Jeffrey I. and Roberta H. Stone - Page 14

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          there were other comparable machines on the market; and he did              
          not ask anyone about the market for the Sentinel EPE recycler.              
               Stone reviewed the Northeast offering memorandum and spoke             
          with Tomasetti about the visit to Hyannis.  Stone knew that                 
          Tomasetti had no expertise in plastics, and Tomasetti never told            
          Stone that he had consulted with, or intended to consult, anyone            
          who was not associated with PI or the Partnerships.  Stone knew             
          that Tomasetti was unsure about the value of the Sentinel EPE               
          recycler, but the value of the machine did not concern Stone.  He           
          also knew that Tomasetti received a commission for sales of                 
          partnership interests.  Stone did not investigate the existence             
          of competing suppliers or manufacturers, or the existence of a              
          market for the recyclers.  Except for two or three discussions              
          with Tomasetti, Stone did not independently, or through any third           
          parties, investigate PI or the plastics recycling industry.                 
               Cote spoke with people at Merrill Lynch about leasing                  
          transactions in general, recycling, and speculation about the               
          price of oil.  He did not supply anyone with the Hyannis offering           
          memorandum or pay for an evaluation of Hyannis, nor did anyone              
          prepare any kind of report for him.  Cote and Frabotta understood           
          from a client, Global Marine, Inc., an offshore drilling company,           
          that there was speculation that the price of oil could rise.                
          Cote spoke to a representative of Finkle & Co. about Hyannis' tax           
          benefits.  He was aware that Burstein had a potential conflict of           
          interest, that there was no established market for the recyclers,           

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