Replies to post #11544 on DD Support Board and Research Team

[stockmasterflash]

Looks like the same one


Item 1.02 Termination of a Material Definitive Agreement.

On July 15, 2008, the Company entered into a securities purchase agreement (the "Purchase Agreement") with La Jolla Cove Investors, Inc. ("La Jolla"), pursuant to which the Company sold a private placement convertible debenture (the "Debenture") to La Jolla. The Debenture was for gross proceeds of $2,000,000 (the "Debenture Amount"), of which $250,000 was paid by La Jolla at the closing of the Purchase Agreement and the balance of $1,750,000 was payable by a promissory note (the "La Jolla Note") due January 30, 2011. The Debenture accrued interest on the Debenture Amount at a rate of 6% per annum. The Debenture was convertible into shares of Common Stock.

In connection with the Transaction, on August 20, 2008, the Company provided notice of redemption (the "Notice of Redemption") of the Debenture issued to La Jolla to redeem, terminate and pay in full the Debenture. A payment of 100% of the outstanding principal amount of the Debenture plus accrued and unpaid interest was made by the Company to La Jolla in connection with the Notice of Redemption.

In connection with the Transaction, on August 20, 2008, the Company and Nonsuch Holdings Ltd. ("Nonsuch") cancelled and terminated that certain promissory note in the principal amount of $100,000 (the "Nonsuch Note"), which was issued by the Company to Nonsuch on July 29, 2008. In exchange for cancellation and termination of the Nonsuch Note, the Company transferred 104,167 shares of common stock of Blideo, Inc., a Texas corporation, owned beneficially and of record by the Company to Nonsuch. Nonsuch is an affiliate of, and is owned and controlled by Peter Leighton.