Carol M. Read, et al. - Page 37




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          representative in transferring her MMP stock to MMP, and that Ms.           
          Read was acting in the interest of Mr. Read in making that                  
          transfer to MMP,26 in that she was following and implementing Mr.           

               25(...continued)                                                       
          reached an oral agreement referred to herein as the marital                 
          settlement agreement.  The Florida court ratified and approved              
          that agreement in the divorce judgment and ordered Ms. Read and             
          Mr. Read to comply with the terms of that agreement.  The marital           
          settlement agreement provided in pertinent part:                            
               Wife [Ms. Read] agrees to convey to husband [Mr. Read]                 
               all of her stock in Mulberry Motor Parts, both voting                  
               and non-voting.  And for such stock, husband, or at his                
               option, Mulberry Motor Parts or the Aesop [sic] plan of                
               Mulberry Motor Parts agrees to purchase such stock at                  
               its appraised value * * *.                                             
          Thus, the marital settlement agreement required (1) Ms. Read to             
          transfer her MMP stock to Mr. Read and (2) Mr. Read to pay Ms.              
          Read a specified amount of consideration for that stock.  That              
          agreement also gave Mr. Read, and only Mr. Read, the option of              
          deciding that MMP or MMP’s ESOP, instead of him, pay that consid-           
          eration to Ms. Read.                                                        
               26It has been suggested that Ms. Read’s transfer of her MMP            
          stock to MMP was in the interest of Ms. Read, and not in the                
          interest of Mr. Read, in that Ms. Read wanted or preferred to               
          have MMP, rather than Mr. Read, purchase her stock because in               
          that event she would have received from MMP cash and MMP’s note             
          that was guaranteed by Mr. Read, rather than merely cash and a              
          note from Mr. Read.  Such a suggestion assumes that the financial           
          condition of MMP was better than the financial condition of Mr.             
          Read at the time of Ms. Read’s February 5, 1986 transfer of MMP             
          stock and that Ms. Read wanted or preferred to have MMP, rather             
          than Mr. Read, purchase her MMP stock.  The record does not                 
          support either of those assumptions.  In fact, we infer from the            
          record that Mr. Read’s financial condition at the time of Ms.               
          Read’s February 5, 1986 transfer of MMP stock was better than the           
          financial condition of MMP.  That is because under the divorce              
          judgment the note that Mr. Read was obligated to transfer to Ms.            
          Read (along with a stated amount of cash) in order to pay her for           
          her MMP stock was not required to be guaranteed by MMP.  We also            
          infer from the record that Ms. Read did not want or prefer that             
                                                             (continued...)           





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