
l7055, sanetimes referred to as "Kellogg" or "Seller", joIntly and
severally and as shareholders, offioers ani Dira."1:ors of Kellogg
Environmental Services, Inc.
Wl'lNmSEDI: 111e parties hereto, inteming to be legally l:x:1.1nd
hereby agree to the follCMing tenrs ard oomitions:
ARrIClF. I
ASSEl'S 10 BE RJR(11l\Sm.J'lmL~.~Fm l.J.MI.'lM'ICHl
1.1. 1-.....- to be ~. Subject to the terns ard conditions of this
Jlgreement, v.sllogg will r::omey, transfer, assign, sell ard deliver to
Williamg at Closing, by bill of SIIle, erxlorsement, assignment, or other
apprcpriate instruments, free ard clear of all lien"!, claims or
encuntlranoes, am WilliaJ1W3 will purd1ase all of v.sllogg's right, title and
interest in the follCMing t:an}ible ard intar-gible assets used exclusively
in <.AAdl8Ct:ion with the rosIness knc:M1 as v.sllogg Enviroranental Services,
Inc., MechanicsWI'g, Pennsylvania. Notwithstanding anything to the
contrary herein contained in this lIg"",,"ent, it is understood and agreed
between the parties that all tarqible ard Intangible assets hereinafter
described to be purd1ased by 9..\yer fran Seller and any anI all duties ard
ooligations to be undertaken by 9..\yer as part of the transactIons
contEllplated by the parties hereto relate solely to the radon testing ard
radon reduction, water and ceptlc :::,'stm =rtifications, hane inspect.ions,
environnental awit, termite inspections, contracting, inclucllng painting,
maintenance, concrete slabs ard electrical, sump-pit/sunp JlllI1P
installation ard repair, asbestos rem::M\1, hazardo.lS waste remediation
and tank suwort services (hereinafter "radon testing and radon
reduction") rosiness of Seller which currently qJerates as a division of
v.sllogg Environmental serviCE'S, Inc.
1.l.1 Machinery al'd equipoont as follC1N9:
1. 1985 Ford Van (85,000 mllf'S)
2 . JCan;Jo Han1ner Drill (1990 I
3. Black' Decker Mi\d1o Uamoor Drill 500
4. l/2 inch Hole Shooters
Drills 150 (newl (31
5. Misoellaneoos Bits ard Attadll1W1te
6. l.8dders
7. Desks and Olairs
$ 3,000.00
800.00
300.00
200.00
100.00
100.00
500.00
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8. Show Booth 200.00
9. SlIlxnrmlible Water Punp with 11000 200.00
10. lIole Hog Milwaky 250.00
11. Flashlights (3): Cameral ard Electrical Oleckers (2) 50.00
l2. Tools - Sawsl Knives: lJropLights: am Extension Cbrds 200.00
13. R10nes (2) - 1Insw'ering Machine 100.00
14. Tr1Iining Material 100.00
15. 1985 Ol~let Wagon 500.00
16. 1980 Pontiac 800.00
17. Sales Materials - Fee Sdledules 100.00
18. &optic Systeml PrOOes; snake Wrenchesl Dyes; etc. 50.00
19. Organic Vapor Analyzer -1.000.00
TOtal $lO,550.00
1.1.2 Inventory oonsistin:J of: fans, fittings, pipes, pipe fittings,
radon test kits, am water test kits, lIS set: forth on a schedule to be
initialed by Seller am llJyer at cloain:J.
1.1.3 All marketing and distrlWtioll information, including but not
limited to custaner lists, distrlWtor lists, major vendor lists, product
literature and suwlier CX'Iltacts.
1.1.4 All main~ SUWlies, spare parts and other SUdl miscellaneous
il:ens of personal ptqlE!rt:y.
1.1.5 All p.ll"Cha!lE! oroers, rights to plrchase obligations but not any
outstandiJJ;J cbligations thereof.
1.1.6 All insurances, teleprone J1lUItlers and the like.
1.1.7 All trade names I logos; product names I trademarks: trademark
awlications; am patents or patent awlications, foreign or U.S.
l.l.8 All rights 11I0 interest in tJlE! name "Kellogg Environnental
Sel:vioes" and any derivation thereof.
l.l.9 All operating business data, client lists, records 1II1d infoI11liltion
am realtor contact lists relating to activities noted in Paragraph l.l
above .
1.1.10 All licensing agreerents, including but not limited to, radon
testing and radon reduction, whetJler as lioensee or licensor, and whether
in the name of the Seller or any eIl1>loyee of Seller who, as part of this
~..,..,lIlnt receives a consultin:J or irrlependent contractor agrt!E!Jlle1lt.
1.2 L1Mllitv 14altBtlm. Nothing herein cont:.,ined will operate as an
aSSUl1'ption by willians of any liabilities of Kellogg krnin or W1kncMl
except those liabilities an:! obligations expressly a~sumed by Willians
under the terms of this IIgreement. Provided, I~ver, that recalls by
custaners ("call-backs"l in the iIIOOUIIt of $300.00 or less per call-backs,
with a JNlXinulI MDlllt of all call-backs not to exceed $3,000.00, will be
assumed by WUliame. 1uTy balances or M100Jlts for call-becks in excess ot
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ttle Ilbave ftIl1O.II1ts will be the financial respollsibility of Kellogg, who
will JMke payroont to Willinms ;,rithin thirty (30) days of receipt of a
written notlce fran Williams.
1.3 """'-IH--' Activltl"l!l of RAHer. With regard to environmental audits,
hazanlous waste remediation and tank flURlOrt services, after December 3l,
1992, Kellogg may enqage in these activities only to tho extent that 9.Jyer
is not actively involved therein. h:tive involveoont is defined to mean
that for calemar year beginning January l, 1992 am enUng Oeoel1tler 3l,
1992, 8.Jyer's activities in those areas JrlISt equal or exoeed ten percent
(10'1 of his gross inc::lane fran tile b.lSiness I<rhlch he is p.1rchasing under
this hj.""""leIIt, or Kellogg will be permitted to engage in those
activities. Kellogg's involveoont in envirol1lOOl1tal au(Hts, hazardous
waste remediation and tank SlJRX>rt services m"lll be subject to this
restriction 011 an annual basis during the term of this 1\greeJ1'eJ1t.
lIRl'IClB II
gmnc Nn ~ IRICE
~.1 Closlna. 'Ihe closIng of this JIy.""",lII!/lt will take place at '1
~.M. local time on or before NoventJer 8, 1991 ("Closing LlIte" or
"Closing") at the offices of Omnelly, Reid & Spade, 108-112 Walnut
street, llarrisrorq, Pennsylvania or on such other date or at such other
time an:I,Ior plaos as may be mutually agreed upon in writing by Kellogg and
Williams; rot the effective date of this transaction will be January l,
1992 ("Effective LlIte").
2.2 Ir-l Title. On the effective date, Kellogg will sell am convey to
Williams by llRJl'qlriate bills of sale, en1orsenents, ass.1gnments and otiler
instruments of transfer am conveyance satisfactory in form to counsel for
Williams, all of the Transferred IIssets and Williams will payor <A1use to
be paid a portion of the p.lI'Chase price upon such tams ani conditions as
defined by this Article.
2.3 .BJrriv'- Prios Cor 'J,}lmihle~_ILIntmIlJ.hllLlIsset:s. 'Ihe p.1rchase
price for the tangible am intangible assets of the Seller includiniJ the
corporation (transferred assets I will be 'Ihirty Eight 'Ihousand Fifty
($38,050.001 Dollars which SlU1\ will cx>llsist of $2,500.00 for the inventory
of the Sel~er, $10,550.00 for the equipnent of the Seller as set forth on
Schedule attached hereto, am $25,000 for goodwill of tile Seller and
as agreed to by the parties.
2.3.1 ~iQ@ . __ _ to ~. 'lhe p.1rchase price
for the covenant not t.o catp!te of the Seller corpoI'ation and its
in:Uvidual shareholders, Edward B. Rellogg ard Mary E.P. Kellogg at
Paragrarh 4.l.16 of th.1s J\<j.~ will be One lfunjred 'lW\mty Nine
'Ihousand ($129,000.001 Dollars as agreed to by the p<"lrt.ies.
2.3.2 1'*"-'1--- ~ar - QDAlltMt~~!..w;ad;. Williaroa agrees to
pay to F.dward B. Kellogg the total stun of tlinety Six '1housand ($96,000.001
Dollam in accordance with tCIlM hereot ard the Indepen.lent Contractor-
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O;lIlSUltant I\o,jl=-,~t attadJed hen.to am by reference herein incorporated
arid to whidJ the parties have agreed.
2.3.3 (1\) Wil1illl1l'l may set-off by subtr:actirg fran the balance due fran
willilll1l'l to Kellogg, any amoont.s paid by willilll1l'l PJ.rSlWlt to 1'I1ragralit
8.6, includirg but not limited to damages, penalties, interest ani
attorneys' fees. In the event Il'nllCX]] elects to defenl, rather than
settle or pay any claim for which WilliM'!9 has the right to be
in:lmnified, then WilliaJ1\!l shall have the further right to withhold
payment of the litigated claim fran any MOll1ts due under the pm:hase
price, until SI.Idl timo as a final judgment is renIered in the matter.
2.3.3(8) (1) SUIII Rlyable at ClosIRJ In acklition to the down payment of
$5,000.00 receipt of whidJ is ackrJcylEdged by Seller at closing, WilliaJ1\!l
shall pay to Kellogg the sum of Fifty 'l11oosand ($50,000.001 I:ollara to be
81l'lied to the transferred assets being ptrchased as set forth in
Paragnq:b 2.3 hereinabove.
2.3.3(B) (2) 'lhe balance of the plrChase prios of 'I\Io lllUUred Eight
Thousand Fifty ($208,050.001 I:ollars shall be paid by WilliaJ1\!l to Kellogg
to be eviderced by a Note in the aJ11OOl1t of ('I\Io IIUrrlred 'lhousand
($200,000.00) D:lllars in the form as attad1ed hereto as Exhibit -1-,
payable monthly, ccmnenciRJ February l, 1992 as follows:
(11 camencing February l, 1992 anI each successive month
thereafter during calendar year erding Decsnber 3l, J.992 the sum
of $3,500.00, for a total of $38,500.00;
(2) Carrnencing January 1, 1993 and each month tllereafter dl.lrirg
calernar year errliRJ Dcoember 31, 1993 the sum of $7,500.00, for a
total of $90,000.00;
(3) <:amIencirg January 1, 1994 one payment of $5,500.00 due on
that date and ccmrenciRJ February l, 1994 ani eadJ SUCXlE'SSive
month thereafter duriRJ calendar year errliRJ December 31, 1994 the
sum of $3,500.00, for a total of $44,000.00; and
(41 cam.mcing January 1, 1995 and eadl su.ccessive month
thereafter errling errling Septertler 30, 1995 the sum of $3,500.00
and on oct:.OOer 1, 1995 one payment in the amoont of $4, 050.00, for
a total of $35,550.00.
2.3.3(8) (3) 1lle parties agree that all amounts payable hereunder which
are not specifically allocated to inventory, equipnent ani goodwill will
be allocated to the covenant not to ~te am the Irdepen::lent OJntractor
Cbnsultant Jlql~".,nt bet:wt!en the parties.
2.4 Tel1IIimticn of ~f I\I.rc:bvle Price. Notwithstarrllng any other
provisions providing for a set-off of the payment of the purchase price by
Williams to Kellogg, it is understood and agreed among the parties that
if at anytimo within a period not to exceed twwIty-four (241 months frcm
January 1, 1992, tlle radon testing license in the name of nlward 8.
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\(l3llogg individually, nhoold t..ea:.ane uniwaUable to Rellogg F.nvironmental
Services, (except sinult:.aneoos n!plaoeJllent of the radon testilYiJ Hcense in
the name of Eltyer) or the AppllcatiG.i for DER license of B1yer arxl
transfer of the n:Jward B. Kellogg radon license is not carpleted on or
before JlV'I.IIlry 1, 1992, then at BUd1 time all payments shall terminate arxl
Seller or !kJw!ml B. Kellogg ard Mary E.P. Kellogg, shall have no furtJler
rights lI<JIllnBt Willi!UllS or Kellogg Environmental Services whatsoever for
CXlllection of the balaooe of tl18 p.lrdlase price, except however, if the
loss of lioel*l is due solely ard directly to actions or inactions on the
part of will i!UllS.
2.4.1 Itlt.erllll IlAfll\.lt IN ~. A material default on the term,
oorditions am urdertaIdngB of the 9.tyer to this l\q.""".lt!llt lotiid1 results
in the termination of this l\quodllent, will have as a result the forfeiture
of the bJslness to Kellogg by ~&San;l oessati~ of ~,nenant not ~o -/)
CXfTPlte as cont;4ined herein, ar-. <- '\~'O\"'L't ( ~ '~\'~~ ./ ~r..Jf~ t;;~ .; I
~Z::;.!Co~..t~~,.,,:1 J~,. - <J \ Q
2.5 a~. NotwithstanUng any other provision of
this l\q<.eelllent in the event that DER does not awrove the license
awlication of llJyer aln transfer of the Edward B. Kellogg radon license
to llJyer on or. before January 1, 1992, then Kellogg will intnediately
return to llJyer the sum of $55,000.00 ~d1 n!presellts ,the SUIlE paid to
Kel~qgg urDer this ~t ard_ any Exhibits thereto, ~ ~ ~
...,.......\:JJ."", "1v.J.r.rt..1...-..::\ (,o(~. ro;t.u. .
\ ~ I\RI'ICIE III
I:XX:1MENl'S .!\NO salEDIIFS
3.l n-.n_.. anl !II"Ndlll!1!LtD be Delivere:l. Kellogg has prepared for
Willians arxl will deliver to Willians prior to Closirg the following
schedules, documents and ~ies requIred by this Article with respect to
Kellogg.
3.2 ~lIIrles am J;B,1avment, ~~'~Ils. 1\ list referred to as Schedule
I, of all enployees, their (il names, (ill dates of birth, (iiil dates of
hire credited, (iv) present hoorly rates or salaries, (v) ~ies of
enployment contracts, agreements or urderstanUngs, written or oral with
any enployee.
3.3 >>*nr Vehiclt!!ll. 1\ list, referred to as Schedule II of all motor
vehicles, showing CXlSt am depreciation.
3.4 J.i""", anI~. A list, ref.erred to as Schedule III of the
licenses and permits presently being used in connection with Kellogg
Wsiness and ~ies thereof.
3.5 n....nN>nI. To the ext.ent available, a Hst of custaners reflecting
name and address, referred to as Schedule IV.
3.6 L,lcensim &..---< .la. 1\ list, reff'..rred
licensing ay._..eJ,ts lNhether as licensee
assignability ard ~ies thereof.
to as Sdledule V of all
or licensor indicating
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3.7 __I" '-""Lts. A list:, referred to as Sd1edule VI, of MY and all
pnpaid deposits or expenses.
3.8 ~loyee BEnBfit PllUJ7. Copies of all qroop insurance policies,
plans and other oootracts or I\~ts pertaining t enployee qroop
insurance, perwioo, profit shariBj, bonus, retirement or other similar
enployee benefits to be referred to as Sd1edule VII.
3.9 T.............. ^ list, referred to as Sdl8dule VIII ccntaining a true
and carpleta Bdtedule of all insurance policies or birders of inBurlu1ce
held by or 00 behalf of l(ellCXJ:J or relating to J{sllogg's business or any
of l(ellCXJ:J's assets wicb will specify the insurer, the amount of
coverage, the type of insurance, the risks insured, the expiration date
the policy J"ftJI1tler, the annmt of premiUl1l9, and any pending or open clains,
whether or not ~lly covered, as to amount thereunder.
3.10 Mob.rl..l Cb1t:ract8. ^ list referred to as Schedule IX of all
contracts, ft<4u:dnents, oamUtments, arrallyanents, evidences of liabilities
or obligations, not otherwise requested in this Article an:) whether or not
in the nonnal course of business, widl may involve tho receipt or
experditure after Closing of JOOIlies in excess of $lOO.OO or more.
3.11 ,......" ~ -.lB. ^ list and S\l/11Il!U}' description, referred to as
Schedule X, of instnunents and other doclDnents relating to irdebt:edness,
other than trade payable or trade receivables incurred in the ordinary
0Cl.lrS8 of business, and cq>ies of all notes, corditional sales ccntracts,
financing leases, and othet' security arrangements whicb eI'lCUIl'ber title to
the 'l'I'armferred Assets.
3.12 L1H....t1al. ^ list aiD surmmy description, referred to as Schedule
XI, of all litigation proceedings and governmental investigations or any
change in the zoning or ooildlng ordinances, pending or known to be
threatened, affecting any of the pI"qlElrties, assets or business of
J{sllCXJ:J .
3.13 J-- Pk......lv. A list, referred to as Schedule XII, of all leases
relating to personal or real properties, wh6ther as lessor or lessee in
the name of 1(ellCXJ:J D1Viroranental Services, Inc. and cq>ies thereof.
3.14 A..nv.- thdl.... Cq>ies of all material purd1ase orders ard,Ior
suwlier subcontracts anticipated to be ootstanUng 00 the Closing oate
referred to as Schedule XIII.
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IIRl'IQBIV
~.lCHJ M) -.wrr1lH
4.1 -- ;1...t-IaB lIIIll ~ Fall""'. Kellogg represents and
wanants to Williams, which rq>resentations am v.u:ranties shall suzvive
closinq, lUI follCJWBI
4.1.1 Ql the Effective Dtte, Kellogg will convey to Williams, good and
marketable title to the Tnlnsferred J\ssets, free ani clear of all liens,
cla iI\1!I, c:!larI:Jes ani eIX.'UIltlranoes, except as spec if icall y assumed in
writing by Williams. Kellogg will in:le:mlty am deferd Williams fran III1Y
loss, dlImage, cost or expense, includinq reMalBble attorneys' fees,
resulting fran a breadl of the foregoinq representation ani warranty.
4.1.2 To the knowledge of Kellogg, there are no litigations, plOo(!edlngs
or investigations penJing, other than the STEPAIDVI'IOI am vnullNSKI
matters or threatened other than the __~\Olt~V matter that might result
in any material adverse d1ange in the b.JsineAs or prospects or conditions,
financial or otherwise, of Kellogg or any of Kellogg's personal property
oonveyed hereun:ler, or that questions the validity of any action taken or
to be taken by Kellogg pu-suant to or in connection with the provisions of
this t.yu,.,.,wmt. Kellogg does not know of any basis for any sudl
litigations, proceedings or inl,t!Stigations.
4.1.3 No contract has been entered into for the future sale or transfer
of any of the TransferrEd Assets other tllan to williams.
4.1.4 Title to, ani risk of loss or destruction or d."\IMge to the property
being purchased will remain in Kellogg until the Effective D1te, at whidl
time title to the property will pass to Williams.
4.1.5 Kellogg has not knowingly failed to obtain any licenses, permit or
other ~l authorization necessary to the ownership, sale or use
of Kellogg'S assets, which 1I0h.......,l'lianoe, violation or failure to obtain
might materially adversely affect the b.Jsiness, qJerations, proopects,
properties, assets or conUtions, finarcial or otherwise, of Kellogg and
in particular, rot withoot l.imiting the foregoitg, Kellogg is not
knowingly in violatim of any envi1"Ol"llW!lltal, safety or health law, rule or
regulatim.
4.1.6 Kellogg has not offered, paid or agreed to pay, directly or
irdirectly, any money or anything of value, to any in:lividual who is or
was an official or eq>loyee of any foreign, federal, state, courlty or
local <JCIVerI'1IIeIIt or any department, oamtlssion, board, roreau, agency or
other instrumentality thereof, or who is or was a director, officer or
eJlflloyee of any private b.Jsiness, for the p.upose or witll the intent of
In:lucing that inJividual, in his official capacity, to lIDO hill or her
influence to obtain or maintain b.Jsiness for Kel10gg or to otherwise
affect the Wsiness, cplratiolls pl~~"1:.9, pl'qJQrties, assets or
conditim, financial or otherwise, of l(ellogg.
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4:1.7 All unfilled orders ard ocmnibnents of KellOCJj for the p.ud1aSEl of
materials, III.Wlies ard services pertainirq to KellOCJj wm-e made in the
usual arr:I ordinary ooorse of rosiness.
4.1.8 Kellogg is not a party to, or in any way obligated under, MY
contract for the peyment of any fee, oamrlssion or ~ of any broker,
firder or advisor in connection with the origin, negotiation, extlCUtion or
performance of this IIgreement, exoept a list1.ng aynodllel1t dated May l4,
1991 with Jack Gaughen Realty, and for the payment of !<.hich ~ It.
Kellogg is solely lespollsible.
4.1.9 To the knowledge of Kellogg, it is not in material default of MY
contract which materially affects the b.1siness or ql8IlItions of Kellogg.
4.1.10 Kellogg will be u!sponsible for any liability claw tllat are
made with respect to any Kellogg activities oorxIucted prior to the
Effective Dlte and will irdemify and hold harmless and dafen;! Willilll1'S
against any claims arr:I damages of whatever nature, includ1.ng attorneys'
fees, for contest~ the same.
4.l.11 Kellogg has good and marketable title to all of its assets,
personal arr:I mixed, free and clear of all liens, pledges, security
interests, d1lm;Jes, claims, reetrictions, and other enc:urrl>rances of MY
nature whatsoever.
4.1.12 Kellogg is not a party to any legal suit or action, not covered by
insurance, or any arbitration or other administrative ploceeJ1.ng, pe1Xling
or to their knowledge threatened, or any proceeding whatsoever arisin} oot
of the enployer/enployee relationship ard,Ior involv~ an alleged
violation of any local, state or federal law, rule or regulation. In the
event Kellogg is a party to prooeeclings as specified herein, Kellogg shall
irdeJmify and hold hannless Williams fran any and all liability therefor.
4.1.U Arri liabil!ty for monetary damages, including wt not limited to
negotiated settlements, n>.sulting fran Kellogg's action(s) or practice(sl
in respect to any Kellogg enployee or enployees Iohich occurs prior to the
Effective Dlte will be the sole resv-AlSibility of Kellogg, includlrg
liability for I1aIetary damages awarded an enployee for wages !<.hid1 may
have accrued after the CI09~ Dlte to the date of any decree, settlement
or order awarding sud1 damages.
4.1.14 To the knowledge of Kellogg, all lists, ~ies and schedules
required by this lIoJ.....roent will be oatplete, valid and aocurately reflect
the infonnation requested.
4.1.15 To the knowledge of Kellogg, the inventories of Kellogg are
currently being maintained at nonnal levels believed to be adequate for
the continuation of Kellogg's b.1siness as presently oorducted.
4.1.16 Eklward.,. Kellogg, and Mary E.P. Kellogg, jointly and severally,
and as Kellogg's shareholders and owners of all the issued and ootstarding
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sfuck of Kellogg ard Kellogg FJlVlrainental Servi<.X!S, Inc. the Seller
tJerein, will not for a period of olle (11 year fran tlIe dllte of fil1lll
pIIyment hereof in the counties of DlllJi1in, UJrrberlard, ~rry, JIdanwI,
Iancaster an:l York, Pennsylvania, without the prior written consent of
Williams, directly or irdirectly engage or partic1p11te in any b.tsiness
involvirg radon t.estirg an:l radon reduction as an irdividual proprietor,
erployee, consultant, partner, shareholder, director or tlIe like, provided
hcMlver, that nJward 11'. Kellog:} and Mary E.P. Kellogg may be solely
mployed by a federal, state or 10Ci11 agency in sud1 b.tslness.
It is further specifically acknowledged that II .",,6ly at law for breach of
the foregoirq warranty will be inadequate ard that Williams, in addition
to other relief available to Willil'llll9, will 00 entitled to tenp:lrary and
permanent injurctive relief withoot the necessity of provirq actual
damages .
In the event this Section 4.1.l6 is held to be in any re:.--pect an
unreasonable restriction upon nlward W. Kellogg or M.lry E.P. Kellogg or
KellCCJ:J Environmental Services, Inc. by any CX1Jrt. havirq a:npetent
jurisdiction, the coort so holdirq may rOOuoe the territory to which it
pertains anl/or the period of time in which it cplrates or affect any
charge to the extent necessary to ren:ler this Section enforceable by said
court. said decision by a court of ~tent jurisdiction will not
invalidate this lIgreernent rot this h,l1.....lIent will be construed as not
containirq the invalidated provisions aoo the rights am obligations of
the parties will be interpreted, construed and enforced aocordirqly.
4.1.17 Kellogg is a corporation duly organized, validly existirq aoo in
good standirg lD"Xler the laws of the O::mtKJnwealth of Pennsylvania, is
qualified to transact nL.qiness in the O::moonwealth of Pennsylvania am has
the corporate power to carry on its rosiness as now corrlucted.
4.1.18 The execution arrl delivery of this JIy.e...'lllllt by Kellogg am the
performance of the transactions contmplated herein have been duly
autllorized by the Executive camuttee or Board of Directors of Kellogg and
no further corporate action is requlred. The execution and delivery of
this J\greE!Ioont am the coTJFl1.IIltr.ation of the purchase of the Transferred
J\ssets in oatpli81lC8 with the terns hereof will not conflict with or
result in the breach of the charter or by-laws of Kellogg, resolutions of
Kellogg, or any term, oordition or provision of, or oonstitute a default
urder, any irdenture, JOOrtgage, deed of trust or other contract, or
oamdtment to which Kellogg is II pIIrty or by which Kellogg may be boord,
or result in the violation by Kellogg of any law, rule, regulations,
order, judgment or decree. 1he transactions contE!ll1Jlat.ed by this
JIy.""",.ent may be COl1SUIltMted wlthoot the necessity of obtainIng any
consent fran any party. certified oqJies of the Executive Con1nittee or
Boanl resolutions of Kellogg are attached as Exhibit .1._'
4.2
warrants to Kellogg,
cl09irq, as follCMJI
. . m..Jlf "1111-. Willians npresents and
whIch representations ard warranties shall llUlVive
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4.2.1 Willilll1'S is not a party.to, or in any way ooligated under MY
CU'ltnsct for the payment of any fee, OCIlIIIission or expense of any broker
or fimer in connection with the origin, negotiation, execution or
perfonnanoe of this Jlqleenent.
4.2.2 Willilll1'S has received a mortgage on his pIqJert.y as required by
the Septentler 3, 1991 Agleement ~ the parties '-'tid1 is attached
hereto as Elchibit .3 , nrd the time, oon:Htions, COI/'enants and
un1erstandlngs of the parties UMlreto of '-'tidl are inoorporated by
referenoe herein.
4.2.3 Willilll1'S will cmply with all the tenns, comitiolls and
un1ertakin:JS of the Interface J\o,jt""","ent to be dated ..I""......~_L II/.~ l.
between 9.Jyer and Seller '-'tich Interface Jlqreement is attached <t\ereto as
Exhibit ...1.. ani by reference hersin il'lCXlrporated.
lIRl'IClE V
ImC...~J:1YE Dr\'l'E OI9ATIctlS
5.1 Unless the action was oUlerwise awroved (which awroval shall not be
unreasonably withheld I in advanc:e in writil'XJ by Williams, Kellogg
covenants an:! agrees with respect to its OOsiness that fran an:! after
SepteriJer 3, 1991 until the Effective rate Kellogg will:
5.1.1 Cklrlduct lellogg's business only in the ordinary oa.lrS8, am use its
reasonable efforts to retain its rosiness organization an:! the goodwill of
SIJRlliers, c::ustaIv3rs an:! others having business relations with Kellogg and
use its best efforts to keep available the services of the present
EIlployees of lellCXJ9.
5.1.2 Not enter into, assume or create any mortgage, pledge, comitional
sale or other title retention agledOOllt, lien, security interest,
encumbrance or charge of any kird on the Transferred Assets.
5.1.3 Not incur any material ooligation for borrowed lOOIley or make any
extensions of credit, other than ordinary trade credit, loans or advaooes
to, or assume, guarantee, endorse, or oUlerwise 1.->...,"" liable with respect
to additional ooligat.ions for Kellogg, which, as a result of such action,
would cause an lldver's-.l effect on U18 sale of the Transferred Assets.
5.1.4 At Kellogg's expense, lMintain the Transferred Assets in custanary
nlpflir, order and ClorxUtion, reasonable wear an:! u..qe an:! damage by fire or
other casualty excepted.
5.1.5 1Iccept custaoor orders, issue quotations, estimates an:l/or
proposals only in the usual an:) ordinary ca:rse of rosiness.
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5.1.6 Not make any oamrlbnent for capital eJqlE!Rlltures for additions to
airy facilities wn-ently leased by Kellogg Miich would L.:vu.1l9 a lillbility
or obligation of WillillllB as lessee.
5.1.7 Not (i) make any increases in the oaTpanSation payable or to ~\.e
payable to any of Kellogg's officers, enployees or agents, or (H) make or
enter into any written ellployment lX1I1tract or any bonus, stock option,
profit sharin:j, pension, retirement or other similar payroont or
arran:Jement Miich increase or arrangement woold be effective past the
Closing Date, except perks, OCII1llissions, salaries, bonuses or
reJl1b1rsements of any type Miich do not legally bin:! Williams.
5.1.8 Maintain in force all the insurance policies covering Kellogg's
assets an:l leased facility until the date of transfer of assets.
5.1.9 Not irx:ur any liabilities or obligations absolute or oontingent
for Kellogg, except in the ordlnary course of bJs1ness or p..1rsuant to
existin:} OOI1tracts an:l agreements.
5.1.10 Not make any cx:mnibnents extenUng beyorrl one year (E'.xoept
oamdtments for periods in excess of one year relatin:} to the sale or
purchase of Kellogg of goods am services for an amount not in excess of
$lOO.OO per transactionl to any one purchaser or vendor or group of
Jurchasers or ven:lors.
5.1.11 Not enter into, renew, exten:l, modify, terminate or waive any
right un:!er any lease or license.
5.1.12 Coqlerate with Williarrs in obtain.intJ, the tralV3fer of any
licenses, titles or permits necessary for Williams' use of the Transfer:red
Assets .
5.1.13 PLulI'Uy af.ter kncMledge thereof, provide Williams with notice of
(i) litigation: (H) anticipated litigation: (iii) suspension of any
license, permit or other goveITV1lE'ntal authorization: (ivl insurance
cancellation; (v) any material termiMtion of or material di~te with
any material custaoor or meri:Jer; (vi) am termination or di~te over any
licensing agt'OOl1lE!l1t or financin:j lease 8<,J~"","ent; (viiI custaner
cancellations; (vHil claims; (1A) suwlier shortage or refUsal to
deliver: (xl gwernnental agency or departmP.l\tal notice, local, state or
federal, oonoeming any alleged violation of any law, rule or regulation
an:l (xi) notices or oorresponlence concerning liens, loans or encumbrances
affecting the Transferred Assets.
5.1.14 Kellogg will enploy Williams fran November l, 1991 lmtil January
l, 1992 as an enployee at a gross salary of Four 'lhousan:l I:k>llars
($4,000.00)jper month, payable ~y plus reimbursement for mil8<1<Je, all
car phone expens.es nn:l miscelJaneoos l:u9iness related expenses. Williams
aqrees during said period to I"'r(orm a minimum of 40 hours pE'I week of
enployment services necessary to educate himself in the epilation of the
radon testing am radon reduction rosiness, provided that if Williams does
not work in any week he will not be paid for that week..
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5:1.15 At any time behleen Noventler 1, 1991 to June 30, 1992, williMl!l
may etploy Seller's wife, Ituy B.P. 1"4ll10lJ:J, at the rate of $10.00 per
hour not to exceed 40 hoors per week. All services of Mary E.P. KellOlJ:J
shall be at will ard she agrees to BUbnit a written resignatioo in a form
lIS required by Williams at his request.
ARl'IClE VI
aHIlTIa6 CI" ("1M.": AND aHIlTRHJ
AS OF nIB ~r...~I'lVB 1MB
'lhe ooligatioo of Willians to take those
on the Closing OBte will be subject to the
6.1 WUlh.....' O:nlltiCRI.
actions required by williams
following ccry;Jitions:
6.l.l 'lhe representations am warranties of Kellan herein =ntainecl will
be true in all material respects as ani at the Closing OBte with the Sl'I/\'S
effect lIS thoogh made at sud1 date.
6.l.2 willians will have received all documents ani sdledules required by
Article III.
6.1.3 An acx:urate listit-q of all office machinery, equipnent cuP
furniture with respect to the Kellogg facility, referred to as Schedule .!!
will have been catpiled and initialed as accurate by Kellogg.
6.1.4 Kellogg will have perfonood all ooligations, CCJI1llied Witll all
=venants ani provided willians with all notices required by this
hj."""ent to be performed or CXJTtllied with by Kellogg.
6.1.5 Any waivers or consents reasonably believed neoessary by Williams'
counsel will have been received in form ani substance satisfactory to
counsel.
6.1.6 All transactions =nteJfplated hereby, ani the form ani substanoe of
all legal plooeedings and of all papers used or delivered hereun:1er,
including rot. not limited to any lease ani a consulting lIy'''''''leI1t with
n!ward B. Kellogg will be in a fom ani substance reasonably satisfactory
to Williams ani his ooonsel.
6.1.7 No suit, action or other proceeding to restrain, pId1ibit or
otherwise affect the oonsunmation of this lIyt_.nt which in the
reasonable judgroont of willians or his ooonsel requires a delay of the
Closing, or the termination of this Agreement, will have been instituted
or threatened, and no inquiry or request lran any governnental agency with
re6Jl8Ct to the transaction provided herein, which in the reasonable
judgment of williams or its o:m1S8l requires a delay of the Closing, will
have been received by William!!.
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6.:1 Wlllf-' O:.nlitiCDI. 1'le cblltpltioo of williams to take those
aCtions required by WillilllM 011 I:he Effective ntte will be subject to the
follawirq OORlitioos:
6.2.l 1he represent:atioos and warranties of Kellogg herein contained will
be true in all material respects as IlI'rl at the Effective ~te with the
SIlJIIIl effect as though mado at sud1 date.
6.2.2 Willilll1B will have received all documents am sdJedules required by
Article III.
6.2.3 1\n a=rate Ustirg of all office machinery, equipnent and
furniture with respect to the Kellogg facility, referred to as Schedule .A..
will have been oarpiled and initialed lIS accurate by Kellogg.
6.2.4 Kellogg will have performed all ooligations, oatplied with all
covenants and provided willilll1B with all notices required by this
h.fu......lIElI1t to be performed or oooplied with by Kellogg.
6.2.5 Any waivers or oonsents reasonably believed necessary by Willilll1B'
ooullsel will have been received in fonn am substance satisfactory to
oounsel.
6.2.6 All transactions conteIrplated hereby, and the form am substance of
all legal plOC"'Allrgs and of all papers used or delivered hareunder,
includirq rot not limil:ed to any lease and a consult.\.rg Jlgreement with
Mward B. Kellogg will be in a form and substance reasooably satisfactory
to Willilll1B am his co.msel.
6.2.7 Any am all permits, all'rovals am other actions of any
jurisdictioo or authority required in the reasonable q>inion of OOlIIlSel
for Williams for the lawful OOI'lSUItI1lation of the transactions oontenplated
by this hjt.eclIWlt will have been obtained, am no such permit, awroval or
other actioo will contain any provision which in the reasonable judgment
of COOR!lel for WillillJl8 will be urduly rordensane.
6.2.8 Kellogg will sell and ccrwey to Willimrs by awrq>riate bills of
sale, erdorBelOOllts, assignments am other instruments of transfer and
oonveyarK.:e satisfactory in form to oounsel for Williams, all of the
Transferred Assets.
6.2.9 No suit, action or other proceeding to restrain, prohibit or
otherwise IIffect the COIlSUlI1'l1ation of this Jlgreement which in the
rell!IOI1able judgment of WillillJl8 or his CXJlU1Sel requires a delay of the
Closing, or the termination of this J\greEment, will have been instituted
or threatenEd, and no irqliry or request fraTI any govenvnental agency with
respect to the transaction provided herein, which in the reasonable
judgment of Willl!ll18 or its COI.U1sel requires a delay of the Closing, will
have been received by Williams.
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6.3 _llrvww Qn1,IJ;,1g:w. 1he ob1Jgat'lons of Kellogg herel1l'der to take
those actions required by it on the Cloeing Date will be subject to the
following conditions:
6.3.1 All transactions conl:elplated hereby, an:! the fonn an:l BUbstanoe of
all legal prooeedings and of all pIlpers used or delivered he.reurder,
iJlCludllq, but not limited to any lease and a O:lnsUlting ~led".,llt with
&:!ward B. Jl:ellogg, will be in a fOUII an:! tlubstance reasonably satisfactory
to Kellocn and its coonsel.
6.3.2 WilliMS will payor cause to be paid the aJlI:Mlt unler the tCr:t119
and con:1itJ.ons set forth in Paragra(i1 2.3.
6.3.3 '!he representations am warranties of williams herein cont..'1ined
will be true in all material respects as of the Cloeing Date with the same
effect as thoogh JMde at sud1 date.
6.4 .I'i@U~C',U!. 1hp ct>l tgations of Kellogg hereurx:ler to take
those actions required by it on the EffP.ctive Date will be subject to the
following oonditions:
6.4.1 All transactions oontl'Jrplated hereby, and the fonn and BUbstance of
all legal proceedings am of all papers used or delivered hereurrler,
including, but not limit.ed to any lease and a Consulting ~lee.lOO1lt with
Mward B. Kellogg, will be in a fonll and BUbstance reasonably satisfactory
to Kellogg and its =<",el.
6.4.2 Williams will payor cause to be paid the amount unler the terms
and corditions set forth in Paragra(i1 2.3.
6.4.3 1he representations am warranties o~ williams herein contained
will be true in all material respects as of the Effective Date with the
same effect as thoogh made at !lI.ldl date.
6.5 JI'.ellOCD am Willi....... O:nlitims. lis of the effective date, Edward
B. Kellocn, individually am James Anthony Williams, individually, will
provide evideJx:le of Cl'Of!S-p1l"d1aSe life insurance policies in the initial
aJlI:Mlt of $200,000.00 each to secure payment of the pm::hase price in the
event of the death of either party. Each will name the other as
beneficiary and payee of this policy in the event of death. Each party
will be respalSible for the payment of preml.UJ'lII on the policy in the other
parties name am provide evideJlCe in the fonn of 11 paid preml.lD1I binder not
less t11aJ1 annually durirq the term of this ~U=lleflt. 1he parties may
rotually agree in writirq to prqx>rtionally reduce the annual insurance
coverage on the lives of earn other to reflect the decrease in the am:JU/lt
of the pudlase price owned by ll1yer to Seller.
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ARrICLE VII
IICl'lUt '1QJ,JR 'DW2t fiI!!BU!FWl' 'lU 'nIB C'llRIIr.
7.1 _11.......'. (h1iQlltlal. Kellogg agrees to the following obligations
subsequent: to Closing:
7.1.l If Willill/ll9 will det:.ermlno tJlilt any fUrther conveyance, assignnent
or other doc\Inents, or any further action, is ~a!lry or an>rq>r!ate to
vest in or CXlI'Ifer to Willill/ll9 fUll title to the Transferred Assets,
Kellogg will take sucta action, am exocute such instrumP..nts, as willill/ll9
may rea&a1Bbly determine to be necessary or awrq>riate to carry out the
pnp;ses of this lIq....,,"ent, at the expense of KellOC};J.
7.1.2 Kellogg will, in aooordanoe with Rellogg's normal record retention
sd1edule, retain, preserve arxl IlIIlke available to Willimm during normal
rosiness hours for any prql8r ~, any of the books am other pApers
ard records of Rellogg retained by Ksllogg hereurder arrl will. permit
Williams to IlIIlke cqlies and extracts therefran, except any ard all tax
records or re=rds pertaining solely to Jd1rBton laboratories.
'1.1.3 Ksllogg will ir~E!III1ify, save am hold harmless Williams arrl his
E!lIployees, officers and Directors of and fran any and aU claim, suit,
liability, loss damage, cost or expen..'I89, including reasonable attorneys'
fees, resulting fran any breach of Kellogg's obligations under this
lIq..,.,ment existing prior to ard including the date of this lIq.eement or
thereafter caning into being by reason of any state of facts existing
prior to and including the Effective Dlte of this Jlgreement or arising or
growing out of this lIq.~."ent.
7.1.4 Rellogg will reasonably CJCJqJerate with Willianti at the request of
willill/ll9 in all matters involving the C01l>letion and filing of Internal
Revenue Service Form 8594.
7.2 Wllll--' <bUORtIg]!!. willill/ll9 agrees to tJle following obligations
subsequent to Closing:
7.2.1 To provide Seller with an in:l1vidual fm:mcial statenEl1t, lIpon
which Ksllogg is making substantial reliance as part of this lIq..,",nlellt.
7.2.2 Will ill/ll9 will irdernn i fy , save and hold harmless RellOC};J and its
respective officers, partners, agents servants and E!lIployees, of and fran
any and all liability incurnrl after t.he Effective Dlte arising fran the
breach of Williams' obligations hereunder.
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ARf.rcl.1!: VIII
'11!IIIDIla'Iat MIl ..r~'I7.IINIJllUJ IRWIS~
8.1 'I\Inllnll~ltwl, 'Ihif.\ lIgreement may be tenninated by notice given on or
prior to the C10llirg Date in the follCJAling manner:
O.l.l ~ either willinma or Kellogg if a ~~terial default is made by the
other with Iespect to the due aOO timely perfoIlMl109 of any of its
oovenants anlagreements contained herein, or with Iespect to the accuracy
or carpleteness of any of its representations and warranties contained
herein .
0.1.2 ~ williams if all of the corxIitions Get forth in section 6.1 of
this J\greeIIlent will not have been satisfied on or before the Closing !:ete
or waived by williams on or before BUCtl date.
0.l.3 ~ Kellogg if all tile CXJnrlltion.'J set forth in section 6.3 of this
h:J.""",nent will not have been satisfied on or herore the Closing !:ete or
waived by on or before such date.
0.1.4 ~ nutual consent of williams and Kellogg.
0.1.5 ~ Williams if a material adverse change in the business or
oon:lition, financial or otheIWise, of Kellogg will have occurred, or
KellCl9:J will have suffem a material lOllS or damage to any of its
pIql8rties or assets, and not repairEd saJOO or sud1 dlarge, loss or damage
results in a material destruction of the Transferred Assets.
8.1.6 An election to terminate this Sale of Assets lIgreement as
hereinabove provided will be exercised on behalf of Williams,
iOOividually, and on behalf of Kellogg by its President.
8.1.7 In the event of tile termination of this h:Ju","lellt pursuant to the
provisions of this Article, tilis J\qleel1lE'.nt will beoane void and of no
effect, withoot liability on the part of either party or its directors,
officers, eq>loyees, agents and stockholders, in respect to this
lIgleement, other than the liability on the part of ead1 party for its own
expenses incurred in connection with the transactions conterplated by this
J\qu~lIent, provided, however, that the $5,000.00 payment made by William
to Kellogg pJ.l"SU8Ilt to the hjleenent dated SeptentJer 3, 1991 shall be
inmediately returned to WilliaJlll.
8.2 survival of ~. 'lhe warranties, represent..~tions and
oovenants of the parties hereto will survive the Closing.
8.3 B1~ of I.,.,... At all times prior to the Effective !:ete, the risk of
loss with respect to the Transferred Assets will be with KellCl9:J. In the
event the Transferred Assets will be subetantially or materially damaged
or destroyed by tire or otJler cas\lalty, Kellogg will jll11lediately notify
williams in writirg tl18reof ard the extent thereof am praT1ltly notify
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'wi1li_ whether it intends to r~' with the repIIir, restoration or
xq>laoenent to the quality as existed inlnediately prior to the casualty!
provided, hawuver, in the event of total destruction WilliMlS may declal:fil
this hj<..-,18I1t to be null am void. Y.8llogg will maintain in fUll force
ard effect until the Effective ~te all flre ard exterded coverage
insuranoe against such risks ard in such III1D.IIlts as currently maintained.
8.4 ,DI...,hot_. IT IS SPEX:IFICALLY ~ BY 'I11E PlIRl'Iffl 'I'D'ImS
lIGRED1ENl' 'I11AT WIlLI/IMS IS IURaITlSIOO OOLY cmrAIN ImIGNl\TED ASSETS fKM
)(F.T Hyn. WI lLIAM9 1I.'lSUMffl tll RfflIUl<! IBI LITY f'OR r.NY LIABI LITI rn OF
KELLOOO, JOQolN OR tJNKtQoIN, UNlnlS OlllmWISE nvlIlE> HEREIN, J\ND
SPfX:IFICALLY DlSCIADt3 r.NY RmIUl<!IBILITY f'OR 111E I.mI\L OR TAX
IWUFICATI<NI WlIIOI o:mn BE GWERATED BY 111E SAlE OF 111E ~UMENr,
INVENI'ORY AND A.'lSE:I'S OF )(F.T J CYr..
8.5 Tr8nsfer~. Neither party to this hjt'Cf:m1(>nt is aware of any
sales, use or excise or other similar taxes or fees arising rot of the
conveyance, transfer, assignment, sale am delivery hereurxler of the
assets to be transfernxl, rot if any are levied against either of them,
they will be paid by Williams, provlded however, that any om awlication
fee to be paid by williams to qualify for the corporate radon license will
be paid one-half by Williams and one-half by Kellogg. lIny renewal fees
will be Williams' responsibility.
8.6 Rlllk Tr8nsffilDl. Kellogg Flgrees to indemnify and deferd williams
against any claims and danages of whatever nature including attorneys'
fees, for oontesting the same, and asS'OOSl1lellts against Williams by any
credltor of Kellogg for IIOl'JCOIlIllianoe with the Pennsylvania Mk Transfers
Law which may be awlicable to the sale or transfer of the Transferred
lIssets .
8.7 ~ ~ ". Each party will bear its awn expenses and fees incurred in
connection with this ~.."'/Ill8t1t am the transactions contell\Jlated hereby,
including without limitation fees and expenses of acx::oontants, awraisers
and attorneys.
8.8 ..............,.,..rb.. lIrry number of oauntezparts of this hJ<."ement may be
signed and delivered and eadl will be considered an original and together
they will oonst.ltute one agreement.
8.9 GaII8:lT1inJ ..lAW. 1his JIq..,.,ment will be executed, construed am
performed in aoconJanoe with the laws of the O:Irm:Jnwealth of Pennsylvania.
8.10 _I..... ............-l!,.. '1hls Jlgreenlfmt constitutes the entire agreement
between the parties pertaining to its subject matter and supersedes all
prior arrl conteJ11xlraneous negotlations, sy<=I1l8Ilts and urxlerstandings,
written or oral, of the parties in connection with it. No representation,
covt>.nant or cordition not expressed in this hj<eE'lneIlt will affect or be
effective to interpret, change or restrict this hjt"",,"ent. No amendment,
modification, termination or att:enptEd waiver of any of the provisions of
this h)<.,.,.nent will be birrling on the parties unless in writing slgned by
both parties. No waiver of any provision of or default W1der this
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'1\gl:'eEment will affect the right of the. parties thereurder to enforoe any
creher provision or to exercise any. right: or h",...1y in the event of any
other default, ~ther or not similar.
8.11 tH-1.-, All notices, denands ard other camt1IIications whidl are
required to be given to or made by either party to the other in oonnection
with this h:lh""..ent will be in writing, will be deE!lIOO to have been given
when posted by certified or registered mail or when receipt of a courier
express, telegram, cable or telex has been acknowledged too the following
addresses :
If to Kellogg Environnental Services, Inc.:
4705 Trindle Road
Med1anicsOOrg, PA l7055
If to n:Iward B. Kellogg anI Mary E.P. Kellogg:
BllS Anthony Drive
Med1an.1c:sl7JIg, PA 17055
If to Williams:
P.O. Box l002
Millers Gap Road
Med1anicsOOrg, PA 17055
With O::py To:
Qlnnelly, Reid & Spade
Attn: James E. Reid, Jr.
10B-l12 Walnut street
P.O. Box 963
lIarrisburg, PA l710B
If notioe is personally delivered, the irxlividual aooept:ing such notice,
if requested, will sign a duplicate of the notice to evidence receipt
thereof.
8.12 ":l"oNrllll~. Schedules referred to herein whidl have not been
attadled hereto at the time of the execution of this h"L"""leI1t will, by
the consent of the parties, signified by the parties' initials on the
addition be later attached or carpleted and be deemed a part of this
J1.jL.,.,ment as if attadled hereto at the time of execution.
8.13 '~-"I....... 'Illa headings to the varioos sections of the J1.jL"""lE!llt
have 00en inserted for convenient reference only and will not to any
extent have the effect of modifying, moording or d1anging the express
terms and provisions of this J\qL~lIent.
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11\IrIl!IlftIrI o:1f1Rl\CltlH1HlUlJf ~
/." '1JIIS IrdepeRlent Contra&tr.Consultant l\greement this J day of _
,Jrwu , 19 2 !!Y- "Wlllu-, Inc. ("Catplny-f.) ani WwIm:l
F&l~ of '111..4i',.,,~ ~r( ., A>~\lal1 Wividual ("consultant").
/
H1'lNfSSE'lH:
this document,
follows I
In oonsiderntion of the nutual agreements containEd in
the parties, interxlil'lJ to be legally bwrd hereby, agree as
J\Rl'IClJ'l I
Hr!1llRE OF <XIGJllmNl' IOOrnCft
1.1 CcrlplI1y desires, upon the plId1ase of Consultant's business, to
make use of Consult.ant's expertise I... the radon testing ani radon
reduction, water ani ceptic systan certitkations, hare inspections,
environnental audit, termite inspections, contractin;J, includin;J painting,
maintenance, concrete slabs ard electrical, sunp-pit/sunp punp
installation ani repair, asbestos reIrOVal, hazardous waste remediation
ani tank suwort services (hereinafter "radon testing ani radon
reduction"l rosiness. Consultant personally is licensed in the
catInoI1Wealth of ~lvanla to con:luct radon testing ani radon reduction
services unler License No. !ib--.
1.2 CcrlplI1y shall eJttlloy Consultant, ani Consultant shall accept such
enployment fran January 1, 1992 throogh January l, 1996 (the "Consulting
Term") to unlertake such duties ani to perform such services as reasonably
may be assigned to him by the Board of Directors of the carpany or by its
officers, as further defined in ParagraIil 2. Consultant shall provide
consulting services not to ~ 960 hoors at an hoorly rate of $100.00
per hair during the term hereof.
1.3 Consultant shall be an in:lepement contractor ani not an enployee
of the CCIIplny ani subject only to the teI'l11!l of Paragrarh 2, shall
determine his own method of qJ8ration in ac:x:lOO1>1ishin;J such tasks as !MY
be assigned. 'l11e Corsultant shall not be entitled to receive any
CCJ1tlE!llS8tion, oamdssions or benefits other than thooe expressly provided
in thIs hJ. ....'ent.
NU'IClB II
~~...Jm'm1
2.1 D.lring the Col1Bultlng Tenn, Consultant shall be available upon
reaSOllllble notioe given by the President of the <:arpmy to assist the
~ny in all advi!lOry or special lI-'lSignrent c<'pacity in his areas of
expertise ard carp!tence in radon testing am radon reduction through
utilization of his Camloll\/ealth of ~lvanla License No. ~_'
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O'JIlI'JUltllJlt B11O.1ld be IIvaUllble lit least t:eleplonically during the
OlnsUltirq Term to CIltty out the duties assigned by the President of the
0:IrpIny. '1hese O:lnSUltllnt assigranent8 shall be ~ted by payment to
O'JI'MIUltant, ocmnencing February 1, 1992, of a total corBUlting fee of
$96,000.00 to be plIid mcnthly based upon a total not to exceed 960 hours
of oonsulting servioes at a rate of $lOO.OO per hoor and each month
thereafter to an:! inclwing January 1, 1996. Consultant should be
respollsible for an:l pay any and all expenses necessary for him to carry-
out the p.uposes of this Consulting ^"""",.Iellt.
2.2 It is W'rlerstood an:l agreed by the 0Jnsul tant and the President of
the CcIIpny that the O:m1a1Wealth of Pennsylvania Radon Testing and
Reduction LiOl!Rl8 No. Cj(, is an integral part and consideration for
the pm:Mse by President of the bls1ness known as Kellogg Environmental
Servioes, Inc. fran the Oonsultant. It is the intention of the President
of the Ca1pInj to apply for and obtain radon testing and radon reduction
licensing in the O:I11nonWI:!alth of Pennsylvania in his own name within
twenty-four (24) IOCJllths fran January 1, 1992.
2.3 If for any reason during the twenty-six (26) month period
ocmnencing on the date of this lIgreement the radon testing and radon
reductioo license of the consultant is iJrpaired or terminated by the
awlicable licensing Wreau of the camunwealth of Pennsylvania, then any
and all future payments wrler the terns of this lIgreerrent otherwise
payllble by the a:.tpany to the O:>nsu1tant shall terminate and the Conpany
shall have no further obligation to make such payments to the Consultant,
except, hc:Muver, if the inpairment or termination of the blsiness is due
solely an:! directly to the actions or inactions of WillillllS.
J\Rl'lClE III
~l'lTlClf
3.1 l:lJring the term of tllis hjlOOlllent, Consultant agrees that he will
not erJC]"dgB in radoo testing anr1 radon ~ion activities lU'der the
CXmnorr.Iealth of Pennsylvania License No. .::fL, nor directly or indirectly
engage in, operate, or participate in the ownership, management,
cparatioo, or control of or be an officer, agent, consultant, erployee,
partner, director or shareholder or have any Wsiness affiliation
whatsoever with a rosiness that OCIIpltes with the catpmy in any manner in
the counties of Dl\II:tlin, amiJerland, Perry, !\dans, I.ancaster arrl York in
the ~lth of Penn!lylvania.
3.2 Upon temination of this foq,=<..ent for whatever reason,
Consultant ~ that Consultant shall not directly or irdlrectly engage
in, qJerate, or participate in the CMlllrship, managemE'.nt, ct'E!rations or
control of, or be an officer, agent, consultant, erpioyee, partllE'I,
director or shartlholder of any business that cx:qJetes with the Catplny in
any manner as described in this l\q..~nent in the counties, DlUJilin,
CUlrberland, Perry, l\dam9, lancaster III1d York in the Cam1orP..'ealth of
Pennsylvania for a period of thirty-six (361 months.
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3.3 COnsultant agrees that this non-u.ll1t"'titim sectim is necessary
to protect the CalpIny'. OOsiness, wich has been p1I'dIased fran the
Consultant, ard that: any violatim of this sectim will result in
irreparable harm to the D:.l1pMy. In the event that the Consultant
breadles this sectim, the D:.l1pMy shall be entitled to injunctive relief
in IK'klitim to any other remedies legally aval1able. 'Ibis sectim am the
rights of the D:.l1pMy herein shall SUIVive terminatim of t.his h,jl~nent.
3.4 '1he parties agree that the value of this covenant not to corpete
aver the term shall be $l29,OOO.00.
JIRl'IClB IV
1EI\IE tl~
4.1 'Ihe Consultant shall not at anytime or in any manner, either
directly or indirectly, divulge, disclose or c:xmnunicate to any person,
firm, corporetion or other entity in any manner \o'hatsoever any information
c:x:n:l8r11ing any mattel'S affect.ing or relating to the OOsiness of the
Calplny, including without limitation, any of its custaners, product,
prices, manner of operations or any other information oonoerning the
OOsiness of the O:rtpany, its plans, pI"""""'"'OO, or other data without
regard to Wether all the above-stated matters would be deemed
oonfidential, material or irrp>rtant. catpany and o:msu.l.tant specifically
and eJCpressly .tilUlate that as between tllli!lll, such matters are material
and oonfidential ard cnUd serioosly affect the SU<XJeSSful corduct of the
OOsiness of the O:rtpany am the cmpmy's good will. In the event the
Consultant breadles this sectl.on, the CCI1plny shall be entitled, IU1lOI19
other remedies, to injunctive relief prthibiting the Consultant fran
disclosing such information. Provisions of this section shall SUIVive the
termination of this hJh,,,,,nent.
JIRl'IClE V
INVOJ.Um\RY 'lIHUNATIW OF 'OIlS ~
5.1 In addition to the tennination of this Agreement for the reasons
set forth in A..-ticle IV hereinabove, the CCI1plny may terminate this
h,j..,.,,,,(!J,t for cause upon Consultant's failure or refusal to adequately
perfolm the duties assigned to the Consultant.
5.2 It is further urderstood and agreed between the consultant and
CUlpmy that the breach of any of the representations, warranties,
obligaticn!l or duties of the Consultant as the seller of the assets of
Kellan EnYironnental Services, Inc. to Ant}lony Williams ~t to the
Sale of Assets h.l..,.,.,dlt dated L day of /V<~ fAll, ',- _, 1991 may
also result in a reduction of, cessation of, or cancellation of any and
aU payments w-der this CklrBulting Agreemnt am the parties hereto hereby
inoorporate by refereooe aU the tenm, corditions, umertakings and
obligaticn!l of the parties set forth in the Sale of Assets h,j.e..jll!llt and
inoorporate the same by reference heAin.
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NU'laJI VI
1MIB
6.1 CcIIpMy arYl QnlUltant undemtAld I'IID I'IlJt"OO tilllt lQlIIl\IltAllt is
wholly U!6pcR.ible arYl liable for all taXt'S on i.J[XJllIl he rtJaIiVM p.rt'Uuant
to this~. Any 1\00 all inoano taxes or taxes of allY Mture '-'rich
are required to be paid by QJrlSllltant p.:nnlMt to any fool'lrnl, ntate or
local statutes are solely tilO QJrllllUltant's roopoIVlibility nrd t.he
consultant hereby agrees to iOOmnify IUd hold hRrmlll8S tile O:I1PUlY fran
any arYl all liability therefor.
IIRI'IClJI: VI I
~JRllW
7.l 1be waiver by the COlpmy of a broadl of any provlslon of \:.his
I\qL-",.ent by the consult:."1nt shall not ctJ8nlt8 or be l'OlVltru(!(l l'IS a wnlver
of any subsequent breach by tile Conmlltant. tlo walver nhllll be vlIl1d
unless in writirg IlId signed by an autilOrized officer' of tile CcI1fX\ny.
lIRl'IClB VIU
~..lItYWUlD
S.l 'llle invalidity of any portion of \:.his hJL...A\lIltIt will not l\rxl shall
not be de!!llllld to affect the valldlty of /lilY other pravinlon. In tire event
that any provision of tilis I\qL.,.,.,.ent in held to be invaUd, the parties
agree that the remainl,rg provisiOl1fl nhall be d_..al to be in full force
and effect as if they had boon executEd by botil parties I!I\Ibooqllent to the
8llp.Irg8ll8IIt of the invalld provislon.
NO'IClB IX
UIU.<.1LQUM
9.1 It is tile intentlon of tile pt\rtletl to tilis Agreement ti1at \:.his
ft.o,jU!EflleIlt aR1 the performance p.:nruant hereto I'Ird all wits and speci"l
pr<lCJOOdin;JS under this Agleftlll!llt be oalStrued in acron1ance with, W'der
aR1 p.trBUIII1t to the lllWll of tile ~lt.h of ~l1IlI!I)'lvanlll ard that, in
any action, l'h..oe&..llrg or nuit tilftt mlght be brought arising wt of, in
UAd.ection with, or by reason of thls 1Iqr1!'Ellll!l.t, the laW'll of ti1lil
Ca1IIl.:lr1Weal\:.h of IWnIylVMla NlIIll be awllcllble "00 shall govern to the
exclusion of the law of allY oUter forun, witilOOt ngam t,o the
jurlscUction in which any IIcUon or I!IJJecilll plUl'I!Ullng !MY be instituted.
'llle parties further agree that VE'nte for p.lrl.olK'il of this Agreement shall
be C\mtJerland caJnty, I'enrlI!Iylvarlia.
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NU'lC1B X
wwn r1(M'lQf
10.1 '!hie "':I.....,..t represents the entire 1IoJ.....nent bstl'J1len the
<::a1pII1y IU'd the O:nJultant. No mcxIlficatioo of this 1IoJ.....,.lt is valid
unless it i. in writing ant signed by tho parties hereto.
NU'IC1B XI
. :::, t'~ f"''jd
11.1 Prior to receipt by C'a1pmy ard WillillJlll of radon licenses, this
J\grellment is fUlly lISSignable by the CcI1pII1y without the consent of
annutant and shall inure to the benefit of III1Y lISSignee or their legal
Sl1OOePgOr in interest of the OCI1pIl1yl thereafter, this 1IoJ",,,,'l8I'1t may be
assigned by tolpmy, but IllUd1 assignnent shall not be effective withoot
the prior written consent of O:n!lUltant, ""ich consent will not be
unreasonably withheld. If OJnsultant refUses to consent then he shall
forfeit all rights to payments uOOer this 1ly.....,l8I'1t.
11.1.2 1he Consultant leo::lgl.lzes that this lly.edll8l'1t is personal to
the OJnsul.tant ant has been executed with him based upon his individual
ownership of the Ccm1DrM!alth of PenrEylvania License No. f' which
permits radon t.esting ant radon reductioo in the O::moonwealth. Based upon
the representations of the CbnSUltant as to the personal nature of his
licensure and of the personal efforts to be made by the Consultant in the
radon testing an) radon l"E'ductioo efforts of the tolpmy, it is agreed
that any assignnent or attenpted assignnent by the O:lI1sUltant of his
CcrmalW'ealth of Pennsylvania Licerme No. ?? am the duties the
annutant has urdertaken p.u-suant to this hj...ul11ent shall be null ant
void am shall permit the cmpany to iI1Inediately terminate this 1\greement.
NU'1ClF. XII
.IJ\IWJWDl
12.1 'lhe titles to the paragraphs of this hj''''''''l8I'1t are solely for the
convenience of the parties am shall not be used to explain, mcxIify,
sillplify or aid in the intelJlretation of tOO provisions of this J\greement.
IN 1fl"1RglB NW<UJI'", the parties have executEd this "':Ileanent this Ute
1 day of, 1/)"',,1.'), , 199.t.
M'l1Sl':
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BXHIBIT "c"
-
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-
...
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/1/0. '/I):J,
{l,'l/I "
n"y
,
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nUUW!.l<<..~
$200,000.00
1~lrri,yltq, ~lvonla
rnw:.:J.f!.t4.j'l_'i/ _
, I~ul<
[;,1-1.,tt.
ftR V1\I.UB mn;:t..J" James Anthony willlllJlll, an irrlividtk,l of
Miller's GIIp 11bnd, -HedlBllceaJr'lJr Pennsylvania, (the "1JoITClW(lr") hereby
pran.ises to pay to RellCXJ':J DIVirorancntal Services, Inc. of 4705 Trirrlle
Road, HedlImi~u-q, PA, a PE>/lMylvania oorporntion, and ruwant 11'. KellCXJ':J
am Mary B.P. RellCXJ':J of 816 I\nthony Drive, ~~Irg, 1'/\ 17055, as
their interests may IIrpear (the "Payeo" I , or ardor, in lawful money of the
United states of /\meriel'!, the principal !IUJll of 'IW 1l.nhuJ 'JtnJs.'llJJ
Dollars ($200,000.00) (thc "principal sum") wlthoot interest.
'lhe principal mun shall be due Ard (nyable as follCM1:
(1) OarllTCn<:lng Februnry 1, 1992 I'll}'] e.xil ~lI<xefl,~ivc montJI
therenftcr clurilYJ cnlerdar yenr C'nlIJYj !h:emner 31, 1992 tho 6lU11
of $3,500.00, for n toto,l of $38,500.00:
(2) Con1/11('-I1CinJ <lrllluary 1, 1993 rod end. mollth UI'1l'C'.:t(ter during
calcrmr year errllng DeoerrI:Jer 31, 1993 the sum of $7,500.00, for n
total of $90,000.00:
(3) O:moollcirg ;JillJl.lary l, 1994 one p<,ymcnt of $5,500.00 due on
that date nnd oatIOOllCing Febru.'l.ry 1, 1994 ilnd eadl sucx.'Cssive
roonth the.reafter cJurIlY;/ cale.nJar year ending IJeocml:x>r 31, 1994 the
sum of $3,500.00, for a total of $44,000.00: and
(4) Ccmooncll-q January 1, 1995 roD each successive month
thereafter ending enlirg SI:'l',b"ll1ber 30, 1995 tile S\U11 of $3,500.00
and on Octctler 1, 1995 ono payment in the aJoount of $4,050.00, for
8 total of $35,550.00.
'JtIis Note lIk"\Y be prPpo.lid in Whole or in p;:Irt at allY tinlC ancJ fran
time to time. Payments hereurxler slk"lll ro J1\"\de c/o F.dwi:lrd \il. Y.ellogg,
4705 Trindle Road, Mechanl~, Pennsylvania 1.7055 or at such othe.t.
lcr..ation as the holder of thl!! Note """lY cJe.'llgl1ate to the IJorrower.
1tle cx:currence of any of the follCMlng events shall =nst!tute an
"Event of Default":
(1) rai lure of Ilcwr<:JIorPr to p;:Iy ml)' mrol.lnt payable IIN-eunlet-
witilin flftC'Cn (151 bJsiner!1 cJ<lY!l of when due:
(21 Failur'f' of f'on't:M:!r to Ot.'(',erve mrl pc>rf,onn IIny c:\?v('nant or
aytwlI..nt. cUlltahlEd III the III:JI't!<'I1lCllt' ltlte<l !!':.!.v.'J'.':c....::.1..../i.'JI.__...
annq thc portie!'!.
l'pon tile cx.x,1.lrnmou of illl "E.v('llt of Lefalllt", U\C f'ayeo:', Il111Y at
his qJtion declare the entire bl'lll1nce of prlncipnl of tills Note to bo
, .
.
..
..
~ .. ..
PI8CLO'.l!J\1 1'0R~.JlIQlf OP J~
I AM EXECUTING, TillS I DAY OF ~r'l"o,l'"
/
NOTE FOR $200,000.00 ODLIGA'l'lNG ME TO REPA'i THA'I'
I UNDERSTAND AND HAVE IIAD EXPLl\INED '1'0
, 1992, A JUOGM~~T
AMOUN'r. INITIAfLSA/Y
/
1m '1'1111'1' 'I'IIE N()'['E CON1'A INS
WORDING THAT WOULD PERMI'I' KELLOGG ENVIRONMEUTAI, SERVICES, INC. TO ENTER
JUOGHEN'r AGAINST ME AT TilE COUR'l'1I0USE, WHETHER OR NOT SAID NOTE IS IN
DEFAULT, WITHOUT NOTICE TO ME AND WITIIOUT OFFERING ME AN OPPOR'l'UNIT'i TO
DEFEND AGAINST THE ENTR'i OF JUDGMENT, AND 'l'HAT THE JUDGMENT MA'i BE
COLLECTED B'i AN'i LEGAL MEANS. INITIt,:~~i',!.::'J.J
IN EXECUTING THIS NOTE;, I KNOWINGLY, UNDERSTANDINGL'i, AND VOLUN-
TARIL'i WAIVE M'i RIGHT TO RESIST THE EN'l'R'i OF JUDGMENT AGAINST ME AT THE
COURTHO~jl~D I AM CONSENTING
INITI^~
C
I CERTIF'i 'I'HAT I HAVE HAD
TO THE CONFESSION OF JUDGMENT.
/ ~.
'iEARS OF SCHOOl" THAT I HAVE
INCOME OF MORE THAN $10,000.00 PER 'lEAR, AND 'I'HAT 'l'HE BLANKS IN THIS
DISCLOSURE WERE FILLED IN WilEN I INI'l'IAI,ED AND SIGN~,r,> IT, AND THAT I
RECEIVED A COP'i AT THE TIME OF SIGNING. INITIALS :// It',,!;')
/ ,/" 7 '/( .
, /1amo/~~;i~~;~fIir~~-~
1._'/ 1__..............
.~'..',,,,.....tI"..:....,.H'I!"'''..........~., ........t:;'1I'1"..'........_., .'........4. '..I"....'I...,.~~'n
(SEAL)
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(b) Paragraph 2.:l.:J 13 (2) (4) of the Agreement and
subparagr.aph (4) of the /laid Promissory Note shall be amended and
replaced by the following:
(4) commencing 011 Januar.y 1, 1995, and each successive
month thereafter ending 011 March J l, 1996, the sum of
TIIREE THOUSi\ND FIVE IlUNDHED DOLLARS ($3,500.001 and on
Apr.il 20, 1996, one payment in the amount of FOUR
TIIOUSl\llD FIF'l'Y DOLLi\HS ($4,050.00) 'lltall be paid, for a
total of FIF''l'Y-SIX 'l'HOUSi\11D FIVE HUNORED FIF'l'Y 1J0(,1.I\I($
($56,550.00) .
(cl This i\mendmnnt will l"l1dllCIJ l:1w l1al<llIl.';" of the plIrchd'H"!
pric'! due Kellogg Environment".!. Servic"fl, 1Ile., and/or EcJw<H'd V.
Kellogg and Mary E:. Kellogg, pursuant to !laid Agreement dated
November 8, 1991 and Promissory !lote dated January 1, 1992, by the
total sum of TWENTY-SEVEN 'l'1I0USi\ND DOLLARS ($27,000.00) and
paragraph 2.:).:) (B) (2) !lhall be deemed amended hereby and reduced by
said amount. The partie!l hereto agree that all of the terms and
conditions of the Agreement dated November 0, 1991, and Promissory
Note dated January l, 1992, not amendnd as herein provided, shall
remain the same.
2
...
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COMMONWEALTH OF PENNSYLVANIA
COUNTY OJ' CJ..., fYlbe..r- \ (\flcl
~ 0(\
ON THIS, the .f2L- clay of
I
I sa.
~,
1.993, before nlC,
" notary
~ublic, the undersigned officer, personally appeared MARY E.
KELLOGG, known to me (or satisfactorily proven) to be the person
whose name is subscribed to the within instrument, and acknowledge
that he executed the same for the purposes therein ccntained.
IN WITNESS WfiEREOF, I have hcrountp set my hand nnd official
seal.
.
'-fullilli.O_O_2DD.u. f.:IJ
Notary Public
f--- -
Hy Com i~T~8d:rm~~NlIIc
Camp tlil!, CI"nberl~nd Counl,
My ~s~~on E:<p~es Mlrch 11. 'M
COMMONWEALTH or PENNSYLVANIA
COUNTY OF c.utf)~\cl.nd
.-":)11(,\ ODr\ \
ON THIS, the ~ dny of ~1,
99.
199J, before me, a Notary
Public, the undersigned officer, personally appeared KELLOGG
ENVIRONMENTAL SERVI 'JES, INC., by EDWARD V. KELLOGG, Pres ident, and
Mary E. Kellogg, Secretary, known to me (or satisfactorily proven)
to be the person whose name is subscribed to the within instrument,
and acknowledge that he eXl'cuted the snme for the purposes therein
containl:!cl.
IN WITNESS WIlF.IlF.Or, I have herE'unto set my hnn<l and offh:JaJ.
sE:'al.
~fL~.L:-:~~~&
Notary PUblic
My
C
, NQIAAW. SfAl
I<A IlILUH A. MVIS. PillaIY PlI)llc
~p HiI~ C,,",,*1Ild CGu!Q".,
at, CGmIISQI ns""'.
'I
.jnl};:!~~~;I(~?t, '~:'~~1.\~:,~1I1!a,~ ~'M"{t\&'.. t);,~" ,iI';II" " .1' I;',
. '. - 'I ro~r _'/I\i,rIJ[.r.!" ~~, _' :t,.'~J .rl...,. f:'1Ii. '..,
. "lI'\1.'I"",,:I,'d~...., J ,PL.Iil. ~~i" 1;'""-,',,, ::Jr.'ji ".."
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.
PlNNSYLVANIA
DIE!rCR
COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF ENVIRONMENTAL RESOURCES
"uranu of Rndiatlon Protection
Post Offico Box 8469
IInrrlflburq, P^ 17105-8469
Aoptomhor 22, 1991
(71'1) 783-3594
.~e.r.tUJ.JuI.JIo.U
Mr. James A. Williams
williams, Inc. DBA/Kellogg Environmental
Services
4705 Trlndle Road
Mechanicsburg, PA 17055
Dear Mr. Williams:
'l'he certif iert indi vidual testing and mitigation agreement
we have on file between Mr. Edward l<e llogg and yourself, is no longer
valid. Mr. Kellogg's testing and mitigation certifications
were not renewed and expired on July 19, 1993.
Your firm was required to notify us of the loss of your
certified individual within five days as specified in 25 Ph. Code Ch,
240, ~ 240.102(b). And, most importantly, as specified in 25 Pa.
Code Ch. 240 ~ 240.102(bl, until you supply our Department with a
certified testing and mitigation agreement between yourself and a
certIfied testing and mitigation individual, your certification for
both tpstinq and mitigation have lapsed and are void. You must
therefore i~.iJJ.t..e..1Y-.Ce"fI(l all rndon testing and mitigation
activities until your new certified individual agreement is
acknowledged in writing as being rac:eived and nccepted by our
Department.
Plense submit your new certified testing and mitigation
individual agreement to our Department within 5 days and use the
enclosed at a minimum guidelines to ensure thnt your agreement will
meet all requirements.
Should you have furthE'!r questions or concerns please
contact me.
Sincerely,
i.-~U--, l....'-..~.._;;.
l<ellE'!Y M. lIoney
Rn,llation lIenlth Physicist
Rnrlon IJ i v i F.\ on
An Etfu"t O'lpor'"f1lty/AlfirmBtive Actlnn Emf)toypr
".cycl.d ......' ..~
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EXHIBIT "F"
...
GAR~SZ ExcIWATlNG,iNC.
P.O. Bolt 148 · rhillpsbur'l, PA 16866
(814) 342.7281
FAX (814) 342.7288
.7un. 11, 1993
. .
, '
8UIJI~TI Lett.~ of Intro~uction
D.ar ProspIQtivI cufttomer:
~.~,"B rx~a~atinq Ine. is In .xe.vatin, I petrol'u.
Inltal11tiQn c~mr.ny Involv,~ in all fl.1~t ~el.tin, to th.
petroleum indu.~ry.
w. have in our elllploym.nt: pl'ot'..i1onu~ D. P:. R. CrRTUIED INITALLlW'I.
WI UIO ,.ploy rrof~ulQndl in all t:radu of the eonttruotlon
inlotuttri.. ,
our ered,nthla an primllt't 'y in thf pe\:roh1, ';'l<lu.hy. To ,lve
'\lIt a few lKalllpl.., Wft hAve cOl"l'ltt'd tht'l r(l~ ,"':' of 'PP~oKbla\ely
UO fuel tank., oomplot\H! e ,"lIjor rtl"odoh, (\f,' . .1 eon.i.teel or not
only the rftnovIl and 1n,tllllatlo" of the tllnk~, but .1'0 pipin,
involved) a. well .. dlAp~nser8 I canopy 1nAtallation. on' 0' the
nator rtm04el. m'ntion'~ wt hllv, 11'0 totally rtoon.truott4 tht
bu lIti"". All of the ,"ent.iontd up.et. of worle have b..n
cOMplet.d in the l..t 12 month..
At 'hi, ~lme I would _1.0 like to mentiun that wt work very clo..11
with and have . ,uJ1ub budne(ll!l t'41llUon.hip with an tnvlrontn.ntt
eOlll,any.
oar,a.. Excavatin9 InQ. i, ~ con.e!.nt1oua eompany eono.~n.d with
m.kln, ..rv1ca to the cu.~om.r 8 '1 priority.
1 hlv. attaoh.d a Ult of 1.Iy ..U .riftet (Hllltomflt'S. Al.o inCllud.d i.
I oo,y ot our eo~p.ny" certification document. Wh.n you ar. In
ne.d of .01'8 In'otlneHon pl...., ,lve our e01lpany a Cllll at the
huftl))6t' 111t.&.
~..,ee~fu"y .ubmltte~,
Davld !. Q~f1"1
"
~ ~ ~ . ~ -
rnlln'3',:'''''' "EO I~'~;! IlltllEI.Hflll fl';sn,:rnlEji r( Ti.'{liiF,iJi~.a. .a. ~N./?n."'J r02
,( OAROASZ EXCAVATING, INC."'.
,\, ,,",...l) ~h\..
P.O. Box 146 . Phlllpsburl. PA 16888 ~
(814) 842.7261
P'AX (814) 342.7285
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"I,rl'bur',.a "0"
e711' It'- "0
~t'D' "~. lob..rr.~
NtJo~" Olfl.1 of WeoDoslo Dev.lop..at
ct" 10Y'W~'ft' Ola'.r
10 M M.wk., 'tutl.
..rr~.)ur9,'A 11101
.VIJIOT. .topo.tl '771
,tt. .....t.tloD
.'rYlt. '.okl~w 00. .It.
1111-11,' I. aa..roa .\
.t~~l'b~~" 'A 17101
D6.r Mr. Ib,.ff'tl
'I'll. foUevin, it our propoll1 for rllDovb, .U .....dlu,
__",Ial' froID the .ubjeot .It.. w. ~.v. vl"l'.. 'h' .1'. IDI
rlvl..I. tb. .ooum.ute pr.p.r.. by K,lbam ~"ool.,...
~A.ol IJ~ Tb. bt.lr4ou, .,',rlll. II.n'tfl'l Oft 'bl' .at.
.111 b. r..ov.d two. t~. ni" Ina allpo". of 1ft oo.,lll'o' vi"
tbl II IIUI Itl u9UU\lonl. TU" aaUvlU.. .Ul lnClI"" u"
paa_iftt tb. a..ll qu.~tltl.., p~plDq .nd 41lpo'll of 'ba .1'"
ru.l 0 1 aD. .otor Oil, removal IDa dlnpo"l of 'bl "b..,.. Iftl
lab ,.a~lD9 'bl .el ooftt.1Dln~ ~'11..t8.
'ht ~D..r9~ouna ator.,' T.ft~ wlll bl re.oy'. IDI aD' OOD'''.''''.
.011 vll1 be traDArerte. to . 11~cn". ~011 tr.at..n\ f'.111',. I
V'" olatUn ..,or ",lIl ba oOIDphh4 u r.quh" Itr ,... .1 Dill
.Uit'liD...
.lI11h-.U....'.}l m...ur.. vil1 lnelua. 40 hr~ ,.f"1 tulll"'.
"0,1. on-lite. nay aro tr.lnea in UI4 hnc11h" ,...,1."1
..tuh!. .
._,.-r-. . ..-.
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Inll,(I'5-',?II'If:f1 12,',11 1l""rLllnll ns".o.:lnrrs ro: TFL ,ml717'2~o;'2o;OO
.
n?(t'5 ro 3
bal.iDa DII,o"l ot till "UU th.... .'f ....,.11'. .UIU...1
tt.lfI[ftj, ADy .uoh 00'" .rt IDoludta la ~bl. ,~o,'.'I.
QuW.1H.l1fuaa CluV'" ..oa"U:ln9 !Do, At "'1 oerUflU VI!
oODhao\oi;--oul' cuU b "0. Tille n~tUlo*UOD 00"1" ""
l'"oV'l ad th,oeU of tilT hnlll. ,....' nqvlll'_ tn'\lI'&DO.',
hll4h, oapulUU.. ...4 ...ltuac.. .... n.haltU U,OD l'.t'I.... ".
h..o r...v.<< OU" 100 ~''l' "ft~. 10 tb. 1.., 'h~.. "'1" aDI '.v.
r'.041a'.. .......1 .1'.. al.11.t to 'Ill. .It,.
IRkIAY1t 'l'hl. projoot woUld bl co.pllto. lh oal ""l. Zf 'bo
WOI'1l:li '\ltbo~l"d to 1110W coapl.tloD in J\lly " . 10~ 1"'\10\1..
.110.'DO. I. ofr'~'d.
1-'.' a..,_ II.ilub
'Ito el,.a-up - .t191h9 of .at.rlll' .'000,00
'ump, Tr.atpo~'.tloh .nd 41.'0'11 Witt. II~ld 1000,00
VI'l' .,.ovll '~OO.Oo
OI..u.I -.pOI"
'011 roaov'l (ooftt..ift.'e~) 100 toa "O.OO/ton
l.~..to. a..oval
01.an lit. ..port
Hho. 'l'..th,
Lib pao~lft~, Mlalf..tlnw, Ita.
,.~l'., 'o\~'le.tlob'
1daI, lU_bLa,.,.
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JAMES ANTHONY WILLIAMS and
REAL ESTATE ENVIRONMENTAL
SERVICES, INC., SUCCESSOR
CORPORATION TO TONY WILLIAMS,
INC. ,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
Plaintiffs
v. NO. 94-5355 CIVIL TERM
EDWARD V. KELLOGG; MARY
E.P. KELLOGG; KELLOGG
ENVIRONMENTAL SERVICES, INC.;
JOHNSTON SPECTRA LABORATORIES,:
INC.; and JOHNSTON CIVIL ACTION - LAW
LABORATORIES, INC., JURY ~RIAL DEMANDED
Defendants
CERTIFICATE OF SERVICE
I, John F. King, Esquire, hereby certify that on
October l4, 1994, I served a copy of the within preliminary
Objeotions to Plaintiffs' Complaint, by depositing same in t.he
United States Mail, first class, postage prepaid, addressed aa
follows:
John F. Lyons, Esquire
Connelly, Reid & Spade
P. O. Box 963
Harrisburg, PA 17108
FRIEDMAN AND FRIEDMAN, P.C.
~tC" :-}l<
John F. King, ESduire
ddo N. Second sireet
Penthouse suite
P. O. Box 984
HarriSburg, PA 17108
(7171 236-8000
Court ID #61919
WIX, WENGER AND WEIDNER
")
,f\~..A A' .'~p
Da~Id R. Getz, Esq re
508 N. Second st.
HarriSburg, PA l7l0l
(7l71 234-4182
Court 10 #34838
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.JaIIU all'l'll0IIY IILLIAIUI ea4 ,I. H' cova., 01' COIIIIOIf >>LDI
IlUL U'fa.,. anaowWftu. ,CUU'.LAIII) COVll'l'Y, .....YLVUfIa
...ncu, I.C., .vcc...oa ,
GOaIOM'fIOll '1'0 '&'OIlY .ILLlaJUl, ,
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.leiatiff. ,
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V. , .0. 14-5355 CIVIL 'fDII
,
.-uD V. a.LLOQQ ea4 IlUY ,
.... IILt~, ia4ivi4ually .a4,
joiatly, &Il4 alLLOQQ 8191- ,
'0IM~u. ."VIC'., I.C., 'CIVIL ACTIO. - LA.
Defea4aat. , JURY TRIAL DIKAKD.D
.~IC' TO DII'IKD AXD CLAIM RIGHT.
You have been aued in Court. If you wish to defend againat the
claima eet forth in the following papers, you muet take action
within twenty (20) days after this complaint and notice are
aerved, by entering a written appearance personally or by attorney
and filing in writing with the Court your defenses or objectiona to
the claima aet forth against you. You are warned that if you fail
to do ao, the caae may proceed without you and a judgment may be
entered againat you by the Court without further notice for any
money claimed in the Complaint or for any other claim or reliet
requeated by the Plaintiffs. You may lose money or property or
other righta important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF
YOU 00 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.
Court Administrator, Fourth Floor
CUmberland County Court Houee
1 Courthouse Square
Carliale, Pennsylvania l7013-3387
Telephone I (717) 240-6200
~
IA han demandado a ueted en la corte. Si uated quiere
defender.e de estaa de.andae expue.tas en laa paginaa aiguientea,
uated tiene viente (201 dias de plazo al partir de la fecha de la
de.and. y la notificacion. Usted debe pr~aentar una apariencia
eaerita 0 en peraona 0 por obogado y archivar en l. corte en fora.
e.erita eU8 deten.aa 0 aua objeeiones alas demand.a en contra de
au peraona. Sea aviaado que .i usted no se defiende, la eorte
. .
- .
I. '1'.1 con'l' o. 001III011 'LU.
CUIUIIRLUD COUll'1'Y, .....YLVUIA
.1at.aUff.
v.
.0. '4-5355 CIVIL '1''''
.OWUD V. .ILLOCKI ea4 MUY
.. ....LLOGG, la41v14ually
jolatly, ea4 .ILLOGG IMVI-
aOIDlD'l'AL ...VICI., I.C.,
Oetea4eat.
CIVIL AC'I'IO. - LAW
JURY TRIAL DIIIAIlDIO
AllIIIDID COMPLAINT
COKa' .OW, Plaintiffs, James Anthony Williams, individually,
and Real Estate Environmental Services, Inc., by and through their
attorneys, CONNELLY, REID' SPADE, by John F. Lyons, Esquire, and
respectfully represents and avers as follows:
l. Plaintiff, James Anthony Williams (hereinafter referred
to as "Williams"), is an adult individual, with a last known
address of P.O. Box 1921, New Kingstown, Cumberland County,
penn.ylvania l7072.
2. Plaintiff, Real Estate Environmental Service., Inc.,
(hereinafter referred to as "R.E. Environment"), i. a pennsylvania
Busine.. Corporation, with a current mailing address of P.O. Box
1921, New Kingstown, Cumberland County, Pennsylvania l7072.
3. Plaintiff, R.E. Environment, is the .ucce.sor corporation
to Tony William., Inc., a Pennsylvania Business corporation and a
party to the Written Agree.ent. which are the .ubject .atter of
thi. litigation and .ucce..or corporation to the right to u.e the
corporate name, Rellog9 Environmental Service., Inc..
4. Tony William., Inc. and James Anthony Williams, a..igned
ell their right, title and intere.t in the Written Agreement. which
fora the .ubject matter of thi. litigation to Real I.tate
Environmental Service., Inc..
5. Defendant, Edward V. KelJ.ogg, is and adult individual
who.e la.t known addre.. i. 816 Anthony Drive, Mechanic.burg,
Cumberland County, Penn.ylvania 17055.
6. Defendant, Mary E.P. Kellogg, is and adult 1ndividual
who.e la.t known addre.. i. 816 Anthony Drive, Mechanic.burg,
cumberland county, 'enn.ylvania l7055.
7. Defendant, Kellogg Environmental Sel'vice., Inc.,
(hereinafter referred to as "KES"), is a penn.ylvania Bu.ine..
Corporation, with ita la.t known registered office located at 4705
Ea.t Trindle Road, Mechanic.burg, Cumberland County, Penn.ylvania
17055.
8. At all time. rel.vant hereto, Plaintiff. believe, and
therefore aver, that Defendant, Edward V. Kellogg, either
individually or in conjunction with Defendant Mary E.P. Kellogg,
own, .anage and operate a bu.ine.. entity known .. John.ton Spectra
Laboratorie. with a la.t known bu.ineas with a la.t known bu.ine..
addr... of 4705 Ea.t Trindl. Road, Mechanic.burg, Cullbarland
County, penn.ylvania.
.
9. plaintiffs beli.v., and therefore aver, that D.f.ndant,
Edward V. Kallogg, .ith.r individually or together with D.f.ndant
Mary I.P. Kellogg, own, op.rate or manage a P.nnsylvania Business
.ntity known a. John.ton Laboratories, Inc. whose last known
busin.ss addr.ss is 4705 East Trindle Road, M.chanicsburg,
cuaberland County, P.nnsylvania.
lO. Alt.rnatively, Plaintiffs believe, and th.refore aver,
that D.f.ndant, Edward V. Kellogg, is an employ.e, officer,
dir.ctor, ag.nt, consultant, shareholder, manag.r or in control of
the op.retions of Johnston Spectra Laboratories, Inc. and/or
John.ton Laboratories, Inc..
11. At all tim.s relevant hereto, Plaintiffs believ., and
th.r.for. av.r, that Johnston Spectra Laboratories, Inc. and/or
Johnston Laboratori.s, Inc., under the direction, op.ration,
.anag...nt, own.rship, or control of Defendant, Edward V. K.llogg
and/or D.f.ndant, Mary E.P. Kellogg, have engaged in the
p.rformanc. of .ervic.. in the nature of radon testing and radon
reduction within the counties of Dauphin, Cumberland, Perry, Ada..,
Lancast.r and York, P.nn.ylvania (hereinafter ref.rr.d to a. the
"Restrict.d T.rritori.s"l .
l2. On or about Nov.mber 8, 1991, Plaintiffs and D.f.ndant.
K.llogg and D.f.ndant KES, entered into a Writt.n Agr....nt
entitl.d Sale of As.et., Non-Competition and Indep.ndent Contractor
Agr....nt (h.r.inafter r.ferred to .s "Sale of A...t. Agr....nt",
3
a copy of which i. attach.d h.r.to and incorporat.d by r.f.r.nc.
th.r.to and .ark.d a. Exhibit "A").
13. Und.r the t.rm. of the Sale of A...t. Agr....nt,
plaintiff willia.. wee to purch..e and Defendant. X.11099 and
D.f.ndant XES w.r. to ..ll, inter AliA, all of the a...t., tangible
and int.ngibl., us.d .xclusiv.ly by the bu.in..s own.d by
n.f.ndant. 1(.11099 and known and operating as Kelloqg Environll.ntal
Servic.. in the providing of residential radon t..ting and
r.duction ..rvic...
l4. The .al. and purch.s. of assets involved all the ....t.
including goodwill r.lat.d to the residential real ..tate ..rvic..
and activiti.. divi.ion of XES including, but not limit.d to, radon
t..tinq, wat.r .nd ..ptic system certifications, house in.pection.,
.nvironm.ntal audit., termite inspections, contracting including
painting, maint.nanc., concrete slabs and electrical, sump pit/sUllp
pump installation .nd r.pair, asbe.tos removal, hazardous wast.
remediation, tank support. services. (The assets and busin.ss
..rvic.. ..t forth herein are collectively referred to a. "Radon
Te.ting .nd R.don Reduction" hereinafter and as referred to in
paragraph l.l of the Sale of A..ets Agreement which i. incorpor.ted
h.rein by r.f.rence as if fully set forth herein).
15. At the time of the pUl'chllS. and .ale, Defendant. were
providing r.sidential water sample pick-up services and r..idenU.l
vat.r and airborne radon t..ting servic.R .. part of the
4
re.idential radon t..ting and remediation bu. in... activities of
the bu.ine.. purcha..d by plaintiff..
l6. At the time of the purchase and .ale, the parti..
int.nded to tran.fer all of the re.id.ntial bus in... activiti.. of
KES to Plaintiff.
17. At the time of the purchase and .ale, the parti..
intend.d that the D.f.ndant would refrain from providing co.p.ting
..rvice. within the Re.tricted Territories in all aspect. of the
bu.ino.. activities and services previously rendered by Defendant.
through it. r..idential .ervices division.
18, In addition to the assets set forth in Paragraph 14
herein, Plaintiff Williams purchased and Defendants Kellogg and KES
sold, all their right. and interest in thti name "Kellogg
EnviroNl.ntal S.rvic.s, Inc." and any derivation thereof, pur.uant
to paragraph l.1.8 of the Sale of Assets Agreement.
19. At the time the parties entered into the Sale of A...ts
Agr.ement, D.f.ndant Edward V. Kellogg was the hold.r of a
Co_onw.alth of Pennsylvania Radon Testing and Remediation Licens.,
number 96.
20, On or about January l, 1992, Plaintiff, Tony William.,
Inc., and Defendant, Edward V. Kellogg, entered into a written
Ind.p.nd.nt Contractor Agreement (hereinafter referred to a.
"Consulting Agr...ent". A copy of the "consulting Agr....nt" is
attach.d h.r.to and incorporated herein by reference and .arked a.
5
Exhibit "a",
2l. On or about January 1, 1992, in order to .ecure the
payaent of the balance of the purchase price owed to Defendant.
l(el109g and I(ES under the ter.. of the Sale of A..et. Agreement. and
Con.ulting Agreement, Plaintiff Williams executed a promie.ory Note
(hereinafter "Note") in the amount of $200,000.00. (A copy of the
Note i. attached hereto and marked as Exhibit "C") .
22. On or about April 2, 1993, Plaintiff Willia.. and
Defendant. I<ellogg and RES executed an Amendment to the Sale of
A..et. Agreement and the Note adjusting the payment term. and
reducing the total amount of the purchase price but pre.erving all
other terms and conditions of the Sale of Assets Agreement and the
Note.
23. pur.uant to paragraph 4. l. 16 of the Sale of As.et.
Agree~ent, Defendants Kellogg and KES, jointly and severally, and
as the shareholder. and owners of all the issued and out.tanding
.hare. of Defendant, I<ellogg Environmental Service., Inc., agreod
not to compete, either directly or indirectly, with Plaintiff. in
any bu.ine.. involving radon testing and radon reduction, a.
defined in the Agreement., in the counties of Dauphin, Cumberland,
Perry, Ada.., Lanca.ter and York, Pennsylvania (hereinafter
referred to a. the "Re.tricted Territories"l.
24. The Sale of A.sets Agreement, conSUlting Agree.ent,
promi..ory Note and the Amendment to Sale of AIset. Agreement are
6
hereinafter collectiv.ly ref.rr.d to as the "Agr..m.nts".
25. Pursuant to paragraph 3.l of the Consulting Agr....nt,
Edward V. R.lloqg, individually, agreed not to engag. in any radon
te.ting and/or radon r.duction activiti.. as d.fin.d in the
Agr....nt. unuer Commonw.alth Lic.nse No. 96 during the time of the
Agr....nt in the r.stricted territories.
26. Pursuant to paragraph 3.2 of the Consulting Agr.em.nt,
Edward V. I<.llogg, individually, agreed not to co.pet., .ith.r
dir.ctly or indir.ctly, or affiliate in any mann.r with a busin..s
competing with Plaintiffs for a period of thirty-six (36) months
aft.r t.rmination of the agreement, for whatever reason, in the
restricted t.rritories.
27. Pursuant to paragraph 3.4 of the Consulting Agreement,
the value of the cov.nant not to compete was s.t by agr....nt of
the parties at $l29,000.00.
28. Pursuant to the t.rms of the Agreements and Promissory
Not., as am.nd.d, Plaintiffs made the agreed upon monthly paym.nts
until such ti.. as D.f.ndants failed to maintain the Commonw.alth
Lic.ns. numb.r 96 and comp.ted in the restricted t.rritori..,
contrary to th.ir Agr....nts.
29. Pursuant to the terms of the writt.n Agr....nt.,
Plaintiff. c.as.d the monthly payments on or about January, 1994.
30. Und.r the terms of Written Agreements, D.fendants
obliCJat.d th....lv.. not to comp.te in the r.sidential radon
7
te.tinq and radon reduction business activitie. within the
re.tricted territories for an additional period of three (3) year.
.ub.equent to the termination of the paym.nt., for any rea.on.
3l. Pur.uant to the t.rm. of the Sale of A..et. Agre.ment,
Promi..ory Note and Consulting Agreements, as amended, the
Plaintiff. have fulfill.d all th.ir pre-conditions and p.rformed
all the Obligations.
32. On or about July 19, 1993, Plaintiffs believe, and
therefor. aver, that D.fendant, Edward V. Kellogg, permitt.d the
radon te.ting and mitigation certification, No. 96, to .xpir.. (A
,opy Qt the Notification from DER is attached hereto and
incorporated by r.f.rence thereto and marked as Exhibit "D").
33. Plaintiffs b.li.v. as h.reinb.for. .et forth, and
ther.fore aver, that contrary to their covenants not to comp.te,
Defendant., Edward V. Kellogg and/or Mary E.P. Kellogg, .ither
directly or indirectly, or by the management, control or
supervi.ion of bu. in... corpot'ations known as John.ton Sp.ctra
Laboratorie., Inc. and/or Johnston Laboratories, Inc., or by
a..ociating th....lv.. with other business entiti.. Pl'oviding radon
te.ting and radon r...diation services, are competing with
Plaintiff. in the R..tricted Territories.
34. Plaintiff. believe, and therefore aver, that Def.ndant.,
Kellogg, have through th.ir ownerShip of the share. of .tock of
John.ton Spectra Lab. and/or Johnston Labs or through their control
8
over the ..nage.ent direction and operation of Johnston Spectra
Labs and/or Johnston Labs have directly and indirectly co.peted
with Plaintiffe in the restricted territories by conducting
residantial water .amplinq pick-up and testing which constitute
radon te.tinq and r.duction services under the terms of the
understanding. a.ongst ~he parties.
35. Plaintiffs believe, and therefore aver, that Defendant.,
Edward V. 1(el109q and/or Mary E.P. Kellogg, have through their
owner.hip of the shares of stock of Johnston Spectra Laboratorie.,
Inc. and/or John.ton Laboratories, Inc., or through their control
over the manaqe.ent, direction and operation of such companie., or
in association with other business entities, violated their written
Covenant. not to Compete with PlaintiffS within the Restricted
Territories by providing radon testing and radon reduction service.
in the nature of picking-up of residential water .a.plings and
engaging in other prohibited activities, including but not limited
to the following:
a. Ebener Realty: Property owner Walters, 4263 Carlisle
Road, Gardener., CUmberland County, Pennsylvania;
b. Realtorl Detweilers, Inc, property owner Wagner,
location, 5650 Union Depoeit Road, Dauphin County, Pennsylvania;
c. Realtor: Nick Wood Realty, property owner Antonelli,
location, 1116 Bethlyn;
d. Property, Gerald Brown, location, 2124 Walnut Botto.
9
Road, Carli.l., CUabarland County, P.nn.ylvania.
36. plaintiff. b.li.v., and therefor. av.r, that D.f.ndant.,
contrary to the writt.n Cov.nant. not to comp.te, have continually
and on nUII.rou. oth.r occa.ions oth.r than tho.. li.t.d in
paragraph 35, p.rformed ..rvices in competition with plaintiff.
within the pro.cribed t.rritories, and continue to p.rform ..rvic..
in comp.tition with Plaintiffs within the proscribed t.rritori..,
all to the d.trim.nt and lo.. of Plaintiffs.
37. Said ..rvic.. r.ferred to in paragraph. 35 and 36 h.r.of,
have be.n p.rformed by Defendants, either individually or through
the individual D.f.ndant. ownership of the .har.. of .tock of
John.ton Spectra Laboratories and/or Johnston Laboratori.., or
through th.ir control over the management, direction and operation
of the corporat. Def.ndant. or have dir.ctly or indir.ctly
affiliat.d th.m..lve. with companies which are performing .aid
..rvice. in competition with Plaintiffs and contrary to th.ir
writt.n Cov.nant not to Compete with Plaintiffs.
38. Contrary to the terms of the writt.n agr....nt., the
Def.ndant, lCell099, .ither jointly or individually, directly or
indir.ctly, have furth.r comp.ted with Plaintiff. a. follow.l
(a) On or about Jun. 11, 1993, Edward V. 1(.1l09Q
.ubmitt.d a bid for .ite remediation work a. project
manag.r for Garqa.z Excavation, Inc.. (A copy of the bid
ia attach.d h.r.to and incorporat.d by ref.r.nc. and
lO
..rk.4 a. Exhibit "E");
(b) On or about July 27, 1993, D.f.ndant, Edward V.
..11099, .ither individually or under the 9ub. of
John.ton Spectra Lab. and/or Johnston Lab., which h.
own., dir.ct., control. or is affiliated with, performed
radon te.ting and r.mediation work at Getty.burg Co11.ge,
Adam. County, Pennsylvania. (A copy of the Clo.ur.
Report i. attached hereto and incorporated her. in by
r.fer.nce and marked as Exhibit "F"l; and,
(c) On or about March 10, 1994, Defendant, Edward V.
Xel109g, .ither individually or under the gui.e of
John.ton Spectra Lab. and/or Johnston Lab., p.rform.d
wat.r .a.plinq pick-up and testing for property locat.d
at l2 D.walt Drive, Mechanicsburg, Cumber~.and county,
Penn.ylvania. (A copy of the test report i. attached
her. to and incorporated herein by reference th.reto and
mark.d a. Exhibit "G").
39. Contrary to the t.rms of the written agr....nt and the
right. tran.f.rred to Plaintiffs to all right and interest in the
na.. ..11099 Environmental services, Inc., Plaintiff. beli.ve, and
therefor. aver, that the Defendants did solicit and continue to
.olicit bu. in... and p.rform radon testing and reduction ..rvic..
u.inq the na.. "Xell099 Environ.ental Services, Inc.".
11
40. contrary to the term. of the writt.n .gr....nt.,
plaintiff. beli.v., and ther.fore av.r, that D.fendant. either
.olioited, bid for contracte and/or were awarded contract. usinq
the n..s Kellogg Environmental Services, Inc. a. follows:
(a) Downingtown Area Regional Authority project for
re.oval and replacement of storage tank .y.te. on or
.bout D.e.lllber 16, 1993. (A copy of subcontr.ctor
propo.al dated December l6, 1993, is attached hereto and
incorporated herein by reference and marked a. Exhibit
"H"); and,
(b) On or about January 12, 1994, bid and received the
contract for the preparation of Spill Prevention
Di.charge and Elimination systems Permit for the Greater
Buffalo International Airport.
4l, Und.r the term. of the Written Agreements, Plaintiffs ar.
sntitled to r.cov.r all costs and expenses including l.gal f....
42. Plaintiff. have incurred costs and legal fee. to date in
the enforce..nt of it. right. under the term. of the Written
Agreement. in the amount of six Thousand Seven Hundred Tw.nty
($6,720.00) Dollar. in attorney's fees and will continue to incur
attorney'. fe.s in the future in enforcing its rights under the
Written Agreements, plus coste.
l2
eoDJl'll I.
07U11. aII'I'IIOM'Y .ILLIaIUl aDeI
aUL ..,a,. "'U"-~u,
...IC", I.C., .uee...oa v.
COUtOa&'IOII 'l'O 'rOIlY .ILLIaIUl,
IJIC. ,
nalDUUe
'D.UO V. ItILLOGG aDcllIUlY ....
a'LLOGG, jolDUy aael ..Y.~allJ"
aDeI alLLOGG ...I.,....,.U,
.UVIOI., 1_0.,
DefeaelaDte
43. Plaintiff. incorporate herein by referance thereto the
averment. .et forth in paragraphs 1 through 42 of their Complaint,
44. From January, 1993 through and incl.uding January, 1994,
Plaintiff. made the required monthly payments to the Defendant. in
the amount of THREE THOUSAND FIVE HUNDRED ($3,500.00) DOLLARS.
45. contrary to their obligations, as set forth in
Plaintiff.' Complaint, Defendant. have competed, either directly or
indirectly, or a. manager., directors, employe.., owner.,
.hareholder. or in other fashions, with the Plaintiff. in providing
re.idential radon t..ting and radon remediation service. within the
Re.trict.d Territorie..
46. contrary to their obligation, and contrary to the term.
of the Sale of As.et. Agreement and the Consulting Agreement,
Defendant,
Edward V. Kellogg,
permitted Commonwealth of
penn.ylvania Radon Te.ting and Remediation License, number 96, to
expire and become unavailable to Plaintiffs as of June 19, 1993.
47. Under the rul.. and regu],~+;ions of the D.partment of
EnvironJIental Re.ource., a lapse of Defendant's, Edward V. Kel109g,
l3
Rac:lon T..ting anc:l R...c:liation Lic.n.. p.r.an.ntly ..v.r.c:l the
con.ultinq r.lation.hip and prohibited furth.r paym.nt. to
O.f.nc:lant, !c:lwarc:l V. K.llogq, under the terms of the Con.ultinq
Agr....nt.
48. pur.uant to the t.rm. of the Sale of A..et. Agr....nt,
the lap.. of the D.partment of Environmental Resource. Lic.n.e,
number 96, to expire terminated Defendants' right. to rec.iv. any
further payment. under the term. of the Sale of As.et. Agr..m.nt ..
of Jun. 19, 1993.
49. Contrary to Plaintiff's right and inter..t in the u.. of
the na.. Kellogg Environm.ntal Services, Inc., D.f.ndant. have
.olicit.d, bid, .ought bid. and/or performed radon t..ting and
r.duction .ervices within and without the State of P.nn.ylvania
und.r the trade name "K.lloqg Environmental Servic., Inc.".
50. D..pite d.mand, Plaintiffs believe, and therefore aver,
that Defendant., either individually or jointly, directly or
indir.ctly, continu.d to compete within the Restricted T.rritorie.
and/or continu. to .olicit, bid and perform reaidential radon
te.tinq and reduction services, as defined under the term. of the
Aqr....nt., within the Restricted Territories either under the
gui.e of corporat. entitie., entirely or partially own.d by
D.f.ndant. K.lloq9, or a. employees or in asaociation with
corporat. entiti.., contrary to their Agreement. not to Co.p.t. and
contrary to Plaintiff.' bu.ine.. rights and int.r.st.
14
51. Under the teraa of the Written Agre..ents, the value of
the non-comp.te clau... in the Consulting Agr....nt wa. aqr..d to
be One Hundr.d Twenty-Nin. Thou.and ($l29,000.001 Dollars.
52. The D.fendant. have received payment. from June l, 1993
to January 3l, 1994 a.ountinq to Tw.nty-Four Thou.and rive Hundr.d
($24,500.00) Dollars to which they were not entitled due to this
br.ach of the re.pective Covenants not to Compete and due to Edward
V. K.llogg p.raittinq his DER license to expire and oth.r br.ach..
of their ob1iqation. und.r the terms of varioue Writt.n Agr....nt..
53. Under the t.ra. of the written Aqree.ent., Plaintiff.
have incurr.d balanc.. or amounts for call-backs in .xc.ss of Thr..
Hundr.d ($300.00) Dollars per call-back and in exc.ss of a maximum
a.ount of Thr.. Thousand ($3,000.00) Dollars which amount. are the
r.sponsibility of D.fendants, Kelloggs.
54. Such call-backs have amounted to approxi.at.ly Thr..
Thou.and rive Hundred ($3,500.00) Dollars to date.
55. D..pite de.and by Plaintiffs to Defendant., Def.ndants
have continu.d to r.fuse to pay the sums rightfully due for from
D.f.ndant. to Plaintiffs.
56. By r.a.on of the breach of Defendants, Plaintiff. have
suff.red da.aq.s and will continue to suffer damag.. in the nature
of lo.s of rev.nues, loss of .arket position and Busin.ss Trad.
Na.. confusion.
15
Bl\ln OF A'mP.m, JUf-<XI41'I!!l'
1I1:JD ~ Q:N1RACnR .......-l'
'lHIS ~ is made as of to",-,,,-""'" 'e , 19!1l, between
Kelll.XJJ DlV4..........lal services, 100. of 4705 Trirdle Road, MechanicsWrg,
PA ("!(elloc:R" or "Seller") and JiIIIIOO 1Int:Jn1y wlllimru, an individual of
Miller Gap Road, Mechanicsbur.g, PA ("Williams" or "9.1yer") and Wward V.
Kelll.XJJ and Ha1y R.P. Jf.ellOl}J of 816 Anthony Drive, Mechanicsburg, PA
l7055, sanetimes referred to .IS "Kellogg" or "Seller", jointly and
severally and lIS shareholders, officers and Directors of Kellogg
EnviroT1l1"Omtal Services, Inc.
Wl'llmlSEl1I: ~e parties hereto, intenUng to be legally bound
hereby agree to tJle following terms and conditions:
J\R1'ICIF. I
~m...1...0 BE FURaIl\SID 1INIJ 'lRMSFER LlMl'l1a'IOOS
1.1. 1~~'!1ta to~~. SUbject to tJlE! terms and conditions of this
Agreement, Kellogg will convey, transfer, assign, sell and deliver to
Williams at Closing, by bill of sale, endorserrent, assignment, or other
apprq>riat<a instruments, free and de."\r of all lien'!, claims or
encumbranoes, and williams will p.lrcllase all of KellOl}J's right, title and
interest in the followirg tangible and intangible assets used exclusively
in oonnection with the b..1si.,.,.ss known as Kellogg Environmental Services,
Inc., Mechanicsbur.g, PennsylvanIa. Notwithstandirg anythIng to the
contrary herein contained in this l\greement, it is understood an:! agreed
between the parties that all tangible ani intangible assets her.einafter
described to be p.lrcl1as..=d by &lyer f~ Seller and any and all duties and
obligations to be urrlertaken by 9.1ye.r as part of the transactions
conteJ11'lated by the parties hereto relate solely to the radon testing and
radon reduction, water and ceptic ::,'st= ~""rtifications, J->,ane inspections,
enviroT1l1"Omtal audit, termite inspections, contl-acting, including painting,
maintenance, concrete slabs and electrical, sunp-pit/sunt> plIITP
installation and repair, asbestoo remJVal, hazardoos waste remediation
an:! t.ank S\JIllOrt services (hereinafter "radon testing an:! radon
reduction") b..1sines!l of Seller which currently operates as a division of
KellCXJ9 Enviroranental services, Inc.
l.1.l Macl1inmy and equipnent as follows:
1. 1985 Ford Van (85,000 mllp.s)
2. Karqo Hamner Drill (1990)
3. Black & OF!cker Madlo Hamner Drill 500
4. 1/2- inch Hole Shcoters
Drills 150 (newl (31
5. Miscellaneous Bits am Attachments
6. ladders
7. Desks and Cl1airs
$ 3,000.00
800.00
300.00
200.00
100.00
100.00
500.00
8. Show Booth 200.00
9. Slllxnelqible Water I'\nrq:l with lIose 200.00
10. Hole Hog l1i1waky 250.00
11. Flashlights (3); Ca.mem: alx! Electrical Checkers (2) 50.00
12. Tools - Sows; Kn.ives; Orcp Lights; arrl Extension Cords 200.00
13. R10nes (21 - ~.ring l1achine 100.00
14. Training Material 100.00
15. 1985 C11evl"':>let Wagon 500.00
16. 1980 Pontiac 800.00
17. Sales Materials - Fee SdlB:lules 100.00
18. septic System; Probes; Snake Wrend1es; Dyes; etc. 50.00
19. Organic Vapor Analyzer .2.000.00
Total $10,550.00
1.1.2 Inventory col\9isting of: fans, fittln:Js, pipes, pipe fittings,
radon test kits, ani water test kits, as set forth on a schedule to be
initialed by Seller and 8.Jyer at closing.
1.1. 3 All marketing and distrirotioll information, including but not
limited to custaner list9, distrirotor lists, major vendor lists, product
literature am suwlier contacts.
1.1.4 All maintenance SUWlies, spare parts and otller such miscellaneous
itens of personal ptqJerty.
1.1.5 All purcha..c;e orders, rights to purchase obligations but not any
outstandiJ~ obligations thereof.
1.1.6 All insurances, teleIiJone numbers and the like.
1.1. 7 All trade names; logos; product names; trademarks; trademark
awlications: and patents or patent awlications, foreign or U.S.
1.1.8 All rights and interest in the name "Kellogg Environmental
Services" am any derivation ther.rof.
1.1.9 All cp!rating business c:mta, cliE'nt lists, records and information
and realtor contact lists relating to activities noted in ParagraIiJ l.l
ahove.
1.1.10 All licensing agle.eJllElllts, including rot not lim.ited to, radon
testing am radon reduction, whether as licensee or licensor, am whether
in t.he name of the Seller or any eJ'ftJloyee of Seller who, as p..'lrt of this
lIgreement receives a consulting or irxleperxlent contractor agreement.
1.2 .1.JJW.Ult\'~-1~UqJ. Notl1ing herein contained will operate as an
assumption by WilliaJrB of any liabilities of Kellogg known or w1known
E'.xcept those liabilities and obligations expressly assumed by williarm
urxler the tenns of this J\qreement. provided, however, that recalls by
C1.lStarers ("call-backs"l in the arrount of $300.00 or less per call-backs,
with a maximulTI amount of all call-backs not to exceed $3,000.00, will be
assumed by Will iams. lIny bolances or arralllts for call-back..', in excess of
2
t';1e above Mnl/lt:s will be theflnane.tnl lespollsibility of Kellogg, who
will JMke payment to Williml'f.! "iUlin thhty (30) days of receipt ot a
written I~Jce tram Williams.
1.3 PelmJ.tt"'" 1\ctiYlthm....9LllmLeu with regard to environmental audits,
hazardo.1s waste l"elOOdiatioo ani tank fllII:1JOrt servioes, after DP.ceJnber 31,
1992, Kellogg may eJqage in tJle&! activities only to tJle exbmt that 9.Jyer
is not actively involved tJlerein. 1\ctive involvement is defined to mean
tJlat for calendar year beginning January 1, 1992 ani endillJ December 31,
1992, B1Ycr's activities in those areas JlllSt equal or exceed ten percent
(wt) of his gross i~ fram the bJsiness whidl he is purchasillJ under
tJlis h;!..",,"ent, or Kellogg will be pt'.nn1tted to engage in those
activities. Kellogg's involvement in environmental audits, hazardous
waste remediation am t."\I1K SlJilXlrt serviexlS stk,ll be subject to this
restriction on an alll1\.1al oosis during tJle term of this Agreement.
1\R1'IClE 11
gmlt<<; ~1l\SE ~
~.1 fiqpJ.m. 'Ihe closing of thIs hJh.~llru1t will take place at 'i
~.M. local time on or before November 8, 1991 ("ClosIng rnte" or
"Closing") at tJle offices of Connelly, Reid & Spadoe, 108-112 Walnut
street, Harrisburg, PUllllsylvania or on such other date or at sudl otller
time anVor place as may be mutually agreed upon in writillJ by Kellogg and
Williams; rot the effective date of this transaction will be January 1,
1992 ("Effective Dlta").
2.2 1'9') Title. On the effective date, Kellogg will sell and corwey to
williams by aWIqlriate bills of sale, endorsements, assignments and otller
instruments of transfer am conveyance satisfactory in form to camsel for
williams, all of the Transferred Assets am williams will payor cause to
be paid a portion of the purchase price upon sudl terms ani comitions as
defined by tllis Article.
2.3 .8Jrril..1!"" Price ~Q1;-'J!lmmle_mJLIlltmnibllL~. 'Ille purchase
price for the tangible am intangible assets of the Seller includillJ the
corporation (transferred assets) will be 'Ihirty Eight 'lllousand Fifty
($38,050.00) Dollars whidl mon will consist of $2,500.00 for the inveJ1tory
of the Seller, $10,550.00 for tlle equipment of tlle Seller as set fortl1 on
Sdledule -.1\_ attadled hereto, am $25,000 tor goodwill of tJle Seller am
as agreed to by tlle parties.
2.3.1 RIITfl;,_ Price f-2L!l!!L~ to 0:JI1Jetl!. 'Ihe purdlase price
for tlle CXlVenant not to catp'!te of tlle Seller corporation and ita
individual shareholders, Edward B. KellOC}1 and Mary E. P. Kellogg at
1\lragraIil 4.1.16 of this hJ'''''.IIII:>nt will be One Ilurdred 'lWenty Nine
Thousand ($129,000.00) Dollars as agreed to by tlle partIes.
2.3.2 1I)Rl(!/.- ~~ ~~ll~bJI:<''''~. Williams agrees to
pay to Edward B. KellOC}1 the total mon of IIinety six 'Itlousanl ($96,000.00)
Dollars in aocordance witll tet11'e hereof and tJle Irxlependent Contractor-
3
"
Cl:?llSUltant J\o,Jb"",..ent attadled hereto aria by reference herein incorporated
Ilm to whidl tho parties have Ilgreed.
2.3.3 (^) WilliBll'fl may set-off by subtracting fmn tlle balance due frem
WilliBll'fl to Kellcqg, any ~Ults p<,id by Williams pursuant to Pl\ragrali1
8.6, lncludillJ tAit not limited to dank,ges, pellillt.les, interest and
attorneys' fees. In tile event Knllocn elects to deferrl, rather tJ1aIl
settle or pay any claim for whidl WillialT'S has the right to be
imemnified, ~ Williams eh.:,ll have the furtJler right to withhold
payment of the litigated claim frem any MnII1ts due un:ler tlle p.1rchase
price, until sudl time as a final judgment is ren:iered in the m.,tter.
2.3.3(8) (1) SUIII Rlyable at ClosiRJ In addition to the dCMl1 payrrent of
$5,000.00 receipt ot whidl is acknowledged by S'illler at closillJ, williMS
shall pay to Kellcqg the sum of Fifty 'lhousand ($50,000.00) [bllars to be
awlied to the transferred assets beillJ purdlased as set fortil in
Paragrali1 2.3 hereinabove.
2.3.3(8) (2) 'Ihe balance of tlle p.lI'CIlBse price of 'lWo 11UI-dred Eight
'Ihousand Fifty ($208,050.00) OollBlB shall be paid by Williams to Kellogg
to be evidenoed by a Note in tlle ClIlnl/lt of ('lWo IlUndred 'Ihousand
($200,000.00) Dollam in tJle form as attadled hereto as Exhibit --1-,
payable montJ1ly, cx:mnencing February 1, 1992 as follows:
(1) Camlencing February 1, 1992 ani eadl stlccessive montll
tllereafter during caletnar year endillJ December J1, 1992 tlle sum
of $3,500.00, for a total of $38,500.00:
(2) Camlencing January 1, 1993 ani eadl montll tJlereafter durillJ
calendar year ending December 31, 1993 tlle ~n of $7,500.00, for a
total of $90,000.00:
(3) Camlencing January 1, 1994 one payment of $5,500.00 due on
that date and ccmnencillJ February 1, 1994 and eadl sucoessive
I1DI1th tJlereafter during calerdar year ending December 31, 1994 the
sum of $3,500.00, for a total of $44,000.00: and
(4) Camlencing January 1, 1995 and eadl successive montll
tllereafter ending endillJ September 30, 1995 tlle S\D1l of $3,500.00
ani on october 1, 1995 one payment in tlle amc,.lI1t of $4,050.00, for
a total of $35,550.00.
2.3.3(8) (3) 'Ihe parties agree that all ClIlnl/lt.s payable hereunder whidl
are not specifically allocated to inventory, equiprent and goodwill will
be allocated to tJle covenant not to CJaTt1Cte and tlle Ir-depetnent Contractor
Q:lnsultant J\o,J..,ement betwl;!P.n tJle parties.
2.4 Dmilloot,lq}jl~,or 1\11'"""_ Pt:~. 1I0twitl1stamillJ any otller
provisions providing for a set-off of the payment of the p.1t"dlase price by
WilliMS to Kellcqg, it is tuXIerstocd and agreed among the parties that
if at MJYtimil witllin a pedod not to exceed twenty-four (24) montl1s from
January 1, 1992, tJle radon test.irX} lia'l1se in t.he name of Edward 8.
4
lrjll/
'YvtZ
I {If//
~'/(
~~
Y(illogg irdividually, aha-lId becUoo unavailable to Kellogg ErlViroranental
services, (except lIinultaneco.ls replaoement of the radon testing license In
tlle name ot B.lyer) or the 1IR>lkaticii for 00l lio.!1lSe of 9Jyer am
transfer ot the alward B. Kellogg radon license is not oaTIlleted on or
before January 1, 1992, tJleJ] at fludl time all paymentft shall terminate and
Seller or D:lwanl B. Kellugg alii Mary E.P. Kellogg, shall lkwe no furtJler
rights against WilliM'S or Kellogg F.nvironnental services whatsoever for
collection of tJle balance of tJle purdlase price, e.xcept however, if the
loss of license is due solely and directly to actions or inactions on the
part of WilliM'S.
2.4.1 Rlb......l llAfllUlLl1Y 1lJwJ:. ^ material default on the tenrs,
conditions and un:\ert.akings of the B.tyer to this lIgreement whidl results
in the termination of tllis lIgreernent, will have as a result the forfeiture
of the bJsines.'i to Kellogg by ~er ani oessati~ of tlle oovenant not to
oq1Plte as cx:mt<1i~ herein, OJv.I:iI',lMY'\'\).._(.-..".""1. (l/'N--\ 4'1.$,( ~c.JtL.... t;:u.:.....1
~~/co1-~,j~w...,.....iv\ JLk.\A""t>...~. v \ q
2.5 B!m!m J.~. Notwithstan:ling any otller provision of
this h;!l"",oont in the evmt that IJER does not approve the license
application ot B.lyer and transfer of tlle Frlward D. Kellogg radon license
to B.lyer on or before January 1, 1992, then Kellogg will intrediate1y
return to B.Iy.:r the sum of $55,000.00 whidJ represents tlle SUllE paid to
Kel~~ under this J\y"'~:llt ani any Exhibits thereto, ~ ~~
~ b-'t'.w(~-1. t'( ... fo.-.-w. .
\ ~ ARI'tClE III
1XXl1IDf1.'lLNID sao:n" ~
3.1 ~-.ts 8RI Schedules to ~iwred. Kellogg has prepared for
William9 ard will deliver to williams prior to ClosillJ the following
schedules, dOCUlllt'nts all:! cqlies required by tJlis Article with respect to
Kellogg.
3.2 IiM.aries an) ~lavment hu-.,.....Y!. ^ list referred to as Sdledule
I, of all enployees, tlleir (i) 11<~..s, (il) dates of birtl1, (iE) dates of
hire credited, (iv) present hourly rates or salaries, (v) cqlies of
enployment oontracts, alJL=IlIE'nts or understandirgs, writtm or oral with
arJY enployee.
3.3 ftltnr ~eg. ^ list, referred to as Sdledule II of all motor
vehicles, showing coat an:! depreciation.
3.4 Ll......~~. ^ list, referred to as Sdledule III of the
licenses ard permits preSeJltly being used in connection willi Kellogg
rosiness ani cqlies tllereof.
3.5 ~. To tlle extent available, a list of custaners reflecting
"'~ ani acklress, referred to as Sdledule IV.
3.6 LianJ~. ^ list, refen'Ed
licensing 8<J<-=.nents whetller as licensee
assignability an:! cqlies tllereof.
to as Schedule V ot all
or licensor indicating
5
"
3.7 ~Id ~lts. A list, referred to as Sdledule VI, ot any and all
prepaid deposits or expenses.
3.8 ~1CM!8 DEnDfit PlBJE. <:qJies of all groop insurance policles,
pllll1S am other contracts or arrnngE!l1'eJ1ts pertaining t errployee groop
insurance, pension, profit sharing, bonus, retirement or other similar
errployee benefits to be referred to as Sdledule VII.
3.9 T..-..........,. ^ list, referred to as Sdledule VIII containing a true
and CXIlplete sdledule of all insurance policies or binders ot insurance
held by or on behalf of Kellogg or relating to J(ellogg's bJslness or any
of Kellogg's IlSSets which will specify the insurer, the amount ot
coverage, the type of il1SUI"l\/1O;l, tlle risks insured, the expiration date
tlle policy I1IJI1tler, the amount of premlUl1'S, 1II"Xl any pend!llJ or open claims,
whether or not wholly covered, as to IIIIl:m1t thereunder.
3.10 MatArll.l (b}tracts. ^ Hst referred to as Schedule IX of all
contracts, a',ju"",.ents, camtitments, arraJlYcments, evidences of liabilities
or obligations, not otherwise requested in this Article ani whether or not
in the normal course of bJs1ness, which may involve tlle receipt or
experniture after Clos!llJ of monies in excess of $100.00 or more.
3.11 rnot" Au-.-.ls. ^ list ani SUll11'ar)' description, referred to lIS
Sdledule X, of instruments ani otller documents relating to in:lebtedness,
other than trade payable or trade receivables incurred in the ordinary
CXlUI"Se of bJsiness, and ccpies of all notes, conditional sales contracts,
financ~ leases, ani other sec=ity arrangements whidl encumber title to
the Transferred Assets.
3.12 LiU<mtiro. ^ list am summary description, referred to as Schedule
XI, of all litigation proceedings and governmental invest.lgations or any
dlange in the zoning or b.lildIng ordinances, pen:ling or known to be
tl1reateJ1ed, affect!llJ any of the prq:>erties, assots or business of
Kellogg.
3.13 r....CKW'I Pl;.....'ly. ^ list, referred to as Schedule XII, of all leases
relat!llJ to personal or real prq>erties, whether as lessor or lessee in
the name of Kellogg Environrrental Services, Inc. am copies thereof.
3.14 I\nrivoqe (h......... <:qJies of all material purchase orders anVor
supplier subcontracts anticipated to be ootstanding on the Clos!llJ rete
referred to as Schedule XII I.
6
Ml'IClE '.IV
I<I<H<I'HJlNOO'l<Hi HID IiARRIIIfl'Il':
4.1
warrants to Will iMB, Which
closing, lIS tollCMS:
4.1.1 OIl the Effective Dlte, Kelloc:r::J will corrvey to WilliMB, good and
IMrketable title to tlle Transferred Assets, free and clear of all liens,
claime, dIarges and eJ'X.."Ullt>ranoes, except as specifically assumed in
writing by WilliMB. Kellog:J will indeJtU'lify ani defen:l Williams fran any
loss, danBge, ClOSt or expense, including reasonable attorneys' fees,
result!llJ fran a bread! of tJle foregoing represesltation ani warranty.
_ . . Kellor;R represents and
representations and warranties shall survive
4.1.2 To the knc:Mledge of Kellog:J, tllere are no litigations, proceedings
or investigations pending, otl1er tl1an tJle STEP1\l.OVl'1Ul and VERBINSKI
matters or threatened otl1er than the Clo..Vv matter tlJat might result
ill any IMterial adverse change in the business or ploopects or conditions,
financial or otherwise, of Kellog:J or !IllY of Kellor;R's personal property
conveyed hereunder, or that: questions the validity of any action takeJ1 or
to be takeJ1 by Kellog:J pursuant to or in connection with the provisions of
tllis Jlgreement. Kellogg does not know of any basis for any SlIdl
litigations, prooeedillJs or irrvestigations.
4.1.3 No contract has been eJltered into for. tlle future sale or transfer
of any of the 'I'ransferred Assets other than to williams.
4.1.4 Title to, am risk of loss or destruction or damage to the property
being purchased will remain in Kellor;R until the Effective Dlte, at whid!
time title to the pI'qlOrty will pass to williams.
4.1.5 Kellogg has not knowillJly faIled to obtain any licenses, permit or
otl1er governmental autllorization necessary to tJle ownership, sale or use
of Kellogg's assets, whidl I1Ol1OCl1pliance, violation or fallure to obtain
might materially adversely affect tlle business, qJerations, prospects,
prq>erties, assets or conditions, financial or otllerwise, of Kellogg and
in particular, but witlloot limiting tlle forego!llJ, Kellogg is not
knowingly in violation of any eJ1Vironmental, safety or healtll law, rule or
regulation.
4.1.6 Kellogg has not offered, paid or agreed to pay, directly or
indirectly, any m:mey or anytl1ing of value, to any individual who is or
was an official or erployee of any foreign, federal, state, CXJU/lty or
local goverrarent or any department, commission, board, bureau, ag~ or
otJler instnurent.,lity tJlereof, or who is or was a director, officer or
erployee of any private h!.QillP..S5, for tlle p.u-pose or witll tlle inteJlt of
inducing th..\t irdividual, in his official capac.lty, to use his or her
influence to obtain or maintain bJsiness for Kellogg or to otllerwise
affec::t tJle nwiness, qJeraUons prospec.ts, prq>erties, assets or
cordltion, financIal or otllerwise, of Kellogg.
7
4:1.7 All unfilled onlers am cxmnibneJ1ts of Kellogg for tJlI! pltdlllse of
materials, supplies am services pertain!llJ to Kellogg were made in the
usual am ordinary ooorse of Wsiness.
4.1.8 Kellogg is not a party to, or in any way obligated urxler, any
contract for the payment of any fee, o:mnission or expense of any broker,
timer or advisor in oonnec:tion with tlle origin, negotiation, execution or
performance of this lIgreement, except a list!llJ agL"""'lleJ1t dated May 14,
1991 with Jack Gaughan ne.,lty, am for tl1e payment of whidl Frlward At.
Kellogg is solely respollsible.
4.1.9 To the knowledge of Kellogg, it is not in material default of any
contract which materially affects the bJsiness or cpmltiOTl.!l of Kellogg.
4.1.10 Kellogg will be responsible for any liability claims that are
made with respect to any Kellogg activities o:mducted prior to the
Effective Dlte am will irdemnify ani hold hannless am defend Williams
against any claims am damages of ~tever nature, includIng attorneys'
fees, for contestil'J;J the same.
4.1.11 Kellogg has good am marketable title to all of its assets,
personal ani mixed, free am clear of all liens, pledges, security
interests, dJarges, claims, restrictions, ani other encumbrances of any
nature whatsoever.
4.1.12 Kellogg is not a party to any legal suit or action, not covered by
insurance, or any arbitrat.ion or other adm.lnistrative proceedil'J;J, pen:ilng
or to their knowledge threatened, or arJY ptoceeding whatsoever arising rot
of the errp1oyer/errployee relationship ard/or involving an alleged
violation of any local, state or federal law, rule or requlation. In tl1e
event Kellogg is a party to proceedings as specified herein, Kellogg shall
iJ'demnify arrl hold hannless williams frem any arrl all liability therefor.
4.1.13 1\rrf liability for monetary damages, includil'q but not 1.ImJ.ted to
negotiated settlements, resulting fran Kellogg's action(s) or practice(s)
in respect to any Kellogg errployee or errployees whidl oocurs pdor to tlle
Effective Dlte will be tlle sole respollsibility of Kellogg, includ!llJ
liability for Jl'OJ'M!tary damages awarded an errployee for wages whidl may
have aocrued after tlle Clooing rete to tlle date of any decree, settlement
or order awarding such damages.
4.1.14 To the kncMledge of f.ellogg, all lists, cq>Ies and schedules
required by this lIgreement will be catplete, valid and accurately reflect
tJle information requested.
4.1.15 To the knowledge of Kellogg, the irNentories of Kellogg are
currently beil'J;J ll1<'llntained at notlMl levels believEd to be adequate for
tlle continuation of Kellngg's bJsine..c;s as presently conducted.
4.1.16 tLlward V. Kellogg, am M<uy F..P. Kellogg, jolnUyanI severally,
am as Kellogg's gh.,reholders .1Im owners of all tl1e issued and oot..'ltardlng
B
B~ock of Yellogg ani Yellogg t.llViroi~nelltal ServiOPS, Inc. tJle Seller
herein, will not for a period of aile (1) year fran the date of tlnal
payment hereof in the counties of [)tlllflln, C\mberland, Perry, Mams,
lancaster am York, Pennsylvania, wlthoot the prior written consent of
WillilUll'l, directly or iooirectly engage or participate in any rosiness
involving radon testing am radon reduction as an iooividual prcprietor,
enployee, ocmultant, partner, shareholder, director or the like, provided
hCllo'eVer, that Wward 11'. KellCX};J ani Mary E.P. Kellogg Ilk,y be solely
enployed by a federal, state or local agoocy in such business.
It is further specifically acknowledged that a ....,,~ at law for breadl of
tlle foregoing warranty will be inadequate am that Williams, in addition
to otller relief available to willirors, will be entitled to tenp:lrary am
pennanent injunctive rnlief witllOl.lt tlle neoessity of proving actual
damages.
In tlle CVeJ1t this Section 4.1.16 is held to be in any respect an
unreasonable restriction upon Edward ~. Kellogg or Mary E.P. Kellogg or
Kellogg Environmental Services, Inc. by any CX7Urt havlllJ COl1JlE!tent
jurisdict.ion, tJle court so holdirq IMY reduce the territory to whidl it
pertain.'il antVor the perial of tine in which it operates or effect any
dlaIlJe to tlle extent necessary to renler this Section enforceable by said
CX7Urt. Said decision by a court of oarpetent jurisdiction w.ill not
.invalidate this Agreeme>.nt but tllis h:Jl~'"If?.nt will be construed as not
containing tlle invalidated provisions aM the rights am obligations of
tJle parties will be interpreted, construed am enforced aocordillJly.
4.1.17 Kellogg is a corporation duly organized, validly existing and in
goo:! stand!llJ under the laws of tlle Camlonwealtll of Pennsylvania, is
qualified to transact k7-Jsiness in tlle CaralPnwealth of Pennsylvania and has
tlle corporate power to carry on its bJsilless as now conducted.
4.1.18 '!he execution ani delivery of tllis Agreement by KellCX};J and tlle
performance of tlle transactions contenplated herein have been duly
autJlorized by the Executive Camrlttee or Iloard of Directors of Kellogg ani
no further corporate action is requ.ired. 'Ihe execution ard delivery of
tllis Agl"",,"ent am tlle con.co.=..tion of the purchase of tlle Transferred
lI.<;sets in carpliance witll tlle terms hereof will not conflict witll or
result in the breach of tlle charter or by-laws of Kellogg, resolutions of
Yel ICX};J , or any term, condition or provision of, or constitute a default
under, any in:lenture, mortgage, deed of trust or other contract, or
camnitmeJ1t to which KellCX};J is a party or by whidl Kellogg my be bound,
or result in the violation by KellCX};J of any law, tule, requlations,
order, jOOgrrent or decree. 'Ihe transactions contE'J1l>lated by tllis
h:Jl""lllent may be con._"llIlm\ated witllout the necessity of obtaining any
CO/lSeJ1t frem any party. Certified ccpies of tlle Executi'ie Camrlttee or
floard resolutions at KellCX};J are attadlro as Exhibit lc.
4.2 ~'~--.-!Y..P ~LW!.UJ"-. Williams ropresents am
warrants to Kellogg, which represent.,tions and warnmties shall survive
closing, as tollowsl
9
4;2.1 WillillllS is not a party' .to, or in any way obligatoo under any
contract for the payment of any fee, ocmnission or expense of any broker
or fin:ler in connection with tJJe origill, negotiation, execution or
pertonnanoe of this hj..,.'''lOlIt.
4.2.2 Williams has received a IlDrtgago on his prq>erty as required by
the SeptentJer 3, 1991 llgl"f!eJnE!11t between the parties whidl is attached
hereto as Exhibit ~_, am tlle time, conditions, CXlVMaIlts ard
understandings of the p.'\rties tJlereto of Ioilidl are incorporated by
ref~ herein.
4.2.3 Williarrs will ~ly with all tlle terns, corditions am
undertakings of the Interface J\o,jloOO,hleJ1t to be dated jtA~ Iq'll.
between Blyer and Seller whidl Interface JlgreE!lmflt is attadled 'l\ereto as
Exhibit .!L am by referet1ce heroin incorporated.
J\Rl'ICLE V
Bm-~~1YEJWre OFmATICIlS
5.1 Unless tlle action was otllerwise awroved (whidl awroval shall not be
unre.:,sonably withheld) in advance in writ!llJ by Williams, Kellogg
CXlVMaIlts am agroos with respect to its bJsiness that frem am after
September 3, 1991 until tlle Effective Dlte Kellogg will:
5.1.1 Conduct Kellogg's business only in the ordinary cnrrse, am use its
reasonable efforts to retain its bJsiness organization and the goodwill ot
suwliers, custaners am others having bJsiness relations '"itll Kellogg am
use its best efforts to keep available the services of tlle preset1t
enployees of Kellogg.
5.1.2 Not eJ1ter into, assume or create any IlDrtgage, pledge, con::lltional
sale or otl1er title retention agreement, lieJ1, security interest,
encumbI"dI1Oe or dlarge of any kirrl on tlle Transferred 1Issets.
5.1.3 Not incur any IT'aterial ct>ligation for bolTOWt!d money or make any
E'.xtensions of crOOit, otller than ordinary trade credit, loan'! or advances
to, or assurre, guarantee, en:lorse, or otllerwise becane liable with respect
to additional ct>ligations for Kellogg, whidl, as a result of sud1 action,
woold cause an adverse eft'ect on tlle sale of tlle Transferred lIssets.
5.1.4 At Kellogg's expel\.'le, maintain tlle Transferred 1Issets in custarary
repair, order nrd con:litlon, reasonable wt!ar ard use am damage by fire or
otller casual ty excepted.
5.1.5 JIcoept custaner orders, issue quotations, estimates and/or
prqxJSals only in the usual and ordinary COJrse of bJsiness.
10
5;1.6 Not make any oc:mnlboont for capit..,l expenditures for additions to
ei\y facilities currently leased by Kellogg which would 1A.u..e a liability
or obligation of Willi8Jl'S as lessee.
5.1.7 Not (i) make any increases in tJle caTIJel1S6tion payable or to becane
payable to any of )(.ellogg's officers, etployoos or agents, or (ii) make or
enter into any written enployment contract or any bonus, stock option,
profit sharing, pension, retirement or other similar payment or
arrangement which increase or arrangement would be effective past tlle
Closing Date, except perks, oc:mnlssions, salaries, bonuses or
reillhlrsements of any type which do not legally bim Williams.
5.1.8 Maintain in force all tJle insurance policies covering Kellogg's
assets and leased facility until the date of transfer of assets.
5.1.9 Not incur any liabilities or cbligations absolute or cont!llJeJ1t
for KellOC}';J, except in tho ordInary ooorse of bJsiness or pursuant to
existing contracts am a<)l-=lIl!nts.
5.1.10 Not make any oc:mnltrnents extending beyon:l one year (except
conmlt:ments for periods in excess of one year relatlllJ to tlle sale or
purchase of KellOC}';J of gcxxls am services for an a..rount not in excess of
$100.00 per transaction) to any one purch.o~r or veJrlor or group of
p.rn::hasers or v~ors.
5.1.11 Not enter into, renew, extend, modify, terminate or waive any
right under any lease or lice.nse.
5.1.12 ()::q:lerate witll Williams in ootaining, tl1e transfer of any
licenses, titles or permiL'I necessary for Williams' use of the Transferred
J\ssets .
5.1.13 Prarptly after IcncMledge tllereof, provide Williams witll notice ot
(i) litigation: (ii) anticip.,ted litigation: (iii) suspension of any
license, permit or otller governmental autllorization: (iv) insurance
cancellation: (v) any material termination of or material dispute with
any material custarer or member: (vi) ani termination or dispute over any
licensing agl-=.leI1t or financillJ lease agle.eJ\lru1t: (vii) custaner
cancellations: (viii) claims: (1,<1 suwlier shortage or refusal to
deliver: (x) government..,l ag~ or. departmental notice, local, state or
tederal, ooncerning any alleged violation of any law, rule or regulation
and (xi) notices or correspondence concerning liens, loans or encumbranoes
affecting tlle Transferred lIssets.
5.1.14 KellOC}';J will employ Williams frem tlovembP..r 1, 1991 until January
1, 1992 as an errployee at a gross s<,lary of Fa.u' 'Itlotl.S<1I1d Dollars
($4,000.00)/per month, pFlyable weekly plus reJ.mbursement for rnileagoe, all
car phone expenses am m.lscellaneoos bJsiness related expen.!',cs. Williams
agrees during said period to ["'rform a minl= of 40 hours per week of
errploymet1t services necessary to educate himself in tlle operation of tlle
radon testing and radon reduct ion bJsiness, provided that if Williams does
not work in any week he will not be paid for that week..
11
5:1.15 ht any time between November 1, 1991 to June 30, 1992, Willil\ll8
may enploy Seller's wife, tttry F..P. KellOlJ:J, at tlle rate of $10.00 per
hour not to exoeed 40 hrors per week. hll services of Mary E.P. KellOl1:J
shall be at will am she agrees to sulmlt a written resignation in a form
as required by WillianB at his request.
l\RI'IClE VI
a.:tmITIgl; OF cram<<; AND a.:tmITRm
AS OF 'BIB ~r..&.~k..IVR IWlE
6.1 WllliR-' O:nlitigJ;l.
actions required by Williarrs
following conditions:
6.1.1 'Ille representations ani wananties of Kellogg herein contained will
be tnte in all material respects as ani at the Closing Dlte wit.h the same
effect as thoogh made at sudl date.
'ltle obligation of williams to take those
on the Cloo!llJ Dlte will be subject to tlle
6.1.2 williarrs will have receiVed all documents and schedules required by
Article III.
6.1.3 1\11 aCCllrate list!llJ of all office madlinery, equipment aI}:l
furniture witll respect to tlle Kellogg facility, referred to as Sdledule ~
will have been <XITpiled and initialed as accurate by Kellogg.
6.1.4 KellOl1:J will have perfOIlued all obligations, <XITplied witJl all
covenants and provided Willians witll all notices required by this
lIq<=nll!l1t to be performed or carplied witll by KellOl1:J.
6.1.5 1Iny waivers or OOI1Se1lts reasonably believed necessary by Williams'
counsel will have ~ received in form am substance satisfactory to
counsel.
6.1.6 All transactions contenplated hereby, and tlle form am substance of
all legal pm""":llngs and of all P<'peI'S used or delivered hereunder,
including rot not limited to any lease and a Consult!llJ hJh,..nll!l1t witll
Etlward B. KellOl1:J will be in a form ani substance reasonably satisfactory
to WillianB ani his ooonsel.
6.1. 7 No suit, action or other proceeding to restrain, prohibit or
otherwise affect the col1SlllT1Tlation of t.his lIq""'lIIent whidl in the
n>asonable judgment of WillianB or his ooonsel requires a delay of tlle
Clos!llJ, or tlle term.I.n.,tion of this l\greement, will have beet1 iMtituted
or threatened, and no inquiry or request tran any govermental agency witll
respect to tho transaction provided herein, which in tile reasonable
judgment of WillianB or its camsel requires a delay ot the Closing, will
tkwe ~ received by Williams.
12
: . 6:2 !fUll""",' Onllticnt. 'lhe dJli~ntion of Will.l1lllS to take those
aCtions required by Willil'llM on the Effective Dlte will be subject to the
follow!llJ conditions:
6.2.1 'lhe representat.ions and warranties of KP-llogg herein contained will
be true in all material re..qpects as ani ot the Effective ntte witJl the
same effect os though made at such date.
6.2.2 Willilll1'fl will have received all documents and sdledules required by
Article III.
6.2.3 1111 aocurate listing of all office madlinery, equipnent am
fumiture witll respect to tlle Kellogg facility, referred to as Schedule .A..
will have beeJ1 oaTlllled and initialed as aocurate by Kellogg.
6.2.4 Kelloc;R will have performed all dJ1igations, oooplied witll all
CXlVenants am provided Williams witll all notices requir.ed by this
hjreement to be performed or ~lied witll by Kellogg.
6.2.5 1II1y waivers or consents reasonably believed necessary by WilliaJ1'S'
COlU1Be1 will have been received in form ani substance satisfactory to
coonsel.
6.2.6 All transactions conteTiJlated hereby, ani tJle form ani substance ot
all legal ploceeJln:js ani of all papem used or delivered hereunder,
incll.ld!llJ nIt not limited to any lease ani a COnsult!llJ hj""""leJ1t with
Edward B. Kellogg will be in a form ani substance reasonably satisfactory
to Williams and his camsel.
6.2.7 1II1y and all pe.nnlts, awrovals and other actions of any
jurisdiction or authority required in tlle n>.asonable opinion of coonsel
for Williams for tlle lawful col'lstllmlation of the transactions conteIll>lated
by this h;!..",l1leJ1t will I-.ave beeJ1 obtained, ani no suC'h permit, awroval or
other action will contain any provision !.tlidJ in the reasonable jtrlgment
of camsel for Williams will be urduly bJrdensare.
6.2.8 Kelloc;R will sell ani OOrtVey to Williams by aWl"Ot'riate bills of
sale, endorsements, assigrnnents ani otller instruments of transfer am
conveyance satisfactory in form to coonsel for Williams, all of the
Transferred Assets.
6.2.9 No suit, action or otller proceeding to restrain, prohibit or
otllerwise affect the constll1111ation of tllis hj.=ment which in tho
reasonable judgmeJ1t of williams 0r his =~l requires a delay of the
Closing, or tlle termination of tllis Agreement, wIll have been instituted
or threateJ1ed, ani no inquiry or request from any governmental aget1CY with
respect to tlle transaction provided herein, which in the rearonable
jtrlgment of Williams or its COlU1sel requires a delay of tJJe Closing, will
have been received by Williams.
13
. 6.'3 KAII...... anlltia8.
tJl0S8 actions required by
following conditions:
6.3.1 All transactions conl:eJTplated hereby, ani the form ani substance ot
all legal proceedings am of all papers use:! or delivered hereunder,
inclu1lng, rot not limited to any lease and a consult!llJ Jlqreement with
Edward B. Kellogg, will be in a fOlIll ani ..ubst."UICe reasonably satisfactory
to Kellogg am its ooonsel.
'lhe obligations ot Kellogg hereunder to take
it on the ClosillJ Dlte will be subject to the
6.3.2 Willi!lllS will payor calise to be paid the annmt under tlle teJ:11S
and con:litions set forth in ParagraI*l 2.3.
6.3.3 'llle representations and warranties of williams hereill contained
will be t.nJe in all material respects as of tlle Closing Dlte witll the same
effect as though made at mJCh date.
6.4 Kell(QJ anllti~. 'lhe obI tgations of Kellogg hereunder to take
those actIons required by it on the Effective Dlte will be subject to the
following conditions:
6.4.1 All transactions =ntenplated hereby, and tlle form and substance of
all legal proceedings am of all papers use:! or delivered hereunder,
including, rot not limited to any lease ani a COnsult!llJ Agreement with
F.dward B. Kellogg, will be in a form and Sl.1bstance reasonably satisfactory
t.o Kellogg and its counsel.
6.4.2 Williams will payor cause to be paid the Il1TCJUI1t under tlle terms
and con::li tions set forth in Paragrapl 2. 3 .
6.4.3 'lhe representations and warranties of Williams herein contained
will be true in all material respects as of tl1e Effective ~te witll the
same effect as tllough made at such date.
6.5 KellOCJl and Wllliama' anUt:MD!. As of the effect.tve date, Edward
B. Kellogg, individually and James Anthony Williams, in::lividually, will
provide evidence of cross-purchase lite insurance polic.tes in the initial
amount ot $200,000.00 eadl to SIi!CUre paymetlt of the purchase price in the
event of the deatll of eitller party. Earn will naroo the other as
bet1etlciary ani payee of tJlls policy in the event of deatll. Each party
will be respollsible for tile payment of premiulls on t.he policy in the other
parties name ani provide evidence ill the form of a paid premium binder not
less than annually during tJle term of tllis h)t-=lIent. 'Ille parties may
mutually agree in writing to prqx>rtionally reduce tlle annual insurance
coverage on tlle lives of eadl otller to reflect tJle decrease in tlle amount
of tlle p.trehase price owned by ll1yer t.o Seller.
14
1IRI"lClE VII
ltCl'ltlf '10 IE TIW'N ~~ '10 'DIB MCWlUI;
7.1 &11nrww'.~(Jatim. Kellogg agrees to the follow!llJ obligations
subsequent to Closing:
7.1.1 If Williams will determine tJlat any further cxmveyanoe, assignment
or otJler dOCUllWmts, or any further action, is neoes!O'ary or awropriate to
vest in or confer to Williams full title to the Transferred lIssets,
Kellogg will take such action, ani execute such instruments, as Williams
IMY reasonably determine to be necessary or ftWrq>riate to {".any out tJle
purposes of this lv;JreE!Il'P-lIt, at tJle expense of ,(el.logg.
7.1.2 Kellogg will, in aooordance with Kellogg's normal record retention
schedule, retain, preserve and Jro'\ke available to Williame during normal
business hours for any prq>er purpose, any of the books ani otller papers
am records of Kellogg retained by Kellogg hereurner and will permit
Williams to make cq>ies and extracts therefrom, except any and all tax
records or records pertain!llJ solely to JOOnston laboratories.
7.1.3 Kellogg will iroemnify, save ard hold harmless Williams ani his
ertt>loyees, officers am Directors of and from any am all claim, suit,
liability, loss damage, cost or expenses, includ!llJ reasonable attorneys'
fees, result.tng fran any breadl of Kellogg's obligations under this
1Igreement exist!llJ prior to ani inchrling tJ,e date of. this JIy.t=llent or
thereafter canillJ into be!llJ by reason of any state of facts exist!llJ
prior to am incllrling tlle Effective rnte of this Jlgreement or aris!llJ or
growing out of tllis JIy.=J11ent.
7.1.4 Kellogg will reasonably cx:qlCrate witll williams at tlle request of
Williams in all natters involving the carpletion am fi1!1lJ of Internal
Revenue Service Form 8594.
7.2 Willi""",,' Cb1iCJat1aIJ. williams agrees to tJle follow!llJ obligations
subsequeJ1t to Closing:
7.2.1 To provide Seller witll all individual financial staterrent, upon
whidl Kellogg is making substantial reliance as part of this JIg.ee1llent.
7.2.2 Williams will in::lemnify, save and hold harmless Kellogg ani its
respective officers, partners, agents servants am ertt>loyees, of ani fran
any am all liability incurred after tJle Effective Dlte arising from the
breadl of Williams' cbllgatiolls hereun::ler.
15
MU'Cl.'8 VUI
~1Uf J\Nl) MLqv.J I ANIUIJ RVlISIgfi
8.1 Tmmlnatim. '!his 1v:JL"",nlent may be terminated by notice giveJl on or
prior to the ClosillJ Ibte in tlle f.ollowillg manner:
8.1.1 By either williams or Kellogg if a material default is made by tllo
otller with respect to the due and timely performance of any of its
CXlVenants ani agreements contained herein, or with respect to the. accuracy
or <XII1l'leteness of any of its representations am warranties contained
herein.
8.1.2 By Williams if aU of tJle comitions set forth in Section 6.1 of
tllis 1v:Ju""",,ent wUI not have beeJ1 satisfied on or before the Cloe!llJ Date
or waived by Williams on or before auch date.
8.1.3 By Kellogg if all tJle CXllYlltlons set fortll in section 6.3 of this
h,Jt.,.;J"ent will not have beeJ1 satisfied on or before the Closing Dlte or
waived by on or before sudl date.
8.1.4 By ltlltual a:ll1SeJ1t of Williams and Kellogg.
8.1.5 By Williams if a material adverse dlange in the business or
condition, financial or otl1erwise, of Kellogg will have oocurred, or
Kellogg will have suffered a material loss or damage to any of its
properties or assets, ani not repaired same or such change, loss or damage
results in a material destruction of the Transferred Assets.
8.1.6 An election to terminate this Sale of Assets J\yL~t as
hereinabove provided will be exercised on behalf of Williams,
individually, am on behalf of Kellogg by its President.
8.1. 7 In tJle event of tJle termination of tllis J\.greement pursuant to tlle
provisions of tllis Article, tllis Agreement will l>ecu"e void ani of no
effect, witllout liability on tJle part of eltller party or its directors,
officers, eJlllloyees, agents and stockholders, in respect to this
lIgteemE!llt, otl1er than tlle liability on tlle part of eadl party for its own
expenses incurred in CXlnnection witll tlle transactions contenplated by tllis
lIgLeement, provided, however, that tlle $5,000.00 paymMt made by William
to Kellogg prrsuant to tlle h,j..:ernent d.,ted September 3, 1991 shall be
imnediately returned to Williams.
8.2 smYm"L-9.Lj~v:@tJt;i4)f}. 1'le warranties, representatlons ani
CXlVcnBllts of the pirrtles hereto wUI survive tlle Closing.
8.3 RlmLQ~. At all times prior to the Effective Date, tJle risk of
loss WitJl respect to tJle 'l'rnnsferred 1\ssets will be wIlli Kellogg. In the
eveJ1t tile Transferred l\ssets will be subst.'lntlally or materially damaged
or destroyed by fire or otJler castlalty, Kellogg will .immediately notify
williams in writlrg tJlereof ani tJle extent tllereot and pranptly notify
16
"WiJ.U_ whether it intends to rro;:ee.." with tlle repair, restoration or
replacement to the quality as existed inmediately prior to the casualtyl
provided, hcMrver, in the eveJ1t of total destruction Williams may declare
tl1is ltgreenent to be null ani void. 1<ellogg will lMintain in fUll force
ani eftect \U1til the Effective D:\te all tire ani exten:led coverage
insurance against stld1 risks ani in sud1 anv-mts as currently maintained.
8.4 ,01..,1..1___. rr IS SPECIFICALLY TI~ BY 'Il1E P1\RI'IES 'IO 'IlUS
NmEEMENl' 'lHAT WILLIJIIo\S IS ruRalllSIOO alLY CElUlIIN DESIGNlITED lISSE."I'S nm
KEl1.COO. WIlL'I1Im lISSUMES 00 RESroISIBILITY FOR 1IN'i LIJ\BILITlfS OF
1<ELl.CJ(X;, ~ OR ~, UNlESS aIl~ISE IRlVIDED HEREIN, lIND
SPECIFICALLY DISCIAIfoS 1IN'i RESR:tlSIBILlTY fUR 'Il1E ux:lt\L OR TAX
IWIlF"ICATlOOS W1UaI cnnn BE GnIEJl/\TED BY 'IHE Sl\I.E OF 'HIE ~UMENr,
INVENroRY 1IND lISSE.'I'S or KEILCXXl.
8.5 ~. NeitJler party to this lIgreement 19 aware of any
sales, use or excise or other similar taxes or fees arising out at the
conveyance, transfer, assignment, Bale ani delivery hereun:ler of tlle
assets to be transferred, rot if any are levied against eitller of them,
tJley will be paid by Williams, provided however, tllat any DER awlicatlon
fee to be paid by williams to qualify for tlle corporate radon license will
be paid one-half by williams ani one-half by Kellogg. TIny renewal fees
will be Williams' responsibility.
8.6 DJlk 'l'rartifers. Kello;Jg I\grees to indemnify am defend williams
against any clairrs ani damages of whatever nature including attorneys'
tee.9, for oontesting the same, alYi assessrrents against williams by any
creditor of Kellogg for nol1Ca1tlliance witll the Pennsylvania Bulk Transfers
law which may be awlicable to tlle sale or transfer of the Transferred
Assets .
8.7 EltI- rg. Eadl p<,rty will bear its own expenses am fees incurred in
connection with tllis Agreement ani the transactions cont.elTplated hereby,
includ!llJ withem: limitation fees am expenses of acx::oontants, awraisers
ani attorneys.
8.8 cnmt-I>1'TIF'trt... lIny J1UIT\bE>.r of camterparts of this 1\<JL"""lleI1t may be
signed and delivered am e.,dl will be considered an original and togetller
tlley will constitute one agreelrent.
8.9 G<:Ivenli.n!L.tmf. 'lhis h,jl~llel1t will be executed, construed ani
performed in accx>nlanoe with tile laws of tlle catmJnwealth of Pennsylvania.
8.10 nrt;1.... hu""""""d,. 'lhls Jlgreement constitutes the entire agreement
betweeJ1 the parties pertainillJ to its subject matter ani supersedes all
prior and conterTJ!oraneous negotiations, aYL'*TOOIlts alYi understandillJs,
written or oral, of tJle p<uoties in connection witll it. No representation,
CXlVenant or condition not expressed in tllis 1vJl=llent will affect or be
effective to interpret, ch.:,nge or restrict this h,jtooment. No amendment,
modification, termination or atteJTtlted waiver of any of tlle provisions ot
tllis J\greement will be bindirq on tlle parties unless in writing signed by
both parties. No waiver of any provision of or default urder tllis
17
'Jlgreement will affect tlle right t'( the" parties thereurxler to enforce any
, ot<her provision or to exercise any. right or ""'I..d}' in the event of any
otller default, whether or not similar.
8.11 Not I"""". l\ll notices, dernan:ls ard ather oamunications whidl are
required to be given to or made by eitller party to the other in connection
with this JIy.<.,."lleI1t will be in writ!llJ, will be deemed to have been giveJ1
"'Ien pceted by certified or registered mail or when n!09ipt of a ooorier
express, telegram, cable or telex has been acknowledged too tl1e follow!llJ
addresses :
If to Kellogg Environmental services, Inc.:
4705 Trinclle Road
Med1anicsburg, PA 17055
If to nlward B. Kellogg ani Mary E.P. Kellogg:
816 AntJlOny Drive
Mechania!lburg, PA 17055
If to Williams:
P.O. Box 1002
Millers Gap Road
Mechanicsburg, PA 17055
With Cqly To:
Connelly, Reid & Spade
Attn: James E. Reid, Jr.
108-112 Walnut street
P.O. Box 963
Harrisburg, PA 17108
If notice is personally delivered, the irrlividlJal aooept!llJ sudl notice,
if requested, will sign a duplicate of the r~ice to evidence receipt
thereof.
8.12 ~chMlllgJ. Schedules referred to herein whidl have not been
attadled hereto at the time of tha execution of this hJl~oont will, by
tlle col1SE'nt of the parties, signified by the parties' initials on tlle
addition be later attadled or caIt>leted am be deemed a part of tllis
h.l.<~t a'!l if attadled hereto at the time of execution.
8.13 l""""lms. 'Il1e headings to tlle vari~ sections of tl1e Jlqreement
have been inserted for conveJ1ient reference only am will not to any
extent have the effect of JOOdifyir~, amerning or changing tlle express
term9 ani provisions of this JIy.<=IllI!l1t.
18
EXHIBIT "B"
~ a:Nl1UICll:IHIJHJI 1lLiKr~
"'-'J 'lHIS Irdeperdent o:mtra~Consultant J'yu,.""ent this / day of _
.VI; , 19 2 . be -" wilH_, 1RJ. ("Catpany-f.") nnd ftJwanJ
=- ot I), ~,.:71 J-lrc ... h~~~Bn Wividual ("Consultant").
/
Wl'DlESSED1:
this dOCl..DOOI1t,
follows:
In consideration of the nutual agreements ex>ntnined in
the parties, interrling to be legally bound hereby, agree lIS
lIRl'IClE I
NMlJRE OF gm.rllJ'llNf IOOITI!;ti
1.1 Calpmy desires, upon tlle purd1ase of Consultant's bJslness, to
lMke use of Consultant's expertise In tJle radon testirq nnd radon
reduction, water ani oeptic system certifi':1'ltions, home inspections,
environmental audit, termite inspections, contracting, includillJ pnintJIlJ,
maintenance, concrete slabs ani electrical, mmp-pit/SUlTp fU1tl
installation and repnlr, asbestos ren-oval, hazanlous waste remediation
ani tank ~rt services (hereinafter "radon testing nnd radon
reduction") business. Consultant pt'.rsonally is licen.qed in tlle
Cam10nwealtll ot Pennsylvania to conduct radon testing ani radon reduction
servioes under License No. ff..
1.2 Carpany shall E!IIt>loy Consultant, and Consultant shall accept sum
enploymet1t fran January 1, 1992 thrrogIl January 1, 1996 (tlle "OJns\.lltillJ
Term") to undertake sudl dutlE'.B and to perform sudl services as re.,sonably
may be assigned to him by the Board of Directors of tlle carpany or by Its
officers, as further defined in Paragraph 2. O:lI\91.llt.mt shall provido
COl1strltlllJ serviow not to exceed 960 hours at an hoorly rat.e of $100.00
per h~ during the term hereof.
1.3 Consultant shall be an independent contractor and not 11I1 enployoo
of tlle Carpany am subject only to the terms of Paragraph 2, shall
determine his own method of cp!ration in aOOC1ltllish.lrq GUcn tasks n9 my
be a'!lSiglled. 'Ihe Consultant shall not be mtitled to l'ealive any
~tion, oamtlssions or bet1efits otl1er than thooc expressly provided
in this h;!..,.'uleJ1t.
1\R1'IClE II
~~gmrurmi..wrlm
2.1 nrring the ConsultlllJ Term, Consultant shall be available upon
re<1son."lble notice given by the President of tlle Ccq'lImy to Msist tho
Carpany in an advisory or special assignmeTlt capnclty 1n his areas of
expertise nnd caTp!tf'..nce in radon testlrq and radon rrouction tllrou~h
utilization ot his CaTvnollW'Xlltll of Pennsylvania l.ice.nso 110. _7.~'__'
cansultant should be available at least teleplonically during the
Consulting Term to carry out tJle duties assigned by tlle PreaideJ1t of the
O:xtpany. 'Ihese Consultant assignments shall be oa1fleJ1S6ted by payment to
Consultant, cxmnencillJ February 1, 1992, of a total consultillJ fee of
$96,000.00 to be paid l1PI1tl1ly based upon 8 total not to exceed 960 hours
of consultillJ services at a rate of $100.00 per hour ani eadl montll
tllereafter to am includillJ January 1, 1996. consultant shwld be
responsible f"r am pay any ani. all expenses necessary for h1m to carry-
out the purposes of this Consulting h,Jreement.
2.2 It is urnerstood and agreed by tl1e ConsUltant am Ule President of
tlle O:xtpany that the nmronwealtll of Pennsylvania Radon 'I'esting and
Reduction License No. 9(" is an integral part and consideration for
tlle purd1ase by President of tlle rosiness kncM1 as Kellogg EnvirolllllP.ntal
Services, Inc. fran tlle Consultant. It is tJle intention of tlle PresideJ1t
of tlle O:xtpany to awly for and dJtain radon testing am radon reduction
licensillJ in the CCIlIror1\Yl!altll of Pennsylvania in his own name within
twenty-four (24) montl1s frc.m January 1, 1992.
2.3 If for any reason during tJle twenty-six (26) montJl period
convnencillJ on the date of tllis h,Jreement tlle radon testing arxl radon
reduction license of tlle Consultant is il1Flired or terminated by the
awlicable licensing bureau of the O:m11cnwealtll of Pennsylvania, then any
am all future paymet1ts wxler tJle terms of tllis !I.J..,.,ment otherwise
payable by tlle catpany to tlle Consultant shall terminate and tlle CoJrpany
shall have no further obligation to make sudl payments to tJle Consultant,
except, however, if tlle l.np!irment or termination of the business is due
solely and dlrectly to tlle actions or inactions of williams.
1\R1'ICLE III
tm-<nIrelTl'Iaf
3.1 D.lrillJ tJle term of this 1Iqreement, Consultant agrees tJlat he will
not engage in radon testillJ an'! radon reduction activities wxler tlle
Cornmonw'l!alth of Pennsylvania IJcense No. .5!.L, nor directly or indirectly
engage in, qJElrate, or participate in tlle ownership, management,
cp:lration, or control of or be an officer, agent, consultant, eJ1l>loyee,
partner, dlrector or shareholder or have any business affiliation
whatsoever with a business that c.utpetes witll tlle Ca1pmy in any manner in
the =ties of ~llltlin, a.nnberlanI, Perry, JIdams, lancaster and York in
tlle Cornmonw'l!altll of PennsylvanIa.
3.2 Upon tE>-Imination of tll1s Jlgreement for whatever reason,
Consultant agreP,S that Consultant shall not directly or indirectly E!I1C}age
in, operate, or participate In the ownership, Il'anagement, operations or
control of, or be an officer, ageJ1t, consultant, errployee, partner,
director or shareholder of any business that CJCllIlE!tes with tlle ~y in
any manner as described in tllis Agreement in tlle =ties, ~Il('hin,
OJmberland, Perry, lIdarrG, lancaster and York in the Comlronwealtll of
Pennsylvania for a period of tllirty-s1x (36) montl1s.
. 3.3 Consultant agrees that this nOll.........,""'tition section is necessary
to protect the CaTpmy's bJsiness, which has been purchased from the
Consultant, and that any violation of this section will result in
irreparable harm to the CbI1pmy. In the event that tJle OJnsultant
breadles this section, the CbI1pmy shall be entitled to injunctive relief
in addition to any other remedies legally available. '!his section ani the
rights of the 0::qJany herein shall survive termination of this Agreement.
3.4 '!he parties agree that tl1e value of this covenant not to c:atplte
over the term shall be $129,000.00.
1\R1'IClE IV
~
4.1 '!he O:msultant shall not at anytime or in any manner, either
directly or imirectly, divulge, disclose or OCIl1l1U/licate to any pc.rsoo,
firm, corporation or other eJ1tity in any manner whatsoever allY information
concern!llJ any matters affecting or relat!llJ to the bJsilless ot tho
Calp<my, includ!llJ without limitation, any of its customers, product,
prices, manner of operations or any other information conoeznin;J tllo
bJslness of the Carpa~y, its plans, p~':"l?S, or other data witllout
regard to whetller all tlle above-stated matters \oUJ.ld be deemed
confidential, material or irrportant. cnrpany ani Consultant specifically
ani expressly stip.tl.ate that as betwoon them, such matters are material
ard =nfidMtial and a:uld seriously affect the sua;,essful corrluct of the
bJsiness of the Ca1pmy ani fue a:trpmy's good will. In tlle event the
Consultant breaches this section, tlle Ca1pmy shall be entitled, IIll1OI1CJ
otller remedies, to injunctive relief pr:d1.ibiting the Consultant from
disclos!llJ sudl infortlk,tion. Provisions of this section shall survive tho
termination of this Jlql=..ent.
1\R1'IClE V
INVOUJNrJ\RY ~'100 OF 'lllIS ~r
5.1 In ack:litIon to tlle termination of this h)<=ulent for tlle rcallOlYl
set fortll in Article IV hereinabove, tlle cnrpany may termlnllte this
h,jl~ for cause upon Consultant's failure or refusal to ad('(j\li!\tely
perform the duties assigned to the Consultant.
5.2 It is further understood ani agreed hotwN-n the CoMUltnnt am
Ca1pmy that the breadl of any of tlle repI"(><'..,cntatloflfl, wannntlen,
obligations or duties of tJle Oansultant as t.he oollnr of the Moots of
Kellogg Environmental Services, Inc. to AntJlony WllllallFl JlllI"!lUc,nt to the
Sale of Assets Jl.,Ju""nent dated L. ct.,y of &VdJilL_u..___._ _____, 19'11 may
also result in a reduction of, cesmatlon of, or carlL'tlllntlon ot any anI
all paymet1ts under this Consulting 1IqllL-enent anI the JlOrtlm hnreto hort'by
incorporate by reference all the teI1ll1, OOI1tlltIOIlfI, III'Y_INtllklngs ani
obligations of the parties set torth in too &lIe of JI."IootR IIgnJell1P.l1t ani
incorporate the same by reference heroin.
.lIRl'ICIE VI
:I2W:i
6.1 carpany ani Consultant \m1erstand ani agree that Consultant is
wholly respollsible ani liable for all taxes on incane he receives pursuant
to this l\gn!elnent. lIrrj alU all incane taxes or taxes of any nature whidl
are required to be paid by Consultant p.u-suant to any federal, state or
local statutes are solely the ConGultant's responsibility am the
Consultant hereby agrees to indemnify aln hold hatml.ess the CcrrpaI1y from
any ar1d all liability therefor.
1IRl'IClE VII
WlUYm OF mF.l\aI
7.1 '!he waiver by tlle Carpany of a breadl of any prov is ion of this
1\greemelIt by the Consultant shall not operatP. or be construed as a waiver
of any subsequent breadl by tlle Consultant. No waiver shall be valid
unless in writing ar1d signed by an autllorized officer of the CaTpany.
1\R1'IClE vm
.t\l' nX:l" OF I9IRl'IAL IlM\LIIIlTlt'
8.1 'Ihe invalidity of any portion of this ^"'....<!lleI1t will not and shall
not be deemed to affect the validity of any otl1er provision. In the event
that any provision of this lv;Ju~elTlent is held to be invalid, the parties
agree that tlle remaining provisions shall be deemed to be in full foroe
am effect as if they had been executed by both parties subsequent to the
expungement of tlle invalid provision.
1IRl'ICIE IX
gVlCE O~. Y'M
9.1 It is tlle intention of tlle parties to this ^",.eeJlleI1t that this
Jlgreement ar1d tlle perfonnance pursuant hereto ani all suits am special
proceedings urder tllis lIgreement be construed in aooordance with, under
and prrsuant to the laws of tlle u..11I~.alth cf Pennsylvania and that, in
any action, p~in:.J or suit that might be brought aris!llJ O-lt of, in
connection witll, or by reason of tllls ^",..,--elllel1t, the laws of tJle
canrro~ltll of Pennsylvania shall be awlicable am shall govern to tlle
exclusion of the law of any other forum, witlloot regard to the
jurisdiction in whidl any action or special proceedin:.J may be instituted.
'Ihe parties furtl1er agree tl1at venue for J:WllOSCS of this Agreement shall
be CU1TblrlanI OJunty, Pennsylvania.
Ml'IClB X
....n VTCIa'I(Jf
10.1 '!his 1\o,Jt....,lI!l1t represents tJle mtire h;Jt_llI!l1t between the
tU1pIny am the CbnSUltMt. No m:xUflcation of this hJ.=IllI!l1t is valid
unless it is in writing and signed by the parties heJ:eto.
1\R1'IClB XI
ASSI<Befl'
11.1 Prior to receipt by CaTpany and Willi6l18 of radon licenses, tllis
1\o,J"""lent is f\llly aSRignablo by the 0:IIpany withoot tllo OOl1SMt ot
consultant ani shall inure to tJle benefit of any assignee or tllair legal
SlIOOe"sor in interest of the CJaltlMY/ thereafter, this hJ..,.,.,lI!l1t may be
MSigned by cmpany, but sum assigranent shall not be effective withoot
tlle prior written consent of Consultant, whidl consent will not be
unreasonably witl1held. If Consultant ret\wes to consent t.heJ1 he shall
forfeit all rights to paymeJ1ts under this hJu,."ull!l1t.
11..1.2 'Ihe Consultant re=gnlzes that this Agresnent is personal to
tlle Consultant am has been executed witll him based upon his individual
CMlership of the CC:mrCJnwealth of Pennsylvania License No. "'Co which
permits radon testing ani radon reduction in the Catm:>nwealtll. Based upon
the representations of the Consultant as to the personal nature of his
licensure and of the per.sonal efforts to be made by the Consultant in tlle
radon testillJ and radon reduction efforts ot tlle 0:xIpmy, it is agreed
that any assigment or attenpted assignment bv the Consultant ot his
CamIorIwealth ot Pennsylvania License No. 'I': and the duties the
Consultant has \Uldertaken p.lI'SUaI1t to tllis 1\o,J'''''''lI!l1t shall be null llI1d
void and shall pennit the catpmy to intnediately terminate tllis "",.""""IeJ1t.
AR!'IClE XII
~
12.1 '!he titles to the paragra(t1s of this "",.""",llI!l1t are solely for the
conveJ1ienoe of the parties am shall not be used to explain, modify,
sinplify or aid in the interpretation of tlle provisions of this 1v;Jreement.
IN ~ tftmroF, the parties have executed tllis h,Jt~t this tlle
1 day ot ,IA""rl.), , 199~
M'I'Im'l
--:::::'/ WIILINIl, Ire.
d4/t~/C-/--' .
By 1--"':
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,
-----
." ,
, ',,"
, ~
. . ~.
IUD. ,/O~
(',. ~'I I
ll.~
$200,000.00
Ibrr.i!'!Jmj, ~!vnnia
Dat.e:=.1fJIIJ <; j'
(, r f).UC<
~Ww..
fm V1\JllB REX:Ervp,'>, James lIntJlony Williams, all individual of
Miller's Cap IlD<"\d, -MeetIaiIl=bJ~r Pennsylvan.ia, (tlle "Borrower") hereby
pranises to pay to KellOlJ;! Erwirollll1ental services, Inc. of 1\705 TrincUe
Road, Mec:hanJ.csb1rg, PA, a ~nn.'3Ylvania corporation, and lliward It. Kellogg
am Mary E.P. Kellogg of 816 lInthony Drive, Mechanicsburg, PA 17055, as
their interests may l'IRJear (tJle "Payee"), or order, in lawful money of tho
United States of Merica, tJle principal Sl.Dn of '1\10 11Jrdrcd 'lhousarrl
Dollars ($200,000.00) (tlle "princJp.,1 stnn") withoot interest.
'l11e pdncipal Sl.on s1li\1l be due !Url p..,yable as follows:
(1) Camx>J1CiI~ Fcbnlary 1, 1992 and eadl Sl.lccessivc montJl
thereafter duril1CJ calcrrl,r year eJrl!J~ :b<.:ember 31, 1992 tJlC sum
of $3,500.00, for n total of $38,500.UU:
(2) Callmencil1CJ January I, 1993 arrl e.,dl montll tJlereafter cluril1CJ
calerdar year elYllllJ December 31, 1993 the sum of $7,500.00, for a
total of $90,000.00:
(3) ccmooncing ,1anuary 1, 1994 one paymcmt of $5,500.00 due on
that date am c:xmnencing Febru.,ry 1, 1991\ and each suc:xessive
l1lJ/lth tl1ereafter durillJ calendar year mrlil1CJ December 31, 1990\ tlle
sum of $3,500.00, for a total of $40\,000.00: and
(4) Camlencing Jamlary 1, 1995 and each successive month
tllere.after en:Ung eJrllng September 30, 1995 tlle sum of $3,500.00
and on October 1, 1995 one payment in the amount of $4,050.00, for
a total of $35,550.00.
'lhis Note may be prepaid in whole or in part at any time and fran
time to time. Payments hereun::ler s11<,1l be m"lde c/o Edward \L Kellogg,
4705 Trin:lle Ibm], Mechanksburg, PennsylvanIa 17055 or at such otl1er
location as the holder of tlll!l Note my designate to tJle Borrower.
'llle occurrence of any of the following events shall aJnstitute an
"Event of Default":
(1) F'ailure of IJonl:1.-ler to IX'y arl}' amount payable h('t-eurner
witJlin fiftron (1';) rosiness dilYS of when due:
(2) F'ailure of IJon-rMiJr to oIJr'..erve> and perform Clny cove'1i1nt or
agrecmt:'Jlt c'Ont., irlE'd in tlle J\gnx'lllent da ted l!~ i!.:' ;'II.c..i:.L..!i-Li'1L-_
annng the partieg,
Upon t.he Ol."Utrronce of .\11 "Evcnt of Default", Ule Payee, lMY at
his cption declare tlla eJltire balance of principal of tJlis Note to be
N'11
. .'
. ~
.
PI8CLOD!!.lt.L.ZQIL~QNFBSSIOM OF JUDGMIIMT
I AM EXECUTING, 'l'IlIS I DAY OFJ/)"'l",/
NOTE FOR $200,000.00 OBLIGATING ME TO RFoPAY TIlAT
, 1992, A JUDGM~~T
AMOUN'l'. INITIAI~/o1
I UNDERSTAND AND HAVE HAD EXPIJlINED 'l'0 1m '!'IIAT 'l'IIE t1()'I'E COtl'l'AINS
WORDING THAT WOULD PERMI'!' KELl.OGG ENVIRONMEll'['AL SERVICES, INC. '1'0 ENTER
JUDGMEN'r AGAINST ME AT TilE COURTHOUSE, WHETHER OR NOT SAID NOTE IS III
DEFAULT, WITHOUT NOTICE '1'0 ME AND WITIlOUT OFFERING ME AN OPPOR'1'UNITY TO
DEFEND AGAINST '!'IlE ENTRY OF JUDGMENT, AND THAT TilE JUDGMENT MAY BE
COLLECTED BY ANY LEGAL MEANS. INITIt~~r-i~'d->:V
IN EXECUTING TillS NOTE, I KNOWINGLY, UNDERSTANDINGLY, AND VOLUN-
TARILY WAIVE MY RIGHT TO RESIST TilE ENTRY OF JUDGMENT AGAINST ME AT THE
COURTHOUSE, NO I
/;(-J/
AM CONSENTING TO TilE CONFESSION OF JUDGMENT.
INIT!
YEARS OF SCHOOL, THAT I HAVE
jr(
I CERTIFY THAT I IlAVE IlAD
INCOME OF MORE THAN $10,000.00 PER YEAR, AND 'l'HAT THE BLANKS IN THIS
DISCLOSURE WERE FILLED IN WHEN I INITIALED AND SIGNE,? IT, AND THAT I
RECEIVED A COPY AT THE TIME OF SIGNING. INITIAt~~1)
" /_../..
__;:.' "I" 11--,
/ ~. .
, / James-Ant any Williams
1// 1...----
(SEAL)
.
-
.
COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF ENVIRONMENTAL RESOURCES
Bureau of Radiation Protccltion
Post Office Box 8469
lIarrisburg, PA 1"1105-8469
September 22, 1993
(71'1) 783-'3594
certif ied Mail
Mr. James A. Williams
Williams, Inc. DBA/Kellogg Environmental
Ser.vices
4705 Trindle Road
Mechanicsburq, PA 17055
Dear Mr. Williams:
The certified individual testing and mitigation agreement
we have on file between Mr. Edward Kellogg and yourself, is no longer
valid. Mr. Kellogg'S t9sting and mitigation certifications
were not renewed and expired on July 19, 1993.
Your firm was required to notify us of the loss of your
certified individual within five days as specified in 25 PA. Code Ch.
240, ~ 240.102(b). And, most importantly, as specified in 25 Pa.
Code Ch. 240 ~ 240.102(b), until you supply our Department with a
certified testing and mitigation agreement between yourse1t and a
certified testing and mitigation individual, your certification for
both testing and mitigation have lapsed and are void. You must
therefore imm~diAt~Y_C~_~5~ all radon testing and mitigation
activities until your new certified individual agreement is
acknowledged in writing as being receIved and accepted by our
Department.
Please submit your new certified testing and mitigation
individual agreement to our Department within 5 days and use the
enclosed at a ~inimum guidelines to en~ure that your agreement will
meet all requirements.
Should you have further questions or concerns please
contact me.
SIncerely,
t:~L--, C~~-;.
Ke lley H. "aney
Radiation lIealth Physicist
Radon lJivislon
An E,,".I O"po,t""'tvIAffl'",nllve Acllon E",,,IoVe,
n'C'i'll'd Plpt, \~
EXHIBIT "E"
GARGASZ EXCAVATING, INC.
P.U. Box 148 · PhJlipsburg, PI\ 16866
(e101) 3'U~72el
FAX (8'14) 342.728/5
.7une 11, 19U
. .
, .
8U8J.~TI tettl~ of Introduction
Dear Prosp.etivl Cuntom~r:
Oar,l'l r~~av.tinq tnc,
in.tal1atign ~~mrany lnvolv.~
petroleum in~u.hry.
~,. heve in Our ."'ploYJIIlnt: prote..lonu~ D.t.R. CfRTIfUD xtt'1'Al.LiA..
We aho e.ploy rrof~ui~m1h in all tratlu of thl eon.truetlon
iMuetri...
11 In IKoavatin, . p.trol.u.
tn all field. relltin, to th.
our ered'ntillo are prim~riJY in ~h. petrol I' ' 'n~u.try. To ,lve
ju.t: a hw eXlmple., \oil'! hilI/a compUted thn r~~ ,..:' or .pprodlll.,.1y
~50 fuel hnk., eOlllplOhrJ e m"jot' remodah, ("'. . .\ Clonlllhd of not
only the rftmoval Ind in.t~ll.tion of the tllnk~, but al.o plpln,
involved) as "en all di"p"'h!lu!I I canopy inlltUUtlon. On' of the
Illltor r.model. mentioned w. have allo totally r'oonlt:ruot.4 the
bu IIUn,.. All of the mllnUontd up.etl of worlt have been
oo~pl.te~ in the lelt 12 month!.
At thb Um' J: would f1ho Uke to mentiun thl'lt w. work vtry OIO..lr
with InCl havt a aUl'nb bueln."" t'fllaUonlhip wlth fin tnvironm.nt*
company.
Otry". EKcavattn9 Ino. t9 ~ con.eitntiou9 company cone.rnld with
I1Ilk n, ..rvioa to the cUIlt:omllr II U priority.
1 have a~taeh.d a 11~t of MY .Itt.rtnd eUAtom~r.. Allo included 1.
a QOPY 01 our company'l certl,ication document. Whan you ara In
n..'" of 1I0re informaHon I'l'.1e 9lve our cOlllpany . CleU at: the
nUMell' Il1td.
~,.,ee~fu'ly .ubmltted,
Dlvl~ E. a~t~~'1
, .
Inl' (1'3' '''.1 "El' I~: ?;, 1[':IIEUII1II msr.1':lnrr-~ r'c
1('
~EJ 110;.:;-17- j,:r.- ;:(.f)O ""'fl'l rr"
III . \. .. ,... II .IV" .l .l ~II - . - . -
GAROASZ EXCAVATING, INC. ~: S~ ~h\,
P.O. BOl< H6. Phlllpsburl, PA 16888 i1\((t)
(814) 842.7281
P'AX (814) 842.728G
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Glrf'.' "'1' olfi..
UO 11....1.."
narrl.bur" .a 110"
(U" .u-u.o
a\tDI Hr. .ob..rrer
Mlyor'l or'io. or leoftoalo D,v.lop..at
cltr aoy.r~'ft' C'Dtir
10 " Mlrk.t 'rlre
..rr~.'ur9,' 11101
.UIJIOTI .ropo'l! '711
,it. ~...tl.tlon
..rvit. '.oklD~ 00. 'Lti
1111-111' I. c.-tree .~
Ilrlllbur" 'A 11101
DI.t Hr. .b..tflr.
'I'll. rOllowh'l 11 our propo..1 for nllovlD, dl bal.r.'IS.
__t,rl_l. froll tbe lubjlot .It,. .. bav. vl.l~11 ~1I1 11" tDI
r.vi,v'l thl looument. pr.p.r.1 by "elllla A"ooi"...
~R~~.olk Tb. bl..rloUI a.\.,i.l1 ia.n'lfl.t on 'bl' .It.
.111 b. r..o..4 tio. thl ni" 'na lil,0804 of ift oo.plllaot _I"
tb. JA ana itA uquUtlont. Tb'" *C1UvlU.. tr111 b,llllt Uti
Plelr1ftt \hl ...U <au.bUH.., pUllplD; Ind 4hpGlal of the ...h
fUll oland motor 011, ra.oval IBa 41npe.ll of tb. lib..,.. Inl
lab p.okll; tbl 'el eOh~.IDln~ b'lle.t!.
Tht vn.orqround '~or'9~ Tlu_ vlll bt r'.Oy.a IDI Inl .OD'''..'''.
toll ,,111 b. hallllrcrte" te a l1(:cnu" ",U tnlbll"\ ,..lU',. A
vn olotllll ",or. "ill b. oOlllplttd 8!1 rlquhd IIf \be ... D'"
CluUll iD...
1I.'U.b_'Dt.lJ'.h~ 1I...ure. v111 tlle1U4o 40 Ilr~ ""'1 ""UU"
p.opl. on.dta. Tb.y arll train." in tll8 "'bcHin,. ',..r.I\l1
..tarilJ. .
.,...-.. .-...
,Intl-f;\':i-'?4 I.rEfl 12,:n 1[1'"EUln" ns':OI:lnrES 'rr:; 'TEl.' ,1/r)'717"2'!.I;";?I;IC1f;\
.
It?CI':i rClJ
lulina Dh,OIlI of the VatU .hUIllt 11.' "Iquar. "Uti.IU
t..~. ~y .uob oon~. ar. laclud.4 i8 ~bl. P~op..'l.
Q.uWJ.u..Ueal OUVUI 'xolv*':lng Ifto. U . "A oerUUU VI'f
"oDtno~oUI' OhU h 3,.. nit Oll'UUOaUOD oonn \U
u..ovU In4 ,ii,poUI of tilT tull.. Tile' nquhl\. tn.un.....,
bOll4h, ea,altlUU.. b4 rUb.ne.. h. lvahabit "POD~',,*..', ..
hIve 1'1..v.4 our 100 VIT tlnll. ift the 11.~ ~b~.. J'I~' IDI ..v.
r.lle4latea ..ver.! .lto. .lmll.t to tbl. .it..
lRbAAK11 Thi. projeot would bt compl.t.<< in onl w..~. If tbe
wo~l:li lutbol'i..<< to allow compl.tlon in July" . 10' rlduo~ioD
allo"lao. i. Off.r.a.
VO o08tll
II.Uub
'ito el.ln-up - ttl9in9 01 alt.rlll. flOOO.OO
'ump, ~raatpo~tatioh and dl.pO'll .I~t. liquid 1000.00
tllf a'.ov.l
Oluu.. hpo~'
.oil ..I.oval (oohtlMift.to~) 100 tOD "O.OO/ton
A.b.. to. a.mov.t
Oll.n lit. a.port
Hho. T"Un~
tlb p.o~ln~, ".DII..\lft~, Bte.
'erat'., .ot~fle.tion'
11.\I., .u-ilL...q....
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noo.oO
2.100.00
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1000.00
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13: ,10 SPECTRA (,AnORATOR I B
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JOHNSTON
SPE CTr<A -------------.-
LABORATORIES
Envlronmonfol TE)slin~.
W^1r.I? . M' . SOil
~Q~tz Ex~nvnti"g Inc.
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ATTPl: H~. r,lndo Cont?
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CLIr.IIT I: GeHY!.'lIl\lrq CIJ II C!ge
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D^TP. ShMrLr.rJ: J~ll 9, 1!193
DATE RE:C!':l:VI:;D: Jill. 20, 1993
DAn: nr::I'Oll'l'Im: Jul ;W, 19!13
lVlhLYTICAL nF.I"OIlT
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JOHNSTON
SPECTRA
LABORATORIES
Envlromehtdl TestIng
WAlIR . AII1 . lOlL
BACTERIOLOGICAL EXAkINATION or MATIR
(Membrane ril~er Techhiqu6)
Job Numberl 34835
Sample submitted byl JEFFERIES, MARIAn
Sample ID: 12 DEWALT DR
Location ot Sample. MECI~ICSBURQ, pA
Taken bYI L CRAMIR
Sample Typel Raw
Chlorine r..idual at time of lamplinql NA
Dat. and Tim. Takenl 03/10/94 i400
Date and Tim. Racaive~1 03/10/94 1450
Data and Tima Analy.ed: 03/10/94 1455
Oate and Time Completed: 03/11/94 1300
_.___w_____________________~_____________________________
RISULTS
Coliform orqahitma, 0/100 ml
Remarkel Thi. ~ater i. bactariologically pot.hl.
Report InfOI
t:clu k# ht C ' ~~, l.Q u-&e.1u.<'-L.a..
Edward C. ~111.nb.oh.rl Dlr.otor
E'A LAb Ho. 21-052
JlrlIR]I', MARIAN
12 DIIWALT DR
MECHANIC.IURO,'A 17055
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IN WITNESS WHEREOF, and intending to be legally bound hereby,
each of the individual piu.ties, and the corporation, by i\:s lawful
otficers, has caused this Agreelnent to be signed as of the day and
.'
year first above written.
ATTEST:
./) ,,/
~ . '1< 'ttL/'(;X
Kellogg, so~
KELLOGG ENVIRONMENTAL
SERVICES, INC.
',rj) ~,J I. t7(}
D'{:.i~nyyjj~.i.~-Q~
Edward V. Kellogg,
President
WITNESS:
9~ ~~1
JAMES A. WILl,IAMS
-;# t;. <1U/--.:-
(/
WITNESS:
EDWARD V. KELLOGG
'-j3tWLilJ ;t. cd1~d(
/:J~i/~~
WITNESS: ~
'13~4 ~I--~_
3
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COHHONWEALTH OF PENNSYLVANIA
COUNTY OF c.u t;\Cx-J \ <-Lf'\cl
.
.
I sa.
ON THIS,. the ~ d<lY of ~1'11.,
1993, before me, <I 1I0tary
I'ublic, the undersigned officer, person" lly appeared MARY E.
. KELLOGG, known to me (or satisfactorily proven) to be the person
whose name is subscribed to the within instrument, and acknowledge
that he executed the same for tho purposes theroin contained.
IN WITNESS WIlEREOF, I have hCl'cuntp set my hand and official
seal.
.
~i.\~ ~\JlJ-Ll R\)
Notary Public
.--
i 'I~SW..
My Com 'AlMmlleOO'l'S:"~r'tPLtlIIc
Camp Hill, Cumberland Count,
My Commission Exp~es March 11, 1M
COMMONWEALTH OF PENNSYLVANIA
COUNTY OF C,.ulrt'a:r\o.nd
ss.
ON 'fBIS,
the dne:.\
day of ~I,
1993, before me, a lIotary
PUblic, the undersigned officer, personally appeared KELLOGG
EtTVIROllMENTAL SERVICES, INC., by EDWARD V. KELLOGG, President, and
Mary E. Kellogg, Secretary, known to me (or satisfactorily proven)
to be the person whose name is subscr ibod to the wi thin instrument,
and acknowledge that he executed the same for the purposes therein
contained.
IN WITNESS mlEREOF, I hove hereunto set my hand and official
seal.
~LQa ...D(U~~
Notary Public
My C
NOlAAW. SIAL .
ItA 1I1lUH A. ~VIS. tilIary ''''lie I
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