- 6 - from the board of directors.6 Furthermore, the agreement provided that TSI would not exercise its right of first refusal as to the transfer of petitioner's stock interest to Gilbert. The second transaction was an agreement entered into between petitioner and Gilbert. The agreement provided for the transfer of petitioner's 295 shares in TSI to Gilbert; however, the purchase price was to be determined at a later date. To this end the agreement provided, in relevant part: Whereas the value to the stock cannot be fully ascertained at this time, It is agreed that: 1. Any proceeds from the sale of the stock by Alton L. Gilbert to a third party will, upon receipt, be delivered to Robert L. McWilliams, his heirs, or assigns; * * * Petitioner's relationship with Gilbert became estranged. In early 1988, Gilbert took a leave of absence from petitioner's group to sort things out. On March 8, 1988, Gilbert returned to the group and executed a document purporting to transfer back to petitioner 29,500 shares (the 295 shares had split 100 to 1) of TSI stock. The document was signed by Gilbert, it was notarized, and witnessed. However, this time, TSI elected to exercise its right of first refusal. Consequently, a stock purchase agreement dated May 2, 1988 (the Agreement), was entered into among petitioner, Gilbert, and Robbins as president of TSI and on behalf of TSI.7 The Agreement provided that in exchange for the 29,500 shares of TSI stock, TSI would transfer to petitioner title to the 2.546-acres of real 6 Petitioner objects to this finding of fact. He asserts that the consideration for transfer of the TSI stock was a janitorial service contract with TFC. Petitioner directs the Court to Joint Exhibits 32-AF and 33-AG in support thereof. However, we find no reference in these exhibits to the stock transfer or to the consideration involved. 7 Gilbert did not participate in the agreement on behalf of TSI, because he was considered an interested party. He did participate in his individual capacity.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011