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Mr. Gampel’s final step in valuing the stock bonuses was to
apply a second level (at the WVI level) of minority interest and
lack of marketability discounts. Mr. Gampel believed that for the
February 16, 1989, stock issuance, a 20-percent minority interest
discount and a 30-percent lack of marketability discount were
appropriate. For the February 15, 1990, stock issuance, Mr. Gampel
believed that a 30-percent minority interest discount and a 30-
percent lack of marketability discount were appropriate. In
determining the extent of the minority interest discount, Mr.
Gampel considered the following factors: (1) The size of the stock
issuance (800 and 400 shares), which represents only a minority
interest in WVI; (2) the existence of the VTA at both valuation
dates; (3) a lack of “swing vote” characteristics in each stock
issuance; (4) a lack of “special purchasers” in the marketplace;
(5) WVI’s historical reluctance to distribute dividends; (6) the
terms of the buy-sale agreement and other restrictions on the
transferability of WVI’s stock; (7) the lack of recent sales of
similar interests in WVI; and (8) the existence of the ongoing
litigation. In determining the marketability discount, Mr. Gampel
reviewed a number of empirical studies that were performed in an
effort to quantify average levels of discounts for lack of
marketability in the marketplace and considered the following
factors: (1) The lack of an organized market for the
purchasing/selling of interests; (2) lack of sales of similar
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