Elephant Talk Communications, Inc. (ETAK)

[MisterEC]

Purpose


ETCI will issue common stock and common stock upon exercise of options to employees, directors, officers, consultants, advisors and other persons associated with ETCI pursuant to the Stock Plan, which has been approved by the Board of Directors of ETCI. The Stock Plan is intended to provide a method whereby ETCI may be stimulated by the personal involvement of its employees, directors, officers, consultants, advisors and other persons in ETCI’s business and future prosperity, thereby advancing the interests of ETCI and all of its shareholders. A copy of the Stock Plan has been filed as an exhibit to this registration statement.


Common Stock


The Board has authorized the issuance of 25,000,000 shares of the common stock to certain of the above-mentioned persons upon effectiveness of this registration statement.


No Restrictions on Transfer


Recipients of shares of common stock will become the record and beneficial owner of the shares of common stock upon issuance and delivery and are entitled to all of the rights of ownership, including the right to vote any shares awarded and to receive ordinary cash dividends on the common stock.


Item 6. Indemnification of Directors, Officers, Employees and Agents; Insurance

The effect of the above provisions may be to eliminate the rights of ETCI and its stockholders (through stockholder derivative suits on behalf of ETCI) to recover monetary damages against a director, officer, employee or agent for breach of fiduciary duty.

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=4492907

Our shares ARE STILL restricted.

I feel this is total B.S.