Investment Research Associates - Page 279




                                       - 344 -                                         
          identify when he assigned the interest to Holding Co. except to              
          say that it was "sometime in the 1970's."  He provided no written            
          assignment document, and no other witness corroborated his                   
          testimony.  He also could not remember whether Holding Co. paid              
          anything for the interest or how much it paid, if any.  Other                
          than Kanter's vague and uncorroborated testimony, the only                   
          evidence of a possible assignment is the fact that the payments              
          were in fact made to Holding Co. rather than Kanter.  The fact               
          that the payments were made to Holding Co. does not establish                
          that the underlying contractual right to the carried interest was            
          assigned by Kanter to Holding Co. but only establishes that                  
          payments were made to Holding Co. rather than to Kanter.   The               
          Agreement and Indemnification Agreement that was executed on July            
          26, 1984, recites that Kanter individually or his designee was               
          entitled to receive the carried interest payments.  If Kanter had            
          assigned the contractual right to the carried interest payments              
          to Holding Co. in the 1970's, that fact should have been                     
          acknowledged in the Agreement and Indemnification Agreement that             
          was executed in 1984, long after the purported assignment to                 
          Holding Co.  In addition, Kanter admitted that he controlled when            
          the carried interest payments would be made when he stated that              
          he would not always pay the amounts due at the time a gain was               
          realized as called for by the agreement but would sometimes delay            
          the payment.  Such control by Kanter is inconsistent with a valid            






Page:  Previous  334  335  336  337  338  339  340  341  342  343  344  345  346  347  348  349  350  351  352  353  Next

Last modified: May 25, 2011