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price or prices, and the liquidations preferences of the
preferred shares. The record does not contain copies of any
resolutions by the board of directors of any of the three
corporations setting preferences or limitations on the preferred
stock.
Kanter was a beneficiary of a trust called the Morkan
Trust.33 On October 17, 1983, Kanter exercised a power of
appointment over the Morkan Trust to form the Christie and Orient
Trusts. Sharon Meyers was named as trustee of the Christie and
Orient Trusts. Members of Lisle's family were named as
beneficiaries of the Christie Trust, and members of Ballard's
family were named as beneficiaries of the Orient Trust.
In December 1983, IRA acquired 1,000 shares (100 percent) of
the common stock of each of Carlco, Inc. (Carlco), TMT, Inc.
(TMT), and BWK, Inc. (BWK). IRA paid $6,000 to each of the
corporations for the shares of stock. Also in December 1983,
Carlco, TMT, and BWK each issued 150 shares of preferred stock
for $1,500. Carlco preferred shares were issued to the Christie
Trust (Lisle's family trust); TMT preferred shares were issued to
the Orient Trust (Ballard's family trust); BWK preferred shares
were issued to the BK Children's Trust, the beneficiaries of
which were members of Kanter's family.
33
The Morkan Trust is named after Kanter's father, Morris
Kanter.
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