Ronald D. Ciaravella - Page 9

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          prominent figures through his racing activities.  As a result of            
          a contact that Mr. Ciaravella made at one of his races, on                  
          August 14, 1996, Dolphin sold a Learjet to a Las Vegas                      
          construction company for $1,925,000.  Mr. Ciaravella claims that            
          his racing activities resulted in other contacts that have led to           
          the sale and lease of aircraft by Dolphin.  Dolphin reimbursed              
          Mr. Ciaravella for the bulk of the expenses connected with his              
          racing activities, treating them as advertising expenses.                   
              Mr. Ciaravella's race car also bore the logos of Champion,             
          Checkers, and Valvoline during the years in issue; in return, he            
          received free spark plugs from Champion and free oil from                   
          Valvoline.  Dolphin has never sponsored or placed its logo on any           
          other race car.                                                             
               During fiscal periods ending August 31, 1991, August 31,               
          1992, and August 31, 1993, Dolphin used the following five                  
          advertising accounts:3                                                      
               Account No.              Trade Magazine/Publication/Other              
               6051                          (a) Trad-A-Plane                         
                                             (b) Clubhouse                            
                                             (c) Mcgraw                               
                                             (d) Trader Publication                   
                                             (e) Remuo                                
               6052                          (a) Trad-A-Plane                         
                                             (b) Thurot Tech Aviation                 
                                             (c) Bham News                            


               3 It is not clear why five separate accounts are used, nor             
          is it clear why the name of some publications appear in more than           
          one account.                                                                



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