- 9 -
Dr. Vaughan. No bonuses are payable. Each is to engage in the
practice of medicine on behalf of, and exclusively for,
petitioner, in furtherance of its best interests. Petitioner is
to furnish each with an office, stenographic help, supplies,
equipment and other facilities and services adequate for the
performance of duty. At the conclusion of the 2-year employment
period, each has the option to purchase shares in the corporation
at a price based on accounts receivables and the fair market
value of petitioner’s assets.
Each of the nonshareholder employment agreements has a
noncompete clause: With respect to Dr. Snyder, for an 8-year
period beginning on the effective date of his employment, if his
employment terminated for any reason other than death or
disability, and if he continues either the practice of medicine,
or to have hospital privileges, in Tarrant County, Texas, he is
obligated to pay petitioner $6,000 a month until 96 months have
passed. Dr. Vaughan is similarly restricted, except the term of
his restriction is 3 years, and the monthly penalty is $8,000.
For 1994, Dr. Snyder received a salary of $72,000, and, for
1995, Dr. Vaughan received a salary of $76,061. Petitioner
incurred expenses in connection with the employment of the
nonshareholder surgeons during the audit year.
The nonshareholder surgeons had no significant duties with
respect to the administration of petitioner.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011