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In the March 2, 1990, addendum to the written purchase
contract between petitioner and Boats, Yachts & Ships, it was
stated that approximately $300,000 of the proceeds to be received
from petitioner on his purchase of the Feadship would be used by
Boats, Yachts & Ships to pay for a “complete refurbishment” of
the Feadship.
Although Mark Mogul and Norman were not required to share in
either the subsequent costs of restoration or maintenance of the
Feadship, in the written contract dated March 1, 1990, petitioner
agreed to share with Mark Mogul and with Norman all of the
profits realized on a subsequent sale of the Feadship by
petitioner. Under this contract, on a subsequent sale of the
Feadship, petitioner was to retain 75 percent of any profits, and
Mark Mogul and Norman were to divide equally 25 percent of any
profits.
At the time of his purchase of the Feadship in March of
1990, petitioner had no written business plan for the restoration
and resale of the Feadship, and, at trial, petitioner had no
recollection as to how the above percentage split of any profits
that might be realized on a resale was agreed to.
On May 9, 1990, a second marine survey of the Feadship was
prepared. Therein, it was stated that the fair market value of
the Feadship was $1.85 million, that if the Feadship was restored
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