Linda L. Domanico and Anthony M. Domanico - Page 4

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          Inc. (TWA).  During her employment with TWA, Mrs. Domanico                  
          participated in TWA’s 401(k) plan.                                          
               In 1996, Mrs. Domanico terminated her employment with TWA              
          because of a permanent injury that she incurred on board an                 
          aircraft.  Several years later, she continued her studies towards           
          a permanent teaching certificate.  In 2000, Mrs. Domanico began             
          her graduate studies.  She incurred the following higher                    
          education expenses:                                                         
               Year      College                       Amount                         
               1999      Adelphi & St. John’s                                         
                         University                    $6,273                         
               2000      St. John’s University         11,848                         
               2001      St. John’s University         10,357                         
               2002      Teacher Education Institute   517                            
               2003      Teacher Education Institute    3,152                         
                        Total                         $32,147                        
          During 2001, Mrs. Domanico was also employed as a librarian.                
               TWA informed Mrs. Domanico by letter dated July 25, 2001,              
          that American Airlines had acquired TWA and that she was                    
               eligible to “roll over” your account balance to another                
               qualified plan or IRA.  You were advised that, once                    
               your TWA-sponsored Plan (the “Plan”) is terminated, you                
               will be required to:  (i) make an election either to                   
               roll over the balances in that plan to the American                    
               Airlines $uper $aver Plan (or other qualified plan if                  
               you take a job with another company that allows such                   
               rollovers); (ii) transfer your balances to an                          
               individual IRA; or (iii) take a direct distribution.                   
               On the basis of her research of the 2001 U.S. Master Tax               
          Guide (Master Tax Guide), a tax guide published by Commerce                 
          Clearing House, Inc., a private commercial publisher, Mrs.                  
          Domanico decided to take a direct distribution of $40,457 from              

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