Here is the information from Stockwatch
Wednesday Jan 5 2000
Mr. Brian Doutaz reports Adda Resources has disclosed that a wrongful dismissal lawsuit launched by Desperado Energy Ltd. of Calgary, Alta., has now been settled out of court and
shares have been issued in settlement of the action.
Further to the company's news release in Stockwatch Dec. 2, 1999, the Canadian Venture Exchange has accepted for filing the company's proposal to issue 350,000 shares to settle the outstanding action with Desperado Energy Ltd., a private Alberta company wholly owned by Carlos J. Salas, formerly a director and vice-president of exploration and development of the company. The shares have now been issued and will bear a legend indicating a hold period of one year from
Nov. 19, 1999, being the date of the letters of settlement between the company and Desperado. The company is not an AIF(Annual Information Form) filer and, therefore, under the B.C. Securities Act section 142(2) all securities issued in reliance of the shares for debt exemption in section 128(e) of the Securities Rules are required to be held for a period of 12 months. There are now 18,173,000 shares issued and outstanding in the capital of the company.
On March 15, 1995, the company entered into a management services agreement with Desperado Energy, whereby Desperado would be paid $6,000 per month for a period of three years. On May 27, 1996, Brian C. Doutaz, then the president of the company, was served a writ on behalf of Carlos Salas, who was suing Mr. Doutaz for 100,000 escrow shares. Based on legal advice from corporate counsel, on June 24, 1996, the board of directors terminated Mr. Salas as vice-president and terminated the agreement with Desperado. In August, 1996, Desperado sued the company for damages for breach of the agreement, specific performance of a stock option agreement pursuant to the management services agreement, costs and damages.
The company agreed to a settlement of the overall action by Desperado through the issuance of 350,000 shares from treasury, subject to regulatory approval.
Each party will be responsible for its own costs. Trial costs were expected to be approximately $20,000.
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