Estate of Mary D. Maggos - Page 24

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          testamentary plan.17  Mr. Hite testified that decedent “had                 
          promised to leave him [Nikita Maggos] the shares when she                   
          died.”18  The conclusion that the redemption transaction was part           
          of an estate plan is corroborated by the fact that as part of the           
          redemption transaction plan, Nikita Maggos’ and PCAB’s attorneys            

               17Mr. Hite testified:                                                  
               Q    And did Mrs. Maggos ever ask you to negotiate with                
               anyone --                                                              
               A    No.                                                               
               Q    -- about the price?                                               
               A    No.  She said, “This is what we want to do; this                  
               is what we’re going to do.”                                            
               Q    Did you have an understanding of why she did not                  
               ask you to negotiate?                                                  
               A    Well, she was--I knew of the relationship with her                
               son, and that she was eventually going to give him this                
               stock upon her death, and she and he had worked out a price            
               that she was satisfied with, and I just felt that I wasn’t             
               being asked to question what they had already determined,              
               and I was just to protect her interests, in making sure she            
               got what she had bargained for.                                        
               Q    So you thought she had negotiated the price before                
               she got there?                                                         
               A    I did.                                                            
               Q    Was Mrs. Maggos present during all of your                        
               discussions with Mr. Helm and Mr. Bezman?                              
               A    She was.                                                          
               Q    Did she ask any questions?                                        
               A    Not that I recall.  I remember explaining to her                  
               that this -- this idea of a freeze was a legitimate                    
               transaction, and that it would stop the value of her asset             
               from going any higher, and that the current -- it would                
               remain at the current value that it -- that they placed on             
               Q    Did Mrs. Maggos seem pleased with the price?                      
               A    She did.                                                          
               18Mr. Hite testified:                                                  
                    Q.   Okay.  And this redemption was part of--came                 
               to be a central part of Mary's overall estate plan?                    
                    A.   That's correct.                                              

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Last modified: May 25, 2011