NOTE E - SPECIAL SERVICES AGREEMENT
On March 31, 1999, the Company entered into a cancelable special services
agreement with an unrelated active participation investor. Pursuant to this
agreement, the investor was to provide various public relations and marketing
services to the Company in exchange for the right to purchase 87,500,000 shares
of the Company's stock for $1,000,000. The purchase of these shares was to
occur in stages, at varying per share prices ranging from $.0025 to $.02 per
share. At March 31, 1999, the shares associated with this agreement were
recorded as subscribed common shares.
In accordance with the above agreement, upon collection of the subscription
price for the first stage, 25,000,000 shares of common stock were issued. For
these shares, the $812,500 difference between the fair value of the stock at
March 31, 1999, and its selling price, has been recorded as stock marketing
expense.
On or about September 1, 1999, the Company was de-listed from the OTCBB.
Subsequently, the company reduced the subscription price on the remaining
62,500,000 shares to $.005 per share. In the accompanying financial statements
the stock subscription receivable was adjusted to reflect the revised
subscription price.
During the year ended December 31, 2000, amounts due the Company under this
agreement were paid in full and terms of the agreement were considered to be
satisfied by Company management.
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