From AIME's form 10. Could make any LDDI holding in PowerChannel worth a small fortune.........
Letter of Intent with PowerChannel, Inc.
Pursuant to our plans to divest the webPASSPORT system, on March 3, 1999,
we signed a Letter of Intent with PowerChannel, Inc. ("PowerChannel") for the
sale of the webPASSPORT server infrastructure and related equipment in
conjunction with the grant of a non-exclusive, worldwide license to operate and
use the webPASSPORT System. Pursuant to the Letter of Intent, PowerChannel will
take over the operations of the webPASSPORT System and assume all attendant
responsibilities. In consideration, PowerChannel has agreed to (i) execute a
promissory note in the principal amount of $1 million, to mature December 31,
2000, convertible at our option into 200,000 shares of PowerChannel common stock
at a conversion price of $5.00 per share, and (ii) pay us a one-time license fee
of $10.00 for each set-box utilizing the webPASSPORT System that PowerChannel
installs for its customers, which payment would offset the promissory note. The
divestiture of the webPASSPORT System will allow us to focus our efforts on our
core areas of competency-development and marketing multi-platform,
entertainment-based programming |
