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corporation will perform all its obligations as a partner in the
Firm." In the foregoing assignment by Mr. Souris of his
partnership interest to his P.C., Mr. Souris in fact guaranteed
"to the Firm that Theodore Souris, P.C. will perform all its
obligations as a partner in the Firm."
On August 27, 1981, Mr. Souris entered into an employment
agreement with his P.C. He was to be paid a salary of a fixed
amount plus a bonus in an amount "determined by the Corporation's
Board" to make his total compensation "equal to the reasonable
value of his services." The "Corporation's Board", as indicated
above, was none other than Mr. Souris himself. The agreement
provided further that the P.C. would adopt a pension plan and a
profit sharing plan for the "Employee" as well as make provision
for his health and disability insurance and "such other fringe
benefits as the Board shall approve." The agreement was signed
for the P.C. by Mr. Souris as president and by Mr. Souris acting
on his own behalf as the employee.
On September 1, 1981, the corporation adopted the Theodore
Souris, P.C. Pension Plan and Trust. The plan was a defined
benefit plan. As stipulated by the parties, it was "duly
qualified under the applicable provisions of the Internal Revenue
Code." Mr. Souris was the sole plan participant.
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Last modified: May 25, 2011