Spyglass Partners, Richard E. Shea, Tax Matters Partner, et al. - Page 3

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          June 1984.  Derrick was the managing general partner of each                
          partnership.  The primary business purpose of each partnership              
          was to acquire and hold for rental and resale, existing                     
          condominium units located in property developments near the Park            
          City, Utah, ski resort area.                                                
               During December 1983, Derrick made a $10,000 capital                   
          contribution and a $220,000 loan to each of the three                       
          partnerships.  At the end of December 1983, Derrick, on behalf of           
          each partnership, drafted and executed informal purchase                    
          agreements (December agreements) to acquire condominium units.              
          Each partnership was to purchase 7 condominium units in 1                   
          development and 16 condominium units in another, for a total of             
          69 units.  The December agreements required a $10,000 downpayment           
          per condominium unit ($690,000 total), with the balances to be              
          paid in two installments:  One on July 2, 1984, and another on              
          either December 27 or 30, 2013.  The aggregate installment                  
          obligations of the partnerships are as follows:                             
                       16 Condominium Units       7 Condominium Units                 
          Partnership July 2, 1984 Dec. 27, 2013 July 2, 1984 Dec. 30, 2013           
          Pebble Beach $3,699,539   $11,602,773    $1,570,808   $4,362,378            
          Cypress Point 3,763,989    11,796,111     1,505,538    4,189,221            
          Spyglass      3,688,132    11,568,533     1,582,378    4,393,074            
          As an example, a single condominium unit had a $658,655 selling             
          price, a $154,284 first installment due July 2, 1984, and a                 
          $494,371 second installment due December 27, 2013.                          
               The December agreements, in addition to setting forth the              
          payment terms, required the sellers to place in escrow the deeds            



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