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because of the CSB firm name or which were brought by
an associate.
7. Twenty-five percent of the net amount received during
the 3 years after the shareholder’s death from business
clients who the deceased shareholder brought to CSB.
8. One-half of the proceeds of life insurance bought by
CSB on the life of the deceased shareholder to apply
towards the amounts listed in 1.-7., above.
Article IV of the 1973 agreement provides for the buyout
of the interest of a shareholder who dies, retires, becomes
disabled, or is expelled. The 1973 agreement grants a lien
to the deceased shareholder's widow for the amount of the
percentages listed in the 1973 agreement of fees earned on cases
for which the deceased shareholder was entitled to be paid.
Shareholder H. Greig Fowler (Fowler) left CSB in August
1984. Under the 1973 agreement, CSB owed Fowler $31,794 for his
share of CSB's retained earnings when he left the firm plus the
amount he paid for his stock. CSB and Fowler agreed in October
1986 that CSB would pay him $25,000 for his stock ($25 per share)
and for any claims he had against CSB arising out of his
employment by CSB. Fowler agreed to reimburse CSB for any client
costs it advanced and to pay CSB 25 percent of the net fees he
recovered on any case he took with him.
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Last modified: May 25, 2011