Donald L. Walford - Page 5

                                        - 5 -                                         
          Dard as collateral for Nisona’s nonrecourse note.  The PPM                  
          further states that Dard purchased the EMS for $337,500 in 1980             
          from Consumer Energy Funding, Inc. (CEF), an unrelated party.               
          According to the PPM, CEF was organized in 1980 and had limited             
          experience in the field of energy management and in the care or             
          supervision of systems similar to the one being acquired by Sav-            
          Fuel.                                                                       
               The PPM states that CEF entered into a user agreement with             
          Gould dated September 30, 1980.  CEF was to operate and service             
          the energy management equipment to be installed at the Gould                
          manufacturing plant.  Under the user agreement between CEF and              
          Gould, Gould was to pay CEF 50 percent of the gross energy                  
          savings realized from the use of the energy management equipment.           
               Sav-Fuel was to enter into a management agreement with CEF             
          sometime around November 1980.  Pursuant to the agreement, CEF              
          was to install and manage the EMS in exchange for certain                   
          management fees.  CEF was to retain 15 percent of the amount                
          received from Gould and was to remit the remaining 85 percent to            
          Sav-Fuel.  Taking into account Sav-Fuel’s obligation to Nisona,             
          Sav-Fuel was to be entitled to 8.5 percent of any savings                   
          generated by the EMS.  It is unknown whether the EMS was                    
          installed at Gould’s manufacturing plant and whether it ever                
          produced substantial energy savings.                                        








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