Sherman R. Solaas - Page 4

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               KBI paid Mr. Solaas, John C. Espino (Mr. Espino), and Larry            
          C. Graham (Mr. Graham), officers of KBI, the following salaries:            
                Year     Mr. Solaas     Mr. Espino     Mr. Graham                     
          1987      $156,000            $69,566        $65,738                        
          1988       203,980        73,653        68,525                              
          Mr. Solaas decided how much KBI paid Mr. Espino, Mr. Graham, and            
          himself.                                                                    
               Parr Contracting Co. (PCC) was a construction contractor               
          similar in size to KBI--it averaged between $20 and $35 million             
          in gross sales per year.  From 1986 through 1989, PCC paid its              
          CEO between $350,000 and $500,000.  Auerbach Construction, Inc.             
          (ACI), was a construction contractor similar in size to KBI--it             
          averaged between $20 and $25 million in gross sales per year.  In           
          1989, ACI paid its president and CEO approximately $250,000.                
               Several times from 1988 until 1992, KBI loaned various                 
          amounts of money to Mr. Solaas.  KBI recorded these loans on its            
          financial statements as accounts receivable from Mr. Solaas.  Mr.           
          Solaas determined the amounts of these loans.  Between September            
          of 1989 and December of 1992, Mr. Solaas repaid $88,000 of the              
          money KBI loaned to him.                                                    
               As of February of 1993, KBI's loan account analysis listed             
          the amount of the loans outstanding to Mr. Solaas as totaling               
          $911,073.15.  After February of 1993, KBI did not loan Mr. Solaas           
          any money.  On March 30, 1994, the amount of KBI's loans                    
          outstanding to Mr. Solaas totaled $1,011,340.                               




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