Wallace and Donnetta Duncan, et al. - Page 9

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                                      APPENDIX                                        
                                ARBITRATION AGREEMENT                                 
               The Petitioners and Respondent (collectively referred to as            
          “the parties” herein) voluntarily agree to submit certain factual           
          valuation issues (“the Issues”), present in the above-entitled              
          United States Tax Court cases, for binding arbitration.  The                
          parties further voluntarily agree to the procedures and terms set           
          forth as follows in this Arbitration Agreement (“the Agreement”).           
               1.  ARBITRATOR.  The parties agree to select Forrest A.                
          Garb, Forrest A. Garb & Associates, Inc., (“the Arbitrator”), as            
          the sole arbitrator for the issues set forth in paragraph 2                 
          below.  The petitioners acknowledge that Mr. Garb was previously            
          employed by Respondent as his expert in the instant Tax Court               
          litigation.  The parties further agree that the fees and costs of           
          the Arbitrator will be shared equally by the two parties, subject           
          to the applicable rules and regulations for Government                      
          procurement, and that the specific costs and fees will be set               
          forth in a separate contract between the parties and the                    
          Arbitrator.                                                                 
               2.  ISSUES AND FINDINGS.  The parties agree that the Issues            
          submitted for determination by the Arbitrator are solely factual            
          in nature and do not require the Arbitrator to render any legal             
          opinions.  The parties further agree that the Arbitrator’s final            
          written determinations (“Findings”) should address the following:           






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