Estate of William G. Adams, Jr. Deceased, George W. Saenger, Executor - Page 9




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          litigation.4  Shriner did those things, and reasonably concluded            
          that it was unlikely that WSA would survive without Gelder.                 
          C.   Whether Shriner Properly Estimated Gelder’s Future                     
               Compensation                                                           
               Respondent contends that Shriner underestimated future net             
          cashflows by overestimating future compensation to Gelder.  On              
          the basis of Spiro’s testimony, respondent contends that Shriner            
          should have used $125,000 per year as Gelder’s future                       
          compensation.  We disagree.                                                 
               Gelder’s salary in 1995 was $381,465 and his salary and                
          dividends totaled $548,704.  Spiro acknowledged that Gelder was a           
          key employee, and that no one would buy WSA without Gelder.  We             
          do not believe that Gelder could have been replaced for $125,000            
          per year.                                                                   
               Respondent contends that WSA could have found a suitable               
          replacement for Gelder in 1995 and that Gelder had no attractive            
          employment alternative.  We disagree.  Slipher testified that it            
          was unlikely that anyone could assume Gelder’s responsibilities             
          because few people understood as well as did Gelder the market,             
          the industry, underwriting, and management as they affect WSA.              


               4  In his report, Spiro said:                                          
               Not having interviewed persons in authority at The                     
               Maryland in 1995, it is impossible to determine                        
               conclusively whether or not The Maryland would have                    
               cancelled or materially modified WSA’s personal lines                  
               underwriting authority upon the transfer of Mr. Adams’                 
               interest to another party.                                             




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