Whitman & Ransom, Maged F. Riad, Tax Matters Partner - Page 3

                                          3                                           
               W&R’s partnership agreement classified partners as either              
          equity partners, who shared in W&R’s profits and losses on the              
          basis of their partnership interests, or contract partners, whose           
          compensation was based upon agreement.  Handler, Donald Parson              
          (Parson), Richard Tilton (Tilton), and Elliot Hahn (Hahn) were              
          equity partners.2  James Sargent (Sargent) had been an equity               
          partner until April 1, 1984.  He continued as a contract partner            
          until W&R ceased doing business in 1993.                                    
               The partnership agreement was amended as of October 30, 1993           
          (the amendment), to provide for the liquidation and dissolution             
          of W&R commencing November 1, 1993.  The amendment provided in              
          Section 22(k):                                                              
               As the affairs of the partnership are wound up and its                 
               debts paid and other obligations, including obligations                
               to partners, discharged or provided for and the                        
               partners’ capital including voluntary capital and                      
               interest * * * has been returned to them, any net                      
               balance remaining in the hands of the liquidating                      
               partners shall be distributed * * * to the persons who                 
               are partners on the date of dissolution, pro rata in                   
               accordance with their “points” in the partnership set                  
               forth on Schedule A to the Agreement.[3]                               
               Certain of the former partners of W&R and members of another           
          law firm, Breed, Abbott & Morgan, formed a new partnership,                 
          Whitman, Breed, Abbott & Morgan (WBAM), effective November 1,               

               2 Michael Allen (Allen) and David Morse (Morse) were                   
          contract partners under the partnership agreement.                          
               3 Handler, Parson, Tilton and Hahn are listed on Schedule A            
          with “points” attributed to them.  Sargent is not listed on                 
          Schedule A.                                                                 





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