- 7 - In 1987, shareholder Lowell Sucherman (Sucherman) left CSB. Under the 1973 agreement, CSB owed Sucherman $233,698 for his share of CSB's retained earnings when he left the firm plus the amount he paid for his stock. CSB offset what it owed Sucherman under the 1973 agreement by the costs it advanced on cases that he took with him and paid him $185,000 (about $46 per share). Sucherman agreed to pay CSB 25 percent of the net fees he recovered on any of the cases he took with him. D. The 1988 Amendment Providing Payment for Decedent's Interest in CSB Upon His Death The shareholders amended the 1973 agreement on January 4, 1988. The 1988 amendment applied only to decedent. Decedent's interest in CSB consisted of stock and claims to fees earned on cases he brought to CSB. Under the 1973 agreement, CSB would have owed a large amount to decedent's estate because decedent had brought more than one-half of the pending cases to CSB when he died. Decedent wanted to amend the 1973 agreement in 1988 to provide enough funds to maintain his widow's standard of living and to make it easier for CSB to survive his departure. Under the 1988 amendment, CSB bought two life insurance policies on decedent's life from Prudential Insurance Co. of America (Prudential). Each policy paid a $2,500,000 death benefit. CSB paid monthly premiums of $10,000 to $11,000 for the two policies. CSB owned and was the beneficiary under thePage: 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