Estate of Eugene E. Stone, III, Deceased, C. Rivers Stone, E.E. Stone, IV, Mary Stone Fraser & Rosalie Stone Morris, Co-Personal Representatives - Page 48

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          was because they wanted to retain sufficient assets to enable               
          them to maintain their respective accustomed standards of living.           
          To that end, Mr. and Ms. Stone retained certain accountants to              
          advise them as to what assets they should retain, and not trans-            
          fer, to each of the Five Partnerships.  In order to formulate               
          such advice, those accountants performed various cashflow analy-            
          ses and appraisals, using different assumptions regarding the               
          respective life expectancies of Mr. Stone and Ms. Stone and the             
          anticipated returns on their respective investments.  The accoun-           
          tants retained by Mr. Stone and Ms. Stone recommended that they             
          retain, and not transfer, to the Five Partnerships total assets             
          that would yield a monthly total cashflow of between $12,000 and            
               The Stone family intended and agreed that all the partners             
          of each of the Five Partnerships were to receive respective                 
          partnership interests in each such partnership that were propor-            
          tionate to the fair market value of the assets that such partners           
          respectively transferred to such partnership.  To that end,                 
          during the period May 1996 through March 1997, before any of the            
          partners of each of the Five Partnerships transferred any assets            
          to such partnership, the process (prefunding process) of identi-            
          fying, describing, and obtaining various appraisals of the                  
          respective assets of Mr. Stone and Ms. Stone took place.  That              
          process was critical to enabling Mr. Stone, Ms. Stone, and the              

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