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Accordingly, taking into account the 50 units referenced in
Schedule A and the 50 units referenced in Schedule B, Sparkman
was allocated all 100 units of HEH certificates, as authorized by
the HEH formation document.5 The HEH formation document and
attachments thereto reflect no other contributions to HEH and the
issuance of no other certificates of HEH units.
The HEH formation document recites that upon completion of
these exchanges, the Creator “shall constitute and appoint a
suitable adult” as trustee, who may appoint additional trustees,
to constitute a Board of Trustees. The document recites that the
property of HEH will then be assigned to the Board of Trustees,
and the Creator will thereafter have “absolutely no further
obligation” to HEH. The document recites that the trustees will
have “exclusive management and control of * * * [HEH’s] property
and business affairs without any consent of Certificate holders”
and will have the authority to, among other things, distribute
“proceeds and income in their discretion, and according to the
5 With respect to the certificates, the HEH formation
document states:
For convenience the Certificates used for evidencing
right of distribution shall be divided into One Hundred
Units. They shall be non-assessable, non-taxable and
non-negotiable * * *.
Ownership of Certificates shall not entitle the holder
to any legal or equitable title in or to the * * *
[HEH] property, nor any undivided interest therein, nor
in the management thereof * * * .
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Last modified: May 25, 2011