Frank E. Acierno - Page 12

                                       - 12 -                                         
          years it was nominally due, through the following combination of            
          cash and partnership promissory notes:                                      

                                Per Partnership Unit                                  
                                             Partnership                              
                       Year     Cash        Promissory Note                           
                         1      $3,500          $ 46,500                              
                         2      2,800           47,200                                
                        3      2,000           48,000                                
                         4        -0-           50,000                                
                        5        -0-           50,000                                
                                                                                     
               Drake’s purported debt obligations to Hemisphere with regard           
          to the above technology license fees were never reduced to                  
          written promissory notes.                                                   
               By executing the subscription agreements with regard to                
          their investments in Drake, each limited partner of Drake                   
          purported to assume personal liability on Drake’s stated debt               
          obligations to Hemisphere under the technology license agreement            
          to the extent of the unpaid portion of each limited partner’s               
          per-unit stated $112,500 deferred capital contribution obligation           
          to Drake.                                                                   
               Other related partnerships, under similar license agreements           
          of the same EOR technology, agreed to stated debt obligations to            
          Hemisphere in total stated principal amounts ranging from $7.2              
          million to $87.7 million, and the total principal amount in each            
          case depended on the number of limited partnership units that               
          were sold to investors.                                                     






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011