John F. and Tracy L. Barford, et al. - Page 3

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          (RAM Drilling); TMC Farms, Inc. (TMC Farms); TMC Oil Company                
          (TMC Oil); Marco Oil, Inc. (Marco Oil); and Sentry Investment               
          Company (Sentry).                                                           
               On January 25, 1982, Marco Oil made two loans, one to RAM              
          Drilling for $2,700,000, and another to TMC Farms for $420,000,             
          both at the stated interest rate of 14 percent.  The notes to               
          Marco Oil from RAM Drilling and TMC Farms were later assigned to            
          TMC Resources upon the liquidation of Marco Oil.  All payments              
          on the loans to RAM Drilling and TMC Farms were applied 100                 
          percent to principal.  None of the loan payments was applied to             
          any accrued interest.  On October 29, 1982, the stated interest             
          rate was eliminated, and thereafter the loans of the principal              
          balance and subsequent advances accrued no interest.                        
               On March 25, 1983, TMC Resources contributed its Sentry                
          stock to RAM Drilling.  On March 26, 1983, TMC Resources                    
          contributed its TMC Farms stock to RAM Drilling.  On March 28,              
          1983, TMC Oil and Marco Oil were liquidated, and all of their               
          assets and liabilities were distributed to TMC Resources.  On               
          the same date, Sentry was liquidated by RAM Drilling.                       
               On March 31, 1983, TMC Resources was liquidated pursuant to            
          section 337 with all of its assets and liabilities distributed              
          to petitioners, its four equal shareholders.  As part of the TMC            
          Resources liquidation distribution, petitioners received the                
          notes originally given to Marco Oil by RAM Drilling and TMC                 

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