Charlotte's Office Boutique, Inc. - Page 10

                                        -10-                                          
               income and liability of contracts entered into by                      
               Charlotte Odell prior to January 1, 1995 to fulfill                    
               office supply orders.  Charlotte Odell agrees to                       
               transfer to the Charlotte’s Office Boutique her                        
               experience in obtaining governmental contracts.                        
               Charlotte Odell agrees to allow Charlotte’s Office                     
               Boutique, Inc. to use her status as a woman and                        
               majority stock holder to be classified as a “woman-                    
               owned business.”                                                       
                         3.  Payments                                                 
                    A.  As payment for the transfer of exclusive                      
               rights to receive Charlotte Odell’s know-how and                       
               existing contracts and the right to Charlotte Odell’s                  
               status as woman business owner, Charlotte’s Office                     
               Boutique, Inc. agrees to pay to Charlotte Odell a                      
               royalty fee of the larger of five per cent (5%) of the                 
               gross receipts for all office supplies sold under this                 
               Agreement or Two Hundred Dollars ($200.00) monthly.                    
                    B.  Estimated Royalties are due and payable                       
               monthly to Charlotte Odell, with a final accounting due                
               after final financial statements have been prepared for                
               the calendar year.  Any overage or shortage between                    
               estimated royalties paid and actual royalties will be                  
               netted first against the dividends distributed to                      
               Charlotte Odell during the calendar year and second as                 
               a payable or receivable of Charlotte’s Office Boutique,                
               Inc. owed to or due from Charlotte Odell.                              
               Petitioner made to Ms. Odell the payments referenced in the            
          employment agreement (but not always at the time referenced in              
          the agreement) and issued to her a 1996, 1997, and 1998 Form W-2,           
          Wage and Tax Statement, reporting that it had paid to her during            
          the respective years wages of $2,000, $4,800, and $4,800.                   
          Petitioner also during the relevant years paid to Ms. Odell                 
          royalties and rent as follows:                                              








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Last modified: May 25, 2011