V.R. DeAngelis M.D.P.C. & R.T. Domingo M.D.P.C., V. R. DeAngelis M.D.P.C., Tax Matters Partner, et al. - Page 37




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               E.  Dr. Durante Policy                                                 
               The December 28, 1993 and 1994, premiums of $21,996.32 on              
          the Dr. Durante policy were paid timely, and PUAR was purchased             
          in each year with additional premiums of $28,003.68.  In 1996,              
          the premium due on December 28, 1995, was paid timely with a                
          dividend withdrawal of $1,881.58 and a withdrawal of $20,114.74             
          from the PUAR.  In 1997, the premium due on December 28, 1996,              
          was paid timely with a dividend withdrawal of $1,618.17 and a               
          withdrawal of $20,378.15 from the PUAR.  The premium due on                 
          December 28, 1997, was not paid timely, and the policy lapsed for           
          nonpayment of the premium.  MetLife continued the policy as                 
          nonparticipating paid-up term insurance with a face value of                
          $1,864,269 through February 1, 2005, at which time it was set to            
          be depleted of its cash value and thus to terminate without                 
          value.                                                                      
               F.  Ms. Quinn Policy                                                   
               The December 28, 1993 and 1994, premiums of $6,173.67 on the           
          Ms. Quinn policy were paid timely, and PUAR was purchased in each           
          year with additional premiums of $5,826.33.  In 1996, the premium           
          due on December 28, 1995, was paid timely with a dividend                   
          withdrawal of $422.06 and a withdrawal of $5,751.61 from the                
          PUAR.  In 1997, the premium due on December 28, 1996, was paid              
          timely with a dividend withdrawal of $337.18 and a withdrawal of            
          $5,836.49 from the PUAR.  The premium due on December 28, 1997,             







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