Spyglass Partners, Richard E. Shea, Tax Matters Partner, et al. - Page 4

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          that were to be recorded at the time the July 2, 1984,                      
          installment was paid.  The sellers also agreed to subordinate the           
          December 2013 installment payments to any permanent financing               
          obtained by the partnerships.  The December agreements also                 
          recited that "All of the burdens and benefits of ownership of the           
          subject property are transferred from * * * [seller] to * * *               
          [the purchasing partnership]" and "This document, may at the                
          mutual consent of * * * [the parties], be superseded by a more              
          formal contract of sale, as long as said contract does not change           
          the terms and conditions outlined herein."                                  
               On or about December 30, 1983, the partnerships and                    
          condominium sellers executed 69 separate informal memoranda of              
          condominium purchase agreements (December memoranda).  The                  
          memoranda referenced the December agreements and had descriptions           
          of the specific condominium units under contract attached to                
          them.  They also required the parties to cooperate in recording             
          any documents necessary to evidence any termination of the                  
          December agreements.  The December memoranda were recorded with             
          the local county's recorder's office.                                       
               The seller of 3 groups of 16 condominium units (or a total             
          of 48 units) had entered into purchase agreements during November           
          1983, after the builder's initial default on its construction               
          mortgage with Western Savings and Loan Co. (Western Savings).               
          The seller of 3 groups of 7 condominium units (or a total of 21             
          units) purchased the units from the builder during the last few             



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