Cristeen B. Comey - Page 31




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               The record also shows, however, that on December 1, 1975,              
          more than 2 years before Lumatron purportedly contracted to                 
          acquire Mr. Comey’s portfolio, the State of Illinois had                    
          administratively dissolved Lumatron for failure to file annual              
          reports and pay franchise taxes.                                            
               Illinois law provides that an administratively dissolved               
          corporation ceases to exist as of the date of dissolution.  The             
          dissolved corporation is not permitted to carry on any business,            
          except as necessary to wind up and liquidate its affairs.  See              
          805 Ill. Comp. Stat. Ann. 5/12-40(c) (West 2000); Regal Package             
          Liquor, Inc. v. J.R.D., Inc., 466 N.E.2d 409, 411 (Ill. App. Ct.            
          1984).                                                                      
               An administratively dissolved Illinois corporation may be              
          reinstated if certain statutory requirements are met.  Moreover,            
          under the “relation back” doctrine of Illinois law, once the                
          corporation has been reinstated its corporate existence is deemed           
          to have continued without interruption; all acts of its officers,           
          directors, and shareholders that would have been valid but for              
          the dissolution are ratified and confirmed.  See 805 Ill. Comp.             
          Stat. Ann. 5/12-45 (West 2000); Regal Package Liquor, Inc. v.               
          J.R.D., Inc., supra.                                                        
               Mr. Comey is now aware that Lumatron had been                          
          administratively dissolved in 1975 and was still dissolved when             
          it purportedly agreed to acquire his portfolio in 1978.  However,           





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