Bruce and Lois Zenkel, et al. - Page 21

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               Leicht gave Sprague a copy of the Phoenix offering                     
          memorandum, and he reviewed it over a couple of days.  Sprague              
          was a complete stranger to the idea of plastics recycling and was           
          incapable of evaluating the technical or engineering details                
          associated with the investment.  Thereafter, he discussed the               
          investment with Leicht, and Leicht described his visits to PI.              
          Becker stated that he too discussed the investment with Sprague             
          and disclosed the extent of his investigation; Sprague, however,            
          could not recall their conversation.  Sprague did not otherwise             
          investigate the Plastics Recycling transactions; he relied                  
          exclusively on the offering materials and Becker Co.                        
               During this time, Sprague saw Blount on business occasions             
          and also lunched with him about once a month.  At one such lunch,           
          the two were discussing investment opportunities when Blount                
          mentioned that he was going to receive additional compensation              
          income.  Sprague suggested the Plastics Recycling transactions as           
          a potential investment and in general terms recounted the                   
          information he had received from Leicht.  He explained that as a            
          service to clients, Becker Co. screens such investments--not to             
          guarantee them--but to determine generally if the proposed                  
          investments are something their clients should look into.                   
          Sprague suggested that Blount contact Leicht or Becker, but                 
          Blount never spoke to either of them.  Blount simply reviewed the           
          offering memorandum for a few hours and gave it to his tax                  
          preparer, Marilyn Gowin (Gowin).  Gowin reviewed all supporting             




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