Francois  Goelo  had filed an action in Hillsboro County Circuit Court (Case  No.  00-1444)  against  TrimFast  Group,
Inc., Michael Muzio and certain other  parties  in  connection with alleged non-delivery of 22,000 shares of TrimFast
and  100,000 shares of common stock of Sierra Holdings Group.  The complaint, is a  multi-count  complaint  and
included counts for breach of contract, specific performance,  fraud  and  civil  theft.  The  complaint  alleged that
a total of $95,750  ($77,000 for the TrimFast shares) was delivered as per the instructions of  Mr.  Muzio.  The  shares
of  common  stock  that had  not been delivered to Mr. Goelo, as  Mr.  Muzio has advised the Company, were shares of
common stock personally owned by Mr. Muzio.  The  Plaintiff  sought  delivery  of  the  shares of common stock pursuant
to the agreement and sought compensatory and punitive damages in excess of $790,000.  On May  3,  2000 plaintiff
offered to settle this matter whereby Mr.  Muzio would pay $95,750 and transfer to the plaintiff 20,000 shares of
TrimFast common stock.  In  addition,  the settlement offer provided that the parties will enter into  a joint stipulation
for dismissal of the action and execution of a general release.  We subsequently signed a written settlement agreement
with Mr. Goelo and Mr. Muzio, and Mr. Goelo has released the other parties, including the Company, from all liabilities
or obligations.  As part of this settlement, the litigation was dismissed and the Company was not required to make
any payment, or give any shares, to Mr. Goelo.

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