- 80 - pending in docket No. 3462-92. Respondent has agreed that such an adjustment would be appropriate if we so determine. On January 1, 1988, Fred prepared a Termination Agreement to end the obligations of MIT 86 and MPC under the employee leasing agreement. MPC owed $4,266,993.53 to MIT 86 pursuant to the employee leasing agreement. Under the Termination Agreement, MPC offered to pay $3,175,000 to MIT 86 by transferring to MIT 86 the $3,080,000 note made by Qulart to Machise, now held by MPC, with a balance, including accrued interest, of $3,175,000.67. No formal assignment of this amount took place, however. The Termination Agreement also recited that, after MPC assigned the Qulart note to MIT 86, the balance due to MIT 86 would be $1,091,992.86. The Termination Agreement further provided that MIT 86 had agreed to reduce that balance by $14,685.86 and to cancel the 10-percent annual late charge. Fred computed the net amount due to MIT 86, some $1,077,307, so that it would equal the amount that he had projected as the aggregate income to the MIT 86 investors. Additionally, under the Termination Agreement, MIT 86 was required to distribute the Qulart note to its partners. They were to direct MIT 86 to assign that note back to Qulart, the note's maker, in payment of amounts they owed Qulart on their investor notes. No formal assignment of this note, however, was ever made.Page: Previous 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Next
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