- 4 - plus an amount equal to any accumulated but unpaid dividends. The option price for the common shares was $100 a share. The 1960 redemption agreement provided for yearly revaluations of the option price for common shares. Joseph A. Simone Joseph A. Simone (Simone) went to work for the company in 1975. He had just graduated from college, and his first job with the company was that of office boy. Simone continued his education after starting work with the company, earning an MBA from Fordham University in 1979. Also by 1979, Simone was involved in every facet of the company’s operations. Subsequently, he became an officer of the company. Simone was elected to the board of directors of the company in 1984 or 1985. Simone and decedent developed a close personal relationship. Decedent loaned Simone money ($80,000 in 1981 and $95,000 in a later year). Decedent named Simone a beneficiary in wills executed by decedent between 1985 and 1987. The 1987 Redemption Agreements In 1987, decedent entered into an agreement restricting his rights (and the rights of the executors of his estate) to dispose of his shares of stock in the company (the 1987 redemption agreement). At that time, the stock of the company was held by decedent, Poesch, and Simone as follows:1 1 The company issued the 6-percent preferred shares sometime (continued...)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