Royal Spring Water (fka RSPG)

[BillionStack]

ROYAL SPRING WATER INC.


NOTE 6. COMMITMENT AND CONTINGENCY



The Company has made payments toward equipment in the amount of $134,975, which is recorded in prepaid expenses and deposits. The Company has a commitment to pay an additional $94,975 towards this equipment subsequent to the period end.


In February of 2006, our former Chief Operating Officer (“COO”) filed a complaint against the Company, for, among other things, breach of employment agreement. The complaint was filed in the Los Angeles Superior Court, Santa Monica Division and seeks unspecified damages. The Company filed a cross complaint against this individual for fraud, misrepresentation and breach of fiduciary duty. The Company recently reached a settlement agreement which involved a cash payment of $1,700 to the former COO. The COO shall return 250,000 shares that was part of the contract between the Company and the COO and will retain 35,000 shares. The contract is now terminated. The COO and the Company have released each other of any past, present or future claims. There are no proceedings in which any of our directors, officers or affiliates is an adverse party or has a material interest adverse to the interest of the Company.

http://www.secinfo.com/$/SEC/Filing.asp?D=151E3.u13k&CIK=1121598


Billion