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be paid to petitioner and Weisel upon exercise of the option was
$1 million each.
Part of the consideration received by petitioner and Weisel
for entering into the option agreement was the promise by the
Tisch group to fund the Biomass lawsuit upon agreement being
reached among the Tisch group, petitioner, and Weisel as to the
strategy and approach to be followed in that litigation. Among
the conditions precedent to the Tisch group’s exercise of its
option under the option agreement was that Weisel be given the
opportunity to enter into an agreement with Biomass providing
Weisel the right to receive 7.5 percent of the gross recovery
from the Biomass lawsuit.
The option agreement also provided that, once the Tisch
group exercised its option, petitioner would resign as managing
general partner of Biomass and Weisel would resign as both a
managing general partner and a general partner of Biomass.
The Tisch group exercised its rights under the option
agreement with respect to both petitioner and Weisel. After that
exercise, in accordance with the option agreement, petitioner
retained a 2.2-percent interest in Biomass that would become a
12.262-percent interest in Biomass after the 60th month of
commercial operation of the cogeneration facility, and Weisel
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Last modified: May 25, 2011