LB&M Associates, Inc., Rudy J. Alvarado, Tax Matters Person - Page 2

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               LB&M Associates, Inc. (LB&M), an S corporation, had its                
          principal place of business in Lawton, Oklahoma, at the time the            
          respective petitions in these cases were filed.  The record in              
          these cases establishes and/or the parties do not dispute the               
          following.                                                                  
               During 1990, except for Rudy J. Alvarado (Mr. Alvarado) who            
          became a shareholder of LB&M during that year when he purchased             
          10 percent of its stock, all of the shareholders of LB&M (selling           
          LB&M shareholders), including James E. Ferguson, John P. Purcell,           
          Jr., Bloomer Don Sullivan, Steve Doerfel, Anthony Pokorny, and              
          Howard Rubin (participating shareholders), sold LB&M a portion of           
          their LB&M stock (1990 stock sale) in return for which LB&M                 
          issued a promissory note to each such shareholder (promissory               
          note).  As a result of Mr. Alvarado's purchase and the selling              
          LB&M shareholders' sales of LB&M stock, Mr. Alvarado became a 51-           
          percent owner of the stock of LB&M.                                         
               LB&M and each of the selling LB&M shareholders treated the             
          promissory note issued to each such shareholder in the 1990 stock           
          sale as reflecting an indebtedness of LB&M to that shareholder              
          (alleged LB&M liability).  Each of the selling LB&M shareholders            
          treated the alleged LB&M liability to each such shareholder as an           
          increase in such shareholder's (1) basis in the indebtedness of             
          LB&M to such shareholder and (2) combined basis (basis in LB&M)             
          in (a) such indebtedness and (b) the LB&M stock held by such                
          shareholder.                                                                




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