Joe E. Henry and Carolyn J.Henry - Page 8

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          related to Stewart's clients who subsequently invested in                   
          Sunbelt.                                                                    
               Storey considered contacting an independent engineer for               
          advice regarding the recycler, but he did not know how or where             
          to locate someone knowledgeable in plastics.  Despite his visits            
          to Hyannis and review of the offering memorandum, Storey did not            
          know the names of specific companies that would lease the                   
          recyclers, whether the use of the recycler would be profitable              
          for any company, or the operating history of the recycler.                  
              Storey spent about 100 hours on an "investigation" of                  
          Sunbelt.  He kept track of the time he devoted to this                      
          "investigation" through the use of time sheets and memoranda                
          regarding his telephone conversations.  Storey billed the time              
          directly related to petitioner's investment in Sunbelt to                   
          petitioner at one rate, and Storey allocated a portion of the               
          other time, which was general in nature with respect to the                 
          investment, to petitioner at a different rate.  Storey believed             
          he would recoup the expenses related to his "investigation"                 
          through commissions from Sunbelt and the fees he charged clients.           
               Storey recommended Sunbelt to at least five of his clients             
          including petitioners.  For each investment, Storey was entitled            
          to receive, and on some occasions did receive, a commission of 10           
          percent of their investment.  Although Storey was entitled to               
          receive a commission of $5,000 related to petitioners' investment           






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