Charles A. Dennis and Alison M. Dennis - Page 6

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               against all accrued commissions, any debt due from                     
               [petitioner] arising from all transactions under this                  
               or any previous contract.  Any debit balance that has                  
               not paid itself off within 12 months after the                         
               termination of this contract will be due and payable as                
               described in 15.b below and no additional bonus                        
               commissions will be due and payable to [petitioner]                    
               under this contract.                                                   
                         *     *     *     *     *     *     *                        
                    15.b.  Any refunds or indebtedness owed by                        
               [petitioner] arising under this contract, or arising in                
               any other matter, less accrued commissions due                         
               [petitioner] shall be due and payable within thirty                    
               (30) days after written demand by [American] * * *                     
               Petitioner had complete dominion and control over the                  
          advance commissions (other than an obligation to make repayment)            
          and did not include in income any amount received as an advance             
          commission.  The advance commissions were recorded in an advance            
          commissions account.  The advance commissions account was offset,           
          or reduced, by the amount of actual commissions later earned by             
          petitioner.  The advances were charged a 1.3 percent-                       
          administrative fee each month.  In the event that there were a              
          debit balance at the end of 12 months after the termination of              
          the relationship between petitioner and American, such balance              
          would be due and payable on demand.  Petitioner received a                  
          termination letter from American on December 10, 1992.  At that             
          time, there was a debit balance in the advance commissions                  
          account of approximately $156,000.  This balance had been                   
          eliminated by the time of trial, and American never demanded                
          payment from petitioner.  Petitioner alleged that demand was                

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