Estate of Winifred Hughes, Deceased, Dean McBride, Executor and Trustee - Page 12

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         deductions on its 1997 income tax return.  However, that return              
         is not consistent with its financial statements, which show a net            
         loss of $20,875 before net operating losses are considered.                  
              The estate contends the funds from the stock subscription               
         agreement reduced Advance Leasing’s debt obligations, made the               
         balance sheet cleaner, and made it easier for the company to                 
         secure outside financing.  Despite this claim, Advance Leasing               
         did not receive the funds until after decedent died.                         
              Advance Leasing’s financial situation remained poor on April            
         29, 1997.  James McBride (an attorney for Advance Leasing and the            
         brother of McBride) testified that Advance Leasing and its                   
         business had negligible, if any, value when the stock                        
         subscription agreement was entered into on April 29, 1997.  James            
         McBride advised his brother regarding the stock subscription                 
         transaction, and he drafted the stock subscription agreement and             
         the $400,000 promissory note.  James McBride stated that it would            
         have been futile for HELP to demand full payment by Advance                  
         Leasing because Advance Leasing lacked the ability to repay the              
         more than $864,000 it owed to HELP at the end of 1996.  James                
         McBride testified that HELP wanted Advance Leasing to survive in             
         the hope that it would generate income and repay its debt to                 
         HELP.                                                                        
              James McBride’s testimony is corroborated by the estate tax             
         return for the Estate of Bob Hughes and the Advance Leasing                  






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