Baye v. Airlite Plastics Co.

FACTUAL AND PROCEDURAL BACKGROUND

In 1987, Gertrude Crosby and Robert F. Crosby (the Crosbys) entered into a written stock option agreement (Agreement) with John L. Baye and Opal A. Baye (the Bayes). The Agreement provided, inter alia, that Robert would have the option to purchase 380 shares of common stock of Airlite Plastics Co. (Airlite) and that Gertrude would have the option to purchase 1,139 shares of Airlite stock. The price for the stock was set at $330 per share. As consideration, the Crosbys agreed to make an annual payment to the Bayes of $20,000. Contemporaneously, the Crosbys and…