- 10 - provide in his Last Will and Testament that all of his stock, both common and preferred, of said corporations shall be bequeathed to Cyril Magnin, as trustee for the benefit of Cyril Magnin, Ellen Magnin Newman, Donald Magnin and Jerry Magnin, and that Cyril Magnin, as said trustee, shall have the sole right to vote said stock for the term of his life as provided in said Last Will and Testament[.] Consistent with these premises, the terms of the Agreement provided that Joseph agreed to bequeath his JM and Specialty stock to Cyril as sole trustee for Cyril's life as already provided in his will, which provision he agreed not to revoke. Cyril agreed to will in trust all his JM and Specialty stock "now owned or hereafter acquired" to a bank trustee for the benefit of his three children. The Agreement also provided that the terms and conditions on the part of Cyril were to be secured by a deposit in pledge with Bank of California, N.A. (the Bank), as pledgeholder of the stock belonging to Cyril; that as long as Cyril performed the terms and conditions of the Agreement, the voting rights would vest in him, but in the event of default, the voting rights would vest in the pledgeholder. Cyril agreed not to transfer, assign, or encumber any of his stock in the corporations, except that he could give stock to his children. The Agreement provided that at no time should the issued and outstanding stock of the corporations belonging to persons other than Joseph, Cyril, or his three children exceed 49 percent, except in the event of a sale of the entire capital stock of the corporations. Moreover, any otherPage: 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