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(6) Madison simultaneously entered into a joint venture
agreement with PI and Resin Recyclers, Inc. (RRI), to “exploit”
the recyclers and place them with end-users.
(7) Under the joint venture agreement, Madison received a
fixed monthly “joint venture fee” of $80,000, which is equal to
the monthly lease payment made to F&G. The joint venture fee was
to commence 9 months after the joint venture agreement closed.
(8) After the transactions were completed, the four
recyclers were owned by F&G.
C. Madison Subscription Agreement
Mr. Greer signed a completed, notarized Madison Subscription
Agreement and Purchaser Suitability Representations (Madison
subscription agreement), required for purchasing a limited
partnership interest in Madison during 1982. At the time Mr.
Greer executed the Madison subscription agreement, he did not meet
the net worth suitability (net worth exceeds $1 million) for
purchasing an interest in Madison. Mr. Greer submitted his
subscription agreement to purchase an interest in Madison using
another option, in which he acknowledged that he did not meet
either the net worth or annual net income suitability test to
purchase an interest in Madison but represented and warranted that
he had sufficient business knowledge and financial knowledge, and
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Last modified: November 10, 2007