ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The Company completes a thorough due diligence process in hiring its consultants and key personnel. The following sets forth shares issued to such key personnel as a result of the exercise of options.
Name # of Shares Relationship Date Acquired
Dr. Harold Campbell 3,000,000 Consultant 8/14/00
Paul Aubin 238,534 Manager, Beach Access 8/21/00 706,667 8/29/00 706,667 11/1/00
Kenneth Bourg 566,133 Manager of R&D 8/14/00 293,333 11/1/00
Certain family members of the Company's President own shares of the Company's common stock as set forth below:
Alpha J. Keyser, President and CEO, is related to the following shareholders:
Name # of Shares Relationship Date Acquired
Victoria Keyser 272,000,000 Wife 1992 - 93
These shares are owned as "Tenants in the Entireties".
In management's opinion, although this is not an arms length transaction, a 30% fee for all expenses related to marketing of the product has been and continues to be in the Company's best interest and is competitive with similar services provided by other companies. With this arrangement, the Company does not have any fixed payroll, payroll tax, employee benefit, promotion, travel or other similar expenses for the marketing of their products. These expenses are all variable. In management's opinion, similar costs on a fixed basis during the development of the market would have had a detrimental impact on the overall cash flow of the Company. A marketing fee of 30% is a reasonable cost for these services.
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