UC Hub Group Inc.(fka UCHB)

[Toxic Avenger]

"This collateral, will give "Purchaser" his controls (i.e. super voting stock via Preferred A stock) of the company if the loan is not paid back in 12 months. This collateral of course, presently represents the voting control of the Company and its representative assets which as of today include in part, computers, equipment, stock, shareholder lists, the 8 Oil Wells in Illinois and said leases and the Rector drilling assignments which will be attached as Exhibits A (400 acre lease-2 wells) and B (80 acre lease w/ 6 wells) to this Agreement. Wilcox agrees that the voting stock cannot be altered, transferred or assigned to any other party without the written consent of the "Purchaser"."

As I read that, if the loan cannot be repaid in 12 months (which seems like a real possibility to me), the "Purchaser" owns the entire company, both voting control and assets. That doesn't sound like such a good deal for shareholders to me. Especially if the $300k is used to pay back loans and accrued expenses to the CEO.