- 5 -
repaid by the officer or employee to the Corporation
within Twenty-four (24) months of the final
determination by the Internal Revenue Service with
interest at Three (3%) below the New York Prime Rate on
the date of final determination.
A similar repayment obligation was set forth in a resolution
adopted by the board of directors of Hillside Dairy at the
directors’ first meeting, held on January 10, 1993. At that
meeting, the directors also adopted the following resolution:
RESOLVED that the corporation [sic] officers and
employees shall be required to live at the worksite of
the corporation to ensure security for the corporation
property and operations. The officers and employees
shall be required to live on the worksite to supervise
the care and feeding of the livestock of the
corporation. The corporation shall supply said
officers and employees all of their food and lodging
while living at said worksite. That all officers and
employees shall be considered on duty when at the
worksite and therefore entitled to such benefits.
In addition, at their first meeting, the directors adopted a
medical reimbursement plan covering all “employees and officers
executing management responsibilities” and their spouses and
dependents. The medical reimbursement plan provides for the
payment of all medical expenses “deductible on Form 1040”,
including expenses for drugs, doctor, hospital, and eyeglasses,
to the extent not compensated by insurance or otherwise. Under
the plan, each participant is entitled to a maximum reimbursement
of $10,000 per year. Hillside Dairy also paid the premiums on a
health insurance policy covering the Schmidts and their children.
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