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MclltES, WAI.I.^~A'"
100 PINl B
,. U .01 IIfl6
I'A 17100
ItAnnl'_.Duno
FRANCIS B. HAAS, JR., ESQUIRE,' IN THE COURT OF COMMON PLEAS
tla McNEES, WALLACE & NURICK, . CUMBERLAND COUNTY, PENNSYLVANIA
A PENNSYLVANIA PARTNERSHIP, ·
plaintiff . CIVIL ACTION - LAW
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: NO. 1/1' .151J- (\-\,I-~C.j~
I
.
v.
GEMINI BROADCASTING
CORPORATION,
Defendant
NOTIce TO DeFeND
;h~ ~~t~:'i;~':~ft~U!: !~:C!~!~l~~ ~~~.:~.~u~o~:f.~~~;::~~~
~:~~:~ t~~~ ~i!~ ;i~! !t~;~ ~ ~mp1aint and N~t~~e ~r:
,; - :, ~ - ~ _ - : - ~ ~I~h ~~~'fr.~~ ~~~, c~m~.:: ~~ :mf
~o~~ t~ i~e ~l~;m: ~e~ 0 a n u You are warned that
3~d~~~n~a;~vt~ea~n~~~edh:a~~~:t~~~uP~~C~~~ ~~~~ou~ ~~~u~n~u~ er
notice for any money ~lai~=d i~ th; c~mplaint or f~~ ~~e ~~~;~
g~a~~ ~~ ~~1ief reQuested by the Plaintiff. You may lose money
o 0 r or othsr rights important to you.
DO NO~O~A~~O~L~A~~~~ ~~I~A~~~iRA~~o~gU~N~~W~~RT~To~N~~. I~ YOUHE
OFFICE SET FORTH BELOW TO FIND OUT WIIER~ YOU CAN GE'r L~~~~ ~:L~.
LAWYER REFERRAL SERVICE
CUMBERLAND COUNTY COURTHOUSE
4'1'H FLOOR
CARLISLE, PA 17013
(717) 240-6200
McNEES, WALLACE & NURICK
(
re . avis
Attorney 1.0. No. 62668
100 Pine street
P.O. flOK 1166
Harri.burg, fA 17108-1166
(717) 232-8000
FRANCIS B. HAAS, JR., ESQUIRE,I
tla MoNEES, WALLACE' NURICK, I
A PENNSYLVANIA PARTNERSHIP, I
Plaintiff I
I
I
I
I
I
I
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
v.
GEMINI BROADCASTING
CORPORATION,
NO.
Defendant
COMPLAINT
COUNT I
1. Plaintiff, Franois B. Haas, Jr., Esquire, et al., tla
MoNees, Wallaoe , Nuriok, is a pennsylvania Partnership, whioh
maintains its prinoipal place of business at 100 pine Street,
Harrisburg, Dauphin County, Pennsylvania 17108. A current list
of the partners is attached hereto and marked as Exhibit "A".
2. Defendant, Gemini Broadcasting corporation, is II
Pennsylvania corporation located at 360 Poplar churoh Road, Camp
Hill, cumberland county, Pennsylvania 17011.
3. Plaintiff, at the special instance and request of
Defendant, provided legal services and advanced costs to
Defendant (the "Services"). The services were performed on
behalf of Defendant, for the prices, pursuant the terms, and on
or about the times set forth in Plaintiff's business reoords (the
"Reoords"). A true and correct oopy of the Records are attached
hereto and marked as Exhibit "B".
6. The total amount due and owing, taking into acoount all
payments made, is Thirteen Thousand Fifty-Two Dollars and Ninety-
Five Cents ($13,052.95).
6. Plaintiff hae demanded that Defendant pay the amount
due but Defendant has failed and refused to do so.
WHEREFORE, Plaintiff demande judgment against Defendant in
the sum of Thirteen Thousand Fifty-Two Dollars and Ninety-Five
Cents ($13,052.95), which sum requires reference to compulsory
arbitration.
COUNT II
In the alternative, in the event this Honorable Court should
find that no express contract existed between the parties, whioh
is denied, Plaintiff pleads the following alternative count in
quantum meruit.
7. Paragraphs 1 through 6 are incorporated herein by
reference.
B. Having requested Plaintiff ox provide said services and
Plaintiff having done so to the benefit of Defendant, Defendant
became liable to Plaintiff for the just and reasonable charges
for said Services.
9. Defendant has been unjustly enriched by accepting said
Services without paying Plaintiff reasonable compensation
therefors.
BXBIIIT "A"
j {
.
McNEES, WALLACE & NURICK
P. O. Box 1166
Harrisburg PA 17108-1166
Telephone (717) 232-8000
EIN 23-1256003
GEMINI BROADCASTING CORP
ATTN MR BRIAN E DANZIS PRES
POBOX 3433
HARRISBURG' PA 17105
JULY 23 1991
11976-3
Our File #
-------------------------------------------------------------------------------
Balance Forwards
$2,006.31
Statement #
138686
For Professional services Rendered;
Business Transactions
FEB 25 91
Telephone conference/s with B. Danzis
res potential problem w/new employee
from WNNK, review corresp. and
restrictive covenant, prep. draft
correspondence
Reviewing & revising correspondence,
tele. conf. w/H. White
Telephone conference/s re borrower's
defaults
Analysis of approaches to
recapitalization of corporation
conference/s with Brossman re
recapitalization, preparing forma re
same
FEB 26 91
MAR 06 91
MAR 08 91
MAR 08 91
MAR 11 91
MAR 12 91
MAR 13 91
MAR 15 91
MAR 18 91
MAR 26 91
MAR 27 91
MAR 27 91
Telephone conference/s with Brian Danzis
and Mike Donoghue, review of
Intercreditor Agreement
Telephone conference/s re meeting wi
corestates Enterprise Fund
Attending meeting/s wi coreStates
Enterprise Fund, review of rntercreditor
Agreement, teleconf wi Elizabeth Elmore
Telephone conference/s with Brian Danzis
re repayment of McKenna debt
Telephone conference/e with Jim McKenna
Telephone conference/s with C.
Goldstein, Esq., B. Danzis res Heidi
White employment contract
Reviewing second class of stock issue,
teleconf. wi Hillard
conferenco/s with Brossman re
alternative debt/equity approaches
continued
McNEES, WALLACE & NURICK
P. O. Box 1166
lIarrisburg PA 17108-1166
Telephone (717) 232-8000
EIN 23-1256003
our File .
JULY 23 1991
11976-3
GEMINI BROADCASTING CORP
ATTN HR BRIAN E DANZIS PRES
POBOX 3433
HARRISBURG' PA 17105
-------------------------------------------------------------------------------
MAR 28 91
MAR 28 91
APR 01 91
APR 01 91
APR 02 91
APR 02 91
APR 02 91
AFR 03 91
APR 04 91
APR 04 91
APR 04 91
APR 01S 91
Telephone conference/s with Steve
Scheuchenzuber and chris Hillard re
recapitalization, interoffice conf wi
Mike Jarmanl review of acquisition loan
documentation
Research re imputed interest issuesl
phone conf. wi scheuchenzuber re same
Review of loan documentation and
telephone conferencee re cashflow
projectione
Reeearch re imputed interest issuesl
teleconf. w/Scheuchenzuberl Danzisl
Brossman & attending meeting w/Danzis &
Hillard
Telephone conference/s with Brian
Danzis, Mike Donoghue an Elizabeth
Elmore
Telephone conference/s with B. Danzis
rei WNNK 104 enforoement at restriotive
covenant
Telephone conference/s with
Scheuchenzuberl Jarman re tax research
issues & conf. wi Sheehan re same.
Telephone conferenoe/s re meeting w/Jim
McKenna
Telephone conference/s with C.
Goldsteinl B. Danzis, review pleadings
in connection will. White easel cont.
w/Frank Miles
Receipt & review of complaint I Motion
for Preliminary Injunction and Motion
for Expedited niscovery rs Heidi White
matterl conference with Bhapriol
teleconference with clientl research re
enforceability of reetrictive covenant
Intraoffice conference/s w/Miles & Rudd
re estoppel argument for failure to
enforce restrictive covenant
Revisw of oaahflow projeotions and
teleconf w/Mike Donoghue re loan
restructuring proposal
continued
McNEES, WALLACE & NURICK
P. O. Box 1.166
Harrisburg PA 17108-1166
Telephone (717) 232-8000
EIN 23-1256003
Our File *
JULY 23 1991
11976-3
GEMINI BROADCASTING CORP
ATTN MR BRIAN E DANZIS PRES
POBOX 3433
HARRISBURG . PA 17105
-------------------------------------------------------------------------------
APR 05 91
APR 08 91
APR 08 91
APR 09 91
APR 09 91
APR 10 91
APR 10 91
APR 10 91
APR 11 91
APR ' 11 91
APR 11 91
APR 12 91
APR12 91
APR 12 91
APR 12 91
Conference/s re restrictive covenant
research and teleconference I advice to
olient
Preparing for meeting w/Jim MoKenna,
Elizabeth Elmore and Mike Donoghue re
restruoturing of acquisition loans
Settlement negotiations with defense
oounsel and teleconference with client
Preparing for and travel to Bethesda for
meeting w/Jim McKenna, Elizabeth Elmore
and Mike Donoghue
Review of proposal from WWNK and prepare
letter to their counsell teleconference
with client
Telephone conference/s with Brian Danzis
re McKenna meeting
Research re possibility of "Gift" in a
business oontext
Researoh re applicability or IRC
sections 483, 1274 and 7872 to loan
between S corporation shareholders
Research re rules concerning injunction
and discovery iesuel settlement
negotiations with Plaintiff's counsel
and teleconferences with client re same
Telephone conference/s with Danzis re
time frame for documentation I conf with
Jarmanl Sheehan re imputed interest
issues
Research re applicability of IRC
sections 483, 1274, and 7872 to loan
between S corporation shareholders
Review of required document changes to
accommodate additional equity infusion
Telephone conference/s with WNNK counsel
and client re status of negotiations
conference/s with Sheehan re researoh
conolusions
Research re applioability of IRC
Sections 483, 1274 and 7872 to loan
between s corporate shareholders I second
class of stock restriotions on
continued
McNEES, WALLACE & NURICK
P. o. lIox 1166
Harrisburg PA 17100-1166
Telephone (717) 232-8000
EIN 23-1256003
our rile .
JULY 23 1991
11976-3
GEMINI BROADCASTING CORP
ATTN MR BRIAN E DANZIS PRES
POBOX 3433
HARRISBURG. PA 17105
-------------------------------------------------------------------------------
APR 12 91
APR 15 91
APR 15 91
APR 17 91
APR 18 91
APR 18 91
APR 18 91
APR 19 91
APR 19 91
APR 22 91
APR 24 91
APR 24 91
APR 24 91
APR 24 91
qualification as an S corporation (debt
and warrants)
Memorandum re (i) imputation of a market
rate of interest to the proposed loan,
(ii), the posibility that the proposed
loan might create a second class of
stock and (iii) whether the debt
instruments delivered by Gemini
Broadcasting, secured by warrents, are a
second class of stock
preparing proposed amendments to Pledge
Agreements
Review of tax issues
Client telephone conference/e re
settlement and advice re same
Telephone conference/s with Elizabeth
Elmore and Mike Donoghue re additional
funding and restructuring of current
loan
preparing draft/s of settlement
agreement and fax to client
Reviewing Sheehan memo, research re
deductibility of imputed interest
payments
Review of audit inquiry responses
Telephone conference/s with White, fax
letter to Plaintiff's counsel re
conference with Judge, etc.
Telephone conference/s with Danzis,
letter to Plaintiff's counsel with draft
settlement agreement
preparing docurnent/s re additional
capital contribution
Preparing letter/s to Attorney Artz reI
settlement and bps to client forwarding
Agreement, etc.
Reviewing Sheehan memo, research re
investment interest
Discussions with Mike Jarman regarding
characterization of the proposed loan as
an indirect loan attributable to the
relationship of the lender and borrower
continued
McNEES, WALLACE & NURICK
P. o. BoX 1166
Harrisburg FA 17108-1166
Telephone (717) 232-8000
EIN 23-1256003
Our File .
JULY 23 1991
11976-3
GEMINI BROADCASTING CORP
ATTN MR BRIAN E DANZIS PRES
POBOX 3433
HARRISBURG' PA 17105
-------------------------------------------------------------------------------
APR 25 91
APR 25 91
APR 26 91
APR 29 91
APR 29 91
APR 30 91
APR 30 91
HAY 01 91
MAY 02 91
HAY 08 91
HAY 13 91
HAY 14 91
HAY 15 91
HAY 21 91
HAY 21 91
HAY 22 91
HAY 22 91
MAY 23 91
and the law's restructuring of same
Analysis of recapitalization plan
Revising file memo/ teleconference with
Scheuchenzuber re basis issue, research
re "at risk" rules/ teleconference with
Danzis re McKenna reaction
Drafting letter to Scheuchenzuber re tax
treatment of capitalization
Review of tax memorandum and comments re
same
Analysis of audit inquiry respcnses/
review of Keymarket Communications file
and preparing audit response letter
Review of Jim McKenna correspondence
Telephone conference/s re concluding
settlement
Preparing correspondence to Plaintiff's
counsel re settlement documents
Telephone conference/o with
Scheuchenzuber/ research re treatment of
shareholder debt/ drafting letter to
Scheuchenzuber
Receipt & review of settlement document
and praecipe/ prepare letter to
Plaintiff's counsel and client re same
Telephone conference/s with client,
Jarman, Scheuchenzuber re option
approach
Preparing draft/s of Pledge Agreement/
review of Intercreditor Agreement
Conference/s with Jarman, Brossman re
option procedure
Review of Recapitalization Plan w/Mike
Jarman/ review of Pledge Agreements
Drafting Board resolutions/ amendments
to articles/ shareholder, telecon
w/Bcheuchenzuber
Review of Stock Pledge Agreements
Revising transaction docnmonts/
teleconf. with Scheuchenzuber
Reviewing & revising transaction
documents and transmitting to olients
continued
McNEES, WALLACE' NURICK
P. O. Bo)C 1166
Harrisburg 'PA 17108-1166
Telephone (717) 232-8000
EIN 23-1256003
GEMINI BROADCASTING CORP
ATTN MR BRIAN E DANZIS PRES
POBOX 3433
HARRISBURG' PA 17105
JULY 23 1991
11976-3
our rile H
-------------------------------------------------------------------------------
HAY 23 91 Requestiny steck certificates re Gemini
Broadcast ng corporation
HAY 28 91 Telephone conference/s with Hillard re
procedure for execution
HAY 29 91 Telephone conference/s with Hillard re
Katzman comments
HAY 30 91 Revising stock certificates
HAY 30 91 preparinf stock certificates re Gemini
Broadcas ing
HAY Jl 91 Intraoffice ccnference/s with Mike
Jarman
HAY Jl 91 conference/s with Hillardl Danzis re
execution of corporate documents
HAY 31 91 Draftini letter to McKenna re corporate
activit es
HAY Jl 91 Filing Amendment re Gemini Broadcasting
w/PA Dept of state
JUNE 30 91 Revising corporate Minutes to reflect
1990/91 financing transactions
Total Feee
12,510.00
Disbursements
40.00
12.00
51.32
25.87
69.50
144.09
3.17
7.00
HAY 21 91
HAY Jl 91
certified copy-Articles of Amendment
Filing Fee-ArtiCles of Amendment
corporate outfit
Telephone/Telegraph
Travel Expenee
FAX
postage
Local courier service
Total Disbursements
352.95
-------
Total This Statement
Total Due
$12,862.95
-------
$14,869.26
0059
McNEES, WALLACE' NURICK
P. O. Box 1166
Harrisburg PA 17108-1166
Telephone (717) 232-8000
EIN 23-1256003
. .
HR BRIAN E DANZIS
GEMINI BROADCASTING CORP
POBOX 3433
HARRISBURG PA 17105
our File .
AUGUST 20 1991
11976-3
-------------------------------------------------------------------------------
$12,862.98
Balance Forward I
Statement .
140886
For Professional servioes Renderedl
Business Transaotions
JULY 01 91
JULY 09 91
Revising and updating Minute Book
confefenoe/s with Jarman, Danzia r.
Minute Book
Total Fees
Total Thia statement
Total Due
190.00
-------
$190.00
-------
$13,052.98
0059