; (transform '(A 2 B 0 C 2 D 0 E 0)) => (A (B) (C (D) (E)))
(defun transform(l)
  (if (null l)
      nil
      (tree-sequence l)))

(defun tree-sequence(l)
  (case (cadr l)
    (0 (values (list (car l)) (cddr l)))
    (1 (multiple-value-bind (left-subtree rest-of-list) (tree-sequence (cddr l))
          (values (list (car l) left-subtree) rest-of-list)))
    (t (multiple-value-bind (left-subtree rest-of-list) (tree-sequence (cddr l))
          (multiple-value-bind (right-subtree rest-of-rest) (tree-sequence rest-of-list)
             (values (list (car l) left-subtree right-subtree) rest-of-rest))))))