William L. Richter - Page 7




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          broad powers “to do anything any citizen may do in any state or             
          country” and “to construe the meaning and intent of this Contract           
          and the Trustee(s)’ construction shall be conclusive, legally               
          binding and will govern.”                                                   
               According to certain minutes of Hawaii Environmental                   
          Holdings introduced into evidence at trial, the initial trustee,            
          Lee Allan Hansen, served as sole trustee from June 1, 1993, until           
          May 20, 1996.  On May 21, 1996, Lee Allan Hansen appointed two              
          additional trustees, Cynthia Kay McNeff and James Scott Sparkman            
          (Mr. Sparkman).  At the time of the trial, Mr. Sparkman claimed             
          to be the sole trustee of HEH as well as the sole beneficiary of            
          Mercury Solar, which he described as a business trust.1                     
               HEH’s minutes record that HEH’s goal was to eliminate “the             
          use of fossil fuels as an energy source for the planet as well as           
          the state of Hawaii.”  The minutes also state that the trustees             
          were to accomplish this goal through a grassroots referral-based            
          marketing plan, sales of solar energy, and discretionary                    
          allocations of tax benefits to beneficiaries.                               
               The partnership agreement provided, in relevant part:  “By             
          signing this document you have become a beneficiary of H.E.H.               
          You will be given a certificate documenting this fact along with            
          a description of your rights and privileges as a beneficiary.”              



               1Mr. Sparkman owned Mercury Solar until 1993.  At the time             
          of the trial, Mr. Sparkman was receiving payments from Mercury              
          Solar as a technical assistant manager.                                     




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