- 42 -
2.5 Advancement. Prior to the time of execution
[of this Appointment], my daughter, Tamma T. Hatten,
* * * severed her financial ties with the True
companies, and thus her potential inheritance has been
fully satisfied during my lifetime.
There is no current expectation by Tamma Hatten, her mother, or
her brothers, that Jean True or any other member of the True
family will make any further financial provision for Tamma or her
family.17
E. Use of Similar Buy-Sell Agreements in All True
Companies Except White Stallion; Amendments and Waivers
The buy-sell agreements (and related amendments) used by the
True family were substantially identical, except for White
Stallion. In general, the partnership buy-sell agreements
mirrored True Oil’s partnership agreement, and the corporate buy-
sell agreements mirrored Belle Fourche’s Stockholders’
Restrictive Agreement. The buy-sell agreements were not tailored
to the specific type of business or industry in which each True
company operated, and they all shared the following attributes:
(1) Transfer restrictions, (2) mandatory purchase and sale
requirements, (3) book value purchase price formulas derived
using the company’s customary accounting methods (tax basis), and
(4) active participation (by owner or spouse) requirements.
17The only exception is the True Family Education Trust,
created by Dave and Jean True in 1983 (before Tamma Hatten’s
withdrawal) for the benefit of all the True children’s
descendants. Dave and Jean True contributed to this trust, which
is irrevocable, after their daughter’s withdrawal. Therefore,
Tamma Hatten’s descendants have continued to derive financial
benefits from this trust.
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