. In July 1999 the Company acquired The Jerger Company, Inc. for a total purchase price of $20.0 million in cash, 1,037,772 shares of the Company's common stock and a contingent additional cash amount of up to $5.0 million based upon future earnings of the acquired business.Of this purchase price, Mr. Thomas J. Jerger, a shareholder of The Jerger Company, Inc. and a former Director of the Company, [He was Vice-Director of Jerger and Sons in 1998; J. C. was added as Vice-Director in April of 1998, see here] was received $6.5 million in cash and 338,404 shares of common stock of the Company. Mr. Jerger may also receive up to a maximum of $1.6 million of the contingent additional cash amount.
Pursuant to the acquisition agreement, the Company entered into an employment agreement with Mr. Jerger for a period of five years and a base salary of $210,000 ("Base Salary") commencing July 16, 1999. Mr. Jerger subsequently resigned his position with the Company effective November 22, 1999 and the Company entered into a severance agreement with Mr. Jerger agreeing to pay Mr. Jerger the Base Salary through the original employment period of five years. The Company utilized investment advisory services from McHugh Associates Inc. of which a board member, Thomas J. McHugh serves as President.