Investment Research Associates - Page 576




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               by the transfer to the Partnership of a 20 percent                     
               interest in the $287,046 of purchase money mortgages                   
               relating to the condominium units at 535 North Michigan                
               Avenue.  Accordingly, after satisfying its share of the                
               cash capital contributions, The Holding Company's                      
               remaining obligation to FWID is $88,387.46.                            
                    The Holding Company now should satisfy its                        
               obligation for the cash contribution to the Partnership                
               by transferring $29,913.80 in cash to it.  The Holding                 
               Company should satisfy its obligation to FWID for the                  
               transfer of the cash equivalents by paying FWID                        
               $86,789.54.  In addition, The Holding Company should                   
               satisfy its responsibility for the balance of                          
               $88,387.46 by signing a note for this amount payable to                
               FWID and pledging as security either third-party paper                 
               or other acceptable collateral.                                        
                    The note should provide for cash payments as the                  
               Partnership realizes cash from the capital                             
               contributions to it.  I believe that you should discuss                
               the procedures regarding the issuance of the $88,387.46                
               secured note with Jim Wold or, in my absence, my                       
               associate, Claire Pensyl.                                              
                    The remaining item is, as noted above, for The                    
               Holding Company to confirm its agreement to remit its                  
               share of Partnership distribution to FWID.  The Holding                
               Company's agreement is to remit distributions (a) only                 
               after The Holding Company has received Partnership                     
               distributions equal to The Holding Company's original                  
               capital contribution of $262,500 and (b) then only in                  
               an amount equal to 13.125 percent of the amount                        
               realized by the Partnership from all the items shown on                
               Part II of Appendix A.  The 13.125 percent equals The                  
               Holding Company's share of all Partnership                             
               distributions under Section 3.2 of the Agreement of                    
               Limited Partnership.                                                   
               In January 1985, approximately 6 months after the formation            
          of the partnership, TSG Holdings purchased additional interests             
          in the Frey partnership for $1,382,575, of which $241,950 was               
          payable to Holding Co.  The purchase price was paid to Holding              







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Last modified: May 25, 2011