8000 Incorporated (EIGH)

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DIVIDEND INFO:

[e-mail]@8000inc.net

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From: [e-mail]
Sent: Fri 9/17/10 7:44 PM
To: [e-mail]


Dear xxxx,


Thank you for your e-mail. As you would expect we have received many such e-mails. As a public company, it is our responsibility to not only ensure company success, but also to reward and share our profit with the shareholders. I cannot go into specifics but hopefully you will follow the generalisations below.

The dividend press release issued, was deliberately to the point to avoid any misunderstanding or confusion. I personally apologise if we did not achieve that objective. The success so far of the company has in itself created challenging, but positive, discussions. The key question is what is the best mechanism to reward shareholders and continue the rate of company progression? We feel, and have confidence, that the finance team have answered this question.

In answer to your questions, all shareholders of record as of the close of business 30th September 2010 will be entitled to receiving the dividend payment. The shareholders of record will be identified by the company’s transfer agent through a shareholder and shareholding audit conducted by the company’s transfer agent correcting any anomalies. This will identify and locate all shareholders, and be correlated against the known issued shares of the company. At this point all fully paid shares and their beneficial owners, or their accounts will be verified and these will be the recipients of the dividend.

Dividends can be paid in cash or in stock and through a multitude of calculations and a combination of retained profits, performance, acquisitions and share price. What we have attempted to do, is to accommodate the best possible outcome for the company shareholders and the company.

“When a corporation earns a profit, that money can be put to two uses: it can be re-invested in the business or it can be paid, or a percentage there of, to the shareholders as a dividend. Public companies may declare a dividend at any time, called a special divided to distinguish it from a regular one”. It was our plan to issue dividends each quarter form 2011, assuming profitability. Due to the advances made and profitability, the company is now bringing forward both regular and special dividends, paid in either cash or a stock.
“A dividend is paid in either cash or stock based on relative and retained profit”. A special dividend is, “a payment made by a company to its shareholders that is separate from the typical recurring dividend cycle and the amount of the dividend can be declared special or significant in relation to the stock price”. With the company bringing forward its plans, the announced dividend potentially falls into the special dividend category, and thus linked to share price. Due to the unique financial structure of 8000 Inc, the value of the announced dividend is inextricably linked to both retained profit and share price.
For ease and as an example, due to 8000inc’s unique financial structure, if the company’s share price continued to rise at its current rate, according to the auditors, it will reciprocate the true corporate value by end of quarter 3 (30th September 2010 Intrinsically, this will increase corporate profit, (due to our financing model), and the retained earnings, resulting in a cash dividend. Conversely, if the trend did not continue, the milestones are not hit, the company is still profitable, has delivered ahead of plan and therefore a stock dividend would be the most appropriate. Challenging, but an extremely positive challenge and all extremely positive for the shareholders. There are other aspects to consider, but this should give you a grasp of why both stock and cash options for the dividend are included in the announcement.
I hope this answers your questions and explains the announcement. We have tried in this dividend payment, to accommodate all outcomes in the best interests of our shareholders, shareholder value, and shareholder return. The exact dividend payment will be directly dictated by retained profits through operations and company share price on the 30th of this month. At this point all 8000inc shareholders of will benefit and be rewarded from the success of 8000inc, ultimately their company, through either a cash or stock dividend dependent on performance, which is the way it should be.


Yours,


Thomas Kelly.
CEO 8000inc


From: XXXX [mailto:[e-mail]]
Sent: Friday, September 17, 2010 4:18 PM
To: [e-mail]
Subject: Dividend Question

As a loyal shareholder of 8000 Inc, please could you provide some clarification on how the announced dividend will be calculated and paid. Specifically, can you clarify whether this is a stock or cash payment for the shareholders. The announcement is extremely exciting news and I would appreciate a better understanding of the process.

Thank you -

Follow Up

ALL EIGH SHAREHOLDERS...


FOLLOW UP EMAIL FROM MR.KELLY...

(I POSTED A PREVIOUS EMAIL FROM MR. KELLY AND HE STATED MONDAY OCTOBER 1ST, WHICH IS ACTUALLY A FRIDAY. I REPLIED BACK TO VERIFY THE ERROR AND HERE IS THE RESPONSE.)



"Thank you for pointing this out and you are correct. In the haste to answer many enquiries and with all that is going on, the days quoted were in error but the timings not.

Simply all share holders of record as of September 30th, 2010, will qualify for the dividend payable October 15th, 2010. By October 1st, 2010, we will have correlated the actual shareholders of record against the absolute records of the company’s transfer agent.

As I can see that qualifying and quantifying the dividend is key to your questions and having checked with the corporate brokerage, please note, the transfer agent records are absolute as they are the guardian of all authorized issued company stock. However, their records do not take into account any short positions or margined stock, not that margin will be of significance for 8000inc as a Pink Sheet listed company. If there are any short positions at this time, the clearing house for that “short” brokerage will issue a “buy-in” notice to that brokerage instructing them to cover all short positions. I cannot be exact as to the timing of this as each clearing house operates independently, but at some point between September 29th ,2010 and October 14th, 2010, any short position held by a brokerage will receive the instruction to cover through the “buy-in” notice from their clearing house."

I hope that clarifies the error made.


Yours,


Thomas Kelly,
CEO 8000inc