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Microcap & Penny Stocks : CSHK CASHCO MANAGEMENT Y2K -- Ignore unavailable to you. Want to Upgrade?

To: jhild who wrote (2580)	5/20/1998 3:36:00 PM
From: Janice Shell	Respond to of 7491

More from the lurking Legal Chickeratus: 1. EHI assumed a $250,000 note instead of making a $250,000 cash payment (which presumably was to have been used to pay off the note and give clear title to the license to EHI). They obviously restructured the deal because CSHK doesn't have access to that kind of cash. So how do they expect to be able to pay off the note? 2. What are the terms of the note? How quick does CSHK have to come up with the cash to pay it off? Does their marketing "plan" for the software and their projected sales result in the generation of cash sufficient to retire the note? 3. This license is their most important asset. It apparently has a lien against it to secure payment of the note. These are material facts that have not been fully disclosed. Nondisclosure of the terms of this lien and the terms of the note is definitely misleading. 4. Is there a cross-default provision in the contract with Merced that provides that default on the note triggers a default on the preferred stock? Do conversion rights change if the note isn't paid? Any answers out there?