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entity with no operating history and is subject to all the risks
inherent in starting a new business.”
The offering memorandum further advises that
management of [Madison’s] business will be dependent
upon the services of [Mr. Roberts] who has had limited
experience in marketing recycling or similar equipment
and who is required by the Partnership Agreement to
devote only such time to the affairs of [Madison] as he,
in his absolute discretion, deems necessary
and that Mr. Roberts had other business commitments that would
require a substantial portion of his time and efforts. The
Madison limited partners, including Mr. Greer, had no control over
the conduct of Madison’s business. The offering memorandum
explains that a Sentinel EPS Recycler has “no history of
commercial use, there is no established market for its sale, lease
or license, and there can be no assurance that PI (Packing
Industries Group, Inc.) will meet its obligations under the
aforementioned warranties.” The offering memorandum also points
out risks that the recycled resin pellets may not be marketable
and that the price would fluctuate.
The offering memorandum also states that Mr. Roberts, the
general partner of Madison, may have a potential conflict of
interest with the limited partners of Madison because Mr. Roberts
is not prohibited from engaging in activities that compete with
Madison and that he is a general partner in other partnerships
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Last modified: November 10, 2007