- 4 - Agreement. One of the limitations provided that until the full purchase price was paid, the buyers could not "declare or pay any dividends or make any distributions" relating to the stock without written permission of the sellers, the fathers. Scott, Brent, Robert, and Gary all were funeral directors at the time of the purchase. They were trained and taught the mortuary business at Russon Brothers. They qualified themselves to operate the mortuary business through schooling and while working at Russon Brothers. On December 23, 1985, Russon Brothers, as the Company, Scott, Brent, Robert, and Gary, as Buying Shareholders, and Milton, Leo and Dale, as Selling Shareholders, entered into a Stock Purchase Agreement. On December 23, 1985, Milton, Leo, Dale, Brent, and Gary were elected directors of Russon Brothers. The new directors then elected Robert as president, Brent as vice president, and Scott as secretary-treasurer of Russon Brothers. At the time the stock was purchased Milton and Leo retired from Russon Brothers. Dale continued as a full-time employee for a few months in order "to receive his maximum Social Security benefits allowable to him for retirement at age 62". Scott, Brent, Robert, and Gary purchased the Russon Brothers stock from their fathers so that they could manage, operate, conduct, and participate full time in the mortuary business and earn a living continuing a business started and developed by their fathers. Scott did not have a substantial investment motive when hePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011