Estate of Pearl I. Amlie, Deceased, Rodney B. Amlie, Executor - Page 10

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          assets11 worth a fair market value of $18.1 million by the time             
          the option was exercisable.                                                 
               The final merger agreement between Agri and FABG was                   
          executed on September 30, 1994.  Under the terms of the merger,             
          Agri's minority shareholders were offered the option to either              
          redeem their Agri common stock for book value ($53.55) or                   
          exchange their Agri common stock for FABG common stock at a ratio           
          reflecting the banks' respective book values (1.0 Agri share for            
          0.73597 share of FABG).                                                     
               In its submission to the Federal Reserve Board concerning              
          the merger, FABG disclosed its obligation pursuant to the 1991              
          Agreement to pay decedent the same per-share consideration for              
          her minority interest as that offered to Mr. Hill.                          
               The conservator exchanged decedent's Agri common stock at              
          the offered ratio for 6,657 shares of FABG common stock12 on                
          October 1, 1994, and negotiated an agreement (1994 Agreement) for           
          the postdeath sale of decedent's FABG stock to FABG for 1.25                
          times book value, or $118.23 per share plus 6 percent compounded            
          annually until decedent's date of death ($118 price).  The 1994             


               11 Qualified assets were defined generally as cash, notes              
          receivable, and other investment assets.                                    
               12 In connection with the merger, FABG also redeemed all               
          outstanding shares of Agri preferred stock (including decedent's)           
          for par plus unpaid dividends through the date of the merger.               
          The conservator deposited the proceeds from this preferred stock            
          redemption into segregated accounts.                                        





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