Zahirudeen Premji and Carol M. Premji - Page 15

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          in M&L on September 20, 1990.  He received a promissory note                
          stating that his interest would be $3,500 per month for 12 months           
          (84 percent per year).                                                      
               On October 2, 1990, Mr. Norby again met with Mr. Krug and              
          asked additional questions about M&L's operations.  He did not              
          know and Mr. Krug did not tell him that the M&L bankruptcy                  
          petition had been filed on October 1, 1990.  Mr. Norby was                  
          satisfied with Mr. Krug's replies that M&L was doing fine and               
          invested an additional $10,000 on October 2, 1990.  He received a           
          second promissory note stating that his interest would be $700              
          per month for 12 months (84 percent per year).                              
              On October 11, 1990, Ms. Reyos told Mr. Norby that M&L had             
          filed the bankruptcy petition.  He did not receive M&L's October            
          4, 1990, letter and did not know about it until he received the             
          October 30, 1990, letter.  In view of his October 2, 1991,                  
          conversation with Mr. Krug, Mr. Norby thought both letters looked           
          suspicious.                                                                 
               Mr. Norby spoke with Ms. Reyos approximately once a week               
          during the remainder of 1990 in an attempt to determine what                
          M&L's intentions were regarding its investors.  He also spoke               
          with Mr. Joseph, M&L's president, several times during 1990 after           
          he learned that M&L had filed for bankruptcy.  He did not find              
          the information he obtained from these conversations to be                  
          positive.                                                                   






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