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| sygaxfag Page 4 of 7 . . In 1983 Gary was instructed by the board to go out to California and set up TSR Entertainment Corp., a company owned by the Exempt Profit Sharing Plan of TSR. He did so, changing the name of the operation to Dungeons & Dragons Entertainment Corp. after discovering that the entertainment business community there would not do business with TSR. DDEC had the D&D Cartoon Show and several other fledgling projects underway. It was responsible for the closing of the deal whereby Speilberg licensed the name, AMAZING STORIES, from TSR. Gary returned to Lake Geneva in the winter of 1984 because Ti 2 was in debt and the bank was threatening to force it into bankruptcy. Associates of hitgalled to inform him that Kevin Blume was shopping the company on the sired is said, out in New York City. By this time the Blumes had forced him to accept three "outside" directors on the oard. The Biumes had embraced the precepts of the now-defunct American. anagement Association. It was inept at promulgating even manufacturing ideals, in Gary's opinion. These three petty businessmen, two executives and a lawyer, were absolutely ignorant of the gaming business, and under their direction, and with the Blumes leading the way, TSR had accumulated $1,5 million debt that they couldn't figure out how to pay: amongst their ideas were the dropping of the RPGA and the sale of DRAGON Magazine. After some thought, Gygax presented a long letter to the entire board, outlining the mismanagement of TSR by Kevin Blume, and demanding his resignation and replacement. The board voted four to two, the Blumes abstaining, to remove Kevin and put in place a pro-tem president, one Richard Koenigs. With direction form Gary and other executives of the company, some 90 relatives of the Blumes were removed from the payroll, various corporate owned and leased cars, scores of them, were gotten rid of, unused system office furniture owned and leased was likewise sold or returned. and two major releases were rushed into print--UNEARTHED ARCANA and ORIENTAL ADVENTURES. By April 1985. the corner had been turned, and the American National Bank was no longer glowering and considering pulling the loan plug, so to speak. It must be noted that the bank was not only not helpful, they were quite obstructive in getting the corporation back on its feet, in Gary's opinion. Prior to the April date, Gygax exercised an option he held, putting many thousands of dollars into the plus side of the corporate ledger, and also assuming a bare majority control thus. He than took the office of the presidency, and told the three “outside” directors that their days were numbered. They had,, he said, "pontificated business" while the company went to near ruin. Not surprisingly, these three sterling individuals were aligned with Williams and the Blames in the dispute over whether or not the latter could sell their shares, and an additional 700 they secretly purchased by option exercise. to thus allow Lorraine Williams majority control of TSR. FBI(19-cv-1495)-227|