Alpha Medical, Inc., f.k.a. Alpha Medical Management, Inc. - Page 16

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          experience in the health care industry.  Furthermore, Rogers                
          developed a single drugstore into a chain of stores that he sold            
          in 1986 and a hospital supply business that he sold to a publicly           
          traded company in 1984.                                                     
               Rogers was instrumental in developing petitioner's computer            
          software programs, mock surveys, and policy manuals, solving its            
          staffing problems, and developing cost-efficient operating                  
          procedures.  Petitioner's success is mainly attributable to                 
          Rogers' ambition, creativity, vision, and energy, not to its                
          investment in capital.  See Home Interiors & Gifts, Inc. v.                 
          Commissioner, supra at 1158; Dave Fischbein Manufacturing Co. v.            
          Commissioner, supra.  This factor favors petitioner.                        
               2.  Nature, Extent, and Scope of Rogers' Work                          
               An employee's position, hours worked, duties performed, and            
          general importance to the success of a business may justify high            
          compensation.  Home Interiors & Gifts, Inc. v. Commissioner,                
          supra at 1158.  In this case, the history of Rogers'                        
          contributions to petitioner must be considered, rather than just            
          his contributions during the year at issue, because the                     
          compensation petitioner paid to him during the year at issue                
          represents, in part, an attempt to rectify prior                            
          undercompensation.  (See our discussion under factor 9, infra.)             
               At one time or another since its inception, Rogers has held            
          most of the management positions at petitioner.  He has                     





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