Leonard Pipeline Contractors, Ltd. - Page 11

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            Other Circumstances                                                                           
                  Mr. Leonard had open-heart surgery in 1977 and 1980.  Around                            
            1983, he considered himself substantially retired.  In 1986, Mr.                              
            Leonard’s doctor recommended that he limit his work to 6-8 hours a                            
            day.  In 1987, at 67 years of age, Mr. Leonard limited his work to                            
            7-8 hours a day, 6 days a week.                                                               
                  In 1985, Mr. Leonard underwent a divorce.  Pursuant to a                                
            February 27, 1986, temporary support order of the Superior Court of                           
            Arizona, Mr. Leonard was required to cause one of his corporations                            
            to pay his estranged wife a salary; accordingly, petitioner paid                              
            Mrs. Leonard $3,000 a month (even though she did not work for                                 
            petitioner).  In April 1987, the Maricopa County Superior Court                               
            entered a decree of dissolution of marriage with regard to the                                
            Leonards.  Mr. Leonard and his estranged wife agreed to a property                            
            settlement divorce and separation agreement.  Pursuant to this                                
            agreement, Mrs. Leonard received from Mr. Leonard money and                                   
            property valued at $1,680,000.  She also received a 1985 380                                  
            Mercedes Benz automobile (which had previously been owned by                                  
            petitioner), as well as 1,165,000 class A shares of RLLH stock.                               
                  Following his divorce, Mr. Leonard decided to restructure his                           
            companies in light of his imminent retirement.  Mr. Leonard retired                           
            in mid-1988.                                                                                  









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Last modified: May 25, 2011