Estate of Robert L. Wagner, Deceased, Ruth R. Wagner, Personal Representative, and Ruth R. Wagner, et al. - Page 16

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          shareholders were aware that EDS was seeking new investors for              
          the TTS.  In the counterclaim, EDS alleges that, on or about                
          January 16, 1991, RTA interfered with an advantageous business              
          relationship between EDS and one Charles White.  A memorandum               
          attached to the counterclaim from “Bob Wagner, Resources                    
          Technology Associates, Inc.” to “Mr. Charles White” mentions the            
          lawsuit and claims an interest in, among other things, the TTS              
          equipment.  On November 6, 1991, EDS entered into a contract to             
          sell the TTS equipment for $3 million ($750,000 before delivery)            
          to a company of which Mr. White was the controlling shareholder             
          (Asset Holding Co., which assigned its rights to Tire Recyclers             
          Inc.).  Petitioners have failed to prove that, as of the end of             
          1991, there was no realistic possibility of an actual recovery              
          from EDS or its guarantors.                                                 
               D.  Subjective Belief                                                  
               We have taken into account the testimony of the two                    
          shareholders who testified:  Walter W. Manley II, and Richard T.            
          Wagner.  It is clear that, at some point, both of those                     
          shareholders lost confidence in the TTS investment.  Mr. Manley             
          testified about his refusal in late 1990 or early 1991 to post              
          the necessary $50,000 bond following the successful effort to               
          persuade a court to issue an injunction:  “Because at that                  
          particular time, I was the person providing the money, and I had            
          determined considerably before then that it was a worthless                 
          project, and * * * I wasn’t about to put good money after bad               




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