Preview
)$*"+
Robert !, -."-/01
H. Ziprick (SBN 234
069571)5
()6'+7'6
Jonathan ,
R. -."-/01
Ziprick (SBN 8895
283842)
&
ZIPRICK
CRAMER, LLP #;<
E-FILED
1233 Brookside
:
Avenue,
=>*--'=??)@-A?>@??6B*C
+*
Ste
A
<4<2
12/5/2017 C3
2:26 PM
Redlands, CA 92373
FRESNO
; COUNTY SUPERIOR COURT
?=D<?E??F/=??==GH
4 * *.7)6*C
Telephone: 125
(909) 8#4224
798-5005 By: M. Sanchez, Deputy
;'/I-J- *C
Facsimile: 125
(909) 899
793-8944
5
++)"6*HI
Attorneys for *+-+-)6*"
G)"Petitioner
!
IVES
JOANN
(
SUPERIOR
COURT ; OF !THE
STATE; OF ;
CALIFORNIA
;
FOR ! THEK
COUNTY ; OF ;FRESNO
10
6
In "*C
re: !
THE!K
SHANTY,,INC. 'I*
Case BJ$*"C
Number: 29
17CECG04197
12
;
PETITION FOR
APPOINTMENT ;
OF
]3
(
Petitioner, JOANN
*+-+-)6*" IVES PROVISIONAL
DIRECTOR
14
15
16
17
18 *+-+-)6*"(
Petitioner
!!!!"#$#!!"#!
)66Ives
JoAnn L*Irespectfully
"*I.*/+GB H"*."*I*6+IC
represents:
19 1., 7*Shanty,
The 7'6+H Inc.
6/, 1+7*
(the M)".)"'+-)65
"Corporation" ) -Iis a /)".)"'+-)6
'corporation )"?'6->*A
organized '6A
and existing B6A*"
*F-I+-6? under
%&' (! !
20 +7* *6*"'
the General )".)"'+-)6Law
Corporation '%)G
of ' -G)"6-',
California. 7*
The )".)"'+-)6
Corporation ).*"'+*I
operates '
a +'L*"6
tavern )/'+*A
located at 4
'+375 'I+
East
2] 7'%Avenue,
Shaw L*6B* Fresno,
;"*I6) California,%7-/7
' -G)"6-' which ).*"'+*I
operates 'I
as M7*
"The 7'6+H,
Shanty." 7*
The )".)"'+-)6
Corporation 6BJ$*"
number is
-I
22 928,
3799408.
23 ,
2. 7*
The ."-6/-.' *F*/B+-L*
principal executive )G=/*
office )G
of +7*
the )".)"'+-)6
Corporation is )/'+*A
-Ilocated in ;"*I6)
-6Fresno )B6+H,
County.
24 ,
3. *+-+-)6*"
Petitioner ()66
JoAnn L*I
Ives 1M()665-I
("JoAnn") is 'director )G
a A-"*/+)" of +7*
the )".)"'+-)6
Corporation '6A
and )%6I
owns =G+H
fifty
25 .*"/*6+
percent )G
of +7*
the I7'"*I)G
shares of +7*
the )".)"'+-)6,
Corporation. ()66-I
JoAnn is -/*
Vice "*I-A*6+<*/"*+'H#"*'IB"*"
President/Secretary-Treasurer )G
of +7*
the
26 )".)"'+-)6,
Corporation.
27
28
;
PETITION FOR
APPOINTMENT ; PROVISIONAL
OF
DIRECTOR
9,
4. 7*)".)"'+-)6
The Corporation 'B+7)"->*Aby
-Iauthorized
is $Hits articles
-+I'"+-/ *I 7'L*
+)have,
to '6AA)*I
and does 7'L*
have, '$)'"Aof
a board +%)
)Gtwo
A-"*/+)"I, 7*
directors. The )+7*"
other ."*I*6+A-"*/+)"
present director is '"*6/*
-IClarence )%* 1M '"*6/*5
Newell %7)owns
("Clarence" ) who )%6I=G+H .*"/*6+of
fiftypercent )G
+7*
the I7'"*I
shares )G
of +7*
the )".)"'+-)6,
Corporation. '"*6/*
Clarence -I"*I-A*6+
is President )G
of the )".)"'+-)6,
+7*Corporation.
4,
5. 7*7-I+)"H
The )G+7*
history of the )".)"'+-)6
Corporation "* *L'6++)
relevant this .*+-+-)6
to +7-Ipetition is 'Ifollows:
-Ias G) )%IC
a.
', 7*6the
When )".)"'+-)6was
+7*Corporation %'I*I+'$ -I7*A
established in (B6*2015,
-6June 2 4 )66contributed
(
JoAnn /)6+"-$B+*A
!
N4 222-6
$ 35,000 in /'.-+' ,
capital.
$,
b. ()66
JoAnn *6+ '"*6/*$N4
lent Clarence 222I)
35,000 so 7*
he /)B Apurchase
could .B"/7'I*7-I
his I+)/0in
stock -6+7*
the
)".)"'+-)6,
Corporation. '"*6/*agreed
Clarence '?"**Ato
+)"*.'H
repay ()66the
JoAnn +7*'J)B6+
amount )G$N92
of 430 .*"J)6+7
per month '6A
and a'lump IBJ
BJ.sum
.'HJ*6+of
payment )G$N4 222in
25,000 B?BI+2015.
-6August 2 7"**monthly
4, Three J)6+7 H.'HJ*6+I
payments in July,B?BI+
-6(B H August '6ASeptember,
and *.+*J$*"
2
20154'6A
and )6*
one lump IBJ.'HJ*6+
BJ.sum payment 44%*"*
)G$N 13,559
of were J'A*, !)%*L*"
made. However, Clarence J'A*the
'"*6/*made +7*.'HJ*6+
payment
)G
of $N 13,559
44-6+)
into +7*/)".)"'+*
the corporate $'60account.
bank ()66withdrew
'//)B6+, JoAnn %-+7A"*%)6 H
only $N36,000
222)G
of that 'J)B6+and
+7'+amount '6Aleft
*G+
12 +7*$' '6/*
the balance -6+7*
in the )".)"'+-)6
Corporation $'60account.
bank '//)B6+,That $*/'J*'
7'+became )'6to
a loan +7*)".)"'+-)6
+)the Corporation -6
in the 'J)B6+
+7*amount
"Ig 13
)G
of $N7,559.
44,
* rein
+7'+"*+B"6
utilize that in ."*.'"'+-)6
-6preparation )G 7*".*"I)6'
of her personal -6/)J*
income +'Freturn.
tax "*+B"6,
11 +%'I
Itwas "*/*-L*Aby
6)+received
not $Hher
7*"until -JJ*A-'+* Hbefore
B6+- immediately $*G)"*the = -6?A*'A -6*
+7*filing deadline %-+7
with an'6*F+*6I-)6
extension )G
of
12 /+)$*"16,
October 3 2
2017, forcing 7*"+)
G)"/-6?her to file 7*"personal
= *her .*"I)6' tax
+'Freturn -+7)B+that
"*+B"6without A)/BJ*6+'+-)6, She
+7'+documentation. 7*is
-I
13 G)"/*A +)'J*6A 7*"personal
.*"I)6' tax
+'F"*+B"6 'I' 7*"B66*/*II'"H
/'BI-6?her '6Awork.
*F.*6I*and %)"0,
forced to amend her return as "*IB +
a result,causing unnecessary expense
14 A,
d. ()66'I0*A
JoAnn asked G)"'6
for an '//)B6+-6?)G
accounting of the =6'6/-' '/+-L-+-*I
+7*financial activities )G+7*
of the )".)"'+-)6
Corporation
:
15 $B+A-A6)+
but
did not "*/*-L*
receive IB/7
such '6'//)B6+-6?,
an accounting.
16 8,
8. ()66gave
JoAnn ?'L*6)+-/*
notice +) '"*6/*by
to Clarence $Hemail )6August
*J'- on B?BI+21,
2
2017that
+7'+I7*
she %'I
was /' -6? a'
calling
17 $)'"A)G
board A-"*/+)"IJ**+-6?
of directors
!!!!#!!!!!
meeting +)$*
to be 7* A
held )6*.+*J$*"
on September 2 , +7)B?7
1, 2017. Although '"*6/*
Clarence "*/*-L*Anotice
received 6)+-/*in
-6
18 '+-J* HJ'66*"
a timely manner, '"*6/*
Clarence "*GBI*A+)
refused to attend $)'"AJ**+-6?
+7*board
'++*6Athe meeting ' +7)B?7he
although '/06)% *A?*A7*
7*acknowledged he %'I
was
19 '%'"*of
aware )Gthat
+7'+meeting '6Athat
J**+-6?and +7'+7*
he %'I
was -6L-+*A+)
invited '++*6A$H
to attend by +* *.7)6*
telephone ' )%*Aby
'Iallowed
as $Hthe
+7*corporate
/)".)"'+*
20 $H '%I'6A
bylaws and ' -G)"6-' '%, ()66
California law. JoAnn called +7*J**+-6?
/' *Athe meeting +)order,
to )"A*" '++*J.+*Ato
attempted +)/)6+'/+
contact '"*6/*
Clarence $H
by
21 .7)6*
phone $B+%'IB6'$ *
but was unable +)
to )$+'-6his
obtain 7-I.'"+-/-.'+-)6,
participation. '"*6/*sent
Clarence %)"Aafter
I*6+word 'G+*"she '++*J.+*Ato
I7*attempted +)
22 contact 7-J+)
/)6+'/+him ()66+7'+
to JoAnn that he %'I)$+'-6-6?
7*was obtaining /)B6I* $B+
*?' counsel
legal %)B A6)+
but would .'"+-/-.'+*in
not participate -6that $)'"A
+7'+board
23 meeting. 7*)".)"'+-)6
J**+-6?,The Corporation 7'I6)+
has 7* A'
not held $)'"A)G
a board of A-"*/+)"I
directors J**+-6?G)"
meeting J'6Hmonths
for many J)6+7Iand
'6Ais
-I
24 /B""*6+ H
currently A*'A )/0*A,.)6
deadlocked. Upon -6G)"J'+-)6
information and'6A$* -*G if )66were
belief,-G(
JoAnn %*"*to+)call '6)+7*"$)'"A
/' another board J**+-6?
meeting,
25 '"*6/*
Clarence %)B A/)6+-6B*
would continue in 7-Irefusal
-6his "*GBI' +)
to participate. ()66EIcounsel
.'"+-/-.'+*,JoAnn's /)B6I* '6A
and '"*6/*EI
Clarence's counsel 7'A
/)B6I* had
26 I*L*"'
several /)6+'/+I
contacts but %*"*unable
$B+were B6'$ *to+)"*'/7
reach '6H
any '?"**J*6+I/)6/*"6-6?
agreements concerning +7*A-I.B+*I
the disputes 'I+)
as ?)L*"6'6/*
to governance
27 )G )".)"'+-)6,
+7*Corporation.
of the
28
,9
FOR
PETITION ;APPOINTMENT
OF
;
PROVISIONALDIRECTOR
,
9. 6October
On /+)$*"30,
2 2
2017, ()66
JoAnn proposed +7")B?7her
.").)I*Athrough /)B6I* to
7*"counsel '"*6/*EIcounsel
+)Clarence's /)B6I*
'..)-6+J*6+of
+7*appointment
the )G' director %7- *
6*B+"' A-"*/+)"
a neutral +7*current
while the A*'A )/0continues.
/B""*6+deadlock '"*6/*EI/)B6I*
/)6+-6B*I, Clarence's counsel
"*I.)6A*A
responded +7'++7*
that the J'++*"
matter /)B Anot
could 6)+/)6I-A*"*A
considered until
B6+- counsel %)B Ameet
/)B6I* would J**+with
%-+7 '"*6/*
Clarence '++7*
at the
4 earliest
*'" -*I+)6)L*J$*"
on November 2
2017
9, but
$B++7*"*
there has $**66)
7'Ibeen no /)JJ-+J*6+
commitment to a'date
'I+)
as %7*6Clarence
A'+*when '"*6/*%-
will
"*I.)6A,
respond. I
As )G
of the = -6?)G
+7*filing of this petition, it
+7-I.*+-+-)6 if'6Awhether
B6/*"+'-6-Gand
is uncertain
-+-I %7*+7*"Clarence
'"*6/*will "*I.)6Ato
%- respond +)
!
.").)I' +)
this proposal
+7-I $"*'0the
to break +7*A*'A )/0,
deadlock.
2,
10. 7*
The A-"*/+)"I
directors '"*
are *QB' HA-L-A*A
equally '6A/'66)+
divided and cannot '?"**'I
agree as +)
to the J'6'?*J*6+of
+7*management )Gthe
+7*
)".)"'+-)6EI'GG'-"I,
Corporation's affairs. 7*/-"/BJI+'6/*I
The circumstances creating +7*division
/"*'+-6?the A-L-I-)6are
'"*'I
as G) )%IC
follows:
',
a. '"*6/*
Clarence 7'Irefused
has "*GBI*Ato -6a'recently-called
.'"+-/-.'+*in
+)participate $)'"Aof
"*/*6+ H /' *Aboard )Gdirectors
A-"*/+)"I
J**+-6?
meeting 6)+-/*Aby
noticed ()66'I-/* "*I-A*6+<*/"*+'"H#"*'IB"*"
$HJoAnn as Vice-President/Secretary-Treasurer, 7'I
has not /' *A'
6)+called a board )G
$)'"Aof
A-"*/+)"IJ**+-6?
directors meeting 'I
as "*I-A*6+'6A
President and -I. '/-6?
isplacing the )".)"'+-)6into
+7*Corporation )Gits
-) '+-)6of
-6+)violation $H '%I'6A
-+Ibylaws and
)".)"'+-)6Ilaw
Corporations '%$H
by the )G.'"+-/-.'+-)6
'/0of
+7*lack participation -6$)'"A
in board J**+-6?I,
meetings.
$,
b. '"*6/*
Clarence 7'I"*GBI*A
has refused to 7)6)"
+)honor 7-I'?"**J*6+
his agreement to ()66on
"*+'-6JoAnn
+)retain )6the $'60
+7*bank
'//)B6+of
account )G+7*)".)"'+-)6,
the Corporation.
2,
c. '"*6/*
Clarence 7'I
has "*GBI*A
refused to %)"0
+) %-+7(
work with )66-6
JoAnn 7*"role
in her 'Ia'A-"*/+)"
") *as director '6A
and
officer )G
)G=/*"
!!!!!!!!!!
of the
+7*)".)"'+-)6,
Corporation.
17 d.
1 , '"*6/*
Clarence 7'I
has "*GBI*A
refused +)/)6+") his
to control 7-Igirlfriend's
?-" G"-*6AEIuse )Gthe
BI*of /)".)"'+*credit
+7*corporate /"*A-+
1S /'"A,
card.
19
NNRN!'*JQ'J' !S
3,
e. '"*6/*
Clarence 7'I.'-A
has +7)BI'6AIof
paid thousands )Gdollars )Ghis
A) '"Iof .*"I)6' bills
7-Ipersonal $- Iout )Gthe
)B+of +7*
)".)"'+-)6EI
Corporation's $'60
bank '//)B6+
account or %-+7
)"with -+I /"*A-+/'"A,
its credit card. 7*
The exact 'J)B6+is
*F'/+amount -Inot 06)%6,
6)+known.
21 f.
G,
Preview
)$*"+ Robert !, -."-/01 H. Ziprick (SBN 234 069571)5 ()6'+7'6 Jonathan , R. -."-/01 Ziprick (SBN 8895 283842) & ZIPRICK CRAMER, LLP #;< E-FILED 1233 Brookside : Avenue, =>*--'=??)@-A?>@??6B*C +* Ste A <4<2 12/5/2017 C3 2:26 PM Redlands, CA 92373 FRESNO ; COUNTY SUPERIOR COURT ?=D<?E??F/=??==GH 4 * *.7)6*C Telephone: 125 (909) 8#4224 798-5005 By: M. Sanchez, Deputy ;'/I-J- *C Facsimile: 125 (909) 899 793-8944 5 ++)"6*HI Attorneys for *+-+-)6*" G)"Petitioner ! IVES JOANN ( SUPERIOR COURT ; OF !THE STATE; OF ; CALIFORNIA ; FOR ! THEK COUNTY ; OF ;FRESNO 10 6 In "*C re: ! THE!K SHANTY,,INC. 'I* Case BJ$*"C Number: 29 17CECG04197 12 ; PETITION FOR APPOINTMENT ; OF ]3 ( Petitioner, JOANN *+-+-)6*" IVES PROVISIONAL DIRECTOR 14 15 16 17 18 *+-+-)6*"( Petitioner !!!!"#$#!!"#! )66Ives JoAnn L*Irespectfully "*I.*/+GB H"*."*I*6+IC represents: 19 1., 7*Shanty, The 7'6+H Inc. 6/, 1+7* (the M)".)"'+-)65 "Corporation" ) -Iis a /)".)"'+-)6 'corporation )"?'6->*A organized '6A and existing B6A*" *F-I+-6? under %&' (! ! 20 +7* *6*"' the General )".)"'+-)6Law Corporation '%)G of ' -G)"6-', California. 7* The )".)"'+-)6 Corporation ).*"'+*I operates ' a +'L*"6 tavern )/'+*A located at 4 '+375 'I+ East 2] 7'%Avenue, Shaw L*6B* Fresno, ;"*I6) California,%7-/7 ' -G)"6-' which ).*"'+*I operates 'I as M7* "The 7'6+H, Shanty." 7* The )".)"'+-)6 Corporation 6BJ$*" number is -I 22 928, 3799408. 23 , 2. 7* The ."-6/-.' *F*/B+-L* principal executive )G=/* office )G of +7* the )".)"'+-)6 Corporation is )/'+*A -Ilocated in ;"*I6) -6Fresno )B6+H, County. 24 , 3. *+-+-)6*" Petitioner ()66 JoAnn L*I Ives 1M()665-I ("JoAnn") is 'director )G a A-"*/+)" of +7* the )".)"'+-)6 Corporation '6A and )%6I owns =G+H fifty 25 .*"/*6+ percent )G of +7* the I7'"*I)G shares of +7* the )".)"'+-)6, Corporation. ()66-I JoAnn is -/* Vice "*I-A*6+<*/"*+'H#"*'IB"*" President/Secretary-Treasurer )G of +7* the 26 )".)"'+-)6, Corporation. 27 28 ; PETITION FOR APPOINTMENT ; PROVISIONAL OF DIRECTOR 9, 4. 7*)".)"'+-)6 The Corporation 'B+7)"->*Aby -Iauthorized is $Hits articles -+I'"+-/ *I 7'L* +)have, to '6AA)*I and does 7'L* have, '$)'"Aof a board +%) )Gtwo A-"*/+)"I, 7* directors. The )+7*" other ."*I*6+A-"*/+)" present director is '"*6/* -IClarence )%* 1M '"*6/*5 Newell %7)owns ("Clarence" ) who )%6I=G+H .*"/*6+of fiftypercent )G +7* the I7'"*I shares )G of +7* the )".)"'+-)6, Corporation. '"*6/* Clarence -I"*I-A*6+ is President )G of the )".)"'+-)6, +7*Corporation. 4, 5. 7*7-I+)"H The )G+7* history of the )".)"'+-)6 Corporation "* *L'6++) relevant this .*+-+-)6 to +7-Ipetition is 'Ifollows: -Ias G) )%IC a. ', 7*6the When )".)"'+-)6was +7*Corporation %'I*I+'$ -I7*A established in (B6*2015, -6June 2 4 )66contributed ( JoAnn /)6+"-$B+*A ! N4 222-6 $ 35,000 in /'.-+' , capital. $, b. ()66 JoAnn *6+ '"*6/*$N4 lent Clarence 222I) 35,000 so 7* he /)B Apurchase could .B"/7'I*7-I his I+)/0in stock -6+7* the )".)"'+-)6, Corporation. '"*6/*agreed Clarence '?"**Ato +)"*.'H repay ()66the JoAnn +7*'J)B6+ amount )G$N92 of 430 .*"J)6+7 per month '6A and a'lump IBJ BJ.sum .'HJ*6+of payment )G$N4 222in 25,000 B?BI+2015. -6August 2 7"**monthly 4, Three J)6+7 H.'HJ*6+I payments in July,B?BI+ -6(B H August '6ASeptember, and *.+*J$*" 2 20154'6A and )6* one lump IBJ.'HJ*6+ BJ.sum payment 44%*"* )G$N 13,559 of were J'A*, !)%*L*" made. However, Clarence J'A*the '"*6/*made +7*.'HJ*6+ payment )G of $N 13,559 44-6+) into +7*/)".)"'+* the corporate $'60account. bank ()66withdrew '//)B6+, JoAnn %-+7A"*%)6 H only $N36,000 222)G of that 'J)B6+and +7'+amount '6Aleft *G+ 12 +7*$' '6/* the balance -6+7* in the )".)"'+-)6 Corporation $'60account. bank '//)B6+,That $*/'J*' 7'+became )'6to a loan +7*)".)"'+-)6 +)the Corporation -6 in the 'J)B6+ +7*amount "Ig 13 )G of $N7,559. 44, * rein +7'+"*+B"6 utilize that in ."*.'"'+-)6 -6preparation )G 7*".*"I)6' of her personal -6/)J* income +'Freturn. tax "*+B"6, 11 +%'I Itwas "*/*-L*Aby 6)+received not $Hher 7*"until -JJ*A-'+* Hbefore B6+- immediately $*G)"*the = -6?A*'A -6* +7*filing deadline %-+7 with an'6*F+*6I-)6 extension )G of 12 /+)$*"16, October 3 2 2017, forcing 7*"+) G)"/-6?her to file 7*"personal = *her .*"I)6' tax +'Freturn -+7)B+that "*+B"6without A)/BJ*6+'+-)6, She +7'+documentation. 7*is -I 13 G)"/*A +)'J*6A 7*"personal .*"I)6' tax +'F"*+B"6 'I' 7*"B66*/*II'"H /'BI-6?her '6Awork. *F.*6I*and %)"0, forced to amend her return as "*IB + a result,causing unnecessary expense 14 A, d. ()66'I0*A JoAnn asked G)"'6 for an '//)B6+-6?)G accounting of the =6'6/-' '/+-L-+-*I +7*financial activities )G+7* of the )".)"'+-)6 Corporation : 15 $B+A-A6)+ but did not "*/*-L* receive IB/7 such '6'//)B6+-6?, an accounting. 16 8, 8. ()66gave JoAnn ?'L*6)+-/* notice +) '"*6/*by to Clarence $Hemail )6August *J'- on B?BI+21, 2 2017that +7'+I7* she %'I was /' -6? a' calling 17 $)'"A)G board A-"*/+)"IJ**+-6? of directors !!!!#!!!!! meeting +)$* to be 7* A held )6*.+*J$*" on September 2 , +7)B?7 1, 2017. Although '"*6/* Clarence "*/*-L*Anotice received 6)+-/*in -6 18 '+-J* HJ'66*" a timely manner, '"*6/* Clarence "*GBI*A+) refused to attend $)'"AJ**+-6? +7*board '++*6Athe meeting ' +7)B?7he although '/06)% *A?*A7* 7*acknowledged he %'I was 19 '%'"*of aware )Gthat +7'+meeting '6Athat J**+-6?and +7'+7* he %'I was -6L-+*A+) invited '++*6A$H to attend by +* *.7)6* telephone ' )%*Aby 'Iallowed as $Hthe +7*corporate /)".)"'+* 20 $H '%I'6A bylaws and ' -G)"6-' '%, ()66 California law. JoAnn called +7*J**+-6? /' *Athe meeting +)order, to )"A*" '++*J.+*Ato attempted +)/)6+'/+ contact '"*6/* Clarence $H by 21 .7)6* phone $B+%'IB6'$ * but was unable +) to )$+'-6his obtain 7-I.'"+-/-.'+-)6, participation. '"*6/*sent Clarence %)"Aafter I*6+word 'G+*"she '++*J.+*Ato I7*attempted +) 22 contact 7-J+) /)6+'/+him ()66+7'+ to JoAnn that he %'I)$+'-6-6? 7*was obtaining /)B6I* $B+ *?' counsel legal %)B A6)+ but would .'"+-/-.'+*in not participate -6that $)'"A +7'+board 23 meeting. 7*)".)"'+-)6 J**+-6?,The Corporation 7'I6)+ has 7* A' not held $)'"A)G a board of A-"*/+)"I directors J**+-6?G)" meeting J'6Hmonths for many J)6+7Iand '6Ais -I 24 /B""*6+ H currently A*'A )/0*A,.)6 deadlocked. Upon -6G)"J'+-)6 information and'6A$* -*G if )66were belief,-G( JoAnn %*"*to+)call '6)+7*"$)'"A /' another board J**+-6? meeting, 25 '"*6/* Clarence %)B A/)6+-6B* would continue in 7-Irefusal -6his "*GBI' +) to participate. ()66EIcounsel .'"+-/-.'+*,JoAnn's /)B6I* '6A and '"*6/*EI Clarence's counsel 7'A /)B6I* had 26 I*L*"' several /)6+'/+I contacts but %*"*unable $B+were B6'$ *to+)"*'/7 reach '6H any '?"**J*6+I/)6/*"6-6? agreements concerning +7*A-I.B+*I the disputes 'I+) as ?)L*"6'6/* to governance 27 )G )".)"'+-)6, +7*Corporation. of the 28 ,9 FOR PETITION ;APPOINTMENT OF ; PROVISIONALDIRECTOR , 9. 6October On /+)$*"30, 2 2 2017, ()66 JoAnn proposed +7")B?7her .").)I*Athrough /)B6I* to 7*"counsel '"*6/*EIcounsel +)Clarence's /)B6I* '..)-6+J*6+of +7*appointment the )G' director %7- * 6*B+"' A-"*/+)" a neutral +7*current while the A*'A )/0continues. /B""*6+deadlock '"*6/*EI/)B6I* /)6+-6B*I, Clarence's counsel "*I.)6A*A responded +7'++7* that the J'++*" matter /)B Anot could 6)+/)6I-A*"*A considered until B6+- counsel %)B Ameet /)B6I* would J**+with %-+7 '"*6/* Clarence '++7* at the 4 earliest *'" -*I+)6)L*J$*" on November 2 2017 9, but $B++7*"* there has $**66) 7'Ibeen no /)JJ-+J*6+ commitment to a'date 'I+) as %7*6Clarence A'+*when '"*6/*%- will "*I.)6A, respond. I As )G of the = -6?)G +7*filing of this petition, it +7-I.*+-+-)6 if'6Awhether B6/*"+'-6-Gand is uncertain -+-I %7*+7*"Clarence '"*6/*will "*I.)6Ato %- respond +) ! .").)I' +) this proposal +7-I $"*'0the to break +7*A*'A )/0, deadlock. 2, 10. 7* The A-"*/+)"I directors '"* are *QB' HA-L-A*A equally '6A/'66)+ divided and cannot '?"**'I agree as +) to the J'6'?*J*6+of +7*management )Gthe +7* )".)"'+-)6EI'GG'-"I, Corporation's affairs. 7*/-"/BJI+'6/*I The circumstances creating +7*division /"*'+-6?the A-L-I-)6are '"*'I as G) )%IC follows: ', a. '"*6/* Clarence 7'Irefused has "*GBI*Ato -6a'recently-called .'"+-/-.'+*in +)participate $)'"Aof "*/*6+ H /' *Aboard )Gdirectors A-"*/+)"I J**+-6? meeting 6)+-/*Aby noticed ()66'I-/* "*I-A*6+<*/"*+'"H#"*'IB"*" $HJoAnn as Vice-President/Secretary-Treasurer, 7'I has not /' *A' 6)+called a board )G $)'"Aof A-"*/+)"IJ**+-6? directors meeting 'I as "*I-A*6+'6A President and -I. '/-6? isplacing the )".)"'+-)6into +7*Corporation )Gits -) '+-)6of -6+)violation $H '%I'6A -+Ibylaws and )".)"'+-)6Ilaw Corporations '%$H by the )G.'"+-/-.'+-)6 '/0of +7*lack participation -6$)'"A in board J**+-6?I, meetings. $, b. '"*6/* Clarence 7'I"*GBI*A has refused to 7)6)" +)honor 7-I'?"**J*6+ his agreement to ()66on "*+'-6JoAnn +)retain )6the $'60 +7*bank '//)B6+of account )G+7*)".)"'+-)6, the Corporation. 2, c. '"*6/* Clarence 7'I has "*GBI*A refused to %)"0 +) %-+7( work with )66-6 JoAnn 7*"role in her 'Ia'A-"*/+)" ") *as director '6A and officer )G )G=/*" !!!!!!!!!! of the +7*)".)"'+-)6, Corporation. 17 d. 1 , '"*6/* Clarence 7'I has "*GBI*A refused +)/)6+") his to control 7-Igirlfriend's ?-" G"-*6AEIuse )Gthe BI*of /)".)"'+*credit +7*corporate /"*A-+ 1S /'"A, card. 19 NNRN!'*JQ'J' !S 3, e. '"*6/* Clarence 7'I.'-A has +7)BI'6AIof paid thousands )Gdollars )Ghis A) '"Iof .*"I)6' bills 7-Ipersonal $- Iout )Gthe )B+of +7* )".)"'+-)6EI Corporation's $'60 bank '//)B6+ account or %-+7 )"with -+I /"*A-+/'"A, its credit card. 7* The exact 'J)B6+is *F'/+amount -Inot 06)%6, 6)+known. 21 f. G,