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33.Stockman became CEO in August 2003 and continued to direct the rebate scheme.  In the third quarter of 2003, Stockman was personally involved in negotiating a $1.56 million rebate agreement with Exxon Mobil Corp. ("Exxon").  Stockman met with Exxon representatives as part of the negotiations, was regularly briefed on the status of the negotiations, and knew the terms of the final rebate agreement.  As finalized, the supply contract with Exxon provided that the $1.56 million rebate was not due until the next quarter (Q4 2003), was contingent on purchases by C&A in that next quarter, and was to be partially refunded if C&A did not make additional purchases the following year.  Nevertheless, C&A improperly recognized the entire $1.56 million in income in the third quarter of 2003.  Stockman knew, or was reckless in not knowing, that it was improper to immediately recognize rebates that were contingent on future purchases and that accounting for the Exxon rebate in this way improperly inflated C&A’s income.   

34.  In late 2003 Stockman instructed C&A's Purchasing Department to obtain a $1 million rebate from Flambeau Corporation ("Flambeau") by promising future business.  Cosgrove advised Stepp and C&A purchasing officials on how to prepare a side letter to justify immediate recognition of the potential rebate.  This letter was false or misleading in that it stated that the Flambeau rebate was for past purchases.  C&A nevertheless improperly recognized the anticipated $1 million Flambeau rebate in the third quarter of 2003.  Cosgrove and Stepp, like Stockman, knew, or were reckless in not knowing, that this immediate recognition was improper and designed to inflate C&A’s income.  

35.Similarly, in December 2003 C&A persuaded Reko International Group, Inc. ("Reko") to provide a $250,000 rebate in exchange for a guarantee of future

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