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drifterfcrc

04/03/07 6:03 PM

#109520 RE: eddiebali #109513

The New Investor Group will be issued restricted shares with a conversion price. They can NOT convert those shares for 12 months. Also there should be a provision in the terms to limit Chassman to HOW many shares she can dump per month. As for dilution then there will be Warrants involved (would ADD to our O/S)but won't be exercised if the company can pay the group back with proceeds from Nicosan sales.