Decision Diagnostics Corp (DECN)

[Leirum]

One should never take something out of context whithout posting then as well the Settlement in 2010.


Cragmont Capital, LLC vs. instaCare Corp. et al.
The Company received a legal complaint on March 27, 2009 in connection with its 2008 transaction with Cragmont Capital,
LLC ("Cragmont"). In Cragmont’s Complaint it claims it is entitled to recover the unpaid balance of $75,000 on a Promissory Note
allegedly due in February, 2009, plus interest of $14,063, and attorneys’ fees. Cragmont has amended its complaint twice, the last
amendment to raise issues concerning whether it has a legal right to exercise certain warrants.
The written agreement with Cragmont was signed in the first quarter of 2008. The Company raised various affirmative
defenses to Cragmont’s claims, including claims of breach of contract and misrepresentation, and has sought to rescind the entire
agreement. The Company terminated a portion of its relationship with Cragmont for cause, in May 2008. The Company believes that
Cragmont breached its obligations in connection with the promised parallel financing transactions. The Company would not have
entered into the March 2008 agreement but for the representations of Cragmont concerning the parallel finance transaction[s].

In March 2010, and as part of its recession, the company has returned the $75,000 it received as consideration in the
transaction. On October 1, 2010 the parties entered into a final settlement thereby bringing an end to the litigation.