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HomeMy WebLinkAbout03-2979Ronald M. Katzman, Esquire I.D. #07198 GOLDBERG, KATZMAN & SHIPMAN, P.C. 320 Market Street P. O. Box 1268 Harrisburg, PA 17108-1268 (717) 2344161; (717) 234-6808 (facsimile) Attorney for Plaintiffs MARIE K. MAGARO, administatrix c.t.a. of the Estate of David W. Magaro, deceased Plaintiff, LOWELL GATES and GATES, HALBRUNER & HATCH, P.C. Defendants. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS COURT DIVISION (NO. 21-95-844) CIVIL ACTION - EQUITY No. NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set. forth in the following pages, 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/Answer, New Matter and Counterclaim 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 LAWYER AT ONCE. IF YOU DO 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. CUMBERLAND COUNTY LAWYER REFERRAL SERVICE 2 Liberty Avenue Carlisle, Pa 17013 Telephone: (717) 249-3166 NOTICIA Le hah demandado a usted en la corte. Si usted quiere defenderse de estas demandas expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demanda y la notificacion. Usted debe presentar una apariencia escrita o en persona o pot abogado y archivar en la cort¢ en forma escrita sus defensas o sus objectiones a las demandas en contra de su persona. Sea adisado que si usted no se defiende, la sin previo aviso o notificacion y pot cualquier quja o puede perder dinero o sus propiedades o otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABOGADO LMMEDIATAMENTE. SI NO TIENE ABOGADO O SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA O LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. CUMBERLAND COUNTY LAWYER REFERRAL SERVICE 2 Liberty Avenue Carlisle, Pa 17013 Telephone: (717) 249-316 Ronald M. Katzman, Esquire I.D. #07198 GOLDBERG, KATZMAN & SHIPMAN, P.C. 320 Market Street P. O. Box 1268 Harrisburg, PA 17108-1268 (717) 234-4161; (717) 234-6808 (facsimil.e) Attorney for Plaintiffs MARIE K. MAGARO, administatrix c.t.a. of the Estate of David W. Magaro, deceased Plaintiff, LOWELL GATES and GATES, HALBRUNER & HATCH, P.C. Defendants. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS COURT DIVISION (NO. 21-95-844) CIVIL ACTION - EQUITY NO. COMPLAINT AND NOW, comes Plaintiff, Marie Magaro, administratrix c.tia, of the Estate of David W. Magaro, deceased, by and through her attorneys, Goldberg, Katzman & Shipman, P.C., who alleges the following in support of this Complaint: 1. Plaintiff, Marie Magaro (Magaro), is an adult individual residing at 712 Hamilton Avenue, Mechanicsburg, Cumberland County, Pennsylvania. 2. David W. Magaro (Decedent) died on October 10, 1995. 3. Magaro, the widow of Decedent, was appointed administratrix c.t.a, of the Estate of David W. Magaro (the Estate) on November 9, 1995, by the Register of Wills of Cumberland County. See File No. 21-1995-0844, Orphans Court of Cumberland County. 4. Defendant, Lowell Gates (Gates), is an attorney licensed to practice law in Pennsylvania and Massachusetts, with a business address at 1013 Mumma Road, Suite 100, Lemoyne, Cumberland County, Pennsylvania. 5. Defendant, Gates, Halbmner & Hatch, P.C., is a professional corporation of licensed attorneys, with a business address at 1013 Mumma Road, Suite 100, Lemoyne, Cumberland County, Pennsylvania. 6. On or about December 1, 1995, Magaro retained the legal services of Defendant Gates, who subsequently continued the practice of law as a shareholder of Gates, Halbruner & Hatch, P.C., to assist in the administration of the estate. 7. Magaro, through Gates, filed a First and Partial Account and Proposed Distribution with the Register of Wills on September 12, 1997. 8. As of the present time, more than seven and one-half (7 ½) years after Magaro's appointment as administratrix c.t.a., the administration of the Estate is still incomplete. 9. Magaro is a layperson with regard to legal, estate, and tax matters and relied heavily on Gates and his fellow shareholders and associates to prepare and file all appropriate financial reports and tax returns, and also to advise on all administrative questions and problems incident to her administration. 10. The relationship between Magaro and Defendants has become increasingly strained during the past few years. 11. In January, 2003, Magaro personally initiated legal action against Defendants for professional malpractice, breach of contract, and other related claims involving matters unrelated to the Estate. Said action is docketed at No. 03-408 Civil Term, Court of Common Pleas of Cumberland County. 12. Magaro has had little communication with Defendants concerning the Estate for more than six (6) months. 13. In a letter to Gates dated March 10, 2003, Magaro, by and through her current attorneys, Goldberg, Katzman & Shipman, P.C., requested that defendant "forward to [Goldberg, Katzman & Shipman, P.C.] a copy of the federal estate tax return, and a copy of the Pennsylvania inheritance tax return, as filed." Subsequent letters were sent to Gates on April 2, 2003, May 7, 2003, and June 3, 2003, reminding Defendants that Magaro and her attorneys were still awaiting information regarding the tax returns as referenced in the March 10, 2003 letter. Copies of said letters are attached hereto as Exhibits A-l, A-2, A-3, A-4. To date, neither Magaro nor her current attorneys have received the requested 14. inform~ion. 15. Magaro is concerned that she cannot fulfill her obligations as administratrix c.t.a. because of the strained relationship existing between her and Defendants. 16. Magaro's concern was heightened by the fact that Defendants did not file a timely Status Report with the Resister of Wills in 2001 and failed to file any Status Report, as is required annually, in 2002. 3 ! 7. In a letter to Gates dated May 28, 2003, Magaro personally terminated the services of Defendants and requested any and all documents relating to the Estate be delivered to her current attorneys so that administration could finally be completed. A copy of said letter is attached hereto and marked Exhibit B. ! 8. In the letter to Defendants dated June 3, 2003 (Exhibit A-4), Magaro's current attorneys reiterated the request that all documents be transferred to them. 19. In a letter from Gates dated June 10, 2003, Defendants asserted that they would only turn over all requested documents "upon receiving payment in full of [their] legal fees for the estate administration and the transfer costs." A copy o£said letter is attached hereto and marked Exhibit C. 20. To date, Defendants have not provided Magaro or her attorneys with a comprehensive detailed list of services and legal fees, or an amount of fees already received, or a written agreement setting forth fee arrangements for the representation. Gates' letter of June 10, 2003 (Exhibit C) gave only vague descriptions of project names and accounts due. 21. A letter to Defendants dated June 12, 2003 from the current attorneys for Magaro, requesting detailed information for the claimed legal fees, and information with regard to scope of representation, has gone unanswered. A copy of said letter is attached hereto and marked Exhibit D. 22. Defendants are attempting to coerce Magaro to pay unsubstantiated bills now, rather than awaiting the filing ora final account where their claim can be reviewed and, to the extent proper, paid. 4 23. Without the estate documents, Magaro cannot fulfill her obligations as administratrix c.t.a. She is unable to file the proper accounting documents with the court, distribute the undistributed assets as required, or wind up the estate administration so that all taxes are paid, and creditors and beneficiaries receive their proper share. 24. Accordingly, Magaro, as well as all of decedent's creditors and beneficiaries affected bythe administration of the estate, will suffer immediate and irreparable harm as the Estate cannot be appropriately administered and concluded without the information and documentation that is being withheld by Defendants. WHEREFORE, Marie Magaro, administratrix c.t.a., prays that the Court grant the following relief: a. Order the Defendants to produce and turn over any and all documents relating to the Estate of David W. Magaro; and b. Issue a preliminary and final injunction restraining Defendants from exerting a retaining lien on all documents and data relating to the Estate of David W. Magaro until Defendants produce a detailed list of services and fees and until a final account is filed and approved; and c. Order the Defendants to prepare a Second and Partial Account and Proposed Distribution of the Estate of David W. Magaro within thirty (30) days for Magaro to review and file with the Court; and 5 d. Order Defendants to reimburse to Magaro all cost and fees, including reasonable attorneys' fees, associated with enfoming her rights as administratrix c.t.a.; and e. Order such other relief as this Court deems just and proper under the circumstances. Dated: June 24, 2003 By: Respectfully submitted: GOLDBERG, KATZMAN & SHIPMAN, P.C. Rona M. Katzm~",~uire Attorney I.D. # 07198 320 Market Street, Strawberry Square P.O. Box 1268 Harrisburg, PA 17108-1268 (717) 234-4161 Attorneys for Plaintiff 6 Exhibit A 320 MARKET STREET · STRAWBERRY SQUARE P.O. BOX 1268 · HARRISBURG, PENNSYLVANIA 17108-1268 717.234.4161 * 717,234.6808 (FAX) GOLDBERG, KATZMAN ATTORNEYS AT LAW SHIPMAN, P.C. March 10, 2003 COUNSEL JOSHUA D. LOCK ARNOLD B. KOGAN ARTHUR L. GOLDBERG (1951-2000) HARRY B. GOLDBERG (1961-1998) RONALD M. KATZMAN PAUL J. ESPOS[TO NElL HENDERSHOT J. JAY COOPER THOMAS E. BRENNER JOHN A, STATLER APRIL L. STRANG-KUTAY GUY H. BROOKS JEFFERSON J. SHIPMAN JERRY J. RUSSO MICHAEL J. CROGENZI THOMAS J, WEBER STEVEN E. ORUBB JOHN DELORENZO JOHN R. NINOSKY ROYCE L, MORRIS DAVID M, STECKEL HEATHER L. PATERNO Lowell Gates, Esquire 1013 Mumma Road Suite 100 Lemoyne, PA 17043 Re: Estate of David Magaro Dear Mr. Gates: Ms. Magaro has asked us to look into matters concerning the Estate of her deceased husband, for which she has been serving as Executrix. She has requested that you forward to us a copy of the federal estate tax return, and of the Pennsylvania inheritance tax return, as filed. Please also furnish us information concerning said returns or their preparation, as well as the status of acceptance of said returns. Very truly yours, Ronald M. Katzman R_/Mm/sam cc: Marie Magaro 320 MARKET STREET · STRAWBERRY SQUARE P.O. Box 1268 · HARRISBURG, PENNSYLVANIA 17108-1268 717.234.4161 · 717.234.6808 (FAX) GOLDBERG, KATZMAN ATTORNEYS AT LAW SHIPMAN, P.C. April 2, 2003 OF COUNSEL F. LEE SHIPMAN COUNSEL JOSHUA D. LOCK ARNOLD B. KOGAN ARTHUR L. GOLDBERG (1951-2000) HARRY B. GOLDBERG (1961-1998) RONALD M. KATZMAN PAUL J. ESPOSITO NElL HENDERSHOT J. JAY COOPER THOMAS E. BRENNER JOHN A. STATLER APRIL L. STRANG-KUTAY GUY H. BROOKS JEFFERSON J. SHIPMAN JERRY J. Russo MICHAEL J. CROCENZI THOMAS J. WEBER STEVEN E. GRUBB JOHN DELORENZO JOHN R. NINOSKY ROYCE [~. MOREIS DAVID M. STECKEL HEATHER g. PATERNO Cory J. Snook, Esquire 1013 Mumma Road Suite 100 Lemoyne, PA 17043 Re: Estate of David Magaro Dear Mr. Snook: i received your letter of March 28, 2003, with enclosures. I had written to Mr. Gates asking him for informatioB with respect to finalization of estate tax and inheritance tax matters for the Estate of David Magaro. Please supply rne with the information I requested at your earliest convenience. Very truly yours, Ronald M. Katzm~ P~vlmfsam cc: Marie Magaro 320 ~IARKET STREET * STRAWBERRY SQUARE P.O. Box 1268 * HARRiSSURO, PENNSYLVANIA 17108-1268 717.234.4161 · 717.234.6808 (FAX) GOLDBERG, KATZMAN SHIPMAN, P.C. May 7, 2003 OF COUNSEL F, LEE SHIPMAN COUNSEL JOSUUA D. LOCR ARNOLD B. KOGAN ARTHUR L. GOLDBERG (1951-2000) HARRY B, GOLDBERG (1961-1098) RONALD M, KATZMAN PAUL J. ESPOSITO NEIL HENOERS.O'r J. JAY COOPER THOMAS E. BRENNER JOHN A. STATLER APRIL L. STRANG-KUTAY GuY H. BROOKS JEFFERSON J. SHIPMAN JERRY J. Russo MICHAEL J. CROCENZI THOMAS J. WEBER STEVEN E. GEUBB JOHN DELORENZO JOI~N R. NINOSKY ROYCE L. MORRIS DAVID M. STECKEL HEATHER L. PATEENO Lowell Gates, Esquire 1013 Mumma Road Suite 100 Lemoyne, PA 17043 Re: Estate of David Ma~aro Dear Mr. Gates: We note that you have not responded to our letter of March 10, 2003. We expect that you would respond immediately, and look fbrward to hearing from you. Very truly yours, Ronald M. Katzman RMIOsam cc: Marie Magaro 320 MARKET STREET · STRAWBERRY SQUARE P.O. BOX 1268 * HARRISBURG, PENNSYLVANIA 17108-1268 717.234.4161 * 717.234.6808 (FAX) OF COUNSEL F. L~EE SHIPMAN COUNSEL JOSHUA D. LOCE ARNOLD B. KOGAN ARTHUR L. GOLDBERG (1951-2000) HARRY B~ GOLDBERG (1961-1998) RONALD M. KATZMAN PAUL J. EsPosrro NEIL HENDERSHOT J. JAy COOPER THOMAS E. BRENNER JOHN A. ST~rLER APRIL L. BTRANG-KUTAY GUY H. BROOKS JEFFERSGN J, SHIPMAN JERRY J. Russo MICHAEL J, CROCENZI THOMAS J. WEBER JOHN DELORENZO JOHN R, NINOSKY GOLDBERG, KATZMAN ~ SHIPMAN, P.C. ATTORNEYS AT LAW June 3, 2003 Lowell Gates, Esquire 1013 Mumma Road Suite 100 Lemoyne, PA 17043 Re: Estate of David Magaro Dear Mr. Gates: At the request of Marie Magaro, we wrote to you in March requesting certain information concerning the above Estate. This was answered by letter of March 28, 2003, written by Mr. Snook providing information concerning Applications for Appointment of Custodians filed by PNC Bank. The information requested in my letter was, however, ignored. On April 2, 2003, I wrote to Mr. Snook, acknowledging receipt of his letter, and requesting again the information that had previously been requested. No answer was received to that letter, and another letter was sent on May 7, 2003, to which we have received no reply. All of these requests were made pursuant to instructions from Marie Magaro, personal representative of the Estate. We understand that now Ms. Magaro has sent a letter to you requesting that you mm over all records with respect to the Estate to us. We expect that you will do this as quickly as possible, and in any event, if it cannot be done within the next ten (10) days, that you will contact me to explain why, and also give a date when you expect it to be accomplished. If you fail to respond appropriately, we shall file an action with the court on behalf of Ms. Magaro compelling you to turn over all files and information regarding the above Estate. We will, of course, request costs and expenses that otherwise would not have to have been incurred. Rm~sanl cc: Marie Magaro Very_truly yours, Ronald M. Katzman, ...'ODMAIPCDOCS1DOCSI8983014 Exhibit C D-Z00] 11:28 GATES,H~LBRNR,HATCH ?~? 73I 96~? P,OJ Ronald M. K~l:rman, Esq. June I0, 2003 Page However, we will release and transfer the file only upon receiving payment in full of our legal fees for the estate administration and the mmsfer costs, To date, the following legal fees remain outstanding and unpaid by the Estate of David W. Magaro. These legal fees are categorized by biHhag matter, and are listed as follows: 2. 3. 4. 5. 6. 7. Estate Administration $ 7,374.60 David W, Magaro, Jr. $ 517.50 Loan to Variety Investments $ 216.00 Greenray Industries, Inc. $ 3,124.63 Refinance of Allen Street $ 414.61 VarietyMadfines, Inc. $ 1,177.32 Variety Investments Dissolution $ 5,837.11 Tina Mestlln Lit/~atlon $10,034~49 Total Unpaid Legal Fees $28,6~96_.26 In addition, the Magaro file is voluminous and will require numerous hours to prepare it for transfer. It would also be prudent for us to be available for questions given the outstanding issues. As a result, there will be a $2,$00.00 fee to cover attorney and parategal time to process the file transfer. Finally, our law fn'm has been holding an escrow balance of $16,898.95 on behalf of the David W. Magaro Estate. This escrow balance could be applied against the outstanding legal fees, along with payment of the remaining balance, or the escrow balance could be released to your custody after payment in full of the legal fees and transfer costs. Please let me know how you wish to pT~in this matter. ~"' Lowell ]~: O~~~~-~ LRG:vrm- enclosures [ Exhibit 717.234.4161 ~' 717.234.6808 (FAx) GOLDBERG, KATZMAN SHIPMAN, P.C. June 12, 2003 OF COUNSEL F. LEE SHIPMAN Jos}4u.~ D. Locx ARNOLD ~3. ~(OGAIW ~RTItUR L. ~OLDBERG (t951-2000) HARRY B, ~OLDBERG (1961-1998) RONALD M. KATZMAN PAUL j. ESPOSITO NEIL HENDERSHOT j. JAY COOPER j~;~a¥ J. Russo Lowell R. Gates, Esquire 1013 Mumma Road Suite I00 Lemoyne, PA 17043 Re: Estate of'David Maaaro Dear Mr. Gates: Thank you for your letter of June 10, 2003. With respect to the hearing for July 24, please understand that the intent of Ms. Magaro was to ternqinate your status as attorneys "of record" on this Estate. Therefore, you should Hot prepare for or attend the hearing. See, Rule of Professional Conduct 1.16(a)(3). As a matter of fact, in reviewing the situation witb respect to that issue, I do not perceive that the hearing directly involves the Estate, and that there is sufficient reason to expend funds for that purpose. You refer to my previous requests regarding information about the David W. Magaro Estate. I would appreciate your supplying the information which I requested HOW that you are no longer "unclear" as to my authority for making tile request. With respect to your statement that you will not release the files until payment of certain enumerated legal fees are received, I would appreciate your sending bills with respect to each of those. Please also send me a copy of any engagement letter or other itflbrmation that would indicate the basis of your representation of the David Magaro Estate. and any case law that would supp0n your demand fbr payment. Consider Rude I 10(d) of the Rules of Professional Conduct. We will evaluate tile situation as to whether or 1]ut fou are entitled to coerce Ms. Magaro into paying these bills at this time in order to obtain the files necessary to proceed with finalization of the Estate Administration. Additional/y, because of the many years that have passed, and because of Ms. Magaro's total Lowell R. Gates, Esquire Page 2 June ']_, 2003 dependence on your advice for Administration of the :Estate, we would expect you to file a First and Partial Account as cfa currer~t date. Finally, I would appreciate your advising as to the nature and origin of the escrow balance that you are referring to, Once I receive this additional information as requested, I can be more precise in advising you how we plan to proceed in this matter. cc: Marie Magaro ::O DMA\PCDOCS\ DO CS\89830~5 VERIFICATION I, MARIE K. MAGARO, hereby acknowledge that ! am a Plaintiffin this action; that I have read the foregoing Complaint and that the facts stated therein are true and correct to the best of my knowledge, information and belief. I understand that any false statements herein are made subject to penalties of 18 Pa. C. S. Section 4904, relating to unswom falsification to authorities. Date: June 24, 2003 Ronald M. Katzman, Esquire I.D. #07198 GOLDBERG, KATZMAN & SHIPMAN, 320 Market Street P. O. Box 1268 Harrisburg, PA 17108-1268 (717) 234-4161; (717) 234-4161 (facsimile) Attorney for Plaintiffs MARIE K. MAGARO, administatrix c.t.a. of the Estate of David W. Magaro, deceased Plaintiff, LOWELL GATES and GATES, HALBRUNER & HATCH, P.C. Defendants. : 1N THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : ORPHANS COURT DiVISION : (NO. 21-95-844) CiVIL ACTION - EQUITY MOTION FOR PRELIMINARY INJUNCTION Plaintiff, by its undersigned counsel, hereby moves the Court, pursuant to Pa. R.C.P. 1531, for a preliminary injunction, as set forth in the attached proposed order. In support of its motion, Plaintiffincorporates herein by reference its Verified Complaint in Equity as the factual basis for its requested injunction, as well as a statement of the relief requested. Plaintiffwill suffer immediate, substantial and irreparable harm for the wrongful conduct of the Defendants. Greater harm will be caused by the denial of relief requested by Plaintiffthen the granting thereof· Further, the Plaintiff has no adequate remedy of law. Date: ,..~t. By: Respectfully submitted, GOLDBERG, KATZMAN & SHIPMAN, P.C. Ronald M. Katzman, Esquire I.D. #07198 GOLDBERG, KATZMAN & SHIPMAN, P.C. 320 Market Street P. O. Box 1268 Harrisburg, PA 17108-1268 (717) 234-4161; (717) 234-4161 (facsimile) Attorney for Plaintiffs CERTIFICATE OF SERVICE I HEREBY CERTIFY that I served a tree and correct copy of the foregoing document upon all parties or counsel of record by depositing a copy of same in the United States Mail at Harrisburg, Pennsylvania, with first-class postage prepaid, addressed to the following: Lowell Gates, Esquire Gates, Halbmner & Hatch, P.C. 1013 Mumma Road Lemoyne, PA 17043 By: Ronald M. Katz~e I.D. #07198 GOLDBERG, KATZMAN & SHIPMAN, P.C. 320 Market Street P. O. Box 1268 Harrisburg, PA 17108-1268 (717) 234-4161; (717) 234-4161 (facsimile) Attorney for Plaintiffs Date: 3 JUN 2/, 2Q03 MARIE K. MAGARO, administatrix c.t.a. of the Estate of David W. Magaro, deceased Plaintiff, LOWELL GATES and GATES, HALBRUNER & HATCH, P.C. Defendants. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : ORPHANS COURT D1VISION : (NO. 21-95-844) : CiVIL ACTION - EQUITY :NO. 43',0 7q ORDER Upon consideration of Plaintiff's Motion for Preliminary Injunction, it is HEREBY ORDERED this~[Ak day c~_~,_, 2003 that: 1. A role is issued upon Defendants to show cause why Plaintiff is not entitled to the reliefrequested~..~k,O~,~~e~~k~O~?J~-~ ~C]Ak"~.?'I~'"IOI~ ~f~"~? · ' Defendmats sh?p appear at ~t hoaring on the day of ___, ~,aa'~ a~/p ~ C,,,~, ~ .... in C~licle, l%_Asg~l. ~2a at w~';~'- ti,~e D-~fond,m/~ a,,~ ~, .~t ~ _ t~,,and ~ s~6w eaase<:-.-h).z ~: o~: :"?~ injunction or.der ~,,,1~t nat ho i~e, lOlt; 3. Notice of the entry of this Order shall be provided to all parties by Plaintiff. BY TH~ CO~ MARIE K. MAGARO, administatrix c.t.a. of the Estate of David W. Magaro, deceased Plaintiff, LOWELL GATES and GATES, HALBRUNER & HATCH, P.C. Defendants. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS COURT DIVISION (NO. 21-95-844) CIVIL ACTION - EQUITY ORDER Having considered Plaintiff s Motion for Preliminary Injunction, and Reply thereto, and having heard a hearing pertaining to the issue, it is HEREBY ORDERED this day of ,2003 that the Preliminary Injunction is GRANTED and Defendants are HEREBY ORDERED: 1. To turn over the complete file regarding the Estate of David W. Magaro to the law firm of Goldberg, Katzman & Shipman, P.C. within five (5) days of the court's Order; 2. Defendants are hereby enjoined from asserting any sort of retaining lien over the file, without prejudice to Defendants' right to make a claim for legal fees at the appropriate time; 3. To prepare a second partial account and proposed distribution of the Estate of David W. Magaro within thirty (30) days of the Court's Order for Plaintiffto review and, if appropriate, file with the Court; 4. Reimburse Plaintiff all costs and fees, including reasonable attorneys fees, associated with enforcing Plaintiff's rights to obtain the David W. Magaro Estate file. BY THE COURT: [, VERIFICATION I, MARIE K. MAGARO, hereby acknowledge that I am a Plaintiff in this action; that I have read the foregoing Complaint and that the facts stated therein are true and correct to the best of my knowledge, information and belief. I understand that any false statements herein are made subject to penalties of 18 Pa. C. S. Section 4904, relating to unsworn falsification to authorities. MARIE K. Date: June 24, 2003 SHERIFF' S RETURN - REGULAR CASE NO: 2003-02979 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND MAGARO MARIE K ADMIN ESTATE OF VS GATES LOWELL AND GATES HALBRUN RONALD HOOVER , Cumberland County, Pennsylvania, says, the within COMPLAINT LOWELL GATES DEFENDAiqT , at 1420:00 at 1013 MUMMA ROAD LEMOYNE, PA 17043 MARK HALBRUNER, CO-WORKER Sheriff or Deputy Sheriff of who being duly sworn according to - EQUITY was served upon HOURS, on the 26th day of June SUITE 100 by handing to ADULT IN CHARGE a true and attested copy of COMPLAINT - EQUITY the , 2003 together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 10.35 Affidavit .00 Surcharge 10.00 .00 38.35 Sworn and Subscribed to before me this ~~L~ day of  ,.A~ ~&%/% A.D. ~z4othonotary ~ / ' So Answers: R. Thomas Kline 06/30/2003 GOLDBERG KATZMAN SHIPMAN SHERIFF'S RETURN - CASE NO: 2003-02979 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND MAGARO MARIE K ADMIN ESTATE OF VS GATES LOWELL AND GATES HALBRUN REGULAR RONALD HOOVER , Cumberland County, Pennsylvania, says, the within COMPLAINT - EQUITY GATES HALBRUNER & HATCH PC DEFENDANT , at 1420:00 HOURS, on the at 1013 MUMMA ROAD SUITE LEMOYNE, PA 17043 MARK HALBRUNER, ATTORiqEY FOR BUSINESS, a true and attested copy of COMPLAINT Sheriff or Deputy Sheriff of who being duly sworn according to law, was served upon the 26th day of June , 2003 100 by handing to ADULT IN CHARGE - EQUITY together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 16.00 Sworn and Subscribed to before me this g~ day of  ~2 &733 A.D. ' P~othonotary / So Answers: R. Thomas Kline 06/30/2003 GOLDBERG KATZMAN SHIPMAN By: ~ Deputy~iff MARIE K. MAGARO, Administratrix, c.t.a, of the Estate of David W. Magaro, Deceased, Plaintiff VS. LOWELL GATES and GATES, HALBRUNER & HATCH, P.C., Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS COURT DIVISION (No. 21-95-844) CIVIL ACTION - EQUITY NO. 03-2979 EQUITY RESPONSE TO MOTION FOR PRELIMINARY INJUNCTION AND NOW, come Defendants, Lowell R. Gates, Esq. and Gates, Halbruner & Hatch, P.C., by and through their undersigned counsel, and respectfully set forth this response to Plaintiff's Motion for Preliminary Injunction, as directed by a rule to show canse issued by the Court on June 24, 2003. In lieu of reciting supporting facts, the Motion for Preliminary injunction incorporates by reference the Complaint in Equity filed by Plaintiffunder the above caption. Therefore, Defendants' response addresses the averments set forth in the Complaint in Equity. However, Defendants reserve the fight to file a separate response, including Prelimin~ Objections, New Matter and Counterclaims, to the Complaint in Equity as permitted generally by the Pennsylvania Rules of Civil Procedure. 1. After reasonable investigation, Defendants are without knowledge or information sufficient to form abeliefas to the troth of the matter averred, and strict proof thereof is demanded. Admitted. Admitted. Admitted. 11. 12. Admitted. Denied as stated. Plaintiffretained the legal services of Lowell R. Gates, P.C. on or about December 1, 1995. Lowell R. Gates, P.C. was subsequently renamed Gates & Associates, P.C. Gates, Halbmner & Hatch, P.C. was formed as a new professional corporation on December 21, 2001. Admitted. Admitted in part, and denied in part. It is admitted that the estate administration is not yet completed. Defendants deny the implicaSon that the status of the estate is their fault. This estate is inextricably intertwined with the estate of David W. Magaro's father, William G. Magaro, which was opened in 1990, and which remains the subject of litigation and is still incomplete after thirteen (13) years. By way of further answer, the Estate of David W. Magaro ihas been the subject of numerous litigation matters which have been resolved by Defendants in favor of Plaintiff. Admitted. Denied. From Defendants' perspective, the relationship between Magaro and Defendants was not strained until Magaro initiated his lawsuit against Defendants in January 2003. Admitted. Admitted in part, and denied in part. It is admitted that Plaintiffand Defendants have had little communication for the time period stated. Defendants deny the implication that the absence of communication is their fault. The absence of communication is due to the litigation referenced by Plaintiff in Paragraph 11. 13. Denied as stated. The letters referenced by Plaintiff are documents which speak for themselves. 14. Denied as stated. Plaintiff was previously provided with copies of the requested documents and information when they were filed.. 15. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the maeler averred, and strict proof thereof is demanded. 16. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the troth of the matter averred, and strict proof thereof is demanded. To the extent that any Status Report was not timely filed, the rights of Plaintiff and other parties interested in the estate were not prejudiced. 17. Denied as stated. The letter referenced by Plaintiff is a document which speaks for itself. 18. Denied as stated. The letter referenced by Plaintiff is a document which speaks for itself. 19. Denied as stated. The letter referenced by Plaintiff is a document which speaks for itself. By way of further answer, Defendants hereby assert their right to an attorneys' retaining lien against the files currently in Defendants' possession. 20. Denied. Throughout the course of the attorney-client relationship between Plaintiff and Defendants, Plaintiff was provided with timely, itemized and periodic billing statements describing the services provided and expenses incurred. In addition, Plaintiffreceived a copy of the written fee agreement at the inception of the attorney- 21. 22. client relationship. However, a tree and correct copy of the fee letter and agreement between Plaintiff and Lowell R. Gates, P.C. is altached hereto and incorporated by reference as Exhibit A. In addition, a comp][ete and itemized list of services provided and the fees charged therefore, plus expenses incurred by Defendants, is attached hereto and incorporated by reference as Exhibit B. In addition to the outstanding legal fees and expenses related to the Estate of David W. Magaro, Plaintiff owes an outstanding total of $14,191.26, to date, for services rendered and expenses incurred by Defendants in Plaintiff's personal matters. Denied as stated. The letter referenced by PlaintJiffis a document which speaks for itself. Denied. The bills are not unsubstantiated because throughout the course of the attorney-client relationship between Plaintiff and ]Defendants, Plaintiff was provided with timely, itemized and periodic billing statements evidencing the services provided and expenses incurred by Defendants. Defendants are entitled to payment for legal services rendered, and Defendants are entitled to enforce a retaining lien against the estate file until their outstanding invoices have been paid. Defendants should not be compelled to wait for a final account since it will not be filed on this estate for quite some time due to pending litigation with the William Magaro estate and other third parties. Further, Defendants are unable to prepare a Second and Partial Account and Proposed Distribution of the estate due to the breakdown in communication between Plaintiff and Defendants and because Plaintiff has sole possession of the checking account, investment account and other information needed to prepare such an account. 23. Paragraph 23 is a conclusion of law to which no :response is required. To the extent a response is required, Plaintiffhas received from Defendants, throughout the course of the attorney-client relationship, copies of estate correspondence, tax returns and other documents, which should enable her to continue with the estate administration. 24. Paragraph 24 is a conclusion of law to which no response is required. To the extent a response is required, Plaintiff has received from Defendants, throughout the course of the attorney-client relationship, copies of estate correspondence, tax returns and other documents, which should enable her to continue with the estate administration. WHEREFORE, Defendants respectfully request that the Court deny Plaintiff's Motion for Preliminary Injunction. Respectfully submitted, Coryt~. Sn~k, Esqu' Supremel2ourt I.D. #85734 1013 Mumma Road, Suite 100 Lemoyne, PA 17043 (717) 731-9600 (Attorney fi>r Defendants) Date: Jul)' 7, 2003 EXHIBIT "A" LAW OFFICES OF L-ow . .t R -GATES, P.C. LOWELL R, GATES MARK E, HALBRUNER 6QO N. 12TH STREET, SUITE 2 LEMOYNE, PA 17043 (717) 731-~00 FAX (7~7) 731-9627 November 29, 1995 Marie K. Magaro 354 Stumpstown Road Mechanicsburg, PA 17055 RE: Estate of David W. Magaro Estate Administration Dear Marie: In accordance with our meeting on November 29, 1995, I am writing to confirm your agreement to r~tain the services of Lowell R. Gates, P.C. in order to administer the estate of David W. Magaro. The following is a general listing of the various tasks and responsibilities involved in the estate a~ninistration process: 1. As Administratrix, C.T.A. of the estate, it is your responsibility to gather the assets and pay all debts, liabilities, and taxes of the estate. Assets include those which the decedent owned individually or in joint names with another individual. Assets also include items such as life insurance, annuities, pension fund accounts and IRA's. Debts include mortgages, personal loans, credit cards, and utility bills. Pennsylvania inheritance and/or Federal estate taxes are due within nine (9) months of the date of death. We anticipate that this timetable will be met. 2. We will prepare the necessa~{ advertisement of your appointment as Administratrix, C.T.A. of the estate in accordance with the law in the Patriot News and the Cumberland Law Journal. 3. Within three (3) months after grant of letters, the personal representative or the estate's attorney must send a written notice to all beneficiaries and intestate heirs notifying them of the probate of the estate and giving a description of the beneficiary,s interest in the estate. Within ten (10) days after giving the notice, the personal representative or the estate's attorney must Marie Magaro Page 2 November 29, 1995 file with the Register of Wills Office a Certification verifying compliance with the notice requirements of Rule 5.6. 4. An Inventory of assets is required to be filed within nine (9) months of the date of death, or sooner if requested by an interested party of the estate. Also, a report of the status of the estate administration is required to be filed with the Register of Wills within nine (9) months of the date of death, and annually thereafter if the estate administration continues beyond nine (9) months and a final status report at the conclusion of the estate. 5. You should open an estate checking and/or savings account(s). This will enable the estate to keep track of income and expenses, and will simplify the process of preparing the tax returns and court accountings. As Administratrix, C.T.A., you are accountable for the assets, income and expenses of the estate. Separate estate checking and/or savings accounts will assist in yours and our record keeping. You will manage the estate accounts and will receive the statements of account. You should be the only person authorized to sign and issue checks. 6. We will apply for the Federal Identification Number required for the estate. Tax 7. You will receive the personal representative's commission to which you are entitled and which will be approximately five (5%) percent of the gross probate value of the estate, or a minimum flat fee to be determined, unless you decide in advance to waive the commission. 8. The Pennsylvania Department of Revenue allows a five (5%) percent discount toward the estate's Pennsylvania inheritance tax liability on any amount paid within three (3) months of death. We will decide closer to that time whether it is appropriate to take the discount. However, assuming funds are available, it is usually prudent to pre-pay the Pennsylvania inheritance tax and obtain the discount. Marie Magaro Page 3 November 29, 1995 9. As soon as the values for the estate assets and the amount of all deductions, expenses and claims against the estate are obtained (but no longer than nine (9) months), the Pennsylvania Inheritance Tax Return and the Federal Estate Tax Return can be prepared and filed with the Pennsylvania Department of Revenue and the Internal Revenue Service, respectively. Once the returns are filed, the review process by the Department and the IRS usually takes ninety (90) days. 10. In determining our fee, we consider a variety of factors. These include the difficulty of the administration, the amount of time involved, the character of services rendered, the value of decedent's real and personal property, and the responsibility incurred. The Pennsylvania Code of Professional Responsibility requires that we discuss our fees at the commencement of representation. All consultation is on a totally confidential basis. You wilL1 receive from our firm periodic statements, usually monthly, detailing services rendered since the last billing period, plus costs and fees which are advanced on your behalf, such as filing fees, extensive copying, long distance telephone calls, express mail fees, and FAX costs. Daily time records are prepared by each professional for each client. My current hourly rate is $125.00, Mark E. Halbruner's hourly rate is $100.00, and paralegal services are billed at $60.00 per hour. It is impossible to determine in advance the exact amount of time that we will incur on behalf of the estate. We will keep you informed of time we spend and will provide descriptions on our statements of activities undertaken. Hourly rates are usually reviewed annually on or about January 1st of each year. If a formal accounting of the estate is required or requested, necessarily ()ur fees would be subject to approval by the Orphans' Court. 11. We will keep you informed as to the status of the estate administration. We will also send you copies of important correspondence and other documents. We appreciate the opportunity to serve as the legal representative of the estate. I enjoyed talking with you on November 29th and look forward to working with you on the Marie Magaro Page 4 November 29, 1995 administration of your late husband's estate. If the fee arrangement and other duties ~nd responsibilities that we have outlined in this letter are acceptable to you, we would ask that you date and countersign the second enclosed copy of this letter and return it to us to evidence your ap.prova~,.,thereof. In the meantime, if there are any questions, ple~se/fe~el free to contact us. / / ~ Since~y: LRG: sln ' / Enclosure I hereby agree to the duties, responsibilities, representation set forth in the foreg0~ng letter. and , 1995 Marie Magaro, ' / Administratrix, C.T.A. EXHIBIT "B" GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 Estate Administration Statement Date November 2, 2000 Period Ending October 31, 2000 Statement No. 13243 PAYMENT DUE UPON RECEIPT OF STATEM~:NT. Ail overdue accounts will be assessed finance charges of i 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 05/16/00 SWP Telephone conference with Marie for closing. Telephone conference with Tony regarding EIN. Pr=paration of note and amortization schedules. Preparation of Praecipe to discontinue. Calculation of accurate interest payment schedule and worksheet. Telephone call to Mike Postupack - left message. 2.80 @ 135.00/hr 378.00 Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration 05/16/00 MEH Inter-office conference with SWP regarding settlement agreement and reimbursement for Inheritance Tax. Reviewed stock certificate. 05/17/00 SWP 05/17/00 SWP Inter-office conference with LRG and MEH regarding tax payments for Magaro closing. Preparation of stock certificates for execution. 05/17/00 MEH 05/17/00 LRG 05/18/00 MEH Inter-office conference with LRG and SWP regarding settlement issues. Drafted receipt and release agreeement. Calculated Pennsylvania Inheritance Tax to be reimbursed to the Estate by David and Tony Magaro. Reviewed HUD-1 with SWP. Inter-office conference with LRG 0.50 @ 155.00/hr 77.50 0.70 @ 135.00/hr 94.50 1.00 @ 135.00/hr 135.00 2.50 @ 155.00/hr 387.50 1.00 @ 160.00/h:c 160.00 1.50 @ 155.00/hr 232.50 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration 05/18/00 LRG regarding breakdown of legal fees for Variety Machines. Prepared praecipe to discontinue. Correspondence to Corky Goldstein. Brief conference with Magaro family. Prepared for settlement. Prepared lists for completion of estate issues. 05/18/00 LRG 05/18/00 LRG Prepared memorandum to Marie Magaro regarding loan payable from Variety Machines, Inc. to estate. Reviewed working papers from Bob Walkenstein regarding loan payment. Discussions regarding same with Marie Magaro. Reviewed Pennsylvania inheritance tax calculations and reviewed reimbursement calculations. Reviewed 1.50 @ 160.00/hr 240.00 1.80 @ 160.00/hr 288.00 2.20 @ 160.00/hr 352.00 Page 4 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration 05/18/00 LRG reimbursement calculations for Tony and Dave Magaro. R~viewed SWP's memorandum. Discussion with Marie Magaro. Reviewed prior legal fee invoices relating to work done for Variety Machines, Inc. and/or Variety Investments. Reviewed Judge Oler' s order regarding reimbur sment from Variety Investments. Prepared calculations on legal fee reimbursement by Variety Machines, Inc. to estate of Magaro. Prepared memorandum regarding Discussions with Marie Magaro regarding 05/18/00 LRG Office conference with Marie Mag&ro, Tony Magaro and Dave Magaro to review estate issues and 2.50 @ 160.00/hr 400.00 1.50 @ 160.00/hr 240.00 Page 5 GATES & ASSOCIATES~ P.C. Magaro, David W., Estate of Estate Administration assist with transfer of stock issues to Tony and Dave. 05/19/00 LnG Inter-office conference with SLN and MEH regarding various estate issues and details following settlement. 05/22/00 LnG Telephone conference with Marie Magaro regarding various issues. Inter-office with SWP regarding closing issues. 09/13/00 10/19/00 10/19/00 MEH LnG LnG Reviewed memos from SWP re: various outstanding estate issues. Reviewed correspondence from the Register of Wills regarding Status Report. Reviewed correspondence from Pennsylvania Department of Revenue regarding extension of 0.90 @ 160.00/hr 144.00 0.40 @ 160.00/hr 64.00 0.20 @ 155.00/hr 31.00 0.30 @ 160.00/hr 48.00 0.30 @ 160.00/hr 48.00 Page 6 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration time to audit Pennsylvania inheritance tax. 10/20/00 SLN Prepared Status Report for filing with Cumberland County Register of Wills Office. 10/20/00 LnG 10/20/00 LnG 10/21/00 LnG 10/23/00 LnG Reviewed and signed the October, 2000 Status Report; prepared letter to Marie Magaro. Reviewed and revised letter to client regarding status report. Office conference with Marie Magaro to review estate administration issues, status report, etc. Telephone conference with Marie McAndrew regarding various estate issues. 10/23/00 TLS Traveled to Cumberland County Register of Wills Office and filed 0.40 @ 95.00/hr 38.00 0.30 @ 160.00/hr 48.00 0.20 @ 160.00/hr 32.00 0.50 @ 160.00/hr 80.00 0.40 @ 160.00/h:= 64.00 0.30 @ 75.00/hr 22.50 Page 7 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration Status Report Under Rule 6.12. Subtotal professional fees: $ 3,604.50 Total current billing: 3,604.50 Previous balance: 0.00 $ 0.00 Total now due: 3,604.50 Current Over 30 Over 60 Over 90 3604.50 O. 00 0.00 0 ..00 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717} 731-9600 Federal I.D. #25-1873750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O: Box 666 Wellsboro, PA 16901 Estate Administration Statement Date July 31, 2001 Period Ending July 31, 2001 Statement No. 16779 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 02/06/01 02/06/01 02/07/01 06/08/01 CJS Discussion with LRG regarding letter for Marie Magaro. CJS Reviewed LRG's notes of telephone call with Marie Magaro. CJS Drafted letter for Marie McAndrew. LRG Reviewed correspondence and Petition to Orphans' Court from Thomas Gohsler =~ PA Department of Revenue 0.30 @ lO0.00/hr 30.00 0.30 @ 100. O0/hr 30.00 0.80 @ 100.O0/hr 80.00 1.30 @ 160.00/hr 208.00 Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration regarding extension of time to file Notice of Appraisement for inheritance tax. 06/08/01 MEH Reviewed correspondence from Atty. Thomas Gohsler, application for additional time to appraise and inheritance rule to show cause; legal research; with LRG. 06/25/01 MEH Conference with LRG re: response to Dept. of Revenue's petition for additional time to review inheritance tax return. 07/20/01 ANp Researched Bankruptcy filing of Phelan. Obtained copies of Voluntary Petition, Schedules and Chapter 13 Plan. 2.00 @ 155.00/kr 310.00 0.20 @ 155.00/hr 31.00 1.00 @ 100.00/hr 100.00 07/20/01 MEH Reviewed 1.00 @ 155.00/hr 155.00 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration documents from Richard Phelan Ch. 13 bankruptcy; conference with ANP re: 07/20/01 ANP Researched Bankruptcy issues regarding Phelan and liability for partnership debts and dischargeabili ty of debts not included in schedules. 07/20/01 CJS Inter-office conferences with MEH, LRG, and ANP regarding bankruptcy of Richard Phelan. Reviewed bankruptcy materials obtained from Middle District. 07/23/01 ANp Researched Bankruptcy issue regarding creditors ability to collect on debt not listed in debtor's bankruptcy petition. 1.00 @ lO0.00/hr 100.00 0.80 @ 100.00/hr 80.00 1.00 @ 100.00/hr 100.00 07/25/01 CJS Inter-office 0.60 @ llO.O0/hr 66.00 conference Page 4 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration with ANp regarding Phelaro bankruptcy. Research regarding 07/26/01 ANP Meeting with Sarah Smith regarding research of Bankruptcy Title 11 U.S.C. section 523 issue. Subtotal Professional Fees: 0.20 @ lO0.00/hr 20.00 $ 1,310.00 Disbursements: 02/07/01 04/04/01 07/20/01 07/31/01 Postage. Postage. Photocopying. Postage. Subtotal disbursements: 0.34 2.46 5.00 0.34 $ 8.14 Total current billing: $ 1,318.14 11/02/00 No. 13243 Prior payments/credits Previous balance: 3,604.50 ( 0.00) 3,604.50 $ 3,604.50 3,604.50 TOTAL NOW DUE: Page 5 GATES& ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration Current Over 30 Over 60 Over 90 1318.14 0.00 0.00 3604.50 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Estate Administration Statement Date September 10, 2001 Period Ending August 31, 2001 Statement No. 16944 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 08/21/01 CJS Office conference with ANp regarding bankruptcy of Richard Phelan. Office conference with MEH regarding research. 0.40 @ llO.00/hr 44.00 Subtotal Professional Fees: $ 44.00 Total current billing: $ 44.00 11/02/00 07/31/01 No. 13243 3,604.50 Prior payments/credits ( 0.00) No. 16779 1,318.14 3,604.50 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration Prior payments/credits ( Previous balance: 0.00) 1,318.14 $ 4,922.64 Page 2 4,922.64 TOTAL NOW DUE: 4,966.64 Current Over 30 Over 60 Over 90 44.00 1318.14 0.00 3604.50 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFII~M.COM GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P~O~ Box 666 Wellsboro, PA 16901 Estate Administration Invoice Date December 4, 2001 Period Ending November 30, 2001 Invoice No. 17282 PAYMENT DUE UPON RECEIPT OF STATEMENT. All overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment.: American Express, Discover, Mastercard & Visa. Professional Fees: 11/14/01 LRG Reviewed and revised Status Report. 0.30 @ 160.00/hr 48.00 Subtotal Professional Fees: $ 48.00 Total current billing: $ 48.00 11/02/00 07/31/01 09/10/01 No. 13243 Prior payments/credits No. 16779 Prior payments/credits No. 16944 Prior payments/credits Previous balance: 3,604.50 ( 0.00) 3,604.50 1,318.14 ( 0.00) 1,318.14 44.00 ( 0.00) 44.00 $ 4,966.64 4,966.64 GATES & ASSOCIATES, P.C. Page 2 Magaro, David W., Estate of Estate Administration TOTAL NOW DUE: Current Over 30 Over 60 Over 90 48.00 0.00 0.00 4966.64 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRH.COM GATES, HALBRUNER & HATCH, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #30-0000518 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Estate Administration Invoice Date December 31, 2001 Period Ending December 31, 2001 Invoice No. 17927 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 12/15/01 LRG Telephone conference with Marie Magaro regarding administration issues. 0.50 @ 160.00/hr 80.00 Subtotal Professional Fees: $ 80.00 Total current billing: $ 80.00 11/02/00 07/31/01 09/10/01 12/04/01 NO. 13243 3,604.50 Prior payments/credits ( 0.00) 3,604.50 No. 16779 1,318.14 Prior payments/credits ( 0.00) 1,318.14 No. 16944 44.00 Prior payments/credits ( 0.00) 44.00 No. 17282 48.00 Page 2 GATES, HALERUNER & HATCH, P.C. Magaro, David W., Estate of Estate Administration Prior payments/credits Previous balance: 0.00) 48.00 $ 5,014.64 $ 5,014.64 TOTi~L NOW DUE: 5,094.64 Current Over 30 Over 60 Over 90 80.00 48.00 0.00 4966.64 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM GATES, HALBRUNER & HATCH, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #30-0000518 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Estate Administration Invoice Date February 11, 2002 Period Ending January 31, 2002 Invoice No. 18226 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 01/22/02 LRG Preparation of correspondence to Attorney Getz regarding Federal Estate Tax return; reviewed Form 706, related schedules and IRS Estate Tax Closing Letter. 1.30 @ 160.O0/hr 208.00 01/23/02 LRG Preparation of Pennsylvania Inheritance tax documents for attorney Getz. 0.50 @ 160.00/hr 80.00 01/24/02 LRG Preparation of correspondence to Attorney David Getz 1.10 @ 160.00/hr 176.00 GATES, HALBRUNER & HATCH, P.C. Page 2 Magaro, David W., Estate of Estate Administration 01/25/02 LRG 01/25/02 LRG enclosing various PA inheritance tax documents and explaining payment by David Magaro Estate of inheritance tax on Stumpstown Road property. Tax research IRS Estate Tax closing letter and IRS's ability to open estate audit after re-adjustment on objections to partial accounting. Preparation of recalculations for Pennsylvania Inheritance tax and Federal Estate Tax; telephone conference with Attorney Dave Getz; office conference with Marie McAndrew and Tony Magaro regarding settlement issues. 01/28/02 LRG Preparation of correspondence to David Getz regarding Marie Magaro's authority to 0.70 @ 160.00/hr 112.00 1.00 @ 160.00/hr 160.00 2.00 @ 160.00/hr 320.00 GATES, HALBRUNER & HATCH, P.C. Page 3 Magaro, David W., Estate of Estate Administration Deed Stumpstown Road property from Estate to herself. 01/28/02 LRG Legal research regarding PEF Code section 3235 and administratrix 's authority to deed specifically devised property to devisee. 01/28/02 LRG Tax research regarding IRS Estate Tax Closing letters. 01/29/02 ANP Researched Rev Proc 94-68. 1.00 @ 160.00/hr 160.00 1.00 @ 160.00/hr 160.00 0.40 @ 100.00/hr 40.00 Subtotal Professional Fees: $ 1,416.00 Total current billing: $ 1,416.00 11/02/00 07/31/01 09/10/01 12/04/01 12/31/01 No. 13243 Prior payments/credits No. 16779 Prior payments/credits No. 16944 Prior payments/credits No. 17282 Prior payments/credits No. 17927 Prior payments/credits Previous balance: 3,604.50 ( 0.00) 3,604.50 1,318.14 ( 0.00) 1,318.14 44.00 ( 0.00) 44.00 48.00 ( 0.00) 48.00 80.00 ( 0.00) 80.00 $ 5,094.64 $ 5,094.64 GATES, HALBRUNER & HATCH, P.C. Magaro, David W., Estate of Estate Administration TOTAL NOW DUE: Page 4 6,510.64 Current Over 30 1416.00 80.00 Over 60 Over 90 48.00 4966.64 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM Magaro, David W., Estate of ¢/o Marie K. McAndrew, Adrrmistratfix P.O. Box666 Wellsbom, PA 16901 Estate Administration Gates, Halbruner & Hatch, P.C. 1013 Mm Road Suite # 100 Lerroyne, PA 17043 (717) 731-9600 Federal I.D. #03-0379998 INVOICE Invoice Date May 31, 2002 Period Ending May 31, 2002 Invoice No. 20232 PA~ DUEUPON RECEIPT OF STATEIvI~NT All overdue accounts will be assessed finance charges of 1.5% per n'onth. We now accept the following credit cards for payrrent: American Fo~mss, Discover, Mastercard & Visa. Professional Fees 2/13/2002 LRG TIll,FIr>HONE CONHc;I~NCE WITH MARIE MCANDREW REGARDING NUMI~OUS ESTATE ADMINISTRATION ISSUES. 1.20 ~ 160.00/hr 192.00 Sub-total Fees: 192.00 Total Cuneat l~flling: 192.00 P~evious Enlanee Due: 6,510.64 Total NowDue: 6,702.64 Curt'em Over 30 Over 60 Over 90 192.00 0.05 0.00 6,510.64 PLEASE S I~ND ALL PAY1VH~rI'S AND CORRESPONDI~ICETO OUR LI~IDYNEADDRESS. VISIT OIli WI~SITEAT WWW.GATI~ LAWFIR1Vt COM David W. I~g~o, Estate of c/o Marie K. Magaro, Administmtrix Apt. 605 Chesterbrook Court ~v Hill PA 17(111 Gates, Halbruner & Hatch, P.C. 1013 M~ Road Suite #100 (717) 248-6909 Federal I.D. #03-0379998 INVOICE Invoice Date April 30, 2003 Period Ending March 3 I, 2003 Invoice No. 24873 PAYMENT DUE UPON RECEIPT OF STATEMENT All overdue accounts will be assessed finance charges of 1.5% per momh. We now accept the following credit cards for payment: Disc:over, Mastercard & Visa. Professional Fees 3/10/2003 CJS 3/11/2003 CJS 3/11/2003 CJS 3/26/2003 CJS 3/28/2003 CJS OFFICE CONFERENCE WITH LRG REGARDING APPLICATION FOR APPOINTMENT OF CUSTODIAN BY PNC BANK. REVIEWED APPLICATIONS AND LEGAL RESEARCH INVOLVING SAME. OFFICE CONFERENCE WITH LRG. REVIEWED CORRESPONDENCE RECEIVED FROM AITI ORNEY KATZMAN. LEGAL RESEARCH REGARDING PETITION TO WITHDRAW AS COUNSEL FOR ESTATE. OFFICE CONFERENCE WITH LRG. BEGAN DRAFTING PETITION TO WITHDRAW AS COUNSEL FOR ESTATE. LEGAL RESEARCH REGARDING WITHDRAWING AS COUNSEL FOR ESTATE. OFFICE CONFERENCE WITH TLS. BEGAN DP, A~TING CORRESPONDENCE TO ATTORNEY KATZMAN. DIL~qED AND MAILED CORRESPONDENCE TO ATTORNEY KATZMAN REGARDING APPLICATIONS FOR APPOINTMENT OF CUSTODIANS FILED BY PNC BAlqK. 2.50~l10.00/hr 1.O0~llO.O0/hr 1.60~l10.00/M' 0.50~ll0.00/hr 0.50~ll0.00/hr Sub-total Fees: 275.00 110.00 176.00 55.00 55.00 671.00 E~xpenses 12/27/2002 LONG DISTANCE CHARGES. 0.13 GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Antonio W. Magaro Variety Machines, Inc. 116 East Allen St. Mechanicsburg, PA 17055 David w: Magaroi Jr. Matter Statement Date November 2, 2000 Period Ending October 31, 2000 Statement No. 13242 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 08/03/00 MEH Inter-office 0.50 @ 155.00/hr 77.50 conference with LRG regarding David Magaro solicitation of Variety Machines, Inc. customer in breach of agreement with Tony Magaro. 08/03/O0 SWP Conference with LRG to discuss and debate the implication of David Magaro soliciting clients who have been identified on the covenant included in 0.50 @ 135.00/hr 67.50 Page 2 GATES & ASSOCIATES, P.C. David W. Magaro, Jr. Matter 08/04/00 SWP the revised sales agreement. Telephone conference with Attorney Corky Goldstein to confirm his representation of David Magaro and his client's solicitation of clients. 08/04/00 SWP 08/07/00 swP 08/07/00 MEH O8/09/0O SWP Drafted letter to David Magaro reminding him of the consequences of his actions and the ramifications of default under the revised sales agreement between the two parties. Reviewed correspondence to David Magaro reminding him of the non-compete provisions. Reviewed correspondence to David Magaro, Jr. Telephone call from David Magaro to discuss the reminder 0.60 @ 135.00/hr 81.00 0.80 @ 135.00/hr 108.00 0.40 @ 135.00/hr 54.00 0.40 @ 155.00/hr 62.00 0.50 @ 135.00/hr 67.50 Page 3 GATES & ASSOCIATES, P.C. David W. Magaro, Jr. Matter letter which was sent to him regarding violations of the covenant not to compete. Subtotal professional fees: $ 517.50 Total current billing: $ 517.50 Previous balance: $ 0.00 $ 0.00 Total now due: 517.50 Current Over 30 Over 60 Over 90 517.50 0.00 0.00 0.00 GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite %100 Lemoyne, PA 17043-1218 (717} 731-9600 Federal I.D. #25-1673750 STATEMENT Antonio W. Magaro Variety Machines, Inc. 116 East Allen Street Mechanicsburg, PA 17055 Loan to Variety Machines, Inc. Statement Date November 2, 2000 Period Ending October 31, 2000 Statement No. 12141 PAYMENT DUE UPON RECEIPT OF STATEM~:NT. Ail overdue accounts will be assessed finance charges of i 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 06/23/00 SWP Preparation of UCC-3 to terminate Community Trust Co. security interest. 1.00 @ 135.00/hr 135.00 08/01/00 SWP Conference with MEH to discuss a strategy to recover the funds due and owing to Variety Machines from Variety Investments. 0.60 @ 135.00/hr 81.00 Subtotal professional fees: $ 216.00 GATES & ASSOCIATES, P.C. Page 2 Loan to Variety Machines, Inc. Total current billing: $ 216.00 Previous balance: 0.00 $ o.oo Total now due: 216.00 Current Over 30 Over 60 Over 90 216.00 0.00 0.00 0.00 GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 Greenray Industries, Inc. Stock Liquidation Statement Date November 2, 2000 Period Ending October 31, 2000 Statement No. 14470 PAYMENT DUE UPON P~ECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 06/07/00 SWP Inter-office conference with LRG regarding Greenray and C-MAC. Telephone conference with C-MAC shareholder exchange company. Strategy meeting - file and evidence search. 1.80 @ 135.00/hr 243.00 06/07/00 MEH Inter-office conference with LRG and SWP regarding ownership of Greenray stock and distribution from sale of 0.60 @ 155.00/hr 93.00 Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Greenray Industries, Inc. Stock Liquidation same. 06/07/00 LRG Reviewed stock certificate for Greenray Industries, Inc. 07/06/00 SWP Preparation of Beard of Director resolutions for Variety Machines, Inc. to execute Greenray Industries, Inc. cash redemption document. Completion of letter to GSLC to cash shares. 07/06/00 07/07/00 LRG Reviewed file and stock certificate to resolve issue of true ownership. SWP Meeting with Tony to execute shareholder documentation for GreenRay industries. Telephone conference with GSCC. Letter to GSCC. 07/17/00 LRG Reviewed memorandum regarding conversation with Robert Walkenstein 1.10 @ 160.00/hr 176.00 2.00 @ 135.00/hr 270.00 0.50 @ 160.00/hr 80.00 0.80 @ 135.00/hr 10B.00 0.40 @ 160.00/h:c 64.00 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Greenray Industries, Inc. Stock Liquidation and Greenray Industries, Inc. stock. Prepared notes to the fi!c. 0s/02/00 SWP Reviewed file for status of Greenray stock. 08/16/00 SWP Drafted reply fax to opposing regarding Greenray stock. Internal correspondence to LRG regarding the role of Bob Walkenstein. 09/13/00 SWP 09/14/00 SWP Telephone calls to Georgeson Shareholder (the company distributing the funds for the Greenray Shares stock). Internal e-mail update and fax update to Tony Magaro regarding the proceeds. Telephone call from Marie Magaro regarding the status of the Greenray stock. 0.30 @ 135.00/hr 40.50 0.40 @ 135.00/hr 54.00 0.70 @ 135.00/hr 94.50 0.30 @ 135.00/hr 40.50 09/25/00 SWP Telephone call 0.30 @ 135.00/hr 40.50 from Tony Page 4 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Greenray Industries, Inc. Stock Liquidation regarding the proceeds from the Greenray Stock. 09/27/00 CJS 09/27/00 CJS 09/27/00 CJS 09/27/00 CJS 09/27/00 CJS Telephone call to Tony Magaro. Discussion with SWP regarding stock and escrow agreement. Telephone call from Tony Magaro. E-mail to SWP outlining telephone call from Tony Magaro. Reviewed file on Greenray Industries stock. 09/27/00 CJS 09/27/00 CJS 09/27/00 SWP Began drafting escrow agreement. Finished drafting escrow agreement. Telephone call from Tony regarding the deposit of the proceeds from the Sale of the Greenray Stock. Preparation of the escrow agreement. 0.20 @ lO0.O0/hr 20.00 0.20 @ lO0.O0/hr 20.00 0.20 @ lO0.O0/h:r 20.00 0.20 @ 100.00/hr 20.00 0.50 @ lO0.00/hr 50.00 0.80 @ 100.00/hr 80.00 0.40 @ 100.00/hr 40.00 0.50 @ 135.00/hr 67.50 Page 5 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Greenray Industries, Inc. Stock Liquidation 09/28/00 CJS Revised escrow agreement. 09/28/00 SWP Telephone call from Tony regarding placing the proceeds in his own escrow account. 10/04/00 SWP Telephone call from Tony regarding the establishment of account to hold the funds from the Greenray Stock. 10/06/00 CJS Discussion with SWP regarding bylaws of Variety Machines. 10/26/00 LRG Reviewed file; telephone call to Antonio Magaro regarding receipt of Greenray Industries, Inc. stock sale proceeds; prepared letter to Antonio Magaro regarding 10/27/00 LRG Reviewed and revised letter to Tony Magaro regarding escrow account. 0.40 @ 100.00/hr 40.00 0.30 @ 135.00/hr 40.50 0.30 @ 135.00/hr 40.50 0.20 @ 100.O0/hr 20.00 0.70 @ 160.O0/hr 112.00 0.30 @ 160.00/hr 48.00 Page 6 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Greenray Industries, Inc. Stock Liquidation Subtotal professional fees: $ 1,922.50 Disbursements 05/09/00 Long distance charges. 0.26 05/10/00 Long distance charges. 0.78 05/10/00 Long distance charges. 0.26 05/10/00 Long distance charges. 0.39 05/17/00 Long distance charges. 1.56 05/19/00 Long distance charges. 0.13 05/19/00 Long distance charges. 0.13 06/22/00 Long distance charges. 0.26 07/12/00 Federal Express charge to Georgeson 22.76 Shareholder Co. - Canada. 07/18/00 Postage. 0.99 09/05/00 Long distance charges. 0.13 09/05/00 Long distance charges. 0.13 09/13/00 Postage. 0.44 09/13/00 Postage. 0.55 10/26/00 Long distance charges. 2.47 10/26/00 Long distance charges. 0.39 Subtotal disbursements: $ 31.63 Total current billing: $ 1,954.13 Previous balance: $ 0.00 $ 0.00 Total now due: 1,954.13 Current Over 30 Over 60 Over 90 1954.13 0.00 0.00 0.00 GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 15921 Greenray Industries, Inc. Stock Liquidation Statement Date December 22, 2000 Period Ending November 30, 2000 Statement NO. 15011 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment:: American Express, Discover, Mastercard & Visa. Professional Fees 11/09/00 LRG Reviewed file; telephone call to Tony Magaro to obtain copy of "Variety Amusements" fictitious name filing at corporation bureau; reviewed Variety Machines, Inc. corporate minute book. 0.40 @ 160.00/hr 64.00 11/09/00 MEN Conference with CJS re: history of Variety Machines and Variety Investments, ownership of stock and use of tradename 0.50 @ 155.00/hr 77.50 Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Greenray Industries, Inc. Stock Liquidation "Variety 11/09/00 CJS Discussion with Attorney Halbruner regarding background of Variety Investments and Greenray Industries stock. 11/09/00 CJS Researched corporate minute book regarding various purchases and transactions. 11/09/0o CJS Reviewed files on Greenray Industries stock, sales agreement, and Variety Investments. 11/09/00 CJS Reviewed previous correspondence regarding Greenray Industries stock. 11/17/00 CJS Reviewed Greenray Industries file and Variety Investments file. 11/17/o0 CJS Drafted letter to Attorney Rogers regarding Greenray 0.30 @ 100.00/hr 30.00 0.80 @ 100.00/hr 80.00 1.20 @ 100.00/hr 120.00 0.40 @ 100.00/hr 40.00 0.80 @ 100.00/hr 80.00 1.00 @ 100.00/hr 100.00 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Greenray Industries, Inc. Stock Liquidation Industries stock. 11/21/oo 11/21/00 CJS Reviewed and revised letter to Attorney Rogers for Estate of William G. Magaro. LRG Reviewed file and numerous documents relating Variety Machines, Inc. and Variety Investments; prepared letter to opposing counsel. 11/21/00 11/21/00 CJS Discussions with Attorneys Halbruner and Gates regarding background and the estates of William Magaro and David Magaro. CJS Researched files and corporate minutes regarding stocks, dates of acquisition and sale, dates of signatures, etc. 11/21/00 CJS Revised letter to Attorney Rogers regarding 0.80 @ 100.00/hr 80.00 0.80 @ 160.00/hr 128.00 0.80 @ 100.00/hr 80.00 1.00 @ 100.00/hr 100.00 0.40 @ 100.00/hr 40.00 Page 4 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Greenray Industries, Inc. Stock Liquidation Greenray Industries stock. 11/21/00 MEH Inter-office conference with CJS regarding draft letter to Atty. Rogers on ownership of Greenray Industries stock. 11/27/00 CJS Reviewed and revised letter to Attorney Rogers regarding Greenray Industries stock. Subtotal professional fees: 0.20 @ 155.00/hr 31.00 1.20 @ 100.00/hr 120.00 $ 1,170.50 Total current billing: $ 1,170.50 11/02/00 No. 14470 Prior payments/credits Previous balance: 1,954.13 ( 0.00) 1,954.13 $ 1,954.13 $ 1,954.13 Total now due: $ 3,124.63 GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite %100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Antonio W. Magaro Variety Machines, Inc. 116 East Allen Street Mechanicsburg, PA 17055 Refinance of Allen Street Properties Statement Date November 2, 2000 Period Ending October 31, 2000 Statement No. 13244 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 05/14/00 SWP Inter-office 1.20 @ N/C 0.00 conference with LnG and SLN. Telephone conference with Jim McAndrew. 05/14/00 SWP Finalized 5.50 @ N/C 0.00 closing related matters. 05/16/00 SWP Investigated 1.50 @ N/C outstanding stock certificates. Recalculated interest payments. Telephone conference with Banker. 0.00 05/16/00 SWP Telephone 1.50 @ N/C 0.00 conferences Page 2 GATES & ASSOCIATES, P.C. Refinance of Allen Street Properties with Corky Goldstein. Telephone conferences with Tony. 05/16/00 SLN Inter-office conference with SWP and telephone conference with Mike Postupak at AllFirst Bank regarding title binder requirements. Travel to Ionni Abstract to pick up title binder. 05/17/00 SWP Telephone conference with Corky Goldstein regarding client lists. Telephone conference with Tony regarding clients. Preparation of revised client lists. 05/17/00 05/17/00 SWP Preparation of interest payment summaries and escrow agreement. Telephone call from Corky. SWP Inter-office conference with SLN regarding settlement sheets to 0.60 1.50 1.70 1.00 @ N/C @ N/C @ N/C @ N/C 0.00 0.00 0.00 0.00 Page 3 GATES & ASSOCIATES, P.C. Refinance of Allen 05/17/00 LRG 05/17/00 LRG 05/17/00 SLN 05/18/00 SLN 05/19/00 SLN Street Properties represent all transactions. Inter-office conference with LRG regarding terms. Telephone conference with Tony Magaro regarding purchase of David Magaro. Telephone call from Tony Magaro regarding details. Prepared title insurance documents. Reviewed abstract of title and title search. Marked-up title binder. Attended to various miscellaneous settlement matters. Attended to various miscellaneous settlement matters. Photocopied closing documents for distribution to all parties. Attended to miscellaneous matters to 0.50 @ N/C 0.00 3.50 @ N/C 0.00 6.50 @ N/C 0.00 3.50 @ N/C 0.00 2.20 @ N/C 0.00 Page 4 GATES & ASSOCIATES, P.C. Refinance of Allen 05/22/00 SLN 06/30/00 SLN 07/01/00 LRG 08/28/00 SWP Street Properties close out settlement file. Filed documents with Recorder of Deeds and Department of State. Organized file. Preparation of closing correspondence to Ionni Abstract regarding title insurance. Completed Attorney's Final Report and correspondence to Ionni Abstract. Reviewed and signed final attorney's certificate and letter to Ionni Abstract, regarding title insurance. Calculated Tony's basis in 114 & 116 East Allen Street Properties based upon research of the files. 0.60 @ N/C 0.00 0.60 @ 95.00/hr 57.00 0.60 @ 160.O0/hr 96.00 1.50 @ 135.00/hr 202.50 Subtotal professional fees: $ 355.50 Page 5 GATES & ASSOCIATES, P.C. Refinance of Allen Street Properties Disbursements 04/12/00 04/15/00 04/18/00 04/21/00 04/25/00 05/03/O0 O5/O4/0O 05/09/00 05/16/oo 05/17/00 05/19/00 o5/19/o0 05/22/00 05/22/00 05/22/00 05/22/00 05/22/00 06/09/00 06/13/00 06/15/00 06/20/00 06/21/00 06/28/00 06/29/00 07/18/00 Long distance charges. Long distance charges. Long distance charges. Long distance charges. Long distance charges. Long distance charges. Federal Express charge. Federal Express charge. Long distance - fax. Long distance charges. Mileage - travel to Cumberland Co. Courthouse to file documents. Parking. Postage. Postage. Mileage - travel to Cumberland Co. Courthouse to file documents. Parking. Filing fees - additional fee - Cumberland Co. Recorder of Deeds, Statement of Value. Long distance - fax. Long distance - fax. Long distance charges. Long distance - fax. Long distance - fax. Long distance - fax. Long distance charges. Long distance - fax. Subtotal disbursements: 0.21 0.35 0.26 1.92 0.10 0.26 18.46 11.44 0.18 0.21 7.15 0.25 1.43 4.18 7.15 0.25 1.00 1.89 0.75 0.26 0.26 0.59 0.12 0.26 0.18 59.11 Total current billing: 414.61 Previous balance: 0.00 $ 0.00 Total now due: $ 414.61 Page 6 GATES & ASSOCIATES, P.C. Refinance of Allen Street Properties Current Over 30 Over 60 Over 90 414.61 0.00 0.00 0.00 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Antonio W. Magaro Magaro, David W., Estate of Variety Machines, Inc. !16 E. Allen Street Mechanicsburg, PA 17055 Variety Machines - General Business Matters Statement Date September 30, 2001 Period Ending September 30, 2001 Statement No. 13247 PAYMENT DUE UPON RECEIPT OF STATE~:NT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 09/21/01 09/25/01 09/27/01 MEH Reviewed file; memo to LRG re: collection of debt owed to Variety Machines, Inc. by Magaro-Phelan partnership. MEH Conference with ANP re: research for collection of debt owed to Variety Machines, Inc. by Magaro-Phelan partnership. ANP Researched liquidation file of Magaro-Phelan. 0.30 @ 155.00/hr 46.50 0.20 @ 155.00/hr 31.00 2.00 @ 100.00/hr 200.00 GATES & ASSOCIATES, P.C. Page 2 Magaro, David W., Estate of Variety Machines - General Business Matters 09/28/01 ANP Reviewed file. Travel to and from Cumberland County Courthouse and meeting with Judge Oler regarding File. Subtotal Professional Fees: 2.50 @ lO0.00/hr 250.00 $ 527.50 Total current billing: 527.50 Previous balance: $ 0.00 $ 0.00 TOTAL NOW DUE: 527.50 Current Over 30 Over 60 Over 90 527.50 0.00 0.00 0.00 PLEASE VISIT OUR WEBSITE AT WW-W.GATESLAWFIRM.COM GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 INVOICE Antonio W. Magaro Magaro, David W., Estate of Variety Machines, Inc. 116 E. Allen Street Mechanicsburg, PA 17055 Variety Machines - General Business Matters Invoice Date November 9, 2001 Period Ending October 31, 2001 Invoice No. 17483 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 10/02/01 MEH Telephone call 2.50 @ 155.00/hr 387.50 from ANP re: research at Cumberland County Courthouse on loan owed by Magaro-Phelan partnership; office conference with ANP; reviewed research results from ANp; online search for real estate owned by Magaro-Phelan partnership; telephone call to A~y. John Eakin; correspondence GATES & ASSOCIATES, P.C. Page 2 Magaro, David W., Estate of Variety Machines - General Business Matters 10/02/01 ANp to Antonio Magaro. Researched PNC suit versus Phelan and partnership for evidence of loan. 10/11/01 MEH Reviewed Superior Court decision in Wm. Magaro Estate v. Phelaro, Inc. (denying that statute of limitations barred collection of debt). Subtotal Professional Fees: 2.00 @ 100.00/hr 200.00 0.30 @ 155.00/hr 46.50 $ 634.00 Miscellaneous 10/31/01 Finance Charge. Subtotal miscellaneous: 7.91 7.91 Total current billing: 641.91 09/30/01 No. 13247 Prior payments/credits Previous balance: 527.50 ( 0.00) 527.50 $ 527.50 $ 527.50 TOTAL NOW DUE: $ 1,169.41 GATES & ASSOCIATES, P.C. Page 3 Magaro, David W., Estate of Variety Machines - General Business Matters Current Over 30 Over 60 Over 90 641.91 527.50 0.00 0.00 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 INVOICE Antonio W. Magaro Magaro, David W., Estate of Variety Machines, Inc. 116 E. Allen Street Mechanicsburg, PA 17055 Variety Machines - General Business Matters Invoice Date December 4, 2001 Period Ending November 30, 2001 Invoice No. 17728 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Miscellaneous 11/30/01 Finance Charge. Subtotal miscellaneous: 7.91 7.91 Total current billing: 7.91 09/30/01 No. 13247 527.50 Prior payments/credits ( 0.00) 527.50 11/09/01 No. 17483 641.91 Prior payments/credits ( 0.00) 641.91 Previous balance: $ 1,169.41 $ 1,169.41 TOTAL NOW DUE: $ 1,177.32 GATES & ASSOCIATES, P.C. Page 2 Magaro, David W., Estate of Variety Machines - General Business Matters Current Over 30 Over 60 Over 90 7.91 641.91 527.50 0.00 PLEASE VISIT OUR WEESITE AT WWW.GATESLAWFIRM.COM GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 STATEMENT Variety Investments Litigation Statement Date May 2, 2000 Period Ending May 2, 2000 Reference No. 12754 Professional Fees 03/17/00 LRG 03/17/00 LRG 03/17/00 LRG 03/20/00 LRG 04/13/00 LRG PAYMENT DUE UPON I~ECEIPT OF STATEMENT Office conference with Richard Phelan regarding possible in-kind distribution of Phelaro, Inc. common stock to Magaro estates. Prepared letter to Atty. Richard Grubb regarding in-kind distribution of Phelaro, Inc. stock to Magaro estates. Reviewed and revised letter to Atty. Grubb. Reviewed letter to Atty. Grubb regarding Phelaro Inc. stock distribution. Prepared and collected information for partnership 0.50 @ 160/hr 1.00 @ 160/hr 0.30 @ 160/hr 0.20 @ 160/hr 1.00 @ 160/hr 80.00 160.00 48.00 32.00 160.00 Page 2 GATES & ASSOCIATESt P.C. Magaro, David W., Estate of Variety Investments Litigation income tax returns. 04/14/00 LRG 04/14/00 LRG 04/15/00 LRG Prepared info~--mation, organized accounting data, and prepared memorandum to Leon Waiters, CPA, for 1999 tax return preparation. Office conference with Leon Walters, CPA, to review 1999 income tax information and tax return preparation. Telephone conference with Leon Walter regarding 1999 tax returns. Reviewed and revised informal accounting for 1999 calendar year. Brief office conference with Leon Walter. Prepared fax to Marie McAndrew regarding 1999 accounting and tax returns. Prepared fax and memorandum to Leon Walter. Prepared fax to Atty. Christopher Conner regarding 1999 tax returns and accounting. 2.30 0.50 3.00 @ 160/hr @ 160/hr @ 160/hr 368.00 80.00 480.00 04/18/00 LRG Telephone 0.40 @ 160/hr 64.00 conference with Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Litigation Marie McAndrew regarding 1999 accounting and tax returns. Subtotal professional fees: 1,472.00 Disbursements 03/03/00 CD Long distance charges. 03/03/00 CD Long distance charges. 03/13/00 CD Long distance charges. 03/17/00 CD Long distance charges. 04/12/00 CD Long distance charges. 04/12/00 CD Long distance charges. 04/12/00 CD Long distance charges. 04/12/00 CD Long distance charges. 04/14/00 CD Long distance charges. 04/21/00 CD Long distance charges. 04/21/00 CD Long distance charges. 04/21/00 CD Long distance charges. Subtotal disbursements: 2.00 0.26 30.00 3.90 2.00 0.26 2.00 0.26 1.00 0.13 2.00 0.26 3.00 0.39 3.00 0.39 3.00 0.39 5.09 0.65 10.00 1.30 1.00 0.13 8.32 Total current billing: Payments Received 05101/oo 05/02/0o Retainer application - (#3536) Check to Leon R. Walter, accountant. (#3535) ( 1,000.00) 500.00 ( 1,000.00) 1,480.32 Previous balance: 0.00 -1,000 · O0 Total now due: 480.32 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Litigation Hold Account C: Page 4 16,375.60 Current 480.32 Over 30 Qve~60 Over 90 0.00 0.00 0.00 Ail overdue accounts will be assessed finance charges of 1 1/2% per month. WE NOW ACCEPT THE FOLLOWING CREDIT CARDS FOR PAYMENT: AMERICAN EXPRESS, DISCOVER, VISA & MASTERCARD. PLEASE CALL THE OFFICE FOR DETAILS. GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717} 731-9600 Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 STATEMENT Variety Investments Litigation Statement Date May 18, 2000 Period Ending May 15, 2000 Reference No. 13022 Professional Fees 04/13/00 LRG 04/17/00 LRG 04/17/00 LRG 05/03/00 LRG 05/04/00 LRG PAYMENT DUE UPON RECEIPT OF STATEMENT Prepared partnership income tax returns. Office conference with Leon Walter, CPA, to review 1999 partnership tax returns. Paid invoice for tax return preparation. Filed IRS Form 8736, extension to file partnership tax return. Reviewed letters from Atty. Kit Conner regarding informal accounting. Reviewed letter from Atty. Kit Conner. Prepared letter to Leon Walter enclosing check for 1999 1.00 @ 160/hr 0.50 @ 160/hr 0.20 @ 160/hr 0.30 @ 160/hr 1.00 @ 160/hr 160.00 80.00 32.00 48.00 160.00 Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Litigation payment, prepared letters to Atty. Conner with response to Conner's letter. 05/04/00 LRG Reviewed working papers from Bob Walkenstein, CPA. o5/08/oo 05/o9/00 05/09/00 05/09/0o LRG LRG LRG LRG Reviewed and revised letter to Leon Walter. Reviewed and revised letter to Atty. Conner. Reviewed and filed 1999 Partnership Tax Returns. Prepared letters to Atty. Connor and Marie Magaro. Reviewed and revised letters to Leon Walters and Christopher Conner regarding partnership liquidation. Reviewed and revised letters to Atty. Conner and Marie McAndrew regarding 1999 tax returns. Telephone conference with Leon Walters regarding meeting to discuss final accounting. 0.50 @ 160/hr 80.00 0.40 @ 160/h2~ 64.00 0.50 @ 160/hr 80.00 0.60 @ 160/hr 96.00 0.70 @ 160/hr 112.00 Subtotal professional fees: 912.00 Page 3 GATES & ASSOCIATES, P.C. Magaro, David w., Estate of Variety Investments Litigation Disbursements 05/08/00 CD 05/09/00 CD 05/09/00 CD 05/11/00 CD 05/11/00 CD 05/11/00 CD 05/12/00 CD Long distance charges. Postage. Postage. Long distance charges. Long distance charges. Long distance charges. Long distance charges. Subtotal disbursements: 1.00 0.13 1.00 0.77 !.0~ 0.99 ll.0D 1.43 1.00 0.13 7.00 0.91 1.00 0.13 4.49 Total current billing: 916.49 05/02/00 No. 12754 Prior payments/credits Previous balance: 1,480.32 ( 1,000.00) 480.32 480.32 480.32 Total now due: 1,396.81 Hold Account C: 16,540.70 Current Over 30 Over 60 Over 90 1396.81 0.00 0.00 0.00 Page 4 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Litigation Ail overdue accounts will be assessed finance charges of 1 1/2% per month. NOW ACCEPT THE FOLLOWING CREDIT CA~DS FOR PAYI,~NT= AMERICAN EXPRESS, DISCOVER, VISA & MASTERCARD. PLEASE CALL THE OFFICE FOR DETAILS. GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 G~ine~, PA 16921 Variety Investments Dissolution Statement Date November 2, 2000 Period Ending October 31, 2000 Statement No. 13246 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 05/19/00 LnG Prepared 0.80 @ 160.O0/hr 128.00 letter to Atty. Richard Grubb regarding in-kind distribution of Phelaro, Inc. stock. 05/25/00 05/25/00 LnG Meeting with Leon Walters, CPA, to review and discuss final accounting and dissolution of partnership. MEH Inter-office conference with LRO and Leon Walter. 2.00 @ 160.00/hr 320.00 1.60 @ 155.00/hr 248.00 06/07/00 SWP Inter-office 1.00 @ 135.00/hr 135.00 conference Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution with LRG regarding Phelaro, Inc. history, status, and strategy. Telephone call to Rich Grubb and Chris Cicconni. 06/07/00 06/12/00 LRG Telephone call from Chris Cicconni regarding transfer of Phelaro, Inc. stock in-kind. Reviewed file regarding same and prior letters to Atty. Richard Grubb. Inter-office conference with SWP regarding potential agreement. SWP Telephone conference with Chris Cicconni of Eckert Seamans regarding in-kind distribution of shares. 07/05/00 07/06/00 SWP Preparation of Liquidation Agreement. SWP Completed draft of Liquidation Agreement for Variety Investment to 1.10 @ 160.00/hr 176.00 3.20 @ 136.00/hr 432.00 0.50 @ 135.00/hr 67.50 0.30 @ 135.00/hr 40.50 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution distribute Phelaro Inc. shares. 07/11/00 SWP Reviewed in-kind Liquidation Agreement for Phelaro Inc. 07/13/00 07/14/00 07/17/00 SWP SWP LnG Revised the Liquidation Agreement. Inter-office conference with LnG regarding Phelaro Inc. in-kind distribution agreement. Reviewed file and tax returns. Prepared letter to Robert Walkenstein, CPA regarding tax returns. 07/17/00 LnG Reviewed and revised letter to Bob Walkenstein. 07/18/00 SWP Revised distribution agreement for Phelaro, Inc. stock. Distribute agreement to Atty. Conner, Atty. Cicconi and Marie McAndrew. 0.40 @ 135.00/hr 54.00 0.40 @ 135.00/hr 54.00 0.40 @ 135.00/hr 54.00 0.40 @ 160.00/hr 64.00 0.20 @ 160.O0/hr 32.00 0.90 @ 135.00/hr 121.50 07/18/00 LRG Reviewed and 0.90 @ 160.O0/h:= 144.00 Page 4 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution revised Liquidation Agreement for Phelaro, Inc. stock. 08/02/00 SWP Preparation of correspondence to opposing counsel regarding in-kind distributions. o8/o3/oo LRG Reviewed correspondence to Attorney Cicconi, and correspondence to Attorney Conner. 08/04/00 LRG Reviewed correspondence to (from) Mark Bradshaw regarding Phelaro, Inc. stock distribution. 08/o4/00 SWP Correspondence with Mark Bradshaw at Eckert Seamans regarding the in-kind distribution agreement for Phelaro Inc. Stock. 08/09/00 SWP Reviewed correspondence from opposing counsel Rogers and sent a fax regarding completing the issue. 0.50 @ 135.00/hr 67.50 0.40 @ 160.00/hr 64.00 0.20 @ 160.00/hr 32.00 0.30 @ 135.00/hr 40.50 0.40 @ 135.00/hr 54.00 Page 5 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution 08/15/00 SWP 08/22/00 SWP 09/05/00 SWP Reviewed correspondence from PNC Bank counsel regarding changes to the Phelaro Inc. in kind distribution agreement. Faxed letter to opposing counsel Cicconi regarding acceptance of the in-kind distribution agreement. Telephone message for opposing counsel Rogers. Reviewed the stock release received from counsel for the estate of William Magaro. Telephone call to opposing counsel. 09/06/00 SWP Drafted letter to opposing counsel regarding stock certificate affidavit. Review of affidavit and release. Telephone messages to counsel for Phelaro Inc. 0.30 @ 135.00/hr 40.50 0.30 @ 135.00/hr 40.50 0.40 @ 135.00/hr 54.00 0.60 @ 135.00/hr 81.00 Page 7 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution 09/28/00 CJS 09/28/00 SWP 09/28/00 SWP Began preparing Phelaro stock liquidation agreement. Telephone call from opposing counsel Elyse Rogers regarding the request from Phelaro, Inc. for a partnership document consenting to the distribution of shares to the individual partners. Conference with CJS regarding the document to be prepared. Attempted phone calls to Attorney Mark Bradshaw. 09/29/00 CJS 09/29/00 CJS 09/29/00 CJS Finished drafting stock distibution agreement. Discussions with SWP regarding stock distribution agreement. Reviewed and revised stock distribution agreement (several times). 0.80 @ lO0.00/hr 80.00 0.30 @ 135.00/hr 40.50 0.30 @ 135.00/hr 40.50 1.20 @ lO0.O0/hr 120.00 0.30 @ lO0.O0/hr 30.00 1.30 @ 100.00/hr 130.00 Page 8 GATES& ASSOCIATES, P.C. Magaro, David W., Variety Investments 09/29/00 SW~p 09/29/00 SWP 10/03/00 CJS 10/03/00 SWP 10/21/00 Estate of Dissolution Reviewed proposed partnership consent document. Reviewed proposed partnership consent document, telephone conference with Attorney Mark Bradshaw for Phelaro, Inc. E-mailed agreement to Mr. Bradshaw for his review. Discussions with SWP and LRG regarding Phelaro, Inc. agreement. Telephone call from Mark Bradshaw. Edited agreement. Telephone call to attorney Rogers and fax of agreement to attorney Rogers. LRG Office conference with Marie Magaro to review and sign Variety Investments stock distribution agreement for Phelaro, Inc. 0.40 @ 135.00/hr 54.00 0.50 @ 135.00/hr 67.50 0.30 @ 100.00/hr 30.00 0.50 @ 135.00/hr 67.50 0.70 @ 160.00/hr 112.00 Page 9 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution common stock. 10/26/00 LRG Reviewed file regarding Phelaro, Inc. stock distribution, and correspondence to opposing counsel. 0.40 Subtotal professional fees: @ 160.00/hr 64.00 $ 3,730.50 Total current billing: $ 3,730.50 05/02/00 05/18/00 No. 12754 Prior payments/credits No. 13022 Prior payments/credits Previous balance: 1,480.32 ( 1,007.74) 472.58 916.49 ( 0.00) 916.49 $ 1,389.07 1,389.07 Total now due: 5,119.57 Hold Account C: 16,733.17 Current Over 30 Over 60 Over 90 3730.50 0.00 0.00 1389.07 GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 Variety Investments Dissolution Statement Date December 22, 2000 Period Ending November 30, 2000 Statement No. 14524 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of i 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 11/21/00 LRG Telephone call 0.30 @ 160.00/hr 48.00 from Attorney Mark Bradshaw regarding Richard Phelan lawsuit and preacipe to discontinue. 11/21/00 MEH Conference 0.50 @ 155.00/hr 77.50 with LRG re: discontinuance of litigation against Richard Phelan and related companies. 11/27/00 MEH Reviewed files and drafted praecipe to discontinue litigation against Phelaro companies; 1.00 @ 155.00/hr 155.00 Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution to Atty. Kit 11/27/00 LRG 11/28/00 MEH Telephone conference with Attorney Mark Bradshaw regarding discontinuance of Phelan litigation. Correspondence to Atty. Kit Conner and Atty. Mark Bradshaw; memo to LRG. Subtotal professional fees: 0.20 @ !60.00/hr 32.00 0.30 @ 155.00/hr 46.50 $ 359.00 Disbursements 11/09/00 11/09/00 Long distance charges. Long distance charges. Subtotal disbursements: 0.13 0.26 $ 0.39 Total current billing: Payments Received 12/01/00 Transfer to CTC Trust Account: interest earned thru 11/30/00. $ 359.39 35.73 $ ( 0.00) 05/02/00 05/18/00 11/02/00 NO. 12754 1,480.32 Prior payments/credits ( 1,007.74) No. 13022 916.49 Prior payments/credits ( 0.00) NO. 13246 3,730.50 472.58 916.49 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution Prior payments/credits Previous balance: 0.00) 3,730.50 $ 5,119.57 5,119.57 Total now due: 5,478.96 Hold Account C: 16,806.35 Current Over 30 Over 60 Over 90 359.39 3730.50 0.00 1389.07 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite %100 Lemoyne, PA 17043-1218 (717} 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of o/o Marie K. McAndrew, Administratrix P.O. Bo× 666 Wellsboro, PA 16901 Variety Investments Dissolution Statement Date July 31, 2001 Period Ending July 31, 2001 Invoice No. 15065 MAGDAV-VARINV PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of i 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 07/26/01 LRG Telephone call from Doug Smith regarding promissory note. Subtotal Professional Fees: $ 48.00 Total Current Billing: $ 48.00 Previous Balance: 5,478.96 $ 5,478.96 TOTAL NOW DUE: $ 5,526.96 Page 2 Magaro, David W., Estate of Variety Investments Dissolution Hold Account C: 16,957.68 Current Over 30 48.00 0.00 Over 60 Over 90 Over 120 0.00 0.00 5478.96 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix ~.O. Box 666 Wellsboro, PA 16901 Variety Investments Dissolution Invoice Date November 9, 2001 Period Ending October 31, 2001 Invoice No. 16946 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: A~erican Express, Discover, Mastercard & Visa. Professional Fees: 10/03/01 10/09/01 ANP Telephone call from Doug Smith regarding satisfaction piece. ANp Prepared Mortgage Satisfaction for filing regarding Doug Smith. 0.20 @ 100.O0/hr 20.00 1.00 @ 100.00/hr 100.00 10/09/01 LRG Telephone call from Doug Smith regarding satisfaction; inter-office conference with Attorney Peterlin regarding satisfaction 0.50 @ 160.00/hr 80.00 GATES & ASSOCIATES, P.C. Page 2 Magaro, David W., Estate of Variety Investments Dissolution of the Douglas Smith Promissory Note. 10/15/01 ANP Received copy of satisfaction piece filed for Doug Smith. 0.20 @ 100.00/hr 20.00 Subtotal Professional Fees: $ 220.00 Disbursements: 10/09/01 10/09/01 10/10/01 10/10/01 Long distance charges. Long distance charges. Postage. Recording fees - / Cumberland County Recorder of Deeds Subtotal disbursements: 0.13 0.13 2.28 17.50 20.04 Total current billing: $ 240.04 05/02/00 05/18/00 11/02/00 12/22/00 07/31/01 No. 12754 1,480.32 Prior payments/credits ( 1,007.74) 472.58 No. 13022 916.49 Prior payments/credits ( 0.00) 916.49 No. 13246 3,730.50 Prior payments/credits ( 0.00) 3,730.50 No. 14524 359.39 Prior payments/credits ( 0.00) 359.39 No. 15065 48.00 Prior payments/credits ( 0.00) 48.00 Previous balance: $ 5,526.96 5,526.96 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution TOTAL NOW DUE.. Page 3 $ 5,767.00 Hold Account C: 16,965.30 Current Over 30 Over 60 Over 90 240.04 0.00 0.00 5526.96 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM GATES, HALBRUNER & HATCH, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #30-0000518 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Variety Investments Dissolution Invoice Date February 11, 2002 Period Ending January 31, 2002 Invoice No. 17727 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment:: American Express, Discover, Mastercard & Visa. Professional Fees: 01/23/02 LRG Reviewed correspondence from IRS regarding partnership income taxes due for calendar year 1998. 0.40 @ 160.00/hr 64.00 Disbursements: 01/02/02 01/16/02 01/23/02 01/23/02 01/30/02 01/30/02 Subtotal Professional Fees: Long distance charges. Long distance charges. Long distance charges. Long distance charges. Long distance charges. Long distance charges. $ 64.00 2.21 2.73 0.39 0.13 0.13 0.52 GATES, HALBRUNER & HATCH, P.C. Page 2 Magaro, David W., Estate of Variety Investments Dissolution Subtotal disbursements: 6.11 Total current billing: $ 70.11 05/02/00 05/18/00 11/02/00 12/22/00 07/31/01 11/09/01 No. 12754 Prior payments/credits No. 13022 Prior payments/credits No. 13246 Prior payments/credits No. 14524 Prior payments/credits No. 15065 Prior payments/credits No. 16946 Prior payments/credits Previous balance: 1,480.32 1,007.74 472.58 916.49 0.00 916.49 3,730.50 0.00 3,730.50 359.39 0.00 359.39 48.00 0.00 48.00 240.04 0.00' 240.04 $ 5,767.00 $ 5,767.00 TOTAL NOW DUE: 5,837.11 Trust account balance 16,898.95 Current 70.11 Over 30 Over 60 Over 90 0.00 0.00 5767.00 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 STATEMENT Tina M. Mestlin Litigation Statement Date June 12, 2000 Period Ending May 31, 2000 Reference No. 13245 Professional Fees 05/17/00 MEH 05/18/00 MEH 05/19/00 MEH 05/22/00 M~H 05/23/00 MEH PAYMENT DUE UPON RECEIPT OF STATEMENT Telephone call to Atty. Wineka. Memo to file. Telephone call from Jill Wineka. Drafted brief in support of objections. Drafted brief in support of exceptions. Correspondence to court administrator. Inter-office conference with TLS. Correspondence to Atty. Lisa Coyne. Drafted brief in opposition to Mestlin's exceptions. Reviewed brief from Atty. Wineka. Drafted reply brief. 0.20 @ 155/hr 2.50 @ 155/hr 2.50 @ 155/hr 1.50 @ 155/hr 2.50 @ 155/hr 31.00 387.50 387.50 232.50 387.50 Page 2 GATES& ASSOCIATES, P.C. Magaro, David W., Estate of Tina M. Mestlin Litigation 05/24/00 MEH Drafted brief opposing Mestlin's exceptions. 05/25/00 MEH Correspondence to Cumberland County Court Administration. Inter-office conference with TLS. 05/30/00 MEH 05/31/00 MEH Inter-office conference with TLS regarding argument on exceptions. Reviewed reply brief from Atty. Wineka. 1.00 0.30 0.20 0.40 @ 155/hr 155.00 @ 155/hr 46.50 @ 155/hr 31.00 @ 155/hr 62.00 Subtotal professional fees: 1,720.50 Disbursements 05/25/99 05/18/00 05/19/00 05/19/00 o5/19/oo 05/19/00 05/22/00 05/25/00 05/30/00 CD Mileage - travel to Cumberland Co. Courthouse to file documents. CD Long distance charges. CD Postage. CD Postage. CD Postage. CD Postage. CD Postage. CD Postage. CD Long distance charges. Subtotal disbursements: 22.00 7.15 1.00 0.13 3.00 1.65 1.00 0.77 2.00 1.10 3.00 2.31 4.00 1.32 4.00 3.08 1.00 0.13 17.64 Total current billing: 1,738.14 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Tina M. Mestlin Litigation Payments Received 05/25/00 Payment Received - (#242) Thank You. ( 2,215.81) ( 2,215.81) 05/18/00 No. 12486 Prior payments/credits Previous balance: 2,215.81 ( 0.00) 2,215.81 2,215.81 0.00 Total now due: 1,738.14 Current 1738.14 Over 30 Over 60 Over 90 0.00 0.00 0..00 Ail overdue accounts will be assessed finance charges of 1 1/2% per month. WE NOW ACCEPT THE FOLLOWING CREDIT CARDS FOR PAYMENT: AMERICAN EXPRESS, DISCOVER, VISA & MASTERCARD. PLEASE CALL THE OFFICE FOR DETAILS. GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O~ Box 188 Gaines, PA 16921 STATEMENT Tina M. Mestlin Litigation Statement Date February 16, 2001 Period Ending January 31, 2001 MAGDAV-TINMME Invoice No. 13493 PAYMENT DUE UPON RECEIPT OF STATEMENT. All overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: ~erican Express, Discover, Mastercard & Visa. Professional Fees 01/02/01 MEH 01/02/01 LRG 01/02/01 LRG 01/08/01 MEH Reviewed order and opinion from Judges Hoffer and Hess re: exceptions to initial decision on First and Partial Account. Reviewed Order from Orphans' Court Judges Hoffer and Hess regarding decision on partial accounting. Inter-office conference with Attorney Halbruner to review and discuss Orphans' Court Order. Legal research regarding appealability of order on partial account; drafted notice of appeal and reviewed court rules re: appeal procedure; correspondence to Marie McAndrew. 01/09/01 MEH Telephone call from Marie Magaro, David W., Estate of Tina M. Mestlin Litigation McAndrew; reviewed correspondence from Atty. Jill Wineka; reviewed recent amendments to appellate rules. Ol/lO/01 01/12/01 MEH MEH Correspondence to Atty. Jill Wineka; conference with TLS re: obtaining docket entry printout for notice of appeal. Reviewed docket entry printout from Orphans' Court Clerk; prepared Notice of Appeal; correspondence to Orphans' Court Clerk. 01/12/01 01/25/01 01/31/01 TLS Traveled to Cunfoerland County Register of Wills Office and obtained certified copy of Estate docket for Notice of Appeal. Reviewed correspondence from Superior Court re: appeal. MEH Drafted statement of issues presented on appeal. Page 2 Subtotal professional fees: $ 90.3.00 Costs/Disbursements 01/08/01 01/10/01 01/11/01 01/12/01 01/12/01 01/12/01 01/12/01 01/12/01 01/12/01 01/19/01 Postage. Postage. Court Costs - Cumberland Co. Register of Wills. Mileage - travel to Cumberland Co. Courthouse to pick up certified copy of docket. Parking. Postage. Postage. Long distance charges. Court Costs - Cumberland Co. Register of Wills. Court Costs - Superior Court of PA. 0.76 1.02 8.00 7.24 0 · 10 3.85 0.97 0.39 7!5.00 5 !5. O0 Subtotal costs/disbursements $ 152.33 Page 3 Magaro, David W., Estate of Tina M. Mestlin Litigation Total Current Billing: $ 1,055.33 Previous Balance: 1,738.14 1,738.14 TOTAL NOW DUE: 2,793.47 Current Over 30 ,Over 60 Over 90 1055.33 0.00 0.00 1738.14 GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 Tina M. Mestlin Litigation Statement Date April 5, 2001 Period Ending March 31, 2001 Invoice No. 15355 MAGDAV-TINMME PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 02/01/01 MEH 02/02/01 MEH 02/07/01 MEH 02/27/01 MEH 03/01/01 MEH 03/09/01 MEH Telephone call to Superior Court Prothonotary; correspondence to Reviewed correspondence from Superior Court; prepared civil docketing statement for appeal. Prepared Superior Court docketing statement and proof of service; correspondence to Superior Court. Drafted Designation of Contents of Reproduced Record and Statement of Issues Presented on Appeal; began preparing Reproduced Record and began araz=~ng Superior Cour~ Brief. Correspondence to Superior Court. Reviewed correspondence and Magaro, David W., Estate of Tina M. Mestlin Litigation counter-designation of reproduced record contents from Atty. Jill Wineka; drafted reproduced record. 03/26/01 MEH Prepared Reproduced Record; legal research; drafted Superior Court Brief. 03/27/01 MEH 03/28/01 03/29/01 Prepared Reproduced Record and instructed JMA re: duplication and binding. ~fEH Drafted Superior Court brief. M~H Drafted, reviewed and revised brief; conference with JMA re: duplication and binding of brief. Page 2 Subtotal professional fees: $ 3,053.50 Costs/Disbursements 02/01/01 Postage. Subtotal costs/disbursements L.36 $ :1.36 Total Current Billing: $ 3,054.86 Previous Balance: 2,792).47 $ 2,793.47 TOTAL NOW DUE: 5,848.33 Current 3054.86 Over 30 1055.33 Over 60 Over 90 0.00 1738.14 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix D.O~ Box 666 Wellsboro, PA 16901 Tina M. Mestlin Litigation Statement Date May 4, 2001 Period Ending April 30, 2001 Invoice No. 15993 MAGDAV-TINFAHE PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 04/02/01 MEH Filed brief and reproduced record at Superior Court Prothonotary; correspondence to Atty. Jill Wineka. 04/04/01 MEM 04/12/01 04/25/01 Reviewed notice from Superior Court re: argument on appeal; correspondence to Superior Court Prothonotary. MEH Telephone call from Marie Magaro. MEH Reviewed correspondence from Atty. Michael Bangs and Atty. Lisa Coyne. Subtotal Professional Fees: $ 186.00 Page 2 Magaro, David W., Estate of Tina M. Mestlin Litigation Costs/Disbursements: 04/02/01 04/06/01 Postage - brief. / U.S. Postal 21.01 Service Photocopying brief. / Gancom 419.22 Subtotal Costs/Disbursements: $ 440.23 Total Current Billing: $ 626.23 Previous Balance: 5,848.33 $ 5,848.33 TOTAL NOW DUE: $ 6,474.56 Current Over 30 Over 60 Over 90 Over 120 3681.09 0.00 1055.33 0.00 1738.14 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Tina M. Mestlin Litigation Statement Date June 8, 2001 Period Ending May 31, 2001 Invoice No. 16217 MAGDAV-TINMME PAYMENT DUE UPON RECEIPT OF STATEMENT. All overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 05/09/01 MEH Reviewed correspondence and brief from Atty. Jill Wineka; correspondence to Marie Magaro. Subtotal Professional Fees: $ 201.50 Costs/Disbursements: 05/09/01 Postage. Subtotal Costs/Disbursements: $ 1.60 1.60 Total Current Billing: 203.10 Previous Balance: 6,474.56 $ 6,474.56 Page 2 Magaro, David W., Estate of Tina M. Mestlin Litigation TOTAL NOW DUE: $ 6,677.66 Current Over 30 Over 60 Over 90 Over 120 203.10 626.23 3054.86 1055.33 1738.14 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P=O. Box 666 Wellsboro, PA 16901 Tina M. Mestlin Litigation Statement Date July 31, 2001 Period Ending July 31, 2001 Invoice No. 16469 MAGDAV-TINMME PAYMENT DUE UPON RECEIPT OF STATEMENT. All overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 07/31/01 MEH Reviewed notice from Superior Court re: argument date; memo to file re: same; correspondence to Marie Magaro. Subtotal Professional Fees: $ 46.50 Total Current Billing: $ 46.50 Previous Balance: 6,677.66 $ 6,677.66 TOTAL NOW DUE: $ 6,724.16 Page 2 Magaro, David W., Estate of Tina M. Mestlin Litigation Current Over 30 Over 60 ¢~er 90 Over 120 46.50 203.10 626.23 3054.86 2793.47 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite %100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P~O~ Box 666 Wellsboro, PA 16901 Tina M. Mestlin Litigation Invoice Date November 8, 2001 Period Ending October 31, 2001 Invoice No. 16945 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 10/16/01 MEN Reviewed 4.50 @ 155.00/hr 697.50 briefs, updated legal research and prepared for oral argument on appeal to Superior Court; telephone call from Marie Magaro. 10/17/01 MEN Prepared for 2.00 @ 155.00/hr 310.00 and presented oral argument at Superior Court. Subtotal Professional Fees: $ 1,007.50 GATES & ASSOCIATES, P.C. Page 2 Magaro, David W., Estate of Tina M. Mestlin Litigation Disbursements: 10/05/01 Court Costs - / Supeme Court of 10.00 Pennsylvania Subtotal disbursements: $ 10.00 Total current billing: $ 1,017.50 06/12/00 02/16/01 04/05/01 05/04/01 06/08/01 07/31/01 No. 13245 Prior payments/credits No. 13493 Prior payments/credits No. 15355 Prior payments/credits No. 15993 Prior payments/credits No. 16217 Prior payments/credits No. 16469 Prior payments/credits Previous balance: 1,738.14 0.00) 1,738.14 1,055.33 0.00) 1,055.33 3,054.86 0.00) 3,054.86 626.23 0.00) 626.23 203.10 0.00) 203.10 46.50 0.00) 46.50 $ 6,724.16 6,724.16 TOTAL NOW DUE: 7,741.66 Current Over 30 Over 60 Over 90 1017.50 0.00 0.00 6724.16 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM GATES, HALBRUNER & HATCH, P.C. 1013 Mumma Road Suite %100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. %30-0000518 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Tina M. Mestlin Litigation Invoice Date December 31, 2001 Period Ending December 31, 2001 Invoice No. 17542 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment:: American Express, Discover, Mastercard & Visa. Professional Fees: 12/12/01 MEH Reviewed 0.20 @ 155.00/hr 31.00 opinion and order from Superior Court. 12/14/01 MEH Legal research 0.80 @ 155.00/hr 124.00 regarding motion for reconsideratio n; conference with LRG; correspondence to Marie Magaro. 12/17/01 MEH Telephone call from Marie Magaro. 0.30 @ 155.00/hr 46.50 Subtotal Professional Fees: $ 201.50 Page 2 GATES, HALBRUNER & HATCH, P.C. Magaro, David W., Estate of Tina M. Mestlin Litigation Disbursements: 12/14/01 12/17/01 Postage. Long distance charges. Subtotal disbursements: 0.57 0.26 $ 0.83 Total current billing: $ 202.33 06/12/00 02/16/01 04/05/01 05/04/01 06/08/01 07/31/01 11/08/01 No. 13245 Prior payments/credits No. 13493 Prior payments/credits No. 15355 Prior payments/credits No. 15993 Prior payments/credits No. 16217 Prior payments/credits No. 16469 Prior payments/credits No. 16945 Prior payments/credits Previous balance: 1,738.14 0.00 1,738.14 1,055.33 0.00 1,055.33 3,054.86 0.00 3,054.86 626.23 0.00 626.23 203.10 0.00 203.10 46.50 0.00 46.50 1,017.50 0.00' 1,017.50 $ 7,741.66 $ 7,741.66 TOTAL NOW DUE: 7,943.99 Current Over 30 Over 60 Over 90 202.33 1017.50 0.00 6724.16 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM GATES, HALBRUNER & HATCH, P.C. 1013 Mumma Road Suite %100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #30-0000518 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Adminis~t~i× P.O. Box 666 Wellsboro, PA 16901 Tina M. Mestlin Litigation Invoice Date February 11, 2002 Period Ending January 31, 2002 Invoice No. 18227 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 01/19/02 MEN Reviewed file 0.70 @ 155.00/hr 108.50 re: First and Partial Accounting in order to respond to title objection. 01/21/02 LRG Reviewed file; 1.50 @ 160.00/hr 240.00 reviewed Orphans' Court documents related to Stumpstown Road distribution and partial accounting; inter-office conference with Attorney Halbruner regarding GATES, HALBRUNER & HATCH, P.C. Page 2 Magaro, David W., Estate of Tina M. Mestlin Litigation accounting; telephone conference with Attorney David Getz regarding his title objections involving the estate distribution. 01/21/02 01/21/02 MEH Conference with LRG to review title objection re: objections to First and Partial Account; telephone call to Atty. David Getz re: same; prepared documents for review by Atty. Getz; correspondence to Atty. Getz. LRG Reviewed correspondence and related documents by Attorney Halbruner to Attorney David Getz. 01/21/02 LRG Reviewed correspondence to Attorney Getz; reviewed numerous court documents related to the distribution and sale of Stumpstown Road property. 2.60 @ 155.00/hr 403.00 0.50 @ 160.00/hr 80.00 0.50 @ 160.00/hr 80.00 GATES, HALBRUNER & HATCH, P.C. Page 3 Magaro, David W., Estate of Tina M. Mestlin Litigation 01/25/02 MEH Conference with LRG re: resolving title objections to pending litigation over First and Partial Account; reviewed file; correspondence to Atty. David Getz itemizing sums which are to be reimbursed to estate; conference with LnG after return from settlement; telephone call to Atty. Jill Wineka. 01/25/02 01/28/02 LnG Preparation of calculations for various reimbursements due to Tina Mestlin's objections to Partial Account which impair distribution of Stumpstown Road property. MEH Reviewed interim Orphans' Court opinion; conference with LnG re: resolving title objections concerning account 2.50 @ 155.00/hr 387.50 0.80 @ 160.00/hr 128.00 1.50 @ 155.00/hr 232.50 GATES, HALBRUNER & HATCH, P.C. Page 4 Magaro, David W., Estate of Tina M. Mestlin Litigation litigation; legal research re: administrator' ~ power to distribute real property prior to account confirmation; reviewed correspondence to Atty. David Getz. 01/28/02 LRG Preparation of revised Federal Estate Tax calculations based on Tina Mestlin's possible claims under her Objections; revised calculations on Pennsylvania inheritance tax; preparation of corresondence to David Getz explaining possible tax increases and escrow of funds. 01/29/02 LRG Tax research regarding IRS Estate Tax Closing letters and re-opening federal estate tax audits by IRS after issuance of 2.00 @ 160.00/hr 320.00 0.50 @ 160.00/hr 80.00 GATES, HALBRUNER & HATCH, P.C. Page 5 Magaro, David W., Estate of Tina M. Mestlin Litigation Closing letter. Subtotal Professional Fees: $ 2,059.50 Total current billing: $ 2,059.50 06/12/00 02/16/01 04/05/01 05/04/01 06/08/01 07/31/01 11/08/01 12/31/01 No. 13245 Prior payments/credits No. 13493 Prior payments/credits No. 15355 Prior payments/credits No. 15993 Prior payments/credits No. 16217 Prior payments/credits No. 16469 Prior payments/credits No. 16945 Prior payments/credits No. 17542 Prior payments/credits Previous balance: 1,738.14 0.00 1,738.14 1,055.33 0.00 1,055.33 3,054.86 0.00 3,054.86 626.23 0.00 626.23 203.10 0.00 203.10 46.50 0.00 48.50 1,017.50 0.00 1,017.50 202.33 0.00 202.33 $ 7,943.99 $ 7,943.99 TOTAL NOW DUE: 10,003.49 Current Over 30 Over 60 Over 90 2059.50 202.33 0.00 7741.66 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM Gates, Halbruner & Hatch, P.C. 1013 Murara Road Suke # 100 Lermyne, PA 17043 (717) 731-9600 Federal I.D. #03-0379998 INVOICE Magam, David W., Estate of o/o Marie K. MeAndrew, Administratrkx P.O. Box666 Weilst~oro, PA 16901 Tina M. Mestlin Litigation Invoice Date May 6, 2002 Period Ending April 30, 2002 Invoice No. 20101 PAYMENT DUE UPON RECEIPT OF STATEMElxlT All overdue accounts will be assessed finance charges of 1.5% per rvonth. We now accept the follow~g credit cards for payn-ent: An~rican Express, Discover, Mastercard & Visa. Professional Fees 4/15/2002 MEH REVIEWED RECENT SUPERIOR COURT DECISION RE: APPEALABILITY OF ESTATE ADMINISTRATION AND ACCOUNTING ISSUES. 0.20 ~ 155.00/hr 31.00 Sub-totalFees: 31.00 Total Current l~fllJng: 31.00 t~vious Balance Due: 10,003.49 Total NowDue: 10,034.49 Current Over 30 Over 60 Over 90 31.00 0.00 2,059.50 7,943.99 PLEASESEND ALLPAYIVgI~ITS ANDCORRE~PONDI/qCETOOURLI1VIOYNEADDRI~$. V~ITOL~WI~$1TEAT WWW. GATES LAWFIRIVICOM CERTIFICATE OF SERVICE I, Cory J. Snook, Esquire, of the law finn of Gates, Haibnmer & Hatch, P.C., hereby certify that I served a true and correct copy of the foregoing document on this date by first-class U.S. mail, postage prepaid, to the following: Ronald M. Katzman, Esquire Goldberg, Katzman & Shipman, P.C. 320 Market Street, Strawberry Square P.O. Box 1268 Harrisburg, PA 17108-1268 (Attorney for Plaintiff) Col~. S~l~5~)k, Esqul~"re Supreme Court I.D. #85734 1013 Mumma Road, Suite 100 Lemoyne, PA 17043 (717) 731-9600 (Attorney fi~r Defendants) Date: July 7, 2003 MARIE K. MAGARO, administatrix c.t.a.: IN THE COURT OF COMMON PLEAS OF of the Estate of David W. Magaro, : CUMBERLAND COUNTY, PENNSYLVANIA deceased, PLAINTIFF LOWELL GATES and GATES, HALBRUNER & HATCH, P.C., DEFENDANTS : 03-2979 EQUITY TERM AND NOW, this ORDER OF COURT ~ .day of July, 2003, after review of the petition for a preliminary injunction and the answer filed in response to the Rule to show cause issued against defendants, a hearing shall be conducted in Courtroom Number 2, Cumberland County Courthouse, Carlisle, Pennsylvania at 1:30 p.m., Wednesday, July 23,2003. Ronald M. Katzman, Esquire For Plaintiff Cory J. Snook, Esquire For Defendants Edgar B. Bayley,'-J'~. / :sal 03 JUL ~.~ ~,i~ '¥ ~ MARIE IC MAGARO, Administratrix, c.t.a, of the Estate of David W. Magaro, Deceased, Plaintiff VS. LOWELL GATES and GATES, HALBRUNER & HATCH, P.C., Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS COURT DIVISION (No. 21-95-844) CIVIL ACTION - EQUITY NO. 03-2979 EQUITY NOTICE TO PLEAD TO: Marie lC Magaro, Administratrix, c.t.a, of the Estate of David W. Magaro, Deceased You are hereby notified to file a written response to the enclosed Answer with New Matter and Counterclaim within twenty (20) days from service hereof or a judgment may be entered against you. GATES, HALBRUNER & HATCH, P.C. Respectfully submitted, Supreme Court I.D. #85734 1013 Mumma Road, Suite 100 Lemoyne, PA 17043 (717) 731-9600 (Attorney for Defendants) Date: July 16, 2003 MARIE K. MAGARO, Administratrlx, c.t.a, of the Estate of David W. Magaro, Deceased, Plaintiff VS. LOWELL GATES and GATES, HALBRUNER & HATCH, P.C., Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS COURT DIVISION (No. 21-95-844) CIVIL ACTION - EQUITY NO. 03-2979 EQUITY ANSWER WITH NEW MATTER AND COUNTERCLAIM AND NOW, come Defendants, Lowell R. Gates, Esq. and Gates, Halbruner & Hatch, P.C., by and through their undersigned counsel, and respectfully set forth this Answer to Plaintiff's Complaint: ANSWER 1. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the matter averred, and strict proof thereof is demanded. 2. Admitted. 3. Admitted. 4. Admitted. 5. Admitted. 6. Denied as stated. Plaintiffretained the legal services of Lowell R. Gates, P.C. on or about December 1, 1995. Lowell R. Gates, P.C. was subsequently renamed Gates & 11. 12. 13. Associates, P.C. Gates, Halbruner & Hatch, P.C. was formed as a new professional corporation on December 21, 2001. Admitted. Admitted in part, and denied in part. It is admitted that the estate administration is not yet completed. Defendants deny the implication that the status of the estate is their fault. This estate is inextricably intertwined with the estate of David W. Magaro's father, William G. Magaro, which was opened in 1990, and which remains the subject of litigation and is still incomplete after thirteen (13) years. By way of further answer, the Estate of David W. Magaro has been the subject of numerous litigation matters which have been resolved by Defendants in favor of Plaintiff. Admitted. Denied. From Defendants' perspective, the relationship between Magaro and Defendants was not strained until Magaro initiated her lawsuit against Defendants in January 2003. Admitted. Admitted in part, and denied in part. It is admitted that Plaintiff and Defendants have had little communication for the time period stated. Defendants deny the implication that the absence of communication is their fault. The absence of communication is due to the litigation by Plaintiff referenced in Paragraph 11 of Plaintiff's Complaint. Denied as stated. The letters referenced by Plaintiff are documents which speak for -2- themselves. Furthermore, Plaintiff was previously provided with copies of the requested documents and information when the tax returns were filed. 14. Denied as stated. Plaintiff was previously provided with copies of the requested documents and information when they were filed. 15. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the troth of the matter averred, and strict proof thereof is demanded. 16. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the troth of the matter averred, and strict proof thereof is demanded. To the extent that any Stares Report was not timely filed, the fights of Plaintiff and other parties interested in the estate were not prejudiced. 17. Denied as stated. The letter referenced by Plaintiff is a document which speaks for itself. 18. Denied as stated. The letter referenced by Plaintiff is a document which speaks for itself. 19. Denied as stated. The letter referenced by Plaintiff is a document which speaks for itself. By way of further answer, Defendants hereby assert their right to an attorneys' retaining lien against the files currently in Defendants' possession. 20. Denied. Throughout the course of the attorney-client relationship between Plaintiff and Defendants, Plaintiff was provided with timely, itemized and periodic billing -3- 21. 22. statements describing the services provided and expenses incurred. In addition, Plaintiffreceived a copy of the written fee agreement at the inception of the attorney- client relationship. However, a true and correct copy of the fee letter and agreement between Plaintiff and Lowell R. Gates, P.C. is attached hereto and incorporated by reference as Exhibit A. In addition, a complete and itemized list of outstanding and unpaid legal services provided and the fees charged therefore, plus expenses incurred by Defendants, is attached hereto and incorporated by reference as Exhibit B. In addition to the outstanding legal fees and expenses related to the Estate of David W. Magaro, Plaintiff personally owes an outstanding total of $14,191.26, to date, for services rendered and expenses incurred by Defendants in Plaintiffs personal matters. Denied as stated. The letter referenced by Plaiutiffis a document which speaks for itself. Denied. The bills are not unsubstantiated because throughout the course of the attorney-client relationship between Plaintiffand Defendants, Plaintiffwas provided with timely, itemized and periodic billing statements evidencing the services provided and expenses incurred by Defendants. Defendants are entitled to payment for legal services rendered, and Defendants are entitled to enforce a retaining lien against the estate file until their outstanding invoices have been paid. Defendants should not be compelled to walt for a final account since it will not be filed on this estate for quite some time due to pending litigation with the William Magaro estate and other third parties. Further, Defendants are unable to prepare a Second and Partial Account and Proposed Distribution of the estate due to the breakdown in communication between Plaintiff and Defendants and because Plaintiff has sole possession of the checking account, investment account and other information needed to prepare such an account. 23. Paragraph 23 is a conclusion of law to which no response is required. To the extent a response is required, Plaintiffhas received from Defendants, throughout the course of the attorney-client relationship, copies of estate correspondence, tax returns and other documents, which should enable her to continue with the estate administration. 24. Paragraph 24 is a conclusion of law to which no response is required. To the extent a response is required, Plaintiff has received from Defendants, throughout the course of the attorney-client relationship, copies of estate correspondence, tax returns and other documents, which should enable her to continue with the estate administration. WItEREFORE Defendants respectfully request that the Court deny Plaintiff's Motion for Preliminary Injunction, along with all other relief requested by Plaintiff. NEW MATTER 25. Paragraphs 1 through 24 are hereby incorporated by reference as though more fully set forth herein. 26. Plaintiff consented to the legal fees charged in that she signed the fee agreement -5- referenced above and attached hereto as Exhibit A, and made periodic payments throughout the course of the attorney-client relationship between Plaintiff and Defendants. 27. Plaintiff established a pattern of making lump sum payments on her legal fees every few months. 28. Plaintiff last made substantial payments on her legal fee bills in May of 2000. 29. Because of the nature of Plaintiffs payment history, Defendants did not become concerned about Plaintiff's non-payment of legal fees until late in the year 2000 and early 2001. 30. Nevertheless, and in reliance on Plaintiff's prior course of conduct, Defendants continued to perform legal work for the Plaintiff until early in the year 2003. 31. In Defendants opinion, the relationship between Plaintiff and Defendants did not break down until Plaintiff filed a lawsuit against Defendants in January, 2003. 32. Defendants had regular contact with Plaintiffup until the time Plaintiff initiated her lawsuit. 33. By letter dated June 10, 2003, Defendants notified Plaintiff's new counsel of the various matters involving the estate and the outstanding fees owed on each matter. A tree and correct copy of that letter is attached hereto and incorporated by reference as Exhibit C. 34. Plaintiff was provided with periodic statements of legal services performed for each -6- matter involving the Estate of David W. Magaro throughout the course of the representation. 35. Plaintiff was provided with copies of all relevant filings, documents and correspondence for the Estate of David W. Magaro when same were produced. 36. Defendants are justified in retaining the file and documents requested by Plaintiff until she pays her legal fees in full. 37. The Estate of David W. Magaro is extremely complex, and is the subject of much litigation and controversy. 38. The Estate of David W. Magaro will not be completed for quite some time, no matter who the attorney of record is for the estate. 39. Defendants would be unavoidable harmed if forced to wait for a final acoounting before receiving payment for their attorneys' fees. 40. Defendants would be unavoidably harmed if forced to relinquish the documents and file requested by Plaintiff without first obtaining payment for the legal services performed by Defendants. WHEREFORE Defendants respectfully request that the Court deny Plaintiff's Motion for Preliminary Injunction, along with all other relief requested by Plaintiff. -7- COUNTERCLAIM COUNT I. ATTORNEYS' RETAINING LIEN 41. Paragraphs 1 through 40 are hereby incorporated by reference as though more fully set forth herein. 42. Plaintiff, as administratrix, c.t.a., engaged Defendants to perform numerous and various legal services as evidenced by the fee letter hereby incorporated by reference as Exhibit A. 43. Plaintiff paid her legal fees through numerous probate and estate litigation matters for approximately the first five (5) years of the attorney - client relationship. 44. Defendants continued to perform legal services for Plaintiff in reliance on Plaintiff's prior course of conduct, as evidenced by the billing statements attached hereto and incorporated by reference as Exhibit B. 45. Plaintiff has not paid for the legal services in the amount of $28,696.26, as outlined in Exhibit B. 46. Plaintiff discharged Defendants as attorneys for the Estate of David W. Magaro by letter dated May 28, 2003. 47. Plaintiff, by and through her new counsel, Goldberg, Katzman and Shipman, requested certain documents concerning the Estate of David W. Magaro. 48. Defendants hereby assert their right to retain the documents requested, through an attorney's retaining lien, until their legal fees are paid in full as evidenced by the statements in Exhibit B. 49. Due to the numerous litigation matters and other controversies and outstanding issues involved in the administration of the estate of David W. Magaro, the file in the possession of Defendants is quite voluminous. 50. Defendants will have to spend numerous hours and incur substantial costs in preparing the file for transfer to Plaintiff's new counsel. WHEREFORE, Defendants respectfully request that the Court order Plaintiff to tender payment for the legal services performed by Defendants, along with the costs and fees required to transfer the file, as well as any and all other relief which the Court deems appropriate. COUNT II. BREACH OF CONTRACT 51. Paragraphs 1 through 50 are hereby incorporated by reference as though more fully set forth herein. 52. Plaintiff signed a fee contract with Defendant on or about December 1, 1995, wherein Plaintiff agreed to terms and conditions set forth therein. A tree and correct copy of the fee agreement, dated November 29, 1995, is attached hereto and incorporated by reference as Exhibit A. 53. Plaintiff fulfilled her obligations under the contract for approximately four and one- half (4 ½) years. -9- 54. Plaintiff has a duty to continue fulfilling her obligations under the contract. 55. Plalntiffhas a duty to pay for the legal services performed on behalf of the Estate of David W. Magaro. 56. Plaintiffhas not paid for legal services provided to the estate since the estate's last payment in May, 2000. 57. Plaintiff, as administratrix, c.t.a, of the Estate of David W. Magaro, has incurred substantial and unpaid legal fees in the amount of $28,696.26 on behalf of the estate. Said outstanding fees are set forth in Exhibit B, incorporated herein and made an integral part hereof. 58. Based on the Federal Estate Tax Return, the Estate of David W. Magaro was valued at approximately $3.0 Million. 59. In addition, based on the successful outcome of several litigation matters prosecuted by Defendants, the Estate's value was increased to an amount in excess of $3.5 Million. 60. Plaintiff has breached the fee agreement by refusing to pay for the legal fees incurred on behalf of the estate. 61. Defendants would be irreparably harmed if payment is not made. WltEREFORE, Defendants respectfully request that the Court order Plaintiff to tender payment for the legal services performed by Defendants, along with the costs and fees required to transfer the file, as well as any and all other relief which the Court deems appropriate. -10- WHEREFORE, Defendants respectfully request that the Court order Plaintiff to tender payment for the legal services performed by Defendants, along with the costs and fees required to transfer the file, as well as any and all other relief which the Court deems appropriate. COUNT IV. OUANTUM MERUIT 70. Paragraphs 1 through 69 are hereby incorporated by reference as though more fully set forth herein. 71. Defendants performed legal services for Plaintiff as more fully set forth herein and as evidenced by the itemized statements attached hereto as Exhibit B. 72. Plaintiff wrongfully secured or passively received a benefit from the services performed by Defendants. 73. Based on the Federal Estate Tax Return, the Estate of David W. Magaro was valued at approximately $3.0 Million. 74. In addition, based on the successful outcome of several litigation matters prosecuted by Defendants, the Estate's value was increased to an amount in excess of $3.5 Million. 75. Plaintiff paid her legal fees through numerous probate and estate litigation matters for approximately the first five (5) years of the attorney - client relationship. 76. Plaintiff has not paid for the services provided by Defendants since approximately May, 2000. -12- R -GATES, v.c. LOWELL R. GATES MARK E. HALBRUNER ~ N. 12TH STREET, SUITE LEMOYNE. PA 17043 {717) 731-9600 FAX (717) 731-9627 November 29, 1995 Marie K. Magaro 354 stumpstown Road Mechanicsburg, PA 17055 RE: Estate of David W. Magaro Estate Administration Dear Marie: In accordance with our meeting on November 29, 1995, I am writing to confirm your agreement to retain the services of Lowell R. Gates, P.C. in order to administer the estate of David W. Magaro. The following is a general listing of the various tasks and responsibilities involved in the estate administration process: 1. As Administratrix, C.T.A. of the estate, it is your responsibility to gather the assets and pay all debts, liabilities, and taxes of the estate. Assets include those which the decedent owned individually or in joint names with another individual. Assets also include items such as life insurance, annuities, pension fund accounts and IRA's. Debts include mortgages, personal loans, credit cards, and utility bills. Pennsylvania inheritance and/or Federal estate taxes are due within nine (9) months of the date of death. We anticipate that this timetable will be met. 2. We will prepare the necessary advertisement of your appointment as Administratrix, C.T.A. of the estate in accordance with the law in the Patriot News and the Cumberland Law Journal. 3. Within three (3) months after grant of letters, the personal representative or the estate's attorney must send a written notice to all beneficiaries and intestate heirs notifying them of the probate of the estate and giving a description of the beneficiary's interest in the estate, within ten (10) days after giving the notice, the personal representative or the estate's attorney must Marie Magaro Page 2 November 29, 1995 file with the Register of Wills office a Certification verifying compliance with the notice recf,~ir~-aents of Rule 5.6. 4. An Inventory of assets is required to be filed within nine (9) months of the date of death, or sooner if requested by an interested party of the estate. Also, a report of the status of the estate administration is required to be filed with the Register of Wills within nine (9) months of the date of death, and annually thereafter if the estate administration continues beyOnd nine (9) months and a final status report at the conclusion of the estate. 5. You should open an estate checking and/or savings account(s). This will enable the estate to keep track of income and expenses, and will simplify the process of preparing the tax returns and court accountings. As Administratrix, C.T.A., you are accountable for the assets, income and expenses of the estate. Separate estate checking and/or savings accounts will assist in yours and our record keeping. You will manage the estate accounts and will receive the statements of account. You should be the only person authorized to sign and issue checks. 6. We will apply for the Federal Tax Identification Number required for the estate. 7. You will reCeive the personal representative's commission to which you are entitled and which will be approximately five (5%) percent of the gross probate value of the estate, or a minimum flat fee to be determined, unless you decide in advance to waive the commi s s ion. 8. The Pennsylvania Department of Revenue allows a five (5%) percent discount toward the estate's Pennsylvania inheritance tax liability on any amount paid within three (3) months of death. We will decide closer to that time whether it is appropriate to take the discount. However, assuming funds are available, it is usually prudent to pre-pay the Pennsylvania inheritance tax and obtain the discount. Marie Magaro Page 3 November 29, 1995 9. As soon as the values for the estate assets and the amount of all deductions, expenses and claims against the estate are obtained (but no longer than nine (9) months), the Pennsylvania Inheritance Tax Return and the Federal Estate Tax Return can be prepared and filed with the Pennsylvania Department of Revenue and the Internal Revenue Service, respectively. Once the returns are filed, the review process by the Department and the IRS usually takes ninety (90) days. 10. In determining our fee, we consider a variety of factors. These include the difficulty of the administration, the amount of time involved, the character of services rendered, the value of decedent's real and personal property, and the responsibility incurred. The Pennsylvania Code of Professional Responsibility requires that we discuss our fees at the commencement of representation. All consultation is on a totally confidential basis. You will receive from our firm periodic statements, usually monthly, detailing services rendered since the last billing period, plus costs and fees which are advanced on your behalf, such as filing fees, extensive copying, long distance telephone calls, express mail fees, and FAX costs. Daily time records are prepared by each professional for each client. My current hourly rate is $125.00, Mark E. Halbruner's hourly rate is $100.00, and paralegal services are billed at $60.00 per hour. It is impossible to determine in advance the exact amount of time that we will incur on behalf of the estate. We will keep you informed of time we spend and will provide descriptions on our statements of activities undertaken. Hourly rates are usually reviewed annually on or about January 1st of each year. If a formal accounting of the estate is required or requested, necessarily our fees would be subject to approval by the Orphans' Court. 11. We will keep you informed as to the status of the estate administration. We will also send you copies of important correspondence and other documents. We appreciate the opportunity to serve as the legal _ = ~ ~. enjoyed talking with y~u ~ representative of the _s_at_ I .... November 29th and look forward to working with you on the Marie Magaro Page 4 November 29, 1995 administration of your late husband' s estate. If the fee z~pu~bl~lu~== that we have arrangement and other duties a~-~d ...... ~' '" ' =: -- outlined in this letter are acceptable to you, we would ask that you date and countersign the second enclosed copy of this letter and return it to us to evidence your approva~.-thereof. In the meantime, if there are any questions, please/e~el free to contact ~ Since~ly~' ///L/well R. Gates / LRG: sln Enclosure I hereby agree to representation set forth in , 1995 the duties, responsibilities, the foregoing letter. and Marie Magaro, ' Administratrix, C.T.A. EXHIBIT "B" Magaro, David W., Estate of c/c Marie K. McAndrsw, AdminLstratrix P.O. Box 188 Gaines, PA 16921 Estate Administration GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Statement Date November 2, 2000 Period Ending October 31, 2000 Statement No. 13243 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees o~/16/oo SWP Telephone conference with Marie for closing. Telephone conference with Tony regarding EIN. Pr=paration of note and amortization schedules. Preparation of Prascipe to discontinue. Calculation of accurate interest payment schedule and worksheet. Telephone call to Mike Postupack - left message. 2.80 @ 135.00/hr 378.00 Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration 05/16/00 MEH Inter-office conference with SWP regarding settlement agreement and reimbursement for Inheritance Tax. Reviewed stock certificate. 05/17/00 SWP 05/17/00 SWP 05/17/00 MEH 05/17/00 LRG 05/iS/00 MER Inter-office conference with LRG and MEH regarding tax payments for Magaro closing. Preparation of stock certificates for execution. Inter-office conference with LRG and SWP regarding settlement issues. Drafted receipt and release agreeement. Calculated Pennsylvania Inheritance Tax to be reirabursed to the Estate by David and Tony Magaro. Reviewed HUD-1 with SWP. Enter conference with LRG 0.50 @ 155.00/hr 77.50 0.70 @ 135.00/hr 94.50 1.00 @ 135.00/hr 135.00 2.50 @ 155.00/hr 387.50 1.00 @ 160.00/hr 160.00 1.50 @ 155.00/hr 232.50 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration 05/18/00 LRG regarding breakdown of legal fees for Variety Machines. Prepared praecipe to discontinue. Correspondence to Corky Goldstein. Brief conference with Magaro family. Prepared for settlement. Prepared lists for completion of estate issues. 05/18/00 LRG 05/18/00 LRG Prepared memorandum to Marie Magaro regarding loan payable from Variety Machines, Inc. to estate. Reviewed working papers from Bob Walkenstein regarding loan payment. Discussions regarding same with Marie Magaro. Reviewed Pennsylvania inheritance tax and reviewed calculations. Reviewed 1.50 @ 160.00/hr 240.00 1.80 @ 160.00/hr 288.00 2.20 @ 160.00/hr 352.00 Page 4 GATES& ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration reimbursement calculations for Tony and Dave Magaro. Reviewed SWP's memorandum. Discussion with Marie Magaro. 05/18/o0 LRG Reviewed prior legal fee invoices relating to work done for Variety Machines, Inc. and/or Variety Investments. Reviewed Judge Oler's order regarding reimbursment from Variety Investments. Prepared calculations on legal fee reimbursement by Variety Machines, Inc. to estate of Magaro. Prepared memorandum regarding same. Discussions with Marie Magaro regarding 05/18/00 LRG Office conference with Marie Magaro, Tony Magaro and Dave Magaro to review estate issues and 2.50 @ 160.00/hr 400.00 1.50 @ 160.O0/hr 240.00 Page 5 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration assist with transfer of stock issues to Tony and Dave. o5/19/0o LnG Inter-office conference with SLN and MEH regarding various estate issues and details following settlement. 05/22/00 LRG Telephone conference with Marie Magaro regarding various issues. Inter-office with SWP regarding closing issues. o9/13/oo 10/19/00 10/19/00 MEH LnG LnG Reviewed memos from SWP re: various outstanding estate issues. Reviewed correspondence from the Register of Wills regarding Status Report. Reviewed correspondence Pennsylvania Department of Revenue regarding extension of 0.90 @ 160.00/hr 144.00 0.40 @ 160.00/hr 64.00 0.30 @ 160.00/hr 48.00 0.30 @ 160.00/hr 48.00 0.20 @ 155.00/hr 31.00 Page 6 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration time to audit Pennsylvania inheritance tax. 10/20/00 SLN 10/20/00 LRG 10/20/00 LRG 10/21/00 LRG 10/23/00 LRG 10/23/00 TLS Prepared Status Report for filing with Cumberland County Register of Wills Office. Reviewed and signed the October, 2000 Status Report; prepared letter to Marie Magaro. Reviewed and revised letter to client regarding status report. Office conference with Marie Magaro to review estate administration issues, status report, etc. Telephone conference with Marie McAndrew regarding various estate issues. Cumberland County 2ag£sL=~ of Wills Office and filed 0.40 @ 95.00/hr 38.00 0.30 @ 160.O0/hr 48.00 0.20 @ 160.00/hr 32.00 0.50 @ 160.00/hr 80.00 0.40 @ 160.O0/hr 64.00 .... ~ ..... ,,~ 22.50 Page 7 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration Status Report Under Rule 6.12. Subtotal professional fees: $ 3,504.50 Total current billing: $ 3,604.50 Previous balance: 0.00 $ o.oo Total now due: 3,604.50 Current Over 30 Over 60 Over 90 3604.50 0.00 0.00 O. 00 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix D,O: Box 666 Wellsboro, PA 16901 Estate Administration Statement Date July 31, 2001 Period Ending July 31, 2001 Statement No. 16779 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 02/06/01 CJS 02/06/01 CJS 02/07/01 CJS 06/08/01 LRG Discussion with LRG regarding letter for Marie Magaro. Reviewed LRG's notes of telephone call with Marie Magaro. Drafted letter for Marie McAndrew. Reviewed correspondence and Petition to Orphans' Court from Thomas Gohsler at PA Department of 0.30 @ 100.00/hr 30.00 0.30 @ lO0.O0/hr 30.00 0.80 @ 100.00/hr 80.00 1.30 @ 160.O0/hr 208.00 Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estase Administration regarding extension of time to file Notice of Appraisement for inheritance tax. 06/05/01 MEH Reviewed correspondence from Atty. Thomas Gohsler, application for additional time to appraise and assess inheritance tax, order and rule to show cause; legal research; conference with LRG. 06/25/01 MEH Conference with LRG re: response to Dept. of Revenue's petition for additional time to review inheritance tax return. 07/20/01 ANP Researched Bankruptcy filing of Phelan. Obtained copies of Voluntary Petition. Schedules and Chapter 13 2.00 @ 155.00/hr 310.00 0.20 @ 155.00/hr 31.00 1.00 @ 100.00/hr 100.00 07/20/01 MEH Reviewed 1.00 @ 155.00/hr 155.00 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration documents from Richard Phelan Ch. 13 bankruptcy; conference with ANP re: 07/20/01 ANP Researched Bankruptcy issues regarding Phelan and liability for partnership debts and dischargeabili ty of debts not included in schedules. 07/20/01 CJS Inter-office conferences with MEH, LRG, and ANP regarding bankruptcy of Richard Phelan. Reviewed bankruptcy materials obtained from Middle District. 07/23/01 ANp Researched Bankruptcy issue regarding creditors ability to collect on debt not listed in debtor's bankruptcy petition. 1.00 @ 100.00/hr 100.00 0.80 @ 100.00/hr 80.00 1.00 @ lO0.O0/hr 100.00 07/25/01 CJS Inter-office 0.60 @ 110.00/hr 66.00 conference Page 4 GATES & ASSOCIATES, P.C. Magarc, David W., Estate of Estate Administration with ANP regarding Phelaro bankruptcy. Research regarding 07/26/01 ANP Meeting with Sarah Smith regarding research of Bankruptcy Title 11 U.$.C. section 523 issue. Subtotal Professional Fees: 0.20 @ lO0.00/hr 20.00 $ 1,310.00 Disbursements: 02/07/01 04/04/01 07/20/01 07/31/01 Postage. Postage. Photocopying. Postage. Subtotal disbursements: 0.34 2.46 5.0O 0.34 $ s.14 Total current billing: $ 1,318.14 11/02/00 NO. 13243 Prior payments/credits Previous balance: 3,604.50 ( 0.00) 3,604.50 $ 3,604.50 $ 3,604.50 Page 5 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Estate Administration Current Over 30 Over 60 Over 90 1318.14 0.00 0.00 3604.50 GATES & ASSOCIATES, P.C. 1013 Mumma Read, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Marie K. McAndrew, Adminis--ratrix Wellsbcro, PA 16901 Estate Administration Statement Date September 10, 2001 Period Ending August 31, 2001 Statement No. 16944 PAYMENT DUE UPON P~ECEIPT OF STATE~NT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We ncw accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 08/21/01 CJS Office conference with ANP regarding bankruptcy of Richard Phelan. Office conference with M~H regarding research. 0.40 @ ll0.00/hr 44.00 Subtotal Professional Fees: $ 44.00 Total current billing: $ 44.00 11.02/00 5731/01 No. 13243 3,604.50 Prior paymenns/credits ( 0.00) No. 16779 1,318.14 3,604.50 GATES & ASSOCIATES, P.C. Page 2 Esuau~ Administration Prior payments/credits Previous balance: 0.00) 1,318.14 $ 4,922.64 4,922.64 TOTAL NOW DUE: 4,966.64 Current Over 30 Over 60 Over 90 44.00 1318.14 O. 00 3604.50 PLEASE VISIT OUR W~BSITE AT WWW-GATESLAWFIRM.COM GATES ~ ASSOCIATES, P.C. 1013 Mur.~a Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Aoministratrix Weilsboro, PA 16901 Esuate Administration Invoice Daue December 4, 2001 Period Ending November 30, 2001 Invoice No. 17282 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overuue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 11/14/01 LRG Reviewed and revised Status Report. 0.30 @ 160.00/hr 48.00 Subtotal Professional Fees: $ 48.0O Total current billing: 48.00 11/02/00 07/31/01 09/10/01 No. 13243 Prior payments/credits No. 16779 Prior payments/credits No. 16944 Prior payments/credits Previous balance: 3,604.50 ( 0.00) 3,604.50 1,318.14 ( 0.00) 1,318.14 44.00 ( 0.00) 44.00 $ 4,966.64 $ 4,966.64 GATES & ASSOCIATES, P.C. Page 2 Maqaru, David W., Estate of TOTA/~ NOW DUE: 5,014.64 Current 48.00 Over 30 Over 60 Over 90 0.00 0.00 4966.64 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM. COM GATES, H~LBRUNER & HATCH, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #30-0000518 INVOICE Magarc, David W., Estate of c/c ]4erie K. McAndrew, Administra~rix P.O. Box 666 We!lshcrs, PA 16901 Es~aue Administration Invoice Date December 31, 2001 Period Ending December 31, 2001 Invoice No. 17927 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 12/15/01 LRG Telephone conference with Marie Magaro regarding administration issues. 0.50 @ 160.00/hr 80.00 Subtotal Profeesional Fees: $ 80.00 Total current billing: $ 80.00 11/02/00 07/31/01 C9/!0/01 12/04/~I No. 13243 No. 16779 Prior payments/credits Ne. 16944 Prior payments/credits Nc. 17282 3,604.50 1,318.14 0.00) 44.00 0.00) 48.00 1,318.14 44.00 GATES, HALBRUNER & HATCH, P.C. Magaro, David W., Estate of Estaue Administration Prior payments/credits ( Previous balance: 0.00) 48.00 $ 5,014.64 Page 2 $ 5,014.64 TOTAL NOW DUE: 5,094.64 Current Over 30 Over 60 Over 90 80.00 48.00 0.00 4966.64 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM GATES, HALBRUNER & HATCH, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-t218 (717) 731-9600 Federal I.D. #30-0000518 INVOICE ~4a~arc, David W., Estate of c/c MarLe K. McAndrew, Admzni~ra~rix P.O. BC~ 666 Wel!sbcro, PA 16901 Essase Administration Invoice Date February ll, 2002 Period Ending January 31, 2002 Invoice No. 18226 PAY~MENT DUE UPON RECEIPT OF STATEMENT. ~- ~,-=rmue accounts will be assessed finance charges of t 1/2% per month. We nc~ accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Prcfessional Fees: 0i/22/02 LRG 0!/23/02 LRG Preparation of correspondence to Attorney Getz regarding Federal Estate Tax return; reviewed Form 706, related schedules and IRS Estate Tax Closing Letter. Preparation of Pennsylvania Inheritance tax documents for attorney Getz. 1.30 @ 160.00/hr 208.00 0.50 @ 160.00/hr 80.00 01/2~/02 LRG Preparation of correspondence to Attorney David Genz 1.10 @ 160.00/hr 176.00 GATES, HALERUNER & HATCH, P.C. Page 2 Ma~aro, David W., EsTate of Es~aue Administration 01/25/02 LRG 01/25/02 LRG enclosing various PA inheritance tax documents and explaining payment by David Magaro Estate of inheritance tax on Stumpstown Road property. Tax research IRS Estate Tax closing letter and IR$'s ability to open estate audit after re-adjustment on objections to partial accounting. Preparation of recalculations for Pennsylvania Inheritance tax and Federal Estate Tax; telephone conference with Attorney Dave Getz; office conference with Marie McAndrew and Tony Magaro regarding settlement issues. correspondence to David Getz regarding Marie Magaro's authority to 0.70 @ 160.00/hr 112.00 1.00 @ 160.00/hr 160.00 2.00 G 160. &0/hr ~20. O0 GATES, HALBRUNER & HATCH, P.C. Page 3 Magars, David W., Es=ate of Esuate Administration Deed Stumpstown Road property from Estate to herself. 01/28/02 LRG Legal research regarding PEF Code section 3235 and administratrix 's authority to deed specifically devised property to devisee. 01/28/02 01/29/02 LRG regarding iRS Estate Tax Closing letters. ANP Researched Rev Proc 94-68. 1.00 @ 160.00/hr 160.00 1.00 @ 160.00/hr 160.00 0.40 @ 100.00/hr 40.00 Subtotal Professional Fees: $ 1,416.00 Total current billing: $ 1,416.00 11/02/00 07/31/01 09/10/01 12/04/01 12/31/01 No. 13243 3,604.50 Prior payments/credits ( 0.00) 3,604.50 No. 16779 1,318.14 Prior payments/credits ( 0.00) 1,318.14 No. 16944 44.00 Prior payments/credits ( 0.00) 44.00 No. 17282 48.00 Prior payments/credits ( 0.00) 48.00 No. 17927 80.00 Prior Payments/credits ( 0.00) 80.00 Previous balance: $ 5,094.64 5,094.54 GATES, HALBRUNER & HATCH, P.C. Page 4 M=~==_, David W., Estate of Essaue AdministraTion TOTAL NOW DUE: 6,510.64 Current Over 30 Over 60 Over 90 1416.00 80.00 48~00 4966.64 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM Ma~aro David W. Estate of c/o Mane K. McAndrew. Adranistratrix P 0 Box 666 Weilsboro. p?. 16901 Estate Administration Gates, Halbruner & Hatch, P.C. 1013 Murrain Road Suite # I00 Lermyne, PA 17043 (717) 731-9600 Federal I.D. #03-0379998 INVOICE Invoice Date May 3 I, 2002 Period Ending May 31, 2002 Invoice No. 20232 PAYMENT DUE UPON RECEIPT OF STA~ All overdue accounts will be as sessed finance charges of 1.5% per month. ~ e no~ accept the tollo~mg credit cards for payment: Ameman E~press, Discover, Mastercard & Visa. Profess nM Fees 2/13/'2L¥)2 LRG TH ,FPHONE CONk k.I~NCE WITH MARIE MCANDREW REGARDING NUMEROUS ESTATE ADM]2qlSTRATION ISSUES, 1.20 ~ 160.00/hr 192.00 Sub-total Fees: 192.00 Total Cun'ent Billing: 192.00 Previous Balance Due: 6,510.64 Total Now Due: 6,702.64 Current Over 30 Over 60 Over 90 192.00 0.00 0.00 " 6,510.64 PLEAS E S END ALL PAYM~'FS AND CORRESPONDECqCETO OUR LI~VIOYNEADDRI~s. VISIT OUR WEBS IrE AT WWW. GATES LAW F/R/VI CO M David W Magaro. Estate of c/o Marie K. Magaro. Administratrix Apt. 605 Chesterbrook Court ~alnD Hill PA I7011 slam Aammistratmn Gates, Halbruner & Hatch, P.C. 1013 Mumma Road Suite #I00 Lemoyne. PA 1704-3 (717) 248-6909 Federal I.D. #03-0379998 INVOICE Invoice Date April 30, 2003 Period Ending March 31, 2003 Invoice No. 24873 PAYMENT DUE LrPON RECEIPT OF STATEMENT All overdue accounts will be assessed finance charges of 1.5% per month. We nmv accept the following credit cards for payment: Discm'er. Mastercard & Visa. Professional Fees 3/lo/2003 CJS 3/1112002 CJS 3/11/2003 CJS 3/26/2003 CJS 3/28/2(/03 CJS OFFICE CONFERENCE WITH LRG REGARDING APPLICATION FOR APPOINTMENT OF CUSTODIAN BY PNC BANK. REVIEWED APPLICATIONS AND LEGAL RESEARCH INVOLVING SAME. OFFICE CONFERENCE WITH LRG. REVIEWED CORRESPONDENCE RECEIVED FROM Al 1 iORNEY KATZMAN. LEGAL RESEARCH REGARDING PETITION TO WITHDRAW AS COUNSEL FOR ESTATE. OFFICE CONFERENCE WITH LRG. BEGAN DRAFTING PETITION TO WITHDRAW AS COUNSEL FOR ESTATE. LEGAL RESEARCH REGARDING WITHDRAWING AS COUNSEL FOR ESTATE. OFFICE CONFERENCE WITH TLS. BEGAN DRAF I lNG CORRESPONDENCE TO ATTORNEY KATZMAN. DRA? FED AND MAILED CORRESPONDENCE TO ATTORNEY KATZMAN REGARDING APPLICATIONS FOR APPO1NTNflENT OF CUSTODIANS FrfED BY PNC BANK. 2.50 ~ ll0.00/hr 1.00 ~ ll0.00/hr 1.60 ,.~ llO.O0/hr 0.50 ~ 1 lO.O0/hr 0.50 ~ I lO.O0/lu' Sub-total Fees: 275.00 110.00 176.00 55,00 55.00 671.00 E~x~enses 1 ......()( ~ LONG DISTANCE CHARGES. 0.13 POSTAGE. Gates, Halbmner & Hatch, P.C. Sub-total Expenses: Total Currem Bil/ing: - Previous Balanc~ Due: Total Now Due: Ctaxent Over 30 Over 60 671.96 0.00 0.00 0.$? 0.36 6,7~.~ 6, PLEASE VISIT OUR WEBSITE AT WWW. GATESLAWFIthM. COM GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 Varisuy Machines, Inc. 116 Easu Allen St. Mechanicsburg, PA 17055 STATEMENT Statement Date Nove~0er 2, 2000 Period Ending October 31, 2000 Sta=sment No. 13242 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ali ..... ~- ...... e accounts will be assessed finance charges of 1 1/2% per month. We ncw accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 0S/03/00 MEH 08/03/00 SWP Inter-office conference with LRG regarding David Magaro solicitation of Variety Machines, Inc. customer in breach of agreement with Tony Magaro. with LRG to discuss and debate the implication of David Magaro soliciting clients who have been identified on the covenant included in 0.50 @ 155.00/hr 77.50 0.50 @ 135.00/hr 67.50 GATES & ASSOCIATES, P.C. Page 2 David W. Magare, OS/04/O0 OS/04/O0 Jr. Matter the revised sales agreement. SWP Telephone conference with Attorney Corky Goldstein to confirm his representation of David Magaro and his client's solicitation of clients. SWP Drafted letter to David Magaro reminding him of the of his actions and the ramifications of default under the agreement between the two parties. 0S/07/00 SWP 08/07/00 ~fEH OS/09/O0 SWp Reviewed correspondence to David Magaro reminding him of the non-compete provisions. Reviewed correspondence to David Magaro, Jr. Telephone call from David Magaro to discuss the reminder 0.80 @ 135.00/hr 81.00 0.80 @ 135.00/hr 108.00 0.40 @ 135.00/hr 54.00 0.40 @ 155.00/hr 62.00 0.50 @ 135.00/hr 67.50 GATES & ASSOCIATES, P.C. Page 3 David W. Magaro, Jr. Matter letter which was sent to him regarding viola=ions of the covenant compete. Subtotal professional fees: $ 517.50 Total current billing: $ 517.50 Previous balance: 0.00 $ 0.00 Total now due: 517.50 Current Over 30 Over 60 Over 90 517.50 0.00 0.00 0.00 GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 Anucnio W. Magaro Variety Machines, Inc. 115 East Allen Street Mechanicsburg, PA 17055 STATEMENT Loan to Variety Machines, Inc. Statement Date November 2, 2000 Period Ending October 31, 2000 Statement No. 12141 PAYMENT DUE UPON RECEIPT OF STATEMENT. All overdue accounts will be assessed finance charges of 1 1/2% per month. We ncw accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 06/23/00 SWp 0S/01/00 SWp Preparation of UCC-3 to terminate Community Trust Co. security interest. with MEH to discuss a strategy to recover the funds due and owing to Variety Machines from Variety 1.00 @ 135.00/hr 135.00 0.60 @ 135.00/hr 81.00 Subtotal professional fees: $ 216.00 GATES & ASSOCIATES, P.C. Page 2 Lcan to Variety Machines, Inc. Total current billing: $ 216.00 Previous balance: 0.00 $ 0.00 Total now due: 216.00 Current Over 30 Over 60 Over 90 216.00 0.00 0.00 0.00 GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Fedsral I.D. #25-1673750 Maqaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 STATEMENT Greenray Industries, Inc. Stock Liquidation Statement Date November 2, 2000 Period Ending October 31, 2000 Statement No. 14470 PAYMENT DUE UPON RECEIPT OF STATEMENT. A~_ overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 06/07/00 06/07/00 SWP Inter-office conference with LRG regarding Greenray and C-MAC. Telephone conference with C-MAC shareholder exchange company. Strategy meeting - file and evidence search. Inter-office conference with LRG and SWP regarding ownership of Greenray stock and distribution from sale of 1.80 @ 135.00/hr 243.00 0.60 @ 155.00/hr 93.00 Page 2 GATES& ASSOCIATES, P.C. Magarc, David W., Estate of Greenray Industries, Inc. Stock Liquidation 06/07/00 LRG Reviewed stock certificate for Greenray Industries, Inc. 1.10 @ 160.00/hr 178.00 07/06/00 SWP 07/06/00 LRG 07/07/00 SWP 07/17/00 LRG Preparation of Board of Director resolutions for Variety Machines, Inc. to execute Greenray Industries, Inc. cash redemption document. Completion of letter to GSLC to cash shares. Reviewed file and stock certificate to resolve issue of true ownership. Meeting with Tony to execute shareholder documentation for GreenRay industries. Telephone conference with GSCC. Letter to GSCC. Reviewed memorandum regarding conversation with Robert 2.00 @ 135.00/hr 270.00 0.50 @ 160.00/hr 80.00 0.80 @ 135.00/hr 108.00 0.40 @ 160.00/hr 64.00 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Greenray Industries, Inc. Stock Liquidation 0S/02/00 SWP 08/16/00 SWP 09/13/00 SWP 09/14/00 SWP 09/25/00 SWP and Greenray Industries, Inc. stock. Prepared notes tc thc file. Reviewed file for status of Greenray stock. Drafted reply fax to opposing Counsel regarding Greenray stock. Internal correspondence to LRG regarding the role of Bob Walkenstein. Telephone calls to Georgeson Shareholder (the company distributing the funds for the Greenray Shares stock). Internal e-mail update and fax update to Tony Magaro regarding the proceeds. Telephone call from Marie Magaro regarding the status of the Greenray stock. 0.30 @ 135.00/hr 40.50 0.40 @ 135.00/hr 54.00 0.70 @ 135.00/hr 94.50 0.30 @ 135.00/hr 40.50 Telephone call 0.30 @ 135.00/hr 40.50 from Tony GATES & ASSOCIATES, P.C. Page 4 Magaro, David W., Estate of Greenray Industries, Inc. Stock Liquidation regarding the proceeds from the Greenray Stock. 09/27/00 CJS 09/27/00 CJS 09/27/00 CJS 09/27/00 CJS 09/27/00 CJS 09/27/00 CJS 09/27/00 CJS 09/27/00 SWP Telephone call to Tony Magaro. with SWP regarding stock and Telephone call from Tony Magaro. E-mail to SWP outlining telephone call from Tony Magaro. Reviewed file on Greenray Industries stock. Began drafting agreement. Finished drafting escrow agreement. Telephone call from Tony regarding the deposit of the proceeds from the Sale of the Greenray Stock. Preparation of the escrow 0.20 @ lO0.O0/hr 20.00 0.20 @ lO0.00/hr 20.00 0.20 @ lO0.00/hr 20.00 0.20 @ lO0.00/hr 20.00 0.50 @ lO0.00/hr 50.00 0.80 @ lO0.00/hr 80.00 0.40 @ 100.00/hr 40.00 0.50 @ 135.00/hr 67.50 Page 5 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Greenray Industries, Inc. 09/28/00 CJS 09/28/00 SWP 10/04/00 SWP 10/06/00 CJS 10/26/00 LRG 10/27/00 LRG Stock Liquidation Revised escrow 0.40 agreement. Telephone call regarding placing the proceeds in his own escrow account. 0.30 Telephone call from Tony regarding the establishment of account to hold the funds from the Greenray Stock. Discussion with SWP regarding bylaws of Variety Machines. Reviewed file; telephone call to Antonio Magaro regarding receipt of Greenray Industries, Inc. stock sale proceeds; prepared letter to Antonio Magaro regarding same. Reviewed and revised letter to Tony Magaro regarding escrow @ 100.00/hr 40.00 @ 135.00/hr 40.50 0.30 @ 135.00/hr 40.50 0.20 @ 100.00/hr 20.00 0.70 @ 160.00/hr 112.00 0.30 @ 160.00/hr 48.00 Page 2 GATES& ASSOCIATES, P.C. Magaro, David W., Estate of Greenray Industries, Inc. Stock Liquidation "Variety Amusements',. 1!/09/00 CJS 11/09/00 CJS 11/09/00 CJS 11/09/00 CJS 11/17/00 CJS 1!/17/00 CJS Discussion with Attorney Halbruner regarding background of Variety Investments and Greenray Industries stock. Researched corporate minute book regarding various purchases and transactions. Reviewed files on Greenray Industries stock, sales agreement, and Variety Investments. Reviewed previous correspondence regarding Greenray Industries stock. Reviewed Greenray Industries file and Variety Investments file. Drafted letter to Attorney Rogers regarding Greenray 0.30 @ 100.00/hr 30.00 0.80 @ 100.00/hr 80.00 1.20 @ 100.00/hr 120.00 0.40 @ 100.00/hr 40.00 0.80 @ 100.00/hr 80.00 1.00 @ 100.00/hr 100.00 GATES & ASSOCIATES, P.C. Magaro, David W., Es=ate of Gr~enray Industries, Inc. Stock Liquidation Industries stock. 11/21/00 CJS 11/21/00 LRG 11/21/00 CJS 11/21/00 CJS 11/21/00 CJS Reviewed and revised letter to Attorney Rogers for Estate of William G. Magaro. Reviewed file and numerous documents relating Variety Machines, Inc. and Variety Investments; prepared letter to opposing counsel. Discussions with Attorneys Halbruner and Gates regarding background and the estates of William Magaro and David Magaro. Researched files and corporate minutes regarding stocks, dates of acquisition and sale, dates of signatures, Revised letter to Attorney Rogers 0.80 @ 100.00/hr 80.00 0.80 @ 160.00/hr 128.00 0.80 @ 100.00/hr 80.00 1.00 @ 100.00/hr 100.00 0.40 @ 100.00/hr 40.00 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Greenray Industries, Inc. Stock Liquidation Greenray Industriee stock. 11/21/00 MEH Inter-office conference with CJS regarding draft letter to Atty. Rogers on ownership of Greenray Industries stock. 0.20 @ 155.00/hr 31.00 11/27/00 CJS Reviewed and revised letter to Attorney Rogers regarding Greenray Industries stock. 1.20 @ 100.00/hr 120.00 Page 4 Subtotal professional fees: $ 1,170.50 Total current billing: $ 1,170.50 11/02/00 No. 14470 Prior payments/credits Previous balance: 1,954.13 ( 0.00) 1,954.13 $ 1,954.13 1,954.13 Total now due: GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Antonio W. Magaro Variety Machines, Inc. 116 East Allen Street Mechanicsburg, PA 17055 Refinance of Allen Street Properties Statement Date November 2, 2000 Period Ending October 31, 2000 Statement No. 13244 PAYMENT DUE UPON RECEIPT OF STATEMENT. All overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 05/14/00 SWP 05, ~-., 00 SWP 05/16/00 SWP Inter-office conference with LRG and SLN. Telephone conference with Jim McAndrew. Finalized closing related matters. Investigated outstanding stock certificates. Recalculated interest payments. Telephone conference with Banker. 1.20 @ N/C 0.00 5.50 @ N/C 0.00 1.50 @ N/C 0.00 05/16/00 SWP Telephone 1.50 @ N/C 0.00 conferences GATES & ASSOCIATES, P.e. Page 2 Refinance of Allen 05/16/00 SLN 05/17/00 SwP 05/17/00 SWP 05/17/00 SWP Street Properties with Corky Goldstein. Telephone conferences with Tony. Inter-office conference with SWP and telephone conference with Mike Postupak at AllFirst Bank regarding title binder requirements. Travel to Ionni Abstract to pick up title binder. Telephone conference with Corky Goldstein regarding client lists. Telephone conference with Tony regarding clients. Preparation of revised client lists. Preparation of interest payment summaries and escrow agreement. Telephone call from Corky. Inter-office conference with SLN regarding settlement sheets to 0.60 @ N/C 0.00 1.70 @ N/C 0.00 1.00 @ N/C 0.00 1.50 @ N/c 0.00 GATES & ASSOCIATES, P.C. Page 3 Refinancs of Allen 05/17/00 LRG 05/17/00 LRG 05/17/00 SLN 05/18/00 SLN 05/19/00 SLN Street Properties represent all transactions. Inter-office conference with LRG terms. Telephone conference with Tony Magaro regarding purchase of David Magaro. Telephone call from Tony Magaro regarding details. Prepared title insurance documents. Reviewed abstract of title and title search. Marked-up title binder. Attended to various miscellaneous settlement matters. Attended to various miscellaneous settlement matters. Photocopied closing documents for distribution to all parties. Attended to miscellaneous matters to 0.50 @ N/C 0.00 3.50 @ N/C 0.00 6.50 @ N/C 0.00 3.5O @ N/C 0.00 2.20 @ N/C 0.00 GATES & ASSOCIATES, P.C. Page 4 Refinance of Allen 05/22/00 SLN 06/30/00 SLN 07/01/00 LRG 08/28/00 SWP Street Properties close out settlement file. Filed documents with Recorder of Deeds and Department of State. Organized file. Preparation of closing correspondence to Ionni Abstract regarding title insurance. Completed Attorney's Final Report and correspondence to Ionni Abstract. Reviewed and signed final attorney's certificate and letter to Ionni Abstract, regarding title insurance. Calculated Tony's basis in 114 & 116 East Allen Street Properties based upon research of the files. 0.60 @ N/C 0.00 0.60 @ 95.00/hr 57.00 0.60 @ 160.00/hr 96.00 1.50 @ 135.00/hr 202.50 Subtotal professional fees: $ 355.50 GATES & ASSOCIATES, P.C. Page 5 Refinance of Allen Street Properties Disbursements 04/12/00 04/15/00 04/18/00 04/21/00 04/25/00 05/03/00 05/04/00 05/09/00 05/16/00 05/17/00 05/19/00 05/19/0o 05/22/00 05/22/00 05/22/00 05/22/00 05/22/00 06/09/00 06/13/00 06/15/00 06/20/00 06/21/00 06/28/00 06/29/00 07/18/00 Long distance charges. Long distance charges. Long distance charges. Long distance charges. Long distance charges. Long distance charges. Federal Express charge. Federal Express charge. Long distance - fax. Long distance charges. Mileage - travel to Cumberland Co. Courthouse to file documents. Parking. Postage. Postage. Mileage - travel to Cumberland Co. Courthouse to file documents. Parking. Filing fees - additional fee - Cumberland Co. Recorder of Deeds, Statement of Value. Long distance - fax. Long distance - fax. Long distance charges. Long distance - fax. Long distance - fax. Long distance - fax. Long distance charges. Long distance - fax. Subtotal disbursements: 0.21 0.35 0.26 1.92 0.10 0.26 18.46 11.44 0.18 0.21 7.15 0.25 1.43 4.18 7.15 0.25 1.00 1.89 0.75 0.26 0.26 0.59 0.12 0.26 0.18 59.11 Total current billing: $ 414.61 Previous balance: 0.00 $ 0.00 Total now due: $ 414.61 GATES & ASSOCIATES, P.C. Page Refinance of Allen Street Properties Current Over 30 Over 60 Over 90 414.61 0.00 0.00 0.00 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Antonio W. Magaro Magaro, David W., Estate of Variety Machines, Inc. 116 E. Allen Street Mechanicsburg, PA 17055 Variety Machines - General Business Matters Statement Date September 30, 2001 Period Ending September 30, 2001 Statement No. 13247 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. ~e now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 09/21/01 MEH 09/25/01 MEH 09/27/01 ANP Reviewed file; memo to LRG re: collection of debt owed to Variety Machines, Inc. by Magaro-Phelan partnership. with ANp re: research for collection of debt owed to Variety Machines, Inc. by Magaro-Phelan partnership. Researched liquidation file of Magaro-Phelan. 0.30 @ 155.00/hr 46.50 0.20 @ 155.00/hr 31.00 2.00 @ 100.00/hr 200.00 GATES & ASSOCIATES, P.C. Page 2 Magaro, David W., Estate of Varie=y Machines - General Business Matters 09/28/01 ANP Reviewed file. Travel to and from Cumberland County Courthouse and meeting with Judge Oler regarding File. Subtotal Professional Fees: 2.50 @ 100.00/hr 250.00 $ 527.50 Total current billing: $ 527.50 Previous balance: 0.00 $ 0.00 TOTAL NOW DUE: 527.50 Current Over 30 Over 60 Over 90 527.50 0.00 0.00 0.00 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite ~100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 INVOICE Antonio W. Magaro Magaro, David W., Estats of Variety Machines, Icc. 116 E. Allen Street Mechanicsburg, PA 17055 Variety Machines - General Business Matters Invoice Date November 9, 2001 Period Ending October 31, 2001 Invoice No. 17483 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. ?rcfessional Fees: 10/02/01 MEH Telephone call 2.50 @ 155.00/hr 387.50 from ANP re: research at Cumberland County Courthouse on loan owed by Magaro-Phelan partnership; office conference with ANP; reviewed research results from ANP; online search for real estate owned by Magaro-Phelan partnership; telephone call Eakin; correspondence GATES & ASSOCIATES, P.C. Page 2 Magaro, David W., Estate of Variety Machines - General Business Matters 10/02/01 ANp to Antonio Magaro. Researched PNC ~uit versus Phelan and partnership for evidence of loan. 10/11/01 MEH Reviewed Superior Court decision in Wm. Magaro Estate v. Phelaro, Inc. (denying that statute of limitations barred collection of debt). Subtotal Professional Fees: 2.00 @ 100.O0/hr 200.00 0.30 @ 155.00/hr 46.50 $ 634.00 Miscellaneous 10/31/01 Finance Charge. Subtotal miscellaneous: 7.91 ' 7.91 Total current billing: $ 641.91 09/30/01 No. 13247 Prior payments/credits Previous balance: 527.50 ( 0.00) S27.50 $ 527.50 $ 527.50 TOTAL NOW DUE: $ 1,169.41 GATES & ASSOCIATES, P.C. Page 3 Magaro, David W., Estate of Variety Machines - General Business Matters Current Over 30 Over 60 Over 90 641.91 527.50 0.00 0.00 PLEASE VISIT OUR WEBSITE AT W-WW.GATESLAWFIP. M.COM GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 INVOICE Antonio W. Magaro Magaro, David W., Estate of Variety Machines, Inc. 116 E. Allen Street Mechanicsburg, PA 17055 Variety Machines - General Business Matters Invoice Date December 4, 2001 Period Ending November 30, 2001 Invoice No. 17728 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. ~-scellaneous 11/30/01 Finance Charge. Subtotal miscellaneous: 7.91 7.91 Total current billing: $ 7.91 09/30/01 No. 13247 527.50 Prior payments/credits ( 0.00) 527.$0 11/09/01 No. 17483 641.91 Prior payments/credits ( 0.00) 641.91 Previous balance: $ 1,169.41 1,169.41 TOTAL NOW DUE: $ 1,177.32 GATES & ASSOCIATES, P.C. Page 2 Magaro, David W., Estate of Variety Machines - General Business Matters Current Over 30 Over 60 Over 90 7.91 641.91 527.50 0.00 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIPd4. COM GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 M&garo, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 STATEMENT Variety Investments Litigation Statement Date May 2, 2000 Period Ending May 2, 2000 Reference No. 12754 Professional Fees 03/17/00 LRG 03/17/00 LRG 03/17/00 LRG 03/20/00 LRG 04/13/00 LRG PAYPIENT DUE UPON RECEIPT OF STATEMENT Office conference with Richard Phelan regarding possible in-kind distribution of Phelaro, Inc. common stock to Magaro estates. Prepared letter to Atty. Richard Grubb regarding in-kind distribution of Phelaro, Inc. stock to Magaro estates. Reviewed and revised letter to Atty. Grubb. Reviewed letter to Atty. Grubb regarding Phelaro Inc. stock distribution. Prepared and collected information for partnership 0.50 @ 160/hr 1.00 @ 160/hr 0.30 @ 160/hr 0.20 @ 160/hr 1.00 @ 160/hr 80.00 160.00 48.00 32.00 160.00 Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Litigation 04/14/00 LRG 04/14/00 LRG 04/15/00 LRG Prepared information, organized accounting data, and prepared memorandum to Leon Walters, CPA, for 1999 tax return preparation. Office conference with Leon Walters, CPA, to review 1999 income tax information and tax return preparation. Telephone conference with Leon Walter regarding 1999 tax returns. Reviewed and revised informal accounting for 1999 calendar year. Brief office conference with Leon Walter. Prepared fax to Marie McAndrew regarding 1999 accounting and tax returns. Prepared fax and memorandum to Leon Walter. Prepared fax to Atty. Christopher Conner regarding 1999 tax returns and accounting. 2.30 0.50 3.00 @ 160/hr @ 160/hr @ 160/hr 368.00 80.00 480.00 04/iS/00 LRG Telephone 0.40 @ 160/hr 64.00 conference with Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Litigation Marie McAndrew regarding 1999 accounting and tax returns. Disbursements Subtotal professional fees: 03/03/00 CD Long distance charges. 03/03/00 CD Long distance charges. 03/13/00 CD Long distance charges. 03/17/00 CD Long distance charges. 04/12/00 CD Long distance charges. 04/12/00 CD Long distance charges. 04/12/00 CD Long distance charges. 04/12/00 CD Long distance charges. 04/14/00 CD Long distance charges. 04/21/00 CD Long distance charges. 04/21/00 CD Long distance charges. 04/21/00 CD Long distance charges. Subtotal disbursements: 1,472.00 2.00 0.26 30.00 3.90 2.00 0.26 2.00 0.26 1.00 0.13 2.00 0.26 3.00 0.39 3.00 0.39 3.00 0.39 5.00 0.65 10.00 1.30 1.00 0.13 8.32 Total current billing: Payments Received 05/01/00 05/02/00 Retainer application - (#3536) Check to Leon R. Walter,- accountant. (#3535) ( 1,000.00) 500.00 ( 1,000.00) 1,480.32 Previous balance: 0.00 -1,000.00 Total now due: 480.32 Page 4 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Litigation Hold Account C: 16,375.60 Current Over 30 -- Over-~0 Over 90 480.32 0.00 0.00 0.00 Ail overdue accounts will be assessed finance charges of 1 1/2% per month. WE NOW ACCEPT THE FOLLOWING CREDIT CARDS FOR PAYMENT: AMERICAN EXPRESS, DISCOVER, VISA & MASTERCARD. PLEASE CALL THE OFFICE FOR DETAILS. GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 STATEMENT Varieny Investments Litigation Statement Date May 18, 2000 Period Ending May 15, 2000 Reference No. 13022 Professional Fees 04/13/00 LRG 04/17/00 LRG 04/17/00 LRG 05/03/00 LRG 05/04/00 LRG PAYMENT DUE UPON RECEIPT OF STATEMENT Prepared partnership income tax returns. Office conference with Leon Walter, CPA, to review 1999 partnership tax returns. Paid invoice for tax return preparation. Filed IRS Form 8736, extension to file partnership tax return. Reviewed letters from Atty. Kit Conner regarding informal accounting. Reviewed letter from Atty. Kit Conner. Prepared letter to Leon check for 1999 1.00 @ 160/hr 0.50 @ 160/hr 0.20 @ 160/hr 0.30 @ 160/hr 1.00 @ 160/hr 160.00 80.00 32.00 48.00 160.00 Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Litigation 05/04/00 LRG 05/08/00 LRG 05/09/00 LRG 05/09/00 LRG 05/09/00 LRG payment, prepared letters to Atty. Conner with response to Cenner'e letter. Reviewed working papers from Bob Walkenstein, CPA. Reviewed and revised letter to Leon Walter. Reviewed and revised letter to Atty. Conner. Reviewed and filed 1999 Partnership Tax Returns. Prepared letters to Atty. Conner and Marie Magaro. Reviewed and revised letters to Leon Walters and Christopher Conner regarding partnership liquidation. Reviewed and revised letters to Atty. Conner and Marie McAndrew regarding 1999 tax returns. Telephone conference with Leon Walters regarding meeting to discuss final accounting. 0.50 @ 160/hr 80.00 0.40 @ 160/hr 64.00 0.50 @ 160/hr 80.00 0.60 @ 160/hr 96.00 0.70 @ 160/hr 112.00 Subtotal professional fees: 912.00 Page 3 GATES & ASSOCIATES, Magaro, David W., Estate of Variety Investments Litigation Disbursements 05/08/00 CD Long distance charges. 05/09/00 CD Postage. ~5/09/00 CD Postage. 05/11/00 CD Long distance charges. 05/11/00 CD Long distance charges. 05/11/00 CD Long distance charges. 05/12/00 CD Long distance charges. Subtotal disbursements: 1.00 0.13 1.00 0.77 1.00 0.99 11.00 1.43 1.00 0.13 7.00 0.91 1.00 0.13 4.49 Total current billing: 916.49 05/02/00 No. 12754 1,480.32 Prior payments/credits ( 1,000.00) Previous balance: 480.32 480.32 480.32 Total now due: 1,396.81 Hold Account C: 16,540.70 Current Over 30 Over 60 Over 90 1396.81 0.00 0.00 0.00 Page 4 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Litigation All overdue accounts will be assessed finance charges of 1 1/2% per month. NOW ACCEPT THE FOLLOWING CREDIT CARDS FOR PAY~.~NT: ~-~RIC~N EXPRESS, DISCOVER, VISA & MASTERCARD. PLEASE CALL THE OFFICE FOR DETAILS. GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gainesl PA 16921 STATEMENT Variety Investments Dissolution Statement Date November 2, 2000 Period Ending October 31, 2000 Statement No. 13246 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of i 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 05/19/00 LRG 05/25/00 LRG 05/25/00 MEH Prepared letter to Atty. Richard Grubb regarding in-kind distribution of Phelaro, Inc. stock. Meeting with Leon Walters, CPA, to review and discuss final accounting and dissolution of partnership. Inter-office conference with LRG and Leon Walter. 0.80 @ 160.O0/hr 128.00 2.00 @ 160.O0/hr 320.00 1.60 @ 155.00/hr 248.00 06/07/00 SWP Inter-office 1.00 @ 135.00/hr 135.00 conference Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution with LRG regarding Phelaro, Inc. history, status, and strategy. Telephone call to Rich Grubb and Chris Cicconni. 06/07/00 06/12/00 07/05/00 07/06/00 LRG SWP SWP SWP Telephone call from Chris Cicconni regarding transfer of Phelaro, Inc. stock in-kind. Reviewed file regarding same and prior letters to Atty. Richard Grubb. Inter-office conference with SWP regarding potential agreement. Telephone conference with Chris Cicconni of Eckert Seamans regarding in-kind distribution of shares. Preparation of Liquidation Agreement. Completed draft of Liquidation Agraement for Variety Investment to 1.10 @ 160.00/hr 176.00 0.30 @ 135.00/hr 40.50 3.20 @ 135.00/hr 432.00 0.50 @ 135.00/hr 67.50 GATES & ASSOCIATES, P.C. Page 3 Magaro, David W., Estate of Variety Investments Dissolution distribute Phelaro Inc. shares. 07/11/00 SWP 07/13/00 SWP 07/14/00 SWP 07/17/00 LRG 07/17/00 LRG 07/18/00 SWP Reviewed in-kind Liquidation Agreement for Phelaro Inc. Revised the Liquidation Agreement. Inter-office conference with LRG regarding Phelaro Inc. in-kind distribution agreement. Reviewed file and tax returns. Prepared letter to Robert Walkenstein, CPA regarding tax returns. Reviewed and revised letter to Bob Walkenstein. Revised distribution agreement for Phelaro, Inc. stock. Distribute agreement to Atty. Conner, Atty. Cicconi McAndrew. 0.40 @ 135.00/hr 54.00 0.40 @ 135.00/hr 54.00 0.40 @ 135.00/hr 54.00 0.40 @ 160.00/hr 64.00 0.20 ~ 160.00/hr 32.00 0.90 @ 135.00/hr 121.50 07/18/00 LRG Reviewed and 0.90 @ 160.00/hr 144.00 Page 4 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution revised Liquidation Agreement for Phelaro, Inc. stock. 08/02/00 SWP Preparation of correspondence to opposing counsel regarding in-kind distributions. o8/o3/oo LRG Reviewed correspondence to Attorney Cicconi, and correspondence to Attorney Conner. 08/04/00 LRG Reviewed correspondence to (from) Mark Bradshaw regarding Phelaro, Inc. stock distribution. 08/04/00 SWP Correspondence with Mark Bradshaw at Eckert Seamans regarding the in-kind distribution agreement for Phelaro Inc. Stock. O8/O9/OO SWP Reviewed correspondence from opposing counsel Rogers and sent a fax regarding completing the issue. 0.50 @ 135.00/hr 67.50 0.40 @ 160.00/hr 64.00 0.20 @ 160.00/hr 32.00 0.30 @ 135.00/hr 40.50 0.40 @ 135.00/hr 54.00 Page 5 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution 08/15/00 SWP 08/22/00 SWP O9/O5/O0 SWP 09/06/00 SWP Reviewed correspondence from PNC Bank counsel regarding changes to the Phelaro Inc. in kind distribution agreement. Faxed letter to opposing counsel Cicconi regarding acceptance of the in-kind distribution agreement. Telephone message for opposing counsel Rogers. Reviewed the stock release received from counsel for the estate of William Magaro. Telephone call to opposing counsel. Drafted letter to opposing counsel regarding stock certificate affidavit. Review of affidavit and release. Telephone messages to counsel for Phelaro Inc. 0.30 @ 135.00/hr 40.50 0.30 @ 135.00/hr 40.50 0.40 @ 135.00/hr 54.00 0.60 @ 135.00/hr 81.00 Page 6 GATES& ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments 09/08/00 SWP 09/12/00 LRG 09/12/00 SWP 09/13/00 SWP 09/28/00 09/28/00 09/28/00 Dissolution Edited stock affidavit. Reviewed and revised in-kind stock transfer agreement; inter-office conference with Attorney Pohlman. Reviewed release for Marie's signature regarding the in-kind distribution of shares from Phelaro, Inc. Sent letter to counsel for PNCBank. Telephone call from Atty. Cicconi's office. Cover letter and fax of information for his review. CJS Researched forms to use for partnership consent. CJS Reviewed Phelaro, Inc. stock file. CJS Discussion with SWP regarding stock liquidation agreement. 0.30 @ 135.00/hr 40.50 0.30 @ 160.00/hr 48.00 0.40 @ 135.00/hr 54.00 0.50 @ 135.00/hr 67.50 0.60 @ 100.00/hr 60.00 0.60 @ 100.00/hr 60.00 0.20 @ 100.00/hr 20.00 Page 7 GATES& ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution 09/28/00 09/28/00 09/28/00 09/29/00 09/29/00 09/29/00 CJS Began preparing Phelaro stock liquidation agreement. SWP Telephone call from opposing counsel Elyse Rogers regarding the request from Phelaro, Inc. for a partnership document consenting to the distribution of shares to the individual partners. SWP Conference with CJS regarding the document to be prepared. Attempted phone calls to Attorney Mark Bradshaw. CJS Finished drafting stock distibution agreement. CJS Discussions with SWP regarding stock distribution agreement. CJS Reviewed and revised stock distribution agreement (several times). 0.80 @ lO0.O0/hr 80.00 0.30 @ 135.00/hr 40.50 0.30 @ 135.00/hr 40.50 1.20 ~ lO0.O0/hr 120.00 0.30 @ 100.00/hr 30.00 1.30 @ lO0.O0/hr 130.00 Page 8 GATES& ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution 09/29/00 SWP Reviewed proposed partnership document. 09/29/00 SWP Reviewed proposed partnership consent document, telephone conference with Attorney Mark Bradshaw for Phelaro, Inc. E-mailed agreement to Mr. Bradshaw for his review. 10/03/00 10/03/00 10/21/00 CJS SWP LRG Discussions with SWP and LRG regarding Phelaro, Inc. agreement. Telephone call from Mark Bradshaw. Edited agreement. Telephone call to attorney Rogers and fax of agreement to attorney Rogers. Office conference with Marie Magaro to review and sign Variety Investments stock distribution agreement for Phelaro, Inc. 0.40 @ 135.00/hr 54.00 0.50 @ 135.00/hr 67.50 0.30 @ lO0.00/hr 30.00 0.50 @ 135.00/hr 67.50 0.70 @ 160.00/hr 112.00 Page 9 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution 10/26/00 LRG common stock. Reviewed file regarding Phelaro, Inc. stock distribution, and correspondence to opposing counsel. 0.40 Subtotal professional fees: @ 160.00/hr 64.00 $ 3,730.50 Total current billing: $ 3,730.50 05/02/00 05/18/00 No. 12754 Prior payments/credits No. 13022 Prior payments/credits Previous balance: 1,480.32 ( 1,007.74) 472.58 916.49 ( 0.00) 916.49 $ 1,389.07 $ 1,389.07 Total now due: 5,119.57 Hold Account C: 16,733.17 Current Over 30 Over 60 Over 90 3730.50 0.00 0.00 1389.07 GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite ~100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 Variety Investments Dissolution Statement Date December 22, 2000 Period Ending November 30, 2000 Statement No. 14524 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 11/21/00 LRG Telephone call from Attorney Mark Bradshaw regarding Richard Phelan lawsuit and preacipe to discontinue. 0.30 @ 160.00/hr 48.00 11/21/00 MEH 11/27/00 MEH with LRG re: discontinuance of litigation against Richard Phelan and related companies. Reviewed files and drafted praecipe to discontinue litigation against Phelaro companies; 0.50 @ 155.00/hr 77.50 1.00 @ 155.00/hr 155.00 Page 2 GATES& ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution correspondence to Atty. Kit Conner. 11/27/00 LRG Telephone conference with Attorney Mark Bradshaw regarding discontinuance of Phelan litigation. 11/28/00 }{EH Correspondence to Atty. Kit Conner and Atty. Mark Bradshaw; memo to LRG. 0.20 @ 160.00/hr 32.00 0.30 @ 155.00/hr 46.50 Disbursements 11/09/00 11/09/00 Subtotal professional fees: $ 359.00 Long distance charges. 0.13 Long distance charges. 0.26 $ 0.39 Subtotal disbursements: Total current billing: Payments Received 12/01/00 Transfer to CTC Trust Account: interest earned thru 11/30/00. 05/02/00 NO. 12754 1,480.32 Prior payments/credits ( 1,007.74) 05/18/00 No. 13022 916.49 Prior Payments/credits ( 0.00) 11/02/00 No. 13246 3,730.50 $ 359.39 35.73 o.oo) 472.58 916.49 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Variety Investments Dissolution Prior payments/credits Previous balance: 0.00) 3,730.50 $ 5,119.57 S,119.S7 Total now due: 5,478.96 Hold Account C: 16,806.35 Current Over 30 Over 60 Over 90 359.39 3730.50 0.00 1389.07 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Variety Investments Dissolution Statement Date July 31, 2001 Period Ending July 31, 2001 Invoice No. 15065 MAGDAV-VARINV PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 07/26/01 LRG Telephone call from Doug Smith regarding promissory note. Subtotal Professional Fees: 48.00 Total Current Billing: $ 48.00 Previous Balance: 5,478.96 5,478.96 TOTAL NOW DUE: Magaro, David W., Estate of Page 2 Variety Investments Dissolution Hold Account C: 16,957.68 Current Over 30 Over 60 48.00 0.00 0.00 Over 90 Over 120 0.00 5478.96 GATES & ASSOCIATES, 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Variety Investments Dissolution Invoice Date November 9, 2001 Period Ending October 31, 2001 Invoice No. 16946 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of i 1/2% per month. We now accept the following credit cards for payment~ American Express, Discover, Mastercard & Visa. Professional Fees: 10/03/01 10/09/01 10/09/01 ANP Telephone call from Doug Smith regarding satisfaction piece. ANP Prepared Mortgage Satisfaction for filing regarding Doug Smith. LRG Telephone call from Doug - Smith regarding satisfaction; inter-office conference with Attorney Petarlin regarding satisfaction 0.20 @ 100.00/hr 20.00 1.00 @ 100.00/hr 100.00 0.50 @ 160.O0/hr 80.00 GATES & ASSOCIATES, P.C. Pege 3 Magaro, David W., Estate of Variety Investments Dissolution TOTAL NOW DUE: 5,767.00 Hold Account C: 16,965.30 Current Over 30 Over 60 Over 90 240.04 0.00 0.00 5526.96 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM GATES, HALBRUNER & HATCH, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #30-0000518 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Variety Investments Dissolution Invoice Date February 11, 2002 Period Ending January 31, 2002 Invoice No. 17727 PAYMENT DUE UPON RECEIPT OF STATEMENT. All overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 01/23/02 LRG Reviewed correspondence from IRS regarding partnership income taxes due for calendar year 1998. 0.40 @ 160.00/hr 64.00 Disbursements: 01/02/02 01/16/02 01/23/02 01/23/02 01/30/02 01/30/02 Subtotal Professional Fees: Long distance charges. Long distance charges. Long distance charges. Long distance charges. Long distance charges. Long distance charges. $ 64.00 2.21 2.73 0.39 0.13 0.13 0.52 GATES, HALBRUNER & HATCH, P.C. Page 2 Magaro, David W., Estate of Variety Investments Dissolution Subtotal disbursements: 6.11 Total current billing: $ 70.11 05/02/00 05/18/00 11/02/00 12/22/00 07/31/01 11/09/01 No. 12754 Prior payments/credits No. 13022 Prior payments/credits No. 13246 Prior payments/credits No. 14524 Prior payments/credits No. 15065 Prior payments/credits No. 16946 Prior payments/credits Previous balance: 1,480.32 1,007.74 472.58 916.49 0.00 916.49 3,730.50 0.00' 3,730.50 359.39 0.00 359.39 48.00 0.00 48.00 240.04 0.00 240.04 $ 5,767.00 $ 5,767.00 TOTAL NOW DUE: 5,837.11 Trust account balance B: 16,898.95 Current Over 30 70.11 0.00 Over 60 Over 90 0.00 5767.00 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 STATEMENT Tina M. Mestlin Litigation Statement Date June 12, 2000 Period Ending May 31, 2000 Reference No. 13245 Professional Fees 05/17/00 MEH 05/18/00 MEH 05/19/00 MEH 05/22/00 MEH PAYMENT DUE UPON RECEIPT OF STATEMENT Telephone call to Atty. Wineka. Memo to file. Telephone call from Jill Wineka. Drafted brief in support of objections. Drafted brief in support of exceptions. Correspondence to court administrator. Inter-office conference with TLS. Correspondence to Atty. Lisa Coyne. Drafted brief in opposition to Mestlin's exceptions. Reviewed brief from Atty. Wineka. Drafted reply brief. 0.20 @ 155/hr 2.50 @ 155/hr 2.50 @ 155/hr 1.50 @ 155/hr 2.50 @ 155/hr 31.00 387.50 387.50 232.50 387.50 Page 2 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Tina M. Mestlin Litigation 05/24/00 MEH Drafted brief opposing Mestlin's exceptions. 05/25/00 Correspondence to Cumberland County Court Administration. Inter-office conference with TLS. 05/30/00 }{EH o5/31/o0 MEH Inter-office conference with TLS regarding argument on exceptions. Reviewed reply brief from Atty. Wineka. 1.00 0.30 0.20 0.40 @ 155/hr 155.00 @ 155/hr 46.50 @ 155/hr S1.00 @ 155/hr 62.00 Subtotal professional fees: 1,720.50 Disbursements 05/25/99 05/18/00 05/19/00 05/19/00 05/19/00 05/19/00 05/22/00 05/25/00 05/30/00 CD Mileage - travel to Cumberland Co. Courthouse to file documents. CD Long distance charges. CD Postage. CD Postage. CD Postage. CD Postage. CD Postage. CD Postage. CD Long distance charges. Subtotal disbur~ements: 22.00 7.15 1.00 0.13 3.00 1.65 1.00 0.77 2.00 1.10 3.00 2.31 4.00 1.32 4.00 3.08 1.00 0.13 17.64 Total current billing: 1,738.14 Page 3 GATES & ASSOCIATES, P.C. Magaro, David W., Estate of Tina M. Mestlin Litigation Payments Received 05/25/00 Payment Received (#242) Thank You. ( 2,215.81) ( 2,215.81) 05/18/00 No. 12486 Prior payments/credits Previous balance: 2,215.81 0.00) 2,215.81 2,215.81 0.00 Total now due: 1,738.14 Current Over 30 Over 60 Over 90 1738.14 0.00 0.00 0.00 Ail overdue accounts will be assessed finance charges of I 1/2% per month. WE NOW ACCEPT THE FOLLOWING CREDIT CARDS FOR PAYMENT: AMERICAN EXPRESS, DISCOVER, VISA & MASTERCARD. PLEASE CALL THE OFFICE FOR DETAILS. GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 STATEMENT Tina M. Mestlin Litigation Statement Date February 16, 2001 Period Ending January 31, 2001 MAGDAV-TINMME Invoice No. 13493 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of i 1/2% per month. ,4e now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 01/02/01 MEH 01/02/01 LRG 01/02/01 LRG 01/08/01 MEH Reviewed order and opinion from Judges Hoffer and Hess re: exceptions to initial decision on First and Partial Account. Reviewed Order from Orphans' Court Judges Hoffer and Hess regarding decision on partial accounting. Inter-office conference with Attorney Halbruner to review and discuss Orphans' Court Order. Legal research regarding appealability of order on partial account; drafted notice of appeal and reviewed court rules re: appeal procedure; correspondence to Marie McAndrew. 01/09/01 MEH Telephone call from Marie Magaro, David W., Estate of Tina M. Mestlin Litigation McAndrew; reviewed correspondence from Atty. Jill Wineka; reviewed recent amendments to appellate rules. Ol/lO/Ol MEH Correspondence to Atty. Jill Wineka; conference with TLS re: obtaining docket entry printout for notice of appeal. oi/i2/oi MEH Reviewed docket entry printout from Orphans' Court Clerk; prepared Notice of Appeal; correspondence to Orphans' Court Clerk. 01/12/01 01/25/01 0i/31/01 TLS MEH MEH Traveled to Cumberland County Register of Wills Office and obtained certified copy of Estate docket for Notice of Appeal. Reviewed correspondence from Superior Court re: appeal. Drafted statement of issues presented on appeal. Page 2 Subtotal professional fees: $ 903.00 Costs/Disbursements 0i/08/0i 01/10/01 0i/ii/0i 01/12/01 0i/i2/0i 0i/i2/0i 0i/i2/0i 0i/i2/0i 01/12/01 0i/19/0i Postage. 0.76 Postage. 1.02 Court Costs - Cumberland Co. 8.00 Register of Wills. Mileage - travel to Cumberland 7.24 Co. Courthouse to pick up certified copy of docket. Parking. 0.10 Postage. 3.85 Postage. 0.97 Long distance charges. 0.39 Court Costs - Cumberland Co. 75.00 Register of Wills. Court Costs - Superior Court of 55.00 PA. Subtotal costs/disbursements $ 152.33 Magaro, David W., Estate of Tina M. Mestlin Litigation Total Current Billing: Page 3 1,055.33 Previous Balance: 1,738.14 $ 1,738.14 TOTAL NOW DUE: 2,793.47 Current Over 30 Over 60 Over 90 1055.33 0.00 0.00 1738.14 GATES & ASSOCIATES, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 188 Gaines, PA 16921 STATEMENT Tina M. Mestlin Litigation Statement Date April 5, 2001 Period Ending March 31, 2001 MAGDAV-TINMPfE Invoice No. 15355 PAYMENT DUE UPON RECEIPT OF STATEMENT. All overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees 02/01/01 M-EH 02/02/01 MEH 02/07/01 MEH 02/27/01 MEH 03/01/01 MEH 03/09/0t MEH Telephone call to Superior Court Prothonotary; correspondence to Reviewed correspondence from Superior Court; prepared civil docketing statement for appeal. Prepared Superior Court docketing statement and proof of service; correspondence to Superior Court. Drafted Designation of Contents of Reproduced Record and Statement of Issues Presented on Appeal; began preparing Reproduced Record and began drafting Superior Court Brief. Correspondence to Superior Court. Reviewed correspondence and Magaro, David W., Estate of Tina M. Mestlin Litigation counter-designation of reproduced record contents from Atty. Jill Wineka; drafted reproduced record. 03/26/01 MEH Prepared Reproduced Record; legal research; drafted Superior Court Brief. 03/27/01 MEH Prepared Reproduced Record and instructed JMA re: duplication and binding. 03/28/01 }{EH Drafted Superior Court brief. 03/29/01 MEH Drafted, reviewed and revised brief; conference with JMA re: duplication and binding of brief. Page 2 Subtotal professional fees: $ 3,053.50 Costs/Disbursements 02/01/01 Postage. Subtotal costs/disbursements 1.36 $ 1.36 Total Current Billing: $ 3,054.86 Previous Balance: $ 2,793.47 $ 2,793.47 TOTAL NOW DUE: 5,848.33 Current 3054.86 Over 30 Over 60 Over 90 1055.33 0.00 1738.14 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Tina M. Mestlin Litigation Statement Date May 4, 2001 Period Ending April 30, 2001 Invoice No. 15993 MAGDAV-TINMME PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail cverdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 04/02/01 MEH Filed brief and reproduced record at Superior Court Prothonotary; correspondence to Atty. Jill Wineka. 04/04/01 MEH Reviewed notice from Superior Court re: argument on appeal; correspondence to Superior Court Prothonotary. 04/12/01 MEM Telephone call from Marie Magaro. 04/25/01 MEH Reviewed correspondence from Atty. Michael Bangs and Atty. Lisa Coyne. Subtotal Professional Fees: $ 186.00 Magaro, David W., Estate of Tina M. Mestlin Litigation Costs/Disbursements: 04/02/01 04/06/01 Postage - brief. U.S. Postal 21.01 Service Photocopying brief. / Gancom 419.22 Subtotal Costs/Disbursements: $ 440.23 Page 2 Total Current Billing: $ 626.23 Previous Balance: $ 5,848.33 $ 5,848.33 TOTAL NOW DUE: 6,474.56 Current Over 30 Over 60 Over 90 Over 120 3681.09 0.00 1055.33 0.00 1738.14 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 {717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Tina M. Mestlin Litigation Statement Date June 8, 2001 Period Ending May 31, 2001 Invoice No. 16217 MAGDAV-TINMME PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 05/09/01 ~EH Reviewed correspondence and brief from Atty. Jill Wineka; correspondence to Marie Magaro. Subtotal Professional Fees: $ 201.50 Costs/Disbursements: 05/09/01 Postage. Subtotal Costs/Disbursements: 1.60 $ 1.60 Total Current Billing: 203.10 Previous Balance: 6,474.56 $ 6,474.56 Magaro, David W., Estate of Tina M. Mestlin Litigation Page 2 TOTAL NOW DUE: 6,677.66 Current 203.10 Over 30 626.23 Over 60 3054.86 Over 90 1055.33 Over 120 1738.14 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 STATEMENT Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Tina M. Mestlin Litigation Statement Date July 31, 2001 Period Ending July 31, 2001 Invoice No. 16469 MAGDAV-TINMME PAYMENT DUE UPON RECEIPT OF STATEMENT. All overdue accounts will be assessed finance charges of t 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 07/31/01 MEH Reviewed notice from Superior Court re: argument date; memo to file re: same; correspondence to Marie Magaro. Subtotal Professional Fees: $ 46.50 Total Current Billing: $ 46.50 Previous Balance: 6,677.66 $ 6,677.66 TOTAL NOW DUE: $ 6,724.16 Magaro, David W., Estate of Tina M. Mestlin Litigation Page 2 Current Over 30 Over 60 Over 90 Over 120 46.50 203.10 626.23 3054.86 2793.47 GATES & ASSOCIATES, P.C. 1013 Mumma Road, Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #25-1673750 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Tina M. Mestlin Litigation Invoice Date November 8, 2001 Period Ending October 31, 2001 Invoice No. 16945 PAY~NT DUE UPON RECEIPT OF STATE~-ENT. Ail overdue accounts will be assessed finance charges or 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 10/16/01 10/17/01 MEH Reviewed briefs, updated legal research and prepared for oral argument on appeal to Superior Court; telephone call from Marie Magaro. MEH Prepared for and presented oral argument at Superior Court. 4.50 @ 155.00/hr 697.50 2.00 @ 155.00/hr 310.00 Subtotal Professional Fees: $ 1,007.50 GATES & ASSOCIATES, P.C. Page 2 Magaro, David W., Estate of Tina M. Mestlin Litigation Disbursements: 10/05/01 Court Costs - / Supeme Court of 10.00 Pennsylvania Subtotal disbursements: $ 10.00 Total current billing: 1,017.50 06/12/00 02/16/01 04/05/01 05/04/01 06/08/01 07/31/01 No. 13245 Prior payments/credits No. 13493 Prior payments/credits No. 15355 Prior payments/credits No. 15993 Prior payments/credits No. 16217 Prior payments/credits No. 16469 Prior payments/credits Previous balance: 1,738.14 0.00) 1,738.14 1,055.33 0.00) 1,055.33 3,054.86 0.00) 3,054.86 626.23 0.00) 626.23 203.10 0.00) 203.10 46.50 0.00) 46.50 $ 6,724.16 6,724.16 TOTAL NOW DUE: 7,741.66 Current Over 30 Over 60 Over 90 1017.50 0.00 0.00 6724.16 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.COM GATES, HALBRUNEE & HATCH, P.C. Page 2 Magaro, David W., Estate of Tina M. Mestlin Litigation Disbursements: 12/14/01 12/17/01 Postage. Long distance charges. Subtotal disbursements: 0.57 0.26 $ 0.83 Total current billing: $ 202.33 06/12/00 02/16/01 04/05/01 05/04/01 06/08/01 07/31/01 11/08/01 No. 13245 Prior payments/credits No. 13493 Prior payments/credits No. 15355 Prior payments/credits No. 15993 Prior payments/credits No. 16217 Prior payments/credits No. 16469 Prior payments/credits No. 16945 Prior payments/credits Previous balance: 1,738.14 0.00 1,738.14 1,055.33 0.00 1,055.33 3,054.86 0.00 3,054.86 626.23 0.00 626.23 203.10 · 0.00 203.10 46.50 0.00 46.50 1,017.50 0.00 1,017.50 $ 7,741.66 7,741.66 TOTAL NOW DUE: 7,943.99 Current Over 30 202.33 1017.50 Over 60 Over 90 0.00 6724.16 PLEASE VISIT OUR WEBSITE AT WWW.GATESLAWFIRM.~OM GATES, HALBRUNER & HATCM, P.C. 1013 Mumma Road Suite #100 Lemoyne, PA 17043-1218 (717) 731-9600 Federal I.D. #30-0000518 INVOICE Magaro, David W., Estate of c/o Marie K. McAndrew, Administratrix P.O. Box 666 Wellsboro, PA 16901 Tina M. Mestlin Litigation Invoice Date February 11, 2002 Period Ending January 31, 2002 Invoice No. 18227 PAYMENT DUE UPON RECEIPT OF STATEMENT. Ail overdue accounts will be assessed finance charges of 1 1/2% per month. We now accept the following credit cards for payment: American Express, Discover, Mastercard & Visa. Professional Fees: 01/19/02 01/21/02 MEH Reviewed file re: First and Partial Accounting in order to respond to title objection. LRG Reviewed file; reviewed Orphans' Court documents related to Stumpstewn Road distribution and partial accounting; inter-office conference with Attorney Halbruner regarding 0.70 @ 155.00/hr 108.50 1.50 @ 160.00/hr 240.00 GATES, HALBRUNER & HATCH, P.C. Page 2 Magaro, David W., Estate of Tina M. Mestlin Litigation accounting; telephone conference with Attorney David Getz regarding his title objections involving the estate distribution. 01/21/02 0i/2i/02 MEH LRG Conference with LRG to review title objection re: objections to First and Partial Account; telephone call to Atty. David Getz re: same; prepared documents for review by Atty. Getz; correspondence to Atty. Getz. Reviewed correspondence and related documents by Attorney Halbruner to Attorney David Getz. oi/2i/o2 LRG Reviewed correspondence to Attorney Getz; reviewed numerous court documents related to the distribution and sale of Stumpstown Road property. 2.60 @ 155.00/hr 403.00 0.50 @ 160.00/hr 80.00 0.50 @ 160.00/hr 80.00 GATES, HALBRUNER & HATCH, P.C. Page 3 Magaro, David W., Estate of Tina M. Mestlin Litigation 01/25/02 MEH Conference with LRG re: resolving ~itle objections to pending litigation over First and Partial Account; reviewed file; correspondence to Atty. David Getz itemizing sums which are to be reimbursed to estate; conference with LRG after return from settlement; telephone call to Atty. Jill Wineka. 01/25/02 LRG 01/28/02 MEH Preparation of calculations for various reimbursements due to Tina Mestlin's objections to Partial Account which impair distribution of Stumpstown Road property. Reviewed interim Orphans' Court opinion; conference with LRG re: resolving title objections concerning account 2.50 @ 155.00/hr 387.50 0.80 @ 160.00/hr 128.00 1.50 @ 155.00/hr 232.50 GATES, HALBRUNER & HATCH, P.C. Page 4 Magaro, David W., Estate of Tina M. Mestlin Litigation litigation; legal research re: administrator' s power to distribute real property prior to account confirmation; reviewed correspondence to Atty. David Getz. 01/28/02 LRG Preparation of revised Federal Estate Tax calculations based on Tina Mestlin's possible claims under her Objections; revised calculations on Pennsylvania inheritance tax; preparation of corresondence to David Getz explaining possible tax increases and escrow of funds. 01/29/02 LRG Tax research regarding IRS Estate Tax Closing letters and re-opening federal estate tax audits by IRS after issuance of 2.00 @ 160.00/hr 320.00 0.50 @ 160.00/hr 80.00 GATES, FL%LBRUNER & HATCH, P.C. Page 5 Magaro, David W., Estate of Tina M. Mestlin Litigation Closing letter. Subtotal Professional Fees: $ 2,059.50 Total current billing: $ 2,059.50 06/12/00 02/16/01 04/05/01 05/04/01 06/08/01 07/31/01 11/08/01 12/31/01 No. 13245 Prior payments/credits No. 13493 Prior payments/credits No. 15355 Prior payments/credits No. 15993 Prior payments/credits No. 16217 Prior payments/credits No. 16469 Prior payments/credits No. 16945 Prior payments/credits No. 17542 Prior payments/credits Previous balance: 1,738.14 0.00 1,738.14 1,055.33 0.00 1,055.33 3,054.86 0.00 3,054.86 626.23 0.00 626.23 203.10 0.00 203.10 46.50 0.00 46.50 1,017.50 0.00 1,017.50 202.33 0.00) 202.33 $ 7,943.99 $ 7,943.99 TOTAL NOW DUE: 10,003.49 Current Over 30 Over 60 Over 90 2059.50 202.33 0.00 7741.66 Gates, Halbruner & Hatch, P.C. 1013 Munara Road Suite # 100 Lermyne, PA 17043 (717) 731-9600 Federal I.D. #03-0379998 INVOICE Magaro. David W, Estate of e/o Marie K. MeAndrew, Adnmistratrix P.O. Box 666 Weiis bore, PA 16901 Tina M. Mestlin I~tigation Invoice Date May 6, 2002 Period End/rig April 30, 2002 Invoke No. 20101 PA~ DUE UPON RECEIFr OF STATEMENT All overdue accounts will be assessed finance charges of 1.5% per month. We now accept the following credit cants for payrmnt: American Fa~pmss, Discover, Mastercard Professional Fees 4/15/2002 IvlEH REVIEWED RFL'ENT SUPERIOR COURT DECISION RE: APPEALABILITY OF ESTATE ADMINISTRATION AND ACCOUNTING ISSUES. Current Over 30 31.00 0.00 0.20 ~ 155.00/hr 31.00 Sub-total Fees: 31.00 Total L-hmant Billing: 31.00 Previous Balance Due: 10,003.49 Total NowDue: 10,034.49 Over 60 Over 90 2,0~9.~0 7,943.99 PLEAS E S END ALL PAYMI~TS AND CORRES PONDI~CE TO OL~ LI1HOY~i-E ADDRESS. V~IT OI~ WI~SITE AT WWW. GATES LAWI~RlVICOM CERTIFICATE OF SERVICE I, Cory J. Snook, Esquire, of the law firm of Gates, Halbruner & Hatch, P.C., hereby certify that I served a tree and correct copy of the foregoing document on this date by first-class U.S. mail, postage prepaid, to the following: Ronald M. Katzman, Esquire Goldberg, Katzman & Shipman, P.C. 320 Market Street, Strawberry Square P.O. Box 1268 Harrisburg, PA 17108-1268 (Attorney for Plaintiff) Supreme Court I.D. #85734 1013 Mumma Road, Suite 100 Lemoyne, PA 17043 (717) 731-9600 (Attomey for Defendants) Date: July 7, 2003 EXHIBIT "C" LOWELL R GATES ALBERT N PETERLIN STACEY L NACE TRACl L SEPKOVlC LAW OFFICES OF GATES, HALBRUNER &-HATCH, 1013 MUMMA ROAD · SUITE 100 · LEMOYNE, PENNSYLVANIA 17043 (717) 731-9600 · FAX: (717) 731-9627 BRANCH OFF(CE. 3 WEST MONUMENT SQUARE SUITE WEB SITE: www, Ga~esLawFi~m corn CORRESPONDENCE ADDRESS Lemoyne Office ounu lu, VIA FAX: (717} 234-6808 and Re lar U.S. Mail Ronald M. Katzman, Esquire Goldberg, Katzman & Shipman, P.C. 320 Market Street, Strawberry Square P.O. Box 1268 Harrisburg, PA 17108-1268 RE: Estate of David W. Magaro In Re: Phelaro, Inc., No. 03-0928 In Re: Phelaro of Derry Township, Inc., No. 03-0929 Dear Mr. Katzrnan: Enclosed please find copies of Orders of Court for the above-referenced cases scheduling a hearing for July 24, 2003, at 9:30 am, in Courtroom No. 1, Cumberland County Courthouse, Carlisle, Pennsylvania. As we are the attorneys of record on this estate, we will plan on preparing for and attending the hearing, unless we are able to make arrangements for and to actually transfer the estate administration file for the Estate of David W. Magaro to your law firm in time for the hearing. You previously requested information regarding the Estate of David W. Magaro. Based on your initial request, we were unclear as to your authority for making the request and assumed that we would continue to represent the Estate, especially in light of your prior letter to me stating that our law firm should continue to represent Marie K. Magaro, as Administratrix. Previously, you stated that in our representation of the Estate of David Magaro, we should limit our communications with Marie Magaro to issues related to the Estate, and/or to make all direct communications to you on behalf of Marie. I received Marie Magaro's letter to me dated May 28, 2003 requesting that our law firm "release all files relating to the David W. Magaro estate..." to your law firm. This estate administration has been, and will continue to be, complicated and litigious, and has a number of Ronaid M. Kat2man, Esq. June 10, 2003 Page -2- However, we will release and transfer the file only upon receiving payment in full of our legal fees for the estate administration and the transfer costs. To date, the following legal fees remain outstanding and unpaid bythe Estate of David W. Magaro. These legal fees are catcgofized by billing matter, and are listed as follows: 2. 3. 4. 5. 6. 7. 8. Estate Administration $ 7,374.60 David W. Magaro, Jr. $ 517.50 Loan to Variety investments $ 216.00 Greenray Industries, Inc. $ 3,124.63 Refinance of Allen Street $ 414.61 Variety Machines, Inc. $ 1,177.32 Variety Investments Dissolution $ 5,837.11 Tina Mestlin Liti ation $10.034.49 Total Unpaid Legal Fees ~ In addition, the Magaro file is voluminous and will require numerous hours to prepare it for transfer. It would also be prudent for us to be available for questions given the outstanding issues. As a result, there will be a $2,500.00 fee to cover attorney and paralegal time to process the file transfer. Finally, our law firm has been holding an escrow balance of $16,898.95 on behalf of the David W. Magaro Estate. This escrow balance could be applied against the outstanding legal fees, along with payment of the remaining balance, or the escrow balance could be released to your custody after payment in full of the legal fees and transfer costs. Please let me know how you wish to proeT~in thi~ ~matter. L~well R. Gates LRG:vmr enclosures 'bcc: Jeffi'ey B. Albert, Esq. (with copies of enelosm'~) McKissock & Hoffman, PC IN RE: PHELAR0, INC.,: IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 03-0928 CIVIL TERM O RDER OF AND NOW, this 29'~ day of Apt/I, 2003, upon consideration of Applicam's application for the appointment ora custodian pursuant to 15 Pa. C.S. § 1767(a), a hearing is scheduled for Thursday, July 24, 2003, at 9:30 a.m., 'in Courtroom No. 1, Cumberland County Courthouse, Carlisle, Pennsylvania. BY THE COURT, Charles W. Rubendall, II, Esq. Elyse E. Rogers, Esq. John A. Feichtel, Esq. 210 Walnut Street P.O. Box 11963 Harrisburg, PA 17108-1963 Attorneys for Applicant J.~, esle50le_,--., j. Mark D. Bradshaw, Esq. P.O. Box 11670 Harrisburg, PA 17108 Lo}yell R. Gates, Esq. · Suite 1 oo O;'l 013 Mumma Road Lemoyne, PA 17043-I 144 /N RE: PHELARO OF DERRY TOWNSHIP, INC. IN TI-IE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION- LAW NO. 03-929 CIVIL TERM O~RDER OF COURT_ AND NOW, this 29th day of April, 2003, uppn_ consid~eratio_n of Applicant's application for the appointment ora custodian pursuant to 15 Pa. C.S. §1767(a), a hearing is scheduled for Thursday, July 24, 2003, at 9:30 a.m., in Courtroom No. 1, Cumberland County Courthouse, Carlisle, Pennsylvania. BY THE COURT, Charles W. Rubendall, II, Esq. Elyse E. Rogers, Esq. John A. Feichtel, Esq. 210 Walnut Street P.O. Box 11963 Harrisburg, PA 17108-1963 Attorneys for Applicant Mark D. Bradshaw, Esq. P.O. Box 11670 Harrisburg, PA 17108 ~Lo./fell R. Gates, Esq. ,/~ite 100 1013 Mumma Road Lemoyne, PA 17043-1144 :rc VERIFICATION Dated: The undersigned hereby verifies that the facts averred in the foregoing document are true and correct to the best of his knowledge, information, and belief. This verification is made subject to the penalties of 18 Pa. C.S.A. § 4904 relating to unswom falsification to authorities. CERTIFICATE OF SERVICE I, Cory J. Snook, Esquire, of the law firm of Gates, Halbruner & Hatch, P.C., hereby certify that I served a true and correct copy of the foregoing document on this date by first-class U.S. mail, postage prepaid, to the following: Ronald M. Katzman, Esquire Goldberg, Katzman & Shipman, P.C. 320 Market Street, Strawberry Square P.O. Box 1268 Harrisburg, PA 17108-1268 (Attorney for Plaintiff) 1013 Mumma Road, Suite 100 Lemoyne, PA 17043 (717) 731-9600 (Attorney for Defendants) Date: July 16, 2003 MARIE K. MAGARO, administratrix,: c.t.a, of the Estate of : David W. Magaro, deceased, : plaintiff LOWELL GATES AND GATES, HALBRUNER & HATCH, P.C., Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : 03-2979 EQUITY TERM ORDER OF COURT AND NOW, this 23rd day of 3uly, 2003, this matter having been called on a petition for a preliminary injunction, and the parties having made a resolution, IT IS ORDERED: 1. Estate counsel will forthwith withdraw their appearance for the estate. 2. New counsel will forthwith enter an appearance. 3. There being a claim by current counsel for attorney fees of approximately $28,000.00 for services rendered, and there being held by counsel in escrow $16,898.95, counsel shall keep those funds in escrow until the claim for attorney fees is either resolved by agreement or by the Court. 4. Counsel shall forthwith turn over the estate file to new counsel. 5. New counsel ~K~nald M. Katzman, Esquire For Plaintiff ~ry 3. Snook, Esquire ~ For Defendants prs shall mark this docket satisfied. By the/~o~,~ Edgar B. ~ayl~ 3. £q :11 ti¥ Ronald M. Katzman, Esquire I.D. # 07198 Guy H. Brooks, Esquire I.D. #49672 GOLDBERG, KATZMAN & SHIPMAN, P.C. 320 Market Street P. O. [lox 1268 Harrisburg, PA 17108-1268 (717) 234-4161 Counsel for Plaintiff MARIE K. MAGARO, JAMES P. MCANDREW, and MARIE K. MCANDREW AND JAMES P. MCANDREW PARTNERSHIP, Plaintiffs LOWELL R. GATES, GATES, HALBRUNER & HATCH, P.C., and COMMUNITY TRUST COMPANY, Defendants COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA :No. a2 lTq : CIVIL ACTION - LAW JURY TRIAL DEMANDED PRAECIPE TO: PROTHONOTARY: Please mark the above-captioned matter settled and discontinued. Date: S/~5/O.~ Ron&ld M. Katzman, EsqUire Goldberg, Katzman & Shipman, P.C. 320 Market Street Strawberry Square P. O. Box 1268 Harrisburg, PA 17108-1268 99550.1