Alondra Industries, Limited, d.b.a. Accent Insulation Company and Subsidiaries, et al. - Page 17

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          any relevant period.  Pertinax's rent expense was not charged               
          separately to its three corporate partners, but was absorbed in             
          the 10 to 11 percent markup added to the costs that Pertinax                
          invoiced to the partners.  Mr. Munro reported $128,160 in rental            
          income from the El Centro property on his 1987 U.S. Individual              
          Income Tax Return.                                                          
          Mr. Munro's Working Conditions and Responsibilities                         
               In 1986 and 1987, Mr. Munro had a house in San Marino,                 
          California, about 5 miles from the El Centro property.  However,            
          he generally lived at another house in Santa Barbara, California,           
          about 75 miles from the El Centro property.                                 
               If Mr. Munro was not in the office on a particular business            
          day, a designated executive of Pertinax called him at the end of            
          the day to report on the day's business activities and to obtain            
          operating instructions for the following day or days.  Mr. Munro            
          would give specific directions about what should be done                    
          regarding current sales, cash management, sales with interesting            
          indications about the current market, and sometimes employee                
          matters.  A typical conversation would last between 10 and 30               
          minutes.  In 1986 and 1987, Mr. Brewer coordinated sales                    
          activities, carried out Mr. Munro's policy directives governing             
          marketing practices, gross profit margins, how competitive to get           
          with a particular contractor, and so on, and conducted the daily            
          telephone conversations with Mr. Munro.  Mr. Munro made the final           
          policy decisions for Pertinax and the other entities, including             




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