The 10QSB/A version -
In April 2003, the Company entered into a three-year consulting agreement for advisory and other services related to the marketing, distribution and sale of its products.
The term of the agreement is from April 23, 2003 through April 22,2006.
The agreement obligates the Company to pay the consultant an aggregate of $3.0 million in cash as follows: $750,000 in 2003, $1,000,000 in both 2004 and 2005, and $250,000 in 2006.
Additionally, the agreement requires the Company to issue 66,667 shares of its common stock annually as directed by the consultant in 2003, 2004 and 2005.
At September 30, 2003, the Company has paid an aggregate
of $675,000 pursuant to the contract but has not issued any shares of its common stock.
10kwizard.com.
The Johnson Agreement version:
Additionally, the Company further agrees to donate to the Magic Johnson Foundation, Inc. ("MJF")
2,000,000 shares of fully paid non-assessable common stock for the initial year of the term of the Agreement within 30 days of the signing of this agreement and, thereafter,
an additional
2,000,000 shares of common stock for the second year,
and a further
2,000,000 shares for the third year of the Agreement,
which also shall be issued within 30 days from the start of each additional year of the contract,
for an aggregate of
6,000,000 shares,
which shares are unregistered shares that will contain cost-free best efforts registration rights by the Company upon the request of MJF, with the further understanding that MJF will fully cooperate with the Company in preparing and filing a Registration Statement for the shares of stock referred to herein, if necessary, and will indemnify the Company from any liabilities with respect to information provided by MJF to the Company with respect to the registration of the shares herein.
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