Janet L. Wiest - Page 13




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          H.  Cautionary Language in the San Nicholas Offering Memorandum             
               The face of the offering memorandum warned, in block                   
          letters, that “THIS OFFERING INVOLVES A HIGH DEGREE OF RISK”.               
          The offering memorandum also included the following cautionary              
          language in block letters:                                                  
               PROSPECTIVE INVESTORS ARE CAUTIONED NOT TO CONSTRUE                    
               THIS MEMORANDUM OR ANY PRIOR OR SUBSEQUENT                             
               COMMUNICATIONS AS CONSTITUTING LEGAL OR TAX ADVICE.                    
               * * * INVESTORS ARE URGED TO CONSULT THEIR OWN COUNSEL                 
               AS TO ALL MATTERS CONCERNING THIS INVESTMENT.                          
                        *     *     *     *     *     *     *                         
               THERE IS NO PUBLIC OR OTHER MARKET FOR THE UNITS, NOR                  
               WILL SUCH MARKET DEVELOP.                                              
                        *     *     *     *     *     *     *                         
               THE PURCHASE OF SUCH UNITS DESCRIBED IN THIS MEMORANDUM                
               INVOLVES A HIGH DEGREE OF RISK (SEE “RISK FACTORS”) AND                
               SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN AFFORD THE                
               TOTAL LOSS OF THEIR INVESTMENT.                                        
                    *     *     *     *     *     *     *                             
               EACH PURCHASER OF THE UNITS HEREIN SHOULD AND IS                       
               EXPECTED TO CONSULT WITH HIS OWN TAX ADVISOR AS TO THE                 
               TAX ASPECTS.                                                           

               In addition, the offering memorandum limited the sale of               
          partnership units to investors with a net worth (exclusive of               
          home, furnishings, and automobiles) of at least $150,000, or                
          investors whose net worth was at least $50,000 (exclusive of                
          home, furnishings, and automobiles) and who anticipated that, for           
          the taxable year of the investment, they would have gross income            
          of at least $65,000 or taxable income, a portion of which, but              





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