Andrew and Margita Zards et al. - Page 6

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          Kasa, one of its original directors, and its first president.  On           
          October 2, 1985, Vebeliunas, as president of Good Shepherd,                 
          executed a note obligating Good Shepherd to pay Kasa $160,000               
          (the second Kasa obligation).  On that same date, also as                   
          president of Good Shepherd, Vebeliunas executed a mortgage on the           
          property (the second Kasa mortgage) to secure payment of the                
          second Kasa obligation.  The second Kasa mortgage recites that it           
          is subordinate to the first mortgage, which is stated to have an            
          approximate principal balance of $900,000.  Also on October 2,              
          1985, Vebeliunas, as president of Good Shepherd, and Kasa entered           
          into a mortgage consolidation agreement (the consolidation                  
          agreement), whereby the first and second Kasa mortgages were                
          consolidated, to secure total debts of $410,000 (the consolidated           
          Kasa mortgage).  The consolidation agreement also recites that it           
          is subordinate to the first mortgage, which is stated to have an            
          approximate principal balance of $900,000.                                  
               In December 1985, Vebeliunas, as president of Litas,                   
          executed an indenture in favor of Salesian under which (1) Litas            
          agreed to pay to Salesian $760,000 and (2) accorded to Salesian a           
          mortgage in the property to secure that obligation (the first               
          Litas indenture).  In December 1986, Vebeliunas, as president of            
          Litas, executed a second and similar indenture in favor of                  
          Salesian, except that the amount of debt was recited to be                  
          $600,000 (the second Litas indenture).                                      






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