American Valmar International Ltd., Inc., et al. - Page 10

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            American Valmar’s Federal Income Tax Returns                                                 
                  Simon Bolonik (Bolonik) became American Valmar’s accountant                            
            in January 1991.  Bolonik established the books and records of                               
            American Valmar.  Based on his conversations with Markovski, he                              
            determined the accounting and Federal income tax treatment of                                
            American Valmar’s receipts and disbursements.  Based on what                                 
            Markovski told him, he determined the Federal income tax                                     
            treatment of amounts received by wire transfer by Markovski.                                 
            Bolonik prepared American Valmar’s and Markovski’s Federal income                            
            tax returns.                                                                                 
                  Certificates of assessments and payments maintained by the                             
            Internal Revenue Service for American Valmar reflect that the                                
            income tax returns of the corporation for the fiscal years at                                
            issue were filed as follows:                                                                 
            Taxpayer             Period            Date Filed                                            
            American Valmar         6/30/91             2/16/93                                          
            American Valmar         6/30/92             7/6/94                                           
            American Valmar         6/30/93            12/19/94                                          
            The income tax returns filed by American Valmar for the fiscal                               
            years at issue bear date received stamps on their face as                                    
            follows:                                                                                     
            Taxpayer             Period           Date Received Stamp                                    
            American Valmar         6/30/91                2/16/93                                       
            American Valmar         6/30/92                None                                          
            American Valmar         6/30/93               12/19/94                                       








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