William Norwalk, Transferee, et al. - Page 11

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               As of June 30, 1992, other than the shareholders, the                  
          corporation employed the following persons:  Barbara Bailey;                
          Karin Laster; Beverly Hagan, C.P.A.; Thomas Tang, C.P.A.; Don               
          Christman, C.P.A.; Jeanette Joyce, accountant; Judy Cunningham,             
          administrator; and Joan Long, secretary.  After the liquidation             
          of the corporation, many of its former employees were                       
          subsequently employed by the partnership.  By the end of October            
          1992, both Beverly Hagan and Thomas Tang left the partnership to            
          set up their own separate accounting practices.  When Mr. Tang              
          left, Barbara Bailey, a computer consultant, and Karin Laster, a            
          bookkeeper, also left the partnership to work for Mr. Tang.                 
               When Ms. Hagan and Mr. Tang left to set up their individual            
          practices, they each sent announcements to former clients of the            
          corporation and to clients of the partnership informing them of             
          their move.  The partnership received at least 92 requests from             
          former clients to have the information contained in their files             
          made available to either Ms. Hagan or Mr. Tang.  Pursuant to                
          these client authorizations, the partnership permitted Ms. Hagan            
          and Mr. Tang to copy the files of clients that left the                     
          partnership.  Neither Messrs. DeMarta and Norwalk nor the                   
          partnership requested any compensation for any clients lost to              
          either Ms. Hagan or Mr. Tang.  Five years following the                     
          liquidation of the corporation, only about 10 percent of the                

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