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In the United States Bankruptcy Court for the Eastern District of Pennsylvania

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In the United States Bankruptcy Court for the Eastern District of Pennsylvania Case 13-14508-ref Doc 130 Filed 06/12/13 Entered 06/12/13 16:14:15 Desc Main Document Page 1 of 2 IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA In re: Chapter 11 KidsPeace Corporation, et. al.,1 Case No. 13-14508 (REF) Debtor. NOTICE OF INTENTION OF THE DEBTORS TO COMPENSATE OFFICERS PURSUANT TO RULE 4002-1 OF THE LOCAL BANKRUPTCY RULES FOR THE EASTERN DISTRICT OF PENNSYLVANIA The above-captioned debtors and debtors-in-possession (collectively, the “Debtors”), by and through their undersigned attorneys, hereby file this notice of intention to compensate officers pursuant to Rule 4002-1 of the Local Bankruptcy Rules for the Eastern District of Pennsylvania and respectfully state as follows: 1. On May 21, 2013 (the "Petition Date"), each of the Debtors filed a voluntary petition for relief under chapter 11 the Bankruptcy Code. The Debtors are operating their businesses and managing their property as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. 2. The Debtors intend to pay compensation to the corporate officers on an annual basis as set forth on the attached Exhibit “A”. 3. As reflected on Exhibit A, the annual compensation for each officer on the ninetieth (90th) day prior to the Petition Date has not changed. 4. The officers duties and responsibilities are set forth on the attached Exhibit “B”. 5. Compensation is paid directly by the Debtors.2 1 The Debtors and the last four digits of their respective taxpayer identification numbers are as follows: KidsPeace Corporation (3394); KidsPeace Children’s Hospital, Inc. (4910); KidsPeace Mesabi Academy, Inc. (4179); KidsPeace National Centers, Inc. (4908); KidsPeace National Centers of Georgia, Inc. (7440); KidsPeace National Centers of New England, Inc. (1326); KidsPeace National Centers of North America, Inc. (4765); Iron Range School, Inc. (0561); and KidsPeace National Centers of New York, Inc. (1888). The Debtors’ address is 5300 KidsPeace Drive, Orefield, Pennsylvania 18069. Case 13-14508-ref Doc 130 Filed 06/12/13 Entered 06/12/13 16:14:15 Desc Main Document Page 2 of 2 6. Any creditor or other party in interest who objects to the continued compensation of the officers reflected on Exhibit A must do so in accordance with Local Bankruptcy Rule 4002-1(e). NORRIS, McLAUGHLIN & MARCUS, PA The Paragon Centre 1611 Pond Road, Suite 300 Allentown, PA 18104 [email protected] proposed Counsel to the Debtors and Debtors-in-Possession By:/s/ Joseph R. Zapata Joseph R. Zapata, Jr., Esq. Dated: June 12, 2013 2 With the exception of Paul Jacobson, who is paid directly by KidsPeace Mesaby Academy, Inc., the officers are paid by KidsPeace Corporation. 35153-1 2 Case 13-14508-ref Doc 130-1 Filed 06/12/13 Entered 06/12/13 16:14:15 Desc ExhibitEXHIBIT A Page A 1 of 3 COMPENSATION OF OFFICERS 90 Days Prior Annual Annual Car Total Total Officer Title Compensation Allowance Compensation Compensation William Isemann President and CEO of KidsPeace Corporation; $ 297,000 $ 9,360 $ 306,360 $ 306,360 KidsPeace Children's Hospital, Inc.; KidsPeace Mesabi Academy, Inc.; Iron Range School, Inc.; KidsPeace National Centers, Inc.; KidsPeace National Centers of Georgia, Inc.; KidsPeace National Centers of New England, Inc.; KidsPeace National Centers of North America, Inc. James Horan Executive Vice President, Chief Financial Officer & $ 173,576 $ - $ 173,576 $ 173,576 Treasurer of KidsPeace Corporation and Assistant Treasurer of KidsPeace Children's Hospital, Inc.; KidsPeace Mesabi Academy, Inc.; Iron Range School, Inc.; KidsPeace National Centers, Inc.; KidsPeace National Centers of Georgia, Inc.; KidsPeace National Centers of New England, Inc.; KidsPeace National Centers of North America, Inc. Michael Slack Executive Vice President - Business Development of $ 165,000 $ 8,520 $ 173,520 $ 173,520 KidsPeace Corporation and the Secretary of KidsPeace Children's Hospital, Inc.; Iron Range School, Inc.; KidsPeace National Centers of Georgia, Inc.; KidsPeace National Centers of New England, Inc. and Executive Vice President of KidsPeace National Centers of North America, Inc. Case 13-14508-ref Doc 130-1 Filed 06/12/13 Entered 06/12/13 16:14:15 Desc ExhibitEXHIBIT A Page A 2 of 3 COMPENSATION OF OFFICERS Susan Mullen Executive Vice President - Programs of KidsPeace $ 150,000 $ - $ 150,000 $ 150,000 Corporation and KidsPeace Children's Hospital, Inc. and Secretary of KidsPeace Mesabi Academy, Inc. Gayle J. Norris Secretary of KidsPeace Corporation and Assistant $ 54,720 $ - $ 54,720 $ 54,720 Secretary of KidsPeace Children's Hospital, Inc.; KidsPeace Mesabi Academy, Inc.; Iron Range School, Inc.; KidsPeace National Centers, Inc.; KidsPeace National Centers of Georgia, Inc.; KidsPeace National Centers of New England, Inc.; KidsPeace National Centers of North America, Inc. Gerard Gleesan Treasurer of KidsPeace Children's Hospital, Inc.; $ 150,000 $ - $ 150,000 $ 150,000 KidsPeace Mesabi Academy, Inc.; Iron Range School, Inc.; KidsPeace National Centers, Inc.; KidsPeace National Centers of Georgia, Inc.; KidsPeace National Centers of New England, Inc.; KidsPeace National Centers of North America, Inc. Paul Jacobson Executive Vice President of KidsPeace Mesabi $ 70,000 $ - $ 70,000 $ 70,000 Academy, Inc. and Iron Range School, Inc. Michelle Williams Executive Vice President of KidsPeace National $ 115,000 $ - $ 115,000 $ 115,000 Centers, Inc. Chris Ferry Secretary of KidsPeace National Centers, Inc. $ 80,000 - $ 80,000 $ 80,000 Scott Merritt Executive Vice President of KidsPeace National $ 93,184 $ - $ 93,184 $ 93,184 Centers of Georgia, Inc. Executive Vice President of KidsPeace National $ 107,049 $ 6,120 $ 113,169 $ 113,169 Ken Olson Centers of New England, Inc. Secretary of KidsPeace National Centers of North $ 122,069 $ - $ 122,069 $ 122,069 Sue Leyburn America, Inc. Vice President of KidsPeace National Centers of $ 71,000 $ - $ 71,000 $ 71,000 Debra Hayes North America, Inc. Vice President of KidsPeace National Centers of $ 55,000 $ - $ 55,000 $ 55,000 Ericka Lee Chukwuanu North America, Inc. Case 13-14508-ref Doc 130-1 Filed 06/12/13 Entered 06/12/13 16:14:15 Desc ExhibitEXHIBIT A Page A 3 of 3 COMPENSATION OF OFFICERS Vice President of KidsPeace National Centers of 46,350$ -$ 46,350$ 46,350$ Gina Seyfried North America, Inc. Case 13-14508-ref Doc 130-2 Filed 06/12/13 Entered 06/12/13 16:14:15 Desc ExhibitEXHIBIT B Page B 1 of 3 Officers Duties and Responsibilities 1.William R. Isemann, President and Chief Executive Officer President of KidsPeace Corporation; KidsPeace Children's Hospital, Inc.; KidsPeace Mesabi Academy, Inc.; Iron Range School, Inc.; KidsPeace National Centers, Inc.; KidsPeace National Centers of Georgia, Inc.; KidsPeace National Centers of New England, Inc.; KidsPeace National Centers of North America, Inc. Mr. Isemann has served as the President and CEO since September 2008 after joining the company in June 2006 as Executive Vice President and Treasurer. Mr. Isemann has worked against challenging national financial trends in the behavioral healthcare industry, strengthening management and accountability within the company. 2. James Horan, Executive Vice President, Chief Financial Officer & Treasurer of KidsPeace Corporation and Assistant Treasurer of KidsPeace Children's Hospital, Inc.; KidsPeace Mesabi Academy, Inc.; Iron Range School, Inc.; KidsPeace National Centers, Inc.; KidsPeace National Centers of Georgia, Inc.; KidsPeace National Centers of New England, Inc.; KidsPeace National Centers of North America, Inc. Mr. Horan has served in such titled positions since June 2011. He is responsible for all corporate and administrative matters. He focuses on planning, developing, organizing, directing and evaluating the organization’s strategic, operating and financial operations and performance. 3. Michael Slack, Executive Vice President - Business Development of KidsPeace Corporation and the Secretary of KidsPeace Children's Hospital, Inc.; Iron Range School, Inc.; KidsPeace National Centers of Georgia, Inc.; KidsPeace National Centers of New England, Inc. and Executive Vice President of KidsPeace National Centers of North America, Inc. Mr. Slack has served in such titled positions since January 2011. He joined the Company in January 2001 as Director of Business Development and is responsible for all fundraising, business development, strategic planning and foster care services. 4. Susan Mullen, Executive Vice President - Programs of KidsPeace Corporation and KidsPeace Children's Hospital, Inc. and Secretary of KidsPeace Mesabi Academy, Inc. Ms. Mullen, RN, has served in such titled positions since September 2011. She has provided nursing and clinical management services for KidsPeace clients for more than 19 years and is familiar with all phases of treatment. She has also assisted six out-of-state KidsPeace programs in establishing nursing care services and adherence to quality nursing standards. 5. Gayle J Norris, Secretary of KidsPeace Corporation and Assistant Secretary of KidsPeace Children's Hospital, Inc.; KidsPeace Mesabi Academy, Inc.; Iron Range School, Inc.; KidsPeace National Centers, Inc.; KidsPeace National Centers of Georgia, Inc.; KidsPeace National Centers of New England, Inc.; KidsPeace National Centers of North America, Inc. Ms. Norris has been with KidsPeace for 13 years. She has served as Executive Secretary supporting the President and CEO, EVP/CFO and the EVP/Programs. She supports the Board of Directors as well as the Board Committees. Case 13-14508-ref Doc 130-2 Filed 06/12/13 Entered 06/12/13
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