Eyefull Incorporated - Page 6

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          between him and petitioner or the shareholders.  Their                      
          understanding was based on what they had been told, by Mohney               
          himself and perhaps others, and it was confirmed by his                     
          availability 24 hours a day to participate in decisions on any              
          corporate matter of importance that arose.  Neither had ever seen           
          documentation of a consulting relationship, and none existed.               
          There is no written consulting agreement between petitioner and             
          Mohney relating to any period between 1985 and 1992.  Petitioner            
          has no timesheets, statements or bills detailing the dates,                 
          hours, or specific times for which compensation was payable to              
          Mohney.  Petitioner did not accrue a liability for consulting               
          fees on its books at the time Mohney rendered services.                     
               Beginning in or around 1991, petitioner engaged the services           
          of Deja Vu, Inc. (Deja Vu).  This company provides management               
          consulting for nightclubs.  At all relevant times its president             
          was Krontz and Mohney was one of its salaried employees.  Mohney            
          performed some services for petitioner in this capacity.  While             
          it is clear that petitioner paid Deja Vu for its consulting work,           
          it is not clear how much of the work was performed by Mohney or             
          how much Deja Vu was paid for Mohney’s work.  Mohney reported               
          wages from Deja Vu of $252,000 in 1990 and $261,000 in 1991.                
               It was Mohney’s original understanding from discussions with           
          Newlands that eventually he would receive 10 percent of                     
          petitioner’s gross receipts.  Petitioner made no payments to him            
          during 1985 through 1987.  In 1988 Mohney caused petitioner to              




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