Allan J. and Brenda Becker - Page 7

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          to F & G Corp. was paid in cash with the remainder financed                 
          through notes.  These notes provided that 10 percent of the notes           
          were recourse but that the recourse portion of the notes was only           
          due after the nonrecourse portion, 90 percent, was paid in full.            
               All of the monthly payments required among the entities in             
          the above transactions offset each other.  These transactions               
          were done simultaneously.  Although the recyclers were sold and             
          leased for the above amounts under the structure of simultaneous            
          transactions, the fair market value of a Sentinel EPE recycler in           
          1981 was not in excess of $50,000.                                          
               PI allegedly sublicensed the recyclers to entities that                
          would use them to recycle plastic scrap.  The sublicense                    
          agreements provided that the end-users would transfer to PI 100             
          percent of the recycled scrap in exchange for a payment from FMEC           
          Corp. based on the quality and amount of recycled scrap.                    
               The six Sentinel EPE recyclers purportedly leased by                   
          Clearwater were used infrequently and often were not in use at              
          all.  PI failed promptly to pick up the scrap and at times, did             
          not pay the end-user for the scrap that it did pick up.  Also, PI           
          sometimes failed promptly to reclaim the machines that were                 
          rejected by prospective end-users.  One of the six recyclers                
          bought by Clearwater, for example, was placed with four different           
          end-users in 4 years.  The first end-user refused to accept                 
          delivery of the recycler.  The second end-user found the recycler           
          to be too costly and noisy.  PI took 6 months to pick up the                




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