Harold E. Stone became chairman of the board of directors of American Lacquer Solvents Co. ( hereafter referred to as American) on December 7, 1967. On that date, American's board of derectors adopted a resolution that upon Stone's death, his wife, Rachel, would be paid an $8,000 annual pension by American until her death or remarriage. Teh resolution was adopted in consideration for services to be rendered to American by Stone, and it further provided that it could not be revoked without his consent.
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