Lincoln are defiantly holding out in their refusal to pay Torquay a fee for new signing Mustapha Carayol.
The 20-year-old winger is out of contract but due to being under 24 the Imps would usually be liable to pay a compensation fee to his former club.
However chief executive Dave Roberts believes this does not apply as Carayol did not come through Torquay's youth system, nor did they pay a fee to MK Dons to sign him.
Roberts told the Lincolnshire Echo: "We feel that there is no case for a fee as the player is out of contract."
He added: "That is our position and we have made that quite clear to Torquay.
"The onus is on Torquay now. We have agreed terms with the player and that is a done deal."
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