Free Motion for Summary Judgment - District Court of Federal Claims - federal

Case 1:06-cv-00407-ECH
r

Document 106-6

Filed 07/02/2008

Page 1 of 24

\

08/21/20Ol

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lO:_l

FAX

_001

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The Heritage Organization,
Suite 800, East Tower 5001 Spring Valley Road Dallas, Texas 75244-3942 972-991-4411 ° 1-800-331-9999

L.L.C.

· Fax: 972-991-3325

Fax Cover Sheet Privileged Information To Be Read Only By The Person To Whom It Is Addressed
Please deliver immediately to: From: Briar} Czerwinsld Confirmation call requested: _ Yes _ No JaJme Mendez

At telephone #: Regarding: Date: , '_ RES and RSS

_-21-01

Total pages (including cover sheet):

2

Fax number called: _(314) 612-7815 If all pages are not received or any are illegible, or if a confirrn_on c_ is requested, please call 1-8OO-272-9829 and ask for:. Bnan Comments:

Confidentiality Notice This facslrm'_transmission (and/orthe documents accompanying contains confidential [l) Informat_on belongingto the sender. The infon'naS0n intended only for the use of the is individual or entity namedabove. If you am not the intended recipient,you am hereby notifiedthat anydisclosure, opying,dl'stdbution r thetaking of anyactionin relianceon the c o
contents of this i_ormatlon ts stdcf_ prohl'bitod. H you have received this tra.nm'nission in error, please Immediately notify us by tetephone to arrange for the return of the documents.

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 2 of 24

Iv.4 T_:ot afl£ iOO_lT_lso
ZO0_

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Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 3 of 24

i e4 a '' 08/21/2001 _ 10:21 FAX _001

0

The Heritage

Organization,

L.L.C.

Suite 800, East Tower 5001 Spring Valley Road Dallas, Texas 75244-3942 972-991-4411 · 1-800-331-9999 · Fax: 972-991-3325

Fax Cover Sheet Privileged Information To Be Read Only By The Person To Whom It Is Addressed
Please deliver immediately to: From: Brian C-zerwinski At telephone #: Regarding: Date:
i

Jpime Mer_lez

Confirmationcall requested: __

Yes

__ No

P, S and RSS E Total pages (including cover sheet): (314) 612-7815 2

8-21-01

Fax number called:

j

If all pages are not received or any are meglble, or if a c_nfirrnafionc_ is requested, please call 1-8OO-272-9829and ask for:. Bnan Comments:

Confidentiality Notice Th_s facsa_letransrrussJon (and/orthedocumentsaccompanying) contains _ confidential intormationelonging1othe sender. Their_orrn_ion intendedonly for Ihe use of the b is individual entitynamedabove. IJyou am not the intendedrecipient,you am hereby or notified thatanydisclosure, copying, dLslribution orthetaldngof anyactionm rellancen the o
contenls _ tl'u_ information is strictly prohiblJed. If you have recelv_d this I_n in error, please im_mtely notify us by lelephone to arrange to( the return of the documents.

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f

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c

EXHIBI'r

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!

I

SANDS

11236

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 4 of 24

'_

SANDS 11237

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 5 of 24

12/28/2001

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19:28

FA][

I_]002

D Date of Event

IMPLEMENTATION

Li_ T FOR

SANDS

FAMILY

Formal:Ion of I_argln Accou ¢s and Short Sale Execution 08121/01 1 Margin account opened by Rich andSan_Ls at PalneWebber. Funds of $ 240,000 PW Margin AccL Cash # TXItFL 08121101 2 ; Rape TX4_p'='L Funded on 12-6-O1

Margin account opened by Rob_.,rtSands at PalneWebber. Funds of $ 285,000 PW Margin Acct. Cash # TXqI_ BrFL ; Rape _L. Funded on 12-6-01 Margin account opened by Marl yn Sands st PaineWebber. Funds of $195,000 PW Marg|n Acct. Cash # _ I_rl=L ; Rape TX_-FL Funded on 126-01 Margin account opened by True LFBO Zac Stem at PalneWebber. Funds- $ 86,250 PW Margin Acct. Cash # TX-_IB UrFL ; Repo TX_FL Funded on 12-6-01 Margin account opened by TrusL FBO Abigail Slam at PWebber. Funds- $ 86,250 PW Margin Acct. Cash # TXg DrFL ; Rel_. I"X-_B_=L Funded on 12-6-01

0B/21101

3

0BI21/01

4

08/21101

5

lit27/01

6

Margin account opened by Man in Sands Trust at Pa]neWebber. Funds- $ 360,000 PW I_argln Acct. Cash # TXgBFL ; Repo _FL. Funded on 12-6-01 Margin account opened by And=ew Stern at PalneWebber. PW Margin Acct. Cash # TX_ B_-I_ ; Rape T'R_I_FL. Margin account opened by CW(!-I at Pai_aWebber PW Marg|n Acct. Cash # _II-FL ; Repo TX_L Funds of $ 78,000 Funded on 12-6-01

1t/27/01

7

J

08/21101

8

i
12./11101 9 Margin account opened by Alpha I LP. at PaineWebber PW Margin Acct.. Cash # TX-qN B_I.G ; Rape "rX_IIII_LG
I

12/11101

10

Margin account opened by Beta Partner_ LLC. at PaineWebber PW Margin Acct. Cash # TX:qN I_LG ; R'epo _-LG Rl_:har;dSends executes a sho_ sale of U.S. Treasuries (Proceeds4 8,002,955.57) In his _alneWbbber account. Robert Sands executes a short'= ale of U.S. Treasudcs (Proceede-$ 9,512,947.19) In his _alneWebber accounL
t

12/11101

11

12./11/01

12

12/11/01

13

Madtyn Sands executes a'.s_to'rt;ale of L].S. Treasuries (Proceeds-$ 6,492,963.95) in her PaTneW_ebberaccounL
=

12/1 1/01

14

Trust FBO Zac Stern executes a_short sale of U.S. Treasuries
/

(Proceeds-$ 2,868,984.07) in i_ I_aineWobber account. 12/11/01 15 Trust FBO Abigail Stern executors a shor:l"sale of U.S. Treasuries {Proceeds_ 2,868,984.07) in It_ 'alneWebb0r account,

"_

Copyright

2001 The Heft

ge Orgaril_atJon,

LLC..

DOJ-017605

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 6 of 24

"\

12/28/2o01

'flED

19:28

FA.X

_]003

®
I_11101 12/11101 16 17 Marvin Sands Master Trust

Andrew Stem executesa-s_ort j3ale f u.s.Treasuries o (Proceeds-$ 2,566,985.74) I_ Itsl PalneWebber account.

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lix
*

e ut_s a short sale of U,S. Treasuries

(Proceeds-$11,979,266,83)1_1t Paln';'WebberaccounL: .. ,_. FormaUon of Er_fltle _an'dl_ank Accounts 08123/01 18 CRate R, R, M & c Mana I I'_U" . Tax ID# 43-1936515 18a Richard makes of company stock 18b Robert makes a of company stock 18c File S- Election as Bone 19 Set up Bank account for R, Mecrl/I Lynch Acct. Form Alpha ! L.P. (Missouri Flied 12-3-01 - Tax let# 43-1 ¢ . Set up Bank account for Merrill Lynch Acct. # Trust FBO Zac Stern contrtt # :rXIFL ; Repo (PalneWebber AccL # TX_Trust FBO Ablgal] Stem co # TX-_-FL ; Repo (PaineWebber Acct. # Richard contributes asr,,et_ Repo _L to an Repo TX-_I.G) in contributes $ 223,875.31 ca.c to meet any additional cash Robert contributes assets al Repo TXIL to an al Repo "I'X-_-LG) in excha contrlbutes $ 265,614.43 ca! to meet any'addlfJonal casP Marllyn contributes assets Repo TXJI_IIh.FL I_oan ac_c Repo TX_LG) In excha contributes $ t81,736.19cas to meet any additional c._sh assetb and oblig&tions of PaineWebber acct. short) to,an account of CWC-I (Missouri S-Corporation). tutlon _r cash ($ 55,000) in return for 50% I, o_cash ($ 55,000) In return for 50% 8-23-0,t .. _lled 8t30/01. & C I_lnagement CorporaUon. "" ., Paitnershlp) :B ,.

12/03/01

20

t2710/01

21

1Z/13101

22

12./13/01

23

as,sets and obligations' of PalneWebber acct. short) to an account of CWCA

1,?J17101

24

of PalnreWebber acct. # ; of Alplha I LP. (PW Acct. Cash # ; Interests, In Addition, Richard an acdourd of AJpha I LP. (ML Acct. s. (Cash. actually went In on 12-14--01) Ilg_tlo.rnsof PafneWebber acct. # "I'X_I_-"L ; of Alpha I L.P. (PW Acct. Cash # "I'X_LG ; 21._$01% LP. Interests. In Addition, Robert In acc_ount of Alpha ! LP. (ML Acct. _) (Cash actually went in on 12-14.-O_) )hgaUons of PaineWebber acct. # "I-XIFL ; Alp.ha I LP. (PW Acct: Cash # T'X._I.G ; 14.641% LP. Interests. In Add|Uon, Merilyn m account of Alpha I LP. (ML Acct. # ;. (Cash. actually went In on 12-14-01)

12/17101

25

12/17/01

26

SANDS

11428

DOJ-017606

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 7 of 24

12/26/?.0E)1 _

19:29 F_

_004

IMPI
12]17/01 27 Andy Repo TX-IBIIIIIFL to an Repo TX_IIIIR-LG) In contributes $ 72,694.48 to meet any additional Marvin Sands Trust con; TXJ_-FL ; Addlffon, Marvln Trust (ML Acct. _ 12/17101 29 (_WC-I conlzlbutes ass_ Repo TX4_#-L Rbpo TX_LG} contributes $16C to an in

FOR SANDS FAMILY
.atlo_s of PaineWabber accL # TX-4_-FL ! LP. (PW AcCt. Cash # TX4_LG LP. Interests. In Addition, Andy account of Alpha l LP, (ML Acct. {Cash actually went In on 12-14-01) ; ;

12/17/01

28

atlons of PalneWebber acct. # of Alpha I LP, (PW Acct. Cash # f In exchange for 27.030% LP, Idterests. In ; $ 3:35,51Z97 cash to an account of AJpha I LP. ad_llUonai c_sh needs. (Cash In on 12-14-01)
t

ecct_ # TX_

;

pf Al_ha I LP. (PW AccL Cash # _LG ; Interests. In Addition, CWGJ =ha I LP. (ML Acct. #_7} ;. (CaSh actually went In on q2-t4-01) cash ($ 2,58Z.00} to Alpha I L.P. Mo_neymoved on 12.20-0t. · re

to me,eL any additional 12/17/01 30 R, R, M 8, C Managemen In exchange for a .t% (_, Alpha I L.P. bought 67,5: Alpha I LP. bought33,4_

12/17/01

31

'of GLW for $ 8.822&/sharo .of YI_{OO for $17.95/share
i '"

LLC. 1Z/1CI01 32 Form Beta Partners LL Operating AgreemenJ 12/20/01 33 Alpha I L.P. contributes Repo TX_G (Opel (PalneWebber Cas Interests. In Addition corrtdbuted from an" crf Beta PaH_.ere LLC. 12/20101 34 Glon'a R.obinson'cont_rll for Member Interest" Transaction 12/26/01 35 Beta Partners LLC. clc (PW Margfn Acct. Ca;h _ Alpha I L.P. purchases from Gloria Robinson. Alpha ! L.P. wired from account of Gloria Robl Partner3 LLC. account Cash # TX_LG ; an _ccount of Beta ParSers EL, C. _po TX_-LG) In exchange for Member f GLW & 34,00D Shaft,s of YHOO are I L..P:_I_L A_cct._ to an account bar _,_I'L# TX_LG ; Repo TX_G). Tax 113# 43-1946833

worth $ 25,000 to Beta Partners LLC.

;eta l_arf_lers LLC: en s_ort positions. Settle on 12-23'-01 Repo TX_G) r" teres'Ls In Beta Partners L.LC.

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nch Acct. #_$ .... to an ,m-_n'tfor Lh.ep,_,reh_.._ of her inter_.st_ In Beta =

1

Copyrighl2001
L

3r_znlzB_on, LLC.

,

SANDS

11429

DO J-017607

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 8 of 24

IMPLEMENTATION
O Date of Event

LIST FOR SANDS FAMILY

Formation of Margin Accounts and Short Sale Execution

I
08/21101 1 Margin account opened by Richard Sands at PalneWebber. PW Margin Acct. Cash # TX_F;IL ; Repo TX_I_P-FL Margin account opened by Robert S_nds at PaineWebber. PW Margin Acct. Cash # rXiL ; Repo TXlUrFL Margin account opened by Madlyn Sands at PaineWebber. PW Margin Acct. Cash # _FL ; Repo TX_-FL. Funds of $ 240,000 Funded on 12-6-01 Funds of $ 285,000 Funded on 12.601 Funds of $195,000 Funded on 12-6-01 Funds - $ 86,250

08/21/01

2

08/21101

3

08121101

4

Margin account opened by Trust FBO Zac Stem at PaineWebber. PW Margin Acct. Cash # _FL ; Repo TX-_I_rFL.

Funded on 12-6-01

08/21101

5

Margin accohnt

opened by Trust FBO Abigail Stern at PWebber. Funds- $ 86,250 ; Repo TX_FL. Funded on 12-6-.01

PW Margln Acct. Cash # TX_FL 11127/01 6

Margin account opened by Marvin Sands Trust at PalneWebber. Funds- $ 360,000 PW Margin AccL Cash # TX-_IFL ; Repo _FL Funded on 12-6-01 Margin account opened by Andrew Stern at PaineWebber. PW Margin Acct. Cash # TX-IH_-FL ; Repo TX-_-FL. Funds of $ 78,000 Funded on 12-6-01

11/27101 ) j 08/21101 12/11101

7

8 9

Margin account opened# by CWC-I at PaineWebber PW Margin Acct. Cash TXiFL ; Repo TX--_U_-FL Margin account opened by Alpha I L.P. at PalneWebber PW Margin Acct. Cash # TX-_-LG ; Repo TXg-LG

12/11/01

10

Margin account opened by Beta Partners LL.C. at PalneWebber PW Margin Acct. Cash # Tx_iI-LG ; Repo "I'X-_/-LG

12/11101

11

Richard Sands executes a short sale of IJ.S. Treasuries (Proceeds-$ 8,002,955.57} In his PalneWebber account.

12/11/01

12

Robert Sands executes a short sale of U.S. Treasuries' (Proceeds-$ 9,512,947.19) In his PaineWebber account. Marilyn Sands executes a short sale of U.$. Treasuries (Proceeds-$ 6,492,963.95)in her PalneWebber accounL

12/11101

13

12/11/01

14

Trust FBO Z.ac Stern executes a short sale of U.S. Treasuries {Proceeds-$ 2,868,984.07) In its PalneWebber account. Trust FBO Abigail Stern executes a short sate of U.S. Treasuries (Proceeds-$ 2,868,984.07) in its PaineWebber account.

12/1t/01

15

"_

Copyright 2001 The HentageOrgamzation, L L C SANDS 11430

DOJ-017608

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 9 of 24

IMPLEMENTATION
O 12/1tl01 16

LIST FOR SANDS FAMILY

of U.S. Treasuries salo Andrew Stern executes a short (Proceeds-$ 2,566,985.74) in its PaineWebber account.

12/11101

17

Marvin Sands Master Trust executes a short sale of U.S. Treasuries (Proceeds-$11,979,266.83) in its PaineWebber accounL

Formation of Entitles and Bank Accounts 08/23/01 18 Create R, R, M & C Management Corporation (Missouri S-Corporation).

Tax ID# 43-1936515 18a Richard makes a contribution of cash ($ 55,000) In return for 50% of company stock as of 8-23-01. 18b Robert makes a contribution of cash ($ 55,000) in return for 50% of company stock as of 8-23-O1. 18c File S- Election as of 8/23/01. Filed 8/30101. Done 19 Set up Bank account for R, R, M & C Management Merrill 12/03101 20 Lynch AccL _ Limited Partnership) _ Corporation. ,

Form Alpha i L.P. (Missouri Filed 12-3-01 - Tax ID#

12/10/01

21

Set up Bank account for Alpha I LP. Merrill Lynch Acct. _ ,_ acct.

12/13/01 J

22

Trust FBO Zac Stern contributes assets and obligations of PaineWebber # TX_-FL ; Repo TXqB_FL (open short) to an account of CWC-I (PaineWebber Acct. # TX_II_IDFL; TX41_4:L_.

12/13/01

23

Trust FBO Abigail Stern contributes assets and obligations of PaineWebber # TX_FL ; Repo TX-_-FL. (open short) to ar_ account of CWC-I (PaineWebber AccL # TX _FL; "I'X-_:L),

acct.

12/17101

24

Richard contributes assets and obligations of PalneWebber acct. # TX._-FL ; Repo TX-_-FL to an account of Alpha I L.P. (PW Acct- Cash # TX_LG ; Repo TX_LG) in exchange for 18.022% L.P. Interests. In Addition, Richard contributes $ 223,675.31 cash to an account of Alpha I L.P. (ML Acct. #_) to meet any additional cash needs. (Cash actually went in on 12-14-01) Robert contributes assets and obligations of PalneWebber accL # TX_FL ; Repo T:X_L to an account of Alpha I L.P. (PW AccL Cash # "['X_IIIULG ; Repo TX-_I.G) in exchange for 21.401% L.P. Interests. In Addition, Robert contributes $ 265,614.43 cash to an account of Alpha I L.P. (ML AccL _) to meet any additional cash needs. (Cash actually went in on 12-14-01) Marilyn contributes assets and obligations of PaineWebber accL # i-X_FL ; Repo TX_FL to an account of Alpha I/p. (PW AccL Cash # TX_LG ; Repo TXJ_I_G} in exchange for 14.641% L.P. Interests. In Addition, Martlyn contributes $181,736.19 cash to an account of Alpha I I_P. (ML Acct. to meet any additional cash needs. (Cash actually went In on 12-14-01)

12/17/01

25

12/17/01

26

Copynght2001 The Heritage Organlzabon. LLC SANDS 11431

DOJ-017609

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 10 of 24

!
O 12/17101 27

IMPLEMENTATION LIST FOR SANDS FAMILY
acct. # of Pa]neWebber Andy contributes assets and obligations TX-qI_rFL Repo TX-_:L to an account of Alpha I I_P. (PW Acct. Cash # _G Repo TX_-LG) in exchange for 5.857% LP. Interests. In Addltlon, Andy contributes $ 72,694.48 cash to an account of Alpha I L.P. (ML Acct. to meet any additional cash needs. (Cash actually went In on 12-t4-01)

; ;

12./17101

28

Marvin Sands Trust contributes assets and obligations

of PalneWebber

acct. #

TX_FL ; Repo TX_FL to an account of Alpha I L.P. (PW AccL Cash # TX_=LG Repo "rx41_-LG) in exchange for 27.030% L.P. Interests. in Addition, Marvin Trust contributes $ 335,512.97 cash to an account of Alpha I L,P. (ML Acct. #_ to meet any additional cash needs. (Cash In on 12-14-01) 12/17101 29 CWC-I contributes assets and obligations of PalneWebber acct. # TX_-FL Cash # TX_G In Addition, CWC-I (ML Acct. #__p on 12-14-01) ; ;

Repo TX_L to an account of Alpha I L.P. (PW Acct. Repo TX-_LG) In exchange for 12.949% I_P. Interests. contributes $160,766.63 cash to an account of Alpha I LP. to meet any additional cash needs. (Cash actually went In 12/17101 30

R, R, M & C Management Corporation contributes cash ($ 2,582_00) to Alpha i L.P. In exchange for a .1% G.P. interest. Money rfioved on 12-20-01. Alpha t L.P. bought 67,525 shares of GLW for $ 8.8228/shara Alpha I L.P. bought 33,400 shares of YHOO for $17.951share ForTnatlon of Beta Partners L.L.C.

12/17101

31

J

17./10101

32

Form Beta Partners LIC. - Filed 12-10-01. Ta_ ID# 43-1946833 Operating Agreement Dated 12.10-01 Alpha I I_P. contributes assets of PalneWebber account Cash # TX_LG ; Repo.TX_G (open short) to an account of Beta Partners L.L.C. (PaineWebbar Cash # TX_G ; Repo TX_G) in exchange for Member Interests. In AddRIon, 67,525 Shares of GLW & 34,000 Shares of YHOO are contributed from an account of Alpha I LP. (ML Acct./t_l_p to an account of Beta Partners L.L.C. (PaineWebber Cash # TX_G ; Repo TX_LG). Gloria Robinson contributes for Member Interest Transaction cash worth $ 25,000 to Beta Partners L.L.C.

12/20/01

33

12/20/01

34

Involving Beta Partners LL.C.

35

Beta Partners L_L.C. closes the open short positions. Settle on (PW Margin AccL Cash # TX_LG ; Repo TX_LG) Alpha I L.P. purchases Member Interests In Beta Partners L L.C. from Gloria Robinson. Alpha I L.P. wired from Its Merrill Lynch Acct. #_$ account of Gloria Robinson as payment for the purchase Partners L.L.C. to an in Beta

36

37

of her Interests

Copyright

2001

The Hentage

Organ_ation.

L.L C.

SANDS l 1432

DOJ-017610

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 11 of 24

IMPLEMENTATION O 38 39 40 41 42 43

LIST FOR

SANDS

FAMILY

Steps Required for Completion of Transaction Reps & Warranties completed by Lewis Rice & sent to respective parties Opinion Letter completed by Lewis Rice and sent to respective parties Tax Return filed for R, R, M & C Management Corporation. Tax Return filed for Beta Partners LL.C. Tax Return filed for Alpha I L,P. Provide Family with original documents ;egardlng transaction. *

_'_

Copyright 2001TheHentage Organ_..at_on, L.L.C. SANDS 11433

DOJ-017611

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 12 of 24

IMPLEMENTATION
Date of Event

LIST FOR SANDS FAMILY

Formation of Margin Accounts and Short Sale Execution 08/21/01 1 Margin account opened by Richard Sands at PaineWebber. Funds of $ 240,000 PW Margin AccL Cash # Txq_IFL ; ReDo TX_IILFL Funded on 12-6-01 Margin account opened by Robert Sands at PalneWebber. Funds of $ 285,000 PW Margin AccL Cash # TXq_L ; Repo TX_L Funded on 12-6-01 Margin account opened by Marilyn Sands at PalneWebber. PW Margin Acct. Cash # _L ; ReDo T_FL Funds of $195,000 Funded on 12-6-01 _

08/21/01

2

08/21/01

3

08/21101

4

Margin account opened by Trust FBO Zac Stem at PaineWebber. Funds - $ 86,250 PW Margin Acct. Cash # T'X_L ; Repo _FL Funded on 12-6-01 Margin account opened by Trust FBO Abigail Stem at PWebber. Funds- $ 86,250 PW Margin Acct. Cash # TX_FL ; Repo TX_L. Funded on 12--6-01 Margin account opened by Marvin Sands Trust at PalneWebber. Funds- $ 360,000 PW Margin Acct. Cash # TX_FL ; Repo TX_FL. Funded on 12-6-01 Margin account opened by Andrew Stern at PalneWebber. PW Margin AccL Cash # _L ; ReDo TX_FL. Funds of $ 78,000 Funded on 12-6-01

08/21101

5

11/27101

6

11/27/01 ) J 08/21/01

7

8

Margin account opened by CWC-I at PaineWebber PW Margin AccL Cash # TX_FL ; Repo TX_FL Margin account opened by Alpha I L.P. at PaineWebber PW Margin Acct. Cash # TXN-LG ; Repo TX-_rLG at PalneWebber

12/11/01

9

12/11/01

10

Margin account opened by Beta Partners LLC. PW Margin AccL Cash # "rX_LG

; Repo TX_-LG

12/11/01

11

Richard Sands executes a short sale of U.S. Treasuries (Proceeds-$ 8,002,955.57) In his PaineWebber accounL Robert Sands executes a short sale of U.S. Treasuries' (Proceeds-$ 9,512,947.19) in his PalneWebber accounL Marilyn Sands executes a short safe of U.S. Treasuries (Proceeds-$ G,492,963.95} in her PaineWebber accounL Trust FBO Zac Stern executes a short sale of U.S. Treasuries (Proceeds-$ 2,868,984.07} in its PaineWebber account. Trust FBO Abigail Stern executes a short sale of U.S. Treasuries (Proceeds-$ 2,868,984.07) in its PalneWebber account.

12../11/01

12

12/11101

13

12/11/01

14

12./11/01

15

Copyr,gh12001 HenlageOrgamzat_on. L C ]he L

SANDS

] ] 434

DOJ-017612

Case 1:06-cv-00407-ECH
¢ eA

Document 106-6

Filed 07/02/2008

Page 13 of 24

O 12/11/01 16

IMPLEMENTATION

LIST

FOR

SANDS

FAMILY

Andrew Stem executes a short sale of U.S. Treasures (Proceeds-$ 2,566,985.74) in its Pa_neWebber account.

I,
12/11/01 17 Marvin Sands Master Trust execu_tesa short sale of U.S. Treasuries (Proceeds-$11,979,266.83) in its P_tneWebber account. Formation of Entities f_d Bank Accounts 0BI23/01 18 Create R, R, M & C Management Cbrporation (Missouri S-Corporation). Tax ID# 43-1936515 .. 18a Richard makes a contribution of cash ($ 55,000) in return for 50% of company stock as of 8-23-01. 18b Robert makes a contribution of cash ($ 55,000) In return for 50% of company stock as of 8-23..01. 18c File S- Election as of BD_3101. Filed 8130/01. Done 19 Set up Bank account for R, R, M & C Management Corporation. Merrill Lynch AccL Form Alpha I L..P. (Missouri Limited Partnership) Filed 12-3-01 - Tax ID# Set up Bank account for Alpha I L.P. Merrill Lynch Acct. #_ Trust FBO Zac Stern contnbutes assets arid obligations of PaineWebber acct. # "rX_FL ; Repo TX_FL (open shod) .toan account of CWC-I (PaineWebber Acct. # "IX _I:L; TX-_FL). Trust FBO Abigail Stern contributes assets and ol_llgations of PaineWebber accL # TXIRmlm=FL, Repo T)_FI_ (open short) to an account of CWC-I (PaineWebber Acct. # T)(_III_FL; TXGI_uFL). Richard contributes assets and obligations of PalneWebt_er acct. # _FL ; Repo TX_FL to an account of Alpha I LP. (PW Acct Cash # "rX-_G ; Repo 1-X-_G) in exchange for 18.022% LP. Interests. In Addition, Richard contr=bules $ 223,675.31 cash to an account of Alpha I Lp. (ML AccL #_ to meet any additional cash needs. (Cash actually went in on 12-14-01) Robert contributes assets and obligations of PaineWebber acct. # TX_FL ; Repo TX_L to an account ol Alpha I L.P. (PW Acct. Cash # T'X-_irG · Repo TX-_t.G) in exchange for 21.401% L.P. Interests. In Addition, Robert contributes $ 265,614.43 cash to an account of Alpha I L.P. (ML Acct. #_ to meet any additional cash needs. (Cash actually went in on 12-14-01) Marilyn contributes assets and obligations of PalneWebber acct. # TX_L ; Repo TXML to an account of Alpha I L.P. (PW Acct. Cash # TX_G ; Repo -I-X_G) in exchange for 14.641% L.P. Interests. In Addition, Marilyn contributes $181,736 19 cash to an account of Alpha I LP. (ML Acct. to meet any addthonal cash needs. (Cash actually went in on 12-14-01)

12/03101

20

12-/10101

21

.w_

12-/13/01

22

12/13/01

23

12_/17/01

24

12_/17/01

25

12/17101

26

Copyr_hl

2001

The

Henlage

Or93nr_ahon

, L L C.

SANDS

]1435

DOJ-017613

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 14 of 24

F,

O 12/17/01 27

IMPLEMENTATION

LIST

FOR

SANDS

FAMILY ; ;

Andy contributes assets and obligations of PaineWebber acct. # TX_L Repo TX-_BNFL to an account of Alpha I L.P. (PW Acct. Cash # TX_LG

Repo ]-X-I]ImlI_G) in exchange for 5.857% L.P. Interests. In Addition, And__y._ contributes $ 72,694.48 cash to an account of Alpha I L.P. (ML Acct. # to meet any additional cash needs. (Cash actually went in on 12-14--01) 12/17101 28 Marvin Sands Trust contributes assets and obligations of PaineWebber acct. # TX_FL ; Repo "I-XJ_IFL to an account of hJpha I LP. (PW Acct. Cash # TX-_LG Repo TX-Ni_G) In exchange for 27.030% L.P. Interests. In Addition, Marvin Trust contributes $ 335,512.97 cash to an account of Alpha I LP. (ML Acct. #_) to meet any additional cash needs. (Cash in on 12-14-01) CWC-I contributes assets and obligations of PaineWebber acct. # TX_L ; Repo "FX_NmFL to an account of Alpha 1L.P. (PW Acct. Cash # "FX-_LG ; Repo TX-_LG) in exchange for 12.949% LP. Interests. In Addition, CWC-I contributes $160,766.63 cash to an account of Alpha I LP. (ML Acct #_ to meet any additional cash needs. (Cash actually went in on 12-14-01) R, R, M & C Management Corporation contributes cash ($ 2,582_00) to Alpha I L.P. =n exchange for a .1% G.P. interesL Money movecl on 12-20-01. Alpha I L.P. bought 67,525 shares of GLW for $ 8.8228/share Alpha I L.P. bought 33,400 shares of YHOO for $17.95Ishare Formation of Beta Partners LL C. 12/10101 32 Form Beta Partners EL.C. - Filed 12-10-01. Tax 113# 3-1946833 4 Operating Agreement Dated 12-10-01 Alpha I L.P. contributes assets of PmneWebber account Cash # TX-I_NLG ; Repo "FX-_G (open short) to an account of Beta Partners L.L.C. (PaineWebber Cash # "FX_G ; Repo T)(-_LG) in exchange for Member Interests. In Addition, 67,525 Shares of GLW & 34,1)00 Shares of YHOO are contributed from an account of A{pha I LP. (ML Acct. #_U) to an account of Beta Partners LL.C. (PaineWebber Cash # "[-X_G ; Repo "FX_L-LG).
,_

12/17/01

29

.,

12/17101

30

12/17/01

" 31

J

t

12-]20/01

33

12/20/01

34

Glona Robinson contributes cash worth $ 25,000 Io Beta Partners,;LL,C. foi Member Interest Transaction Involving Beta Partners L.LC.

12- L-(_ 0 ( I I

35

Beta Partners LL.C. closes the open short positions. Settle on _o (PW Margin Acct. Cash # TX-_G ; Repo "FX-_G) Alpha I L.P. purchases Member Interests in Beta Partners LLC. from Gloria Robinson. Alpha I L.P. wired from its Merrill Lynch AccL #_$ Z_-i_q_, 13 to an account of Gloria Robinson as payment for the purchase of her interests in Beta PartnersL.LC.

LI L1 ) O_

36

ILl t" 7) O_ , 37

"_

Copyngh12001 HenlageOrganiza_bon.L C The L SANDS 11436

DOJ-017614

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 15 of 24

|

O

IMPLEMENTATION

LIST FOR SANDS FAMILY

-

Steps Required for Completion of Transaction 38 39 40 41 42 43 Reps & Warranties completed by Lewis Rice & sent to respective parties Opinion Letter completed by Lewis Rice and sent to respective parties Tax Return filed for R, R, M & C Management Corporation. Tax Return filed for Beta Partners L.LC. Tax Return filed for Alpha I LP. Provide Family with original documents regarding transaction.

)

J

,_

Cop)Tight 2001TheHen_geO1ganlzat}on. LL C.

SANDS 11437

DOJ-017615

Case 1:06-cv-00407-ECH
p · Q r_-o

Document 106-6

Filed 07/02/2008

Page 16 of 24

[.

",t

'i

11/20/Z001

_

16:;34

FtL,'[

(_009

-]

O:'_
i

:':
Dale of Event

IMPLEMF_.HTATION FOR SANDS FAMILY LIST

l

Formation

of Margin Accounts

and Short Sate Execution

:<

08/21101 08t2t101

1 2

Sands family borrows 4.215 MM from MLR&R. Margin account opened bY PJchard Sands at PaineWebber PW Margin AccL Cash # "r_FL ; Repo TX-_L with $ 725,000 Funded on 8-_. with $ 725,000 Funded 1 "_

08/Zll01

3

Margin account opened by Robert Sands at PaineWebber PW Margin Acct. Cash # TX_IFL ; Rape TX_L

on 8-11_H_. \\

"_ ;_

08/21101

4

Margin acc._ount opened by Mazily_ Sands at PalneWebber PW Margin Acct. Cash # TX_FL ; Repo T'X_-FI_

with $ 725,000 "_ Funded on 8-1_--01 ] with $ 36_jS0._L|vl _\

08/21/01

5

Margin account opened by Trust FBO Zac Stem at PalneWebber PW Margin AccL Cash # TX_FL ; Rape "rx-_FL.

08/21101

6

Funded on 8-_l]O1/ / Margin account opened by Trust FBO .Abigail Stern at PaineWebber with $ _,500 PW Margin Acct. Cash # "I-X_-FL ;Rape TX_FL. Funded on 8-_I-01 Margin account opened by CWC-) at PalneWebber PW Margin Acct. Cash # TX_-FL ; Rape TX_:I_

08]21101

7

j

08/'24/01 08124101

8 9

Margin account opened# by R, R, M & C Rope _FL PW Margin Acct. Cash "I'XJ_':L ; Group, LP.

at PalneWebber at PalneWebber

Margen account opened by R, R, M & C Partners, LLC. PW Margin Acct. Cash # TX_FL ; Rape _FL

08.F23101

10

Richard

Sands axecurtes a short sate of U.S. Treasuries 23,451,562.50) in his PalneWebber account.

(Proceeds-$ ; 08/23/01 11

Robert Sands executes a short sale of U.S. Treasuries IProceeds-$ 23,451,562.50) In his PalneWebber accounL

"

08/23/01

t2

Marilyn

Sands executes

a short sale of U.S. Treasuries in his PaineWebber account.

(Proc=)ods-$ 23,451,562.50) 08.t'ZS/01 13 Trusl

FBO Zac Stern executes

a short sale of U.S. Treasuries accoun(.

(Proceeds--$ 7,647,248.65) 08/23/04, t4

in Its PalneWebber

Tru_-t FBO Ab|ga$1 Stern executes a short sate of U.S. Treasuries (Proceeds-$ 7,647,248 65) in {is PalneWebber account.

Copyrv.jht 2001 The HefdaGaO,"9amz.sUon. LC. L

SANDS 11438

DOJ-017616

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 17 of 24

-'!

r"

t=

"

].1/20/2001

TUE 16:34

F_

_oto

O
_q

_"

IMPLEMENTATION Formation

LIST of Entitles

FOR

SANDS

FAMILY

and Bank Accounts Corporation (Missouri S-Corporation).

.7 ' : _:

0B/23101

15

Create R, R, M & C Management Tax ID_ 43-1936515

1Sa Richard makes a contribution

of cash (_, 55,000) In return for 50%

of company stock as of 8-23-01. 15b Robert makes a contribution of cash ($ 5.5,000) In return for 50% of company stock as of 8-23-01. 15c Rle ,% Election as of 8/23/01. Rled 8/30/0I.

i,

Done

16

Set up Bank account for R, M_ Merrill Lynch Acct. #

Management

Corporation.

(i
; ;" · _

08/23101

17

Form R, R, M & C Group, LP. (Missouri Limited Filed 8/23/01 - Tax ID# 43-1936516 Set up Bank account for R, R, NI & C Group, L.P. Merrill Lynch AccL #_

Partnership)

Done

18

08127101 -i

19

Trust FBO Zac Stern contributes # TX_FL (P_lneWebber ; Repo TX_-FL AccL # TX _FL;

assets and obllgat[ons

of PaineWebber of CWC-!

accL

{open short) to an account TX_FL). assets and obligations

08/27/01

20

Trust FBO Abigail Stern contributes # "rx_f:L (PalneWebber ; Rape "rx,_-L. Acct. # TX

of PalneWebber

acct., r ' " _0

(open short) tD an account of CWC-I L; TX-_I_ ). .5% _ersllJ1_nter_.

/'-k21

,Ft.lchard,_ptrlbut_s

_ash tpf'qWC-I_,ntalFll_s

"_..'b_

,_12_

08/28/01 ",' r z ,, 08/2810t

21

Richard contributes assets and obligations of PalneWebber accL # TX-_=L ; Repo TX_=L and 500}( shares of SI"Z to an account of R, R, M & C Group, LP. (PW Acct. Cash # TX_-L ; Rape TX_) In exchange for Z4.975% LP. Interests. In Addition, Richard conldbtJrles $125,000 cash to all account of R, R, M & C Group, LP. (ML AccL #_ to meet any addlUonal cash needs. Robert contributes assets and obligations of PalneWebber acct. # "rx-_-FL ; Repo TX_L and 500K shares of S'I-Z to an account of R, R, M & C Group, I_P. (PW AccL Cash # _L ; Repo TX-_=L) in exchange for 24.975% L_P. Interests. In Addition, Roberl contributes $125,000 cash to an account of R, R, M & C Group, LP. (ML Acct_ _) to meet any additlonal cash needs.

22

!

08/2l_/01

23

Marllyn contTIbutes assets and obligations of PalneWebber acct. # T'X_FL ; Rape TX_L and 500K shar_s of S'F£ to an account of It, R, M & C Group, L.P. (PW Acct. Cash # TX_L ; Rape TX_-F-L) In exchange for :24.975% LP. Interests· In Addition, Marllyn conl_lbutes $125,000 cash to an account of R_ R, M & C Group, LP· (ML Acct. #_ to meet any addifJonal cash needs.

Copynght2001 The Hedt_ga O_gan_.,3_on, L.L.C.

"_

SANDS

11439

DOJ-017617

Case 1:06-cv-00407-ECH
· J _ + ...... - . -

Document 106-6
............ ....

Filed 07/02/2008
--o

Page 18 of 24

..:" I

I_1

"+

]1/2e/ZOO!

_

16"35

P/L/,

_011

.
( 08128101 24

IMPLEMENTATION LIST FOR SANDS FAMILY
CWC-I contx|butes Repo "I'X._:L as_;et_ and_obllgattons of PalneWebber acct. # "I'X._FL ; and 500Kdhams of STZ to an account of R, R, M & C Group, ; Repo TX-_:L) contributes $125,000 In e_change for 24.975% cash to an account Qf R, 1_ c_sh needs.

L.P. (PW Acct. Cash # TX-_FL L.P. _nterests. In Addition, C_C-I

:J
" 08/28101 25

.M & C Group, L.P. (ML Acct. f__)

to meet any addffionai

R, R, M & C Management CorPoration contributes 2,002 shares of STZ and cash ($ 3,403.40) to R, R, M & C Group, L_P. In exchange for a .1% G.P. intere_t.

Formation 08/23J0t 09/04J01 08/31/01 26

of R, R, M & C Part_em, -Filed

LLC.

Form R, R, M & C Partners, LLC. OperaUng Agreement

8/23101. Tax loft 43-1936519

Da ted 8/30/01 assets of Pa|neWebber account # "rX_-FL

:

27

R, R, M & C Group, L.P. contributes

; Repo TX._FL {1,095,025 Shar_s of S1-Z, open short) to an account of R, R, M & C Partners, L.LC. (PalneWebber AccL # I'X-_FL ; "DC_L) in exchange 1"orMember Interests. In Addition, 906,oJ77 Shares of ST-/- contributed in cer't}fic:ate form. 0B/31/D1 28 Gloria Robinson contr;butes for Member Interest Transaction 09J06101 29 Involving cash worth $ 250,00(] (o R, 17, M & C Partnersj L.LC.

', j

1_,R, M & C Part_ers,

LLC. Settle on 9/07101.

R, 17., & C Partners, LLC. closes the open short positions. M (PW Margin Acct. Cash # "I"_-_FL ; Repo TX_FL) R, R, M & C Group, LP. purchases Member Interests from Gloria Robinson.

09110/01

30

in R, R, M & C Partners, LLC.

09/10/01

31

R, R, M & C Group, LP. wired from Its MerrlII Lynch AccL _$ to an account of Gloria Robinson as payment for the purchase R, R, M & C Partners, LLC. Steps Required for Completion of Transaction

227,278.71 of her Interests In

=

3Z 33 34 3.5 36 37

Reps & Warranties

completed

by Le_=s Rice & ._ont to respective Lewis Rice and sent to respective Corporation.

parties

Opinion Letter completed.by

parties

Tax Return filed for R, R, M & C Management Tax Return filed for R, R, M & C Partners,

LL.C.

Tax Return filed for R, R, M & C Group, L.P. Provide Fam=ly with orlglnal documents regarding transaction.

CopyTIght2001 The Hedt_ge O_amz,_on, LLC

SANDS 11440

DO J-017618

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 19 of 24

11/20/2001

TUE

16:34

FAX

_}009

O
Date of Event

IMPLEMENTATION

LIST FOR SANDS FAMILY

Formation of Margin Accounts and Short Sale Execution 08/21/01 08/21101 1 2 Sands family borrows 4.216 MM from MLR&R. Margin account opened by Richard Sands at PaineWebber PW Margin Acct. Cash # TX_L ; Repo TX-tlIIIOrFL. Margin account opened by Robert Sands at PalneWebber PW Margin Acct. Cash # "rXIL ; Rope _-FL Margin account opened by Marily-n Sands at PalneWebber PW Margin Acct. Cash # TX_-FL ; Repo TX_-FL. with $ 725,000 Funded on 8-24-01 with $ 725,000 Funded on 8-24-01 with $ 725,000 Funded on 8-24-01

08/21101

3

08/21/01

4

08/21/01

5

Margin account opened by Trust FBO Zac Stem at PalneWebber with $ 362,500 PW Margin Acct. Cash # TX_L ; Rope TX_FL. Funded on 8-24-01 Margin account opened by Trust FBO Abigail Stern at PaineWebber wilh $ 362,500 PW Margin Acct. Cash # TXO-FL ; Rope TX-_i-FL. Funded on 8-24-01 Margin account opened b.y CWC-I at PalneWebber PW Marg0n Acct. Cash # TX_FL ; Rope TX_FL Margin account opened by R, R, M & C Group, LP. at PaineWebber PW Margin Acct. Cash # TX-_I::L ; Rope TX_FL Mar91n account opened by R, R, M & C Partners, LL.C. PW Margin Acct. Cash # TXOFL ; Rope TX_:L Richard Sands execules a short sale of U.S. Treasuries (Proceeds.$ 23,451,562.50) in his PaineWebber account. Robert Sands executes a short sale of U.S. Treasuries (Proceeds-$ 23,451,562.50) in his PalneWebber account. Marllyn Sands executes a short sale of U.S. Treasuries {Procoeds-$ 23,451,562.50) in his PaineWebber account. Trust FBO Zac Stern executes a short sale of U.S. Treasuries (Proceeds-$ 7,647,248.65) In Its PaineWebber account. Trust FBO Abigail Slern executes a short sale of U.S. Treasuries {Proceeds-$ 7,647,248.65) in =ts PaineWebber account. at PaineWebber

08/21101

6

08121101

7

J

08124101

8

08/24/01

9

08123101

10

08/23101

11

08123/01

12

08123101

13

08/23/01

14

"_

Copynght2001The HerdageOrgamT_atlon. L C L

SANDS 11441

DOJ-017619

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 20 of 24

Ik/20/200t

TUE

10:34

FAX

[_o10

O

IMPLEMENTATION

LIST FOR SANDS

FAMILY

Formation of Entitles and Bank Accounts
08/23/01 15 Create R, R, M & C Management makes Corporation of cash (Missouri ($ 55,000) S-Corporation). In return for 50% In return for 50%

Tax ID# 43-1936515 15a Richard a conlrlbutlon of company stock as of 8-23--01. 15b Robert makes a contribution of cash ($ 55,000) of company stock as of 8-23-01. 15c File 5- Election as of 8/23101. Filed 8/30101.

i

Done

16

Set up Bank account Merrill Lynch AccL

for R, R,M_C #

Management

Corporation.

08/23101

17

Form R, R, M & C Group, L,P. (Missouri Filed 8f23/01 - Tax IO# 43-1936516 Set up Bank account Merrill Lynch AccL contributes assets (open

Limited

Partnership)

Done

18

for R, R, M & C Group,

L.P.

08/27/01

19

Trust

FBO Zac Stern

and obligations short)

of PaineWebber of CWC-I

acct.

# "I'X-_FL (PalneWebber

; Repo "I'X-_-FL Acct. # _FL;

to an account

TX_FL).

J

08/27/01

20

Trust FBO Abigail Stern contributes # TX-_FL ; Repo TX_FL. (PalneWebber Acct. # TX_-FL;

assets and obligations of PaIneWcbber {open short) to an account of CWC-I TX_FL). .5% _;_ersl3Jp_nter_<

acct. r ' " _ _w _

,':----2 ' '
/-_21 .l_ichard/C'b, ntr,bu_ash tpf'_WC-I.,lo'ynaintalFrl_s

_-_, C._-_
"_-_-{_ .-_Vf

./

i

/

WRWc°n_tutesca_'ht/°C_lt'lt°

'r_[nhlJ_°°wn_hip_r_/t

_

vJ_/t?_

08/28/01

21

Richard contributes assets and obligations of PalneWebber accL # TX_-FL

;

Repo T)(_-FL and 500K shares of S'I-Z to an account of R, R, M 8, C Group, LP_ (PW Acct. Cash # TXqI_IBFL ; Repo TX_L) In exchange for 24.975% L.P. Interests. In Addition, Richard contributes $125,000 cash to an account of R, R, M & C Group, 08128/01 22 Robert contributes Repo TX-_FL L.P. (PW Acct. L.P. (ML Acct. #_ to meet any additional cash needs.

assets and obligat=ons of PalneWebber and 500K shares of STZ to an account ; Repo TX-_FL)

acct. # TY,_FL ; of R, R, M & C Group, in exchange for 24.975%

Cash # TX_FL

L.P. Interests. In Addit=on, Robert contributes R, M & C Group, L.P. (MLAcct. #_ 08/28/01 23 Marilyn contributes assets and obligations

$125,000 cash to an account of R, to meet any additional cash needs. of PaineWebber accL # "I-X_-FL ,

Repo TX_FL and 500K shares of STZ to an account of R, R, M & C Group, L P. (PW Acct. Cash # TX_FL ; Repo "I'X_FL) In exchange for 24.975% L.P Interests. In Addihon, Mardyn contributes $125,O00 cash to an account of R0 R, M & C Group, L.P. {ML Acct. #_ to meet any additional cash needs.

Copyright 2001 The Herltag90rganczat=on. LL C.

SANDS 11442

DOJ-017620

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 21 of 24

'

i]/zo/2oo] ?UE 18.35 F/_

_011

O
08/28101 24

IMPLEMENTATION

LIST FOR SANDS FAMILY

CWC-I conb'ibutes assets and obligations of PalneWebber accL # "I-X_FI. ; Repo "rx_=L and 500K shares of s-rz to an account of R, R, M & C Group, L.P. (PW Acct. Cash # TX_FL ; Repo TX_FL) in exchange for 24.975% L.P. Interests. In Addition, CWC-I contdbutes $125,000 cash to an account of R, R, M & C Group, L.P. (ML Acct. _ to meet any additional cash needs. R, R, M & C Management Corporation contributes 2,002 shares of S'I-Z and cash ($ 3,403.40) to R, R, M & C Group, L.P. In exchange tor a .1% G.P. interest.

08/28/01

25

Formation of R, R, M & C Partners, L.L.C. 0BI23/01 09/04/01 08/31101 25 Form R, R, M & C Partners, L./C. - Filed 8/23101. Tax ID# 43-1936519 Operating Agreement Dated 8/30/01 R, R, M & C Group, L.P. contributes assets of PaineWebber account # TX_-FL ; Repo IX-_FL (1,095,025 Shares of STZ, open short) to an account of R, R, M & C Partners, L.L.C. (PalneWebber Acct. # TX_FL ; TX_FL) in exchange for Member Interests. In Addition, 906,977 ShaPes of STZ contr=buted in certificate form. Gloria Robinson contributes cash worth $ 250,000 to R, R, M & C Partners, L.L.C. for Member Interest

27

08/31101 1 j 09/06101

28

29

Transaction Involving R, R, M & C Partners, LL.C. R, R, M & C Partners, L L.C. closes the open short positions. Settle on 9/07/01. (PW Margin AccL Cash # TX_L ; Repo -I-X_FL) R, R, M & C Group, L.P. purchases Member Interests =nR, R, M & C Partners, L.L.C. from Gloria Robinson. R, R, M & C Group, LP. wired from Its Merrill Lynch Acct. #_, $ 227,278.71 to an account of Gloria Robinson as payment for the purchase of her interests in R, R, M & C Partners, EL.C. Steps Required for Completion of Transaction

09/10/01

30

09/10/01

31

32 33 34 35 36 37

Reps & Warranties completed by Lewis Rice & sent to respective parties Opln=on Letter completed.by Lewis Rice and sent to respective parties

Tax Return filed for R, R, M & C Management Corporation. "Fax Return filed for R, R, M & C Partners, LL.C. Tax Return filed for R, R, M & C Group, L.P. Provide Family with original documents regarding transaction.

Copyright2001 The Herd.age On:jsmzabon, L./C.

SANDS 11443

DOJ-017621

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 22 of 24

09/14/2001

FRI 11,oo p&.I

_005

IMPLEMENTATIONST FORSANDSFAMILY U
Date of Event Formation of Margin Accounts and Short Sale Execution

08/21/01 08/21101

1 2

Sands family borrows 4.216 MM from MLR&R. Margin e`ccount opened by Richard Sand= at PeineWebbar PW Margin Ac_L Cash #.I"X._ ; R_po _L with $ 725,0_0 Funded on B-24-01

08/21/01

3

Margin account opened by Robert Sallcls at Pe`ltmWobber wll_ $ 725,000 PW Marl;dn Acct. Cash It TX_L ; Rz'-_ TX_ Funded on 8-24--01

011/21101

4

Margin account opened by Martty_ S_nds at Patn0Webber PW Margin Acct. Cash # TX-_FL ; Repo TX-_J-FL

with $ 72.5,000 Funded on 8-24-01

08t21101

5

Margin account opened by Trust FBO Zac Stem at PatneWebber P_/Margin AccL Cash # TX_ ; Repo TX_

with $ 362,500 on 8-2.4-01

Funded

08/21101

8

Margin accournt opened by Trust FBO Abigail Stem at PalneWebbe`r with $ 362,500 PW Matl#n Acct. Cash It _ ; ReDo "rx-_-L Funded on 8.-24-01 Matin account opened by CWC..I at PalneWebb_r ; Rape "rx_-FL

08/21101

7

PW Margin Acct. C_._h # TXI_&:L 08/24/01 8

IVlargln account opened by R, R, M & C Gn>up, LP. edlPaineWebber PW Ms, gin Acct. Cash # TX_-'L ; Rape TX_

0B.rZ4101

9

Maqgln account oparmd by R, R. M & C Parb_ena, LL_C. at Pe`lneWebber PW Margin Acct. Cash # _FL ; Rape TX_L Rk:hard Sands executes _ short _._1o of U.S. Treasuries ('Pngceeda-_ 23,4.51,Sb-'L50_ In his PalneWebbor acc.ounL Robert Sends execcrta_ a chert sale of U.S. TnsasuHes {Proc_ede...$ 23,451,562.50) In hie, PelneWc'bber sccounL Marllyn Sands executes e short sale of U S. Treasuries (Procoeds_ 23,451,567.50) In his PalneWabbor account. T'rt_ FBO Zac Stem exeeuto_ e ehort sale of U.S. Treasuries {P;oceeda4 7,647.248 65) In its P_n_Wobber ar.¢ounL Tr_st FBO Ab|gel| Stem executes (Proc.ee¢l_ a abort sale of U.S. Treasurlee ac¢ounL

j

08,_3/01

10

08/23101

11

08/23,'01

12

08/23/01

13

081Z3f01

14

7,647,24.8.65") in It= PalneWebber

copyright2(;01 Tile tlo_tt_geO_Bn_=_on, LLC

)

SANDS 11444

DOJ-017622

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 23 of 24

i_endez-· " _ "*....

- ....................... M003D45C0DCX

.......

'

.........................

_

. ........

...........................

__i._

e _)i

O

09/_4/2001

F'IRI It.nO

FAX

_008

IMPLEMENTATION LIST FOR SANDS FAMILY
Format;on 0812.1/01 15 of Entitles andtBemk Accounts

I

Create R, IV,,M & C Management Too ID'B43-1936515

Corl_oration (Missouri

8-Corporagon). for 50% for 50%

5a R/chard makes a ¢ontrg_utfon of cash ($ 55,000) In return of company stock as of 8-23_1. 15b Robert makes e contdbulHor_ of cash (S 55,000) In rstum of company stock as of 0-23_1. 1So File 8- Election ss of 8/23/O1, Ft]ed 8/30/01.

Done

16

Set up Benk account for R, R, M & C Managommnt CorporaUon. Merrill Lynch AccL # Form R, R, M & C Group, LP. (Missouri Flied 8/23/01 - Tax ID# 43-1938519 Umffed Partnership)

08/23/01

17

Done

16

Set up Bank account for R, R, M & C Group, LP. Merrill Lynch Acct. g Trust FBO _ # "rx-_i-FL (PalneWebber Stem r.onbrll_d_s assets end obllgalJons of PalneWebber ; Repo TX_ (open short) to an eccount of CWC4 Acct II _L; "rX-_FI.}. acct.

08R7/0t

19

08/27/01

20

Trust Fen Abigail Stem c0ntrlbut_= oesst._ and obligations of PaJneWsbber lit TX-_FL ; Rope TX_ (open shod} to an account of CWC-I (PelneWebber Acct. g "I-XJJ-L; 1-X-._).

acct.

08/28/01

21

R/chard conbdbutJ_ esset8 and obllgeUort_ of pelrmWebber acct. # TX._FL Rope _F-L end 500K shards of STZ to an account of R, R, M & C Group,

;

j

LP. (PW Acct. In AddllJon, RJ¢]'w_d conblbutes_ Interests. Gash # TX_ ; Rap(> TX_I.FL125,000 In exchange account of R., ) cash to an for 24.97P,{, R, M & C Group, LP. (ML Acct. _ 08/28/0t 22. to meet any addlUon_l cash needs.

Robed contributes assets and obllgatJovm of PalneWebber _ 0 TY_-FL ; Rope "rx_rFL and 500K I;har_ of S1-Z to an accoLmt of R. R, M & C Group, LP. (PW Acct. Cash # _ ; Rope TX_) In exchange for 24.975% LP. fnteree_. In Addition, Robed contributes _F'_,000 c_.sh to an =ccou_t of R, R, M & C Group, L.P, (ML Acct. i_ _to meet any add]ffonal of PelneWebber c_sh needs. ;

08/28/01

23

Marllyn contdbutss

_s_sts and obllgstlons

ac_L # TX_

Repo "I"AI_FL and 500K simms of 8T-Z to an account of 1t, R, M & C Group,, LP. (PW_r_x;L Crash # _ ; Rope TX,_fL) In exchange _ 24.975 V, liP. lnter_la. In Addition, MiniOn1 conlTIbulcus _ 125,000 C_LShto an ac¢ourd of R, R, M & C Group, LP. (ML Acct. __llto meet any addlUo¢_U caz_h needs.

I_01 1110 Ho._go Ollm,1.:_lJ_.. LLC.

SANDS 11445

DOJ-017623

Case 1:06-cv-00407-ECH

Document 106-6

Filed 07/02/2008

Page 24 of 24

PB/14/20D1

FRI

11:00

PXl

_007

IMPLEMENTATION LIST FOR SANDS FAMILY
08f2_01 24 CWC.4 contributes Rape TX_ _ssets and 0bllgalJons 0f PaJneWebl0er acct., g "I'X._rT:L ; and 500K shams of S17. to an account of R, R, M & C Group,

L.P. (PW Acct. Cash # "13_4=L ; Rape TX._JF1.) In exchange for 24.975% LP. Interests. In AddltloR, CWC4 contribute= $125,000 cash to an account el R, R. M & C Group, I..p. (ML Acct. _ to meet any add_onal cash needs. 08/2_/01 2.5 1%-1% & C Management Corporation contn'butea 2002 shane= of STZ and cash M ($ 3,403.40) to I% R, M & C Group, L.P. In exchange for a .t% GaP. Inter_sL

Formation 08/23/0t 09/04J01 08131101 27 26

of I_ R, M & C Par_nerek LLC. RIed 8/23/0f, Teu¢ID_ 43-t93_5t9

Form R, R, WI & C Partners, LLC.. OperaUng Agreement

Dated 8/30/0t

R r R, M & C Group, I_P. contrlburtoa assets of PalneWebber account # T_[-FL ; Rape 7"X,_FL (I,095,025 Shares of 81rz, o_nshort} to an accc=Jmt of 1% R, M & C Parblmm, LLC. (PelneWebber AccL # T_i_FL ; 1"X_CL) In exchange for Member Intel_ets. In Addition, BOB,97"/Shares of s'Ir-Z contrilbuted In certificate form. Gloria Robinson contributes for Member Interest TrermelCtlon Involving cash worth $ 25D,000 to R, R, M & C Partners, 1LC.

0B/31101

28

RL, , M 8 C Pau_lers, R

LLC. Settle on 9107/01

09/06f01

29

R, I_ M & C Partners, LL.C clos0s the open short pos_ona. (PW Margin Atoll CaSh U TX.JL ; Rope TX_L)

09110101 ] '_ 09H0t01

30

R, R, M & C Group, L.P. pur_haseu MembeT Interest3 in 1%R, M & C Part]_ers, L.LC. from Gloria Robinson. 1%R, M & C Group, LP wtn_d from Its Merrtll Lynch Acct. _, tO an a¢.-¢ount of Glads Robinson as payment for the purcharm R, R, M & C Partnsr_, LI_C. St_ps Rcqulr_d foe Completion ot Tran.s._-'don $ 227,278.71 of her IntoresEs In

31

3;Z 33 34 35 36 37

Raps & Wnrr_ntles

completed by Lewis Rl_e & sent to raspectlve parses pallJos

Oplldon Letler compleU)d by t_a_,l= Rlc_ and sent to _spacll've Tax Return filed for R, It, M & C Management Tax Return flied for R, R, M & C Parlnc_. Corporation.

LEe.

Tax Return filed for R, R, M & C Group, LP. Provide Family wtlh or_Blna_ documents regarding trarmactlon.

Cop/right 2001 TheHor_Oo O_0enL=Lton, LLC.

SANDS

11446

DOJ-017624