- 4 -
purchase decedent’s common stock in Brookshire was triggered only
if decedent’s estate exercised the option to sell the stock, and
Brookshire’s purchase obligation was limited to the number of
shares that (under the same book-value-based formula as set forth
in the buy-sell agreements) would reflect a total purchase price
of no more than $7,844,233. This amount corresponded with the
total amount of life insurance that Brookshire carried on the
life of decedent.
The purpose of the stock-purchase agreement was to ensure
that decedent’s estate would have funds available to pay Federal
estate and State inheritance taxes relating to the Brookshire
common stock owned by decedent’s estate.
Under similar stock-purchase agreements entered into with a
number of other members of the Brookshire family, Brookshire also
was obligated, upon their death, to purchase from their estates
the number of shares of Brookshire common stock that corresponded
to the amount of life insurance Brookshire carried on their
respective lives.
On the date of decedent’s death, in addition to a chain of
grocery stores, Brookshire owned the following: (1) Two food and
merchandise distribution centers that supplied approximately 80
percent of the products sold in Brookshire stores; (2) two bakery
plants; (3) a milk processing plant; and (4) a photo processing
center.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011