Ghalardi Income Tax Education Foundation - Page 7

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                  ascertainable standard, except on a pro-                            
                  rata basis of the certificate holders.                              
                  THE TRUSTEES shall have power to distribute                         
                  principal and/or income to the certificate                          
                  holders, or to make decisions or distributions                      
                  of the trust estate in whole or in part, for                        
                  delivery or transfer to the certificate holders                     
                  of any part or any portion thereof, at such                         
                  valuation as is established by the trustees to                      
                  be the fair value of the part or portion, or                        
                  the trustees may convert the trust estate or                        
                  any portion thereof into cash and distribute                        
                  the net proceeds to the certificate holders.                        

                  According to Schedule B of the declaration of trust,                
             Ms. Girarde contributed the following personal property                  
             to the trust:  Tools, checking and savings accounts,                     
             furniture, fixtures, and others as per the inventory.                    
             There is no evidence, however, that Ms. Girarde contributed              
             any property to the trust in January 1991 or at any other                
             time.                                                                    
                  The declaration of trust purports to have been                      
             executed by two trustees, Ms. Judie Dew and Mr. Don                      
             Fredrickson.  Both individuals have personal relation-                   
             ships with Mr. Webber, and neither of them exercised any                 
             independent judgment or control with respect to Ghalardi                 
             or any of the assets allegedly held by or on behalf of                   
             Ghalardi.                                                                
                  On or about January 5, 1993, Mr. Webber opened a                    
             checking account at First Interstate Bank with an initial                





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Last modified: May 25, 2011