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Wysong Medical with additional equipment and services not
specified in the lease agreements. According to petitioners, the
lease agreements do not embody the entire agreement between the
two entities. In addition to the physical space, petitioners
contend that Wysong Medical's rent payments included a premium
for: access to or use of Wysong Corp.'s equipment and employees;
and costs incurred on behalf of Wysong Medical by Wysong Corp.
for phone systems, computer systems, freight expenses, printing
expenses, fitness equipment, kitchen facilities, and inventory
used by Wysong Medical in its research and development
activities.
Respondent argues that the lease agreements speak for
themselves. Alternatively, respondent argues that even if Wysong
Medical used additional space not reflected in the lease
agreements petitioners failed to establish that the rental rate
was reasonable. For example, petitioners failed to adduce
evidence which establishes when the Eastman Building's addition
was completed and hence the square footage of the Eastman
Building during the years in issue.
Respondent also attacks petitioners' second argument that
the parties to the lease agreements intended for the lease to
cover additional equipment and services. Among other things,
respondent argues that Wysong Medical had no business purpose for
the sale and leaseback of its equipment and that the transaction
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