Mark Friedman - Page 8

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          Corp. and licensed them to FMEC Corp., the transactions of the              
          Partnerships do not differ in any substantive respects.                     
               For convenience, we refer to the series of transactions                
          among PI, ECI Corp., F & G Corp., each of the Partnerships, FMEC            
          Corp., and PI as the Partnership transactions.  In addition to              
          the Partnership transactions, a number of other limited                     
          partnerships entered into transactions similar to the Partnership           
          transactions, also involving Sentinel EPE recyclers and Sentinel            
          expanded polystyrene (EPS) recyclers.  We refer to these                    
          collectively as the Plastics Recycling transactions.                        
          B.  The Partnerships                                                        
               Clearwater and Poly Reclamation are New York limited                   
          partnerships.  Poly Reclamation and Clearwater each closed during           
          the latter few months of 1981.  Samuel L. Winer (Winer) is the              
          general partner of both Clearwater and Poly Reclamation.                    
               With respect to each of the Partnerships, a private                    
          placement memorandum was distributed to potential limited                   
          partners.  Reports by F & G Corp.'s evaluators, Dr. Stanley M.              
          Ulanoff (Ulanoff), a marketing consultant, and Dr. Samuel Z.                
          Burstein (Burstein), a mathematics professor, were appended to              
          the offering memoranda.  Ulanoff owns a 1.27-percent interest in            
          Plymouth Equipment Associates and a 4.37-percent interest in                
          Taylor Recycling Associates, partnerships that leased Sentinel              







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