Haffner's Service Stations, Inc. - Page 8




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          nonvoting shares, and Emile and each grandchild owned 450 of the            
          nonvoting shares.                                                           
          Family Lawsuit                                                              
               On or about November 21, 1989, Richard and Susan filed a               
          complaint with the probate court against Emile and Louise, each             
          individually and as executors of John’s estate.  The complaint              
          alleged that Emile and Louise had breached their fiduciary duty             
          as executors by failing to list properly the assets of John’s               
          estate (e.g., the shares underlying the 1961 transfer (disputed             
          shares)) and by failing to distribute those assets in accordance            
          with John’s will.  The complaint primarily sought rescission of             
          the 1961 transfer, any costs (including attorney’s fees) incurred           
          by Richard and Susan in prosecuting the family lawsuit, and the             
          return (with interest) of all unnecessary expenses incurred by              
          John’s estate (e.g., for income taxes, accountant’s and                     
          attorney’s fees, and filing fees).5  Petitioner was not named as            
          a defendant in the family lawsuit.  Jolyne later joined the                 
          family lawsuit on or about June 6, 1995.6                                   


               5 On or about Nov. 13, 1990, Richard and Susan amended the             
          complaint primarily to allege further that Emile and Louise were            
          also liable to them for self-dealing as executors of John’s                 
          estate.  The first amended complaint generally sought further               
          damages in the form of a complete accounting of expenditures and            
          financial information relating to the estate and to many of the             
          Haffner/Fournier family entities.                                           
               6 Haff never joined the family lawsuit, which he viewed as a           
          family falling-out that rested on the plaintiffs’ attempt to get            
                                                             (continued...)           





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