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October 1994 to grant Brown-Forman worldwide distribution rights.
In addition to dealing with the distribution of Korbel’s
products, the agreement grants to Brown-Forman a right of first
refusal with respect to offers of Korbel’s stock by family
members. In that respect, the agreement provides:
RIGHT OF FIRST REFUSAL. In the event any member
of the Heck family desires to sell his or her shares of
stock in KORBEL to a person who is not a lineal
descendant of ADOLF L. HECK, he or she shall notify
BROWN-FORMAN, in writing, giving the name of the
prospective purchaser, a copy of the offer to purchase,
the number of shares and the price per share. BROWN-
FORMAN shall have thirty (30) days from receipt of such
notice to elect to purchase and pay for the said stock
at the price stated for cash. If BROWN-FORMAN does not
purchase such stock within said 30 day period, it may
be sold to the stated person at the stated price
without any further obligation to BROWN-FORMAN, meaning
that BROWN-FORMAN shall not have any further right to
purchase any of the KORBEL stock sold. If KORBEL has a
prospective purchaser for 50% or more of KORBEL stock
who is not a lineal descendant of ADOLF L. HECK and
BROWN-FORMAN does not exercise its prior right to
purchase said stock, then BROWN-FORMAN shall have no
further first right of refusal to buy that stock of
KORBEL at any time. * * *
Financial Performance
From 1985 through 1994, Korbel’s sales and net income were
as follows:
Year Revenues Net Income
1986 $76,955,000 $17,527,000
1987 85,582,000 25,317,000
1988 86,920,000 20,177,000
1989 79,294,000 12,728,000
1990 78,646,000 11,961,000
1991 75,677,000 7,735,000
1992 77,551,000 6,720,000
1993 78,569,000 7,179,000
1994 82,758,000 11,955,000
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Last modified: May 25, 2011