Viewing page 11 of 66

This transcription has been completed. Contact us with corrections.

3/26/86  Re: Serra w/ Castelli and Helman

The following is an attempt to set down the respective interests and relationships of Serra and Castelli concerning the 5 Serra sculptures in which Helman formerly had a joint interest with Serra and Castelli and which interest they acquired by the payment of $20,000 plus 3 Cut Piece, valued at $80,000, for a total of $100,000.

3 Cut Piece was another "jointly owned" piece, so that in transferring it to Helman, they were giving up a $60,000 equity in the sculpture plus the $20,000.

Of this $60,000, Serra owned $40,000 and Leo owned $20,000. At this point, therefore, Leo and Richard were each contributing $40,000, for a total of $80,000, the actual amount paid to Helman.

However, of the $20,000 cash paid by Leo, his agreement with Richard is that he will recover $10,000 of this amount by taking the first $10,000 from the proceeds of sale of the first of the 5 sculptures sold. The intention here was that Richard would be giving Leo $10,000 of the $20,000 he is advancing.

Previously, Richard had offered to settle with Helman for $10,000 of the $19,000 Helman owed to him. Therefore, the arrangement with Leo and Richard should have a structure so that the $10,000 comes from Richard's share of any sale. To take it off the top would mean that Leo would be paying $5,000 of the dealer's commission toward Richard's $10,000 promise to him.