Estate of Emanuel Trompeter, Deceased, Robin Carol Trompeter Gonzalez and Janet Ilene Trompeter Polachek - Page 9

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          were $3.3 million and $700,000, respectively.  In order to have             
          funds available to pay these liabilities, and to ensure                     
          performance of certain noncompetition agreements, the decedent              
          and Ms. Trompeter agreed to place their Sterling preferred stock            
          and certain Government bonds into an escrow account.  On                    
          March 17, 1989, the decedent and Ms. Trompeter transferred a                
          total of $4 million into an escrow account at City National Bank            
          (CNB).  Eleven days later, they transferred their Sterling                  
          preferred stock into the account.  The decedent's cash of                   
          $1,986,607 and his Sterling preferred stock were kept in a                  
          subaccount that CNB maintained solely for his benefit, and                  
          Ms. Trompeter's cash of $2,013,393 and her Sterling preferred               
          stock were kept in a separate subaccount at CNB that was                    
          maintained for her.  The escrow agent was required to pay any               
          claim that was submitted to the agent upon settlement of the                
          aforementioned liabilities.  Ms. Trompeter could withdraw certain           
          amounts of the cash from her subaccount before the agent paid the           
          liabilities, as could the decedent with respect to the cash in              
          his subaccount.                                                             
               In early 1993, settlement was reached regarding TEI's                  
          liability to CFTB.  On April 5, 1993, Ms. Gonzalez, on behalf of            
          the Trust, and Ms. Trompeter directed CNB to disburse funds from            
          the respective subaccounts to pay CFTB the amount of the                    
          settlement.  Ten days later, CNB paid $3,077,100 out of the                 





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