ÿWPC^ …# VU:a %› 0(¡w@É4  0l, 0D˜ Ü 0Jâ , 4 0T: 0^Ž 0hì 0rT 0|Æ 0†B 0È 1uX 0dÍ B1U *NU>xB)¶ D3ßDC AMU 0@¢ûâÝ|ìv~hvÓæ AO¹Æ 0DÎ D/ BA˜HP LaserJet 4 PlusHPPCL5MS,ð,,,,,ð0nLhÒ,c½¬AZ‹"Arial RegularX($¡¡ -.E/0Ê2D3456Ê7Ó€Úƒç"3|xB((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  ÚóóÈ2 ÿÿ0Indent1Ô2ÔÔ3  ÔH2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ d< Œ 9p`(Arial< Œ 9p`(&Times New Roman% Line 7 d 'ÿÿdxd))))7Border 1dd€-+Cþÿ << Gÿÿ("ÿÿ$££Ò  ÒÒ  Ò ñÝ ƒ!ÝÑ#€d#ÑÔ€'ÔÝ  ÝÔ€'ÔÓ  ÓÔ YYY ÔFILEDÔ€'XÔÌÌò òDecember€10,€1997ÌÌCecil€Crowson,€Jr.ÌÔ€'ôÔAppellate€Court€Clerkó ó Ý ƒ!ÝÑ#€d#ÑÔ€'ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€'ôÔHe€already€owned€900€sharesÔ€'XÔ.Ò ½ ÒÒ ° ÒÔ€'ôÔÌ rÝ ƒ!ÝÑ#€d#ÑÔ€'ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝÔ€'ôÔSSIððs€agrument€that€Heil€is€entitled€to€only€900€shares€is€frustrating,€since€Crossley€agreed,€byÏà àletter€written€to€Heil€òòafteróó€he€was€terminated,€to€issue€him€an€additional€360€shares.ÌPtPtHHÚ(ÿáÿâùFG(üHHØ(d'`Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  ion-F Geneva ÒÒ  ion-F Geneva Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€'ÔÝ  ÝÒ  ÒÒ „ ÒÓ  ÓÔ€'¼Ôò òÔ€(Ô›œÑ7€úûXdædÈ7ÑÑ  ÑÑ\R AØ'\ÑÙ€€ÙßR€,.+A1-j| ` Å `€€@ÿRßÞ ÞÌIN›€THE€COURT€OF€APPEALS€OF€TENNESSEEÌÌEASTERN€SECTION€AT€KNOXVILLEÌÓ  ÓÌÌÌó óSOUTHEASTERN€STRUCTURES,€INC.,à à)Ìà àà àà àà àà àà àà à)à àÌà àPlaintiff/Appellantà àà àà àà à)à àKNOX€CHANCERYÌv.à àà àà àà àà àà àà à)Ìà àà àà àà àà àà àà à)à àNO.€03A01„9708„CH„00334ÌARTHUR€H.€HEIL,€JR.,à àà àà àà à)Ìà àà àà àà àà àà àà à)à àHON.€H.€DAVID€CATE,Ìà àà àà àà àà àà àà à)à àCHANCELLORÌà àDefendant/Appelleeà àà àà à)Ìà àà àà àà àà àà àà à)à àMODIFIED€andÌà àà àà àà àà àà àà à)à àAFFIRMEDÌÌÌBarry€W.€Eubanks,€Knoxville,€for€Appellant.ÌJohn€O.€Threadgill,€Knoxville,€for€Appellee.ò òÌÌòòà@ àO€P€I€N€I€O€NÌÌó óóóà àà àà àà àà àà àà àà àINMAN,€Senior€Judgeò òÌó óÌÓÓà àThe€plaintiff,€Southeastern€Structures,€Inc.[ð ðSSIðð],€sought€a€declaratoryÏjudgment€on€June€14,€1991€to€determine€if€its€former€employee,€Arthur€H.ÏHeil,€Jr.€[ð ðHeilðð],€was€contractual€or€at„will€and€whether€he€was€entitled€toÏpurchase€additional€shares€of€the€plaintiff€corporation€or€otherwise€entitled€toÏbenefits€resulting€from€his€termination€on€November€5,€1990€and€whether€heÏshould€be€held€liable€for€damages€to€the€plaintiff€for€his€negligence€in€theÏmatter€of€plaintiffððs€bid€on€the€Farragut€Town€Hall.Ìà àHeil€agreed€that€a€declaratory€judgment€was€proper€to€determine€theÏstock€controversy,€but€he€denied€liability€for€the€loss€of€the€contract€on€theÏFarragut€Town€Hall€project.€€He€counterclaimed€for€salary€and€benefitsÏthrough€January€27,€1992€because€he€was€œallegedly€wrongfully›€terminated,Ïœand€that›€he€was€entitled€to€purchase€an€additional€540€shares€of€SSI€which,€inÏturn,€should€be€required€to€repurchase€œall€of€his›€shares€pursuant€to€theÏcontract.œ× ƒ/ ××  ×›Ìà àThe€Chancellor€found:ÌÓÓ1.à0 àThe€Option€Agreement€and€Letter€Amendment€was€an€employmentÏcontract€for€a€definite€annual€term;ÌÌ2.à0 àHeilððs€inattention€to€duty€relative€to€the€Andy€Johnson€building€and€theÏfailure€to€follow€orders€by€obtaining€and€studying€the€Farragut€TownÏHall€plans€and€specifications€prior€to€the€bid€were€sufficient€to€justifyÏhis€termination;ÌÌ3.à0 àHeil€was€not€liable€for€the€loss€of€the€Farragut€Town€Hall€project;ÌÌ4.à0 àHeil€was€entitled€to€receive€an€additional€360€shares€of€common€stock€inÏSSI,€the€issuance€of€which€had€been€deferred€by€agreement;ÌÌ5.à0 àSSI€was€required€to€repurchase€all€of€the€shares€owned€by€Heil€(1,260)Ïat€$81.49,€for€a€total€purchase€price€of€$102,677.40;ÌÌ6.à0 àHeil€was€awarded€pre„judgment€interest€to€accrue€on€the€total€purchaseÏprice€of€the€stock€at€the€rate€of€10%€per€annum€from€December€5,€1990Ïuntil€payment;€andÌÌ7.à0 àCosts€were€to€be€taxed€one„half€to€SSI€and€one„half€to€Heil.€€Ìœà àÌà àSSI›€presents€the€following€issues€for€review:ÌÌI.à0 àDid€the€Chancery€Court€err€in€awarding€an€additional€360€shares€of€SSIÏcommon€stock€to€Heil?ÌÌII.à0 àDid€the€Chancery€Court€err€in€valuing€the€shares€of€SSI€common€stockÏheld€by€Heil€at€$81.49€instead€of€$78.05€as€determined€by€theÏaccounting€œfirm›€for€SSI?ÌÌIII.à0 àDid€the€Chancery€Court€err€in€awarding€pre„judgment€interest?ÌÌIV.à0 àDid€the€Chancery€Court€err€in€finding€that€Heil€was€not€liable€to€SSI€forÏthe€loss€of€the€Farragut€Town€Hall€project?ÌÌà àœHeil›€presents€the€following€issue€for€review:ÌÌI.à0 àWhether€the€Chancery€Court€erred€in€finding€that€Heil€was€terminatedÏfrom€his€employment€for€cause€and€in€failing€to€award€damages€for€theÏwrongful€termination?ÌÌœII.›à0 àWhether€the€Chancery€Court€erred€in€awarding€Heil€simple€interest€onÏthe€judgment€rather€than€compound€interest€as€contemplated€under€theÏcontract?ÌÌÓÓà àSSI€hired€Heil€as€a€Construction€Superintendent€on€November€24,€1981,Ïand€he€began€work€on€January€2,€1982.€€His€duties,€weekly€salary€and€benefitsÏwere€confirmed€by€letter€dated€November€24,€1981.€€Ìà àOn€September€1,€1983,€Heil€wrote€a€letter€to€Hogue€Crossley,€PresidentÏof€SSI,€requesting€that€he€be€given€the€position€of€Vice„President€and€aÏpercentage€of€future€gains€and€profits€of€the€company.Ìà àCrossley€and€Heil€conferred€shortly€after€the€letter€was€delivered.€ÏCrossley€told€Heil€that€he€would€not€ð ðgiveðð€him€any€portion€of€the€company,Ïexplaining€that€the€company€had€been€operating€on€the€capital€which€he€andÍhis€wife€had€saved€over€a€number€of€years.€€Crossley€was€willing€for€Heil€toÏbecome€a€stockholder€œin›€the€company€if€he€was€willing€to€risk€his€own€capital.€ÏThe€agreement€reached€between€them€was€that€Heil€would€be€allowed€toÏpurchase€20€percent€of€the€company€over€a€period€of€eight€years,€but€only€ifÏhe€remained€with€SSI.€€If€he€left€SSI€voluntarily€or€œinvoluntarily,›€he€would€beÏrequired€to€sell€the€stock€he€had€purchased€back€to€the€company.€€Each€year,ÏHeil€was€to€use€his€bonus€money€and€$5,000.00€of€œother›€earnings€to€buy€stockÏin€the€company.Ìà àThese€discussions€resulted€in€an€Option€Agreement€for€the€Purchase€ofÏStock€dated€January€27,€1984,€which€provides€that€it€terminates€upon€HeilÏð ðceasing€to€be€an€employee€of€Southeastern€Structures,€Inc.,€for€any€reason.ðð€ÏFurther,€the€Option€Agreement€provides€that€Heil€must€sell€his€stock€back€toÏthe€company€upon€ð ðHeil€for€any€reason€ceasing€to€be€an€employee€of€theÏcompany,ðð€and€that€the€purchase€price€of€Heilððs€shares€of€stock€shall€be€œÌdetermined›€as€follows:ÌÓ  ÓÓÓà8 àThe€price€to€be€paid€to€the€company€for€any€shares€purchased€byÏHeil€under€this€Agreement,€and€the€price€to€be€paid€to€Heil€forÏany€shares€repurchased€by€the€company€under€this€agreementÏshall€be€an€amount€equivalent€to€the€book€value€of€the€shares€asÏdetermined€by€the€accountant€regularly€œemployed›€by€SoutheasternÏStructures,€Inc.,€as€of€the€end€of€the€fiscal€year€preceding€the€yearÏin€which€the€option€is€exercised.€€The€book€value€shall€beÏcalculated€by€establishing€the€net€worth€of€the€corporation€andÏdividing€that€net€worth€by€the€number€of€outstanding€shares€priorÏto€the€issue€of€the€new€shares€of€stock€being€purchased€by€HeilÍduring€that€year.€€Book€value€as€determined€by€said€accountantÏshall€be€conclusive€and€binding€on€both€parties€hereto.ÌÓ  ÓÌÓÓà àHeil€did€not€use€all€of€his€bonuses€to€purchase€stock€and€did€not€investÏhis€other€earnings€in€the€stock.€€Consequently,€he€did€not€accumulate€stock€inÏthe€company€as€rapidly€as€the€parties€had€originally€expected.€€By€1987,€itÏappeared€that€the€option€period€would€expire€before€Heil€was€able€to€purchaseÏ20€percent€of€the€œcompany,€and€he›€became€dissatisfied€with€the€OptionÏAgreement.Ìà àHeil€expressed€his€dissatisfaction€to€Crossley,€stating€that€he€did€notÏbelieve€he€was€being€treated€fairly.€€Crossley€then€asked€for€Heilððs€writtenÏresignation,€which€he€submitted.€Heil€later€asked€Crossley€to€reconsider€hisÏresignation€and€to€consider€another€stock€ownership€plan.Ìà àCrossley€agreed€to€amend€the€Option€Agreement€if€Heil€would€allowÏpayroll€deductions€on€a€weekly€basis€to€pay€the€taxes€on€the€stock€to€beÏdistributed€each€year,€and€if€Heil€would€actually€accept€the€stock€and€pay€theÏtaxes€when€due.Ìà àThe€result€of€these€discussions€was€a€letter€agreement€dated€SeptemberÏ30,€1987,€which€purports€to€be€an€amendment€to€the€Stock€PurchaseÏAgreement€dated€January€27,€1984.€€In€this€œagreement,€SSI›€agreed€to€issue€180Ïshares€of€stock€as€part€of€Heilððs€annual€compensation.€€The€agreement€also€œÌpledged›€a€ð ðminimumðð€salary€and€bonus€for€the€next€five€years€to€addressÏHeilððs€concern€that€he€would€have€sufficient€income€to€pay€the€taxes€on€theÏstock.Ìà àœHeil›€refused€to€accept€stock€in€1989€and€1990,€because€he€did€not€wantÏto€pay€the€taxes€on€the€stock.€€He€also€did€not€allow€SSI€to€withhold€taxesÏduring€the€year€so€that€the€œtaxes›€on€the€stock€would€be€paid€by€year„end.Ìà àHeil€continued€in€his€employment€with€SSI€as€Vice„President.€€His€dutiesÏevolved€beyond€those€of€a€construction€superintendent€as€the€œcompany›Ïexpanded,€and€eventually€they€included€the€œreview›€of€plans€and€specificationsÏand€assisting€with€all€of€the€bids€for€projects€made€by€SSI.Ìà àIn€1990,€œSSI›€and€Heil€œagain€began›€experiencing€problems.€€In€earlyÏ1990,€SSI€contracted€with€Andy€Johnson€to€build€a€warehouse€on€a€cost„plusÏbasis.€€Heil€was€in€charge€of€this€project.€€Johnson€testified€that€severalÏmistakes€were€made€on€this€job€which€were€costly;€e.g.,€an€area€near€the€dockÏlevel€had€to€be€filled€twice€because€of€mistakes.€€When€the€concrete€floor€wasÏfinally€œpoured€in›€the€building,€numerous€cracks€and€settlement€in€the€concreteÏfloor€developed,€owing€to€poor€compaction.€€In€addition,€the€floor€soundsÏhollow€underneath€because€the€ground€has€settled€under€the€concrete.€AÏsubcontractor€was€supposed€to€install€the€roof€system,€including€the€angleÏirons€on€the€roof.€€SSI,€however,€had€already€purchased€and€installed€the€angleÏirons.€€Johnson€was€therefore€charged€twice€for€these€angle€irons.€€In€addition,ÍSSI€installed€the€angle€irons€in€the€wrong€places,€and€the€subcontractor€had€toÏremove€the€angle€irons€and€reinstall€them.€€The€workmanship€where€the€roofÏjoins€with€the€wall€is€unaesthetic.€Other€problems€developed,€unnecessary€toÏbe€recited€here.€€Crossley€testified€that€he€cautioned€Heil€that€clients€should€notÏbe€treated€in€ððthis€mannerððand€that€Heilððs€attitude€was€cavalier.Ìà àWith€respect€to€the€Farragut€Town€Hall€project,€SSI€was€not€awardedÏthe€contract€even€though€its€bid€was€the€lowest€submitted.€€The€ownerÏdiscovered€two€glaring€clerical€errors€in€SSIððs€bid€and€disqualified€SSI.€ÏCrossley€attributed€these€errors€to€Heil,€who€was€responsible€for€theÏpreparation€of€the€bid.€€Heil€denied€negligence€and€attributed€the€mistakesÏelsewhere.Ìà àCrossley€decided€on€August€31,€1990€to€fire€Heil€because€of€theseÏproblems€and€went€to€a€construction€site€to€talk€to€him.€€According€toÏCrossley,€Heil€came€as€close€as€he€had€ever€come€to€apologizing€for€hisÏactions.€€ð ðHe€said,€Hogue,€you€were€right.€€It€wonððt€happen€again,€so€I€decidedÏnot€to€fire€him€at€that€time.ððÌà àCrossley€testified€that€he€decided€to€determine€for€himself€whether€theÏFarragut€Town€Hall€project€was€an€isolated€incident€of€poor€judgment€orÏwhether€it€was€a€result€of€an€œððattitude›€œproblem,ðð›€since€he€had€been€havingÏproblems€with€Heil€for€the€last€18€months.Ìà àHe€testified€that€he€reflected€upon€the€types€of€problems€he€had€withÏHeil€in€the€past,€that€he€and€Heil€seemed€to€be€always€at€odds,€that€he€had€toÏovercome€Heilððs€objections€to€get€things€accomplished,€and€that€HeilððsÏapproach€to€the€owners€was€short„sighted€and€abusive.Ìà àCrossley€concluded€that€he€could€no€longer€work€with€Heil€and€couldÏnot€trust€him€to€do€what€he€was€told€to€do€and€consequently€fired€him.Ìà àAt€the€time€of€Heilððs€termination,€he€owned€900€shares€of€SSI€stock.€ÏHeil€asked€for€an€additional€360€shares€on€November€5,€1990,€which€were€theÏshares€Heil€had€rejected€in€January€of€1989€and€January€of€1990.€€SSI€agreedÏby€letter€dated€November€19,€1990€to€œissue›€the€additional€360€shares,€bringingÏHeilððs€ownership€to€1,260€shares,€retroactive€to€January€1990,€as€originallyÏÑ  Ñanticipated.× ƒ0 ××  ×€€SSI€also€informed€Heil€in€this€letter€that€it€would€repurchase€allÏof€these€shares€as€required€by€the€Option€Agreement.€Ìà àThe€accountants,€McWilliams€&€Company,€had€calculated€the€bookÏvalue€of€the€stock€at€$78.05€per€share,€based€on€the€stock€issue€beingÏretroactive€to€January€1990,€and€Heil€agreed€this€calculation€was€correct.€€TheÏtotal€value€of€Heilððs€shares€was€calculated€at€$98,343.00.€€SSI€elected€to€payÏthe€purchase€price€in€installments€as€provided€in€the€Agreement.€€The€OptionÏAgreement€specifies€that€the€book€value€of€the€stock€as€determined€by€SSIððsÍaccountants€ð ðshall€be€conclusive€and€binding€on€both€parties.ððÌò òà@ àIÌó óà àOur€review€of€the€findings€of€fact€made€by€the€trial€court€isòò€de€novoóóÏupon€the€record€of€the€trial€court,€accompanied€by€a€presumption€of€theÏcorrectness€of€the€finding,€unless€the€preponderance€of€the€evidence€isÏotherwise.òò€€Tenn.€R.€App.€P.,€Rule€13óó(d).Ìò òà@ àIIÌó óà àIt€is€conceded€that€Heil€was€a€contractual€employee.€€Consequently,€hisÏemployment€could€be€terminated€only€for€cause.€€The€Chancellor€found€thatÏgood€cause€was€proved€to€justify€Heilððs€discharge.€€We€cannot€find€that€theÏevidence€preponderates€against€this€finding.Ìò òà@ àIIIÌó óà àThe€Chancellor€found€that€Heil€was€not€liable€for€the€loss€of€theÏFarragut€Town€Hall€project.€€SSI€strenuously€insists€that€this€finding€isÏcontrary€to€the€preponderance€of€the€evidence,€which€indicates€that€the€jobÏwas€lost€because€of€Heilððs€negligence€in€clerical€details.€€The€issue€is€close,€butÏwe€cannot€find€that€the€evidence€preponderates€against€the€finding€of€theÏChancellor;€superimposed€is€the€arguable€conclusion€that€this€issue€was€raisedÏin€hindsight€to€strengthen€the€complaint.Ìò òà@ àIVÌó óà àWe€are€uncertain€of€the€exact€thrust€of€SSIððs€argument€that€Heil€wasÍawarded€360€shares€to€which€he€was€not€entitled,€notwithstanding€the€essentialÏconcession€of€Crossley€to€the€contrary.€€We€concur€in€the€Chancellorððs€findingÏthat€Heil€owned€1,260€shares.€€On€the€face€of€it,€we€agree€that€as€of€the€dateÏHeil€was€terminated€he€owned€only€900€œshares,›€having€elected€to€defer€theÏpurchase€of€180€shares€in€1989€and€180€shares€in€1990.€€But€by€letter€writtenÏafter€the€termination,€Crossley€agreed€to€the€issuance€of€these€œdeferred›€shares.Ìò òà@ àVÌó óà àThe€Chancellor€found€that€SSI€should€repurchase€the€1,260€shares€forÏ$81.49€per€share.€€SSI€argues€that€the€per„share€value€was€$78.05.€€TheÏdifference€arises€out€of€a€provision€in€the€Option€Agreement€that€the€bookÏvalue€of€the€shares€will€be€ð ðcalculated€by€determining€the€net€worth€of€theÏcorportion€and€dividing€the€net€worth€by€the€number€of€outstanding€sharesÏprior€to€the€issuance€of€new€shares€being€purchased€by€Heil€that€year.ðð€€HeilÏdeferred€any€stock€purchases€in€1989€and€1990,€as€we€have€seen.€€TheÏChancellor€took€this€fact€into€consideration€in€his€findings.€€We€cannot€say€thatÏthe€œevidence€otherwise›€œpreponderates.›Ìò òà@ àVIÌó óà àThe€obligation€of€SSI€to€repurchase€Heilððs€shares€in€the€event€he€ceasesÏto€be€an€employee€is€not€disputed.€€The€contract€requires€SSI€to€pay€tenÏpercent€Ñ  Ñinterest€on€any€unpaid€amount€owing€to€Heil.€€We€reproduce€theÏpertinent€provision:ÌÓ  ÓÓÓà8 à5.à àòòRIGHT€OF€COMPANY€TO€REPURCHASE:óó€A.€€Upon€theÏdeath€of€Heil€or€upon€Heil€for€any€reason€ceasing€to€be€anÏemployee€of€the€company,€Heil€or€his€personal€representative,€asÏthe€case€may€be,€shall€sell€and€the€company€shall€purchase€all€ofÏthe€shares€of€stock€in€the€company€owned€by€Heil€at€the€time€ofÏhis€death€or€at€the€date€Heil€ceases€being€an€employee€of€theÏcompany,€at€a€purchase€price€to€be€established€by€a€method€as€setÏforth€in€paragraph€3€hereof.€€The€company€shall€have€the€right€toÏpay€the€œpurchase›€price€in€cash,€or€at€its€option,€the€purchase€priceÏshall€be€paid€in€Five€(5)€equal€annual€installments€of€twentyÏ(20%)€percent€of€the€œpurchase›€price€each:€the€first€installment€toÏbe€paid€in€cash€on€the€closing€date.€The€œunpaid›€balance€of€theÏœpurchase›€price€shall€be€evidenced€by€a€promissory€note€in€theÏprincipal€amount€of€the€balance€of€the€œpurchase›€price€bearingÏinterest€at€that€rate€of€ten€(10%)€per€annum,€due€in€three€annualÏinstallments€on€each€consecutive€anniversary€of€the€closing€date.€ÏSuch€note€shall€provide€for€acceleration€of€maturity€upon€defaultÏin€the€payment€of€any€such€installment€and€shall€provide€forÏprepayment€at€any€time;€interest€shall€cease€on€the€day€ofÏprepayament.ò ò€€ó óThe€closing€for€the€œpurchase›€of€Heilððs€shares€shallÏtake€place€within€œthirty›€(30)€days€from€the€date€of€death€of€HeilÏor€from€the€date€œhis›€employment€by€the€company€ends.ÌÌÓ  ÓÓÓà àSSI€complains€of€the€award€of€interest€from€30€days€after€theÏtermination€of€Heil,€arguing€that€it€offered€to€repurchase€Heilððs€shares€(900)Ïsoon€after€he€was€terminated,€and€since€Heil€insisted€that€he€was€entitled€toÏpurchase€1,800€shares,€which€SSI€was€obligated€to€repurchase,€the€rights€ofÏthe€parties€should€be€adjudicated€as€of€œNovember,€1990,›€rather€than€sevenÏyears€later.€€Heil€admits€that€SSI€offered€to€purchase€his€900€shares€œbut›€arguesÏthat€the€offer€was€conditional€upon€his€releasing€SSI€from€all€claims€arisingÏout€of€his€contract€and€employment€with€them.€€This€argument€is€meritoriousÏto€an€extent,€œòòSee,›€Johnson€v.€Midland€Bank€&€Trust€Co.,óó€715€S.W.2d€607Í(Tenn.€App.€1986),€but€we€think€the€reasons€why€Heil€declined€the€offer€inÏ1990€should€be€scrutinized€to€avoid€an€unwarranted€windfall€to€him.Ìà àHeil€declined€to€execute€a€release€and€thereby€settle€this€matter€becauseÏhe€œclaimed›€damages€for€an€alleged€wrongful€discharge€and€claimed€entitlementÏto€1,800€shares.€€It€developed€that€he€was€not€entitled€to€this€relief.€€The€offerÏof€SSI€involved€only€900€shares,€and€except€for€the€award€of€Heil€of€1,260Ïshares,€the€judgment€is€similar€to€the€offer.Ìà àThe€shares€paid€no€dividends,€but€Heil€will€realize€a€substantial€capitalÏgain€in€any€event.€€He€argues€that€œSSI›€could€have€tendered€payment€for€theÏ900€shares€in€1990€and€litigated€the€issue€of€additional€shares.€€We€agree.€€SSIÏapparently€took€the€calculated€risk,€kept€its€money,€and€offers€no€legallyÏcognizable€reason€why€it€should€not€be€onerated€with€interest€except€as€notedÏhereafter.Ìà àAs€we€have€seen,€Heil€elected€not€to€exercise€his€right€to€purchase€sharesÏin€1989€and€1990,€and€by€agreement€the€œpurchase›€was€deferred.€€But€theÏinterest€award€treats€these€360€œshares›€as€having€been€purchased,€or€issued,€toÏHeil€in€a€timely€manner.€€Since€Heil€requested€a€deferral,€we€think€he€shouldÏnot€be€entitled€to€interest€on€the€value€of€360€shares,€or€$29,336.40,€and€theÏjudgment€will€be€accordingly€modified.€€œÌà àThe€appellee€insists€that€he€is€entitled€to€compound,€pre„judgmentÏinterest,€as€contrasted€to€simple€interest€allowed€by€the€Chancellor€pursuant€toÍT.C.A.€ðð€47„14„123.€€Pre„judgment€interest€is€not€awarded€as€a€matter€ofÏright,€and€its€allowance€is€discretionary€with€the€Court.€€Appellate€review€isÏlimited€to€a€determination€of€whether€the€Court€abused€its€discretion.€€òòB.€F.ÏMyers€&€Son€v.€Evans,óó€612€S.W.2d€912€(Tenn.€App.€1981Ô% € Ô).€€The€statute€hasÏbeen€construed€by€the€Supreme€Court€in€òòOtis€v.€Cambridge€Mutual€Fire€Ins.ÏCo.,€óó850€S.W.2d€439€(Tenn.€1992)€as€authorizing€an€award€of€simple€interestÏonly.€€Compound€interest€is,€consequently,€not€appropriate.Ìà àAs›€modified,€the€judgment€is€affirmed,€with€costs€assessed€75€percent€toÏthe€appellant€and€25€percent€to€the€œappellee.›ÌÓӜ̛à àà àà àà àà àà àà à___________________________Ìà àà àà àà àà àà àà àWilliam€H.€Inman,€Senior€JudgeÌÌœCONCUR:›ÌÌÌÌ__________________________________ÌHouston€M.€Goddard,€Presiding€JudgeÌÌœÌ__________________________________Ô% € ÔÌCharles›€D.€Susano,€Jr.,€Judgeò òÌó ó