Normandie Metal Fabricators, Inc. - Page 11

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          $70,000 in 1993 and $86,000 in 1994.  Petitioner made these                 
          quarterly payments after Richard Schwaeber had prepared                     
          petitioner's quarterly financial statements.                                
               Petitioner compensated Isidore Klein from 1986 to 1995 as              
          follows:                                                                    
                                            Percentage of                            
                    Year       Amount         gross sales                             
                    1986      $226,752          8.0%                                  
                    1987      238,298           8.0                                   
                    1988      405,400          12.4                                   
                    1989      426,068          12.6                                   
                    1990      304,100           8.3                                   
                    1991      251,100           7.7                                   
                    1992      367,400          10.2                                   
                    1993      352,000           9.9                                   
                    1994      368,000          10.0                                   
                    1995      5,000          –-                                       
                    b.   Steven Klein                                                 
               From sometime in the 1980's until January 1995, Steven Klein           
          and Isidore Klein disagreed about how much petitioner would pay             
          Steven Klein, but Isidore Klein ultimately paid Steven Klein what           
          he requested.  Steven Klein set his own pay in 1995.  Petitioner            
          compensated Steven Klein from 1991 to 1995 as follows:                      
                              Year           Amount                                   
                              1991           $393,800                                 
                              1992           476,800                                  
                              1993           500,400                                  
                              1994           450,400                                  
                              1995           820,400                                  
               In 1995, petitioner paid Steven Klein:  $7,700 per week,               
          $220,000 on December 26, 1995, and $200,000 on December 28, 1995.           
               Steven Klein discussed with Richard Schwaeber how much                 






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