Howard H. Thompson, Jr. - Page 30

                                       - 30 -                                         
          were payable to Mr. Thompson, petitioner’s father, and issued by            
          Polaris with respect to Mr. Thompson’s investment; and                      
          (9) petitioner’s receipt of petitioner’s sales proceeds from the            
          sale of the arcade games.                                                   
               In support of his position that he does not have the unre-             
          ported income at issue for 1995 and 1996, petitioner relies on              
          his testimony.  In an Order dated May 13, 2003, at the call of              
          this case from the calendar on June 2, 2003, and at the trial of            
          this case on June 3, 2003, the Court advised petitioner that he             
          may not introduce at the trial in the instant case any evidence             
          that is inconsistent with or contrary to the deemed admissions              
          and the deemed stipulations in this case.                                   
               At trial, respondent objected to certain of petitioner’s               
          testimony on the ground that it was inconsistent with or contrary           
          to certain of the deemed admissions and deemed stipulations in              
          this case.  The Court sustained respondent’s objections to the              
          extent the Court found petitioner’s proffered testimony to be               
          inconsistent with or contrary to certain of those admissions and            
          stipulations.  Nonetheless, petitioner persisted in proffering              
          testimony, to which respondent objected as inconsistent with or             
          contrary to certain of the deemed admissions and deemed stipula-            
          tions in this case.  In order to facilitate the trial in this               
          case without repeated objections by respondent, the Court allowed           
          respondent to make a standing objection to petitioner’s testimony           






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