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Home My WebLink About08-17-11MID PENN BANK, Objector Matthew E. Hamlin, Esquire Sup. Ct. I.D. #86142 Persun & Heim, P.C. 1700 Bent Creek Boulevard Suite 160 P.O. Box 659 Mechanicsburg, PA 17055-0659 Tel. No. (717) 620-2440 Fax No. (717) 620-2442 mehamlin(a~persunheim.com IN RE: ESTATE OF IN THE COURT OF COMMON PLEAS WENDELL B. STOCKDALE, JR., :CUMBERLAND COUNTY, PENNSYLVANIA Deceased ORPHAN'S COURT DIVISION File No. 2009-01040 OBJECTIONS TO FIRST AND PARTIAL ACCOUNT OF WENDELL B. STOCKDALE, SR. AND JANE STOCKDALE, CO-EXECUTORS AND STATEMENT OF PROPOSED DISTRIBUTION FILED JUNE 24, 2011 AND SURCHARGE ACTION AGAINST CO-EXECUTORS AND WIX, WENGER & WEIDNER OBJECTOR: Mid Penn Bank ACCOUNTANTS: Wendell B. Stockdale, Sr. and Jane Stockdale, Co-Executors REPRESENTED BY: REPRESENTED BY: Matthew E. Hamlin, Esquire Stephen J. Dzuranin, Esquire Sup. Ct. I.D. #86142 Sup. Ct. I.D. #52653 Persun & Heim, P.C. Wix, Wenger & Weidner 1700 Bent Creek Boulevard 508 North Second Street Suite 160 P.O. Box 845 P.O. Box 659 Harrisburg, PA 17108-0845 Mechanicsburg, PA 17055-0659 Tel No. (717) 234-4182 Tel. No. (717) 620-2440 Fax No. (717) 234-4224 Fax No. (717) 620-2442 sdzuranin(a~wwwpalaw.com mehamlin(a~persunheim.com n .... ~? ~ ~_ ;_~ ~ _ _-, -,.~ti~ ~: .. ~?~~ _ .~ ~r ~ ~ .. 1~l ,_J t._ ._... - --i ,` ~`' :D ~/7 'T7 ;7 `-----~ f MID PENN BANK, Objector Matthew E. Hamlin, Esquire Sup. Ct. LD. #86142 Persun & Heim, P.C. 1700 Bent Creek Boulevard Suite 160 P.O. Box 659 Mechanicsburg, PA 17055-0659 Tel. No. (717) 620-2440 Fax No. (717) 620-2442 mehamlin(a,persunheim.com IN RE: ESTATE OF WENDELL B. STOCKDALE, JR., Deceased IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA ORPHAN'S COURT DIVISION File No. 2009-01040 OBJECTIONS TO FIRST AND PARTIAL ACCOUNT OF WENDELL B. STOCKDALE, SR. AND JANE STOCKDALE, CO-EXECUTORS AND STATEMENT OF PROPSOED DISTRIBUTION FILED JUNE 24, 2011 AND SURCHARGE ACTION AGAINST CO-EXECUTORS AND WIX. WENGER & WEIDNER The objector, Mid Penn Bank ("Objector"), in its capacity as trustee of the separate testamentary trusts established under paragraph "FOURTH" of decedent's Last Will and Testament, dated February 15, 1999 ("Will"), for the benefit of decedent's two sons, by and through its attorneys, Persun & Heim, P.C., respectfully states the following: BACKGROUND Wendell B. Stockdale, Jr. ("Decedent") died on October 29, 2009, a resident of Silver Spring Township, Cumberland County, Pennsylvania. 2. On November 6, 2009, Letters of Administration were granted by the Register of Wills of Cumberland County to the Decedent's parents, Wendell B. Stockdale, Sr. and Jane Stockdale to serve as Co-Executors of the above-captioned estate ("Estate"). A copy of the Short Certificate for Letters of Administration is attached hereto as Exhibit "A". 3. Approximately eight months before Decedent's date of death on March 10, 2009, a Divorce Decree was issued by the Court of Common Pleas of Cumberland County between Decedent and his wife Laurie J. Stockdale. (See -Exhibit "A" attached to the Affidavit of Laurie J. Stockdale, sworn to August 1 1, 201 l attached hereto as Exhibit "F"). 4. The value of Decedent's modest estate totaled $786,230.46 consisting of $342,241.44 in probate assets and $443,989.02 in non-probate assets comprised of the following: (a) residence subject to a mortgage with equity of $14,346.63; (b) three late model vehicles with a total value of $14,386.50; (c) household furnishings; (d) life insurance; (e) uncashed checks for $2,691.30; (f) bank account(s); (g) small IRA; (h) coin collection; (i) firearms; (j) stock certificates of either nominal or no value; and (k) life insurance and employee savings plan with Decedent's employer, Hoffman-La Roche Pharmaceuticals ("La Roche") with a combined value of $412,989.25 delivered to the Estate by Laurie J. Stockdale. The Estate was not involved in any litigation to recover the assets. 5. Pursuant to paragraph "FOURTH" of the Will, two separate testamentary trusts (collectively, "Testamentary Trusts") were established to be funded with the residuary of decedent's estate for the benefit of his two sons, David Stockdale (age 23) and James W. Stockdale (age 19). A copy of decedent's Last Will and Testament, dated February 15, 1999 is attached hereto as Exhibit "B". 6. Under paragraph "SIXTH" of the Will, decedent nominated Fulton Bank to serve as trustee without naming asubstitute/successor trustee. Fulton Bank declined to serve in such capacity. With the consent of the trust beneficiaries, Objector was subsequently nominated to serve as substitute/successor trustee. A copy of the filed Nomination and Acceptance of Substitute/Successor Trustee and Fulton Bank's written declination are attached hereto, collectively, as Exhibit "C". 2 That under paragraph "EIGHTH 10." of the Will, the Co-Executors were directed to employ counsel and to pay counsel "reasonable compensation" out of his Estate. That, on June 24, 2011, the Co-Executors filed a First and Partial Accounting ("Account") in which combined legal fees totaling $77,113.50 (exclusive of expenses) for estate administration, asset recovery and a guardianship matter had been paid to the law firm of Wix, Wenger & Weidner, P.C. ("Estate Counsel") as of May 31, 201 1. The total principal account of the estate assets (both probate and non-probate) is $786,230.46. The legal fees represent 9.8% of the value of the combined value of probate and non-probate estate assets. Upon information and belief, Estate Counsel continues to charge the Estate for services on an ongoing basis. 9. That once the Objector became aware of the significant amount of legal fees charged and paid to Estate Counsel, the Objector questioned the propriety of such an amount in light of the modest and less-than complex nature of the Estate. In response, Estate Counsel transmitted copies of an agreement for legal services and itemized Invoices, dated June 16, 2010 and September 27, 2010 totaling $58,661.00 that are attached hereto, collectively, as Exhibit <<D~, 10. Under invoice dated March 29, 2011 Estate Counsel charged and collected from the Estate another $14,452.50 in legal fees (exclusive of expenses) associated with the Co- Executors' account and addressing the issue of the amount of legal fees charged to the Estate. A copy of Estate Counsel's Invoice, dated March 29, 2011 with cover letter dated July 19, 201 I are attached hereto, collectively as Exhibit "E". 11. That, in addition to charging fees of $73,113.50 for "Estate Administration and Asset Recovery", Estate Counsel also undertook to represent decedent's 19 year old minor son, James W. Stockdale, in a guardianship matter for the purpose of recovering a death benefit for the child from a former employer. In that matter Estate Counsel charged and collected from the Estate an additional $4,000.00 in fees while seeking to have the minor child give the Estate promissory notes totaling $4,000.00. The minor child's mother, Laurie J. Stockdale, and natural guardian never authorized such legal work and, the mother recovered a death benefit for the child from Decedent's former employer, making the guardianship unnecessary. Moreover, the guardianship proceeding was never commenced. See the Affidavits of James W. Stockdale and Laurie J. Stockdale sworn to August 10, 2010 attached hereto, collectively as Exhibit "F" and "G", respectively. A copy of Estate Counsel's two invoices, dated June 16, 2010 and July 14, 2010 for guardianship work are attached hereto, collectively, as Exhibit "H". 12. That presumably the itemized invoices issued by Estate Counsel and for which they received payment of 9.8% of the estate assets were based upon contemporaneous time entries/slips in counsel's billing records. 13. That in response to Objector's questioning the significant amount of legal fees, Estate Counsel attempted to reconstruct their time and submitted documents entitled Additions/Supplements to Timeslip Records and Memorandum to Accompany Additions/Supplements to Timeslip Records prepared in 2011 (for legal work in 2009 and 2010) and for which they charged and collected from the Estate another $4,980.00 as part of the March 29, 2011 invoice. (See -Exhibit "E"). Copies of Estate Counsel's documents are attached hereto, collectively, as Exhibit "I". 14. That other than the decedent's former spouse, Laurie J. Stockdale, remaining as beneficiary of decedent's employee benefits plan and life insurance benefits with La Roche following the divorce, the Estate from the standpoint of complexity is fairly unremarkable. Due to both the life insurance and employee benefits being governed by The Employee Retirement Income Security Act of 1974 (`BRISA"), the proceeds of the employee benefits and life insurance were paid to Laurie J. Stockdale; however, she turned the proceeds over to the Estate 4 under the terms of a single page agreement and confirmation/waiver of benefits document executed in January 2010. See the Affidavit of Laurie J. Stockdale attached hereto as Exhibit «F>, 15. Under the terms of the Agreement between the Estate and Laurie J. Stockdale, the Estate received life insurance and employee ERISA benefits totaling $412,989.25. 16. That subsequent to the filing of the Co-Executors' Account, Objector became aware that the Co-Executors without aForm-1099 being issued to the Estate, improperly declared Decedent's taxable pension benefits of $125,108.04 and withholding of $62,554.02 on the Estate's 2010 fiduciary tax return even though for those benefits were the subject of a Form 1099-R issued by Fidelity Investments on behalf of La Roche to Laurie J. Stockdale under her Social Security Number. As a result, the Estate collected a federal income tax refund based upon the improper declaration of the income and withholding in the 2010 fiduciary income tax return since Laurie J. Stockdale declared the income and withholding on her personal income tax return for 2010. To-date, the Co-Executors have refused to file an amended 2010 fiduciary income tax return, thereby placing the Estate at risk for Internal Revenue Service action for collecting an income tax refund of up to $38,053.00 not otherwise due the Estate and improperly declaring the income on its fiduciary tax return. See the Affidavit of Laurie J. Stockdale attached hereto as Exhibit "F" 17. That Laurie J. Stockdale issued a check to the Estate for $26,868.00 representing the tax refund attributable to Laurie J. Stockdale's income withholding for Decedent's employee benefits paid to her and that were previously turned over to the Estate. See the Affidavit of Laurie J. Stockdale attached hereto as Exhibit "F". 18. The Estate has failed and refused to file an amended fiduciary income tax return despite Objector's demand to do so. Moreover, the Estate has returned to Laurie J. Stockdale's tax preparer the 526,868.00 check previously tendered to the Estate and threatened Laurie J. Stockdale with reporting to the Internal Revenue Service despite the Estate's improper handling of this tax matter. Letters exchanged between Laurie J. Stockdale's tax preparer and counsel are attached hereto, collectively as Exhibit "J". 19. Notwithstanding James W. Stockdale, one of Decedent's sons and trust beneficiaries being in need of funds for his college education and living expenses and the Estate holding in excess of $350,000 of liquid assets, the Co-Executors refused to partially fund the testamentary trusts in 2011 so that funds could be used by the Objector for the benefit of Decedent's sons in accordance with the Decedent's intent as set forth in the Will establishing the testamentary trusts. The Co-Executors eventually did partially fund the trusts only after Objector commenced a proceeding to compel the same. 20. That Objector was also required to file a petition to compel the Co-Executors to file a final accounting even though Objector was willing to enter into a written settlement agreement if the excessive and unreasonable legal fees collected from the Estate were returned to the Estate. Estate Counsel's Administration and Asset Recovery Fees Entries 21. Upon examination of Estate Counsel's itemized invoices, the following are the excessive time entries charged for the described legal tasks, principally by Robert C. Spitzer, Esquire: A. Estate Counsel Invoice dated June 16, 2010: DATE DESCRIPTION a. Nov-OS-09 Review b. Nov-06-09 prepare administration papers; telephone conference; email 6 HOURS AMOUNT LAWYER 4.30 860.00 RCS 3.50 700.00 RCS c. Nov-12-09 telephone conference with Mr. 3.20 640.00 RCS Stockdale; prepare for conference d. Nov-13-09 review; correspondence; notices; 5.00 1,000.00 RCS contact account holders; prepare administration documents e. Nov-24-09 prepare for conference; telephone 1.50 300.00 RCS conference with Huntzinger re: fax f Nov-25-09 Review correspondence; intraoffice 9.00 1,800.00 RCS conference with Broker and Bank g. Nov-29-09 review administration steps and 4.50 900.00 RCS correspondence h. Dec-01-09 Review and prepare; assets 4.50 900.00 RCS i. Dec-01-09 Review and reply to email; 2.70 540.00 RCS correspondence and claim forms; deliver securities to Ameritrade; review various emails and reply j. Dec-03-09 Review and reply to email; prepare 3.80 760.00 RCS documents; telephone conference with Mr. Stockdale k. Dec-10-09 Telephone conference with. Mr. 2.30 460.00 RCS Stockdale 1. Dec-16-09 Review and reply to email 4.00 800.00 RCS m. Dec-17-09 review and reply to email; prepare 5.50 1,100.00 RCS and conference 7 n. Dec-18-09 review and correspondence to 2.00 400.00 RCS Agreement; document to Broker o. Dec-22-09 review and analyze assets 3.00 600.00 RCS p. Dec-28-09 review and reply to email; research 3.00 600.00 RCS designation issue q. Jan-06-10 review and research entitlements to 4.50 900.00 RCS Benefits, enforceability of contract; two conferences r. Jan-06-10 intraoffice conference with R. 3.20 720.00 SJD Spitzer to discuss beneficiary designations for life insurance policies and pension plans. Office conference with R. Spitzer and James and David Stockdale, review of and revisions to draft letter to Roche s. Jan-07-10 Review and email; memo re: 4.40 880.00 RCS meeting; review plans t. Jan-07-10 intraoffice conference with R. 2.50 562.50 SJD Spitzer regarding meeting with Co- executors; review of file u. Jan-08-10 Finalize letter; review plans; 4.50 900.00 RCS telephone and emails v. Jan-08-10 intraoffice conference with R. 2.30 517.50 SJD Spitzer regarding uncashed checks. review of and revisions to draft letter to Roche regarding payment of employee benefits. review of Supreme court opinion regarding application of ERISA. 8 w. Jan-11-10 review and reply to email; 3.00 600.00 RCS calculate, correspondence; claim forms x. Jan-12-10 review and prepare documents re: 4.50 900.00 RCS revocation; correspondence and review; research administration tasks y. Jan-14-10 Review and reply to email; revise 2.50 500.00 RCS letters; telephone conference with W. Stockdale z. Jan-15-10 review and reply to email issues; 3.40 680.00 RCS confirm accounts; gather assets; aa. Jan-20-10 valuation and inventory of assets; 4.00 800.00 RCS email; securities, et al; telephone conference bb. Jan-21-10 Transmit to Roche; email re: assets 2.00 400.00 RCS and administration; return documents to counsel cc. Jan-22-10 Roche Claim 4.50 900.00 RCS dd. Jan-26-10 review and reply to email re: 1.50 300.00 RCS pensions; summarize assets telephone conference with Mr. Stockdale re: coins ee. Feb-02-10 review and reply to email; 2.00 400.00 RCS correspondence and assets; analysis 9 ff. Feb-03-10 review and reply to email; 3.00 600.00 telephone conference with PNC; telephone conference with Mr. Stockdale analyze assets and debt; telephone conference; review hh. Feb-08-10 review and reply to email; complete 2.00 400.00 PNC valuation ii. Feb-17-10 review correspondence; prepare 3.20 640.00 asset analysis and return jj. Feb-23-10 review and prepare document 2.50 500.00 kk. Feb-25-10 Review and reply to email; research 3.80 760.00 re: Chef's, documents for Pa. 1500 11. Feb-26-10 research re: Pension 1.20 240.00 mm. Feb-26-10 Research estate further as to 4.20 840.00 Pension and Employment; preparing correspondence benefits nn. Mar-02-10 Review assets; correspondence; 3.20 640.00 Further extensive research; employee benefits oo. Mar-04-10 Review and reply to email re: faxes 2.50 500.00 pp. Mar-12-10 Review for telephone conference; 3.00 600.00 email; telephone conference with Roche Lawyer; emai 1/correspondence qq. Mar-15-10 Review and reply to email issue re: 4.00 800.00 Taxes and Benefits; information from UBS 10 RCS RCS RCS RCS RCS RCS RCS RCS RCS RCS RCS rr. Mar-16-10 Review and prepare for conference; 4.00 conference ss. Mar-19-10 review and prepare "Agreement" 4.00 tt. Mar-22-10 Revise Agreement; review and 4.00 reply to email; telephone conference with Mr. Stockdale as to revisions to Benefits Agreement and transmit Agreement uu. Apr-29-10 Review email re: Astellar; 3.20 telephone conference with Mr. Stockdale; email reply vv. May-24-10 Review 3.20 B. Estate Counsel's Invoice dated September 27, 2010: ww. Jul-06-10 review and reply to email, finalize 4.00 returns xx. Jul-21-10 Further research and 4.50 memorandum for proposed trustee consideration; correspondence re: status; review and reply to email vy. Jul-22-10 Review and finalize letter to l .50 Fulton; telephone conference with attorney; telephone conference with W. Stockdale zz. Jul-23-10 review and reply to email; 3.00 correspondence to attorney; review; extended phone consultation with Mr. and Mrs. Stockdale as to administration 11 800.00 RCS 800.00 RCS 800.00 RCS 640.00 RCS 640.00 RCS 800.00 RCS 900.00 RCS 300.00 600.00 RCS RCS aaa. Jul-29-10 Review and reply to email; 1.50 300.00 research trust bbb. Aug-04-10 review and reply to email re: sale; 2.50 500.00 research re: Trustee and Estate duties ccc. Aug-OS-I O review and reply to email re: fee 4.50 900.00 referral, Release, status and closure including memos and document preparation ddd. Aug-11-10 Review and reply to email 2.70 540.00 eee. Aug-12-10 prepare for conference; 3.00 600.00 ~ntraoffice conference with attorney and client; telephone conference with. W. Stockdale fff. Aug-17-10 revise and prepare draft; 3.00 600.OC telephone conference with W. Stockdale; review and reply to email ggg. Aug-25-10 review and assemble materials 3.00 600.00 hhh. Aug-26-10 review file; telephone conference 3.60 720.00 re: income tax; tax inheritance tax; email re: status iii. Sep-15-10 Review and reply to email re: 3.00 600.00 closing and payoff; telephone conference with Title Agent C. Estate Counsel's Invoice dated March 29, 2011: jjj. Jul-12-10 Review and reply to email; 2.00 400.00 prepare for conference 12 RCS RCS RCS RCS RCS RCS RCS RCS RCS RCS kkk. Nov-ll-10 e-mail from R. Spitzer regarding 1.80 405.00 S1D meeting with clients and issues for discussion. Office conference with M/M Stockdale prepare for conference; 2.00 400.00 RCS intraoffice conference with Mr. and Mrs. Stockdale lll. Jan-21-1 l intraoffice conference with R. 2.00 500.00 SJD Spitzer to discuss strategy to address issues relative to finalizing estate and dispute regarding attorney fees. Office conference with R. Spitzer and M/M Stockdale to address same prepare for conference; 2.50 500.00 RCS intraoffice conference with executors mmm. Jan-25-11 Review time recorder, organize 1.00 200.00 RCS materials supporting communications and Co- executors, including computer files and email records; prepare "subfiles" for various issues raised by beneficiaries nnn. Jan-28-11 Research fee cases 1.20 240.00 RCS ooo. Feb-01-1 l Review and research expense 2.60 520.00 RCS cases; review time records and expand ppp. Feb-18-1 l Review of documentation 1.20 300.00 SID regarding waiver of executors fee. Legal research regarding amount of executors fee and whether waiver of fee is effective 13 Review files regarding 1.50 300.00 RCS calculations of gross amount of estate, and property values and life insurance proceeds qqq. Feb-19-11 Computer records and estate 7.30 1,460.00 RCS materials; fees; review email records; file lists; supplement time sheets (2/20/22) rrr. Feb-21-11 Fees; review and prepare analyses 3.00 600.00 RCS of cases and commentary materials and identification of issues is to which objections may be raised sss. Feb-22-11 Fees; further review and finalize 3.80 statement regarding activities and efforts by co-executors for purposes of evaluation of potential claim for executors' fees, or reimbursement for services over and above executors; duties ttt. Feb-23-11 Fees; revisions to statement and 5.00 review correspondence; prepare memorandum; finalize "additions"; email W.S. and S.D. preparation of "additions" memorandum supplementing time and services re-examinations and narrative memorandum of issues generated by estate administration problems and complexities 760.00 RCS 1,000.00 RCS 14 uuu Feb-24-11 intraoffice conference with R. Spitzer to discuss response to M. Hamlin regarding objections to attorneys fees. Correspondence to M. Hamlin regarding same. Several e-mail communications regarding comments to same 2.80 review; intraoffiee conference with S. Dzuranin; review correspondence regarding communications to bank counsel, and issues to be addressed in regard to possible acceptance of settlement offers concerning objections 2.30 700.00 460.00 SJD RCS It is noteworthy that over the five day period of February 19-24, 2011 Attorney Spitzer charged 24.20 hours in time amounting to $4,980.00 to reconstruct alleged support for the prior excessive charges of Estate Counsel in 2009-2010. 22. Estate Counsel did not create a fund for the Estate, but rather expended excessive and unreasonable amounts of time addressing Decedent's LaRoche life insurance and employee benefits and in reviewing matters with charges by two attorneys for unsubstantiated legal work on this modest Estate. In the end, Estate Counsel wrote letters to La Roche anti did research on ERISA issues; however, the identified work does not support the amount of the charges. Despite what Estate Counsel claims, there were no "months of arguments" with Laurie J. Stockdale regarding the turning over of the employee benefits and life insurance proceeds to the Estate. See- Affidavit of Laurie J. Stockdale attached hereto as exhibit "F." 23. As established by the Affidavit of Laurie J. Stockdale, attached hereto as Exhibit "`F", she was not presented with a written disclaimer by Estate Counsel that she would have executed allowing the benefits to flow directly to the Estate. She was not engaged in any long 15 negotiations or willingness to execute the one page supplementary agreement that Estate Counsel prepared. As soon as she received the life insurance and savings plan proceeds, she turned the checks over to the Estate. 24. That neither .Iames W. Stockdale nor his mother Laurie J. Stockdale retained Estate Counsel to prepare guardianship papers so that a death benefit would be paid directly to James W. Stockdale. Laurie .I. Stockdale, as the legal guardian of Tames W. Stockdale, was able to arrange for the payment of those funds from Decedent's former employer directly to her son; therefore, Estate Counsel's charges of $4,000.00 to prepare guardianship papers (that were not filed) were unnecessary and excessive. See the Affidavits of Laurie J. Stockdale and James W. Stockdale attached as Exhibits "F" and "G", respectively. OBJECTIONS First Objection 25. That, the charges of Estate Counsel for the tasks listed in the itemized invoices are excessive and unreasonable based upon the amount of necessary legal work in the Estate, difficulty of the ERISA issue, absence of any litigation (other than Estate counsel having to perform some research, author a couple of letters to La Roche and Laurie J. Stockdale, prepare a settlement agreement between the Estate and Laurie J. Stockdale and review a settlement agreement) and the absence of any fund created by Estate Counsel for the Estate since the Decedent's employee benefits and life insurance were in existence and Decedent's former spouse was willing, and did turnover the proceeds to the Estate without any litigation. 26. In order to determine the appropriate amount of fees and by way of example, the decision in the Johnson Estate case provides guidance under sliding scale (Johnson Estate, 4 Fid. Rp. 2d 6, O.C. Chester Co. 1983) based upon the probate and non-probate assets of the Estate. Under the Johnson Estate decision, Estate Counsel legal fees should be $18,457.13. Taking into 16 account the additional services provided by Estate Counsel relating to the La Roche employee benefits and life insurance, and applying up to a 1 % charge on the non-probate assets and fee adjustment for such work, an additional $9,573.51 would be a reasonable charge against the Estate making for total legal fees of $28,030.64. The fees under the Johnson Estate analysis are calculated as follows: Probate Non-probate Assets: Life Insurance Roche Plan IRA Total Estate Non-probate at 1 % Probate 7% on first $25,000 6% on next $25,000 5% on next $50,000 4% next $100,000 3% up to $1,000,000 $316,147.69 $125,108.04 $2,733.29 $4,439.89 $1,750.00 $1,500.00 $2,500.00 $4,000.00 $4,267.24 $18,457.13 $342,241.44 $443,989.02 $786,230.46 $342,241.44 $317,241.44 $292,241.44 $242,241.44 $142,241.44 0 Adjustments to Fees Unclaimed Property Filings Ex-wife, matter with employee benefits Income tax issues Difficult estate fee Premium 1 % on probate $3,422.41 1 % on probate .50% on probate Total 17 $4,439.89 $1,711.2.1 $9,573.51 $18,457.1.3 9,573.51 $28,030.64 27. Apply the Lehigh County published fee schedule for legal fees (a copy attached hereto as Exhibit "K") with upward adjustment of 1 % based on the non-probate assets, legal fees would total $36,267.95 calculated as follows: Probate Non-probate Assets: Life Insurance Koche Plan [RA Total Estate Non-probate at 2% Probate 7% on first $25,000 6.5% next $75,000 5% next $150,000 4% next $250,000 $316,147.69 $125,108.04 $2,733.29 $8,879.78 $1,750.00 $4,875.00 $7,500.00 $3.689.66 $26,694.44 $342,241.4 $443,989.0. $786,230.46 $342,241.44 $317,241.44 $242,241.44 $92,241.44 0 Adjustments to Fees Unclaimed Property Filings Ex-wife, matter with employee benefits Income tax issues Difficult estate fee Premium 1 % on probate $3,422.41 1 % on probate 50% on probate Total Second Objection $4,439.89 $1,71 1.21 $9,573.51 $26,694.44 9,573.51 $36,267.95 28. That the $4,000.00 charge to the Estate for preparation of guardianship papers that were not authorized by Laurie J. Stockdale, parent and natural guardian of James W. $tockdale. Furthermore, the preparation of the guardianship papers were unnecessary and never filed, and the charge, in and of itself, was excessive. 18 Third Objection 29. That the Estate has improperly collected from the Internal Revenue Service an income tax refund of $38,053.00. The Estate should be directed to immediately file an amended fiduciary income tax return for 2010 and return to the Internal Revenue Service income tax refund relating to the declaration of withholding from Decedent's employee savings plan. Laurie J. Stockdale will direct her account to return to the Estate that portion of the income tax refund she received for 2010 relating to the declaration of the employee benefits on her personal income tax return. Fourth Objection and Claim for Surcharge 30. The Account's Proposed Statement of Distribution seeks to retain an excessive and unwarranted amount of cash assets totaling X132,177.11 for "Further Administration". 31. That the only outstanding issue for the Estate is the return of excessive legal fees and the filing of an amended federal fiduciary estate tax return for 2010 and return to the internal Revenue Service the refund of $38,053.00 while paying any interest and penalties that are the subject of a surcharge claim herein. 32. The Co-Executors should be directed to collect the $26,868.00 from Decedent's former spouse, file the amended return and distribute to the Objector all remaining cash in the Estate, except for X50,000.00 subject to further distribution to the Objector, together with all amounts to be paid the Estate in the recovery of excessive legal fees, and legal fees and costs incurred by the Objector, and surcharge claims herein. Fifth Objection and Claim for Surcharge 33. The Co-Executors, Wendell B. Stockdale, Sr. and Jane Stockdale, failed to properly administer the Estate and breached their duty by paying excessive and unreasonable 19 legal fees, failing to timely file an account and partially fund the testamentary trust without being compelled to do so by proceedings commenced by the Objector. 34. By reason of the foregoing, the Co-Executors should be surcharged for the excessive legal fees paid by the Estate plus interest and costs and expenses incurred by the Objector associated with the filing of the prior proceedings to compel this accounting, prepare a formal account, partially fund the testamentary trust and recover the excessive and unreasonable attorney's fees charged by Estate Counsel. Sixth Objection and Claim in Surcharge 35. That under Pennsylvania Rules of Professional Conduct Rule 1.~(a), counsel is not permitted to charge excessive fees. 36. By Estate Counsel (Robert C. Spitzer, Esquire) charging grossly excessive and unreasonable fees and continue to incur unwarranted costs and expense to the Estate, counsel has breached its standard of care and as an officer of the court is subject to surcharge in the amount of the overcharged fees and expenses plus interest and Objector's costs and expenses in having to commence the prior to proceedings and the filing and determination of these Objections. WHEREFORE, Objector, Mid Penn Bank, respectfully requests this Court to enter an Order as follows: Awarding the law firm of Wix, Wenger & Weidner the sum of X32,149.30 as attorney's fees (representing the average between Johnson Estate schedule and Lehigh County schedule) plus expenses in this Estate; 2. Directing the law firm of Wix, Wenger & Weidner to pay to the Estate $44,964.20 plus interest at the legal rate within thirty (30) days of the entry of the Order representing excessive fees previously collected from the Estate; 20 Directing Co-Executors to file an amended fiduciary income tax return for 2010 within thirty (30) days of the entry of the Order in which Decedent's employee benefits and related withholding are not declared and return to the Internal Revenue Service that portion of the refund reflected on the Account attributable to that withholding; 4. Surcharging the Co-Executors, Wendell B. Stockdale, Sr. and Jane Stockdale, for the amount owed to the Internal Revenue Service relating t~ the collection of the income tax refund and any federal income tax liability for interest and penalties arising out of the filing of the amended fiduciary tax return for 2010; Surcharging the Co-Executors, Wendell B. Stockdale, Sr. and Jane Stockdale, for legal fees, costs and expenses incurred by Objector in seeking to compel the partial funding of the testamentary trusts, seeking the filing of the Account and for filing determination of the Objections and Surcharge Action; 6. Surcharging the law firm of Wix, Wenger & Weidner for ?44,964.20 plus interest at the legal rate for excessive fees charged and collected from the Estate in interest; and Together with interest and other and further relief this Honorable Court deems just and equitable. Respectfully submitted, Persun & Heim, P.C. Mat hew E. Ha I ,Esquire Sup. Ct. I.D. No. 86142 1700 Bent Creek Boulevard, Suite 160 P.O. Box 659 Mechanicsburg, PA 17055-0659 Tel. No. (717) 620-2440 Fax No. (717) 620-2442 Date: August 16, 2011 21 VERIFICATION I, Daniel J. Madio, 1I, Vice President and Director of Trust and Wealth Management with Mid Penn Bank, have read the foregoing document and verify that the facts set forth therein are true and correct to the best of my knowledge, information and belief. To the extent that the foregoing document and/or its language are that of counsel, I have relied upon counsel in making this Verification. 1 understand that any false statements made herein are subject to the provisions of 18 Pa. C.S.A. §49904 relating to unsworn falsification to authorities. t ~~ ~ Dated: August 16, 2011 ~.. "`~~ Daniel J. Madio, II CERTIFICATE OF SERVICE 1, MATTHEW E. HAMLIN, ESQUIRE, hereby certify that I am serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Civil Rules of Procedure, by depositing a copy of the same in the United States Mail at Mechanicsburg, Pennsylvania, with first-class postage, prepaid, as follows: Stephen J. Dzuranin, Esquire Wix, Wenger & Weidner 508 North Second Street P.O. Box 845 Harrisburg, PA 17108-0845 PERSUN & HEIM, P.C. By: ~ ~ ~ ~~ -T - M tthew E. Ha ,Esquire Supreme Cou . No. 86142 P.O. Box 659 1700 Bent Creek Boulevard. Suite 160 Mechanicsburg, PA 17055-0659 (717) 620 -2440 -Phone (717) 620 -2442 -Fax Attorneys for Objector, Mid Penn Bank Date: August l7, 2011 23209v1 EXHIBIT A CDIVIIVIONW)=ACTH Dr PENNSYLVANIA CDUNTI' Or= CUMBERLAND SHOT C~~-, i Ir1C,~T~ 1, GLP/VDA FARNcP S T R,~i SB~I UGH Regi s ter .for the Probate of Gtli 1? s and Granting Letters o.f Administration in and .for CUMBERLAND County, do hereby certir~r what on the 6th day of November, Two Thousand and 1Vi..n e, Letters T~STAM~IVTAR~' in common corm were granted .by .the Register of said Coun ter, on th e estate o = Vl/P/VDRLL B STOC/~DALF JR late of S/L VB-R SPR//VG T D I/V/VSH/P lF~~s:, Middle, Lasll n said county, deceased, to I/VcNDBLL B STOCKDALF SR and /First, Middle, Lastl JAIVF S7"OCI;DALB lFasL Middre, Lasu and tha ~ same has not since been re~Tol~ed . IIV TESTSMOIt~' WHEP~EDF, 1 have hereunto set my hand and _ar"z?red the eat or said o~iice at CARLISLE, PENI~TSYLTjAl\T?A, tl~iis ~'rd day oT December wo Thousand and 1~7ine. 'i 1 e IVo . A Fi?e IVo. ate of Death . S. # 2009- 09040 29- 09- 7040 9 0/29/2009 epuz ~~ IJOT VALTD WITHOUT ORIGINAL SIGIdATUF:E AI1D IMPRESSED SEAL EXHIBIT B ,, _~ ~,~ ,~Rriwt M ~ ~ ~~ .. LAST V,rILL A1~D TESTAI~NT - ~ N'BNDELL B. ST D CZ~DALE, JIZ. ; I~NOV+~ ALL 1VIEN BZ' THESE.PRESEI~'TS, that I, ~•~- ciirrentiy,~..resding in Camp Hill Cumberland County, Penns}rlvania, being in gooc health and of ,Af ~ ;'~^ ~ do hereb ~ make, declare and publish this as mY Last V,jill and ' ,. sound. and disposing memor}, 3 Te'stament~, Hereby revolting.all former V,~i11s and Codicils heretofore made by me. FIRST: I direct that all .of my legally bindfte nebTtS~de' ~ Remy esmtateaas soon after funeral e};penses shall be paid by my Executrn: herein my decease as shall be found convenient. SECOND: I bequeath my automobiles, household and personal effects and other tangible persnn~lty of like nature (not including.ca5h.and securities) together with any existing insurance thereon as are set forth in a separate unsigned me household goodsh j eweLry anal other my will, to the persons therein .designated. 1 direct that m} personal effects not otherwise specifically listed in such separate memorandum shah be distributed to my.. wife, LAURIE J STOCKDALE, ~n me de they itemsf nohspecificall}c listed shall be be living on the thirty-first day fallow g } added as a part of my residuary estate. T~p~; I give; and bequeath the rest, residue and remainder of my estate, whether real, personal or mixed, and of any nature whatsoever abd ~ erevdayssituate, unto my wine, LAURIE J. STOChDALE, providing she shall, survive m y ~ FOURTH: In the event that my wife, LAURIE J. STQCIiDALE, should predecease me or die v~ithin thirty days of the date .of my death, then I give, devise and bequeath the rest, residue and remainder of my estate, whether real, personal or mixed, and of any nature whatsoever and wherever situate, to the Trustee hereinafter na d JA ~ SS OGKD.~4LE~ for the for the benefit of my minor children, DAVID STOCKDALE an following uses and purposes: l , -The Trustee shall collect all assets of my estate; including the proceeds from any ,,, , ~ ~ ~; ~ ,x, , V be a pa1't of my Pstate -or otherwise payable to the beneficiaries ii.s,.~a~~.^e po~il.e., h:ch ma, cluldren. The Trustee hereunder, anal shall create a separate trust for the benefit of each of my shall hold, manage, invest and reinvest the propert}1 in each trust and collect the income therefrom as specified herein until each child has attained the age of twenty-eight, 1 -_ -- . ~. .. _ ~. --,... _._A__.. .. _ _ .~ _-_-~---- „-...a ~ _ . .. ~~• TT - -. Gl .• ..C'~-..'~..T.~~ l~nhsc~+.ixT'xs~' 1~a ~~~' vSjR ~ Z. (a) V,rhile any child is under the age of twenty-one years, my Trustee shal] use for his benefit so much of the income of leis trust as my Trustee considers necessary or desirable, for the welfare, support; education (including college, both underb aduate and graduaie) and maintenance of such child, .taping into consideration his other readil}~ available assets and sources of income. After each child attains the age of twenty-one years, my Trustee shat] distribute to him in quarterly installments the entire net income from his trust. (b) V~jhenever my Trustee determines that the income of any. child of mine from al_1 sources known to the Trustee is not sufficient for his reasonable support, maintenance and education, and that of his immediate family, the Trustee may pay to .him, or use for his benefit, so much of the principal of his trust as the Trustee determines to be required for those purposes. (c) T~iThen any child.of mine shall.havd attained. the age oftwent}T-six years, my Trustee shall distribute~to him an amount equal to one-half (1/2) of the then remaining principal and .accumulated income of his trust. (d) When any child of~mine shall have attained the .age of twenty-eight years, my Trustee shall distribute to him the then remaining_principal and accumulated income of his trust. (e) Upon the death of any child of mine, the Trustee shall distribute any remaining principal and accumulated income of his trust, as then constituted, to the trust created in this paragraph FOURTH for the benefit of his brother. 2. The Trustee may make payments to or on behalf of any person who is the beneficiary of any trust hereunder but in no event, however, shall payments be made to any creditor or oilier such .person because of anticipation of payment by the beneficiary, and any such claim made by way of anticipation by the beneficiary shall be ~of no validit}~ or legal effect. 3. The Trustee, at its discretion, .may .e~dzaust all of the pxincipa] .and income in carrying out the puzPoses of this trust and should the amount held in trust be or become so small as to make it impractical or economically unfeasible to continue holding said amount in trust, the Trustee may pay the total amount of said trust directly to the bene~~:ciary o: to a parent or guardian of said beneficiary or place said amount in a savings account for the benefit of said minor until said minor becomes of age. 4. The Trustee is to pay the sum of FpUR HUI~IDRED ($400.00) DOLLARS., per month, to JANELL "S. PENTZ, DONALD PEl~TTZ, ox RONALD V~TALTERS, and no other persons, provided that they are serving as the Guardians or Guardian for either of my sons, for z _. .... _._..... ___ ..a~._..,,,,~.,,~„ the maintenance and support of.my sons in the Guardian's residence without t17e requirement of documentation for pa}~ment of utilities, food and similar items not purchased specifically for either son. FIFTH: I hereby .nominate, constitute, and appoint my wife, ~ URIE J. STOChDALE, as Executrix of this, my Last Will and Testament. In the event that my said wife shall predecease me, or be unwilling or unable to act as my Executrix, as aforesaid, then I nominate, constitute and appoint N'ENDELL B. STOCh'DALE, SR., and JANE STOChDALE, as Co-Executors, without necessit}~ for posting security regardless of state of residence, as Co- Executors of this, my Last V~Till and Testament, All references to the Executrix herein shall be applicable to said substitute Co-Executors. SIXTH: I hereby nominate, constitute and appoint FULTON B~iNI ; o~~ its successor, as Trustees of the trusts created by this, my Last Will and Testament, v~Tithout the necessi~~ for posting security regardless of state of residence. SEVENTH: In the event that my wife, LAURIE J. STOCI~ALE, shall predecease me, I hereby designate and appoint JANEL~ S. PENTZ and DONALD PENTZ, or the survivor or them, as guardians of the person or persons of any minor child or children, for the duration of the minority of said child or children, and said guardian may retain custody of said child or children in any locality. It is my desire that said guardians shall keep my children together as a family unit until such time as my youngest child shall reach the age of eighteen years. In the event that :7fINELL S. PENTZ and DONALD PENTZ, should fail to qualify or cease to acf as guardians for my minor children, I hereby designate and appoint RONALD N'ALT.EPS, as guardian for my minor children. , EIGHTH: IVIy E};ecutrix and Trustee shall have, in addition to the powers and authority conferred upon them by law, the follovring additional powers and authority: 1, To sell at public or private sale, exchange, lease, mortgage or pledge any property, real or personal, at any tune constituting a portion of a trust .or my estate, and upon such terms and conditions as the Executrix or Trustee shall deem wise. 2. To invest any money at any time in such bonds, stocks, notes, real estate, mortgages, life insurance, annuities or other securities, ox such property, real or personal, as the Executrix; or Trustee shall deem wise, without being limited by any statutes ox rule of lati~~ regarding investments by the E~:ecutrlx or Trustee. l~ o ~ / ~ -~-~ v, 3 -~::. _.:: ,des - -~-~:~~, w ~~ ~- ~~._..____ __. __ _ _ _ .... _.. ..._ _~r _ _. - - -- ~~.._ 3. To retain, without incurring any liabilit}~, as investments, any property o«~ried by me at the time o~ my death, as long as they deem it wise, and even though such property is not the kind of property an Executrix or Trustee would purchase as an investment; and even though to retain such property might violate sound diversification principles. 4. To cause any security .ox other propert}~ which may constitute a portion of a trust or of my estate to be issued, held ox registered in their own name, or in the name of a nominee, or in such form that title will pass by delivery, 5. T'o consent to the reorganization, consolidation, readjustment of the financial structure, or sale of the assets of any corporation or other organization, the securities of v~Thich constitute a .portion of a trust or of my estate, and to tape any action- with reference to such securities which, in the opinion of the Executri}, or Trustee is necessary .to obtain the benefit of a~,y sach reorganization, consolidation, readjustment or sale; to exercise any conversion privilege or subscription right given to them as owner of any securities constituting a portion of a trust.or of my estate resulting from any reorganization, consolidation, readjustment, sale, conversion or subscription, 6. To pay all costs; taxes, charges..arid expenses in connection with the administration of a trust or of my estate, including such compensations to Executra: or Trustee which shall be in accordance with established fees throughout the period of administration of a trust or of my estate. 7. To determine what is "income" and what is "principal" hereunder, and their decision thereon shall be final; and to purchase securities at a premium or discount, and to apply or charge said premium or discount against income or principal as the Executrix or Trustee may determine. S. To transfer, sell, exchange, partition, lease, mortgage, pledge, give options upon, or othei-~~ise dispose of any property at any tune held by them, at public or private sale, ox otherwise. 9. To boxrow money from any person, firm or corporation, including any corporation acting as an E~>ecutrix or Trustee hereunder, for the purpose of protecting and presen~ing or iinpxo~~ing my estate or trust hereunder; to execute promissory notes or other obligations for amounts so borrov~~ed, 10, To employ legal counsel, accountants, brolters, investment advisors, custodians, managers and other agents and employees and to pay them reasonable compensation out of my estate ox any funds held hereunder to which said compensation is attributable. . ~ . ,~~ ~~~, ~~ .,r_,.....---- --_..__ __ ... _ - - -- ._ .~~ _.. --_- ..~ _ 11. To carry on an~~ business o~~ed or controlled by me at m5 death for ~~hatever period of Mime the3~ shall think proper; and they shall have the power to do any and all things they deem necessary or appropriate, including the power to close out, liquidate or sell the business at such time and upon such terms as to them shall deem best, 12. To do all other acts in their judgment necessar3~ or desirable for the proper and advantageous management, investment and distribution of a trust or of my estate. NINTH: I direct that all transfer and inheritance taxes, state o- federal, assessed because. of my death, whether the funds, propert}~ or insurance proceeds to which such ghats my ~~' ~ `y~~ ~ +~Vti?i11~ or,. not shall. be paid out of rny, residuary estate; a~riib~al`l e~.~,ass under~~thts , ,,,~; . , ~ ~ 1 'eI .',"' -t!~~ ~ ~. „ ,.~, . ~, > , .:. , - .d'~:~:e~+i`~tt~k~i~"~e~a~.~w,N~;~i.: ~.F ~~11•:~°r.,,..1, ~i-avac at. ~79r.~1, tiTriP, nr times.. aI1d lrl SI1C11 niann'er2.:as~.m~r,xc~u,u.,~~ ~ ~lu~ ~ :;. -- 9.- ~ 41sWU ~lr 7f yn. ,~~s _, n ~ .. "~' II~T' ~~ITNESS ~XrI3EREOF, I, N'ENDELL B. STOC1'LDALE, JR , the Testator to this, my T ast W.iI] .and Testar~ent,.typewritten .on f ve sheets of paper which Ihave identified at the bottom of each page by my signature, hereunto set. my hand and seal the /S^ =~ day of ~-~r~~~,~ r/ , 1999.. - / ~. WENDEL'L B. 1S?'DCh'DA~'E, JR The preceding uzsti-ument consisting of this and four other typewritten pages, each identified by the signature of the Testator, T~'ENDELL B. STOCIIDALE, JR., was on this day and date thereof signed, published.and -declared by T~'EIYDELL B. STDCIiDALE, JR., the Testator therein named, as and for 1us Last Will,in the presence of us v,Tho; at lus request; in his presence, and in the presence of each other have subscribed our names as witnesses. 5 I, N'ENDELL B. STOCI%D~iLE, TR., Testator whose name is signed to the attached or foregoing instrument, having been duly qualified according to law, do hereby acknowledge that I signed and executed the instrument as my Last V+Ti11; that I signed it willingly; and that I signed it as my free and voluntary act for the purposes therein expressed. /, ~- ~, R~n~.~LL s. sTOCr~. , .~. Sworn of affirmed to and acl~owledged before me, by FI'EIVI~ELL B. STOCI~ALE', JR., the Testator, the ~ ~t~~, day of ~~ s~+ +~~~ +~~ i, 1999. V (SEAL) ~-~;~'~ .. ~ ~~ ~ ~ ~_ , -~~-~ _'~'?~-~ ~~ Notary Public Notarial Seal public Michelle M. Bross, Notary Susquehanna Twp., Dauphin Count) My Commission ~xplres Sept 23, 2D02 Member, Pennsyhrania Association of IVotarles 6 COIvIlvIO'~~'EALTH OF PEIINSYLVANiA CO-CII~'T ~' OF DAUPHIN f We ~j~ ~ r D ~~ ,C~ r> C :. ~ Fi and `D~~C ~'~r ~ (~ ~ l r; -; the witnesses ~~hose names are. signed to the attached or foregoing instrument, being duly qualified according to law; do depose and say that we were present ad he e~:ecutedritlahis free and oluntar~acnfor the Last V,Till; that he signed willinglS and th purposes therein expressed; that each of us in the hearing and sight of the Testator signed the Will as witnesses; and that to.the best ofd unde~rtolconstrdaint orstun-due ~intluen e,t~e eighteen or more years of age, of sound .nand an ~- ~ ~~~ ~ ~ ~~~ i n~ ~t ^~ ~ ~ ~~~ ~' ~Y Sy,,om or a~'irmed to and subscribed to before me by 1999. andP ~~rrn .~ ~~~"L~~witnesses, this t~~ day of ~ ~ ~ ^~ ~ , ,i (SEAL} Notary Public _~ Notarial Seal Michelle M. Bross, Notary Public - Susquehanna Twp., Dauphin Count~~ ': ~ My Commission Expires Sept. 23, 2D02 ~?~.,%~?~~~.,~~ ~ Memper, Pennsytvanla Association o1 Notaries EXHIBIT C I~ i1 ~ i l ~ ~\ ~. ~~ SEPARATE TRUSTS UNDER THE LAST WILL AND TESTAMENT OF V,'ENDELL B. STOCKDALE, JR. FOR THE BENEFIT OF JAMES STOCKDAI-,E AND DAVID STOCKDALE NOMINATION .AND ACCEPTANCE OF SUBSTITUTE/SUCCESSOR TRUSTEE ~<' 1, THIS AGREEMENT, made this S day of September 2010: WITNESSETH I. THE CIRCUMSTANCES leading up to the execution of this Agreement are as follows: 1. On October 29, 2009, Wendell B. Stockdale (the "Decedent") died testate; a domiciliary of Cumberland County, Pennsylvania. 2, In his Last Will and Testament, dated February 15, 1999 (the "WiL"), the Decedent named his then wife, Laurie J. Stockdale, the beneuciary and Executor of his Estate. The Decedent and Laurie J. Stockdale divorced after the Decedent executed the Will. Accordingly; pursuant to Peimsylvania law, Laurie 7. Stock is treated as having predeceased the Decedent, 3. The Decedent's parents, Wendell B. Sto.clcdale and Jane H. Stockdale, submitted the Will for probate with the Register of Wills for Cumberland County, Pennsylvania (the Register ), The Register appointed Wendell B. Stockdale and Jane H. Stockdale the Co-Executors of the Decedent's Estate. ~}. Undez Paragraph Fotu~th of the Will, the Decedent's residuary estate is held in separate trusts for the respective benefit of the Decedent's sons, James Stockdale and David Stockdale (the "Separate Trusts"), T1~e Decedent named Fulton Bank, or, its successors, as Trustee of the Separate Trusts under Paragraph Si~:th of the Will, The Decedent did not designate a substitute or successor Trustee. 5, B}~ letter dated September 16, 2010, Fulton Bank renounced its right to serve as Trustee of the Separate Trusts as permitted by 20 Pa.C.S.A, §7761(b). Fulton Bank's renunciation is attached hereto as Exhibit "A" and is incorporated herein by reference, Thus, there is a vacancy in trusteeship as defined in 20 Pa. C.S.A. §7'76Q~)(1), p ~_ ~ o L~ ~ ~~ ' ~ ~ r ---1 .- G rn `~ ~ ~ N C~ O Sa ~ --~t ~ Page 1 ~~~= _~ ~ ~ -~ -r, -r, :~~ r"'~ ~i ~~ n~~~ ~~ ~~ ,-, <_... ~ _ '^,_~ .-t _r- `-:~ - ;-~~ . ~~~ O _~, % -\~ ~ i _..-~ .~:..' ~ W 6, James Stockdale and David Stockdale, the beneficiaries of the Separate Trusts, wish Mid Penn Bank to serve as Trustee of the Separate Trusts, IVlid Perin Bank is willing to serve as Trustee of the Separate Trusts. rI, NOW THEREFORE, in accordance with 20 Pa.C.S.A. §7764(c) and 20 Pa.C.S.A. §7761(a)(2) James Stockdale and David Stockdale, hereby nominate and appoint 1Vlid Penn Bank as Trustee of the Separate Trusts created under the Last Will and Testament of Wendell J. Stockdale, Jx, for their respective benefit and h/iid Penn Bank hereby agrees to accept trusteeship of the said Separate Trusts. The Parties agree that this Agreement maybe executed in multiple counterparts, each of which may contain the signatures of one or more o7 the Parties, all of which, taken together, shall constitute one and the same document. .. . J ` S STOCKDALE --~_ DAVID STOCKDALE MID PENN BANK B iT . Page 2 C L ~ R !YL ~J ~- ` ~ RECEI.VED WEALTH STRP,'f.l=GiES ~ I (717) 291-2719 September 16, 2010 Stephanie Kleinfelter, Attorney-Ai-Law Keefer, Wood, Allen ~ Rahal, LLP 635 North 12th Street, Suite 400 Lern;,yne, PA 170 :3 RE: Wendell B. Stockdale, Jr. Trust Dear Stephanie: As a follow-up to our telephone conversation, Fulton $an4%, N.A. will decline to serve as Trustee for the above Trust. IT you need any additional documentation, please let me know. Thank you. Sincerely yours, Carol R. Fahnestock, CTFA Vice President Clermont Wealth Strategies A Division of Fulton Bank N.A. crf 7o eax advice, wt hich may behcontalned !n this document o~ anyt attachment he etcannot b'ecuserd, a~ d is nol intended to be f used any t t ~omot~ gPmarket n)gaoo ~ ommentding toaanother parf~hanitl fra stactionposmatteeaddressediln this commumc C ode, or P One Penn Square, P.O. Box 7989 Lancaster, Pk 17604 clermontwealth.com EXHIBIT D LAW OFFICES OF WIX, WENGER &WEIDNER, P.C. 508 NORTH SECOND STREfi'r POST OFFIC)? BOX 845 HARRISBURG, PA 17108-0845 'ffiLEPHONE (7l7) 234.4182 FAX (717) 234-4224 rs itzer~1a,wwwpalaw.~am NOTICE/AGREEMENT FOR PROVISION OF LIMITEb LEGAL SERVICES DATED: 2009 This Notice/Agreement governs t}le attorney-client relationship of Client with WIX, WENGER &WEIDNER, P.C. (Attorney). ~ These terms and coi~~hav een reviewed, negotiated, adequately discu~~ ,understood, and accepted by ~ CAND WENDELL B. STOCKDAL)~fand one or more, (Client). Client expressly authorizes Attorney, or any attorney wltll Attorney, t0 obtain any and all information from account holders or other third parties, as to the nature, extent, value and other implications or characteristics of the property or interests in grope of the Estate, and/or Trust Estate of WENDELL B. STOCKDALE, TR , without further specific authorization or direction, and hereby expressly directs all third parties to provide same,~rornptly and completely, upon such request, accompanied by a copy of this pale of this document, which shall be sufficient authorization therefor. ~ .. ~ ~ AND ~VENDELL . STO KDALE~ Attorney hereby acknowledges as received from, (Client), the sum of $ 00, as a retainer to be held and applied for the rendition of legal services on a limited basis, and only as to the niattel•, identified as follows: the administration of the Estate, and or Trust Estate of WENDELL B. STOCKDALE, JR., but excluding the preparation of income tax returns, (hereafter called Matter). REPRESENTATIONS OF THE CLIENT AS TO THE FACTS AND CIRCUMSTANCES CONCERNING THE MATTER HAVE A DIItECT BEARING UPON THE DECISION AS TO WHETHER TO RENDER OR NOT LEGAL SERVICES. CLIENT UNDERSTANDS THAT ATTORNEY IS HEREBY RELYING AND SHALL HEREAFTER RELY UPON SUCH REPRESENTATIONS AS TRUE AND CORRECT AND ACCURATE AND COMPLETE. A. FEES 1. APPLICATION OF RETAINER: This retainer wilt be applied to the balances due hereunder, as earned/incurred. If the ftnal bill is less than the retainer, the balance will be refunded at the end of the matter. 2. CREDIT BALANCE: Attorney will credit to Client's account the balance of this retainer for services performed and to be performed in the future for the Matter. 3. FEE BASIS: Many elements enter into setting professional fees, including but not limited to the nature, scope, size, complexity, time requirements and resolution of the Matter. Attorney will represent Client on a basis of either; (a) the amount of time spent on the Matter (including conferences; factual investigations; telephone conferences -- minimum time allocated is between six and fifteen minutes; correspondence; document preparation; travel time; analysis; legal research; review) times its hourly rate. Currently, our hourly billing rates tange fiom $ i 50.00 to $265.00 for attorneys, $45.00 to $110.00 for paralegals, and $ l 00.00 for law clerks. Rates ate reviewed periodically and tnay increase e course o our representation of you. We wilt advise you of any increase of Mr. Spitzer's rate of $200 per h , or (b) ' 4. $ILL]NG; Attorney will bill Client on a monthly or other basis, and asks that the unearned portion of the retainer be kept at the minimum amount of $_ 00 .Accordingly, Attorney may request from time to time that this retainer balance be funded. At the conclusion of this Matter, or at the time of filing various administrative documents, Attorney may send a final bill which may include an additional completion and resultfee based upon the result accomplished, the amounts involved, the importance of the issues, and the skill required as to the services. Attorney expects Client to keep current with its billings and it reserves the right to terminate our Attorney-Client relationship for non-payment of fees or costs. Client further acknowledges that, although fiduciary attorney's fees at•e geneta11y payable by the assets of the estate or trust being administered, courts supervise the payment of such fees, and, ou occasion, deny the fiduciary the right to charge such fees to, or pay such fees from the estate or trust fund. In the unlikely event that this type of situation should arise, Client must understand that attorney looks to Client for payment; and, unless the denial of the payment from the account is directly based upon the actions of attorney, attorney looks to Client for payment, and Client acknowledges his or her or its personal responsibility therefor. 5. COSTS: Costs include expenses such as travel, filing fees, transcripts, facsimile and computer costs, phone calls, copying, witness fees and the like. Costs may be advanced and will be billed on a monthly or other basis except that as to larger cost items (such as depositions) Client may be asked to pay such costs directly. 6. ADMINISTRATNE CHARGES: If our statement of fees and costs is not paid within thirty (30) days from date received, Attorney reserves the right to impose a charge of one (1%) per cent per month on the unpaid balance. This charge will help pay the admitushation required for such amounts. B. COOPERATION I. DOCUMENTS AND MATERIAL FACTS TO ATTORNEY: Client is expected to cooperate reasonably as to the Matter, and provide to Attorney all material facts, information and documents with reasonable promptness and reasonable accuracy. This is essential to the performance of the services contemplated herein, and the successful completion of the Matter. Therefore, it is extremely important that client provide immediately to attorney any documents, papers or correspondence which have been sent directly to client from others, that have any bearing on this Matter, or that have been requested by Attorney. FAILURE TO COMPLY WITH THIS REQUIREMENT CAN HAVE AN ADVERSE IMPACT UPON THE SUCCESSFUL COMPLETION OF THE BATTER AND THE PROVISION OF APPROPRIATE LEGAL SERVICES. 2. STATUS INFORMATION: Attorney will keep Client informed as to the progress of the Matter, and provide Client with copies of all material papers received and transmitted. Increasingly, communications take place as to business and personal matters over more than the traditional telephone and United States mail. Accordingly, and recognizing that no method of communication is fool proof as to its safety and confidentiality, and that no rnetlzod oJenerypting communications is fullysecure, Client authorizesAttorneyto con:municatewith Client, and Clientto communicate with Attorney, byway of cellular telephone, electronic mail, portable telephone, facsimile, orsuch other method or methods deemed reasonably secure by Attorney. 3. PHONE CALLS: Please feel free to call at Client's convenience to discuss any aspect of the Matter. There may be times when Attorney will be in Court, in meetings, or otherwise unavailable, and thus unable to return Client's call as promptly as each of us might like. Attorney will do his best to return Client's call as promptly as possible, and communicate as necessary. C. REPRESENTATION Client acknowledges that Attorney has made no guarantee or promise that the Matter will be successfully concluded; rather Attorney has represented only that he would use REASONABLE PROFESSIONAL CARE to attempt to conclude the Matter successfully. It is understood that the scope of the Matter may change, depending Client's further developments and Client's instructions. This Agreement shall apply to the Matter and such other tasks undertaken for Client by Attorney, as mutually agreed, and confirmed in writing. Client acknowledges that: there is no cetiainty that the Matter will concluded successfully; many factors enter into concluding the Matter, and every situation is different; mistakes, unforeseen issues, and misunderstandings can occur, with an adverse effect upon the completion of the Matter; the Matter may not be successfully completed; Attorney's advice, recommendations or opinions are only that, not a guarantee or assurance that others could not or would not give different advice, or reach other conclusions or complete the Matter in a different way; Client`s active cooperation can have a positive effect upon completion of the Matter. Client acknowledges the importance of accurate information being provided by all of Client's representatives seeking to assist Client as to the Matter. Accordingly, Client authorizes Attorney to disclose facts and communications from Clientto Attorney and from Attorney to Clientto others, to utilize the services of client representatives effectively. D. COQ 'CONDITIONS Client acknowledges that Attorney has disclosed to Client the following Conflicts or Conditions or Limitations, and understanding same, Client wishes to corm engagement of Attorney: 1. In some matters husband and wife, parent and child, other family members, estate or trust (executor or trustee) and beneficiary, corporation or officer/employee/director/shareholder may have conflicting interests. 2. Attomey may consult with or recommend engagement of special counsel for particular issues. 3. This engagement is limited to the "Matter" described above. 4. Attorney represents the "Client" -multiple parties. ~. Other; See attached Supplement. E. TERMINATION: Attorney reserves the right to terminate our Attorney-Client relationship for failure of Client to cooperate as described, if representations are not accurate and complete, or for failure to pay the fees and costs set forth above, upon presentation. Client has the right to terminate this Agreement at any time, for any reason, subject to payment for services xendered and costs advanced. On termination by Client, Attorney will cooperate with Client and/or successor counsel, but the costs, expenses and fees for such cooperation must be paid in advance by Client. If conflict or condition is listed above, or if Attomey is to be paid by a third party, Client, after appropriate and full consultation, explanation and investigation, consents, and after full disclosure (including such explanation of the implications of the conflicts and/or common representation, and the advantages, disadvantages and risks involved, and acknowledging that such common representation will not adversely affect Client or others) hereby consents, authorizes and approves the representation of Client and others by WIX, WENGER & WEIDNER, P.C. Client acknowledges having been advised of hislher/their right to seek advice of independent counsel as to this Matter and hereby consents to waiver of and does hereby waive such right As our relationship continues, there may well be changed circumstances of which Client becomes aware that would or could cause Client to reconsider consent to this joint representation. If this occurs, Client is urged to communicate immediately with Attorney about any such changed circumstances so that these issues can be addressed fully, directly, openly, and consistent with the duties of our office to each person or entity involved. Having read and understood and discussed or having waived reading, understanding and discussion of the foregoing, Client and Attorney have either signed this Notice/Agreement for Legal Services th ay d year forth above, and/or acknowledge receipt of this Notice, upon mailing. "A e ' "Client" ~ s>z/ "Client" LAW OFFICES OF WIX, WENGER & WEIDNER, P.C. 508 NORTH SECOND STREET P, 0. BOX 845 HARRISBURG, PA 17108-0845 Telephone No. 7171234-x182 Fax No. 717/234-4224 November 4, 2009 Re; Proposed Engagement of WIX, WENGER & WEIDNER, P.C. as Counsel Involving the Matter identified in the Notice/Agreement for Legal Services Dear Prospective Ctients: The purpose of this letter is to review for your consideration several important points to which there must be mutual agreement and understanding before we can pt•oceed as Counsel in performing Legal services as to the Matter. Because we have ox have had client relationships with one or more of the parties in this matter, and/or because all patties to the matter have requested this firm to undertake this engagement without the participation of other, adversary counsel, it is important that we describe the limiting circumstances and considerations which affect out• ability to proceed and with respect to which we will require your consent. 1 ~ THE SCOPE OF ENGAGEMENT: you have asked that we perform legal services in connection with the Matter. Because of these relationships of counsel and the partie fho d teacha eery engaging separate and indepe dent servtces effectively and expedtttously, w P counsel, the parties have indicated to us that they are satisfied to proceed by patttctpation in the representation by the firm, without the necessity of engaghng other counsel to advise them as to these matters. 2. LAWYER AS COUNSEL: Under the Rules of Professional Co ad ~h~, s Ie lawyer acting between c] enis, founsel. We can proceed to act in this Iirnited capacity, (a~ We consultwith each of you concerning the implications of common representation, including the ado ided thatanyout onsen~toe ommon r presentation attorney-client prtv~lege, and p after such disclosure; (b) We reasonably conclude that our work can be concluded on terms that are compatible with the best interests of all parties, that each of the patties is able to make adequately informed decisions in the matter, and that there is little risk of material prejudice to either patty's interests if we are unable to complete tf-is task successfully; and (c} We reasonably believe that common representation can be undertaken by us imUartiatly and without improper effect on other representations this firm has We believe that each of the above-referenced considerations is met under the circou tded that which have been presented to us, and we are prepared to proceed with the undertaking, pr you indicate your consent by signing a duplicate copy of this letter and returning it to us for retention, and/or receipt of the mailing hereof. 3. PRIVILEGED COh~VIL1NICATIONS: One of the limitations of this undertaking is that ~' at have any beating what oe ver ore ties communicate fully on al l matters that come to our attention th matter. Accordingly, both parties in this transaction must assume that anything disclosl duo A pr~3Y, or in writing will be availableto the other party. Attorney-clientprivilege will not app y and so out' communications with either party would not be privileged in a subsequent dispute between them. __ _ ~l. A.tSa1;L~~,L vi ~.~. -- DIS On the basis of the presentation made to us by the parties, as to the facts and crr si nif ant or to which the Iega1 services will ne the fundamental goals and object for the mattersgas to which substantial disagreement concexnt g ro riate for completion, the parties have agreed. Accordingly, those goals and objectives are app p based upon the legal services to be performed. It is to therm ~e min collateral issues will arise in the course of the rendition of legal services relating If disagreements or disputes arise which prevent us from completing our en(gbaj a ~ ~~~ no Counsel, or if we determine that the consLe er ati.oL~ Weswill terminate our~repaesentat )on. Upon such longer apply, or upon the request of erth p rtY~ termination and payment of our fees through that date, nable du lipcation cost and expenses payable and work product available (subject to payment of reaso p b such other counsel) to new counsel for both sides: ve the f oafs and objectivese1nor n aefuture Y further rendition of legal services necessary to ac re g dispute arising out of the subject matter of this a sgeven f thelmatter is successfullybaccomplished~ either party in future disputes between the part 5, WAIVER AND DISCLAIMER: In the event of some future dispute between the parties, either party may wish to contend that our fuYrL was somehow unable to discharge its respon ubbeil~ ve should leave btee treat d differenty some aspect of the MATTER which, in retrospect, yo in order to preserve or serve your best interests. We expects oa e Nonetheless as antinduceme tt to in order to avoid any concern or claims of that sort on you P ernent as Counsel, you hereby ~, WENGER & WEIDNER, p.C. to undertake this engag s eciftcally agree to waive any future claim that you might otherwise assert, arising out of our p engagement in this capacity as Counsel. Our willingness to proceed is based upon ou0r~ LEGAL SERVICES AStTO THE MATTER are sufficiently compatible that the RENDITION ~ ~ ~ .... ^:...,~,o ~noio nftMP Tv(ATTFR .. . for the parties. However, by accepting the to al rest ons bility to you because of our relationship as future that we somehow failed in our profession p Counsel in this transaction. very truly r WIC, W & IDNER, l'.C. BY Having read and understood the foregoing, the undersigned hereby consent to the role of Wes, WENGER & WEIDNER, P•C• ~ Counsel in the transactions described herein (or, if not signed but delivered, effective upon such delivery). ~~ t`t~~ , 'AND WENDET~L B. STOCKDALE,Ssz-~ ...-. _ ;...,.. _ .. -------~--~~ - - - J,A'4V OFFICES OF ~VIX, WENGER &WEIDNER, P.C. 568 N. Second STILEET P.O., BOX 845 HAttRI5BURG, PA. 17108 TELEPfIONE # 717-234.4182 FACSARLB # 7t7-231-b602 E•]vIAtL Al)ntiES5: rspltzer(p~wwwpalaw.com PRIV•A,CY POLICY NOTICE Attorneys, like other professionals who advise on personal financial matters, are now required by a new federal law to inform their clients of theil• policies regarding privacy of client information. Attorneys have been and continue to be bound by professional standards of conftdentiality that are even more stringent than those required by this new law. Therefore we have always protected your tight to privacy. In the course of providing our clients with income tax, estate tax, and gift tax advice, we receive significant personal financial information from our clients. If you are a client of Wlx, WENGER & WEIDNER, P.C., You should know that all information we receive from you is held in confidence, and is not released to people outside the firm, except as agreed by you, or as required under an applicable law. We retain records relating to professional services that we provide so we are better able to assist you with your professional needs and, in sO1nal informattanmwe maintain physi all guidelines. In order to guard your non-public perso electronic, and procedural safeguards that comply with our professional standards, Some firms have given consideration to petitioningahe ~~ heasgulations Consi tent with section 313.17 to exempt themselves from the cover g the terms of that section, the Federal Trade Commission has advised that the petition provision only applies if state law is inconsistent with to a la ulerlslobligation tomaintain the precluded from complying with the regulation. Becaus ~'Y information as private is duplicative, but not in be successful Federal Trade Commission does not believe a petition for exernptton would Lastly, one might inquire as to the sanctions f°nanc all st tutionl willtbe precluded from Under the G. L. B. act, one penalty is that the ft divulging any private information. Since a law firtaltFederal Trade Commission act would that sanction would have no meaning. The genet empower the Federal Trade Commission to requiretovmeSl The Federal Trade Conuniss on with respect to the agency's regulating lawyer s ac does have the power to impose a $10,000 Erne per failure to comply, although in practice that seems to be rarely applied• Please advise if you have any questions concerning this notice, or otherwise please advise. W IX, 'WENGER & 'WEIDNER, P. C. .~ WIX, WENGER &WEIDNER A PROFESSIONAL CORPORATION RICHARD H. Wix ATTORNEYS AT LAW STEVEN C.IMLDS THERESA 1. SHADE WIX • 508 NORTH SECOND STREET DAVID R. GETZ POST OFFICE BOX 846 3TEPHENJ.OZURANIN HARRISBURG PENNSYLVANIA 17108-0845 JEFFREY C. CIAFtK , PETER G, HDWLAND (717)234-4182 •~°uMA6°`"""~11uMSeef FAX (717) 234-4224 www.wwwpalaw.com .tune 17, 2010 STATEMENT TO: WENDELL B. STOCKDALE, SR. AND JANE STOCKDALE, IN THEIR CAPAGYTY AS THOMAS L. WENGER DEAN A. WEIDNER RosEar c. sPrrzER Of Counsel Suburoan Omoe: 4705 bUKE STREET HARRISBURG, PA 17108.3017 (717)852.8455 CO-EXECUTORS OF THE ESTATE OF WENAELL B. STOCKDALE, JR. FOR; LEGAL SERVICES, AS MORE PARTICULARLY DESCRIBED ON THEATTACHED DETAILED STATEMENT, RENDERED AS TO COLLECTION AND ADMINISTRATION AND DISTRIBUTION OFASSETS NOT SUBJECT TO PENNSYLVANXA INHERITANCE TAX, HAVING A VALUE FOR SUCHPURPOSES OF APPROXIMATELY $438,1 ~7 DO..... X30,000.00 WIX, WENGER & WEfDNER A PROFESSIONAL CORPORATION RICHARD H.wlx AT70RNEYS AT LAW STEVEN C. W1LOS 508 NORTH SECOND STREET THERESA L. SHADE WIX' DAVID R. GETZ PO5T OFFICE BOX 845 STEPriEN J. DZURANIN HARRISBURG, PENNSYLVANIA 17108.0845 JEFFREY C. CLARK PETER G. HOWIAND (717) 234-4182 ~Ncu,A.mb. N.vaNxn.ttter FAX (717) 234-4224 www.wwwpalaw.com June 17, 2010 STATEMENT TO: WENDELL B. 5TOCKDALE, SR. AND JANE STOCICDALE, IN THEIR CAPACITY AS 7HO1v1AS L. WENOER DEAN A WEIDNER ROBERT C. SPITZER O(Counsel Suburban Office; 4705 DUKE STREET HARRlSBURO, PA 171093041 (757)852-8455 CO-EXECUTORS OF THE ESTATE OF WENDELL B. STOCKDALE :fR. FOR: LEGAL SERVICES, AS MORE PARTICULARLY DESCRIBED ON TIIE ATTACHED DETAILED STATEMENT, RENDERED AS TD ESTATE ADMINISTRATION OF ASSETS SUBJECT TO PENNSYLVANIA INHERITANCE TAX, HAVING A VALUE FOR SUCH PURPOSES OF APPROXIMATELY $222,480..... ~ZO,ooo.oo W1X, WENGER &WEIDNER A PROFESSIONAL CORPORATION RICHARD H. WIX ATTORNEYS AT LAW STEVEN C. WILDS 508 NORTH SECOND STREET THERESA L, SHADE W1%' DAVID R. GETZ POST OFFICE BOX 845 STEPHEN J. DtURANIN HARRISBURG, PENNSYLVANIA 17168.0845 JEFFREY C. CLARK PETER G. HOWLANO (717}234-4182 •we u«,wrws-~mwwser FAX (717) 234.4224 www,wwwpalaw.com June 17, 2Q 10 STATEMENT TO: WENDELL B. STOCKDALE, SR. AND JANE STOCKDALE, IN THEIR CAPACITY AS THOMAS I.WENGER DEAN A. WEIDNER ROBERT C. SPITLER Ot Coumel Suburban OKCe: 4705 DUKE STREE7 HARRISBURG, PA 17108.3041 (717)852.8455 CO EXECUTORS OF THE ESTATE OF WENDELL B. STOCKDALE, JR. FOR: LEGAL SERVICES, AS MORE PARTICULARLY DESCRIBED ON THEATTACHED DETAILED STATEMENT, RENDERED AS TO COLLECTION AND ADMINISTRATION AND DISTRIBUTION DFASSETSNOT SUBJECT TO PENNSYLVANXA INHERITANCE TAX, HAVING A VALUE FOR SUCH PURPOSES OF APPROXIMATELY $438,107.00..... X30,000.00 . t ~1 Wix Wenger & Weidner 508 North 2nd Street P.O. Box 845 Harrisburg, Pennsylvania 17108 Ph:717-234-4182 Fax:717-234-4224 Mr. Wendell Stockdale, Sr., Executor 47 Deer Ford Drive Lancaster, Pennsylvania 17601 Attention: RE; Estate Administration and Asset Recovery DATE DESCRIPTION Nav-03-09 telephone conference with re: administration Nov-OS-09 Review Nov-06-09 prepare administration papers ;telephone conference ;email Nov-10-09 telephone conference re: issues ;review ; message to attorney Nov-11-09 review and prepare administration documents ; telephone conference with Mr. Stockdale Nov-12-09 telephone conference with Mr. Stockdale ; prepare for conference Nov-13-09 review ;correspondence ;notices ;contact account holders ;prepare administration documents intraoffice conference with R. Spitzer regarding Estate of 1~t~endel] Stockdale. review of materials regarding same. Nov-16-09 telephone conference with re: tax return ; telephone canference with Mr. Stockdale ; intraoffice conference ;correspondence with tax preparers June 16, 2010 File #: 8278-15425 Inv #: 19596 HOURS AMOUNT LAWYCR 0.20 40.00 RCS 4.30 860.00 RCS 3.50 700.00 RCS 0.50 100.00 RCS 0.70 140.00 RCS 3.20 640.00 RCS 5.00 1,000.00 RCS 0.90 202.50 SJD 1.80 360.00 RCS - ~ Irsvoice #; 1959b intraoff ce conference with R. Spitzer regazding review of materials and work on the Estate of Wendell Stockdale file, e-mail from R. Spitzer. intraoffice conference with D. Williamson regarding same. intraoffice conference with S. Dzuranin re: new estate Nov-17-09 Review re: safe deposit box and materials (STD) Estate of Wendell Stockdale Nov-18-09 Review ;telephone conference with Dept of Revenue ;telephone conference with Batrlc ; fax assets Nov-19-09 Prepare documents ;review and reply to email review of file and documents provided by clients; miscellaneous telephone conversations with asset holders; preparation of summary chart; intraoffice conference with S. Dzuranin Nov-20-09 Revoew arnd reply to email ;reply email re: conference intraoffice conference with R. Spitzer; review of memo and additional file information provided by attorney; update asset chart; organize documents Nov-23-09 review ;prepare document ;prepare agenda additional organization of client documents; chart update Nov-24-09 prepare for conference ;telephone conference with Huntzinger re: fax Nov-25-09 Review correspondence ;intraoffice conference with Broker and Bank Nov-29-09 review administration steps and correspondence Dec-O1-09 Review and prepare ;assets Review and reply to email ;correspondence Page 2 0,40 90.00 SJD 0.40 34.00 DBW 2.50 500.00 RCS 0.10 8.50 DBW 0.70 140.00 RCS 0.60 120.00 RCS 3.00 255.00 DBW 0,80 160.00 RCS 2.00 170.00 DBW 0.70 140.00 RCS 1.10 93.50 DBW 1.50 300.00 RCS 9.00. 1,800.00 RCS 4.50 900.00 RCS 4.50 900.00 RC5 2.70 540.00 RCS Invoice #: 19596 Page 3 and claim foams ;deliver securities to Ameritrade ;review various emails and reply. intraoffice conference with R. Spitzer re; 0.30 25.50 DBW estate Dec-02-09 intraoffice conferences with R. Spitzer re: 0.20 17.00 DSW estate Dec-03-09 Review and reply to email ;prepare documents 3.80 760.00 RC5 telephone conference with Mr. Stockdale Dec-04-09 various calls as to stock representation ;memo 1.00 200.00 RCS Dec-08-09 Review as to distribution of life insurance 0.50 100.00 RCS proceeds intraoffice conference with R. Spitzer re: 0.60 51.00 DBW estate matters; receipt and review of unclaimed PA and OH property claims submitted by client; correspondence to PA submitting Affidavit & Indemnification Agreement Dec-09-09 telephone conference with Wendell re: 0.40 80.00 RCS insurance ;telephone conference with Broker ; memo several a-mail communications regarding 0.20 45.00 SJD outstanding issues. Dec-10-09 telephone conference with Mr. Stockdale 2.30 460.00 RCS Dec-11-09 Review ;calls (Mary) to Hartford ;review and 1.80 360.00 RCS reply to email ; telephone conference with Mr. Huntzinger ;email intraoffice conferences with R. Spitzer and D. 1.40 315.00 SJD Williamson to discuss numerous issues relative to handling of estate. review of several summaries and charts of assets and courses of action to be taken. review, summarize, and file additional 2,90 246.50 DBW documentation provided by client and attorney; preparation of correspondence to banks and employers for date-of--death valuation and information requests Dec-14-09 review and reply to email 0.80 160.00 RCS Ixlvoice #: 19596 Page 4 additional review of documents provided by 3.40 289.00 DBW client; summary update; preparation of excel sheets per attorney instruction Dec-15-09 review and reply to email re: assets and values 1.50 300.00 RCS prepare note intraoffice conference with D. Williamson 0.40 90.00 SJD regarding status of case. review of summary charts and excel spreadsheets. intraoffice conference with R. Spitzer; 2.30 195.50 DBW additional preparation and/or revisions to summary sheet/asset chart; intraoffice conference with S. Dzuranin; additional ptepat•ation and/or revisions to summaries Dec-16-09 Review and reply to email 4.00 800.00 RCS intraoffice conferences D. Williamson and R. 0.40 90.00 SJD Spitzer with update on status of case. review of same. intraoffice conference with R. Spitzer re; 0.10 15.50 JCC poteri~ial need for legal action intraoffice conference with S, Dzuranin; 0.40 34.00 DBW update forms Dec-I7-09 teveiw and reply to email ;prepare and 5.50 1,100.00 RCS conference Dec-18-09 review and correspondence to Agreement ; 2.00 400.00 RCS document to Broker Dec-21-09 review and reply to email 0.30 60.00 RCS Dec-22-09 review and analyze assets 3.00 600.00 RCS review of materials on case. intraoffice 0.40 90.00 SJD conference with R. Spitzer regarding same. memo from R. Spitzer. Dec-23-09 review and reply to email re: house and guns 0.40 80.00 RCS Dec-28-09 review and reply to email ; research 3.00 600.00 RCS designation issue intraoffice conference with R. Spitzer 1.60 360.00 SJD regarding pension and employee benefits. • ~ Invoice #: 19596 Page 5 several a-mail conununications regarding same. legal research regarding rights under ERISA plans. Dec-29-09 review and reply to email 0.20 40.00 RCS e-mail from R, Spitzer with comments to 0.20 45,00 SJD issues from client. Dec-30-09 conference re: materials 0.40 $0.00 RCS intraoffice conference with S. Dzurat~in re: 0,10 8.50 DB W estate Dec-31-09 intraoffice conference with D. Williamson 0.40 90,00 SJD regarding updating summary charts. intraoffice conference with S. Dzuranin re: 0.20 17,00 DBW new information reed for processing Jan-04-10 review of file materials.. 0.20 45.00 SJD Jan-OS-10 memo from R. Spitzer regarding meeting. 0.50 112.50 SJD e-mail to R, Spitzer regarding same. review of legal precedents regarding designation of beneficiaries in pension plans and effect of divorce agreement on same. Jan-06-10 review and research entitlements to Benefits, 4.50 900.00 RCS enforceability of contract ;two conferences intraoffice conference with R. Spitzer to 3.20 720.00 SJD discuss beneficiary designations for Iife insurance policies and pension plans. office conference with R. Spitzer and James and David Stockdale. review of and revisions to draft letter to Roche. Jan-07-10 Review and email ;memo re: meeting ;review 4.40 880.00 RCS plans intraoffice conference with R. Spitzer 2.50 562.50 SJD regarding meeting with Co-executors. review of file, Jan-08-10 Finalize letter ;review plans ;telephone and 4,50 900.OU RCS emails intraoffice conference with R. Spitzer 2,30 517.50 SJD regarding un cashed checks. review of and .Invoice #: 19596 Page 6 revisions to draft letter to Roche regarding payment of employee benefits. review of Supreme Court opinion regarding application of ERISA. intraoffice conference with S. Dzuranin and J. 0,10 8.50 DBW Yocum xe: uncashed checks summary Jan-11-10 review and reply to email ;calculate, 3.00 600.00 RCS correspondence ;claim forms e-mail from R. Spitzer regarding un cashed 0.80 180.00 SJD check for ICronos. review of file. revisions to correspondence to several companies regarding un cashed checks. Jan-12-10 review and prepare documents re: revocation ; 4.50 900.00 RCS correspondence and review ;research administration tasks intraoffice conference regarding letters for 0.10 22.50 SJD uncashed checks. Jan-13-IO review and reply to email 0.30 60.00 RCS Jan-I4-I O review and reply to email ;revise letters ; 2.50 500.00 RCS telephone conference with W. Stockdale intraoffice conference with R. Spitzer 0.30 67.50 SJD regarding resolution of pension benefits issue. receipt and review of correspondence from attorney for Laurie regarding same. Jan-15-10 Review and reply to email issues ; confirm 3.40 680.00 RCS accounts ;gather assets Jan-19-JO Prepare advertising ;telephone conference re: 0.50 100.00 RCS benefits Jan-20-10 Valuation and Inventory of assets ;email ; 4.00 800.00 RCS securities et al ;telephone conference intraoffice conferences with D. Wiliiamson 0.20 45.00 SJD regarding status of updates to asset listings. intraoffice conference with S. Dzuranin; 0.70 59.50 DBW review of memo from R. Spitzer re: additional assets; review of asset chart; update asset summary (gun information) Invoice # Jan-21-10 Jan-22-10 Jan-25-10 Jan-26-10 Jan-27-]0 Jan-28-10 Jan-29-10 Feb-01-IO Feb-02-IO Feb-03-10 Feb-04-10 Feb-08-10 Feb-15-10 Feb-16-10 19596 Page 7 transmit to Roche ;email re: assets and 2A0 administration ;return documents to counsel update asset chart 0.10 Roche Claim 4.50 review and reply to email 0.30 review and reply to email re: pensions ; 1.50 summarize assets telephone cwiference with Mr. Stockdale re: coins receipt and review of correspondence from 0.20 Penn State with replacement check. a-mail to R. Spitzer regarding same and status of matter. telephone conference with accountant 0.30 receipt and review of correspondence from 0.20 Columbia Water Company with replacement check. memo to R. Spitzer regarding same. telephone conference with Mr. Stockdale re: 0.80 track repair/sale receipt and review of correspondence fiom 0.20 Connputershare regarding request for replacement checks. memo to R. Spitzer regarding same. review and reply to email ;correspondence and 2.00 assets ;analysis review and reply to email ;telephone 3.00 conference with PNC ;telephone conference with Mr. Stockdale analyze assets and debt ; telephone conference ;review review and gather assets and info ;review and 1.80 replyl to email. review and reply to email ;complete PNC 2.00 valuation review and reply to email re: Roche and 1.20 auction ;review auction contracts review and reply to email ;review and prepare l .80 tax data 400.00 8.50 900.00 60.00 300.00 RCS DBW RCS RCS RCS 45.00 SJll 60.00 RCS 45.00 SJD 160.00 RCS 45.00 SJD 400.00 RCS 600.00 RCS 360.00 RCS 400.00 RCS 240.00 RCS 360.00 RCS Invoice #: 19596 Page 8 Feb-17-10 review cot7espondences ;prepare asset 3.20 640.00 RCS analysis and retuzn Feb-I8-10 t•eview and correspondence 0.50 100.00 RCS Feb-22-10 review and organize materials ;review and 1.30 260.00 RCS reply to email correspondence ;summarize assets Feb-23-10 review and prepare document 2.50 500.00 RCS Feb-24-IO Review email materials ;add changes 1.80 360.00 RC.S Feb-25- l 0 Review and reply to email ; research re: Chefs 3.80 760.00 RCS documents for Pa. 1500. Feb-26-10 research te: Pension 1.20 240.00 RCS Research estate further as to Pension and 4.20 840.00 RCS Employment ;preparing correspondence benefits Mar-02-10 Review assets ; correspondence ;Further 3.20 640.00 RCS extensive research ;employee benefits Mar-04-10 t•eview and reply to email t•e: faxes 2.50 500.00 RCS Mar-08-10 Review and prepare documents ;review and 0.80 160.00 RCS reply to email Mar-12-10 Review for telephone conference ;email ; 3.00 600.00 RCS telephone conference with Roche Lawyer ; emaiUcorrespondence Mar-15-10 Review and reply to email issue re Taxes and 4.00 800.00 RCS Benefits ;information from UBS Mar-16-10 Review and prepare for conference ; 4.00 800.00 RCS conference Mar-17-10 review ;telephone conference with UBS 0.30 60.00 RCS Mar-19-10 review and prepare "Agreement" 4.00 800.00 RCS Mar-22-10 revise Agreement ;review and reply to email ; 4.00 800.00 RCS telephone conference with Mt•. Stockdale as to revisions to Benefits Agreement and transmit Agreement Invoice #: 19596 Page 9 Mar-26-10 receipt and review of correspondence from S. 0. i 0 22.50 SJD Sholk with Settlement Agreement with Hoffman-La Roche, Inc. Mar-29-10 a-mail to and a-mail from R. Spitzer sending 0.10 22.50 SJD and discussing drafr Settlement Agreement with Hoffmann-LaRouche, Inc. Mar-31-10 review and reply ;communicating with O.SO 100.00 RCS attorney Apr-07-] 0 e-mail fi•om R, Spitzer to client. regarding sale 0.10 22.50 SJD of house. Apr-14-] 0 receipt and review of package from client. 0.10 22.50 SJD e-mail to R. Spitzer regarding same. Apr-26-10 review and reply email ;review status ; 0.60 120.00 RCS telephone conference with attorney ;telephone conference with W. Stockdale Apr-28-10 review and reply to email re: Astellas an 2.50 500.00 RCS Auction Apr-29-10 review email re: Astellar ;telephone 3.20 640.00 RCS conference with Mr. Stockdale ;email reply review and telephone conference with W. 0.60 120.00 RCS Stockdale ;conference re: Roche Documents May-01-10 review aid reply to email re: Roche property 1.00 200.00 RCS taxes May-04-10 review correspondence ;transmit agreement to 0.50 100.00 RCS Roche May-06-10 review and reply to email 0,30 60.00 RCS May-12-10 review materials 0.70 140.00 RCS May-17-10 review and reply to email 0.30 60.00 RCS telephone conference re: appointment ;review 0.30 60.00 RCS and reply to email May-24-10 Review 3.20 640.00 RCS Jun-07-10 review and analyze tax issues ;email 1,70 340.00 RCS ' •lnvoice ~: 19596 Page 10 Jun-08-10 review and email W, Stockdale and accountant 1.80 360.00 RCS prepare Explanation for 1500 Totals 227.30 $43,832,0() TIME SUMMARY Time Keeper Rate Hours Amount RCS $200.00 191.90 $38,380.0( SJD $225.00 17.40 $3,915,00 JCC $155.00 0,10 $15.50 DBW $85.00 17.90 $1,521,50 DISBURSEMENTS Nov-30-09 Photocopy Charge (@ $,15/page) 53 @ O.IS 7.95 Feb-12-10 Advertising (Publication Cost) 75.00 Feb-19-10 Advertising (Publication Cost) 113.20 Totals $196.15 Total ~'ee & Disbursements 544,028.15 Interest Due $0.00 $rrlance Now Due $44,028.25 For your convenle»ce: lf'e accept Yisa, Mastercard and Discover ESTIMATEA FEE BALAiNCB $5,871.85 BALANCE $50,000.00 Wix Wenger & Weidner 508 North 2nd Street P,o. Box 845 1-Iarrisburg, Pennsylvania 17108 Ph: 717-234-4182 Fax: 717-234-4224 September 27, 2010 Ivlr. Wendell Stockdale, Sr., Executor 47 Deer Ford Drive Lancaster, Pennsylvania 17601 File #: 8278-15425 Tnv #; 20248 Attention: ~; Estate Administration and Asset Recovery HOURS AMOUNT LAWYER DATE DESCRIPTION 0.50 100.00 RCS Sun-30-I 0 review and prepare 3u1-06-10 review and reply to email, finalize returns 4.00 800.00 RCS 1.20 240.00 RCS Jul-07-10 Finalize inventory ;tax Jul-13-10 Review and reply to email ;document to 1.80 360.00 RCS Fulton repare for conference with w and i 2.80 560.00 RCS Jul-l4-10 p e rev Executors Jul-16-10 Review ; file PA Inheritance Tax ;Inventory 1.00 200.00 RCS lp al research re: duty to support child by le 1.00 215.00 JCC Jul_19_ g paying college costs l fro submission to Fulton for i 1.50 300.00 RCS Jul-20-10 a prepare mater .resolution of Trustee Sucession Issue Further research and memorandum for 4.50 900.00 RCS 3u1-21-10 proposed trustee consideration ; correspondence re: status ;review and reply to email Review and finalize letter to Fulton ; 1.50 300.00 RCS Ju]-22-10 telephone conference with attorney ; Invoice #; 20248. Fage 2 telephone conference with W. Stockdale Jul-23-10 review and reply to email ;correspondence to 3.00 600.00 RCS attorney ;review ;extended phone consultation with Mr. and Mrs. stockdale as to administration e-mail from R. Spitzer with communications 0.50 112.50 SJD with S. Kleinfelter. intraoffice conference with R, Spitzer to discuss same. Ju]-26-10 review and reply to email ;telephone O,gp 160.00 RCS conference with W. Stockdale Jul-29-10 Review and reply to email ;research trust 1.50 300.00 RCS Aug-02-10 review and reply to email re: home telephone 0.90 180.00 RCS conference with W. Stockdale ;email Aug-03-10 review and reply to email ;telephone 0.40 80.00 RCS conference with W. Stockdale iew and reply to email re: sale ;research RCS 2.50 500.00 Aug-04-10 rev re: Trustee and Estate duties view of memo from R. Spitzer re: UTA 0.20 39.00 PGH re e-mail from R. Spitzer regarding resolution of 0.30 67.50 SJD Trust in light of Trustee rejecting appointment. Aug-OS-] 0 review and reply to email re: fee referral, 4.50 900.00 RCS Release, status and closure including memos adn doucment preperation e-mail from R. Spitzer regarding replacement 0.40 90.00 SJD trustee and issues to b$ resolved to finalize the estate. Aug-06-10 intraoffice conference with R. Spitzer 0.30 67.50 SJD regarding finalizing estate and impact on trust and distribution to beneficiaries. Aug-10-10 review and reply to email ; telephone 0.50 100.00 RCS conference with Stephanie ;telephone conference with Wendell Aug-11-10 Review and reply to email 2.70 540.00 RCS are for conference ;intraoffice 3.00 b00.00 RCS Au 12-10 g- prep with attorney and client ; f erence con Invoice #: 20248 Page 3 telephone conference with W. Stockdale intraoffice conference with R. Sptizer to 1,10 247.50 SJD discuss background in preparation for meeting with S. Kleinfelter, office conference with S. Kleinfelter and R. Spitzer. 0 80 00 160 RCS Aug-1 ~-10 review and reply to email ;telephone , conference with W. Stockdale Aug-17-10 revise and prepare draft ;telephone 3.00 600,00 RCS conference with W. Stockdale ;review and reply to email Aug-18-10 review and reply to email re: relationships 0.30 60.00 RCS Aug-19-10 review and rely to email ;telephone 0.20 40.00 RCS conference with W. Stockdale telephone conference re: 0.20 40.00 RCS StatUS Aug-20-10 review and reply to email ;telephone 0,80 160.00 RCS conference with Wendell Stockdale Aug-23-IO review sales agreement dates p,~0 100.00 RCS Aug-25-10 review and assemble materials 3,00 600.00 RCS Aug-26-10 review ;telephone conference re: tax ;tax 0.40 80.00 RCS revenue review file ;telephone conference re: income 3.60 720.00 RCS tax ;tax Inheritance tax ;email re: status Aug-27-10 a-mails from R. Sptizer to client regarding 0.50 112.50 SJD status of estate administration and steps to complete the same. Aug-30-10 review and reply to email re: status 0,40 80.00 RCS f materials from R. Spitzer regarding i 0.20 45.00 SJD ew o rev justification of attorney fees. Sep-O1-10 review and reply to email re: status 0.50 100.00 RCS Sep-02-10 review and reply to email 0.30 60.00 RCS Invoice #; 20248 Sep-03-10 review and prepare inventory ;file inventory ; pay taxes ;telephone conference with Mr. Stockdale Sep-04-10 finalize real estate document Sep-08-10 review last closing document and email ; attend closing with delays Sep-09-10 review and reply to email Sep-13-10 review and reply to email Sep-24-10 review and reply to email Sep-I 5-10 review and reply to email re: closing and payoff ;telephone conference with Title Agent receipt and review of numerous emails updating on status of estate. intraoffice conference with R, Spitzer regarding same. Sep-16-10 Finalize Release Sep-20-10 review and email re: status Sep-27-10 LESS CREDIT of $S,SS 1.85 estimated time prepaid June, 2010 with prior billing Totals TIME SUMMARY Page 4 3.50 700.00 RCS 0.90 180.00 RCS 4.50 900.00 RCS 0.30 60.00 RCS 0.60 120.00 RCS 0.30 60.00 RCS 3.00 600Ap RCS 0.50 212.50 SJD 0.50 100.00 RCS 0.30 60.00 RCS -S,SS1.85 RCS 71.50 $8,857.15 Time Keeper Rate Hours RCS Fes/Adjustm ent RCS $200.00 66.50 PGH $195.00 0.20 S,~ $225.00 3.80 C $21 S 00 2.00 JC DISBURSEMENTS ' 7u1-3 I -10 Computer Research/PACER Amount -$5,552.85 $13,300.00 $39.00 $855.00 $215.00 82.04 • Invoice #~: 20248 Sep-03-IO Register of Wills Totals Total Fee & Disbursements Interest Due T'age 5 15.00 .~- $8,914,19 $0.00 Balance Now Due ~ ~~'y~a',.y Tor ya~r convenience: iYe accept V(sa, Mastercard mid Discover EXHIBIT E WIX, WENGER &WEIDNER RICHARD H. WIX A PROFESSIONAL CORPORATION THOMAS L WENGER STEVEN C. WILDS ATTORNEYS AT LAW DEAN A WEIDNER THERESA L SHADE WIX ' ROBERT G SPITZER OP.VIU R. GETZ 508 NORTH SECOND STREET Of Counsel STEPHEN ~ Dzu1zANIN POST OFFICE BOx 845 ,,EFFREv C. CLARK PETER G HOWLAND HARRISBURG, PENNSYLVANIA 17108-0845 Suburban Office. 4705 DUKE STREET (717) 234-4182 HARRISBURG, PA 17109-3041 giso MemberMassacnuseusea` (717) 652-8455 FAX (717) 234-4224 www.wwwpalaw.com July 19, 2011 Matthew E Hamlin, Esquire Persun & Heim, P.C. P.O Box 659 1700 Bent Creek Boulevard, Suite 160 Mechanicsburg, PA 17055-0659 Re: Estate of Wendell B. Stockdale, Jr. Cumberland County Orphans Court File No. 2009-01040 Our File No.: 8278/15425 Dear Matt: In response to your email to me of July 7, 2011, enclosed is our invoice #21745 showing additional attorney's fees that were paid on April 4, 2011. In addition, we have yet to hear from you regarding the Trustee's instructions for delivery or acquisition of the coins and firearms. Enclosed is an inventory of the firearms that are being kept under lock at our clients' resident. They wish to have them removed as soon as possible. We would ask for your instructions within the next few days. Thank you. Sincerely, Wix, We~g~, & Weidner SJD/jey Enclosures cc: Mr. and Mrs. Wendell B. Stodkdale, Sr. Robert C. Spitzer, Esquire L-°~ J. Dzuranin Wix Wenger & Weidner 508 North 2nd Street P.O. Box 845 Harrisburg, Pennsylvania 17108 Ph:717-234-4182 Fax:717-234-4224 Mr. Wendell Stockdale, Sr., Executor march 24, 2011 47 Deer Ford Drive Lancaster, Pennsylvania 17601 File #: 8278-15425 Attention: Inv #: 21745 RE: Stockdale, Wendell, Jr., Estate Estate Administration and Asset Recovery DATE DESCRIPTION HOURS AMOUNT LAWI'ER Jul-12-10 Review and reply to email ;prepare for 2.00 400.00 RCS conference Aug-13-10 review and reply to email regarding testing 0.30 60.00 RCS results for sale of home and investment responsibilities for cash assets of estate, and meager returns available, and necessity of access to funds. Sep-27-10 intraoffice conference with R. Spitzer 0.60 135.00 SJD regarding receipt and release from Trustee. review of and comment to revised receipt and release. review and reply to email regarding 0.80 160.00 RCS communications as to tuition obligations of the beneficiaries and responsibilities for such obligations. Sep-28-10 e-mails from R. Spitzer to W. Stockdale. 0.10 22.50 SJD Sep-29-10 review and reply to email regarding 0.30 60.00 RCS appointment of successor trustee, and arrangements for turning over assets and funds for tuition, and resolution of issues in contention raised by beneficiaries. Oct-04-10 review of exchange of emails between R. 0.20 45.00 SJD rage L Spitzer and W. Stockdale regarding outstanding issues to resolve estate. Oct-OS-10 several e-mail communications regarding 0.20 45.00 SJD settlement of estate. review and reply to email receipt regarding 0.30 60.00 RCS status of appointment of successor trustee, prospects of meeting with beneficiaries, and resolving though receipt and release and other possible explanations thereof, for purposes of providing tuition monies to beneficiaries. Oct-06-10 e-mail from R. Spitzer regarding trustee 0.10 22.0 SJD replacement. Oct-08-10 review and reply to email re: Status .and 0.40 80.00 RCS Prospects Oct-11-10 several e-mail communications regarding 0.40 90.00 SJD distribution of estate. e-mail to R. Spitzer regarding same. Oct-12-10 e-mails from R. Spitzer with information from 0.20 45.00 SJD and to client. Oct-13-10 e-mail from R. Spitzer to client regarding 0.10 22.50 SJD preparation of accounting. review tax and email ;reply to emails re: status 0.60 120.00 RCS Oct-14-10 review and reply to email re: status and real 0.30 60.00 RCS estate and regarding relationships of beneficiaries and the estate; and relationships with counsel and role of counsel for beneficiaries; and expectations for further proceedings as to accounting and fee and tax issues. Oct-15-10 e-mail from R. Spitzer regarding status of case. 0.20 45.00 SJD review and reply to email re: escrow money 0.50 100.00 RCS and communication. Oct-28-10 telephone conference with Mr. Huntzinger ; 0.30 60.00 RCS review Oct-29-10 e-mail from R. Spitzer regarding draft 0.30 67.0 SJD accounting. receipt and review of rage ~ letter from MidPenn Bank requesting Fiduciary Accounting. review and reply to Mid Penn documents, and 0.80 160.00 RCS communications as to billing and time expended; and preparation of accounting. review and reply to emails re: Mid Penn 0.30 60.00 RCS Oct-31-10 review and reply to email as to potential claims 0.30 60.00 RCS Nov-02-10 several e-mail communications regarding 0.20 45.00 SJD accounting draft. review and reply to email re; accounting 0.20 40.00 RCS Nov-03-10 e-mail from and e-mail to R. Spitzer regarding 0.20 45.00 SJD letter to Mid-Penn bank. Nov-04-10 e-mail from R. Spitzer regarding reply to 0.30 67.50 SJD MidPenn Bank. completion of letter to MidPenn. Nov-OS-10 e-mails from R. Spitzer and K. Huntzinger 0.30 67.50 SJD regarding tax returns. review and reply to emails re: tax issues 0.30 60.00 RCS Nov-08-10 several e-mail communications regarding 0.20 45.00 SJD midpenn bank as trustee and tax issues. prepare for conference; review files regarding 1.00 200.00 RCS transmittal of spreadsheet with listing/inventory of uncased checks, and arrangements for meeting/conference with Mr. and Mrs. Stockdale. Nov-09-] 0 intraoffce conference with R. Spitzer 0.20 45.00 SJD regarding meeting to discuss accounting and responding to requests from Mid Penn Bank. Nov-11-10 e-mail from. R. Spitzer. regarding meeting with 1.80 405.00 SJD clients and issues for discussion. office conference with M/M Stockdale. prepare for conference ; intraoffice conference 2.00 400.00 RCS with Mr. and Mrs. Stockdale Nov-15-10 e-mail from R. Spitzer to K. Huntzinger 0.30 67.50 SJD Page 4 regarding accounting. correspondence to MidPenn Bank suggesting meeting. email re: accounting and review as to 0.30 60.00 RCS preparation of accounting and documents related thereto. Nov-16-10 several e-mail communications regarding 0.20 45.00 SJD accounting and contact with Mid Penn Bank. review and send materials to to W. Stockdale 0.60 120.00 RCS and to K. Hite Nov-19-10 receipt and review of correspondence from M. 0.20 45.00 SJD Hamlin regarding attorney fees and meeting with PNC representative. Nov-23-10 review and reply to email regarding meeting 0.20 40.00 RCS with bank and counsel, and Mr. and Mrs. Stockdale regarding administration issues and objections. Nov-29-10 telephone conference with acountant ;email 0.50 100.00 RCS re: accounting Nov-30-10 receipt and review of correspondence from M. 0.50 112.50 SJD Hamlin regarding meeting to discuss attorney fees and accounting. intraofFice conference with R. Spitzer and telephone conference with M. Hamlin regarding same. telephone conference with Mr. Huntzinger 0.80 160.00 RCS (twice) ; intraoffice conference with S. Dzuranin ;assemble materials Dec-O1-10 e-mail from R. Spitzer with attachments from 0.20 45.00 SJD K. Huntzinger regarding expenses of estate. Dec-02-10 receipt and review of correspondence from M. 0.20 45.00 SJD Heim. Dec-03-10 receipt and review of several emails regarding 0.20 45.OU SJD status of case. Dec-13-10 review and reply to email regarding narrative 0.10 20.00 RCS of problems and transmittal of attachments relating thereto. Dec-14-10 several e-mail communications regarding 0.20 45.00 SJD narrative from client of issues to justify attorney invoices. Dec-21- l 0 intraoffice conference with R. Spitzer regarding meeting with Mid Penn Bank. office conference with R. Spitzer and clients to prepare for meeting with Mid Penn Bank and S. Kleinfelter. office conference with all aforementioned parties regarding objections of Mid Penn Bank to fees in case. review and prepare for meeting ;meeting with coexcutors and Mid Penn Bank Jan-06-11 e-mails from R. Spitzer and K. Huntzinger regarding tax returns. Jan-07-11 receipt and review of Bank Statements from executors. Jan-18-11 intraoffice conference with R. Spitzer regarding response to request for information from M. Hamil and S. Kleinfelter. review of materials and cases regarding fees in estate cases. Jan-20-11 intraoffice conference with R. Spitzer regarding response to Trustee regarding status of estate administration and justification for attorney fees. Jan-21-11 intraoffice conference with R. Spitzer to discuss strategy to address issues relative to finalizing estate and dispute regarding attorney fees. office conference with R. Spitzer and M/M Stockdale to address same. prepare for conference ;intraoffice conference with executors Jan-25-11 e-mail from R. Spitzer with copy of email from W. Stockdale. correspondence to M. Hamlin sending copy of settlement statement from sale of house and copies of bank statements and check book registers. review time recorder, organize materials supporting communications and Co-Executors, including computer files and email records; prepare "subfiles" for various issues raised by beneficiaries. Jan-26-11 receipt and review of correspondence from W. Stockdale with issues and copies of Y age 1.70 2.00 0.30 0.10 0.40 0.40 2.00 2.50 0.50 1.00 0.80 S 382.50 SJD 400.00 RCS 75.00 SJD 25.00 SJD 100.00 SJD 100.00 SJD 500.00 SJD 500.00 RCS 125.00 SJD 200.0() RCS 200.00 SJD Page 6 checkbook register. e-mail to R. Spitzer sending letter from Wendell Stockdale. Jan-27-11 intraoffice conference with R. Spitzer 0.20 50.00 SJD regarding letter from W. Stockdale. review materials ;email re: surcharge 0.40 80.00 RCS Jan-28-11 research fee cases 1.20 240.00 RCS Jan-31-11 telephone message from M. Hamlin regarding 0.20 50.00 SJD response after meeting regarding attorney fees. e-mail from R. Spitzer to W. Stockdale regarding response to Mid Penn. Feb-Ol -11 review and research expense cases ;review 2.60 520.00 RCS time records and expand Feb-15-11 review of file. revisions to letter to M. U.30 75.00 SJD Hamlin sending supporting documents and discussing proposal for resolution of objections to attorneys fees issue. Feb-16-11 fax from M. Hamlin regarding timing to 0.30 75.00 SJD respond to objections to attorney fees. memo to R. Spitzer regarding same. review of file. Feb-17-11 intraoffice conference with R. Spitzer 0.60 150.00 SJD regarding attorney fee issue. conference call with client and R. Spitzer to discuss response to M. Hamlin. receipt and review of correspondence from M. Hamlin regarding missing bank statements. review ; intraoffice conference with S. 0.50 100.00 RCS Dzuranin ;telephone conference with Mr. Stockdale Feb-18-11 review of documentation regarding waiver of 1.20 300.00 SJD executors fee. legal research regarding amount of executors fee and whether waiver of fee is effective. review files regarding calculations of gross 1.50 300.00 RCS amount of estate, and property values and life insurance proceeds. Feb-19-11 computer records and estate materials ;fees ; 7.30 1,460.00 RCS review email records ;file lists ;supplement time sheets (2/20/22) Page 7 Feb-21-11 fees; review and prepare analyses of cases and 3.00 600.00 RCS commentary materials and identification of issues is to which objections maybe raised. Feb-22-11 several e-mail communications regarding 0.30 75.00 SJD attorney fees and response to M. Hamlin. fees; further review and finalize statement 3.80 760.00 RCS regarding activities and efforts by Co-Executors for purposes of evaluation of potential claim for executors' fees, or reimbursement for services over and above executors' duties. Feb-23-11 several e-mail communications regarding 0.40 100.00 SJD support for amount of attorney fees. review of file in preparation of response letter to M. Hamlin. Fees; revisions to Statement and review 5.00 1,000.00 RCS correspondence; prepare memorandum; finalize "additions"; email W.S. and S. D. preparation of "additions" memorandum supplementing time and services re-examinations and narrative memorandum of issues generated by estate administration problems and complexities. Feb-24-11 intraoffice conference with R. Spitzer to .2.80 700.00 SJD discuss response to M. Hamlin regarding objections to attorney fees. correspondence to M. Hamlin regarding same. several e-mail communications regarding comments to same. review; intraoffice conference with S. 2.30 460.00 RCS Dzuranin; review correspondence regarding communications to bank counsel, and issues to be addressed in regard to possible acceptance of settlement offers concerning objections. Feb-25-11 revisions to correspondence and supporting 0.80 200.00 SJD documents to M. Hamlin regarding legal fees and settlement of Estate. receipt and review of correspondence from M. Hamlin regarding request for additional account statements and check ledger entries. intraoffice conference with S. Dzuranin 0.20 40.00 RCS regarding status of pleadings and responses to potential claims to be asserted by beneficiaries Page 8 and memoranda relating hereto and potential responses to satisfy objections and implications thereof. Feb-28-11 several e-mail communications regarding 0.20 50.00 SJD response letter to Matt Hamlin. review and reply to email 0.30 60.00 RCS Mar-04-11 several e-mail communications by and 0.20 50.00 SJD ', between R. Spitzer and W. Stockdale regarding tax returns and status of estate. Totals 68.10 $14,452.50 TIME SUMMARY Time Keeper Rate Hours Amount SJD $225.00 9.30 $2,092.50 SJD $250.00 12.00 $3,000.00 RCS $200.00 46.80 $9,360.00 DISBURSEMENTS Jul-19-10 Register of Wills 130.00 Sep-30-10 Computer Research (Lexis/Nexis) 42.04 Feb-28-11 Photocopy Charge (@ $.15/page) 187 @ 0.15 28.05 Postage 6.72 Outgoing Fax charge 2.45 Totals $209.26 Total Fee & Disbursements $14.661.76 Interest Due $0.00 Balance Now Due $14,661.76 For• yoau• convenience.• We accept Yisa, Mastercard and Discover u~rl~~ers 2427 /RONV/LLE P/lCE -COLUMBIA, PA 77572 I ~ (717) 684-2017 Guns -Ammunition • Reloading-- Hunting ~ ~ Hours: Tues -Fri - 1 OAM - 8PM. Saturday 10AM - 2PM ~ ~ ME r ODRESS ~ DATE ~ ~-- aa0 ~tti ntr t ITY, STATE, ZIP - PHONE . D.L. EXP. DATE ° ° I ? ! J ~ I- $ I a~-- ~~s•~~ ~ ~ ~A~Q aa>~" - ~ ~-rr I ~~ n~- I - t .I - a-~~- 3'75" I I )° RESTOCKING FEE ON RETURNS OF SPECIAL ORDERS 3 ~ 5 51 RECEIVED 8Y I ~. i-wit-.o._- ~T ~s.._- - - kwoods ~--- Outfitters _ 2427 IRONVILLE PIKE -COLUMBIA, PA 77572 (717)684-2017 Guns • Ammunition -Reloading • Hunting Hours: Tues -Fri - 10AM - 8PM. Saturday 10AM - 2PM ME . Je~,~ DATE I ~o I U ADDRESS CITY, STATE, ZIP PHONE PA. D.L. - ~ ° EXP. DATE ° ~ ~ 1 _ ~. ~ (7 ~ ~ 1-1... uJl CI~•C S-Ju l I ~ S 50~ i"~~ ~ n i l~ JiVT - Q ~!'Z ~3 ~- i v ~ ~. ~ a- 10% RESTOCKING FEE ON RETURNS OF SPECIAL ORDERS ~ 3 9 5 5 4 RECEIVED BY I -~ - I j ~ B~a~kwoods ~-- ~ ! Outfitters ~,~"~ x 2427 IRONVILLE P/KE -COLUMBIA, PA 77572 (717)684-2017 ~, Guns • Ammunition • Reloading • Hunting Hours: Tues -Fri - 1 OAM - 8PM. Saturday 1 OAM - 2PM __~ R DRESS - CITY, STATE, 21P PHONE SPA. D.L. EXP. GATE • ~ ° I ~ ~ oZ.. ~ i. ~ U I ru + 1 -_~ i 10% RESTOCKING FEE ON RETURNS OF SPECIAL ORDERS ~ I 3 9 5 5 3 RECEIVED 6Y ~ V Ul,ll LbCt'S 2427 /RONVILLE P/KE~COLUMB/A, PA y~ 7_ (717) 684-2017 Guns • Ammunition • Reloading -Hunting Hours: Tues -Fri -10AM - 8PM. Saturday 10AM - 2PM EXIBIT F IN RE: ESTATE OF IN THE COURT OF COMMON PLEAS WENDELL B. STOCKDALE, JR., :CUMBERLAND COUNTY, PENNSYLVANIA Deceased ORPHAN'S COURT DIVISION File No. 2009-01040 AFFIDAVIT OF LAURIE J. STOCKDALE I, Laurie J. Stockdale, after being duly sworn upon my oath, deposes and states the following: I am an adult individual residing at 2222 Gleim Court, Enola, Pennsylvania. 2. I submit this Affidavit in support of the Testamentary Trustee, Mid Penn Bank's Objections to the First and Partial Account of Wendell B. Stockdale, Sr. and Jane Stockdale, Co- Executors in the above-captioned estate ("Estate") 3. I am the mother of James W. Stockdale (d/o/b August 22, 1991) and David Stockdale who are the only two children of Wendell B. Stockdale, Jr., deceased ("Decedent") and me. 4. That prior to his death, Decedent and I were divorced, pursuant to a Divorce Decree, dated March 10, 2009. A true and accurate copy of the Decree is attached hereto as Exhibit "A". 5. That prior to my divorce from Decedent, I was named as beneficiary under two employee benefit plan life insurance policies totaling $287,881.21 and employee benefits totaling $158,351.84 (collectively, "Benefits") that the Decedent had with his employer Hoffman-LaRoche, Inc. ("Roche"). 6. Upon information and belief, after our divorce, Decedent failed to change the designated beneficiary for the Benefits. 7. Following the death of the Decedent, I was contacted by Roche under letter dated November 12, 2009 notifying me that I was the beneficiary of the Benefits. A true and accurate copy of the Roche letter is attached hereto as Exhibit "B". 8. On or about November 24, 2009 I submitted a claim to Roche both for the benefits and for survival benefits on behalf of my son James W. Stockdale. A copy of the claim documents are attached hereto collectively as Exhibit "G". 9. In submitting the claim, it was my intention at all times that the proceeds of the Benefits be used for the benefit of my and Decedent's two sons. 10. After I submitted the claim for Benefits, I received letters from Attorney Robert C. Spitzer in early December 2009 on behalf of the Estate regarding the turnover of the Benefits to the Estate. Under this letter Attorney Spitzer transmitted a proposed Supplementary Agreement for the handling of the Benefits proceeds so that they were to be paid to the Estate. A copy of Attorney Spitzer's letters, dated December 1 and 18, 2009 are attached hereto, collectively, as Exhibit "D". 11. In mid-December 2009 I received a letter from Roche jointly addressed to me and Attorney Spitzer regarding the Benefits. A copy of the Roche letter, dated December 11, 2009 is attached hereto as Exhibit "E". 12. Upon receiving the Supplementary Agreement and related correspondence, I retained Attorney W. Bryan Byler of Byler, Goodley & Winkle, P.C. to give me legal advice regarding this matter. Attorney Byler communicated with Attorney Spitzer by letter in late December 2009 and by January 13, 2010 advising Attorney Spitzer that I would execute and deliver to the Estate the Supplementary Agreement. That agreement was delivered by me to Attorney Spitzer. A copy of Attorney Byler's letters and Attorney Spitzer's letter dated January 2 21, 2010 acknowledging receipt of the agreement are attached hereto, collectively, as Exhibit «F,~ 13. Upon information and belief, the Estate received a check for $95,797.82 for the Decedent's Roche Savings and Pay Deferral Plan representing the net distribution, less withholding that was payable to me. I also gave to the Estate a check in the amount of $287,881.21 issued to me by ReliaStar Life Insurance Company as payment of the death benefits proceeds on Decedent's Benefits life insurance. A copy of the Co-Executor's written receipt for both checks are attached hereto, collectively, as Exhibit "G". 14. That there was no lengthy dispute or so-called months of argument between me and Estate regarding the disposition of the Benefits. My principle concern was that the Decedent's and my two sons, James W. Stockdale and David Stockdale benefit from those monies. 15. At no time did Attorney Spitzer or anyone else on behalf of the Estate advise me that I could execute a written disclaimer and file it with Roche so that the Benefits could be paid directly to the Estate so as to avoid Attorney Spitzer's excessive fees charged to the Estate. I would have also withdrawn my claim to those funds, as represented by my execution of the Supplementary Agreement in January 2010. If I was presented with such a disclaimer I would have executed so that the monies would pass through the Estate to the testamentary trusts established under the Decedent's Last Will and Testament for the benefit of my sons. 16. That with regards to the funds from Roche for the Decedent's pension benefits of $158,351.84 with Fidelity Investments, l received a Form 1099-R with my Social Security Number. Upon the advice of representatives of AYCO, a division of Goldman Sachs, third-party administrator of the Decedent's IRA, and my tax preparer, Catherine A. Snavely-Roemer, the 3 proceeds were declared along with the income tax withholding of $62,554.02 on my 2010 personal income tax return. Upon receipt of my income tax refund earlier this year my tax preparer calculated the amount of the refund attributable to the IRA proceeds and I sent a check to the Estate for $26,868.00 representing that refund amount. A redacted copy ol'the Form 1099-R and my tax preparer's letter to estate counsel is attached hereto as Exhibit "H". 17. I have been notified that the Estate has returned my check to my tax preparer demanding that I file an amended tax return not showing the amount of pension benefits on my return or related federal income tax withheld. I have been further advised that that process should not be followed since the proceeds were the subject of the Form 1099-R issued under my Social Security Number. As such, I am ready to direct my tax preparer to once again forward to the Estate my check for $26,868.00. 18. It has been brought to my attention that Attorney Spitzer's law firm, Wix, Wenger & Weidner also charged and collected from the Estate $4,000.00 to prepare guardianship papers for my son, James W. Stockdale, so that death benefit proceeds could be collected from one of Decedent's prior employer through Astellas. Upon the death of the Decedent, I was the sole legal guardian of my son. I neither authorized nor directed the Estate or its counsel to prepare such guardianship documents. As his sole surviving parent, I undertook filing the paperwork for my son to receive the benefit proceeds and, in fact, obtain those benefits for my son. The averments set forth above are true and correct to the best of my personal knowledge. I make this Affidavit subject to the penalties of perjury set forth in 18 Pa.C.S. §4904. I have read the foregoing document and find it to be an accurate account of my statement. Laurie J. Stocl~, a e 4 23518v1 EXHIBIT A LAURIE J. STOCKDALE, IN THE COURT Or= CO(VIIV~ON PLEAS OF CU(VIBERLAND COUNTI', PENNSYLVANIA v. WENDELL B. STOCKDALE, JR., : NO. 05 - 3963 DfVORC~ D~CRE~ PAarch 10 2009 AND NOW, , _ LAURIE J. STOCKDAL~, WENDELL B. STOCKDALE, JR., bonds of matrimony. it is ordered and decreed that plaintiff, and defendant, are divorced from the Any existing spousal support order shall hereafter be deemed an order for alimony pendente Iite if any economic claims remain pending. The court retains jurisdiction of any claims raised by the parties to this action for which a final order has not yet been entered. Those claims are as follows: (If no claims remain indicate "None.") None, The Property Settlement and Separation Agreement between the parties shall be incorporated into the final decree for purposes of enforcement, but shall not merge with the final Decree in Divorce. By the Court, M. L. Ebert, Jr. Attest: J. ~ ~~~ Prothonotary Certified Copy Issued: ~~iarch 10, 2009 Date EXHIBIT B Roche November 12, 2009 Laurie Stockdale 22 Fieldstone Drive Mechanicsburg, PA ] 700 Dear Mrs. Stockdale: Please accept our sincere sympathy on the passing of Wendell Stockdale Jr. The following information describes the Roche benefits for which you are eligible and the necessary steps you need to take in order to initiate the processing of these benefits. Please read this letter carefully, as some of the requested information may require a response from you within a certain period of time. If this death occurred while in active military service, please contact us immediately as available benefits may be different from those described in this letter. Life Insurance You will receive Life Insurance proceeds in the gross amount of $282,000. Please complete the Statement of Beneficiary section of the enclosed ReliaStar Life Insurance Benefzciar~~ Claim Form in order for us to process this benefit. Accidental Death and Dismemberment ~~ Roche employees are automatically enrolled in this coverage which would pay an additional benefit in the case of accidental death. ,/' ~~ ~#~` Survivor Support Financial•Counseling Service ~~--16~-~ ~f ~° ~` - ~G ~' - l/~ ~` S - ~ `~< ? To assist you with some of the difficult financial decisions you may be faced with at this time in your life, you are eligible for FREE financial counseling services. Roche has contracted with the Ayco Company to provide this service to you. Enclosed is a brochure that describes the Survivor Support Service Program. Some of the topics covered are: ^ Investment of insurance proceeds ^ Social Security issues/questions ^ Managing your income needs ^ Issues related to your home/mortgage/auto ^ Tax consequences of your decisions Roche provides this service free of charge strictly for your benefit. However, if after an initial conversation, you decide not to take advantage of this program, you are under no obligation to do so. If you are interested in taking advantage of this program, complete the enclosed Release and Authorization .form and return it in the enclosed envelope. Our records indicate that contributions were being.made to the Roche Flexible Spending Account Plan. If you need assistance. regarding the submission of claims to this plan, please call our FSA administrator, PayFlex, at (800).284-4885. Hoffmann-La Roche Inc. 340 Kingsland Street Tel. 973-235-5000 Nutley, New Jersey 07110-1199 www.rocheusa.com ~t .a ~ w ~~ ~ y ~ ,l~_=_ ~ ~'~ ~ ~.~;~ ~- ~ 1 '-/ L,. 0 / ~ ~~G~V V Y~ ~' ~, J O ' Roche Savin~*s Plan and Pay Deferral Plan You are eligible for a distribution under this Plan. Please complete the enclosed Roche Savings and Pa>> Deferral Plan Payout Election form and return it within 60 days of the date of this letter so that we may process your distribution. If we do not receive your completed form within 60 days, your account balance will be distributed in a lump sum check payable to you, which may result in tax consequences to you. Please read the enclosed Special Tax Notice for more information. You may also want to seek the advice of a tax counselor before completing your form. 'The Roche Retirement Plan Our records indicate that you have one or more children under the age of 21 who may be eligible to receive a monthly Child's Benefit under The Roche Retirement Plan. Please complete the appropriate section of the Survivor's Statement and send us a copy of the birth certificate of any child under the age of 21 so we can determine whether benefits are payable. Please complete and return all forms enclosed with this letter along with all Required Documentation Listed below: b~~ ~e ,,•'~eguired Documentation n~ ~'~ ,-k' ~ ~~ ~ ~• One original certified death certificate ~ ~ ~~ ~ ~ ~' Copy of birth certificates of Dependent Children b ~ ~ Eligibility for any of the benefits described herein is contingent upon our receipt and verification of all enclosed forms and Required Documentation Listed above. If approved, you can expect to receive your benefit payments approximately six to eight weeks after our receipt of all forms and Required Documentation. If you have any questions:after you have reviewed all the enclosed information, please feel free to contact the Roche Pharma US Benefits Department at (973) 235-7700 or (866) 235-7700, Monday through Friday between the hours of 10:00 am and 3:00 pm (ET). Roche Pharma US Benefits Department ML Enc. EXHIBIT C ~ _.. -~ N Z m-. a> Z u~ v, co ~ ~ rn ~ 0 !~ ' - z / ~ .~ / ~ ~ ~ ~ ~ U ~ ~ a . a ~ N a~ ~ ~, ~ ~ -, cn ~' ~ m 3 ~ ~ = a~ a~ Z m a> m c j, ~ n ~ o ° ~ MM h~r"i L ~ a = m Z 'a 0 c u f1,.~ N ~ Q O ~ ~ 4-~ ~ N ~ N ~ ~ ~ Ry O y ~i--~ ~ Q DEATH CLAIM '~ ~ ', ^ReliaStar Life Insurance Company, tvlinneapolis, MN ~T '~'~° 1 ~C ,:~':~~.~ ^ ReliaStar Life Insurance Company of New York, Woodbury, NY (outside NY) Members of the ING family of companies (the "Company") ING Life Claims:. Complete form and sign the Employer Certification. The Beneficiary Statement must be signed by the beneficiary if the amount payable to the beneficiary is $5,000 or more. Forward the completed claim form along with a signed W-9 form from each beneficiary, a certified death certificate, a copy of the Insured's enrollment documentation, and any beneficiary changes to the above address. GROUP POLICYHOLDEJR INFORMATION ~ Group Policyholder r~ ~ L Group Policy Number U' ~ ~~~/D ~ ~ Account Number EMPLOYEE INF~O`RMATI,~OJ N ~~ Insured Name V~ ~~ (-- ~ I ~~ r~~`~~~~ ~ ~ _ ~, ~ ~ Birth Date ~S -~ SSN ~ / Other names the Insured may have been known by (maiden name, hyphenated, nickname, derivative of first or middle name, or alias) Address ~ a/ / State ~ ZIP ~ ~ .sue City Marital Status: ^ Married ^ Domesti artner/Civil Union ^ Never Married .Divorced Widow(er) Sex: ^ Male ^ Female~i Employment Start Date ~ ~ Q L~ Date Last Actively at Work Prior to Death j ~ ~ 1 2.e ~ (also include for dependent claims) lob Title M~~-~-~ ~ r Salary q~ `~?~ ~ per ^ hour ^ week ^ month ~ar Last Salary Change Date Union ^ Non Union cull Time ^ Part Time If part-time, average hours per week Status of employee at death ctive ^ Retired ^ Disability Waiver of Premium ^ FMLA (include FMLA documentation) Reason for stopping work es ^ No Have premiums been paid to the date of death? If no, to what date have premiums been paid? _ /D CLAIM INFORMATION 9 , ~ L`1(7 Accidental Death $ Effective Date ~ ~ adn Basic Life $ y ~ - ••• Supplemental Life $ _ Supplemental Accidental Death $ _f' ~ _, ;_ Effective Date -J' ~/ ~~~) v Effective Date / ~O ~' Optional Life $ Effective Date Other $ bate of Death y a ~ ~ Cause of Death ~~ ~ ~~~~ -~~~ ~ ~ rQ - If death was caused by injuries, explain (Attach newspaper clipping, if available) Page 1 of 3 -Incomplete without all pages. Order N 115446 01/13/2009 40302m l ` ~ ~ (' ~((~QJ"~SSN ~~~ ~ `1~(~Group Policy Number ~ 30-.~ ~' `S ~Fisured Name V ~-~~~~~~~------~-T , CLAIM INFORMATION (Continued) If claim is for insurance on a dependent, give the following information concerning dependent (list life amount above) Relationship to the Insured: ^ Spouse ^ Domestic Partner/Civil Union ^ Child Date this dependent insured Name (please print) ~ '-~ f~nt- SSN / 77'Sa - (ri ~7LP J Birth Date/ /~~.~- Address °2 °~ / .S QQ Cit ~ C(, -~ ~ ~ State~cs~ZIP ~ 7~5~ Y Marital Status: ^ Married ^ Dom tic Partner/Civil Union ^ Never Married ivorced Sex: ^ Male Q'~emale EMPLOYER CERTIFICATION The above statements as to the insured are correct as reported on the employer's records. A Settlement Option Brochure as identified on the Company website, http://www.ing-usa.com/us/businesses/employeebenefits/formslibrary/deathclaims/index.htm, has been provided to each beneficiary. (See page 3 for fraud warnings.) Employer Name Ernployer's Address City Authorized Signature State ZIP Date Phone E-mail Title BENEFICIARY STATEMENT (Name, Address, Birth Date and Social Security Number of each beneficiary is required. (see page 3 for fraud warnings.) / Beneficiary Name ~ 2~~ ~~ ~ T r'~` G~ d "1 ~' Relationship ~~ J ~ ~~ ~`-'' c- .,Z 7 - / ~ S7 SSN l'7'7 - .~~ - ~ 76 ~ Birth Date ~ - Phone 7i~ 7~6 - ~ y:~Z 7 E-mail /'~~ .2a ~j Coni~a~ ~~ Address /~{o o ~-„ >L i lrr~. ~.~-~d d. ~::!- i/ 7 / State ~~ ZIP ~ 7r' ~~ City Me~![n~~['.LYJ[~/ I am making claim for the life insurance proceeds as ~~` ~ ~~ ~''~1 (Beneficiary, Spouse, Executor, Trustee, etc.) If as trustee, give date the trust was created Beneficiary Signature ~~~-' ~--~-~~ Date /l - / ~~ - 3 ° a9 BENEFICIARY STATEMENT (Name, Address, Birth Date and Socia! Security Number of each beneficiary is required. (See page 3 for fraud warnings.) Beneficiary Name Relationship Birth Date SSN Phone _ E-mail Address City I am making claim for the life insurance proceeds as Executor, Trustee, etc.) If as trustee, give date the trust was created Beneficiary Signature State ZIP Date If needed, please complete additional Beneficiary Statements and attach to this form. (Beneficiary, Spouse, 40302m ^~ ~ Page ~ of 3 -Incomplete without all pages. Order 81 15446 01/132009 'insured Narne SSN Group Policy Number (FRAUD WARNINGS Alaska, Arkansas, Delaware, Idaho, Indiana, Louisiana, Maine, Minnesota, New Mexico, Ohio, Oklahoma, Oregon, Tennessee, Texas, Washington, West Virginia: Any person who, knowingly with intent to defraud any insurance company or other person files a statement of claim containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime, and may subject such person to criminal and civil penalties, and denial of insurance benefits. Arizona: For your protection Arizona Law requires the following statement to appear on this form. Any person who knowingly presents a false or fraudulent claim for payment of a loss is subject to criminal and civil penalties. California: For your protection, California law requires the following to appear on this form. Any person who knowingly presents false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison. Colorado: It is unlawful to knowingly provide false, incomplete, or misleading facts or information to an insurance company for the purpose of defrauding or attempting to defraud the company. Penalties may include imprisonment, fines, denial of insurance, and civil damages. Any insurance company or agent of an insurance company who knowingly provides false, incomplete, or misleading facts or information to a policyholder or claimant for the purpose of defrauding or attempting to defraud the policyholder or claimant with regard to a settlement or award payable from insurance proceeds shall be reported to the Colorado Division of Insurance within the Department of Regulatory Agencies. District of Columbia: WARNING: It is a crime to provide false or misleading information to an insurer for the purpose of defrauding the insurer or any other person. Penalties include imprisonment and/or fines. In addition, an insurer may deny insurance benefits if false information materially related to a claim was provided by the applicant. Kentucky: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime. New Hampshire: Any person who, with a purpose to injure, defraud, or deceive any insurance company, files a statement of claim containing any false, incomplete or misleading information is subject to prosecution and punishment for insurance fraud, as provided in RSA 638:20. New Jersey: Any person who knowingly files a statement of claim containing any false or misleading information is subject to criminal and civil penalties. Pennsylvania: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. Puerto Rico: Any person who, knowingly and with the intent to defraud, presents false information in an insurance request form, or who presents, helps or has presented a fraudulent claim for the payment of a loss or other benefit, or presents more than one claim for the same damage or loss, will incur a felony, and upon conviction will be penalized for each violation with a fine no less than five thousand (5,000) dollars nor more than ten thousand (10,OOD) dollars, or imprisonment for a fixed term of three (3) years, or both penalties. If aggravated circumstances prevail, the fixed established imprisonment may be increased to a maximum of five (5) years; if attenuating circumstances prevail, it may be reduced to a minimum of two (2) years. CLAIM CHECKLIST ~ Is the Employer Certification complete and signed? [J Has each beneficiary signed a Beneficiary Statement? ^ Has each beneficiary completed and signed a Form W-9? ^ Is the beneficiary designation and enrollment documentation attached? [~ Is the death certificate a certified copy that shows manner and cause of death? Paye 3 of 3 -Incomplete without all payes. Order tl115446 01/13/2009 4030Zm Z W U J W 0 Na:17 625 918 Dups:00 ,ooe:02l27l1957 se:: F Cla::: C Eyes: GRN Endorse: ---- Height: 5~09~~ Com/Med Rstr: ~!1 Issued: 11 /25!2008 Expires:0212812013 oR~arl oorloR ~ ~~`'~"~ LAURIE J STOGKDALE ~, 1400 BENT CREEK BLVD k _.._ APT 117 ~ECHANICSBURG PA 170 ~ Li WAI~i`iING: It is illegal to duplicate this copy by photostat or photograph. .;,,,,,~~-,-,.;,,,; "Phis is to certif~v that the in(onnaunn here ~~i~'cn ~c i~ r this, certi f~icate.:i,(~.OU ~,CH OF p ~,~~~:~~p;~---`iy~;~.~ ccn-ree[ly copied lrc~m :tn ern`~rnal Certificate o1 ll~ <I ~,~'a~~~ `~~=~ dull Filed with me a~ Local Re=•i`tr:tr. The ori~~ilr la`~~~ (~ ~°..~: `,.Gv'cr r~a•,-1il'irolr' will hr• fnnv;lyded In the State VII ~~ •~ . i.: v J .,.-i.~ . rn Records C)ffice I~or permanent Filing. Celtif~ic rttion Number Deal Registrar Date issued COMMONWEALTH OF PENNSYLVANIA • DEPARTMENT OF HEALTH • VITAL RECORDS aE ,P 11(1006 IN CORONER'S CERTIFICATl= OF DEATH 1CK KT (See inetructlone and e7Yempbe on ravens) grATE FILE NUMBED 113 2 -13 2 z wa 7. SodY Nundr 4. Dar a pan (Mart ar. read . NrmaD.woera lFtrr.mMw. M>;,sdF,l Male 5~ _ 54 _ 9318 October 29, 2009 Jr. Stockdale , Wendell B -A9• Ilar BtrtsraY) Wider t Yev Urmr 1 m7 fi. Dw d etln IMain, a . 1. Birarw 1 arr,rr « I b. Pea a o.an I(.tuoa ar Tsospet Otlwr. '""" °" ~., ~ Jul 25, 1957 Montgomery, AL S 2 Y OMwwd ^ Efl! qutprwY ~ ooA D YMeey Nam Flestlrn I~Dlnr - sonear. Yu. d DWn G a. Gry, rwP. Daam Bd. fedlsyNrm Itl rtd ^rtltlron, pve wed rdva•tM 2. Wu Dewara d Newr+o pipn7 No ^ Ya W«LYGWl (n y.+ 10. Nan: Amriwrt tlefer4 Bro. WttY, et. (SOr'~l~ White • . W/ Cumberland Silver Spring 22 Fieldstone Drive ~ Merrart Pwb Nrrt ro.t Do M Yar ik 72. Wu Dewar. stet n tlr 17. Decaorsfe EdresaatlEOecyY or1Y Noast W.o. oomW tM) awd ( Nerr A4anr4 14. ~,~ Dl 15. Suvrwq ~ e Itl tstle, 9r. maiwn nr,M) . II. Dewdea', U,ur Oavwows IKed d aesk ear mat d AmrdFawt S U lgewrtdary(412) Y E l=otle9•Il+e«~) s e~ b K:,ddw KWd~.a /~~ Pharmaceutical Rep Urug . . I]r.e i~ le,nr ry 4 tvorc I6. pewdenf s Mailr,g Addes; 19ra1. wy l loan. Yak. e4 war peeedrY'e pA ou DewdwY ky11 ~g0e,p I It ular ~'i n a 17c. I$Yn. t7aceMK IMd h TrP- r°"w"p7 22 Fieldstone Drive Cumberland na.0 ~ ~~ Mechanicsburg, PA 17050 170 ~°"~ "Y'B°'° ta"""~'"""'IFaY~'"0°'''"'a"""'"'"I Jane Hinkle 1Y. Fear's Neer lFxY.,aa19. MSt„e;,) Wendell Berg Stockdale 5r. / Pmt T ' 200. nblmrY'e MdepAdam / ,o ~e~s~`one ive Mechanicsburg, PA 17050 ) a Nrm ( 20a. womkN YW David E. Stockdale YeM} Dw d aews/OrKI IMdrt ay 21 2m Pw a Drgormn (fir a amYrY. arvkpry d err plow) 21d. IaYOn ICq'/ brn. err. av ads) 2l=N•.r^aaww"°^ ~'r1ieon ~Dp1e°0" , a Cremato llt C Schaefferstown, Pa. X7088 _ ^ B,,.r ~ Hrlo.r lmota.r w.. urarrn«oakuon AUn«ISd Yadlwl E,rnYSr I Yet ~ No October 31, 2008 e ono ry Otlr, . 7t d Fuvrrr l ( amq r eudl) 22b.llwtw Nairer 22c. Nerve nd Atrlneed f,r1ry Myerg Funeral HOme, Inc. 37 East Main Street Mechanicsburg, PA 17055 ' FD-012662-L - ' 7a Ton ml NrrrdVs. dean owned r M ewe, der err pow WrC (S4rue ~ ~) 23C.ldc«w NunOr 23c DYe Stprd IMan. aY~ Y••ri wveMp r K wry pryusan r not naea0r r rm d aYn b wdy taus. d gen. a d War ad d D 26. Wu Gw Nelened n Mrd,d E.rnirr / G«awr for a Fkuon otlrr nan npnoon « 2+. rim. d IAtan AprX. y, t a t 25. DW Plan•lw ~r" ~"° ~ ~~~ "~ 24 M. 00 A 5 October 29, 2009 - , N ,g . : oawk Nsrvr Prl n A : Enrr aert yWh 2D. Did Tab,¢v I/sa Wrt,ae b Oeen7 pg CAUBE OF DEATH (See InrruNlane rnd n.mplul , 1w -Ilrl Nadry oared tlr tlean. DD NDT edr lerlirlr errrr ,na1 u wrdeo anent. 1 Orkr m Da,n 6 dd M vewlrp n tlr uNenyeq cause even n Prl 1. ~ Yes ~ Pmoe6lr ca IWe 27. Pan I. f,ller fM dreg, d avert -hseues. iyunY. a oen,P tlarn YN,ed fMreq Yr a6dOr/.1W «eIOM wWe al eadl Yr. , W M ~ ~ ~ ~~ x l aeata4y Ned. d verelK I tl Famer: 29 17E CAUSE Few d,waaa i YWED1 l Infarction di Remote MI, Stent . p Nd aepra srYn pan »r t . a Probable Myocar d,r«n asakgo ~a.n) a ,; . grlo l«u.wmea~eoA: 1 ^ Pgrdremeaaan a2 a s,wrewF(Mt oataoan.Y nr. D. Coroner Arter Disease I t t Ya Q Hot A•WrK dl p•Rwe wrr, d an r,«q r cme rated w r • [An q la u a censequniw d7; M, M UNDERITYID CAUSE f ~ O N 1 •r , ~nwe~ a Way red yr l s •~ a~er~il LAIT wn sa papnrY [1 Nd geprrnl a7n M M fields aen . Mrxs ne V k la N a oduePrliw al. 1 ~ Dner,oav, Y DaDWe vNen 1r P•Y 1•r d. yeti lMmnr ay u D r d I 710. De,nb Hw YVay OcnnaO 77c. Pew d e-+Y How. Fame 9reel Faaory, ONCe Buldr eK (SP•dr1 70t Wu an AdoD•Y P,AarrwAl 70b. Wna Auopy fedrq AraAatM PAa k Gmpeeon 77. Mamar d Daan Tai dd k ^ , , 7 72s. e M p, . a can. a D.amY mr , I Msurat lLY ^ Awe ^ PerWq 1m.Ygaow 12d rvw a W+7 72.. Dryy r Wak9 721. n TrYUpakibn tl7/1' (~Y) r•wr ~ Pawtgr ^Pedgerrl « / D ~ Dri 72Y. laa5on a Nluy (9reN. W 7 krri. siW) ^ ra J°`,"° ^ rn ^ w mrrd b ON O ~ P r ~ rr - e Smdd, ^ CoWd Na AL OUrr . ~ 77b. S,ymur end Tra d G C o r on e r 71a c.nmr ro..~* aw arl sera ~ ~~ Ilrr, ~I LMIIyNp PnY•1cW IPnusn o•rtYY•q orw d a,n Nw, ar,otlrr prysoen ila, ponaaud _ _ _ _ _ _ _ _ _ ^ _ to the ar a mY a„oo,tedp,. dwn ona,.a aw m n. wnN4 ,nd mrwr u save.. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . Prong,Krw.nd~.robrwPM•~WIPms~ee6d^aoa^errva°a'ei0~agp°1fed°°anl _ _ _ _ _ d 77a D.k Sgrd (MOrrt aY Y••d 77:. liwnaa Tenor October 30, 2009 .. _ _ _ _ _ _ _ _ _ _ _ _ to fir Gal d my lnowrd9s, dWn owned Y tlr Owe, dW, en0 pNU, arA da b ur uuays) snd manmr es arr , YWtcr EaamNwlLaasw b ur uu•Nq w nrmar r erteL d d qy Cmplvyd Gus DaaV, Nm2 iYM/PM . 1 ° a g^M1°" W w f eeemlm0on and 7 a nrengelbn, N mY opiaon. d,e1K onurr.a r w Or,r, aw, and Pkoe, r, 6 r l y 7 . NaNeC O r T 16 , ~o r do e e 1 1Y . a o M ur Suite 111 d R 7s. r,FrwlMar.ay,yw7 oa , 6375 Basehore 7s.A M`~We~~e~tya /T~ /J{ ~ !~/ ,. Q~ ~ A VDln..~{~,A I `mil ~ ~~--I_ ~ l~ I Mechanicsburg, PA 17050 la 1E is /r_ T I - ' ~ q,poulwn PsrrM No. U ~ ~ 9' W 7 ~ ~ - --."-- ~-9 Request for 3axpayer Give form to the Form, (Rev.Odober2D0~ Identification Number and Certification requester. Do not Department of the Treasury send to the IRS. Internal Revenue Sernce Name (as shown on your Income tax return ~ N ~ ~ h ~ T ~~k~ld1~ m Business name, if different from above a ` o a c 0 Check appropriate box: Individual/Sole proprietor ^ Corporation ^ Partnership - ' Exempt ^ ~ •~ _ _ _ _ _ _ ^ Limited liability company. Enter the tax classification (D=disregarded entity, C=corporation, P=partnership) PaYee p ? ^ Other (see inslruc6onsJ - c ~ Address (number, street, and apt. or suite no.) ~ Requester's name and address (optional) a ~ ! ~n o ~ f Lr~.!< l~~,l~ viz r ~~ f- // rl k ~~ ~ Gity, state, and ZIP code ~~~ ~ .~ C J~D ~ ~ ~ , lrC/Z L' S- ~c= ari, e' List account numberls) here (opfi nal) Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on Line 1 to avoid Social security number backup withholding. For individuals, this is your social security number (SSN). However, for aresident / '7 'j ; .mod ~ (~ ''I ~ ~ alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to gel a TIN on page 3. or Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose Employer identification number number to enter. Certification Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and 3. I am a U.S. citizen or other U.S. person (defined below). Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement - arrangement (IRA), and generalty, payments other than interest and dividends, you are not required to sign the Certification, but you must provide your correct TIN. See the instructions on page 4. Sign Signature of ,~~ _ Here U.S. person - d`~~~ Date - 9/ - /9- ,~o~, ~' Generallnstructions Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form A person who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA. Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN to the person requesting it (the requester) and, when applicable, to: 1. Certify that the TIN you are giving is correct (or you are wafting for a number to be issued), 2. Certify that you are not subject to backup withholding, or 3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S.-person, your allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners' share of effectively connected income. Note. If a requester gives you a form other than Form W-9 to request your TIN, you must use the requester's form if it is substantially similar to this Form W-9. Definition of a U.S, person. For federal tax purposes, you are considered a U.S. person if you are: • An individual who is a U.S. citizen or U.S. resident alien, • A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, • An estate (other than a foreign estate), or • A domestic trust (as defined in Regulations section 301.7701-7). Special rules for partnerships. Partnerships that conduct a trade or business in the United States are generally required to pay a withholding tax on any foreign partners' share of income from such business. Further, in certain cases where a Form W-9 has not been received, a partnership is required to presume that a partner is a foreign person, and pay the withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, provide Form W-9 to the partnership to establish your U.S. status and avoid withholding on your share of partnership income. The person who gives Form W-9 to the partnership for purposes of establishing its U.S. status and avoiding withholding on its allocable share of net income from the partnership conducting a trade or business in the United States is in the following cases: • The U.S. owner of a disregarded entity and not the entity, Cat. No. 10231X Form W-9 (Rev. 10-2007) Roche ROCDE SAVINGS AND PAY DEFERRAL PLAN Payout Election for TRUSTS, ESTATES & OTHER ENTITIES This completed form must be returned to the Benefits Department in the enclosed envelope. If this form is not returned within 60 days, the account balance will be distributed in a lump sum check less required taz yvithltioldings. Name of Estate/TrustlEntity ~ ~~L `~ ~ T ~ t°~ ~ ~°-~~ Address ~ f-{ ~ ~ 1,~-~n .7<- ~ r-~,~~ ~~ ~,(~-v<< ~--~1 ~~ -~- I i FEDERAL INCOME TAX (FIT) TaxIDNo.: l~'7 -~~=~ - G:~r~~J c~.ll ~ '71 '~ - ~ S G - `f l~~ ^~ I wish to have FIT withheld from the taxable portion of my payment in the amount of ~~ %. ^ I do NOT wish to have FIT withheld. STATE INCOME TAX (SIT) Certain states may also require a State Income Tax unless you elect otherwise. Please consult your tax advisor for information on how State tax laws may apply to you. If you do not complete the section below, the Plan's recordkeeper will deduct the amount as required under applicable State law. [~I do not wish to have SIT withheld from the taxable portion of my payment. Please process payment with the income tax withholding indicated above. If a trust is named as beneficiary above, by signing below, I also certify that it is a valid trust under applicable state law. Signature of _~ /~-~ ~ ~° - Date: Executor/Trustee/ ~~~-'-~--~ L Authorized Officer: /l - .~2' f - .~2 e ~ ~/ BENEFITS DEPARTMENT USE ONLY Employee Name: Employee #: Social Security Number: - - Date of Death: Rev. 03/07 Roche RE'~'~~1~~N'F' PLAN Survivor's Statement Please complete this form s~ that determinations and processing of survivor's benefits can be initiated. Your Name ,~~~ rri ~S ~~ / ~~G~' ~rt_ ~~ Spouse's Name ~V ~} F~'~fi ~ ~o i~l. ~ fir. ~,„cis ~ c... ~ l~~ Your Social Security Numb' ~ ~ / - 7~~- - ~ 7~ / Your Date of Birth S~ - oZ .~ - / 9 ~// Additionally, please supply us with a copy of the following documents: - Proof of your age (birth certificate, driver's license) - Marriage Certificate - Most recent tax return indicating your filing status Please complete the following section ONLY if you have any children under the age of 21: Child's Name Date of Birth Social Security Number Was child(ren) Receiving Primary Support From the Deceased? Yes or No? Is child Married Yes or No? I elect to have my survivor's payment paid to me in the form of a monthly annuity. ( )Check here if you wish to have the child's payment sent directly to your dependent child(ren) rather than included with your survivor's payment. TAX INFORMATION- Please complete information below. 1. Please do not withhold income tax from my survivor's payment ................................................ ^ OR 2. Please withhold income tax from my survivor's payment using the number of allowances and marital status shown. (You may also designate a dollar amount on Line 3). Indicate Marital Status LJ Smgle ^ Married Number of Exemptions_~ I want the following additional amount withheld from each survivor's payment. $ Note: For periodic payments, you cannot enter an amount here without entering the number of allowances (including zero) on Line 2 ~/ %~ ~ ( Y'i! rC,(~ Date ~~ ~' ~~ Cnrvivnr'c Civnatnre r»'I'I~il, ('71-(. !. // __ Return this form to the Roche Phanna US Benefits Dept (Pension 85/1), Hoffmann-Iz Roche Inc., 340 Kingsland St., Nutley, NJ 07110. Hoffmann-La Roche Inc. 340 Kingsland Street Tel. 973-235-5000 Nutley, New Jersey 07110-1199 www.rocheusa.com DATE OF dry-~2-9I BIRTH 1M0.. DAY YEAR FILE lOZ 1 760-91 N0. `,` FILED ~~- ~ 7- 91 _ tMO.. DAY. YEAR) ~ COUNTY OF ~ .A U P H I ~, BIRTH ~=- ": ` DATE ISSUHD 1 Z-•J ~' - U I _ IMO.,DAY~; YEAR) ~ JaMES wE'JU~LL ST~~C~t~'~ AL - '~ `~ " `'~~` ,. ,~. Y ~ATHER.S I'`JA~d,~, "`.°~ - ,AGE j34 ~JEf~DrLL,,~~~G STOG~~;~Lc J~R ~~ ~ , ,."~. E-• ^,OTHEF.S ''1 TsD`~Iv~ ^~;A,M~' -A'C~`° _:34~ ;: _ - - - -' - a - ~pr~ . __.. ~ ._ ._ ~ ~ ~ ` Thle la to cerllty that this le a true copy of the record which le on Ills In the PanneylvaNa Department of Heeflh, In a ccortlance with A cl B8, P.L 304, approved by the General Aaeembly, June 29 1953. ;o V L ~' / D /l~ / ~._' / Y , =G CHARLES MAROESTER STATE REGISTRAR H105. 105.1 (12.84) f JA~•1ES ';JEND~LL STOC:~C~7ALC C/J 354 LOGafV ST LAI~1P NI LL PA '} 1,431,65 1711 EXHIBIT D RICHARD H. WIX STEVEN C. V/ILDS THERESA L. SHADE WIX DAVID R. GETZ STEPHEN J. DZURANIN JEFFREY G CLARK PETER G. HOWLAND Also Member Massechusells ber W(X, WENGER &WEIDNER A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 508 NORTH SECOND STREET POST OFFICE BOY, 845 HARRISBURG, PENNSYLVANIA 17108-0845 (717) 234-4182 FAX (717) 234-4224 www.wwwpaiaw.com December 1, 2009 Ms. Laurie 3o Stockdale 1 ~n~ P r, 1. /v n 1. 111...-1 Mechanicsburg, PA 17050 II~7 RE: Estate of Wendell B. Stockdale, Jr. Dear Ms. Stockdale: THOMAS L. WENGER DEAN A. WEIDNER ROBERT C. SPITZER Of Counsel Suburban Office: 4705 DUKE STREET HARRISBURG, PA 17109-3041 (717)652-6455 As indicated in the notice previously sent to you, I represent Mr. and Mrs. Wendell B. Stockdale Sr., in their capacities as Co-executors of the ESTATE of your former husband, Wendell, Jr.. If you are represented by counsel in connection with anything regarding relationships with the ESTATE, please forward this letter to such counsel and ask them to respond. If you do not choose to be represented by counsel in connection with these relationships, then please note the following: By virtue of both Pennsylvania statutes, and the PROPERTY SETTLEMENT AND SEPARATION AGREEMENT between you and Wendell Jr., and the Divorce, each of you declined to assert any interest in the ESTATE of the other, or the property interests of the other (Agreement, paragraph 16). To carry out these provisions, the Agreement provides, at paragraph 10, "Each of the parties shall from time to time at the recJuest of the other, execute, acknoN~ledge and deliver to the other party any and all fug°ther instruments that may be reasonably required to give full force and effect to the provisions of this Agreement. " In the process of gathering assets of the ESTATE, the Co-executors have determined that there may well be several kinds of property interests that still reflect an ownership interest on your part. For instance, we understand that a Prudential term life insurance contract apparently names you as the designated beneficiary of the policy, and that paperwork claiming the death benefits is in process. I believe Wendell Sr. has discussed with you the ESTATE's entitlement to such benefits, as well as benefits from former employers, other insurance companies, and other accounts. There are two ways the ESTATE could assert its entitlement to these assets -- to the insurance company or former employer involved, seeking payment directly to the ESTATE; or, more informally, and perhaps more simply, for you to process such claims with the payor, and when payment is received, endorse the check for such payment to the ESTATE, and arrange with Wendell Sr. for delivery thereof. If this more informal method is utilized for collecting these assets, it probably should be documented by an agreement to protect the interests of the ESTATE and your interests in carrying out the agreement. For instance, if you process a death claim with an insurance company, and its check is issued to you foT• the death benefits and interest until paid, you would be required to pay the income tax on such interest -- ~u~ unsatisfactory siLuaiion. H~ith the Agreement, you would be protected frorn such claims, and your delivery of assets to the .ESTATE would be documented as being legally required, so as to relieve you from the income tax consequences that otherwise would obtain. Accordingly, enclosed with this letter is a suggested "Supplementary Agreement." Again, please refer this to counsel, if you consult counsel, or review it and let me know if you have any questions, and if acceptable, please sign and return to me. Thank you for your cooperation in this regrettable task of clearing up issues generated by Wendell Jr.'s death. RS:s Encl. above Cc: Mr. and Mrs. Wendell B. Stockdale, Sr. 471~eer cord i~rive Lancaster, PA 17601 Very truly y urs, WIX, VJE r ER & WE NEB/ B ~~ ~`~~~ Y• R ert C. Spitzer P. S. Enclosed with this letter are two checks, payable to you and Wendell Jr., and endorsed by the Estate, one from Fulton Bank -- 9/11/2006, for $59, and Washington Mutual check February 9, 2009 for $2000.17. Please endorse these checks, and return to me for deposit to the Estate account. f. WIX, WENGER & WEIDNER A PROFESSIONAL CORPORATION RICHARD H. WIX ATTORNEYS AT LAW THOMAS L. WENGER STEVEN C. WILDS DEAN A WEIDNEP. THERESA L. SHADE WIX' 508 NORTH SECOND STREET ROBERT C SPITZER DAVID R. GETZ POST OFFICE BOX 845 Dt Counsel STEPHEN J. DZURANIN JEFFREY C. CLARK HARRISBURG, PENNSYLVANIA 17108-0845 PETER G.HOWLAND • Also Member Messechosans Ber (717) 234-4182 FAX (717) 234-4224 Suburban office 4705 DUKE STREET www.wwwpalaW.com HARRISBURG, PA 17109-3041 (717)652-8455 December 18, 2009 Ms. Laurie Jo Stockdale 1400 Bent Creek Blvd., Mechanicsburg, PA 17050 IN RE: Estate of Wendell B. Stockdale, Jr. Dear Ms. Stockdale: On December 17, 2009, David returned to me the endorsed checks included in my letter dated December 1, 2009. Thank you for your cooperation in that regard. These assets will be added to the Estate for distribution to benefit David and James. I had also enclosed in that letter a suggested "SUPPLEMENTARY AGREEMENT," the thrust of which was to allow you to collect certain benefits generated by the death of Wendell Jr., as an administrative convenience, along with your commitment to deliver all such collected benefits to the Estate, for distribution T and wishes set forththn WendelESt ckdaleT3 Ls WillTforA he SEPARATION AGREEMEN benefit of David and James. David advised, on December 17, Mr. and Mrs. Stockdale Sr. and me that you believed you were entitled to certain benefits (from Roche and others), which belief was erroneously confirmed by the Roche letter to you and me dated December 11, soliciting claims for death benefits. In light of this belief it is necessary thahorize collect ontof su h benefits by you for the Estate.NTARY AGREEMENT" that we would aut While David also advised that it is your intention that Wendell Jr.'s Estate ultimately pass to him and James, this must be done in ac:,erdance with `3~'endPll's ehnress intentions. If funds pass to you, which are subject to Pennsylvania Inheritance tax, they are taxed at a rate of 15%; but if through the Estate to David and James, that tax is 4.5%. Even if a particular company's policies allow or compel payment of such benefits to a named the dictates beneficiary, despite a divorce, as I understand you believed to be the case with Roche, of your Agreement and these Pennsylvania statutes require payment of any benefits you might so receive be turned over to the Estate. According to Pennsylvania law, you were not his "Spouse" at his death and are not his "Widow;" therefore you have no claim to these assets, and, in fact, there may be serious legal consequences if you even make or have made such claims. EXHIBIT E Roche December 11, 2009 Ms_ Laurie Stockdale 22 Fieldstone Drive Mechanicsburg, PA 17050 Robert C. Spitzer, Esq. Vdix, Wenger R Weidner 508 North Second Street P.O. Box 845 Harrisburg, PA 17108-0845 Re: Death Benefits of Wendell Stockdale, Jr. Dear Ms. Stockdale and Mr. Spitzer: In response to your request for information, we are writing to advise you of the death benefits of Mr. Wendell Stockdale, Jr., and request that all claims for the death benefits be made by February 5, 2010. Mr. Stockdale died with the following death benefits: 1. Mr. Stockdale had basic Life insurance in the amount of $94,000.00, and optional life insurance in the amount of $188,000.00. His beneficiary designation for these benefits named Ms. Laurie Stockdale as the beneficiary. 2. Mr. Stockdale had accidental death and dismemberment insurance in the amount of $188,000.00. The beneficiary is the same as that designated for his Life insurance, Ms. Laurie Stockdale. 3. Mr. Stockdale has an account balance in the Roche Savings and Pay Deferral Plan of $155,529.02. His beneficiary designation for this Plan named Ms. Laurie Stockdale as the beneficiary. 4. For The Roche Retirement Plan, children under age twenty-one are entitled to a monthly annuity benefit. Our records show that Mr. James W. Stockdale is eligible for a monthly benefit of $31.0.64. This benefit continues until the first day of the month in which he attains his twenty-first birthday. 5. Hoffmann-La Roche Inc. offers survivor support financial counseling service at no charge. 6. Mr. Stockdale was making contributions to the Roche Flexible Spending Account Plan. For services provided to Mr. Stockdale prior to his date of death, the Estate of Wendell Stockdale, Jr. may submit claims to PayFlex, the Plan Administrator for the Roche Flexible Hoffmann-La Roche Inc. 340 Kingsland Street Tel. 973-235-5D00 Nutley, New Jersey 0711D-1199 www.rocheusa.com Spending Account Plan. PayFlex may be contacted through its web site, w~~~.mypayflex.com or byphone at (800) 284-4885. The plan administrator of the life insurance plan, the Roche Savings and Pay Deferral Plan, and The Roche Retirement Plan requests that all claims for death benefits be filed with the plan administrator no later than February 5, 2010. The claims procedure is described in the Summary Plan Description for each plan. We have included a copy of the Sununary Plan Description .for each plan with this letter. Pending the receipt of claims, the plan administrator will not make distributions of any death benefits other than claims submitted to the Roche Flexible Spending Account Plan by the Estate of Wendell Stockdale, Jr. Very truly yours, Roche Pharma US Benefits Department Attachments EXHIBIT F Byler, Goodley & V1Tinlcle, P. C. Attorl.ieys-at-Law Samuel A. Doodle}', 1J'.' 363 West Roseville Road ~I. Bryan B}~ler Lailcastei; Pennsylvaiu~ 17601 Telephone (717) 560-6330 Eric L. Winlae Facsimile (717) 560-6328 "' LL. nn. i„ "Caxation (Adcliti.orr.nl Office i~~ Irctercoi.usc) December 22, 2009 Robert C. Spitzer, Esquire VIA FACSIMILE ONLY Wix, Wenger & Weidner, P.C. (717) 234-4224 508 North Second Street PO Box 845 Harrisburg, PA 17108-0845 RE: Estate of Wendell B. Stockdale, 3r. Dear Mr. Spitzer: Laurie J. Stockdale has retained our film to represent her with regard to the estate of her former husband; Wendell B. Stockdale, Jr. She has provided me with copies of a number of documents, including your December 18, 2009 correspondence and proposed Confinnation/Waiver of Benefits. The purpose of this letter is to inform you that she has asked that we represent her with regard to these issues with the hope that this estate is administered with a view towards maximizing the inheritance of David and James. Please address all future correspondence concerning Laurie in this matter to me. As the holidays are upon us, I suspect we will not have an opportunity to directly discuss this matter prior to the New Year. Accordingly, you should not expect to receive anything on behalf of Ms. Stockdale by December 28, 2009 as your letter requested. I look forward to review this matter with you as soon as possible. Yours trul W. Bryan Byler WBB/dep cc: Laurie J. Stockdale 1:\W pdocs~Chenls\Slockdale.Laurie.I~Claim Against the Eslale of Wendell ~. Stockdale, Jr\Spilzer.ln-.122209.doc Byler, Goodley & VlTinl<le, P. C. Attorneys-at-La~> Samuel A. Goodley, lr.' 363 West Poseville Poad W. Bryan Byler Lancaster, Pennsylvania 17601 Eric L. Winkle LL. M. ir, Taxation (Additional Office in Intercourse) January 13, 2010 Telephone (7T7) 560-6330 Facsimile (7~7) 560-6328 Robert C. Spitzer, Esquire VIA FACSIMILE ONLI' Wix, Wenger & Weidner, P.C. (717) 234-4224 508 North Second Street PO Box 84~ Harrisburg, PA_ .17108-0845 RE: Estate of Wendell B. Stockdale, Jr. Dear Mr. Spitzer: As you know, I sent you correspondence dated December 22, 2009 indicating that our firm was representing Laurie J. Stockdale with regard to all matters related to the above Estate. Prior to that correspondence, you had sent her correspondence dated December 1, 2009 in which you included a proposed Supplementary Agreement and asked that she sign it and return it to you. Following additional reflection, counsel and discussion with her children; she has decided that she is willing to execute and enter into the Supplementary Agreement that you prepared as long as the Executors of the Estate do as well. In the interest of efficiency, my client is going to execute the Agreement and deliver it to you directly. You are instructed to hold the document and deliver it to the Executors only after .they have also executed it and agreed to bind the Estate to its terms. Once they have done so, I would appreciate if you would return a copy to me for my records and one directly to my client as well. After that occurs, we expect that the Estate will take the initiative to contact any and all of the entities from which any funds can be expected.in this matter. Of course, as the Agreement suggests, my client will reasonably cooperate in executing any documents she is asked to sign. In determining to conclude the matter in this way, my client hopes and expects that the Estate of her children's late father will be administered by the Executors and their attorneys in as eff ciently as is reasonably possible from this point forward in order that her son's inheritance is maximized: It is also her hope .and expectation that all representatives of the Estate refrain from engaging in unnecessary hyperbole and will instead understand that the best interests of these young men will be served by maintaining mature and respectful communications between all interested parties. Robert C. Spitzer, Esgn Januar}~ 13, 2010 Page 2 Following execution of the Supplementary Agreement by all parties, you can feel free ~o contact Laurie Stockdale directly for any future cooperation. Should she ever feel the need to .have you deal directly with me, she will let you or I know that she would like tha` to begin to occur again. I appreciate your cooperation. V~TBB/dep cc: Laurie J. Stockdale Yours truly, W. Bry yler I:\P%pdocs\Clients\Stockdale.LauricJ\Claim Against the Estate of Wendell II. Stockdale, Jr~Spitzecltr.011310.doc WIX, WENGER &WEIDNER A PROFESSIONAL CORPORATION RICHARD H. WIY, ATTORNEYS AT LAW STEVEN C. WILDS 508 NORTH SECOND STREET THERESA L. SHADE WIY,' POST OFFICE BOX 845 DAVID R. GETZ STEPHEN J. DZURANIN HARRISBURG, PENNSYLVANIA 17108-0845 JEFFREY G CLARK PETER G. HOWLAND (717) 234-4182 • Also Ma111be1 MaSSathusalls Bar FAX (717) 234-4224 www.wwwpalaw. com Ms. Laurie Jo Stoclcdale ~' 1 X00 Bent Creels R1vd., Mechanicsburg, PA 17050 W. Bryan Byler, Esq. Byler Goodley And Winkle P. C. - 363 W. Roseville Rd., Lancaster, PA 17601 Dear Ms. Stoclcdale and Mr. Byler: January 21, 2010 THOMAS L. WENGER DEAN A. WEIDNER ROBERT C. SPITZER Ot Counsel Suburban Office: 4705 DUKE STREET HARRISBURG, PA 17109-3041 (717) 652-8455 On 3anuary 20, 2010, I received from Mrs. Stockdale the signed SUPPLEMENTARY AGREEMENT," and "CONFIRMATION/WAIVER OF BENEFITS." In accordance with arrangements suggested by Mr. Byler, I am enclosing a copy of each of these documents with this letter to each of you, the "SUPPLEMENTARY AGREEMENT" having been signed by Mr. and Mrs. Stockdale, Sr. I appreciate your cooperation in connection with this matter. RS:s Encl. above Cc: Mr. and Mrs. Wendell B. Stockdale, Sr. Very trul yours, WIX, E ~ Vi ID By. ~ ~ Robert C. Spitzer -~ 7~ This agreement is supplementary to, and intended to carry out the terms of that "PROPERTY SETTLEMENT AND SEPARATION AGR:IIEMENT" dated January l9, 2009, between Wendell B. Stockdale, Jr., hereafter "DECEDENT" and Laurie J. Stockdale, "FORMER WIFE," hereafter AGREEMENT. BACKGlE20UND: This Supplementary Ageement is between Wendel] B. Stoekdale, Sr., and Jane Stockdale, in their capacities as Co- executors of the ESTATE of Wendell B. Stockdale, .lr., "ESTATE," and Laurie J. 9tockdale, "FORM)=3.t WIFE." Wendell B. Stockdale, Jr., died October 29, 2009 after DECEDENT' and FORMER WIFE entered into the shove AGREEMENT, and after a divorce decree was entered in the Coup of Common Pleas of Cumberland County, Pennsylvania, to number OS - 3963 of 2009. The AGREEtvIENT was expressly incorporated into the Final Decree of Judge Ehert dated March 10, 2009. . - -DECEDENT died before changing-the-beneficiary (or recipient) ofvarious~lif~'itisur`ance policies,"'employee benefits, and other similar arrangements from his FORMER WIFE to.his ESTATE, or his children, or otherwise. The parties acknowledge that, both pursuant to the AGREEMENT, and pursuant io the law of Pennsylvania, FOFZMER WIFE's interests in these fuzancial benefits generated by DECEDEN'I`s death are void and to no effect, and that such interests belong to ffie .ESTATE of DECEDENT. The purpose of this Supplementary Agreement is to assure the proper disposition of such property interests, and to allow and acconunodate the collection of such property interests from third parties in as simple, and informal manner as reasonably possible, without adverse consequences to FORMER W¢E. AGREENIEh'T: In consideration of the premises;- the mutual promises contained in this Supplementary Agreement, and intending to be legally bound hereby, ESTATE a.tid.FORMER WIFE agree as follows: 1. FORMER WIFE agrees to deliver to ESTATE alI proceeds of life insurance, employee benefits, and similar funds she receives by :virtue of the death of the DECEDENT, and her having been named as a beneficiary or beneficial recipient under any policy or contract or the like, within )!. D days of receipt thereof Z. FORMER WIFE agrees to execute' suoh • documents `as 'third .parties request to enable collection of life insurance proceeds, employee benefits, and similar financial, interests, in her name, but with the acknowledgment made hereunder to ESTATE that she is so proceeding as agent for the ESTATE, and with the obligation to endorse, or turnovei all benefits she receives to th,e ESTATE. 3 . ESTATE, for its part, agrees to .indemnify and .defend FORMER WIFE of and from any claims that might be asserted against her for so preceding, or for so acting as intermediary to cause such benefits to be delivered to tl~e ESTATE. This indemn~cation includes p*oviding to FORMER WIFE such statements or memoranda to accompany her filing of an income tax return or returns to explain why interest or other financial benefit purportedly taxed to-her should not be so taxed to her. Yf such statements or memoranda do not resolve any income Cox question, the ESTATE agrees to be responsible for any income tax consequences FORMER a~'E may so~.encounter. - :.. . . 4. FORMER WIFE agrees to provide any .and alI .documentation. of financial benefits she might receive based upon the death of DECEDENT to the ESTATE, establishing the amounts of payment she makes to the ESTATE pursuant to her obligations above::.. _.. ~ .... .. .. . LAURIE J. STOCKDALE, ~--= ~ ~ ESTATE OF V1/E(~DELL B. ~STOCKDALE, JR. .. `°.:-VI(ENDELL; B. STOCKD LE, SR. / F~~;MAT~ON/~'1~~VER OF BENEF~'~'S CON to be legally bound hereby, Laurie J. Stockdale, havinherebn Intending Jr. Deceased, y formerly married to Wendell B. Stoclc Wendell B. Stockdale, Sr., confirms, waives, assigns and set cl ies asoCo-executors of the ESTATE and Jane Stockdale, mTOCKDALE, JR., all of her right title and OF WENDELL B. S . ' Brest if any, in or to any and all benefits from v~arlous lifasi os w'anch mt ~f fh~>r sil.lzilal a~Tanbel~lell~ , policies, Pmployee benL~~ts, and o~~ ~~ she may be a named a beneficiary, or otherwise. ies ma rely upon this "CONFIRMATION/WAIVER OF Third part y BENEFITS" in making payments to the Estate. ~~~ / a Dated: ~~~~`' ~`~ J G ., . ~~ ~, LAURIE J. T CKDALE: EXHIBIT G Vijendell B-. Stockdale, Sr. Executor, Estate of Mendell B. Stockdale, 3r. 47 Deer Ford Drive Lancaster, Pa 17601-5642 June 7, 2010 Laurie Stockdale 2222 Gleim Court Enola, Pa17025 Dear Laurie: This letter acknowledges receipt of a check for $95, 797.82 from Roche which is to represent the amount due Wendell B. Stockdale, Jr.'s estate from the Roche Savings and Pay Deferral Plan. Sincerely, ~~ Wendell B. Stockdale, Sr. Co-Executor for the Estate of Wendell B. Stockdale, Jr. !Cc: R Spitzer June 15, 2010 Ms. Laurie Stockdale 2222 Gleim Court Enola, Pa 17025 Dear Laurie, This letter will serve as the receipt for check number 1014165 in the amount of $287,881.21 issued to you by ReliaStar Life Insurance Company as payment for insurance proceeds on the life of Wendell B. Stockdale, Jr. which you endorsed to his estate. S' eerely, Wendell .Stockdale, r Co-Executor for the Estate of Wendell B. Stockdale, Jr. ( N V E S T M E X T S Check Number 00243391302. HOFFMANN-LARDCHE:1NC °Fidelity lnvestm.ents Institutions! Operations Co. Account Number .Date of Check 89528 May 27, 20i 0 s2-3s 3t1 ~xxz~x~~r~~~ 8G Void After 180 Days Pay to the Order of: LAURIE J STOCKDALE 2222 GLEIM COURT ENOLA, PA 17025 i~'D 24 3 39 L 30 211' f:0 3 Z ZDD 380f: T4C llOll_IAI IIi t,n~rr~~~arr ir.r.r~...~..~...~....~~~____.._.._- Deutsche Bank Trust Company Delaware /~ ~ ,- Authorized Sigpature 00 590 3 ~ i11' IIIIIIII!Alll~!IIiAINllllllll9111'~IIII IIIPlllll I NA4I' oor~o A0~~;10~'U41~`_ [lUU1;:U"1~~~ LAIJI?IE ~~ STOCI;DALE ~~~~ GLEIM COURT ENOL~ P<~_ 17U~`, Included in this package: Che c]c Distribution Statement VIIII'III INIII~I~III~IIIIIIiIIII~IIIIIIN Maiiinq Instructions: 6 X 9.5 - Auto Insertion Reprint Number: A0527102041: Roche May 27, 201 D Roche Savings and Pa}~ Deferral Plan NA4K 89528 LAURIE J STOCKDALE 2222 GLEIM COURT ENOLA, PA 17025 irnwrtant vis><r~vuuvrr in~vr~nauvn Please verify your transaction for accuracy, and report any discrepandes within 30 days. Discuss the taxabiltly o1 I this distribution with your tax adv~soi O Wob: wwwAO 1 k.com ~I ~~ Phono:l-800-26~i-401 O Hours: Weekdays 8:30 a.m -Midnight ET Important Information on Reviewing This Distribution Statement The following is a summary of a death benefit distribution processed from your account. Please keep this report until you receive a tax form in January of next year. Remember to keep your address up-io-date. distribution Summary Below is your total account balance after your withdrawal. Please verify the information for accuracy. Beginning Balance $158,351 .84 Less Withdrawal -158,351.84 Ending Balance $0.00 Tax Information Please verify the information for accuracy. Total Total Distribution $158,351.84 Return of After-Tax Contributions $33,243.80 Total Taxable Amount $125,108.04 Ordinary Income Amount $125,108.04 Check Information Please verify the actual information agrees with this. LAURIE J STOCKDALE Check Date: 05/27/2010 Gross Amouni $158,351.84 2222 GLEIM COURT Check Number: 243391302 Federal Tax $62,554.02 ENOLA, PA 17025 Net Amount $95,797.82 Fidelity Investments, PO Box 5424, Cincinnati, OH 45250-5424 Page 1 of 2 Confidential Information i~..72! pi it it l0ai Payment type: Death Benefit -non-spousal bene iciary HOFFMANN-LAROCHE INC 89528 NA Check Number: Check Date: 00243391302 May 27, 2010 Description Current Gross $158.351 .84 Taxable $1 2~, 7 08.04 Non-Taxable $33,243.8C FEDERAL TAX $62.554.02 Net $95,797:82 LAURIE J STOCKDALE 2222 GLEIM COURT ENOLA, PA 17025 The payment inu~cated below is from the benefil~ ReliaStar Life Insurance Compani~ provided under an insurance contract with ~ ~~" HOF FMANN-LA RocHE I NC . ` EXPLANATION OF BENEFITS 3 1 CHECK NUMBER 10141565 GL EPisoDE NUMBER MEMBER DEPENDENT DATE GROUP POLICY NUMBER 1 0427703 JUNE 4, 2010 630365-0001 008 ENDELL STOCKDALE JR. ~f you have any questions about this payment please contact Z FIELD STONE DR h CHANICSBURG PA 17050-1725 CECELIA I. RAMPI 612-342-3896 20 WASHINGTON AVENUE S OUTH MINNEAPOLIS, MN 55401 (LIFE INSURANCE BENEFIT AMOUNT BENEFICIARY LIF STAND ..94.,000.00 LAURIE J. STOCKDALE SUPPL STAND 18'8,,:000,.00 2222 GLE I M COURT INTEREST -5,88:1...21 ,ENOLA PA 17025 TOTAL PAYMENT AMOUNT 287,88'1."21 THE LIFE INSURANCE BENEFIT INCLUDES INTEREST AT THE RATE OF 3.50% Detach CHECK at perforation below. See other side for Rights and Review procedures ,,~ ; ,, ReliaStar Life 11 ~, ~~, 3 GL EPISODE NUMBER 1 MEMBER DEPENDENT i DATE GROUP POLICY NUMBER 0427703 JUNE 4, 2010 630365-0001 008 ENDELL STOCKDALE JR. If you have any questions about this payment please contact FIELD STONE DR CHANICSBURG PA 17050-1725 CECELIA I. RAMPI 612-342-3896 20 WASHINGTON AVENUE SOUTH MINNEAPOLIS, MN 55401 Thy payment indicated below Is from the benefit ,ranee Compan Pr =d under an insurance contract with V riOFFMANN-L A ROCHE INC. EXPLANATION OF BENEFITS CHECK NUMBER 10141565 LIFE INSURANCE BENEFIT AMOUNT LIF STAND 94,.000.00 SUPPL STAND 188.,.000:.00 INTEREST 5.,881-.21 TOTAL PAYMENT AMOUNT 287,881.21 THE LIFE INSURANCE BENEFIT INCLUDES INTEREST AT THE RATE OF 3.50 Detach CHECK at perforation below. ~~`~ ReliaSta°r Life Insurance Company ,,; EMBER DEPENDENT WENDELL STOCKDALE JR:` FIRST UNION NATIONAL BANK WILMINGTON,. DE 19803 TO THE ORDER OF: LAURIE.`J. STOCKDALE .2222 GLEIM COURfi ENOLA PA 17025 BENEFICIARY LAURIE J. STOCKDALE 2222 GLEIM COURT ENOLA PA 17025 See other side for Rights and Review procedures CHECK NUMBER -- _ --- DATE JUNE 4, 2010.. X0141565 GROUP POLICY NUMBER - _ -- 630365-0001 008 PAY THE SUM OF: ~~~*~ 287 , 88 ~ • 2 ~ NOT VALID AFTER 180 DAYS ReliaStar Life Insurance Company by 4~~ ----------_.._ __ Treasurer _-----------____-. II'LOL4L56511' ~:03~L00225~:207995D09Z41411^ EXHIBIT H S I~ A~~ ~Y T S B ~~/~ C A S 132 East Locust Street Mechanicsburg PA 17055-3840 717-790-0420 sts0415@live.com June 10, 2011 Robert C. Spitzer, Esq. 508 North 2"`~ Street PO Box 845 Harrisburg PA 17108-0845 RE: Laurie Stockdale and the Estate of Wendell Stockdale, Jr. Greetings Atty. Spitzer: I am writing to you in regards to the 2010 Federal Income Tax Filing for Laurie Stockdale. I prepared Laurie`s 2010 US Individual Income Tax Return including the $158,351.84~~of pension benefits she received as a result of the death of Wendell Stockdale, Jr. as well as preparing a 2010.05 Individual Income Tax Return not including the above described pension benefits. The difference in tax was $35,686.00 however Roche withheld $62,554.00; and now the Estate is due a $26,868.00 tax refund for the overpayment of tax. Should require any additional information please do not hesitate to contact me at the number or email address listed above. I am Si erely, /, ~' ~ ~ ~~i.~6 ~ ~ / ~~ Catherine ~ vely-Ro r Income Tax Preparer ,. ,. ,lu 1. fi ~O 11~ (i (i 1PN~~Dpt~Hi<, ,~ PAYEFrS roderol klenlnrcaUon number REL'1:_.S' WeniJrFL.°n numbs; U4-b5Ge1D7 ~~}_ PAYER'S rramt, c1leel adarew, atr, clalc, and ZIP oaf c r'ID=CITY INVESTMENTS INSTITUTIONAL DPERATiUNS CD. a2 DrVO1aHLRE STREET Y.W1C bUSTUN, MA DZ109 8952B HDFFMANN-.LARUCHE INC flECIPIcNT-8 nerrw, aueel edd,ees (ndu6rnn.api.-aa), cnr, ryale, and ZP cogc ENVT72335984 LAURIE J STDCI.DALE 2222 GLEIM CDURT ENOLk, RA 17025-1494 I 1 Cirpav dmtria,twr, ,__ C 15D , 351.84 ~_ to 7e>rar,io amoum ~#~ 125 , l 0 B , 04 _ oleo N~. t6oF-o11r [~ •~U~ v Fdrn low-r. ~ ~11eMbufiono From t,enslons, Annulllos, Retirement or ProlliSherlrlD Plans, IRpe, Insurance Convaots,-oto. 26 7aL~blp.artnun~ ^ r~~ [~d ,ropy D nddelerrtJrwcl distrtulia-~. -Repolilhlslncome 3GepbeJpeln{wrJuoedinbnz2e) a federellncomelexwllhheld on youriede-al~lex ;S0 • DD -GG2,554 . 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D D 5 D , 0 0 to your return. 7 (1Gtrfuulon mee(t) IRNSEPr a Odrur % Thle Inlorm~lton Ib SIMPLE belnN lurntebed le '4 $ D , D D the Internal ~veYourpermMeper~ eu'iaalempbyoooorMroulwnv •Raronuu60rrlco, Idol dielrtalon % 5 10 Stele Ier•wnhhed 11 SlafdFarora alalo nc. 12 S!f>ab dreViwuon 5.0,00 PA C AcoOUM number Ieee in>rwaiwfe) let yesr d desig. flab mnut,. 73 Loral tar wllhbeld 1A Nenw d.loealny i 6 Local dtatrioullon 2011DLD80721D0632506 6 S Folnl 1098-fl Gewrtmenl d IM 7rea:ury - Imemel itevenun Servge -~ --- - ~- =--.11®~~®1lA~l~9t~l~®~~l1~9d91u1~A)~I~C~~9~1~1~IN~ CORRECTED (II dtedte0l dialribltllons Fram PAYER'S Fedoml idomKwlon number RECIP!`NT'3 Wmldreelfar numaer t Groc: drlria+tAion OMB Na. 151:.-01 1e -Penslona,-AnnUl-fes 04 --65 6 8 1 07 ~-~~~ 5158 , 351.84 2~~ o , Heliremonl or Pro111-Sharlnp Plans, PAYEE[snamereueaaddrec.:,6ly,aaw,andZJPsode 2e7a~mblearrnun~ I IRAe, Inaurence FIDEL I"TY INVESTMENTS X125 , 1 GB , U4 Form twa-aa I Gonlrecle, etc. INST7TU7IDNAL OPERATIONS co. 82 -DEVONSHIRE .STREET -KW1C 2bTaaablaprrwum ^ Taal BOSTON , 'MA D21-D 9 nd deramined dunritwtion Copy C -E O J2 (,+. ~ 5 Gepilel pain IYicnmeo fn boY of 5 hedeY~i IncOmo lak wllhhoid ~ ~ •t'Or•HeClplen('6 HDr=FMANN-.LARDCHE .INC $.D ,DO 562,-554 , 02 I Rocords his Information is belnA RECiP1ENT'S nanw, Quest addreae (Irldudmp da--nor;, dty, slew: ana 21° eaoe 6 Fsployoo unurLrdesig fain 6 Nal unrael¢ed •eppraclalpn f umishod Io tho Intornel oonlmalneurerfeepremlurru ~ -In-emoloyer'ccauRie: -Revenue bervlos. •S33 , 243 .'80 -~0 , 0 0 LAURIE .J ST.DCI;DAL"E 7r.~.7rFatiw,errdele) IRA/5EP/ a t7u,er 2222 GLEI~M .CDURT sulPt.e _NULA„ PA 17.025-_1494 -4 $0 , UO 9a Yourpetcenlapl, d >iir Taal empbyere oonuaaaions total dk:lrbulon % =$ 10S181e lax wNhhek ~t Srefe/Fayelc elate na T2 Stale dr111bl/Wn -50. DO PA 5 Account number Isee Inouugbne) fat year of 6ea~ Pied, conulu. za t.ooal tort wirhhok( 14 Norco aT Ioadily 16 Local dlauinldbn • 2D11D10BD721"ODb325D6 S S Form 1D9s1•R keep Irr your records) Creoerunem arTrea.9ury - Inlemal Revenue Sorrrv PAYER'S Fodorsf identifKalpn nunLpr I pECIPIENTS kiorlulkalbn number 04-6568107 *}**• PAYER: nwno, ctroot addrow, dt7, slam, and ZI,° codo FIDELITY INVESTMENTS INSTITUTIONAL OPERATIONS CD, 62 DEVONSHIRE STREET Y.W1C BOSTON, MA 021D9 89520 HDFFMANN-LARDCHE INC flEL'IP1<=N~f'S rwm, elroel eddreta (r,ckfdv~ apt. rw.). eiq'. ctalo, and ZIP wde LAURIE .l STDCY.DALE 2222 6LEIM CDURT ENDLA, PA 17D25-1~t94 Account number (sae Jnewdlone) trn year of desig. Roth canui5. 2011D1080721D06325D6 Form 1039-R t3ielribuGonn Krom t t3roeedtalrYwtlon OM6Ne. Isas-ott9 PonSlons, Annulll0s 5158 ,351.84 , Retirement or no~ O 6 Prolh-sharlnll Plana, 2oTerebkramoum IRks, IneurHnoe '~ 125 r 108.04 Form tov0~i Contracts, 010, 20 T~.~Inarnwm ^ 7aal © ~pY 2 nor delermined dlalrinulbn ~ File this Dopy wily 15 Gc~pitdpain (irr.Juded In box 2c@ A Fvdoral Inrom• lax wllhbdd yOGr 41g1o, Fiq', or 0 0. 0 0 S G 2, 554.0 2 local inoomo laz return, when required. 6 Eny,ioyeo mnudxrdos~ Rah G N01 unrpali7,a1 apWecialbn conuib a Inemnrroe oremluma In e,mpteyde eeeurnbc 533,243,80 50.00 7 DclnMnion mdo(c) IFM/SEP/ 0 OU»t SIMPLE 4 ~D,DO 9n Your percenta{re of en 7aat enpkryee m.Yr9,vfion: 4otaldGtnbVllorl % 5 1o Stare lax wniJ,eld 7 7 StyerPayela stern na. 12 Stye dL-vQ,ulbn SD,DD PA S 19 Local lnx withheld Yq N„rr n(1°cafny 16 L.oc~l druyxn;or, ~ $ (hp mom cJ Trw:ury - Internet Fjevonue Sarvica EXHIBIT G IN RE: ESTATE OF IN THE COURT OF COMMON PLEAS WENDELL B. STOCKDALE, JR., :CUMBERLAND COUNTY, PENNSYLVANIA Deceased ORPHAN'S COURT DIVISION File No. 2009-01040 AFFIDAVIT OF JAMES W. STOCKDALE I, James W. Stockdale, after being duly sworn upon my oath, deposes and says the following: I am 19 years of age and a current student at Penn State University in State College, Pennsylvania. My permanent address is at 2222 Gleim Court, Enola, Pennsylvania. 2. I submit this Affidavit in support of the Testamentary Trustee, Mid Penn Bank's Objections to the First and Partial Account of my grandparents Wendell B. Stockdale, Sr. and Jane Stockdale, as Co-Executors in my father's estate. 3. Upon the death of my father, Wendell B. Stockdale, Jr., on October 29, 2009 my mother was my guardian. 4. I never asked the law firm of Wix, Wenger & Weidner or my grandparents to have that law firm prepare any guardianship papers on my behalf. It is my understanding that for some reason my grandparents directed the preparation of those papers. The guardianship papers were never filed in court. 5. Following the death of my father, my mother, as my guardian was able to recover for me funds held by one of my father's former employers held by Astellas without the necessity of a guardian being appointed. 6. Earlier this year I had to drop-out of Penn State University for Spring 2011 semester because I could not afford to pay my tuition and living expenses. It is my understanding that my father's estate had funds available to pay some monies to Mid Penn Bank, as Trustee to help me with my education expenses, but my grandparents refused to pay those funds until Mid Penn Bank went into court to compel them to do so. The averments set forth above are true and correct to the best of my personal knowledge. I make this Affidavit subject to the penalties of perjury set forth in 18 Pa.C.S. §4904. I have read the foregoing document and find it to be an accurate account of my statement. ames W. Stockda 23520v1 2 EXHIBIT H Wix Wenger & Weidner 508 North 2nd Street P.O. Box 845 Harrisburg, Pennsylvania 17108 Ph:717-234-4182 Fax:717-234-4224 Mr. James Stockdale 2222 Gleim Court Enola, Pennsylvania 17055 Attention: RE: James Stockdale -Guardianship -Benefits June 16, 2010 File #: 8278-15540 Inv #: 19597 DATE DESCRIPTION HOURS AMOUNT LAWYER May-18-10 Review and research Guardianship papers 2.70 540.00 RCS May-19-10 prepare Petition 0.50 100.00 RCS May-20-10 memo to S. D, re: Petition 0.50 100.00 RCS memo from R. Spitzer regarding Petition for 0.30 67.50 SJD Appointment of Guardian for Minor for James Stockdale. May-26-10 revise and calculate Pa Tax & Accounts 1.50 300.00 RCS May-27-10 review and correspondence re status 0.50 100.00 RCS May-28-10 review and reply to email ;review agreement 0.80 160.00 RCS adn status May-29-10 review and reply to email re: JP Morgan 0.20 40.00 RCS Jun-O1-10 review and reply to email re: status of 0.40 80.00 RCS payments Jun-02-10 review and reply to email re: house payments 0.20 40.00 RCS Jun-04-10 review and reply to email ;revise petition for 0.60 120.00 RCS Guardian. Invoice #: 19597 Page 2 preparation of Petition for Appointment of a 2.50 562.50 SJD Guardian of the Estate of James Stockdale, a minor. e-mail to and e-mail from R. Spitzer regarding same. intrao~ce conference with S. Dzuranin re: 1.60 136.00 DBW petition for guardian of minor assets; email to S. Dzuranin re: proposed format; legal reseazch re: appointment and procedure; memo to S. Dzuranin re: findings Jun-07-10 telephone message from office of Register of 0.10 8.50 DBW Wills re: filing fees for petition; telephone message to S. Dzuranin re: same Jun-11-10 suggest revisions to Petition ;email 0.50 100.00 RCS revisions to Petition for Appointment of 0.60 135.00 SJD Guardian. a-mail to R. Spitzer regarding same. e-mail from R. Spitzer regarding Petition for 0.60 135.00 SJD Guardianship. telephone conference with R. Spitzer regarding signing Petition. correspondence to Wendell Stockdale, James Stockdale and L. Stockdale regarding Petition for Guardianship with instructions to sign and return the same. Jun-14-10 review and reply to email ;telephone 0.50 100.00 RCS conference with accountants re: tax aspects e-mail from and e-mail to R. Spitzer regarding 0.20 45.00 SJD Petition for Guardianship. revisions to correspondence sending same to client and other signatories to same. Jun-15-10 review and prepare ;email 0.80 160.00 RCS Totals 15.60 $3,029.50 TIME SUMMARY Time Keeper Rate Hours Amount RCS $200.00 9.70 $1,940.00 SJD $225.00 4.20 $945.00 DBW $85.00 1.70 $144.50 Invoice #: 19597 Page 3 Total Fee & Disbursements $3,029.50 Interest Due $0.00 Balance Now Due $3,029.50 For your convenience: We accepl Visa, Mastercard and Discover Wix Wenger & Weidner 508 North 2nd Street P.O. Box 845 Harrisburg, Pennsylvania 17108 Ph:717-234-4182 Fax:717-234-4224 Mr. James Stockdale 2222 Gleim Court Enola, Pennsylvania 17055 Attention: RE: James Stockdale -Guardianship -Benefits DATE DESCRIPTION Jun-15-10 telephone message from W. Stockdale with correction to Petition for Guardianship. revisions to same. Jun-16-10 review ;message re: claim Jun-17-10 review ;prepare for conferenc ; intraoffice conference with the Stockdales and Huntzinger review file, emails and status ;call JP Morgan Jun-21-10 e-mail to R. Spitzer regarding signatures for Petition for Appointment of Guardian. Jun-22-10 e-mail from R. Spitzer regarding signed consent forms for Petition for Guardianship. Jul-07-10 several e-mail communications regarding guardianship petition. Jul-14-10 per res Totals TIME SUMMARY July 14, 2010 File #: 8278-15540 Inv #: 19795 HOURS AMOUNT LAWYER 0.10 22.50 SJD 0.20 40.00 RCS 3.40 680.00 RCS 0.80 160.00 RCS 0.10 22.50 SJD 0.10 22.50 SJD 0.10 22.50 SJD 0.50 RCS 4.80 Amount $0.50 Time Keeper Rate Hours RCS FeelAdjust~ Invoice #: 19795 Page 2 RCS $200.00 4.40 $880.00 SJD $225.00 0.40 $90.00 Total Fee & Disbursements Previous Balance Interest Due Balance Now Due For your convenience: We accept Visa, Mastercard and Discover $970.50 3,029.50 $0.00 .ry~vvv.vv EXHIBIT I ADDITIONS/SUPPLEMENTS TO TIMESLIP RECORDS SUBMITTED WITH BILLING STATEMENTS OF JUNE 17, 2010 FROM CORRESPONDENCE FILES, AND DOCUMENTS FILES, AND EMAIL RECORDS: This Addition/Supplement to time records set forth in Statements of June 17, ?010, is submitted per the request of counsel to James and David Stockdale, and Mid Penn Bank for further detail than set forth on the slips themselves, which are copied onto the bill submitted to the Estate of Wendell S. Stockdale, Jr., Deceased. November 3, 2009 telephone conference with Mr. Wendell Stockdale, Sr., regarding representation of estate of his deceased son, Wendell, Jr., divorced, father of two. Request Mr. Howland to obtain statutes regarding forfeiture of rights upon divorce, 1999 Will.. November 4, 2009 Prepared various representation and estate administration documents including Notice Agreement For Limited Legal Services, Petition for Probate, with notations concerning statutory modifications to will as to participation of surviving but divorced spouse. Conference with David, James, Wendell, Sr. And Jane Stockdale and review and approval of documents, and discussion of facts and circumstances of estate and prospects of informal, abbreviated administration (Letter regarding same "tabled" because of expressed concerns by David and James as to motives of attorneys); November 5, 2009, review and prepare estate administration documentation, correspondence, filings, account lists, asset lists, requests for further information, reviewing materials provided in records; consideration of Pennsylvania statutes (research by Peter Howland) governing or purportedly governing entitlement of divorced spouse to employee benefits and qualilicd plans governed by ERISA, and life insurance, as named beneficiary, and entitlement to participate in administration of the Estate (named Executrix and residuary beneficiary of estate under unrevoked will); Finalize Petition for Probate, noting divorce and statutes and PROPERTY SETTLEMENT AND SEPARATION AGREEMENT as to no role for Laurie Stockdale even though she was named Executrix as to administration; Probate of Will and further conference with Mr. And Mrs. Stockdale in Cumberland County; November 6, 2009 preparation of admistration documents, correspondence, petitions, filings, asset lists; telephone conference; e-mail communications; review Social Security information, Reviewed documentation provided in file boxes of Decedent delivered; November 9, 2009, preparation of administration documents including Notices to beneficiaries and parties in interest; November 11, 2009, prepare and transmit Notice to Welfare re state benefits; C:ADocuments and Settings\SJD\LocaL Settings\Temporary Internet Files\OLKAFC\ADDITIONS 2 TO TIMESLIP RECORDS FROM FILE RECORDS ON COMPUTER.docLast panted 2/25/20 ~ 1 )30:00 AM November 12, 2009 Conference with Stockdales concerning status of administration and other issues, and receipt from them of further boxes of records and stacks of stale dated checks for collection and processing and assembly and review; fax to Astellas re benefits; November 13, 2009 reviewed documents provided; preparation of documents lists and status of administration and proposed actions; preparation of status report of administration; correspondence to third parties including Executors, beneficiaries, creditors, governmental entities, preparation of Notices of Administration, and consideration and decision as to entitlement to notice of Laurie Stockdale, David and James Stockdale, and Fulton Bank (named Trustee); transmit certificates of providing notices; Preparation of facsimile transmission; update status report; assemble data for administration; preparation of memorandum seeking intra-office assistance from paralegal in connection with various categories of assets of limited value, but requiring administration; reviewing assets of the Estate listings; transmittal to employee benefit provider, Roche; Advised of potential collection of Roche employee benefit moneys and life insurance proceeds for the Estate, although apparently payable to Laurie Stockdale as the named and presumptive beneficiary; report of status of administration, and advised to share report/correspondence with David and James. Report/update as to status of administration issues to co-executors; November 16, 2009 reviewed such limited income tax information provided in large box of papers; communicated with executors and correspondence to tax preparer as to what were thought to be unfiled returns and information, and requirements for necessary filings to comply with legal requirements, for Wendell, Jr., and others; delivered many various uncashed checks to Mr. Stockdale for effort (unsuccesful) to use Bank to collect same; reviewed and prepared summaries of assets; certify notices; review other employee benefit materials delivered- Astellas; November 18, 2009 second facsimile to Roche concerning employee benefits and information; November 19, 2009, preparation of receipt and release for minor's account documentation with PNC checking and savings; November 20, 2009 preparation of memorandum concerning request for paralegal assistance with estate administration tasks requiring special attention because of volume of papers or values thereof (uncashed checks and securities); November 24, 2009 preparation of agenda for conferences/activities November 25; November 25, 2009 full day conference with Mr. and Mrs. Stockdale concerning payment or not of estimated Pennsylvania inheritance tax to obtain credit for early payment; escheated funds due estate and claims therefor; wisdom of Laurie collection of benefits from Roche; consideration of and submission to tax preparer of prospects for tax credit for heating system; establishment of brokerage and bank accounts and necessity therefor and requirements therefor; Preparation of materials for establishing accounts;conference with Mr. And Mrs. Stockdale, then the three of us with Ameritrade stockbroker, Harrisburg office opening account and soliciting assistance concerning securities registrations and pursuing collection of various uncashed checks; supervising execution of account documentation, conference with bank C:\Documents and Settings\SJD\Local Settings\Temporary Internet Files\OLKAFC\ADDITIONS ? TO TINIESLIP RECORDS FROM FILE RECORDS ON COMPUTER.docLast printed 2/25/201 I ):30:00 AM representatives and opening and review of safety deposit box materials at Camp Hill office, Metro; and preparation of Inventory therefor, and further conferences as to disposition of various property interests; review materials concerning Astellas November 30, 2009, preparation of SUPPLEMENTARY AGREEMENT with Laurie Stockdale. in light of refusals to fulfill obligations under Property Settlement and Separation Agreement, concerning cooperation of the decedents former wife in asset collection, in light of the inforn~ation provided as to her unwillingness to fulfill contractual commitments entered into in connection with divorce proceedings; transmit Inventory; December 1, 2009 email and facsimile ommunications to paralegal and Broker as to Escheat and uncashed checks, and other asset record keeping and assembly requirements; preparation of Affidavit Of Domicile for Ameritrade Inc., for executors' delivery of securities for reregistration: and checks for collection; preparation of correspondence to Laurie Stockdale concerning collection of and turning over of assets to which she asserts a claim (Check for 52000), etc., but which are property of ,and payable to the estate; further preparation of SUPPLEMENTARY AGREEMENT as to assets; December 3, 2009 conference with Mr. Stockdale as to administration, and issues as to paralegal concerning status of administrative issues and matters, including real estate, brokerage docemnets, draft of Pa. Inheritance tax return; review of checkbook ledger; December 8, 2009 memorandum to office staff paralegal concerning tasks required in connection with various estate assets December 10, 2009 delivered bonds to Wendell Stockdale for James and David Stockdale; receipt and review of materials concerning relationship of Wendell, Jr., and Laurie Stockdale; December 11, 2009 correspondence to employers and institutions holding accounts, requesting balances and documentation and beneficiary information; including Astellas; December 14, 2009 review Roche letter of 12/11/2009, Roche description of benefits (Savings Plan $155,000 and proceeds of life insurance $272,000 -plus interest) payable to La~u-ie Stockdale as named beneficiary concerning employment and benefit and life insurance arrangements and benefits, as to which-as indicated-Laurie Stockdale was the designated beneficiary, and presumptive recipient; review Columbia Water Company information concerning shares and valuation; December 16, 2009, Further review of asset information and materials; Preparation of asset lists, including coins from inventory, and assemble from boxes of materials provided; lists of uncashed checks; review of alternative courses of action to compel cooperation of Laurie as to asset collection, including initiation of legal proceedings such as declaratory judgment to compel compliance with commitments, conference with Mr. Clark concerning such proceedings; email communications concerning letter demanding cooperation and Laurie Stockdale's endorsement and return of money to which Estate is entitled. Drafts of correspondence with Mr. Stockdale, and email as to collection of assets with paralegal; C:ADocuments and Settings\SJD\Local Settings\Temporary Internet Files\OLKAFC\ADDITIONS 2 TO TIMESLfP RECORDS FROM FILE RECORDS ON COMPUTER.docLast printed 2/25/201 1 9:30:00 AM December 17, 2009, review collection efforts as to assets, and suggested arrangement with Laurie Stockdale; disposition of vehicles; decedent's letter to former wife as to benefits; review and consideration of proper devolution/distribution of assets as to which divorced spouse may be entitled, and consideration of intentions of Decedent and family achievement of goals and objectives; preparation of memorandum concerning opinion as to Executors' duties to pursue or not funds and assets life insurance and employee benefits not payable to the Estate, but to which the estate may be entitled by virtue of Laurie Stockdale's commitments; review and further preparation of letter to Laurie Stockdale concerning asset collections; preparation of agenda for December 17, 2009 conference; SEE OPINION/LETTER of 12/17/2009, ATTACHED, AS TO CO-EXECUTORS' DUTIES AS TO ASSETS AND ESTATE AND BENEFITS-CONCLUSION AND SUBSEQUENT EFFORTS RESULT IN ESTATE RECOVERY OF $446,233.05; December 18, 2009 correspondence to Laurie Stockdale as to collection of various assets (uncashed checks payable to her and Wendell Jr.), et al and Preparation and modification and several reviews of drafts of such correspondence with co-executor; Finalize such. correspondence and transmit; December 22, 2009 preparation of memorandum as to calculations and asset organization and collection and assembly; regarding utilization of paralegal for various tasks; Byler communications; December 23, 2009 review listing of inventory of firearms and address requirements for the disposition thereof; December 26, 2009 review and email as to attitudes and concerns and suspicions of David and James, from first conference, and influences upon those attitudes; December 28, 2009 begin legal and documentary Research concerning estate entitlement to employee benefits, including assets belonging to the Estate, such as vacation pay and accnied benefits immediately payable, and qualified employee benefit accounts, savings plans and life insurance and the like as to which Laurie Stockdale had asserted entitlement; further review of Property Settlement Agreement and court decree as to fulfilling standards of Qualified Domestic Relations Order, so as to entitle estate to receive employee benefits; Reviewing available Roche materials, to determine applicable principles, and conference with Mr. Dzuranin concerning estate entitlement to Employee benefits and life insurance, and rules relating thereto, and office capability to address or seek expert opinion/assistance; Kennedy and Savers; January 6, 2010, further review and research as to estate entitlement to employee benefits, in light of contractual commitments and enforceability thereof, Kennedy and Savers; preparation for and conference with Mr. Dzuranin, David and James Stockdale (Not Wendell nor Jane Stockdale---at the request of David and James) concerning representation, and relationships, and status of estate C:~Documents and Settings\SJD\Local Settings\Temporary [nternet Files\OLKAFC\ADDITIONS 3 TO TIMESLIP RECORDS FROM FILE RECORDS ON COMPUTER.docLast printed 2/25/201 1 9:30:00 AM administration; discussion of efforts to reduce and minimize time and effort expended through urging cooperation of Laurie Stockdale; issues generated by employee benefit entanglements, and claims made by Laurie Stockdale despite the Property Settlement and Separation Avreement (commitments unknown to David and James) additional costs and expenses oi` administration where disagreements and misunderstandings exist as to role and duties and expenses of counsel; whether to engage "expert" advice as to employee benefit issuesconcluded not necessary at that point; and Addressing communications issues David and James felt existed as to status of estate matters -resolved by David and James urged to call every Friday to discuss what steps are going on, and what matters are being addressed and how; this seemed to be satisfactory solution to communication and understandings as to counsel; January 7, 2010, preparation of memorandum summarizing substance and conclusions ft-om meeting January 6 with David and James Stockdale; office conference with co-executors concerning employee benefit issues, alternatives as to how to proceed (addressing option of engaging "expert" to advise estate as to entitlement or not), and courses of action that would be available, and duty of executors to collect assets intended for the benefit of mist benefiicaries, and held and distributed in accordance with trust; Begin preparation of draft claim to Roche, as to the estate's entitlement under ERISA and Pennsylvania law and federal law to employee benefits and life insurance proceeds, despite Laurie Stockdale being the named beneficiary thereof January 8, 2010, Further research and study and continued preparation of draft claim to Roche as to employee benefits and life insurance proceeds, and correspondence to other companies as to recovery of estate assets; January 11, 2010 correspondence to Compushare concerning corporations' share certificates and dividend payments; retransmit materials to Kronos for collection of estate assets; calculation of values of estate assets identified to date; preparation of various claim forms for entitlement to assets; January 12, 2010 review files and preparation of update as to status of estate administration matters in the form of correspondence to co-executors; transmit and review Department of Revenue checking account reporting forms for checking accounts at PNC Bank, National Association, reflecting that inheritance tax would be paid from the Estate; Confirmation and Waiver of Benefits by Laurie Stockdale received for submission to account holders; January 14, 2010 communications to Mr. Stockdale, executor, concerning Laurie Stockdale's representation by attorney Byler in Lancaster, and facsimile transmission to Mr. Byler concerning various agreements executed by Laurie Stockdale, and requested to be executed by Laurie Stockdale, to facilitate collection of estate assets, and minimize time effort and expense required to collect estate assets; conference with Mr. Dzuranin concerning employee benefits issues, and discussions concerning Laurie Stockdale representation by Mr. Byler; Further preparation of claims on behalf of the estate to employee benefits and life insurance; January 15, 2010 review of Prudential Insurance claim and preparation of asset valuation materials and asset summaries; tlelphone conferences with Bank as to reissuance of $2,OC-0.17 check; Letter C:~Documents and Settings\SJD\Local Settings\Temporary Internet Files\OLKAFC\ADDITIONS 2 TO T[Y(ESLfP RECORDS FROM FILE RECORDS ON COMPUTER.docLast printed 2/25/2011 9:30:00 AM to Laurie Stockdale re collection of check as to which collection stopped, for $2,000.17, and suggestions for resolution of confusion and delay; January 19, 2010 emails concerning failure of David and James to cooperate and assist with administration issues, and efforts to maximize estate assets. January 20, 2010, for the preparation of asset valuation materials and asset summaries as to further boxes of materials delivered; made determination not to prepay inheritance tax because of uncertainties as to taxable estate, and ultimate tax due; emails as to Astellas benefits and account; January 21, 2010 transmission of claim for benefits to Roche and further preparation of asset valuation materials and summaries; transmit documents to Mr. Byler; January 22, 2010 further review preparation and analysis of legal authorities and documentary materials provided by Roche concerning employee benefits claims, and finalize claim to life insurance and employee benefits payable to Laurie Stockdale for the Estate in form of JANUARY 22, ZO1O CLAIM LETTER ATTACHED; January 26, 2010 Review chart and correspondence and Roche materials concerning life insurance and savings plans, and Qualified Domestic Relations orders and employee benefits relationships; February 2, 2010 preparation of correspondence transmitting to executors checks and report concerning assets; further analysis of estate asset composition and valuation; correspondence as to Columbia Water, and valuation issue and uncollected checks; February 3, 2010 email as to suggestions to obtain replacement for stale and encashed checks; February 5, 2010 Further review of asset materials, and facsimile transmissions to account holders; emails re Columbia Water checks; emails with J P Morgan re Astellas account; February 9, 2010 receipt of and review of appraisal documentation From Cordier; February 10, 2010 continued efforts as to preparation of Pennsylvania 1500 Inheritance tax form including assembling information and materials regarding assets and valuations, debts and expenses, and calculations related ; February 12, 2010 reviewed conditions of auction and begin preparation of suggested modifications thereof for the sale of real estate; February 14, 2010 reviewed and email communications as to securities assembly and valuation, and Laurie Stockdale lack of cooperation as to $2,000 check and its collection; February 16, 2010 further preparation of Pennsylvania 1500 inheritance tax return, information C:ADocuments and Settings\SJD\Local Settings\Temporary Internet Files\OLKAFC\ADDITIONS 2 TO TIMESLIP RECORDS FROM FILE RECORDS ON COMPUTER.docLast printed 2/25/201 19:30:00 AM assembly and consideration of materials as to the assets and values, debts and expenses and calculations related thereto; February 17, 2010 further preparation of Pennsylvania 1500 inheritance tax return, infornation assembly and consideration of materials as to the assets and values, debts and expenses and calculations related thereto; including reviewing mortgage balance statements and calculation of mortgage balance and interest and principal payments for inheritance tax purposes, and related materials concerning household expenses; February 22, 2010 send executors report as to check collections and analysis and preparation thereof; $2000 check finally received from Laurie in form available for collection/deposit; February 23, 2010 send executors report of calculations of debts and expenses and further preparation of asset lists and valuation assets and further preparation of Pennsylvania 1500 Inheritance tax return, information assembly and consideration of materials as to the assets and values debts and expenses and calculations related thereto; Facsimile transmittal to co-executors; February 25, 2010 preparation and transmittal to co-executors of valuation of non-appraised tangible personal property and other assets;further preparation of Pennsylvania 1500 Inheritance tax return, information assembly and consideration of materials as to the assets and values debts and expenses and calculations related thereto; preparation of memorand~un concerning valuation of Columbia Water Company shares; February 26, 2010 further research and analysis of interaction of Pennsylvania state laws concerning rights of divorced couples and federal Employee benefit principles regarding qualified domestic relations order requirements and review of Kennedy versus DuPont case, and other precedent and savings -pay deferral materials and life insurance materials and retirement account materials from Roche;Preparation and continued preparation of supplement to claim form to Roche based upon subsequently received materials and theories of recovery; March 1, 2010 Begin preparation of deed to house; Further review of legal authorities as to estate entitlement to employee benefit and life insurance proceeds -review articles in research file; prepare Memorandum and draft of Supplement to Claim for benefits to Roche; March 2, 2010 further research of applicable cases to entitlement of life insurance and employee benefits under ERISA, and Pa. Law, including Kennedy, McCalip, McCord, Metropolitan Life iNs., Teachers' International, Hess, Staelens, Jagar, Metro Life 2, Chavarria, and commentators. and finalize and transmit Claim Supplement to Roche; Further review of the status of estate administration process, and consideration of additional steps and actions required. and preparation of list of additional items to address in connection with estate administration; March 11, 2010 telephone conference with attorney Sholk of the Gibbons firm, for Roche as to processes and procedures and disposition of ERISA Benefits and Plans; March 12, 2010 review Entitlement to employee benefits and life insurance benefits, telephone conference with Roche attorney and review Roche offer as to employee benefits C:`,Documents and Settings\SJD\Local Settings\Temporary Internet Files\OLKAFC\ADDITIONS ? TO TIMESLIP RECORDS FROM FILE RECORDS ON COMPUTER.docLast printed 2/25/201 1 9:30:00 AM March 16, 2010 conference with Mr. And Mrs. Stockdale concerning various estate issues, especially the employee benefits and insurance claims, and the potential taxes thereon, auction of real estate and personalty, powers of attorney, meaning and enforceability of various Laurie Stockdale agreements and suggested agreements with Roche, and impact of Kennedy and ERISA and Sauer, and uncertain status thereof on entitlement of Estate or named beneficiary to employee benefits and life insurance. March 18, 2010 finally received from Roche counsel the actual plan documentation for the life insurance plans, and the Savings plan, and reviewed same; discussion of next steps, including THREE WAY AGREEMENT for disposition of funds; March 19, 2010 further review of Roche materials- received 19th- as to life insurance plans, savings pay deferral plan, basic life insurance plan, and Stockdale beneficiary information related thereto; Preparation of and review for preparation of agreement between Roche, Laurie Stockdale, and the estate for the receipt and ultimate distribution of employee benefits and life insurance proceeds-- "THREE WAY AGREEMENT," Drafting, further research and communications about proposed agreement to resolve Roche/Laurie/Estate entitlement issues, and impasses as to benefits and life insurance proceeeds, and Laurie's continuing claim thereto; March 26, 2010 Roche advises through its attorney what it is willing to do as to distribution of funds (to Laurie Stockdale) and submits its proposed distribution agreement, without response to Draft transmitted to it; April 1, 2010 telephone conference with Mr. Sholk re withholding tax on benefits;and emails; April 7, 2010 reviewed and prepared suggested changes to Agreement For The Sale Of The Real Estate; further email communications concerning the auction sale April 23, 2010 emails re not attending auction sale, and prospects for auction success; April 25, 2010 email concerning auction sale of house and contents, and next steps to sell House; Apri126, 2010 email concerning sale of house, and telephone conference with Mr. Sholk re Roche and income tax withholding ; April 28, 2010 review of Cordier materials concerning auction proceeds; receive and revie~~ correspondence from Gibbons law firm -Roche- concerning the disposition of employee benefits and life insurance and proposed three-way agreement; review of proposed Roche agreement for distribution of employee benefits and life insurance; communications with J.P. Morgan re Astellas benefits, and guardian necessity for minor beneficiary (see 5/14); and emails re Astellas; April 29, 2010 communications with Astellas concerning claim for retirement benefits, and its asserted necessity of Guardian appointment to receive employee benefits for a minor, and requests for confirmation of information related thereto; C:~Documents and Settings\SJD\Local Settings\Temporary Internet Files\OLKAFC\ADDITIONS 2 TO TIMESLIP RECORDS FROM FILE RECORDS ON COMPUTER.docLast printed 2/25/201 1 9:30:00 AM May 14, 2010 email communications from J. P. Morgan re necessity of guardianship for minor to receive benefits May 24, 2010 further preparation of Pa. 1500, and calculations of assets and expenses; May 26, 2010 further preparation of Pennsylvania 1500 inheritance tax return, information assembly and consideration of materials as to the assets and values debts and expenses and calculations related thereto; May 27, 2010 preparation of update and correspondence to co-executors concerning status of various Estate administration issues, including income and inheritance tax issues with Roche benefits received and minimization of impact; tax responsibilities of David and James; status of Laurie not providing communications from Roche; property valuations including coins and guns; estimated Pa. Inheritance tax due and payable; problems of cash flow, and approaching lender foi- suspension of mortgage payments or arrangement; marketing issues for reas estate; June 7, 2010 further preparation of Pennsylvania 1500 inheritance tax return, information assembly and consideration of materials as to the assets and values debts and expenses and calculations related thereto; And preparation of supplement to return to include Toyota values; June 17, 2010 conference with Mr. And Mrs. Stockdale concerning administration; income tax strategies; reviewing bills for services, and guardianship issues and payment for services, and Inheritance tax return, and attachments reviewed and approved and signed and check for tax due, and discussed audit risks and use of money for David and James and loan at-rangements-risk distributions; review of Inventory, and calculations; review sihtation as to trustees and alternatives thereto. FURTHER NOTES: July 16, 2010 filed Pa. Inheritance Tax return; August-September-Auction and sale of real estate. Addressing trust and trustee issues and successors. Robert C. Spitzer C:~~Documents and Settings\SJD\Local Settings\Temporary Internet Files\OLKAFC\ADDITIONS 2 TO TIMESL.IP RECORDS FROM FILE RECORDS ON COMPUTER.docLast panted 2/25/201 l 9:30:00 AM MEMORANDUM TO ACCOMPANY ADDITIONS/SUPPLEMENTS TO TIMESLIP RECORDS SUBMITTED WITH BILLING STATEMENTS OF JUNE 17, 201.0 FROM CORRESPONDENCE FILES, AND DOCUMENTS FILES, AND EMAIL RECORDS. The purpose of this MEMORANDUM is to describe the circumstances regarding the administration of the estate of Wendell B. Stockdale, Junior, supporting the charges for services rendered, reflected in June 17, 2010 statements as added to and supplemented. Preliminarily, counsel had no previous relationship with any of the parties in interest to the Wendell B. Stockdale, Jr. estate, before November 3, 2009, when Wendell B. Stockdale, Senior, called Mr. Spitzer to seek assistance and representation in connection with estate affairs. Because Mr. Stockdale mentioned that his son had been divorced, I requested an associate in our office to provide for me copies of statutes which I thought might be applicable, limiting the benefits of the divorced spouse, and the role of the divorced spouse in a decedent's estate. The decedent's Will -- not modified after the divorce -- in fact gave everything to his now divorced spouse, and named her as executor, and his parents as successor coexecutors. The next day, November 4, 2009, Mr. Spitzer met with Mr. and Mrs. Stockdale, named successor executors under the will, and James and David Stockdale, sons of Wendell Stockdale, Jr. At this conference, there was a frank and open discussion of representation, and relationships, the executors' obligations to collect estate assets to which the estate was entitled, [regardless of claims thereto by third parties, including Decedent's divorced spouse and to distribute where the law required -- not in accordance with the Will to the decedent's divorced spouse] and fee issues. We all reviewed the "NOTICE/AGREEMENT FOR LIMITED LEGAL SERVICES" and the agreement and representation arrangements were approved and signed by Mr. and Mrs. Stockdale. Notwithstanding these discussions concerning the NOTICE, and representation issues and counsel's roles, both David and James Stockdale had obvious and preconceived concerns and suspicions about ulterior purposes of counsel, including alleged efforts to maximize costs and expenses to the estate, and wasting their money. NOTE: THE HOURLY RATE OF MR. SPITZER (43 YEARS EXPERIENCE, HANDLING ESTATE AND TRUST MATTERS THROUGHOUT THIS PERIOD, FOR ESTATES OF MODEST OR NO VALUE TO ESTATES IN EXCESS OF $40,000,000, AND SUCCESSFULLY REBUFFING CHALLENGES TO FIDUCIARIES UP THROUGH THE PENNSYLVANIA SUPREME COURT) IN THE AGREEMENT IS $200., AND DAVID AND JAMES LATER ENGAGED SEPARATE COUNSEL AT HER RATE OF $240. PER HOUR. C:ADocuments and Settings\SJD\Local Settings\Temporary Internet Files\OLKAFC\MEM02 TO GO WITH ADDIT.docLast printed 2/25/201 1 9:30:00 AM David and James had discussed some of these issues with their mother or others, and had preconceived notions and judgments about the executors' duties, and the estate administration, and the distribution of assets generated by the death of Wendell Junior. Based upon these concerns and suspicions, after reviewing what Mr. Spitzer usually suggests and suggested as a direction by the beneficiaries to counsel to pursue an "informal" settlement of the estate, abbreviating steps that are not otherwise necessary and can increase costs and expenses. at was decided to defer consideration of this strategy, despite the potential additional costs and expenses. Notwithstanding these concerns, the next day, November 5, 2009, we probated the will in Carlisle. Cumberland County, Pennsylvania, providing to the Register copies of statutes, and the agreement between Wendell Junior and his former wife, and the divorce decree, and the Register issued letters testamentary to Wendell and Jane Stockdale, without a hearing or other authority therefore. Subsequent interactions with David and James Stockdale evidenced and revealed further not only the above suspicions of lawyers, but distrust of the motives and activities and attitudes of their grandparents, Wendell Senior and Jane Stockdale, especially in their roles as co-executors, but also concern as to their serving as agent or attorney in fact for David and James. At one of our first meetings, I had suggested that the parties consider making certain that each had appointed an attorney in fact who could act for him or her either out of necessity or convenience -- apower of attorney -- as well as have in place a current will providing for the disposition of their assets. Per Wendell's directions, I prepared powers of attorney on about November 13. 2009, Mr and Mrs. Stockdale, and for James and David, which we reviewed, and which they signed, along with their own separate NOTICE/AGREEMENT FOR LIMITED LEGAL SERVICES," on November 25. 2009. There was obvious reluctance on the part of David and James to do this, and in early January of 2010, they revoked both these powers of attorney. The revocations appeared to have been prepared by a lawyer, and were mailed from Lemoyne. Pennsylvania, but there was no further communication from a lawyer on their behalf until mane months later. David and James had consulted with Stephanie Klinefelter, Esquire, about these issues. Early on in the administration process, in November, the issue of entitlement to employee benefits and life insurance policies was broached. Despite these statutory provisions to the contrary, and the PROPERTY SETTLEMENT AND SEPARATION AGREEMENT between Wendell and his divorced wife, David and James reiterated and supported claims by their mother, Laurie Stockdale, that she was entitled to these benefits, and asserted that various tax consequences supported distribution of these funds to Laurie Stockdale, as opposed to the estate, and ultimately held in trust for the benefit of David James in accordance with specific Limited terms and conditions as to access thereto, in the Will. The details of Roche's letter of December 11, 2009, describing the hundreds of thousands of dollars of life insurance and employee benefits as to which Laurie Stockdale was the named C:ADocuments and Settings\SJD\Local Settings\Temporary Internet Files\OLKAFC\MEM02 TO GO WITH ADDIT.docLast printed 2/25/201 1 9:30:00 AM beneficiary, (a copy of which was sent to the estate and Laurie), were both known to David and James. The greatest part of the time effort services research and analysis expended in connection with the estate administration related to these disputed issues of entitlement to employee benefits and life insurance, between the named beneficiary, Laurie Stockdale, and the estate of Wendell Stockdale Jr. On January 6, 2010, at the request of David and James Stockdale, (to meet without Wendell Senior and Jane) we met in our office, and because of the concerns expressed above about suspicions and preconceived notions, etc., I requested Steve DZURANIN to join the meeting. David and James detailed some of the family issues that generated disagreements and even hostility between them and their grandparents, essentially based upon the grandparents' relationship with their mother, Laurie Stockdale. Early on, I had considered engaging in employee benefits "expert" to advise us as to the estate's entitlement or not to the life insurance proceeds and employee benefits. This was after some research, leading me to the Kennedy United States Supreme Court case, that, regrettably, provided substantial support for Laurie's claim. Most simply stated, because Laurie Stockdale is the named beneficiary, and without a qualified domestic relations order (as to which we considered making a claim against divorce counsel), ease of administration of employee benefit plans mandates payment to such a named beneficiary. Similarly, the status of Pennsylvania law concerning enforcement of statutory and agreement provisions -- but not a Qualified Domestic Relations Order -- is unclear, the Savers case not having been decided by the Pennsylvania Supreme Court. See also, Anatomy of a QDOT, PBI #2007-5100, and Egelhoff v. Egelhoff, 532 U.S. 141, 121 S. Ct.1322 (2001). As set forth in an opinion letter to the co-executors of January 17, 2010, after consideration of all these factors, I had concluded that the co-executors had a clear and mandated duty to collect such employee benefits and life insurance proceeds as they could, even if that meant conflicts and litigation with Laurie Stockdale, the named beneficiary, because the co-executors have an overriding duty to carry out the intentions of the decedent, as expressed in his wi11,(more clearly addressed there than anywhere else-designation of beneficiary forms), for the fiends to be held in mist for David and James, terminating at age 28. Quern the liability/re~onsibility of the co-executors if they hczd not taken such efforts?? Anc~ the ,funds were paid either to Laurie Stockdale or James or David Stockdale, and the~z dissapated or not used as .Tames and David wanted (or even if it was so used)?? Based on the foregoing, counsel and the co-executors ultimately prevailed in causing the delivery of all such insurance proceeds and interest thereon, and employee benefits from Roche (totaling $446,000), to the Estate for administration in accordance with the Will for the benefit of David and James, thereby creating a fund that can materially assist with their financial lives, as provided in the Will, and as intended by Wendell Stockdale, Jr. C:ADocumcnts and Settings\SJD\Local Settings\Temporary Internet Files\OLKAFC\MEM02 TO GO WITH ADDIT.docLast panted 2/25/201 1 9:30:00 AM If counsel for David and James had such simple and easy and clear solutions to these issues, as she now states, rather than keeping same to herself, she could have provided them to estate counsel for David and James, instead of remaining silent and allowing the administration and collection of assets to proceed. 0 In conclusion, we believe that the fees so charged and paid were reasonable, earned, based on a written agreement with the client (the co-executors) approved and paid by the client, for services that were provided. Documentation of such charges by contemporaneously created time slips-despite the sometimes cryptic entries thereon-accompanied the Statements (divided between estate administration services of $20,000, and successful efforts to collect almost half a million dollars of additional benefits to the Estate, $30,000. The taxable assets for Pennsylvania Inheritance tax purposes were $349,327..94, and the additional life insurance and employee benefits collected to enhance the estate were an additional $446,233.05., or a total gross value of the estate of almost $800,000. In addition, as requested by counsel for David and James Stockdale and Mid Penn Bank, there is provided and submitted a further explanation of the timeslip entries, after a review and analysis of the files of the Estate. In addition, staff paralegal services were used for collection and documentation and assembly of a multitude of years old uncashed checks, and worthless securities. In conclusion, as the courts have said, these fees are fair and reasonable and earned, and should not be challenged. "What is a fair and reasonable fee is sometimes a delicate, and at times a difficult question. The facts and factors to be taken into consideration in determining the fee or compensation payable to an attorney include: the amount of work performed; the character of the services rendered; the difficulty of the problems involved; the importance of the litigation; the amount of money or value of the property in question; the degree of responsibility incurred; whether the fund involved was "created" by the attorney; the professional skill and standing of the attorney and his profession; the results he was able to obtain; the ability of the client to pay a reasonable fee for services rendered: and, very importantly, the amount of money or the value of the property in question." Larocca Estate, 431 PA 542, 246 A. 2d 337 (1968). See also Preston Estate, 385 Pa. Super. 48, 560 A.2d 160 (1989). C:~Documents and Settings\SJD\Local Settings\Temporary Internet Files\OLKAFC\MEM02 TO GO WI'T'H ADDIT.docLasr printed 2/25/201 1 9:30.00 AM EXHIBIT J S NAVE LY TAX S E.RV1 C E S 132 East Locust Street Mechanicsburg PA 17055-3840 717-790-0420 sts0415 , live.com )une 10, 2011 Robert C. Spitzer, Esq. 508 North 2"d Street PO Box 845 _ Harrisburg PA 17108-0845 RE: Laurie Stockdale and the Estate of Wendell Stockdale, )r. Greetings Atty. Spitzer: I am writing to you in regards to the 2010 Federal Income Tax Filing for Laurie Stockdale. I prepared Laurie's 2010 US Individual Income Tax Return including the $158,351.84•~of pension benefits she received as a result of the death of Wendell Stockdale, )r. as well as preparing a 2010.05 Individual Income Tax Return not including the above described pension benefits. The difference in tax was $35,686.06 however Roche withheld $62,554.00; and now the Estate is due a $26,868.00 tax refund for the overpayment of tax. Should require any additional information please do not hesitate to contact me at the number or email address listed above. I am Matthew E Hamlin From: Matthew E Hamlin Sent: Tuesday, July 12, 2011 5:43 PM To: 'Steve Dzuranin' Cc: Robert Spitzer Subject: Re: Estate of Wendell B. Stockdale, Jr. Attachments: Letter to Dzuranin with 1099-R.pdf Steve -see my attached letter in response to your request that I obtain a copy of Laurie Stockdale's federal income tax return. She doesn't feel it's necessary to provide you with a copy of her return, but a redacted copy of the subject Form 1099-R is provided. Matthew E. Hamlin, Esq. Persun & Heim, P.C. 1700 Bent Creek Blvd., Suite #160 P.O. Box 659 Mechanicsburg, PA ] 7055-0659 Tel. (717) 620-2635 Fax (717) 620-2442 E-mail: mehamlin(a,persunheim.com Website: www.persunheim.com The information contained in this e-mail is intended only for the personal and confidential use of the recipient(s) named above. This message may be an attorney-client communication and as such is privileged and confidential. If the reader of this message is not the intended recipient or an agent responsible for delivering it to the intended recipient, you are hereby notified that you Dave received this document in error and that any review, dissemination, distribution, or copying of this message is strictly prohibited. If you have received this communication in error, please notify us immediately by e-mail and delete the original message. PURSUANT TO FEDERAL REGULATIONS IMPOSED ON PRACTITIONERS WHO RENDER TAX ADVICE (CIRCULAR "230"), WE ARE REQUIRED TO ADVISE YOU THAT ANY TAX ADVICE CONTAINED HERE IS NOT INTENDED OR WRITTEN TO BE USED FOR THE PURPOSE OF AVOIDING TAX PENALTIES THAT MAY BE IMPOSED BY THE INTERNAL REVENUE SERVICE. IF THIS ADVICE IS OR IS INTENDED TO BE USED OR REFERRED TO IN PROMOTING, MARKETING OR RECOMMENDING A PARTNERSHIP OR OTHER ENTITY, INVESTMENT PLAN OR ARRANGEMENT, THE REGULATIONS UNDER CIRCULAR 230 REQUIRE THAT WE ADVISE YOU AS FOLLOWS: (1) THIS WRITING IS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED, FOR THE PURPOSE OF AVOIDING TAX PENALTIES THAT MAY BE IMPOSED ON A TAXPAYER; (2) THE ADVICE WAS WRITTEN TO SUPPORT THE PROMOTION OR MARKETING OF THE TRANSACTION(S) OR MATTER(S) ADDRESSED BY THE WRITTEN ADVICE; AND (3) THE TAXPAYER SHOULD SEEK ADVICE BASED ON THE TAXPAYER'S PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR. LLOYD R. PERSUN GARI' J. HEIM MATTHEW G. HAMLIN* V1CKY ANN TRIMMER** JENNIFER DENCHAK WETZEL *ALSO NEW YORK I3AR ** ALSO A CPA Persun & Heim, P.C. Attorneys at Law 1700 Bent Creek Boulevard SUite 160 Mechanicsburg, PA 17050 Please reply to: PO Boz 659 Mechanicsburg, PA ]7055-0659 HTTP://W W W.PERSUNHEIM.COM July 12, 2011 VIA E-MAIL ONLY Stephen J. Dzuranin, Esquire Wix, Wenger & Weidner 508 North Second Street P.O. Box 845 Harrisburg, PA 17108-0845 Re: Estate of Wendell B. Stockdale, Jr. Our File No. 1.0269-6 Dear Steve: IRS NO. 26-3786257 (717) 620-2440 FAX: (717) 620-2442 mehamlin(u)persunheim.com Recently, you requested that I obtain a copy of Laurie J. Stockdale's federal income tax return for 2010 arising out of your concern that both her and the estate declared the benefit of withholding from the decedent's lump sum pension/retirement benefits from Roche Pharmaceuticals. First, please be advised that I do not represent Laurie J. Stockdale. However, I was able to confirm with both that for the pension/retirement benefits, Fidelity Investments issued a Form 1099-R reflecting federal tax withheld of $62,554.02. Attached you will find a copy of that redacted Form 1099-R from which Ms. Stockdale's SSN has been removed. According to both Ms. Stockdale and her tax preparer, the foregoing federal income tax withheld was declared on her 2010 federal income tax return since the pension/retirement benefits were declared under her SSN. Since a Form 1099-R was not issued to the decedent or the estate, the estate should not have declared the benefit of the federal tax withholding on the fiduciary income tax return. Therefore, the estate should immediately proceed to file an amended 2010 fiduciary income tax return and pay whatever additional tax is due with the co-executors paying the interest and penalties that become due and owing from improperly claiming the benefit of the withholding. July 1z, zol 1 Page 2 If you have any questions regarding the foregoing, please do not hesitate to contact me. Sincerely, ~~ Matthew E. Hamlin MEH/ajh Enclosure cc: Daniel J. Madio, II, Vice President, Trust and Wealth Management Director (via e-mail) Laurie J. Stockdale (via first-class mail) Catherine A. Snavely-Roemer (via first-class mail) (All w/ enclosure) 23116v1 , p ~ ~, ~ n 'PAYER'S Fodera! klenliiwa9on nuntbe; f REL'1,-., _..-. `J went2rGVron number U4-05681 D7 I*~}x PAYERS rramt, weet addres, city, atalc, and 7JP Dods FIDELITY INVESTMENTS INSTITUTIONAL OPERATIORS CD. II2 DEVONSHIRE STREET Y.W1C EUSTON, MA D21D9 d952B HDFFMANN-.LAROCHE INC RECIPIENT'S name. queer eddrees (Ytdtdirlp api."no-), ant, sralo, andZP eodc ENVA2335984 LAURIE J STOCKDALE 2222 6LEIM COURT ENOLA, PA 1~Q25-1494 Atzwm number Isee inewdnrte) -tt yesr d deBip. Ran 20110LD80721D0632506 Fam 10B9-R tn- (~~ / L ~ 1i ~ ~ ' , lielllbuGona From f Cyroe9dtartbrrlion -..... OMbNo. rsa6-ottc~ penslons,Annuluus, £ 158 , 351 . Bti /n~ !~ ~ 2 flellremenl or . U CJ ProIIL5harlnp Plana, {2e 7eraMe emouni IRAs, Insurance 5125 r 1 D6 O4 Farn loev-Fi COnIre01o,A10. 26 TaaWo antoutn ^ Tanl [~~ Copy D nd determlrted drstrbutlon Report this Income 3GeptteJpeln(trrJuaedJnboz2e) a Federollnaomelexwllhheld vnyourlederallaX' •£ 0 , O D -G 62 , 554.0 2 -alum. II Ihls loan shows federal fncome 6Errtployee,oonlrLldeeiyFwd~ BNa~urwea4andoprxrouation laY•wilhheldinbox cmtinorutetxertcepremlume .In~rtnpbyelcaeeuritx :Q,.eliech Ihle aopy •~r 33 , 24 $ , 8 D 9 0 . 0 0 to your return. 7 Octdouton oode(c) Ir3AISE:P/ `B OUwr 3: Thie tnlormellon le SIMPLE I oetnplurmehedlo •4 $ 0 . O D the Internal 0e YoUrpertxnlepe d en Tory orrtptoroo oomriorAitmn •Neronuo Fwrvlco. kYel dlelrbullon % £ t O Slele IsY.withheN 11 Stare,FarolA elelo rtu. 12 Slele diewwon ~o,oD PA ~ 13 Local lax wlltheW 1A Name d focelny S 6 LacaV dblibullen £ S t]eaartment d Ina Treasury - imemal lic,enue Server _. --- - -- ~-~~II~Iw1~~~1~~~I~li91d~~Y1~~~61~11~ CORRECTED (II chedce0 DPalribullons From PAYERSFedoralidonlinoationnumber RECIPIENP3Menttlicalnrtntuttoer 1Caroc:dwtrornbn OMBhio. 151:.-Cfle Pehsiona,AnnUlllas, D4 -.656 e l 07 *•~** £ 158 , 351 .84 -t-i n 2Q Hotiromonl or 1.1i ~ Prot11-Snnrlnp Plans, PAYERS name; sweet address, cilY, p~.~ ~P Cade 2e TatmkYe arnaml IRAs, fnsurance FIDELITY INVESTMENTS 8125 , 1 U8 . 04 Form tvvo-a Conlmcle, elc. INSTi?ll7I0NAL OPERATIONS GD. 82 .Dl=YONSH.IRE .STREET ~KW1C 2LTaubbanroum ^ 7ae1 EDSTDN , 'MA 021D 9 nadererrrtined dstromion Copy C 8 052E S Capital pain trrduoed In LoY~ 4 fleoeni Income ituc withhold •rOr'~teClpl9nl•e HDFFMANN-.1.AROCHE .INC so , DD 842, 554 , 02 Records hie Inlormellat is balnp flECIpIcKT'S nanro, easel addreaa (etdtderp etx. na}, sl1S'. Slew; and Zip aAO 6 Employed conubtatrci9 Ran 6 Not unr-elizad •appreclellon fumlahod to the Inleinel oortlrb a Inewertee premiums "In"etr}obyere r-ennpia- Revenue 5ervloe. "S33 , 243 ."80 -~0 , 0 0 LAURIE ..) STOCKDAL"E 7Di:trloulatoodele) uaarsEPi a Other 2222 GLEI'M -COURT su1P>_E ENOLA, PA 17.D25 -.1494 -4 £ 0 , D O 9a Yourpotcenlepe d Qb 7ae1 erttpbyee oonu~tutbns to~ildtldoubn % $ 10 &191e lets teilhhe{d 11 SrererFayels t..-•- na 12 Slate druinwor, CD. DO PA $ Accotrnl number lees beln+dbne) tat yea, W deelp_ Rout eonYlu. Sa l.oocl raa w+thltok! 14 Namo of bcaNly is Local dmubrebn - 2D11D1D80721DD632506 ~ $ Form iD99-R keep la your records) Uenenment a' Treas ury - intemel Rerenua Service PAYER'S Federal idantiltcaKon number I RECIPIENT'S NtxtUTlcellort ntwnber 04-6568107 *}**• PAYERS name, Guool addrow, dry', Clare, avid ZIP code FIDELITY ZNVESTMi:NTS INSTITUTIONAL OPERATIONS CD. 62 DEVONSHIRE STREET KW1C BOSTON, MA 021D9 89528 HDFFMANN-LAROCHE INC RECIPIENT'S ramp, aueel addre:a (tnctldvrp ap. rro.), city, stela, and ZIP coda LAURIE -I STDCY.DALF 2222 6LEIM COURT ENOLA, PA 17025-1494 6 En~otoyeo oonui:>/dos'tg Rdh t Nol unrea47ad N,preclWbn conulb a Ineurartw premlume In errtploye/e eeeumbc " £33,243.8D rO.DO 7 DaUYrnion wde(c) IRA/SEP/ o Odat SIMPLE 4 CU, DO ea Yaur pe¢enlape d e6 7rNar empicryoe cu+Yr~re'wns local dctnbvlion % $ Dielribulions From Pensions, Annufllos, Rellremenl or Pro/ll-Sharing Plana, IRAs, ineuranoe Conl-ecls, 010, Dopy 2 Fllu this Dopy wish your nlalu, city, or local inoome lax return, when required. 10 Slate tax r,oNrefd 11 Stare/Payels stare na. t2 Slate dL-v4wlbn ~D,DO PA 8 Account number (ese 1nelNdlone) tat year d dead. Roth mnrrm. t3 Loco) lax wrdrheld 54 Nano o(locaGy 16 t.owl dctrtb.,tian 2D 110108D721o06325D6 $ £ FIXm 1099-R (bPar,mern d 7rwswy - Imernal gevonue Serv,ce t Cjroee dielrYwtlor~ I OM8 No. 16d5~D t t9 £158,351.84 2D~Q 2e 7ettebk+amoum "~ 125 , 108.04 Fam toev-R 2b Taz~lo amount ^ Taal rid delamined dlau-sulbn 3 Gapird pan (included In box 2ql A Federal Inrnm• lax wllhheld £0.00 662,554.02 WIX, WENGER & WEIDNER R,c.HAao H wlx A PROFESSIONAL CORPORATION THOrwAS L wENGER S T EVEN C WILDS ATTORNEYS AT LAW DEAN A WEIDNEF. (HERE: F, L SHADE VVIY.' ROBERT C. SPITZER DAVID F. ^vEl-Z 508 NORTH SECOND STREET Ot Counsel STEPHEN J. DZURHNIN POST OFFICE BOX 845 JEFFREY G. CLARK PENNSYLVANIA 17108-0845 HARRISBURG PETER G. HowLAND , Suburban Office: 4705 DUKE STREET HARRISBURG, PA 17109-304. 'Also Member Massachusetts Bar 717 234-4182 ( ) (717) 652-8455 FAX (717) 234-4224 www.wwwpalaw.com July 25, 2011 N-atthew E. ~lamlin, Esquire Persun & Heim, P.C. F.O. Box 659 1700 Bent Creek Boulevard, Suite 160 Mechanicsburg, PA 17055-0659 Re: Estate of Wendell B. Stockdale, Jr. Cumberland County Orphans Court File No. 2009-01040 Our File No.: 8278/15425 Dear Matt: I wanted to address the issue of the Estate's and of Ms. Stockdale's 2010 Federal Income Tax returns and to respond to your prior correspondence in which you opined that the Estate had an obligation to file an amended return and that the Co- Executors pay any resulting taxes, penalties and interest. We strongly disagree with that conclusion. Although we have not been privy to Ms. Laurie Stockdale's 2010 Federal Income -i ax Return, based on representations made by you in prior correspondence, it is our understanding that f'vis. Stockdale c;iairned the ~;e~sion benefits horn r.OGIlc as well as the Federal withholding on her 2010 income tax return. You have provided us with a copy of the 1099 form that Roche delivered to Ms. Stockdale and stated that Ms. Stockdale was then obligated to report the income, and was allowed to claim the withholding, on her tax return. Unfortunately, this is not what she should have done. As we had previously tried to explain to both Ms. Stockdale and to you, the Internal Revenue Service has a procedure for handling such situations whereby a person who receives a 1099 for funds to which they were not entitled, and who does not own the funds, does not claim them as income; but forwards the funds to the person entitled to the funds -here the Estate -and provides notice thereof to the IRS and to the recipient. Our office anticipated this situation, which was the reason for our providing Ms. Stockdale with the memorandum from Robert Spitzer explaining that the proceeds are WIX, WENGER & WEIDNER Matthew E. Hamlin, Esquire July 25, 2011 Page 2 taxable to the Estate (and the withholding is a credit on the Estate's income tax return) (the "Spitzer Memo") to attach to her 2010 Federal income tax return, which we suspect she did not. In fact, this was the exact situation we were trying to avoid in our agreement with Ms. Stockdale and our providing her with the Spitzer Memo, a copy of which I believe we forwarded to you previously, for her to attach to her 1040 return for her 2010 income tax. As further support of our clients' position. +n~e enclose a memorandum from Keith Huntzinger, the Estate's accountant (the "Huntzinger Memo") outlining the nominee/middleman return procedure, which confirms that Ms. Stockdale was obligated to file a form 1099 and form 1096 with the IRS as well as provide a form 1099 to the Estate confirming the Estate's receipt of the pension benefits, as well as the ability to claim the withholding on its tax return. This Huntzinger Memo also confirms that attaching the Spitzer Memo to Ms. Stockdale's 2010 income tax return and not claiming the proceeds as income, or the withholding as credit, would be an acceptable procedure to avoid the situation Ms. Stockdale created. Clearly, our office foresaw the problem of both parties claiming the funds and tried to address the issue appropriately with Ms. Stockdale, who apparently did not follow our advice, through which we also offered the services of the Estate's CPA to ensure that this situation did not occur. It is our clients' position that Ms. Stockdale's failure to follow our suggestions nullifies the indemnification provisions of her agreement. It is the Estate's position that Ms. Stockdale, not the Estate, is obligated to file an amended return and to pay any additional taxes, penalty or interest that may be imposed, again, without any indemnification on behalf of the Estate. We intend to notify the IRS of this matter and suggest that they investigate the situation, which will likely result in enforcement action by the IRS against Ms. Stockdale. If that action results in any additional tax, interest or penalties, the Estate will not be held responsible for the same. Finally, I would suggest that this is simply one example of the frustration that the Co-Executors of the Estate, as well as our office, have experienced throughout the administration of the Estate, and is an example of the need for the level of legal fees and work that were incurred in the case. We renew our request for copies of Ms. Stockdale's complete 2010 income tax return so that we can further evaluate the matter to determine if anything on those returns would affect our accountant's opinion. Failure or delay in providing that, however, will not affect or delay our notifying the IRS of the matter. In addition, in the process of our Petition for Adjudication, we will be asking the Court to withhold additional funds from final distribution of the Estate to take into account the potential tax liability the Estate may incur due to Ms. Stockdale's wrong filing. The Estate has done everything reasonably necessary to ensure that Ms. Stockdale had filed her return as WIX, WENGER & WEIDNER Matthew E. Hamlin, Esquire July 25, 2011 Page 3 required (and has properly filed the Estate's 2010 Federal Income Tax Return) and the Co-Executors will not be responsible for any amounts owing as a result of Ms. Stockdale's wrongful filing. By copy of this letter and memorandum to Ms. Stockdale's accountant and to Ms. Stockdale herself, we are notifying them of our position that Ms. Stockdale must file an amended return and comply with the nominee requirements set forth in the attached 1-~:;nt-'i ~~ ~ emr,~. 1 h ~~c r rei~.r~^I ~hnr~l, ±rvn ~~S. Ct Gkdale; f0"wc'.,rde'~ f0 L'~ w, r~ r r!! .Ne . a e~ u a ,,. ,~..t.. , .: ~ ,~ ,, o h„ her accountant, which is represented to be the tax refund based on her claiming the pension benefits and claiming the withholding. Because the Estate has already filed its return claiming both the pension benefits and the withholding credit, it is not entitled to these funds and, in the copy of this letter to Ms. Snavely-Roemer, we are returning the check. If you wish to discuss this matter, kindly contact me. Otherwise, if you can provide any assistance to our obtaining a complete copy of Ms. Stockdale's 2010 Federal Income Tax Return for our further evaluation, we would certainly appreciate that. Sincerely, Wix, Weng'er'& Weidner By: ~ L~ /~ ep en J. Dzuranin ;;~I D/jey Enclosures ,~ cc: Mr. and Mrs. Wendell B. Stockdale, Sr. Robert C. Spitzer, Esquire ~='~ Keith R. Huntzinger, CPA Catherine A. Snavely-Roemer (w/enclosures) Laurie Jo Stockdale (w/enclosures) Memorandum To: Steve. Dzuranin, lsq., Wendell Stockdale From: Keith R. Huntzinger, CPA, CPP, CSI;P, MST llate: 7/20/20ll Ile: Nominee/middleman reporting It is my understanding that Ms. Laurie Stockdale reported the employment benefits income from the former employer of Wendell Stockdale, Jr., as well as the associated Federal withholding tax on her 20 i 0 Federal income tax return. Additionally, per previous conversations with Bob Spitzer, 1 have been informed that Ms. Stockdale forwarded a check to the Estate of Wendell Stockdale, Jr. for the portion of her Federal income tax refund which she believed to be attributable to the estate. I have researched nominee/middleman reporting via the Internal Revenue Service website, and have found the following excerpt from the General Instructions for Information Returns: Nomineelmiddleman returns. Generally, if you receive a Form 1099 for amounts that actually belong to another person, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other owners showing the amounts allocable to each. You must also furnish a Form 109910 each of the other owners. File the new Form 1099 with Form 1096 with the Internal Revenue Service Center for your area. On each new Form 1099, list yourself as the `payef' and the other owner as the "recipient." On Form 1096, list vourself as the "Filer. " A husband or wife is not required to file a nominee return to show amounts owned by the other. The nominee, not the original payer, is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner. Based upon the preceding; Ms. Stockdale should have furnished Form 1099 to the estate. Further. she should have furnished Forms 1099 and 1096 to IRS to inform them of the fact that the income and withholding tax were attributable to the estate. Alternatively, it is my belief that had Ms. Stockdale followed the guidance provided to her, and attached a statement to her 2010 income tax return explaining the situation, her obligations regarding the nominee reporting would have been satisfied. Based upon my knowledge of what has transpired, it is clear that Ms. Stockdale has not complied with the nominee reporting rules. Accordingly, she should issue the appropriate Fonns 1099 and 1096 to the estate and IRS, respectively. Additionally, her 2010 income tax return should be amended to reflect the fact that the aforementioned income and withholding tax have been properly reported on the fiduciary income tax return of the estate. My recommendation to the estate is to contact IRS as soon as possible to proactively rectify the situation. f believe this will facilitate the most expeditious resolution of this matter. If you have any questions or concerns regarding the preceding, please contact me at your earliest convenience. LLOYD R. PERSUN GARI'J. HEIM MATTHEW E. HAMLIN* VICKI' ANN TRIMMER*" .IENN1rGR DENCHAK WETZEL "ALSO NGN' YORK 13AR ** ALSO A CPA Persun & Heim, P.C. Attorneys at Law 1700 Bent Creek Boulevard Suite 160 Mechanicsburg, PA 17050 Please reply to: PO Box 659 Mechanicsburg, PA 17055-0659 HTTI'://W W W.PERSUNH EIM.COM August 2, 2011 VIA E-MAIL AND FIRST-CLASS MAIL Stephen J. Dzuranin, Esquire Wix, Wenger & Weidner 508 North Second Street P.O. Box 845 Harrisburg, PA 17108-0845 Re: Estate of Wendell B. Stockdale, Jr. Cumberland County Orphan's Court File #: 2009-01040 Our File No. 10269.0006 Dear Steve: IRS NO. 26-3786257 (717) 620-2440 FAJC: (717) 620-2442 mehamlin(~persunheim.com This letter is in response to your letter of July 25, 2011 regarding the issue between the Estate and Ms. Stockdale concerning their 2010 federal income tax returns and handling of the decedent's lump sum pension/retirement benefits from Roche Pharmaceuticals. First, as you are aware, I do not represent Ms. Stockdale. Therefore, your continued requests to me on behalf of the Estate for a copy of her 2010 federal income tax return should be directed to Ms. Stockdale. I confirmed with both Ms. Stockdale and her tax preparer, Catherine A. Snavely-Roemer ("Snavely-Roemer"), that $158,351.84 of pension benefits were received by Ms. Stockdale as a result of the death of Wendell B. Stockdale, Jr. Subsequently, Fidelity Investments transmitted to Ms. Stockdale Form 1099-R under her SSN reflecting the payment and that $62,554.02 in federal income tax was withheld from that distribution. Upon receipt of your letter v~~ith enclosure, both Snavely-Roemer and my tax partner, Vichy A. Trimmer, reviewed this issue and have both concluded that the nominee process outlined in your letter should not have been followed under these facts since Fidelity Investments did not issue either a corrected Form l 099-R to the Estate or there was no court document (presumably court order) referencing the Estate's EIN providing that the Estate was in possession of the funds and would be including it on the fiduciary federal income tax return instead of Ms. Stockdale. August 2, 201 1 Page 2 The following is a summary of Snavely-Roemer's investigative work that has been communicated to me and my tax partner's research. Moreover, my tax partner's conclusion has been peer-reviewed by another well-qualified local estate/tax counsel who concurs in the conclusion that Ms. Stockdale was required to declare both the income and withholding on her federal income tax return and that the Estate should proceed immediately to file an amended fiduciary income return. According to Snavely-Roemer and in discussion with Mr. Yukumoto (ID #100543356) of the IRS, she was advised of the following: 1. Since the Form 1099-R issued by Fidelity Investments on behalf of Roche Pharmaceuticals listed the recipient of the funds to be Ms. Stockdale with her SSN, then Ms. Stockdale is the only person who should be including this information from Fidelity Investments on her personal federal income tax return. This is because when the IRS receives the reporting information from the payer it then cross references the listed identifying number on the forms provided against the expected personal federal income tax filing for the individual and should these funds not be listed on that return the taxpayer will receive a #2000 notice from the IRS as to why it has not been included. Should this occur the only way the individual would be able to avoid any penalties or interest incurred due to not reporting this amount would be by either providing to the IRS a corrected Form 1099-R prepared by Fidelity Investments or a court document referencing the Estate's EIN that stated that the Estate was in possession of these funds and that the Estate would be including is on the Estate fiduciary federal tax return instead. 2. The question regarding whether or not Ms. Stockdale could be a nominee is not appropriate in this scenario based on the fact that she would have needed a legal document provided to her that stated that she was to be a nominee for the Estate in this scenario. However, according to Mr. Yukumoto, even with that documentation she would have still been required to have a court order or corrected Form 1099-R per #1 above. 3. Finally, Mr. Yukumoto was asked which entity should file the amended return and subsequent return of the federal refund and his answer was that in this matter as far as the IRS is concerned it would expect the Estate to submit the amended return and subsequently return the federal refund the Estate received as well as pay any and all interest and penalties accrued. According to my tax partner, the general instructions for Form 1099's contains a reference to the nominee/middleman process described in your letter. However, if you look at the Form 1099-R instructions, it only makes reference to the ] 099 general instructions and does not mention or imply that the process is available for the handling of a Form 1099-R. The Form 1099-INT instructions have more detailed information regarding the use of the nominee process with regard to interest income. Moreover, only two sections of the IRC mention the use of a nominee process to report income: Section 6049 as it relates to interest; and Section 6042 as it relates to dividends. Additionally, the nominee process is mentioned in the CFR ~~ith regards only to interest income, dividend income and partnership income. Therefore, there is no support in either the IRC or the CFR for use of the nominee process in the context of a Form 1099-R. August 2, 2011 Page 2 What is most troublesome is that even assuming that the incorrect procedure outlined in your- letter and the Huntzinger Memo was followed, the Estate did not receive either a corrected l 099-R Form from Fidelity Investments or a ] 099 Form from Ms. Stockdale. Therefore, there was no legitimate basis for the Estate to declare the income/withholding relating to involved pension benefits. As a result, the Estate has been put at risk for IRS action. By reason of the foregoing, I renew the testamentary trustee's demand t11at the Estate immediately prepare and file an amended 2010 fiduciary income tax return in which neither the pension benefits nor withholding are declared. The Estate will have to disgorge the improperly received tax refund and pay all assessed interest and penalties. It is my understanding that amending the Estate's fiduciary income tax return does not require a great amount of work. I anticipate that Ms. Stockdale will authorize Snavely-Roemer to return the $26,868.00 check. This is the most efficient and economical way to address this issue. In order to complete my file, please transmit to me a copy of the 2010 fiduciary tax return and, when filed, a copy of the amended fiduciary income tax return. The testamentary trustee fully expects that you will comply with the request that the Estate. amend the 2010 fiduciary income tax return, promptly return the refund and for the Estate to pay the associated interest and penalties. Sincerely, Matthew E. Hamlin MEH/ajh cc: Daniel J. Madio, II, Vice President, Trust and Wealth Management Director Robert C. Spitzer, Esquire Catherine A. Snavely-Roemer Laurie J. Stockdale (All via e-mail) 23391v1 WIX, WENGER &WEIDNER RICHARD H WIX A PROFESSIONAL CORPORATION THOMAS L WENGER STEVEN C. WILDS ATTORNEYS AT LAW DEAN A. WEIDNER THERESA L. SHADE WIX ' ROBERT C SPITZER DAVID R GETZ 508 NORTH SECOND STREET Of Counsel STEPHEN J. DZURANIN POST OFFICE BOX 845 JEFFREY C. CLARK PENNSYLVANIA 17108-0845 HARRISBURG PETER G. HOWLAND , Suburban Office: 4705 DUKE STREET HARRISBURG, PA 17109-3041 ' Also MemberMassachusetls Bar (717) 234-4182 (717) 652-8455 FAX (717) 234-4224 www.wwwpa law. com August 8, 2011 Matthew E. Hamlin, Esquire Persun & Heim, P.C. P.O. Box 659 1700 Bent Creek Boulevard, Suite 160 Mechanicsburg, PA 17055-0659 Re: Estate of Wendell B. Stockdale, Jr. Cumberland County Orphans Court File No. 2009-01040 Our File No.: 8278/1542..5 Gear Matt: I thank you for your letter of August 2, 2011, and have asked the Estate's accountant to follow-up on the several items that you identify for a response. Also, we have asked several times for Ms. Stockdale to provide us with a complete copy of her tax return and by copy of this letter, renew that request to her. In the meantime, we are even more troubled by your analysis and confirmation by your tax partner and Ms. Snavely-Roemer. If what you and they report is the correct reporting requirement, what do they suggest would be the tax effect of Ms. Stockdale delivering to the Estate the pension benefits in cash? Surely the IRS would not consider that transaction to be anon-taxable event. The agreements between the Estate and Ms. Stockdale required this sum to be paid over to the Estate. Should the parties .consider this to be a gift from Ms. Stockdale? If not, what other tax effect would that transaction have? Under our theory and reporting procedure, since Ms. Stockdale was merely a conduit of the funds to the Estate, there would be no second transaction. Under your theory, there clearly is a second transaction that may have additional taxable implications. We would also advise that Attorney Spitzer has similarly handled such situations in the past where one taxpayer received funds that clearly did not belong to that taxpayer (either bylaw or agreement of the parties) and has successfully reported the situations to the IRS through memoranda attached to each tax return. WIX, WENGER & WEIDNER Matthew E. Hamlin, Esquire August 8, 2011 Page 2 Again, we will be investigating the matter on our own with direct contact to the Internal Revenue Service advising them of the situation. Perhaps this is then best left to a formal decision by the Internal Revenue Service rather than a simple discussion with some clerk who answers the phone in a cold call from a party who may or may not have relayed all of the facts. We will, of course, follow-up with you after we have completed our own ~n~Phr,ndr~nt in\iF?cti~atinn ar.;~ ~nli7ht ~~IV!cE fr{Sr~^ the ~rtterri~i RP~i~r,i IP far\/lra _ ~ •J ' ourselves. Sincerely, Wix, Weryf~er & Weidner By: phen J. Dzuranin SJD/jey j ` cc: Mr. and Mrs. Wendell B. Stockdal ~r. Robert C. Spitzer, Esquire Keith R. Huntzinger, CPA Catherine A. Snavely-Roemer Laurie Jo Stockdale EXHIBIT K IN Tc-C COURT OF COMMON PLr..AS Di I,rHIGH COUNTY, PI~INSYLVANIA ORPHANS' CDlir-'.T DIVISION 1. Legal Fees Reaardin Decedents' Estates Du*-ing the past several years, the work and responsibilities of the lawyer and fiduciary have increased significantly.. At the same time, inflation has caused the . cost of perfor~n9 those services to increase, and yet their compensation has not increased. The fo'lowing schedule is intended as a guideline ~ ' ~~or use in arriving at .fees and commiss_ons for counsel and It is neither a maximum nor mi nimum fee bill , , i duel ari es . . but is the Court's present vi ew of appropriate charges for work done on behalf of the nor-rc~l :.states and Trusts.. For example, a fe°_ of ,59,125 nay De reasonable where the decedent's 515G,000 .estate consisted of~ a home, ~~ some savings, securities, household_ furnishings, automobiles, insurances, and the usual number of bills and administration expenses. ~ However, .that same fee would be excessive where the decedent died in a nursing home and his or her only assets were sane certificates of deposit and a checking account. On the other hang, if the decedent was a businessperson who left more debts than assets, or whose accou-its-receivable needed to be collected in part through litigation, the guideline fee of 89,125 would be inadequate.. - The Court acknowledges 'thhat an alert and knowledgeable indiv1dual can enter into an arrange:~ent with an attorney or fiduciary which will es ~ablish -the fees and commissions to be charged.. Normally, those •pre-death agreements will be honored. however, the Court can not relinquish its duty to judge the reasonableness of fees and commissions and, in some instances, its obli gation to inquire into the circumstances surrounding the execution of such agreements. GUIDELINE LEGRL FEE 7 ~ of first 6.5 -~ of next ~ ;; of next L ~% of nex~ 1.5 . ;~ o f next l ~ of next .5 -~ of next Z ~ _ of non-probate assets in below) LS,GOO 1,750 75,000 ~,b75 150,000 7,500 250,000 10,000 500,000 7.500 l,ooo,ooo o,ooo 1,000,000= 5,000 . assets~* (Exclusive of Living Trusts as defined Preparation of Federal-Estate Tax Return in norrnai estate - 51 , 000 keview of Federal Estate Tax Return in normal esta~e, where fiduciary prepares the draft return - 5500 2. Commissions for Personal Rearesentatives of Decedents' Estates The legal services to be rendered on behalf of Decedents' estates which are to be covered by the above *Over 5,000,000., additional charges on the basis of services rendered, subject to Court approval. **This fee is to be adjusted for compensation to the Personal Representative to the extent that such Executor, Administrator, o*~ Guardian actually marshals and administers non-r~rob2te assets. legal fee guidelines are all of the usual legal services necessary for an estate administration. It does not cover work for which the personal representative is responsible, It does not ~ include extraordinary legal services, suc.~i as will contests, court proceedings, claims collections, or litigation. It does not include costs and expenses, such as photocopies, notary public charges, telephone tolls, title abstract, or filing fees. Extensive corrective work by. legal counsel on Tax Returns or Accounts prepared by a fiduciary is to be charged against (actual, where paid; allowable, where waived) fiduciary commissions. In general,' whe:iever counsel performs services which are normally the Fiduciary's responsibility (such as the decedent's final Income Tax Return and the Fiduciary 2ncome Tax Returns), counsel shall be compensated from the Fiduciary's commission. GUIDELII~IE EXECUTOR'S COMMISSION 6 .~ of first 100,000 6,000 5 . 5 .~ of next 20G , 000. 11, 000 5 ~~ of next 200,000 16,000 G „ of next 200,000 8,000 3 y of next 300,000 9,000 2 ~ of next 500,000 10,000 5 l •~ of next 500,000 7,500 . l ~ of next 1,000,000* 10,000 6 •,~ of income *Over 3,000-,000, additional charges on the basis of services rendered, degree of responsibility assumed, and other relevant factors, will be subject to Court approval. 3. Compensation to Fiduciaries and Counsel regarding Acminis-gyration of Living Trusts, * post-death o= Grantor BLt for the duty to formal_~y probate and tc • marsha'_ assets, the administration of. Living Trusts, post-death of Grantors, is functionally equivalent to the administration of probate estates. Accordingly, the "reasonableness" of compe_*isation to Trustees and 3ega1 • counsel should be evaluated by use of the probate estate counsel and personal representative guidelines, reduced by the value of t:Ze probate/marshaling function nom present in adrnini5tration or Livinc Trus Wis. It is sugges sec that an aourooriat.e reduction is two percent (Z::) from each bracket of the fee scinedule szt fort_~ in Paragraph I .up to, but not • 'inc.uding, the SSDO, U00 hracket. The balance of tie Guide? ~ ne Legal z'o° Schedule may apply for amoun ~s of 5500,000 or over. ~ • L. ration to Trustees,** Guardians, and their Lec Counsel Services by counsel to a Trustee or to a Guardian (of an incapacitated person or of a minor) should normally *For purposes of these guidelines, a Living Trust is an Inter Vivos Trust funded with all or substantially all of Grantor's assets and •which, upon Grantor's death, directs disposition of t,Liat property. • *~This section does not apply to the administration• of •' Living Trusts after the•Grantor's death. That situation is governed by Section 3, supra. be performed on a time basis. The Court must always evaluate the reasonableness of fees, and will consider the factors outlined in the Rules of Professional Conduct (Rule - 1.5). • Compensation to Trustees and Guardians has, in the past, been evaluated based on the premise that the average _ Trust continued over a period of approximately twenty years. In order not to decrease the principal prematurely, the five percent. .commission on principal was generally s.et at one-quarter of one percent per year calculated or. the mar~:et value at the end of each year. This procedure also rewarded good performance. The Court has observed a changing pattern of Trusts, one of which is that the term of the in '~.he us e Trusts are beco.:iing shorter_ gurthcrmore, Trustees are being held to a higher standard, and are required to expend complex issues. Consequently, the more time on more following schedule will be used as a guide in determining the reasonableness of commissions charged by Trustees, or by Guardians of Estates of Incapa~itat.ed Persons or :4inors: 1, On Principal. One-third of one percent per year, payable on the market value at the end of each year of managernent_ In the event that a Trust or Guardianship terminates prior to a fee on principal of five percent (SX) having been earned, a closing fee up to that percentage may be appropriate. 2. On Income, Six percent per year, payable quarterly . or in other installments convenient to the Trustee or Guardian. 5. Attorney also Fiduciary Where the same law office is both the fiduciary and counsel-, the Court will expect some moderation in the - fees. • Again, the above cornmissiors are on'.y a guide. to be used in handling a normal Trust or Guardianship, where discretion is utilized regarding. both investments and distribution. The circumstances of each matter must ultimately dictate an appropriate fee. There will be occasions where the above guidelines ai•e too high, and at other times it will be too low. . Robert K. -Young, " Administrative udae, Grphans' Court Division Date : May (~ 1996