Mark N. and Marla R. Kantor - Page 5

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            mornings.  Despite being confronted during this period by at                              
            least one coworker friend who was concerned about his drug use,                           
            Mark made no effort to stop abusing drugs.  In 1982 and 1983,                             
            during Mark's chaotic last 2 years at Goldman, Sachs & Co., he                            
            stopped filing income tax returns.  In 1981, just as his drug use                         
            was increasing and his behavior had begun to become more erratic,                         
            Mark prepared and filed a joint income tax return for himself and                         
            Marla for 1980 that included a detailed income averaging                                  
            computation.                                                                              
                  Although Mark's income continued to rise in 1982 and 1983,                          
            he drew his bonuses from a pool based upon the performance of his                         
            group as a whole.  The bonus growth was mainly fueled by the                              
            resurgent stock market of the early 1980's, and not by Mark's                             
            particular expertise and efforts.  In 1982, over $150,000 of                              
            Mark's total compensation of $202,385 consisted of bonuses.  In                           
            1983, Mark's income grew to $441,075, although that included                              
            deferred compensation received by him when he resigned his                                
            position.  Goldman Sachs & Co. earned commissions of $2.5 million                         
            to $4.5 million during 1981 to 1983 on transactions that Mark had                         
            executed.  During the 1980's, Goldman Sachs & Co. promoted many                           
            of Mark's contemporaries to positions of greater responsibility,                          
            while Mark was not so promoted.  He remained one of many traders                          
            who had a nominal title of vice president.  His career had begun                          
            to stall.  During his last couple of years at Goldman Sachs &                             






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