Alfred E. Gallade - Page 5

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          valuation of the original plan and profit-sharing plan (the                 
          profit-sharing plan) and to discuss the distribution owed to                
          petitioner, as petitioner was near retirement age.  The options             
          reviewed by petitioner included his receiving a distribution from           
          the Plan as taxable income, rolling the benefits over into an               
          individual retirement account (IRA), or rolling the benefits over           
          into the profit-sharing plan.  At this meeting, the individuals             
          present did not discuss the possibility of petitioner’s waiving             
          his vested plan benefits.                                                   
               After the May 20, 1985, meeting, petitioner evaluated the              
          financial needs of GCI.  Amid GCI’s decreasing customer base and            
          financial losses, petitioner thought that expansion was                     
          necessary.  Therefore, petitioner decided that it would be best             
          for GCI if petitioner waived his benefits under the Plan and had            
          the funds paid to GCI to provide the necessary working capital.             
               Between the meeting on May 20, 1985, and July 12, 1985, Mr.            
          Zdonek called Mr. Salisbury and asked Mr. Salisbury to research             
          the question of whether petitioner was permitted to waive his               
          Plan benefits.  On July 12, 1985, Mr. Salisbury prepared a                  
          memorandum to GCI’s pension file which memorialized a telephone             
          conversation between Mr. Salisbury and Juanita Nappier (Ms.                 
          Nappier), a supervisor with the Pension Benefit Guaranty Corp.              
          (PBGC).  Mr. Salisbury stated that Ms. Nappier believed that it             
          would be fine for petitioner to waive his benefits under the Plan           
          due to GCI’s business conditions, so long as the rank and file              

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