Alfred E. Gallade - Page 4

                                        - 4 -                                         
          its inception through its termination, at which time his accrued            
          benefit was fully vested.3                                                  
               Section 9.05 of the Plan, captioned “Nonreversion”,                    
          prohibited the Plan funds from being used for any purpose other             
          than for the exclusive benefit of the participants or their                 
          beneficiaries, except that                                                  
               Upon termination of the Plan, any assets remaining in                  
               the Trust Fund because of an erroneous actuarial                       
               computation after the satisfaction of all fixed and                    
               contingent liabilities under the Plan shall revert to                  
               the Employer.                                                          
          Under the heading of “Nonassignability”, section 16.03(A) stated:           
               None of the benefits, payments, proceeds or claims of                  
               any Participant shall be subject to any claim of any                   
               creditor of any Participant and, in particular, the                    
               same shall not be subject to attachment or garnishment                 
               or other legal process by any creditor of any                          
               Participant, nor shall any Participant have any right                  
               to alienate, anticipate, commute, pledge, encumber or                  
               assign any of the benefits or payments or proceeds                     
               which he may expect to receive under this Plan (except                 
               as provided in this Plan for loans from the Trust).                    
               [Emphasis added.]                                                      
               On May 20, 1985, petitioner, his sons (who were also                   
          employees of GCI), petitioner’s C.P.A. Henry Zdonek (Mr. Zdonek),           
          and a vice president of Actuarial Consultants, Inc., Scott                  
          Salisbury (Mr. Salisbury), met to review the yearend 1984                   

          3 At the Plan’s termination, the present value of                           
          petitioner’s accrued benefit was $1,057,830, and the Plan’s total           
          available assets at that time were $1,498,682.  The present value           
          of the accrued benefits of all other plan participants was at               
          that time $312,469.                                                         
               The parties agree that, if petitioner failed to report his             
          distribution from the Plan, the amount should be $1,057,830                 
          rather than $1,082,000, the amount stated in the notices of                 
          deficiency.                                                                 



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