SPOOZ Inc (SPZI)

[profcw]

Email from Paul:



My Email to Paul:


Greetings Paul:



First my congratulations on your ongoing creative financing. My question to you pertains to the 7% payment to Spooz from the net profit of the subscriber. There is an old saying in a course I once taught in Managerial Finance that said "Don't net or you won't get" meaning that payers can easily avoid profits by declaring a bonus,paying an insurance premium or any other acceptable income statement entry to reduce or eliminate net profit. So my question is: what language did you use to avoid this condition and assure Spooz that its payments are based upon the quality of the performance of SWARM and not the managerial gymnastics of the subscriber.

I appreciate your leadership and look forward to more exciting times as we progress. Thank you again.

Prof. C.W.Palmer

The Reply:
Professor,



Net profits means gross profits less contractually fixed incentives paid to traders. The formula is simple and would be most difficult to manipulate, especially since I will serve as chairman of 141.



Best Regards,



Paul D. Strickland, Jr.

Chief Executive Officer

Spooz, Inc.

312-379-3166

312-223-0110 Fax