- 10 - Funds Received Relating To Amount Outstanding Stock $16,750,000 Covenant Not to Compete 5,000,000 Petitioner’s Taxes 2,589,759 Total $24,339,759 Also, upon closing of the LBO on August 25, 1989, under separate agreements that were referred to as bonus and noncompetition agreements, a total of $1.25 million was paid to Panzica, Battistella, and Navarra. As stated, in years prior to the LBO, these individuals generally had been underpaid by petitioner for their services to petitioner, and an understanding existed between Cruze and these individuals that, if Cruze ever sold his stock in petitioner, an effort would be made to pay these individuals additional compensation for their prior services rendered to petitioner. Accordingly, in the negotiations with JC Investors, Cruze emphasized that he wanted a total of $1.25 million to be paid to Panzica, Battistella, and Navarra in recognition for their services in prior years. In the negotiations, however, JC Investors was hesitant to pay the employees $1.25 million. Cruze then offered to have $1.25 million reduced from the $18 million that tentatively had been agreed to be paid to him by JC Investors if this $1.25 million would be paid to Panzica, Battistella, and Navarra for their services in prior years. Petitioner and JC Investors agreed to this reduction and, as indicated, under the final agreement thatPage: 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