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HomeMy WebLinkAbout94-05355 ,,';' '~ \ . , H " , I l ~ I ~1 -;;# , i Ii I,' ;ll , , ",1' " , ,', " '" .3 - - - .- 3 , , '~ ~ J ) ( , I I I I " I' I, ' ,/,' \ L iI, 1\ . ,I"~ J'i , ,\,1 "',I i'\ , . I "\ .." II I .'j 'I 1 .~ lt1 l.() N) \J) , t,',," \' ) ~! ! , 'i ~ 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, 3 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". 4 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". 5 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 6 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 7 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 8 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. 9 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 10 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.: 11 (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 12 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 13 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 14 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 " 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> '(~~( ~.--,~/.... ---~. '". ;1/ ,) 1 ,0. t,) ('iv, I I'l" Y .' . . ~ ~ . nmIm.mJm'B $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 ---' I , .' .. . ~".. 1.1:, un ,.rl'.' ,l.l' or'l.. uo .....1'..' ft.rrltbur" 'I' 11... In7J tI'- 110 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'.'" ,0U ,,111 b. tultflfr l'td ttl . 110:(1"..0 1I011 h.'btllt ".Ui',. A V." 01.'1I1t ..,or "Ul be .0.p1O'04 U "'flUb" '" ,... 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" " . 00' . 01 , Il',r. 0,) <>eto l> 4', ~I '.fj /./0 t., Oil I 'II ~o).h -"0 'q Q ~/.. ./l>" , .'if' i'l", I ~.. ~ ~ [~ ., s ~ ~ ~ \ ). " 'vi 0:- >- ~ .... .. .. ~ " :! .... (f ~~ ~ (0 ":7' .... - .h ,. I";:.;' i,.,; , r., I'-j ""'.1 ,'I '=' '1 fu Vl , , .1.-,,"""'" ,,-,,;_,, II t '.~ HAR II It 32 PH '95 1)/ t It:~' Uf 11'[ r'/l~' '1 liU'-l!!t'l '.iJ I'" fJ(,\{~ 'il'l ~,~ /f/.I "'1 ~ "1 "1 " . :' ~ -~ ~, 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... I). - ""I ..- day of (j,o',(,,_ 1994, A.D. , - . J.~. J t ....- I , (, }J'l"!',, (1;iJ'} prothonotar'y ~. - .. . ... .. ... 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. - 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. " ... - .. . ... ... ... 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. ... .... - - ... .. - 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. .. .. .. 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. .. t' i',., , '1"\. "t,:tll.,;. "'1.- 'l' (-." I ,~ ~: . ; 't " IElchlblt /II. , '. , JJ:~~ " " dhJ . " , , , '(' " r;l . ) " \" " " j; !, I . '! 1 i i \- I I I ! !. I I ~ .. I ,I .. @ 1I11111~O'1l Hill , , . 'W - . , .. - - . 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 ... .. .. ... .. 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. 2 .... ... ., n ... .. ... ... ... 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, 3 - . . ... - ... ... - 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". 4 .. ~ ... - ... ... ... .. 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". 5 ~ .-. ... - ... - ... - 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 6 - - ...... ... - - - - 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 ., - 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 8 - 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. 9 ... .... .. .. "" - ... - 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 10 - ... 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: 11 ... ... .. ... - ~ (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 12 - ... ... "" .. ... "" - ... 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 l3 .. .. .. .... - ... 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 14 ... ..... , "" ... ... ... ... .. 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 ... ... . . . 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 ') ... ... ... - - 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- 3 -- ... -- -- .. - - 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. 4 -- IJrjl!/ z;v~ {If/I .... .... ..... .... ... .... ... ,~ \(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 !5 .. ... ... .. .. - 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. 6 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. 1 ... " .... .... ... .... 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 8 ... .... .... ... .. - - 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 9 ... .. ... ... ... - ..... 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. 10 ... ... ... ... ... - .... ... 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.. 11 ... ... .. "" "" .. ... 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!!. 12 - - ... .. ... - - 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. 13 ... ,... ... ... ... ... ... - 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. 14 .. ~, ... ... ... - - . 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. 15 " ... " ... ... - - ... 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 l6 ... ... - - - - .. '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 17 - - - - - '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. lB ,., - '" ... .. ... - - - 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. ~_' .... ,- -~ ... ... ... ,. ... 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. ., ., ... ... ... " 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. .... ,'"\ "" ... "" .. , . 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. ... .... .. .. 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': -----:'.,.. t' I ~'/ N~,~. ~/(L-""'C- By~ .'{~~~{ ,_/ --". ~ .. .. .. BXHIBIT "c" - .... - ... ... /1/0. '/I):J, {l,'l/I " n"y , ~ . 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) ", ... ... .... .... .. 'J (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 ... ... ... ... 1..- .. ..... ,0 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 ".." " ',;, ... - ... - . . 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 ......' ..~ ... "" -- ... ... , I 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 ... -" I . " .. , ,,\.... il, UII GI'I'.' rl.l. o'fl.. sto .....1'1.' "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-. . ..-. ~ ~ - . ~ - 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,.,. t too.OO 1000.00 nOlI. ot noo.oo 1000.00 1000.00 100.00 .tILW...U /' I) t"l I. '.^ r.' .' , / ' ,., ' \ r.1 ,- w VI ,\ ..: "J (.J b" :"J I I .:3 cy 0 .1 ..: W ,. , d. n n' ,~ <..' . h' Ld ro. 01 ,- ,- ,., -..j <( ,,,c( ". '" n n ---_. _u 10 . 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I . .. i . ~ i ~ . . . . . . . i . ;, $ 4 ~\ ~ It ~IO. on ::;o?<'U':on (1fI31)0- Bl.:1 F".:otln t'.fll:t3,)r,-.: I t",," n:..~'. t.~' t. , r;I~Y . t.ln it.!, T.;.bl 1\I11''''.II.t I ~ "'III \. ::' ~. t ()r,! :;.8(I/T':", $ ~ , ~J1)O. (tl) It",rn ., ~~ ~I")"I~ ~:t;lt)/T".1't ~~ ~, 000. ~'o ~ , t 1.....,11 3. ~r.(1 ',,',tll'-"I~' .~:rl, <l('/',I..t! . ~ .1 (t(r. (II) ',' ;".',:'ti,:on "")~(II)- Bid t'HIll l'.(I(I_~(II)-J r"l'~o?n~ (",.II1.:t.}.:." .::~ I .. ... .. ... 'f:: - - - .. An,Ji to IOSllR ~ I'OWI.Il A$SOCIAIlS " 817 W. rln~l AVE. r ./ '. . liartlll!lt th!rttlhll l'Akl\~SOUp'I), M 193&!I' , .f ., m.;J'\/.!IWI " ~. ; l , I!. f~ "'," Dlvrstoll 0 - 1I111111NC AlII> CON'll'.ACt REQUIIUJlt!lrs SECTlo" f)()01<l ADVEP.tISF.HEtII' ton RillS rnOJ ECt: lttJ1oVM. ANo ltF.n^t;11~F.HT Ill' ~TOIlAt:E TAIlI( S'(Snit . " to", pllft Ilt:clllt!t Uwntvlnt. lid FMt A. .i "All 1.000 ,~Ltnrt Ahov..rol.lrtd dhul full Hot"~~ tAnk 'JHlI h..;dHAd 11Iplh~ ~ltd m<lrllPlcdtl"II' ~cl lhl tU1f1 ,dln\'1b'Jtl,," .y.t:~m 1I1thl" t:hd I.IIUtll..AtH trIlHIII."t IiIAlIt 8A11tlt:Uclt: bUllrll,,!:. PART II It t"6 tAml>v~1 elf ~1I IldltH". ~.OUO ,al\dll uhd.,&r"",ul dluel f,j~l HDt'lI~1l tank Illld It. U'lIeU~'d j111l1111. OUNElt (HAlling Addrq..): tlo!J~III'GTl)UII AIH:^ IH:c IOUAl AUtllrJll.ltv .I".""h tltotcl. Admlnl.ttlltor I'. IJ ftuJ( 9 t.I.'"t, PA 193/,1 "nt'A III I)OGtlHl:I'TS tROll (IIn III "t Address): cMWHT nUH"r;, INC. no om U 70 1'.0. 8o~ ~71UO llarrL.burl, r^ 171t)~. HOO (^ttrt: Hr.. k.lly ~"'N~r~h) (rh. No. /11.761.1211 tl<t:. :112.1, DocutU:UT cost (Uoh'ref"n,l^bt~). $H.oo: ~Iakd ch~,:ks I'AydbU ~~ d"'hoH rhtnll1~, lh~. DocutlEHTS oN DI~pIA'(: r)OJn6r'. otflc' ~h,1 the t"lIll1.er' i OHle6(~I. 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'~o t.'o I 'II '"i)b "'0 'q Q :"v "'f'.., , "II : "'" I t;v .'" ..... 1"\ 1"\ "" 1"'\ ,.. ..- r" . '" 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 ., , , '. ,. ~__',. '.,!"Mitl _."."n~; ,..,....".,- , '1'j;-llr'" ", .,f' '."I',-:":';~"L'_J_.::'\LI>_:__'_'...,.::I_t__i",-:,~_(_u;-u-','_i,__I___ _, __,.nn.:_'-l\-_-:'~J'if.~ ,j,..'b i,'ili;:r.~Cuj.ir'~u'ir~\\._\~, I"r~.~~ I.j , Ocr rr ': \I fIj 13 AH '9~ .' ,"< ;~ '.,"'y ,( .:,l( . " " , , " , , '-'1'+'-"~'~'- '_Trl-~i<1"'~~'___~'''''' , ,r"", _,' ,.1' I' " l' I, I \~ ,. ! tl , ~ o. ':# J' . , '" . " ~,. ',.1, , ," , .J . . ',:","'"'-- ,rw"ihl.' " ,j ..1_ . . . .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, , 11fO., , .leiatiff. , , 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--"': /~/. , .-' ,~ ( "{J~ , ----- ." , , ',," , ~ . . ~. 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 --, .. . ~uu Ii, nn 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.... :I fl)OO,OO '00.00 '000.00 noo.oO 2.100.00 1000.00 1000.00 100.00 J.&I...&u.a.u . tll...-"",-, L.~,.... ;:,.....,....1 a,.....'..... ill ................. U ... .,.. c: _, >< UWoo:( ~: ..- lt~ .J 'I I -'- '-. ~.- ---------.- - - ." " ~.. '-.. "'--, '-.~ " '~ ~~, ) t:l ~'~, I." :>; ~ ~ ~~ ............ ~~~-- ~J '........... ~__ v, ~ ~~ ,,-- ~""'-- "'--.=- '- ~..............., :---...... - .1'&;> . ,(t;h- . __ :;~'o.) ._~ ~ '''0. "~_. ...........-9,(t/).~v - ) ~~"S . J,,:;'::-..... '-..!O ........ 0; ~' ----.. - ~ ;r. ~ I;: ~J VI '" ..J 0 .~ VI n. g ~ Q rY. I" W -. ..J Z ~ n. C> :>: :r. .( n. II: v, - '-- - " ~ '. /' .' , f '~l l~' ~',:! () t.ol I',) , I)' \t,l \..... 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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 TO'l'lIL 1'F.'I'IWr.,Etrn IlvrmOCARnml (GCI nn) I [1'1'F:X MrhLVn.T.f. (EI'A n020) Sompln 10: TPI! (mg/Ji:g) 11ell 1'01 r:l:l..,n Xvl" (ug/l(g) ------------------------------------------------------------- 5%1.1-:\ f1 E r::nd 0:1.0 nln . 5%n-' #2 N Pond 0:10 n/n , !i!'i!,[\-) 11 1m s lrJ(~ <10 n/n 5%B-" Ir. 5""1 !.;.lr]n <10 fl/~ !)!5(,B-'5 #5 SE SicJn <10 fl/n !,!),;n -G "., I1E 1':id", <10 n/D mg/Rg - mllllgram",y,llogr~m IPnrt"/mll1l~n) uglY-I.' ~ mit:'rn<lrnm~/)(Unq"[1m I.,.n.tll/bl U lon) Rr.>vi"wnd tlnd nobmiU:t;',1 by, jl~ii12sh'-";,, Jlenrwylvnnll1 O"pilYbn('lIt (Ie F:/lvlrl'nn'llllllll nllt!ourC(!!I NDllelc~tlon Cor Clo"url!/ch~n9c In ServIce "U: ~NUI:r. Firl! HnrIJh;Il.l 00 Elmllr ton Av~nlln ullJlJUtlJ, I'll 1'lltO I)/lTP.! U4-27,"9:1 ",nOH: I,lndtl II. H~lIn':I: r.~~ nlnq"m~n notl~ orrttlnnn, I'll J'1J!.i:I Cortlrll!~ Inntnll~r 14] CONTnll~Ton: Gnnt~ Rxcnvntlno IIIc. C~r t tr I,,~ C:"ml'"ny 1 n 1'1I0NE: 711-334-111105 ~MW.~~.'~a~~.""n~~~~~~~~~m~~":~=~~===t~~I~~~L.~anc=~n~==."~.w.ft.~~~- T1\NK O~lNlr.rl: (J1'l'tynhllrlJ CoIl CHJ(! M"'"J1:r.n: IInt!:h W'IIlhl"ql.nn nl:rl'l!t C''':l:ynl'''"g, r!1 J 7J1.5 CONTIIC1' : HtIt I:y crnlJl11 I'"IICH,JTY J.D.': Ill.. roll !l~1I1 I'"ACJI,ITY NIIHF:: Or.tl:Yllhlllq co1.1"'JIl III)'ml~r.n : "AHI': 110 1I110Vr:: LOCATIO", nr.H.ynhllr'J, I'll c:mIflTY: 1111 ,1 mil tfllNJC:ll'1I1.ITY: ""~""9h or Onttynhu,g -~'!:tP'1.~'" ..-.................."....... .==r~n:a=r,I==tu :\IJ,r.; ...:... ......n".,..,." II"'t1""'--:"" --':'"':"':" ":'~:' :::':':::':=1 = =::1 ~ Tl1llk n"~\lItl~tl,," Uumbl!r: 00.1 Tnnk t:J'lr: 11000 Oollon "I'nll",,1. : llnollnlJ OIl type or Clonurnl "",""vnl . . ~it;'!. .5 k ~'h: (" . I \ , " . . ~ ,. ,.- -- -i:i\,..:(llt:'-- --, -- I .~ t'rr I I h I ~"...,\cr. I -- I I~^,.I'LI!. " Sf A (!, ~\-.{' ~~\ , VI'lL,II, " ", It? I I I I 'n 0 'e, I , ,roV- I IJ I I . , , Sil'''''' , Lt!: i;~f~~ . ::{ \: ,~ fa .? .;7 . ,., I ~ pllrY\'\ ' -,'I I f\rrd. , (,..j.Ql....(j $ " I ~~~ 7___ , I ~ - - - '-- (. V 1<'-'- :J'- --M N t." "" 'j .' .. ~ ~ I '.. . 1, .' . .. ' , _ . I '. .. _ '. ""'~ ~..." 1,'_ .." .' '- 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 .70S I. TnlNDlUIOADI MICHANICSlUAO. PA 110!! I ""ONlltl1j1:t1.'1311 'All (,t1) ':l1.1tll ~ . . . It:os:olll"^",, III~ Mll/Ut'Il_UM ~AiI"'~I. . . llo;o':.,.llIb"t tli, .t !I!IJ ^UI't: Ed 1:",11')';1';' ';.;.11"';1'1 En'll t':'I'III,,'IIt.,1 $';>t'll,:.;>~, II',,:'. ,l1nr:- E. 'rtlrl.:Il.;o p'(',,:l '.l'~';hMIi<,,~'blJt';I. ~',. J!I.h;~. ['oil., t Ed: 1-I,,:;L8 r'I.;..3~:",.:1 t.;. l"':!T,,:.',d ~.;, .,.,;"H l';"~'.I,,~t f';'1 1:'1.:.t:";I:!:1l1 1;,.;.1 bdl,lh.;1 t,;. tl,,,, pr..;.j'?d 9"t i t l.;!d tl.t!rItdV;U 1II1d RepHcemehl: bt !I1:"tlI1,#8 T;lhlt Sysl:elli fat bowhihgl:oWrl Ate" tl.eg:l.tlH:t1 Aul:hotil:y; ^::'\I',Il':l~..I, 1 llU>?nd'?d tho;> 1n"',,:!atNy t.to;.-bld dto;, '!bH. W9 .;t1:!',;, "'7jll1t,~.J' tho;> G.:llrlroiltt F'1.;!lnrnltt',1 t't':'jl'\et f1,~lrlJ"l f.....t EI,';lll'.;o,'u: r'l,:>j9'.'~ fl.:>. ..?4('10 .Ihkh e(''l'~t:!' th.;, :!',:llll'~, Our PI:"P';'~:.:ll t" I'.t.)vi,:f.:. .:111 :!,,;:tvle'~:!'1 .;>ql.lirmoent M,,;I 1n.,t"rh1:!' in:le,:,.;.td:'lI'I':.;l .lith .nll H,:,tl: t>?1at'l'd ';('I',t t,':t I." 1 t9q;":'Ir::' i bi 1 i t y ~:U t"l.fh t.;>d 1 II PI.:.j.>d ".nhl.l,31 ,II,). ..?~ 01 (I t':'1 ",.3':h Ii"", H';'m ':P.f,;.t.;>o1, f.;.,~:t~t. ~ P';'w,,>IJ !\:!'~":"=int",.:!, III':. d.:.",:!, t.:!I:'? or,,? '?:-:r::.;!rt l-:'Ir ':.',ly t,';' f'.ll:Id:!'hin':1 pt i1""t '>' .:ot ~".ll:ooHit,ato;o <'III'.,ty. 14.', h.,V.> 1"....,.'.""'.., 11..> '...ll....wll',.:1 II".:. I t"'II' ,.t'-'r,,":-:'" to'. ,:,:--;,!>?,!,!:";'I',.:! ~tith Iii,'" it';'I",,' .;." U'9 bid d"":'.II""'I,L fOSTER LP(~~JE:.g M~~(lo~I^TE:3 HI,:;. N~1<::E:S TO ';E~LE(;/~J:IN_.v{O~ltlE:N'i'AI..! :::o?':'tioll ('('.)(1(1 - 8i,:1 F.)t1n p, (11)30:1('.1 P,;t l' t A W-:\ t J:. . . . . . . . . . . ~ . . . . . . . . . . . . . . . . . . . I . . . . . , 10 . . ~: It.3, B (H) . (II) p,] 1 t [\ \-10:' r r: Iii' . . . . . . . . . . f , . I .. . . . ; i . i , . l , . . . i . . ~ & ;, . I'~ 4 ~I' 4 (II). (1) ::;".:.t!OI1 ')('.)1)0- Bi(1 f.)tln r'. ('(IJ(I(.-..? I t~'I" Ik.~'. E~:t. Qty. Proi t~' T.:.bl AJIl';"J"t I t '~11l I, H"'1Il :2. I....", J. 2~1 t(lrl.! :~ ~'='''It :1~H) ':1-":111 '.Itl~~ :;:8(I/T.;." ~:t;l(I/T.;.... .~: (I. 8('/',t:~ I. . ~:::: j (11)1). (II) ~::: . ('(10. ')(1 ~ 4(1(1. (II) 2Q~ti011 00.)1)(1- Bid ~)llll t.on](lO-] [:'''l.~>?tlt r.;..:II.I-:U.;." ..?~ ) . A rn,Jj ~o IUSIEn a I'OI'lF.ll A$SOCIAlES 'f:: '. .. 1111W. tln1J1 AvE. ,f' .. . ~AR~~SBUP.~.~^ 193$5 t .1. " ,. . ..l ' . . tutltll!lt "hllltllld m.;J:\I.I"~rt "'. " ,.., :' ... ;.~ . I'" Ii (. '0',' ." .t~ . 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IlIdd.tlt:ll to tI,. \Jork ot thl! hdj@et trtd Jhdl b. .eeomp4nltd by A cet'tltled ebtek or Aid ~olld In 4rt dmoune hdt t... thAM till (to) percent of th~ Blo:l tdbll Aud mA,I. pdyAble td the bOlJNlIICTOt.nl MU RECtON.\!. AUTHORIty. [rtlln".r'. 107 !ollHf ChI' IlIll. rh:fitedl Ao:lJr~H' Avtu"...!! rA 17011 S.p...t. eopl.. of DrA~lntt m~y b. I'Ureh^!I6d :II: $1.00 eaeh O~Alllng ,"d rroJaet ~4nual p~g.~ rtt ~O.2~ e4eh ~rtB~. Thd~~ obtallllrtt ~~prt~~t~ e~pl.~ of th& >>r.~ln~. nnd ProJ.ot Hrtrtu~1 pe,~1 ~t' t~~p~n.lbt~ for abt4ihlnA Add.nd4 p.rtelnlng t~ ouch. Srt"dt.t6 eo~I~J AHd Addertd4 Illtor~dtlo" Ata &.elt4bla (ram th_ [nglno.t. 2f.010 fllHlJll.l 10 J I . l~ l~ ~ ~ l~ .~ C'"l ~ ~o ... ~t ci ~ ",('I ~~ . ~~ ~~ ~ il ':&J ~o ~ Q~ i ~i 0 8 ~ , ~ ~~ ~ ~ 3~ ~ ~ i ~~ ~ ~. ~ ~ ~ ~ O~ 0 0 ci 0 ~o ..... 00 - '" - ..... VI VI VI - VI ~ 8 ~~~ "Cl "Cl "Cl "Cl "Cl '"Cl c: c: c: c: c: c: ~ ~ ~ ~ ~ ~ ~ ~ u - -. :;!~8 '" ('I ~ 0\ 'D '" ('I ('. '" ~ :B !-<;::l~ .t "1- ('I 00. oOu.. 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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 '.. ..... ~., ,. 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 ~ HII' CllmIlIfIlnd Calldr~,~ , ..., COM\IIS InI Mnll1. , i.~;I~~i'I:. .'_'., i _.~,.. '.'eU.....:.. ,I '. 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