“Exhibit 7” = SCIS
A. FUNDING THE PLAN
The Plan shall be funded by the Plan Deposit ($260,000) made by the Plan Deposit Party (J.D. McGraw) on the Effective Date. The Plan Deposit shall be used to pay the IRS Claim in Class 1 in full, should the Class 1 Claim be allowed by the Court. The Balance of the Plan Deposit shall be used by the Reorganized Debtor as working capital to fund operations of the Reorganized Debtor from and after the Effective Date so as to achieve the results set forth in the Reorganized Debtor’s Business Plan attached hereto as Exhibit “7”. In exchange for the Plan Deposit, the Plan Deposit Party shall receive, on the Effective Date, 100% of the Class B Common Stock issued by the Reorganized Debtor on the Effective Date.
