Estate of George C. Blount, Deceased, Fred B. Aftergut, Executor - Page 63

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          BCC’s annual contributions to the ESOP (which he elsewhere                  
          accounted for as a deduction against earnings to be capitalized)            
          would be insufficient to satisfy some or all of the ESOP                    
          repurchase obligation.  Indeed, Mr. Truono testified that the               
          ESOP repurchase obligation had never exceeded $100,000 in any               
               In sum, Mr. Fodor’s failure to address the foregoing issues            
          leaves us unpersuaded of his claim that BCC’s annual ESOP                   
          repurchase obligation requires a $750,000 downward adjustment to            
          either the income- or asset-based valuation methods he chose.33             
          Instead, we are persuaded that, under the facts presented here,             
          Mr. Hitchner was correct in his position that any ESOP repurchase           
          obligation did not warrant the adjustments of the sort Mr. Fodor            
               Because Mr. Fodor’s $750,000 adjustment led to a dollar-for-           
          dollar decrease in both his income- and asset-based values, the             
          adjustment led to a dollar-for-dollar decrease in his final                 
          blended estimate of BCC’s value.  Correcting Mr. Fodor’s                    
          treatment of the ESOP repurchase obligation to remove the                   

               33 Because of these shortcomings in Mr. Fodor’s analysis of            
          the need for an adjustment to account for an ESOP repurchase                
          obligation, we do not reach the separate question of whether Mr.            
          Fodor’s report may rely upon the 1997 BVS appraisal’s $750,000              
          figure without qualifying that appraisal as expert testimony.               

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