Lumber City Corporation, f.k.a. Neiman-Reed Lumber and Supply Company, Inc. - Page 28

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               We disagree with the various contentions of both parties.              
          However, we believe that petitioner's positions regarding the               
          fiscal years for which it paid the compensation accrued under the           
          1987 deferred compensation arrangement and for which it paid the            
          compensation during its fiscal year ended February 28, 1990, are            
          more consistent with the record herein than are respondent's                
          positions concerning those matters.                                         
               Specifically, based on our examination of the entire record            
          before us, we find that petitioner awarded most of the $933,333             
          it paid to Mr. Ruf pursuant to the 1987 deferred compensation               
          arrangement as compensation for services he performed during its            
          fiscal year ended February 28, 1987, and the balance of that                
          amount as compensation for services he provided during its fiscal           
          years ended February 29, 1988, and February 28, 1989.  The 1987             
          deferred compensation arrangement provided in pertinent part that           
          Mr. Ruf "has been required and continues to be required to render           
          services substantially in excess of those which would ordinarily            
          be required" and "has, in his capacity as president and chief               
          operating officer, provided extraordinary leadership and ability            
          as evidenced by the Corporation's [petitioner's] current operat-            
          ing profits and steadily improving financial position".  That               
          petitioner awarded substantial additional compensation to Mr. Ruf           
          for services he provided during its fiscal year ended February              







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