Labelgraphics, Inc. - Page 20

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          president remained his full-time job.4  Thus, any reduction in              
          the hours he worked per week for petitioner must be balanced                
          against his knowledge and experience in the industry and the                
          valuable services he continued to render to petitioner during its           
          1990 fiscal year.                                                           
               In 1989 and 1990, Mr. Martin was instrumental in developing            
          petitioner's Micro Clean 100 process for producing clean room               
          labels.  The resulting clean room labels were a technologically             
          innovative, commercially promising, and potentially significantly           
          profitable new product.  Over the short period from early 1990,             
          when development work on the labels' production process was                 
          completed, through June 30, 1990, petitioner had $32,639 in sales           
          of the new labels.  In June 1990, its directors anticipated the             
          labels would contribute significantly to petitioner's                       
          profitability and financial success in future years.                        
               However, Mr. Martin's 1990 bonus of $722,913 is almost three           
          times the size of his prior largest annual bonus of $250,000 for            
          1988.  Indeed, on brief, petitioner acknowledges the 1990 bonus             
          to be an "unusually high", "extraordinary one time" bonus.  The             
          record further fails to reflect that part of this 1990 fiscal               
          year compensation was to remedy petitioner's alleged prior                  
          undercompensation of Mr. Martin.                                            


               4The parties stipulated that his being petitioner's                    
          president was a "full-time job".                                            




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