WFO Corporation, et al. - Page 5

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          where he requested a continuance until the Court’s March 10,                
          2003, trial session in Columbus, Ohio.  After extended discussion           
          in two hearings of the merits of a continuance, which respondent            
          opposed, and the establishment of a timetable under which                   
          petitioners would supply information to respondent’s trial                  
          counsel, a continuance was granted.                                         
               On March 7, 2003, Mr. Wolfe and Joel S. Brant, Mr.                     
          McCarthy’s associate, attended settlement negotiations with                 
          respondent.  By day’s end, the parties had reached agreement on a           
          basis for settling all issues.  Respondent’s counsel agreed to              
          draft a stipulation of settled issues for petitioners to review,            
          which was provided to petitioners on Saturday, March 8, 2003.               
               Mr. and Mrs. Wolfe forwarded the draft stipulation to Mr.              
          Mansour, who expressed his belief that petitioners should not               
          have agreed to certain of its terms.  In particular, he believed            
          that respondent had double counted some of WFO’s income and                 
          included some WFO income in the wrong year.  After hearing Mr.              
          Mansour’s views, Mr. and Mrs. Wolfe refused to approve the draft            
          stipulation and insisted on continuing negotiations with                    
          respondent.                                                                 
               The parties had not resolved the issues that Mr. Mansour               
          raised by the March 10, 2003, calendar call in Columbus, Ohio,              
          which Mr. and Mrs. Wolfe attended.  Counsel reported that the               
          parties had not reached a settlement, and we set trial for the              






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