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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 12, 1996
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(December 6, 1996)
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Datronic Equipment Income Fund XVIII, L.P.
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(Exact name of Registrant as specified in its charter)
Delaware 0-18650 36-3639399
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(State or Other (Commission (IRS Employer
Jurisdiction of file number) Identification
Incorporation) Number)
1300 E. Woodfield Road, Suite 312 Schaumburg, Illinois 60173
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(Address of principal executive offices) (City, State, Zip Code)
Registrant's telephone number, including area code (847)240-6200
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ITEM 5. OTHER EVENTS.
On December 3, 1996, the United States District Court for the Northern
District of Illinois, Eastern Division, approved, effective July 1, 1996, the
termination of the management agreements ("Management Agreements") pursuant to
which New Era Funding Corp. ("New Era") was providing management services to
Datronic Equipment Income Fund XVI, L.P., Datronic Equipment Income Fund XVII,
L.P., Datronic Equipment Income Fund XVIII, L.P., Datronic Equipment Income
Fund XIX, L.P., Datronic Equipment Income Fund XX, L.P., and Datronic Finance
Income Fund I, L.P. (collectively, the "Partnerships"). Upon the termination of
the Management Agreements as memorialized in a Management Termination
Agreement, Lease Resolution Corporation, the Partnerships' general partner,
assumed responsibility for the operating management of the Partnerships.
Under the terms of the original Management Agreements, New Era was
entitled to a management fee in the minimum annual amount of $170,000 for each
of the six Partnerships plus the salaries and benefits for New Era's three
principals. This amounted to total compensation to New Era of approximately $2
million per year for all six Partnerships. The Management Agreements were
scheduled to terminate upon the earlier of March 31, 2003, or the date upon
which the Partnerships were liquidated.
Pursuant to the terms of the Management Termination Agreement, on
December 6, 1996, New Era was paid an aggregate termination fee of $3.2 million
plus accrued interest from July 1, 1996. Additionally, an aggregate amount of
$1 million plus accrued interest from July 1, 1996 was paid to the three
principals of New Era in exchange for their agreement not to compete with the
business of the Partnerships for a period ending July 1, 1998. The
registrant's share of these two payments was $830,304.
As part of the Management Termination Agreement, two of the principals
of New Era have been retained as consultants to the Partnerships for the period
of July 1, 1996 through March 31, 1999. Their consulting agreements provide
for monthly payments aggregating $200,000 annually per consultant, which is
equivalent to their current compensation, in exchange for their consulting
services. These amounts will be charged to the Partnerships in the same manner
as their previous compensation would have been charged.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized, on the 12th day of
December 1996.
DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
Registrant
By: /s/ Donald D. Torisky
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DONALD D. TORISKY
Chairman and Chief Executive Officer
Lease Resolution Corporation
General Partner of
Datronic Equipment Income Fund XVIII, L.P.
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