Robert D. and Patricia K. Kaliban, et al. - Page 15

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            else, whether any plastics recycling machines comparable to the                           
            Sentinel recycling machines already were available on the market.                         
                  Feinstein has no education or experience in plastics                                
            materials or plastics recycling, and he was not under the                                 
            impression that Hirshfield, Trost, or Ferraro had any significant                         
            education or experience in the plastics industry.  He did not                             
            visit PI, and he did not indicate that he ever saw a Sentinel EPE                         
            recycler.  Feinstein did not review any marketing plans or                                
            research the market for plastics recyclers or recycled ground                             
            resin pellets.  He was unaware that the Sentinel EPE recycler was                         
            incapable of recycling expanded polyethylene by itself, and had                           
            to be used in a system of grinders, extruders, and pelletizers.                           
            Feinstein did not know how many other partnerships would be                               
            leasing Sentinel recyclers.  Neither Feinstein nor Lauren                                 
            invested in any of the Plastics Recycling transactions.                                   
                  Feinstein told Alter about Lauren and his comments about PI.                        
            Alter knew that Lauren and Feinstein had not visited PI, or                               
            investigated whether competitive machines existed, or made a                              
            judgment as to the value of a Sentinel EPE recycler.  He also                             
            knew that neither Feinstein nor Lauren personally invested in a                           
            Plastics Recycling transaction.  Alter accepted the fair market                           
            value of the Sentinel EPE recycler as set out in the Poly                                 
            Reclamation offering memorandum.  He had "no competence to"                               
            confirm the value of the machines or "to do any comparison", and                          
            did not hire anyone to value the machine.  Like Feinstein, Alter                          

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