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SETTLEMENT DATE IS DATE OF SIGNING MEMORIALIZING
DOCUMENT, ANTICIPATED TO BE COMPLETE NOT LATER THAN
5/16/97.
However, contrary to the agreement, Mr. Dunne did not escrow
his FRC stock certificates at that time. The settlement
agreement also provided that all disputes were to be resolved by
arbitration.
Soon after they executed the settlement agreement, Mr. Dunne
and Mr. Marcus began disputing its provisions. On October 7,
1997, Mr. Dunne, Mr. Marcus, and FRC executed an agreement to
arbitrate these disputes.
Mr. Dunne’s Relationship With FRC
FRC paid Mr. Dunne and Mr. Marcus equal dividends each month
from January through April of 1997, totaling between $20,000 and
$26,000 for each. FRC paid these dividends so that Mr. Dunne and
Mr. Marcus could satisfy their income tax liabilities.
In September of 1997, Mr. Dunne sent several letters and
reports regarding FRC to FRC’s bank, listing his titles as
“Director, Officer, Co-Owner of FRC, Int’l.” An officer of the
bank replied with correspondence acknowledging Mr. Dunne’s
titles.
On October 6, 1997, the bank’s attorney sent Mr. Dunne a
letter stating that the bank was aware of Mr. Dunne’s agreement
to sell his interest in FRC and of the dispute between Mr. Dunne
and Mr. Marcus. Because the bank did not know what authority Mr.
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Last modified: March 27, 2008