Investment Research Associates - Page 442




                                       - 492 -                                         
               IRA also executed in favor of Horizon a promissory note                 
          dated December 31, 1980, in the amount of $120,000, and another              
          promissory note dated December 31, 1980, in favor of Horizon in              
          the amount of $111,900.57                                                    
               Pursuant to the transaction for the sale and leaseback of               
          the computer equipment, Funding International executed a                     
          collateral assignment of leases to IRA.                                      
          F.   Cedilla Invest. "Lexet Transactions"                                    
               On December 22, 1986, Cedilla Invest. purportedly purchased             
          certain IBM-manufactured computer equipment from Lexet Leasing               
          Corp. (Lexet) for a stated purchase price of $1,260,016.  This               
          equipment had been previously or simultaneously acquired by Lexet            
          from Beta Gamma Leasing Corp., which entity had previously or                
          simultaneously acquired the equipment from O.P.M.  The equipment             
          was subject to an end user lease with General Motors Corp.,                  
          Cadillac Division, Detroit, Michigan.                                        
               The stated purchase price of $1,260,016 was, according to               
          the terms of the purchase agreement, payable as follows:  $6,300             
          in cash on the date of the agreement; a short-term promissory                
          note payable on May 15, 1987, in the amount of $69,300; and a                
          long-term "limited recourse" promissory note in the amount of                
          $1,184,416.  Under the terms of the "limited recourse promissory             
          note", Cedilla Invest. was only personally liable during the                 

          57                                                                           
               The record contains no explanation for these notes.                     





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