Northwestern Indiana Telephone Company - Page 8

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            and later, in the fall of 1993, moved some of its marketing                                
            division employees into the building.                                                      
                  From 1987 through 1989, NITCO had no plans to build other                            
            principal office facilities for itself or to expand and enlarge                            
            its offices at 205 North Washington Street.  In securing office                            
            facilities for NITCO, Mr. Mussman's longstanding practice was to                           
            own individually the office building and lease it to NITCO.  As                            
            the building's owner, Mr. Mussman, rather than NITCO, financed                             
            and constructed the building.  NITCO's respective lease                                    
            agreements with Mr. Mussman on the 205 and 301 North Washington                            
            Street buildings were entered into prior to each building's                                
            construction, so that Mr. Mussman could use the executed lease                             
            agreement to secure financing from a lender to construct the                               
            building.  Mr. Mussman experienced no difficulty in obtaining                              
            loans to construct the 205 and 301 North Washington Street                                 
            buildings.  The lease agreements and the mortgages on the                                  
            buildings served as the security for the lender's loans to Mr.                             
            Mussman.                                                                                   
                  No enlargement of NITCO's offices at 205 North Washington                            
            Street occurred from 1987 through 1994.                                                    

                     C.  NITCO's Alcatel Telephone Switching Equipment                                 

                  During 1985 through 1987, NITCO replaced the old switching                           
            systems at its five exchanges with new digital switching                                   
            equipment it purchased from Alcatel, a French manufacturer of                              




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