- 20 -
made contingent upon the sale to FABG of certain FABG stock owned
by Rod's wife Sally individually.
Decedent's Death
Decedent died on October 18, 1998, at the age of 96. On
November 15, 1998, pursuant to the 1995 FSA, the Rod Amlie Trust
exercised its call option to purchase all the FABG stock
remaining in decedent's estate after satisfaction of the bequests
of such stock to the Trust.
On November 17, 1998, the FABG stock at issue was sold to
FABG for $1,489,724.93, the price derived under the formula in
the 1997 Rod Amlie Family Agreement. Upon receiving the check
for this amount from FABG, Rod endorsed it as executor of
decedent's estate and had the proceeds segregated into a check
made payable to the estate for $993,756.96, the price for the
FABG stock under the formula set forth in the 1995 FSA,18 and a
second check for the balance of $495,967.97, which was eventually
remitted to the Rod Amlie Trust.
18 Because the sale of decedent's FABG stock occurred within
30 days of decedent's death (as required by the 1997 Rod Amlie
Family Agreement), it had not yet been determined what portion of
the stock would pass to the Rod Amlie Trust by bequest (versus
exercise of the put/call options), because the size of the
bequests was dependent upon the value of decedent's farm land at
her death. Consequently, the estate initially received all the
proceeds from the sale to FABG (at the $118 price), subject to a
distribution of a portion of those proceeds to the Rod Amlie
Trust reflecting the shares to which the Trust was entitled by
bequest.
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