Frank Petar Contracting, Inc. - Page 7

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          a reproduction of a handwritten document entitled “Promissory               
          Note” and dated May 23, 1990, acknowledging petitioner’s                    
          obligation, on or before August 15, 1990, to pay Mr. Petar                  
          $100,000 for services performed during the fiscal year (the                 
          Note).  Petitioner presented the testimony of Mrs. Petar and her            
          daughter Sonya to establish the authenticity of the Note.  These            
          witnesses testified that they drafted the Note in accordance with           
          Mr. Cunniff’s instructions while Mr. Petar was temporarily living           
          at a construction site out of town, and that Mrs. Petar delivered           
          the Note to Mr. Petar for execution on petitioner’s behalf about            
          2 or 3 days later.  Sonya had no clear recollection of when the             
          events she described occurred.  According to Mrs. Petar, they               
          occurred at some time during the last week of May 1990,                     
          consistent with the date shown on the Note.  There were                     
          inconsistences in Mrs. Petar’s account that appeared to be                  
          attributable to language comprehension problems.                            
               Both Mrs. Petar and Mr. Cunniff testified that it was                  
          Mr. Petar who originally identified the need for the Note.  When            
          Mr. Petar was asked to explain the circumstances requiring the              
          issuance of the Note, his initial response was that he would                
          prefer to let his accountant explain.  After the Court encouraged           
          him to testify on the subject, he testified that, at the time the           
          bonus was awarded to him, the company needed to conserve its cash           
          balances pending collection of unpaid accounts from third                   
          parties.                                                                    



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