Stanley P. Zurn - Page 10

          the Century project.  After the six payments were made, title of            
          the equipment would pass to Cities.  Ms. Jackson, who had                   
          attended 1 year of law school, drafted the lease agreement for              
          the leasing transaction with petitioner.  Petitioner remained               
          responsible for the maintenance of the equipment.  Petitioner               
          paid Cities’ $40,000 insurance premium to cover the heavy                   
          equipment used in the Century project.  A one-paragraph August 1,           
          1986, document entitled "AGREEMENT" recites that "Cities agrees             
          to pay Stan Zurn 50% of its net profits on the MCM project as               
          compensation and fees for acting as a joint venturer by advancing           
          funds for construction and equipment purchases related to the               
          MCM/Cities project."                                                        
               On September 30, 1986, Ms. Jackson prepared an agreement               
          acknowledging receipt of $90,000 from, and a promise to repay               
          $100,000 to, petitioner.  At this time, Cities expected to obtain           
          approval for a line of credit.  Accordingly, Ms. Jackson executed           
          an "Assignment of the Progress Payments" to document petitioner’s           
          right to the payments if he chose to enforce his claim.                     
               The Century project began in September 1986.  In a September           
          30, 1986, letter, Ms. Jackson, as president of Cities, assigned             
          all MCM progress payments to petitioner.  On October 17, 1986,              
          Ms. Jackson executed an agreement for the benefit of petitioner.            
          The agreement, which referred to petitioner as a "silent joint              
          venture partner", provided that Ms. Jackson promised to reimburse           

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