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

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 , 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 , 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 16:14:15 Desc ExhibitEXHIBIT B Page B 2 of 3 Officers Duties and Responsibilities 6. Paul Jacobson. Mr. Jacobson is the Executive Director of Mesabi Academy and Iron Range School. Mr. Jacobson oversees the day-to-day operations of Mesabi Academy and the Iron range School

7. Scott Merritt. Mr Merritt is the Executive Director for KidsPeace Georgia. He oversees day-to-day operations of the Georgia campus.

8. Susan Leyburn, Vice President Compliance . Ms. Leyburn has served as the Vice President for Compliance since August 2006. She joined the Company in July 2004 as the Director of Compliance. Ms. Leyburn is responsible for planning, organizing, and managing the KidsPeace Compliance Program, as well as oversight of the policy development process, medical records, legal affairs, risk management activities and the quality assessment and improvement program.

9. Ken Olson, Director of KidsPeace New England and Clinical Director for Foster Care and Community Programs. Mr. Olson joined the organization in 1999. Mr. Olson oversees all programming and support functions for KidsPeace in the state of . Additionally, he oversees the development and implementation of all clinically programming at our foster care and community program locations across the nation.

10. Ray Culp, Executive Director for KidsPeace Foster Care and Community Programs. Mr. Culp joined the organization in 1993 and has overall responsibility for all KidsPeace foster care and community programs. KidsPeace operates foster care in 8 states and the District of Columbia from 29 different locations.

11. Debra Hayes, KidsPeace foster care Program Manager for Columbia, . Ms. Hayes joined the organization in 2013 and has direct responsibility for all services delivered from our Columbia office located in Maryland

12. Ericka Chukwuanu, Clinical Supervisors for our Columbia, MD foster care office. She joined the organization in 2011 and is responsible for supervising, developing and delivering all clinical services to our clients served in Maryland

13. Gina Seyfried, Manger of Volunteer Services. Ms. Seyfried joined the organization in 2010. She is responsible for the recruitment and management of all volunteers and mentors assisting our clients in Maryland. In addition, she oversees community relations within the state of Maryland and the District of Columbia.

14. Michelle Williams, Executive Director of PA Residential and Education Programs. Ms. Williams has been employed for over 20 years at KidsPeace. She oversees all PA Residential and Educational services.

15. Chris Ferry, Executive Director PA Community Programs. Mr Ferry oversees all PA Community Programs including but not limited to the Broadway Campus, Berks Campus and Outpatient Services Case 13-14508-ref Doc 130-2 Filed 06/12/13 Entered 06/12/13 16:14:15 Desc ExhibitEXHIBIT B Page B 3 of 3 Officers Duties and Responsibilities

16. Gerard Gleeson, 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. Gleeson joined KidsPeace in October 2012 and assumed his present positions in January 2013. Mr. Gleeson is responsible for the daily functioning of the finance department.