Robert A. Read - Page 7

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          and his lawyers, sent Mr. Grossman demand letters, and finally              
          sued Mr. Grossman in March of 1987.  No evidence was presented              
          regarding the financial condition of Mr. Grossman except                    
          petitioner's oral testimony that Mr. Grossman had no assets and             
          had filed for bankruptcy.  The limited partners of VIP believed             
          that Mr. Grossman had assets worth pursuing.  Petitioner, as                
          general partner of VIP, attempted to collect on the replacement             
          note through legal action during the year 1986.                             
               On June 22, 1986, petitioner, as general partner of VIP,               
          sent a written notice of default and demand for payment in full             
          of the Grossman note to Mr. Grossman but not on the replacement             
          note.  On March 6, 1987, VIP filed a petition in the Oklahoma               
          County (State of Oklahoma) District Court suing Mr. Grossman on             
          the replacement note.  On May 26, 1987, Mr. Grossman filed an               
          amended answer alleging, inter alia, that he signed the                     
          replacement note to VIP “in his capacity as Trustee, not in a               
          personal capacity, and, if obligated at all, can only be                    
          obligated in that capacity.”  On May 28, 1987, VIP sent Mr.                 
          Grossman a request for admissions and interrogatories, and, in              
          his answer, Mr. Grossman stated that he signed the replacement              
          note only in his capacity as trustee for the “Oklahoma City Hotel           
          Joint Venture” (the joint venture).                                         
               The joint venture was composed of M&G Financial Corp., Inc.            
          (M&G) and MBG Financial Corp., Inc. (MBG).  On September 18,                
          1987, VIP filed an amended petition to join as codefendants M&G             

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