SARS Corp.(fka SARO)

[Kdub]

Have a question and was wondering if someone could explain this to me. It's in regards to the issue from section 2.08 of the 8-k for the merger that was brought up yesterday. I think everything is on the up and up but Im not a lawyer and these SEC filings can be tough to read at times with the language that is used. Here is what the section says:

8. Section 2.03 “Capitalization” subsection (b) shall be stricken and replaced in its entirety by the following:

“It is acknowledged that as of the Closing Date, the individuals named, which shall be disclosed on Schedule 2.03 and attached hereto prior to the Closing, collectively, will own of record and beneficially up to approximately twenty four million (24,000,000) of the issued and outstanding SARS Common Shares, constituting sixty percent (60%) of such shares. Five million (5,000,000) SARS Common Shares shall be reserved for issuance to as part of the employee stock option plan for SARS. There exist no other outstanding rights, warrants, options or agreements for the exchange of SARS Common or Preferred Shares except as provided in this Merger Agreement.”


Could anyone explain what this is supposed to really mean? Here is a link to the full document:

http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6693300