Tracy P. Streber, F.K.A. Tracy C. Parker, et al. - Page 26

                                       - 26 -                                         
          believe that Bradish carried out what he testified were his                 
          instructions from Parker:  “My instructions were to take title to           
          the property, for the girls, and Parker was not to get his hands            
          on their money as it came down the pike.  That was what the                 
          instructions were to me.”                                                   
                    b.  Management Agreement                                          
               The management agreement gave Parker certain rights with               
          respect to the $2 million notes.  The daughters argue that the              
          management agreement indicates that Parker had dominion and                 
          control over the $2 million notes and, thus, had never completed            
          a gift to the daughters.  We disagree.  In fact, the management             
          agreement signifies to us that Parker had not retained dominion             
          and control over the $2 million notes.  If he had, he would not             
          have needed the management agreement.  We accept Parker's                   
          explanation that the management agreement resulted from his                 
          divorce from Betty and from his concern that the daughters would            
          be persuaded to sell the notes for inadequate consideration.                
                    c.  Related Agreement                                             
               The related agreement put the $2 million notes at risk for             
          Parker's interest obligation under that agreement.  The daughters           
          argue that such risk shows that Parker controlled the $2 million            
          notes.  We disagree.  Clearly, the daughters bore some risk of              
          Parker's default.  Theoretically, Parker's default could have               
          eliminated all of their equity in the $2 million notes, because             
          the related agreement contained a five-fold penalty clause                  

Page:  Previous  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  Next

Last modified: May 25, 2011