-325-
grants to the trustee broad powers with respect to making
investments on the trust's behalf.
At the time of the trust’s creation, Kanter, Federman, and
the trust’s beneficiaries orally agreed Kanter or Kanter’s
designee generally would have: (1) The right to receive payment
of an amount equal to 10 percent of any gains the trust realized
upon the sale or disposition of a trust investment, and (2) an
option to obtain from the trust a 10-percent portion of any trust
investment property upon payment to the trust of 10 percent of
the trust’s cost for that investment property. In the event the
foregoing option was exercised, the trust would distribute
in-kind to Kanter or Kanter’s designee a 10-percent portion of
that property. These payment obligations and option rights were
to last as long as the trust remained in existence. Pursuant to
the above arrangement between Kanter, Federman, and the trust’s
beneficiaries, during 1980 through 1983, Hi-Chicago Trust paid
THCthe following amounts on or about the dates indicated:
Date Payment
12/16/80 $80,000
8/11/81 33,925
10/23/81 8,795
10/13/82 119,247
2/18/83 50,000
3/15/83 22,224
5/11/83 6,199
9/14/83 1,227
9/14/83 29,749
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