Estate of Lorraine C. Disbrow, Deceased, Martha D. Johnson, Executrix - Page 20

                                        -20-                                          
               David Disbrow resided principally in Florida during some or            
          all of the time discussed herein.  In late 1997, after he was               
          reassigned to fly in and out of New York, New York, he began to             
          stay approximately 3 days a week at the residence with the                  
          consent of decedent.  Also with her consent, he allowed his                 
          girlfriend to stay periodically at the residence beginning in or            
          about January 1998.  The girlfriend worked out of New York, New             
          York, as a flight attendant, and she had recently been reassigned           
          there.  She was without any other place to stay, and she became             
          David Disbrow’s wife in late 1998 or early 1999.  When David                
          Disbrow and his girlfriend stayed at the residence, they slept on           
          the second floor of the house.  They did not pay any rent for               
          their use of the residence, and they did not pay any expense                
          connected with the residence.                                               
          11.  Sale of the Residence                                                  
               When decedent died on February 9, 2000, the fair market                
          value of the residence was $400,000.  On November 30, 2000, Funny           
          Hats sold the residence to David Disbrow for $350,000.  Funny               
          Hats sold the residence to David Disbrow upon his request and did           
          not attempt to obtain a second bid for the residence or otherwise           
          sell it in the market.                                                      
          12.  2001 Through 2003 Forms 1065                                           
               In addition to the Forms 1065 mentioned above, Funny Hats              
          filed 2001 through 2003 Forms 1065.  Each of the post-2000                  






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