Estate of Pearl I. Amlie, Deceased, Rodney B. Amlie, Executor - Page 35

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          negotiations in an effort to avoid the expense to decedent of               
          future litigation with FABG over the price to be paid for                   
          decedent's shares as enhanced by the Hill Rights.26  These                  
          negotiations produced the 1995 FSA, under which decedent's stock            
          effectively would be sold to the Rod Amlie Family at her death              
          for the same price as FABG had offered in the 1994 Agreement (the           
          $118 price), and the Rod Amlie Family would pursue whatever price           
          it could obtain for the stock from FABG, at the Family's risk and           
          expense.                                                                    
               We are persuaded that the conservator, in securing the 1995            
          FSA, was seeking to exercise prudent management of decedent's               
          assets by mitigating the very salient risks of holding a minority           
          interest in a closely held bank, consistent with the                        

               26 We agree with the conservator's view that decedent and/or           
          her estate faced significant litigation hazards in this regard.             
          We believe FABG possessed leverage on the basis of the 1991                 
          Agreement provision under which decedent was required to sell her           
          minority stake to any purchaser of the controlling stake if the             
          purchaser conditioned his purchase of the controlling stake on              
          his acquisition of decedent's shares.  Also, an official of FABG            
          testified in the proceedings concerning approval of the 1994                
          Agreement that if the 1994 Agreement were rejected, FABG would              
          take the position that it was entitled, as Agri's successor, to             
          purchase decedent's stock pursuant to the call option in the 1991           
          Agreement for book value.  (This call option was exercisable at             
          decedent's death, and decedent was 92 at the time of the                    
          proceedings concerning the 1994 Agreement.)  Finally, further               
          negotiations and/or litigation with FABG jeopardized the                    
          conservator's goal of avoiding capital gains taxes on the sale of           
          decedent's FABG stock.  See supra note 25.                                  
               In addition, we are persuaded that the value of the Hill               
          Rights was especially uncertain, in light of the FACC option, the           
          value of which was the subject of conflicting expert testimony in           
          the district court proceedings concerning approval of the 1994              
          Agreement.                                                                  




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