We show the existence of a supersymmetry-breaking mechanism in string
theory, where N = 4 supersymmetry is broken spontaneously to N = 2 and
N = 1 with moduli-dependent gravitino masses., The BPS spectrum of th
e theory with lower supersymmetry is in one-to-one correspondence with
the spectrum of the heterotic N = 4 string. The mass splitting of the
N = 4 spectrum depends on the moduli as well as the three R-symmetry
charges. In the case of N = 4 --> N = 2, the perturbative N = 2 prepot
ential is determined by the perturbative N = 4 BPS states. This observ
ation led us to suggest a method that determines the exact non-perturb
ative prepotential of the effective N = 2 supergravity using the shift
ed spectrum of the non-perturbative BPS states of the underlying N = 4
theory.