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Q Did you have an agreement–-
A Well, an agreement as a written agreement? No,
sir.
Q Did you have an understanding, sir, that you
were entitled to compensation in 1991 and that you, as
PK Ventures, were going to defer that amount into the
next or subsequent years?
A I don’t believe I had an agreement. I knew I
wanted to be paid.
The lack of documentation in the corporate records of PK Ventures
and its subsidiaries and Rose’s testimony at trial significantly
undermine the inference that petitioners wish for us to draw from
these “going concern” notes. Consequently, we conclude that
these notes do not establish the existence of a deferred
compensation agreement between Rose and PK Ventures and its
subsidiaries during 1986 through 1991. After considering the
testimony and lack of evidence supporting petitioners’ position,
we conclude that no deferred compensation agreement existed
between Rose and PK Ventures and its subsidiaries during those
years.
As additional support for their argument that Rose was
insufficiently compensated for his services to PK Ventures and
its subsidiaries during 1986 through 1991, petitioners claim:
“Rose did not receive any compensation from Ventures and its
subsidiaries for 1986, 1987, and 1988. In 1989, Ventures paid
Rose $170,000, and in 1990, Rose was paid $50,068. In 1991,
Ventures paid Rose $140,469.” In sum, petitioners claim that
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