Investment Research Associates - Page 574




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          available cash-flow.  Generally, the purpose of the partnership             
          was to conduct business activities related to development of                
          condominiums and cooperatives and property management.                      
               TSG Holdings, Inc. contributed $750,00 to the Frey                     
          partnership.  Transcontinental Services Group, N.V., a                      
          Netherlands Antilles corporation and TSG Holdings, Inc.'s parent            
          corporation, lent $1.75 million to the Frey partnership.                    
               In addition to other assets contributed to the Frey                    
          partnership, the remaining partners assigned their right to                 
          receive fees under other management, consulting, and/or                     
          partnership agreements, including the Village of Kings Creek,               
          Lakewood, Calais, Chatham, Valleybrook, The Greens, and Galaxy              
          Towers that had previously been subject to the letter agreement             
          between Holding Co. and the Frey corporation.  The partnership              
          agreement also listed two participation agreements with "Burton             
          J. Kanter" regarding certain condominium conversions.  The                  
          agreement indicated that the two participation agreements had               
          been canceled with respect to new condominium conversions.                  
               A letter dated June 20, 1984, to Kanter described Holding              
          Co.'s obligation to contribute to the capital of the partnership            
          as follows:                                                                 











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