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$76,000, and the remaining 60 percent, $114,000, went to Machise.
Machise's receipt of 60 percent of the cash put up by the
investors was one of its incentives to participate in the deal.
MIT 82 Employee Leasing Agreement
The employee leasing agreement of MIT 82 and Machise,
prepared by Fred, was dated as of January 1, 1982. Like the MIT
80 employee leasing agreement, the MIT 82 agreement provided that
MIT 82 would furnish all the employees and independent
contractors needed by Machise to conduct its business for the
1982 calendar year. It stated that Machise would provide the
partnership with estimates of the number of employees or
contractors Machise would need to carry on its business. It
further stated that the partnership would provide Machise with
the employees, independent contractors, and equipment, plus
antecedent biographical information about the workers. It again
provided that the partnership would have the right to control and
direct the employees and that the partnership would "instruct
each individual as to his work hours and nature of his duties."
As to the contractors, the partnership again retained "the
exclusive right to determine the contractor to be used" in
Machise's business.
Unlike the MIT 80 arrangement, the MIT 82 employee leasing
agreement specifically required MIT 82 to advance the lesser of
its invested capital or $3 million to Machise. As of
December 31, 1982, the books of MIT 82 showed that it had
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