- 3 - At the time the petition was filed, petitioner's principal place of business was located in San Diego, California. Prior to July 1, 1987, Karl Motsenbocker (Motsenbocker) owned 82.5 percent of the shares of stock in Peoplefeeders, Inc., a closely held California corporation that was the parent corporation of a group of affiliated corporations that owned and operated a chain of pizza restaurants under the name of Square Pan Pizza. In the summer of 1987, Jeffrey Partrick (Partrick) and three other individuals formed HPPW Restaurants, Inc. (HPPW), and on July 1, 1987, HPPW acquired for $3,317,560 all of Motsenbocker's shares of stock in Peoplefeeders and Motsenbocker's ownership interest in a related partnership. The $3,317,560 purchase price for the stock in Peoplefeeders and for the related partnership interest was reflected by and was to be paid as follows: Form of Payment Amount Cash at closing $ 167,560 Promissory notes* due: Sept. 1, 1987 150,000 Mar. 31, 1988 1,500,000 June 30, 1992 1,500,000 Total $3,317,560 * Interest accrued on the promissory notes at an annual rate of 3-1/4 percent over the prime rate.1 1 After July 1, 1990, the interest rate on the June 30, 1992, promissory note increased to 3-3/4 percent over the prime rate and after July 1, 1991, the interest rate on the third promissory (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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