1 John M.

McKindles (006401)
McKINDLES LAW FIRM, P.L.L.C.
2 1108 E. Greenway, Suite 1
Mesa, Arizona 85203
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Phone 480-964-9302
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Attorneys for Debtor
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IN THE UNITED STATES BANKRUPTCY COURT
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FOR THE DISTRICT OF ARIZONA
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In re: Chapter 11 Case
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ARIZONA APPLE ORCHARDS, INC., No. 2-03-14269-GBN
9 an Arizona corporation,
Debtor. Adv. No. 03-1048
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FIRST APPLICATION FOR INTERIM
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COMPENSATION OF ATTORNEY’S
12 FEES AND COSTS

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Application Period September 30, 2004 through March 23, 2006
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TO: THE HONORABLE GEORGE B. NIELSEN JR.
15 UNITED STATES BANKRUPTCY JUDGE
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McKindles Law Firm, PLLC (“Applicant”), by John M. McKindles, hereby
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submits, pursuant to 11 U.S.C. §§327, 328 and 331, its Application for Compensation in
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the above captioned case.
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1. Debtor was authorized to employ the firm of McKindles Law Firm, PLLC

21 as Special Counsel to represent it by Order of this Court which was granted on

22 September 30, 2004.
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 1 2. Debtor’s Special Counsel has reason to believe that Debtor is current in all
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quarterly fees and any cash the Debtor has is unencumbered. Attorney fees due
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Debtor’s Special Counsel have not been paid.
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3. Applicant makes this Application pursuant to 11 U.S.C. §§331 for
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6 compensation for professional services rendered and for reimbursement of out-of pocket

7 expenses necessarily incurred by the firm during the representation of the Debtor.
8 4. This is Applicant’s first application for compensation. This Application is
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for services rendered from September 30, 2004 through March 23, 2006 (“Application
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Period.”)
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5. During the Application Period, attorney John M. McKindles has devoted
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13 substantial time to rendition of services for the Debtor. The actual hours expended,

14 services performed, rates charged and fees incurred are detailed on Exhibit “A” attached
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hereto.
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6. All professional services for which compensation is requested were
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performed by Applicant for and on behalf of the Debtor herein. Special Counsel’s
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approved hourly rate is $250.00.

20 7. Since Applicant may be called upon to render continuing legal services to

21 the Debtor in connection with this case, it is desirable that Applicant be compensated on
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an interim basis.
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 1 8. The rates charged by Applicant are the normal charges for the services
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rendered in proceedings such as these. These fees are reasonable and the services
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provided were appropriate and of benefit to the estate.
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9. According to Applicant’s standard hourly rates, the amount owed for
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6 services rendered during the Application Period to the Debtor in connection with the

7 case totals $126,325.00. During the Application Period, Applicant has also incurred
8 reasonable and necessary out-of-pocket expenses in connection with this case in the
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amount of $1,871.33. Debtor’s principal provided a Pre-Petition retainer in the amount
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of $5,000.00 and has made subsequent payments totaling $50,000.
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10. The statements attached as Exhibit “A” are a substantially complete and
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13 detailed listing of time spent, services rendered, fees charged and expenses incurred

14 during the Application Period. It is possible that a few hours and/or expenses have been
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omitted. Applicant’s time records are processed by computer, and the attached listing
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may not contain entries for work performed during the Application Period but entered
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into the computer after that listing was printed. If this occurred, the omitted time and/or
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expenses will be listed in a supplement to be filed prior to the hearing on the

20 Application.

21 11. Applicant has no agreement of any kind, express or implied, to divide with
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any other person any portion of the compensation sought or to be received by it herein;
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other than to reimburse Debtor’s principal for the $55,000 paid by Debtor’s principal,
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should full payment for all of Applicant’s fees and costs be paid by Debtor.
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 1 WHEREFORE, Applicant prays that this Court enter an Order as follows:
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1. Approving the allowance of interim compensation to Applicant in the
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amounts of $126,325.00 for attorney’s fees and $1,871.33 for costs for the period of
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September 30, 2004 through March 23, 2006, inclusive.
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6 2. Authorizing and directing payment forthwith from the estate to the firm of

7 McKindles Law Firm, PLLC, of the approved attorney’s fees and costs; total to be paid
8 by the estate is $128,196.33, $73,196.33 of which should be paid first to Applicant and
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the balance of $55,000 payable or designated for reimbursement to Debtor’s Principal.
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DATED this 3rd day of April, 2006.
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McKINDLES LAW FIRM, P.L.L.C.
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By /s/ John M. McKindles
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John M. McKindles
1108 East Greenway, Suite 1
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Mesa, AZ 85203
16 Attorneys for Arizona Apple Orchards, Inc.

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