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1992. On June 18, 1993, petitioner tendered his resignation as a
director.
On December 16, 1996, petitioners filed a lawsuit (lawsuit)
in the Superior Court of California for the County of San
Franciso. The lawsuit alleged that Pacific Bank had breached the
employment agreement by, inter alia, failing to transfer title of
the Crown life policy to Ms. Eckersley, as provided for in the
employment agreement. On September 2, 1999, petitioners and
Pacific Bank entered into a Settlement Agreement and Release
(settlement agreement). The settlement agreement stated that
Pacific Bank would pay petitioners $265,563 on January 5, 2000;
$675,645 within 5 business days of the dismissal of the case; and
$6,250 per month for 20 years, beginning on September 1, 1999.
The amounts payable were calculated as follows: $340,000 as to a
severance pay dispute; $500,000 as to the Crown life policy;
$845,000 as the net present value of the monthly payments due for
20 years; and $101,208 to settle amounts previously due, totaling
$1,786,504. With regard to the Crown life policy, the settlement
agreement stated that the $500,000 was payable “for confirmation
of TPB’s [Pacific Bank’s] full rights to the Crown Life Policy
No. 2432415 insuring the life of Norman C. Eckersley to settle
the dispute regarding the ownership of the Policy and the net
surrender values in the Policy.”
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Last modified: November 10, 2007