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Under the plan, each participant is entitled to a maximum
reimbursement of $12,500 per year.
At a meeting of the directors held on January 4, 1994, the
board of directors of Wolf Creek Farm adopted the following
resolution:
RESOLVED that all officers and employees shall be
required to repay to the corporation any monies for
whatever source which may at any time be disallowed as
a proper expense expenditure by the Internal Revenue
Service within two (2) years at an interest rate of 3%
below the New York Prime Rate, of the final
determination of such matter.
In addition, at that meeting the directors adopted the following
resolution:
RESOLVED that the Corporation’s 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 of the
officers and employees shall be considered “on duty”
when at the worksite and therefore entitled to such
benefits.
C. Wolf Creek Farm’s Business
During the years at issue, Wolf Creek Farm leased the
homestead to Mr. Tschetter under a written agreement titled “Farm
Lease”, dated December 1, 1994 (the 1995 lease). The initial
term of the lease was for 1 year (to November 30, 1995);
thereafter, the lease continued year to year until otherwise
canceled. Under the lease agreement, Wolf Creek Farm was to
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Last modified: May 25, 2011