Estate of H.A. True, Jr. - Page 16




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          lack of negotiations among the parties.  Tamma Hatten did not               
          seek separate legal or other professional counsel in connection             
          with the sale.  Instead, she relied on Dave True and his advisers           
          to determine the sales price under the buy-sell agreements and to           
          structure the methods of payment.  Accordingly, Dave True’s                 
          advisers drafted an agreement outlining the terms of sale and set           
          up an escrow account for Tamma Hatten to receive roughly half of            
          the sales proceeds.  The escrow arrangement, which departed from            
          the requirements of the buy-sell agreements, was meant to reserve           
          assets to pay Tamma’s share of contingent liabilities and to                
          provide a management vehicle for her investments.  Finally, Tamma           
          Hatten was required (effectively) to pay the other owners in                
          order to sell her interests in certain profitable companies that            
          had negative book values at the buy-sell valuation date.                    
               As previously discussed, Tamma Hatten, once she gave notice            
          that she and her husband would no longer be active participants,            
          was bound to sell her interests in the True companies pursuant to           
          the terms of the buy-sell agreements.  However, it is likely that           
          an unrelated party in similar circumstances would have hired                
          separate counsel to interpret the buy-sell agreement terms,                 
          review the sales agreements, and question the reasonableness of             
          being required to pay (i.e., take an offset against sales                   
          proceeds) to sell interests in profitable companies.  In                    
          addition, an unrelated seller would want to hire her own                    







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Last modified: May 25, 2011