Ex-Ceo Gives up $$$ and Shares To Help DealNeuhaus gives up $1.5 million and 4.5 million shares...
to help facilitate "3rd party closing"
Taken from 8-k filed today
On November 11, 2008 the Company entered into a settlement agreementwith Mark Neuhaus and Nicole Neuhaus. Mark Neuhaus is the former ChiefExecutive Officer and a former director of the Company. The agreementis subject to the condition precedent that the Company finalize atransaction with a third party involving certain oil and gas propertieswithin 90 days of November 11, 2008 ("Third Party Closing").
Effective as and when the Third Party Closing occurs, the agreementprovides for mutual general releases between each of the Company andMark and the Company and Nicole Neuhaus. In connection with theagreement, seven million shares of the common stock of the Companypreviously issued to Mark Neuhaus were delivered to the Company to beheld pending the Third Party Closing. If the Third Party Closing occurswithin the 90 day period, (1) four million five hundred thousand of thedeposited shares will be cancelled and returned to authorized butunissued shares of the Company,(2) two million five hundred thousand ofthe deposited shares will be delivered to Nicole Neuhaus and (3)certain alleged claims of Mark Neuhaus against the Company forcompensation and reimbursement for advances in the aggregate amount ofone hundred seventy eight thousand eight hundred sixty two($178,862.25) and a purported indebtedness of the Company to MarkNeuhaus in the amount of one million three hundred three thousand eighthundred seventy five ($1,303.875.79),including interest accrued throughOctober 31, 2008 and represented by a convertible note dated as ofSeptember 28, 2007 will be cancelled. If the Third Party Closing doesnot occur within 90 days of November 11, 2008 the settlement agreementwill be void and of no force and effect and the deposited shares willbe returned.