- 4 -
F&G leased the recyclers to Foam under a lease term of 9-1/2
years, and the partnership entered into a joint venture with PI
to “exploit” the recyclers and place them with end-users. The
partnership also agreed to pay a $50,000 consulting fee to John
Bambara, president and controlling shareholder of PI.
In connection with these transactions, PI was required to
pay a monthly joint venture fee to Foam, in the same amount as
Foam’s monthly base rent to F&G, in the same amount as F&G’s
monthly payment to ECI on the F&G note, in the same amount as
ECI’s monthly payment to PI on the ECI note. All of these
entities, however, entered into offset agreements making the
foregoing payments nothing more than bookkeeping entries.
By a private placement offering memorandum (offering
memorandum) prepared by the law firm of Windels, Marx, Davies &
Ives dated August 30, 1982, 12 limited partnership units in Foam
were offered to potential investors at $50,000 per partnership
unit. Pursuant to the offering memorandum, the limited partners
would own 99 percent of Foam, and the general partner, Richard
Roberts, would own the remaining 1 percent. As provided by the
offering memorandum, each limited partner was required to have a
net worth (including residence and personal property) of more
than $1 million or have income in excess of $200,000, for each
investment unit.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011