SCHEDULE 14C INFORMATION
Information Statement Pursuant to Section 14(c)
of the Securities Exchange Act of 1934
Check the appropriate box:
|X| Preliminary Information Statement
|_| Confidential, for Use of the Commission Only (as permitted by Rule
14c-5(d)(2))
|_| Definitive Information Statement
Ballistic Ventures, Inc.
(Name of Registrant As Specified In Its Charter)
Payment of Filing Fee (Check the appropriate box): |X| No fee required.
|_| Fee computed on table below per Exchange Act Rules 14c-5(g) and
0-11.
1) Title of each class of securities to which transaction applies:
N/A
2) Aggregate number of securities to which transaction applies:
N/A
3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
the filing fee is calculated and state how it was determined): Cash
and value of other property (including assumption of liabilities)
received by registrant in asset disposition equals $89,001.
4) Proposed maximum aggregate value of transaction:
$89,001
5) Total fee paid:
N/A
|_| Fee paid previously with preliminary materials.
|_| Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the Form or Schedule and the date of its filing.
1) Amount previously Paid:
N/A
2) Form, Schedule or Registration Statement No.:
N/A 3) Filing Party:
N/A 4) Date filed:
N/A
SCHEDULE 14C
Preliminary Information Statement
Ballistic Ventures, Inc
(formerly whOOdOO.com, Inc.)
1283 Crossfield Bend
Mississauga, Ontario
L5G 3P5
Telephone 905-891-0207
Information Statement
Sale of Substantially All Corporate Assets to Mr. Paulo Mylla;
And Amendment to Company's
Certificate of Incorporation to Change
The Company Name to Ballistic Ventures Inc.
WE ARE NOT ASKING FOR A PROXY AND YOU ARE
REQUESTED NOT TO SEND A PROXY
Approximate date of Mailing of this Information Statement: November 26, 2001.
INTRODUCTION/WRITTEN CONSENT
This Information Statement is being furnished by Ballistic Ventures Inc.
(formerly whOOdOO.com Inc.), a Delaware corporation ("the Company") to its
stockholders in connection with:
1) The sale of substantially all of the Company's assets to Mr. Paulo
Mylla, our former President, in accordance with the following
material terms:
1
Summary Term Sheet
o We transfer certain of our assets, including customers, software,
intellectual property and computer equipment (as described below under
"History and Description of Asset Transfer") to Mr. Mylla in exchange for
consideration of $1.00.
o This asset transfer occurs as part of a change in control transaction (as
described below under "History and Description of Asset Transfer") in
which (i) K2 Ventures Inc. acquires a controlling interest in us from Mr.
Mylla and certain other shareholders, and (ii) K2 Ventures assumes our
liabilities in the amount of $89,000.
2) The amendment of the Company's Certificate of Incorporation to change the
Company's name from whOOdOO.com Inc. to Ballistic Ventures, Inc.
We agreed to transfer substantially all of our assets to Mr. Paulo Mylla,
our former President, under an Escrow Agreement dated May 31, 2000 among us, Mr.
Mylla, K2 Ventures, Inc., and Brian Leith, Kevin Casey, Sharon Snew, Stephanie
Pera, and Ernest Sittenfield. Under applicable Delaware law approval of this
asset transfer requires the affirmative vote of a majority of the outstanding
stock of the corporation entitled to vote thereon. The transfer was approved in
writing by the holders of a majority of the shares of our then outstanding
common stock in accordance with the provisions of Section 228 of the Delaware
General Corporation Law. The names of these shareholders and the number of
shares owned by them were as follows: Paullo Mylla (8,595,000 shares), Ernest
Sittenfield (200,000 shares), Kevin Casey (100,000 shares), and Sharon Snew
(30,000 shares), Stephanie Pera (10,000 shares) and Brian Leith (2,530,000
shares). The aggregate of these shares constituted 56% of the then outstanding
shares of common stock. As described below, the finalization of the transactions
relating to the transfer of substantially all of our assets to Mr. Mylla was
conditioned upon the filing of a Schedule 14C Information Statement describing
such transfer with the United States Securities & Exchange Commission ("SEC")
and the distribution of such Information Statement to our shareholders. Such
filing and distribution of the Information Statement has been delayed while we
have been in the process of complying with (i) SEC comments to our original
Securities Exchange Act of 1934 Registration Statement on Form 10-SB and (ii)
our periodic reporting requirements under the Securities Exchange Act of 1934.
We have addressed the SEC comments and we have filed the required periodic
reports, and we are now distributing this Information Statement to our
shareholders. The transactions relating to our asset transfer to Mylla will be
finalized twenty (20) days after the mailing of this Information Statement to
our shareholders.
The amendment of our Certificate of Incorporation to change our name from
whOOdOO.com Inc. to Ballistic Ventures, Inc. occurred on July 17, 2000. Under
applicable Delaware law approval of the name change amendment requires the
affirmative vote of a majority of the outstanding stock of the corporation
entitled to vote thereon. The amendment was approved in writing by K2 Ventures,
Inc., the holder of a majority of the shares of our then outstanding common
stock, in accordance with the provisions of Section 228 of the Delaware General
Corporation Law. K2 Ventures, Inc.
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owns 11,235,700 shares (55%) of our outstanding common shares. No Information
Statement in compliance with Rule 14c-2, promulgated under the Securities
Exchange Act of 1934, was distributed to our shareholders at the time of the
name change. We are now distributing this Information Statement to our
shareholders to effect such compliance.
NO DISSENTERS RIGHTS OF APPRAISAL
There is no provision in the Delaware General Corporation Law allowing for
dissenters rights of appraisal in connection with either the asset transfer to
Mr. Mylla or the name change to Ballistic Ventures, Inc.
HISTORY AND DESCRIPTION OF ASSET TRANSFER
Effective May 31, 2000, we ceased all activities and operations and are an
inactive company. On that date, our company, K2 Ventures, Inc. (the
"Purchaser"), Paulo Mylla, the former president, Brian Leith, the former vice
president and certain other stockholders (the "Other Stockholders") entered into
an Escrow Agreement (the "Escrow Agreement"), a copy of which is attached hereto
as exhibit 1. K2 Ventures Inc. is domiciled in Bermuda and is owned 50% by Kevin
Winters and 50% by Kevin Way, both residents of Bermuda. K2 Ventures Inc. was
established to effect the purchase of 11,235,700 shares of common stock, from
Mr. Mylla, 2015 Imperial Golf Cse. Blvd., Naples, Fl. 34110, telephone number
941-872-3049, the former vice president and the other shareholders of the
company.
The Escrow Agreement provides that Mr. Mylla will purchase certain assets from
us for $1.00, Mr. Leith, the former vice president, will release the parties to
the Escrow Agreement from any liability or claim he may have against such
parties for past or future actions in exchange for our rights known as "Post
Offer", and K2 Ventures will purchase 11,235,700 shares of common stock from Mr.
Mylla, the former vice president and the other shareholders, and assume
liabilities of our company totaling approximately $89,000.
The assets that we are selling to the former president for $1.00, are as
follows:
1) Customers
2) Software license keys.
3) Software.
4) Intellectual properties such as code, domain names and trademarks.
5) Computer equipment.
The intellectual rights that we are selling to Mr. Mylla, are comprised of the
following and are all of our intellectual property other than the property known
as "Post Offer":
1) Sites/Source Code/Software for: whoodoo.com, Aqueous.com, whoomail.com and
the Auction site.
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2) Domain names: whoodoo.com, whoodoo.net, BGSSWF.net, ICSdev.net, whodo.com,
whodo.net, Aqueous.com.
3) Trademarks: whoodoo.com logo, whoodoo.com name.
All of the proprietary and non-proprietary software is being sold to Mr. Mylla.
The Ballistic Ventures clients are also being sold to Mr. Mylla. The software
license keys are for the software that was used in the day-to-day operations of
the company and also used in the development of the company's proprietary
property. This would include, but not limited to, software such as, Microsoft
Visual Studio, Microsoft Windows 98, Adobe Acrobat, Visio 2000 and other
associated software.
The type of past or future action, which Mr. Leith, the former vice president
will release Ballistic Ventures and K2 Ventures from is for wrongful dismissal.
The former vice president initiated this legal action in April 2000, and the
proceedings took place in the Circuit Court, 20th Jud. Circuit, Collier County,
FL. Mr. Leith, the former vice president, sought damages equal to $165,000
(three times his base salary) and other unquantified damages. The "rights" we
are exchanging are for the property known as "Post Offer". "Post Offer" was an
auction site, which the former vice president wished to potentially utilize in
his future endeavors. The former vice president helped to develop this property.
The total consideration that K2 Ventures Inc. has provided for the purchase of
the 11,235,700 shares of common stock is to assume the liabilities of our
company in the amount of $89,000. K2 Ventures will not give any stock to our
shareholders.
The Escrow Agreement called for the resignations of all officers and directors
of Ballistic Ventures (other than Mr. William Dickie, provided , that Mr. Dickie
remained on as a director of the company by the consent of the parties). Mr.
Mylla, Mr. Leith and other shareholders had to deliver to the Escrow Agent,
certificates representing the stock to be transferred to K2 Ventures with
medallion guaranteed endorsements and all requisite stock powers, necessary to
effectuate the transfer of the said stock to K2 Ventures pursuant to the Escrow
Agreement.
The table shown below, details the number of our common shares of Ballistic
Ventures, which each related party to the Escrow Agreement had prior to entering
into the Escrow Agreement, the number of shares which they have after entering
into the Escrow Agreement, and the number of shares which were sold to K2
Ventures.
Common shares held by Common shares held
related parties before Number of shares by related parties
Escrow Agreement sold to K2 Ventures after Escrow Agreement
- ---------------- ------------------- ----------------------
Paulo Mylla 8,595,000 8,423,100 171,900
Ernest Sittenfield 200,000 196,000 4,000
Kevin Casey 100,000 98,000 2,000
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Sharon Snew 30,000 29,400 600
Stephanie Pera 10,000 9,800 200
Brian Leith 2,530,000 2,479,400 50,600
---------- ---------- -------
11,465,000 11,235,700 229,300
As of May 31, 2000, as contemplated by the escrow Agreement, K2 Ventures
acquired, subject to the terms of the Escrow Agreement, 11, 235,700 common
shares, which is 55.3%, of our outstanding common shares. The finalization of
the transactions contemplated by the Escrow Agreement, 20 days following the
mailing of this Information Statement, will complete the change in control of
Ballistic Ventures, Inc. to K2 Ventures.
In connection with the transactions contemplated by the Escrow Agreement
Mr. Eric Pinkney, at the request of K2 Ventures , Inc., was appointed as a
director of Ballistic Ventures, Inc. Mr. Pinkney and Mr. Dickie comprise the
current board of directors. Mr. Pinkney has a verbal agreement with K2 Ventures
that in return for forgoing direct executive compensation from Ballistic
Ventures, Inc. he will be permitted to purchase from K2 Ventures 200,000 common
shares of Ballistic Ventures, Inc. at a future point in time for $0.15 per
share. Therefore, Mr. Pinkney has a financial interest in the finalization of
the transactions contemplated by the Escrow Agreement.
REASONS FOR ASSET TRANSFER
We were a development stage internet company which had developed and was in the
process of refining a network of regional search engine Internet portals to
provide the users access to more localized, relevant, and interest-specific
information than they presently could obtain from the more established, large
Internet search engine portals and to provide local businesses an opportunity to
target these local users.
As of May 2000 it became apparent to the current management that the economic
conditions were such that we would be unable to continue down the original
business plan path which we had intended to pursue, and we would have to change
our focus in order that we could maximize the value of the common stock and
ultimately maximize shareholder value. We were unable to generate enough revenue
to meet our day-to-day operating expenses and could not foresee to do so in the
long run so we could in fact become a viable operation. Our working capital was
limited and we could not raise any further financing under the market
conditions, which prevailed at the time.
Because of these circumstances, our business has been discontinued and we are in
the process of disposing our assets, under the Escrow Agreement as described
above. Our plan is to acquire a new profitable business.
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ACCOUNTING TREATMENT
For accounting purposes, the Escrow Agreement dated May 31, 2000, was treated as
a change of control and recorded as a purchase transaction as of that date.
FEDERAL INCOME TAX CONSEQUENCES
As of May 31, 2000, the Company had available a tax loss carryforward of
$3,025,012. Because of the change of control, the Company was unlikely to be
able to use the tax loss carryforward, and therefore, the tax loss carryforward
was written off as of May 31, 2000. At June 30, 2001, the Company had a tax loss
carryforward of $133,360 arising from subsequent operations, which could be
applied against future taxable income through 2021.
REGULATORY APPROVALS
Other than the filing and mailing of this Information Statement, there are no
federal or state regulatory requirements that must be complied with or approval
that must be obtained in connection with the asset transfer to Mr. Mylla.
SELECTED FINANCIAL DATA
Ballistic Ventures, Inc.
Selected Financial Information
Predecessor Company
--------------- -------------
Balance Sheet Balance Sheet
May 31, 2000 June 1, 2000
Prior to Escrow Purchase
Agreement Accounting
--------------- -------------
Assets:
Cash $ 9,403 $ 9,403
Accounts receivable 1,271 1,271
Fixed assets 137,099 --
Goodwill -- 97,997
----------- --------
$ 147,773 $108,671
=========== ========
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Liabilities:
Accounts payable $ 78,897 $ 78,897
Note payable-short term 10,000 10,000
----------- --------
Total liabilities 88,897 * 88,897 *
----------- --------
Stockholder equity:
Common stock 19,774 19,774
Additional paid-in capital 2,926,997 --
Accumulated deficit (2,887,895) --
----------- --------
58,876 19,774
----------- --------
$ 147,773 $108,671
=========== ========
Predecessor Company
----------------------------- -----------------------------
April 9, 1999 July 1, 1999 June 1, 2000 July 1, 2000
(inception) to to To to
June 30, 1999 May 31, 2000 June 30, 2000 June 30, 2001
-------------- ------------
Net sales $ -- $ 41,152 $ 57 $ 2,241
Loss from continuing operations $ (117,985) $ (2,907,027) $ (103,140) $ (31,848)
Loss from continuing operations per share $ (0.01) $ (0.16) $ -- $ --
Weighted average shares outstandiing 11,125,000 18,447,765 18,492,036 20,305,398
Total assets $ 19,215 $ 10,656 $ 46,259 $ 2,658
Long term debt $ -- $ -- $ -- $ --
Cash dividends declared per common share $ -- $ -- $ -- $ --
Book value per share $ (0.01) $ -- $ -- $ --
Shares outstanding 11,125,000 19,864,148 20,305,398 20,305,398
1) On August 4, 1999 in a purchase transaction, the Predecessor purchased
certain assets and assumed certain
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liabilities of BGS Southwest, Inc. For accounting purposes, on May 31,
2000, the Predecessor's president purchased, pursuant to an escrow
agreement, certain assets of the Predecessor for $1.00. On that same date
the predecessor recorded a loss on the equipment of $137,099.
2) Further, on May 31, 2000, a change of control occurred, which was recorded
as a purchase transaction.
3) Subsequent to June 1, 2000, the Company wrote off the goodwill of $97,997.
4) Currently, the Company is inactive.
* k2 Assumed the liabilities pursuant To the escrow agreement.
REASONS FOR NAME CHANGE/EFFECT OF NAME CHANGE
Senior Management of the Company recommended to the Board of Directors that the
Company change its corporate name from whOOdOO.com Inc. to Ballistic Ventures
Inc. for the following reason:
The business has been discontinued due to the inability of the company to
execute the original business plan. Our plan is to acquire a new profitable
business and therefore it was felt that a new name was needed to provide a clean
separation from the past.
The name change will not affect in any way the validity or transferability of
stock certificates currently outstanding, the capital structure of the company
or the listing of any of its securities on the Pink Sheets. The stock will
continue to be traded on the Pink Sheets under the symbol BLLV. Shareholders
with certificated shares may continue to hold their existing certificates or
receive new certificates reflecting the name change upon tendering of old
certificates to the company's transfer agent.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
The following table provides certain information as of September 30, 2001
concerning the beneficial ownership of our common stock held by each director;
each person known by us to be the beneficial owner of at least 5% of the
Company's voting stock; and all executive officers and directors as a group.
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PERCENT
NAME AND ADDRESS AMOUNT AND NATURE OF SHARES
TITLE OF CLASS OF BENEFICIAL OWNER BENEFICIAL OWNERSHIP(1) OUTSTANDING
- -------------- ------------------- ----------------------- -----------
Common Stock K2 Ventures (2) 11,235,700 55.3%
27 Reid Street,
Hamilton, HM 11,
Bermuda
- -------------- ------------------- ----------------------- -----------
Common Stock Eric Pinkney
1283 Crossfield Bend Nil
Mississauga, Ontario
L5G 3P5
- -------------- ------------------- ----------------------- -----------
Common Stock William P. Dickie
21 Hilltop Road 100,000 *
Toronto, Ontario
M5H 2GP
All directors and executive officers of the
Company as a group (2 persons) 100,000 *
*represent less than 1% of
voting power
- ----------
(1) Beneficial ownership exists when a person has either the power to vote or
sell our Common Stock. Unless otherwise indicated, we believe that all persons
named in the table have sole voting and investment power with respect to all
securities beneficially owned by them. A person is deemed to be the beneficial
owner of securities that can be acquired by such person within 60 days from the
date whether upon the exercise of options or otherwise.
(2) K2 Ventures Inc., 27 Reid Street, Hamilton, HM 11, Bermuda. The sole
director of this company is Brian Lines of Bermuda. Forstreet Nominees is 100%
shareholder of K2 Ventures Inc. K2 Ventures was established in May 2000, in
order to help facilitate the Escrow Agreement, which has been discussed above.
K2 Ventures has purchased 11,235,700 shares from Paulo Mylla and certain other
shareholders, and controls 55.3% of the outstanding common shares subject to
terms of the Escrow Agreement.
DISTRIBUTION OF INFORMATION STATEMENT
The cost of distributing this Information Statement has been borne by the
Company. The distribution will be made by mail.
By order of the Board of Directors
Eric Pinkney
Director and President
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EXHIBIT I
ESCROW AGREEMENT
----------------
This ESCROW AGREEMENT, (the "Escrow Agreement") dated May 31, 2000 by and among
WhOOdoo.com, Inc., a Delaware corporation, ("Seller"), K2 Ventures, Inc., a
Bermuda corporation, ("Purchaser"), Paulo Mylla ("Mylla"), Brian Leith
("Leith"), Kevin Casey, Sharon Snew, Stephanie Pera, and Earnest Sittenfeld
(collectively referred to as "Other Shareholders"), and Michael Harris, P.A.
(the "Escrow Agent").
WHEREAS, Mylla has agreed to purchase some of the assets of Seller (the
"Assets"), as more specifically described in Schedule A attached hereto, for
$1.00, and has agreed to guarantee receivables of the Seller, as more
specifically described in Schedule D attached hereto.
WHEREAS, Leith has agreed to release Seller, Mylla, and certain other
parties to this Escrow Agreement from any liability or claim that Leith may have
against such parties for past or future actions and to seek dismissal of any
actions currently pending and involving any parties to this Escrow Agreement in
exchange for all rights to Seller's property known as "Post Offer," as is,
without supporting hardware.
WHEREAS, Purchaser has agreed to purchase 11,235,700 shares of common
stock in Seller and assume the liabilities of Seller enumerated in Schedule B
attached hereto, as represented and warranted as a complete list of all existing
liabilities of Seller.
WHEREAS, the Escrow Agent desires to serve as the agent for the escrow
required by the Escrow Agreement.
WHEREAS, the parties desire to enter into this Escrow Agreement evidencing
the
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arrangements concerning the Deposit (as defined below) and the rights and
obligations of the parties with respect thereto.
For and in consideration of the promises contained in this Escrow
Agreement the receipt and sufficiency of which are hereby acknowledged, and the
mutual agreements set forth herein, the parties hereby agree as follows:
Section 1. Deposit.
- -------------------
The parties have caused (or shall cause) to be delivered to the Escrow Agent the
following (collectively referred to as the "Deposit"):
(i) executed resignations of all officers and directors of Seller;
(ii) executed unanimous consents to the action of which this Escrow
Agreement is a part by the Board of Directors of Seller;
(iii) executed shareholder consent by Mylla to the sale of the Assets as
described herein;
(iv) Mylla, Leith, and Other Shareholders have delivered to Escrow Agent
certificates representing a total of 10,545,000 shares of common
stock of Seller with medallion guaranteed endorsements and all
requisite stock powers, necessary to effectuate the transfer of the
said stock pursuant to this Escrow Agreement;
(v) Leith shall cause a certificate representing 920,000 shares of
common stock of Seller issued to Latitude 32, Inc., a Bermuda
corporation, to be delivered to Escrow Agent with medallion
guaranteed endorsements and all requisite stock powers, necessary to
effectuate the transfer of the said stock pursuant to this Escrow
Agreement;
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(vi) Leith has delivered to Escrow Agent an Agreement dated May 11th
which releases all defendants from his pending litigation and
releasing Seller, Purchaser, and Mylla from any existing and
potential actions relating to the parties association with Seller;
Section 2. Sale of Assets - Sale of Common Stock.
At such time as the condition specified in Section 4a. shall occur on or
before 6:00 p.m. Miami time on July 30, 2000, the following actions shall
simultaneously occur:
a. Mylla shall purchase the Assets by tendering to the Seller $1.00;
b. Mylla, Leith and the Other Shareholders shall return common stock to the
Seller for no consideration in the amounts reflected on Schedule C;
c. The Purchaser shall pay the liabilities specified on Schedule B;
d. Mylla, Leith and the Other Shareholders each represents and warrants to
his or her knowledge that the Seller has no liabilities except as
reflected on Schedule B.
e. Mylla shall cause BGS (Southwest), Inc. to cancel all agreements with the
Seller and release all liabilities of the Seller to it; [issue of lease]
and
f. Mylla shall pay to the Seller any of the accounts receivable of the Seller
reflected on Schedule D which remain unpaid as of July 31, 2000.
Section 3. Duties of Escrow Agent.
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a. The Escrow Agent acknowledges the receipt of the Deposit and shall hold
said Deposit in accordance with the terms and conditions of this Escrow
Agreement. The Escrow Agent shall not be responsible for the sufficiency
or accuracy of the form, execution, validity, or genuineness of documents
or securities deposited hereunder, or of any endorsement thereon, or for
any description therein, nor shall the Escrow Agent be responsible or
liable in any respect on account of the identity, authority, or rights of
the persons executing or delivering or purporting to execute or deliver
any such document, security, or endorsement.
b. Escrow Agent shall promptly forward the certificates of Mylla, Leith, and
Other Shareholders to the Seller's transfer agent for re-issuance in the
amounts and to the entities listed in Schedule C attached hereto and then
hold the certificates in escrow after receipt from the transfer agent.
Section 4. Delivery of Deposit.
The Escrow Agent shall hold the Deposit pursuant to the terms and conditions of
this Escrow Agreement until such time as all the following events have occurred:
a. At such time as an information statement as to the sale of the Assets has
been filed with and cleared comments of the Securities and Exchange
Commission and the documents referred to in Section 1(v) hereof have been
received by the Escrow Agent prior to July 30, 2000 at 6:00 p.m. Miami
time.
b. July 30, 2000 at 6:00 p.m. Miami time.
c. Notwithstanding anything contained in this Section 3 to the contrary, upon
receipt of written notice that a disagreement within the meaning of
Section 8 below
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exists, the provisions of Section 8 shall control.
Upon the occurrence of the condition in Section 4a., the Escrow Agent shall
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deliver the Seller's stock certificates as reflected on Schedule C and the
remaining items in Section 1 to the Purchaser. Upon the occurrence of the
condition specified in Section 4b. without the prior receipt of the documents
specified in Section 1(v), the Escrow Agent shall deliver the Seller's stock
certificates as reflected on Schedule C, the items in Section 1(i), (ii), and
(iii)to Mylla and the items in Section 1(vi) to Leith.
Section 5. Delivery Upon Mutual Demand.
Upon demand, in writing, of all parties to this Escrow Agreement at any time,
the Deposit shall be delivered by the Escrow Agent as the parties direct.
Section 6. Escrow Agent and Duty.
The Escrow Agent shall not be responsible for any act or omission on its part so
long as the Escrow Agent acts in good faith. The Escrow Agent may rely upon any
notice, certificate, affidavit, release letter or other paper or document which
the Escrow Agent believes to be genuine and the Escrow Agent shall not be liable
when the Escrow Agent relies on such genuineness in good faith.
Section 7. Disputes and Termination.
a. If at any time a dispute shall exist as to the duties of the Escrow Agent
and the terms thereof, the Escrow Agent may pay the Deposit to the Clerk
of the Court of Palm Beach County, State of Florida and may interplead the
parties hereto. Upon so
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depositing such funds and filing its complaint in the interpleader, the
Escrow Agent shall be completely discharged and released from all further
liability or responsibility under the terms hereof.
b. Should this Agreement be terminated, Mylla shall receive an executed
resignation of Eric Pinkney as an officer and director; and an executed
unanimous consent re-appointing the officers and directors who submitted
resignations referred to in Section 1(i) above.
Section 8. Resignation of Escrow Agent.
a. The Escrow Agent may resign at any time by giving written notice to the
Seller and the Purchaser, transmitted by any of the following means:
(i) facsimile transmission to the facsimile number given below,
provided that personal telephonic confirmation of receipt is
obtained by the sender from the recipient promptly after completion
of transmission,
(ii) a nationally recognized overnight courier service, or
(iii) the Express Mail service maintained by the United States
Postal Service, and addressed as follows:
If to Seller, to:
WhOOdoo.com, Inc.
1660 Trade Center Way
Naples, Florida 34109
Tel. No. (941) 594-2700
Fax No. (941) 594-2701
If to Purchaser, to:
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K2 Ventures, Inc.
c/o Waterstreet Corp. Services Ltd.
LOM Building
27 Reid Street, Hamilton,
HM11 Bermuda
Tel. No. ______________
Fax. No. ______________
If to Paulo Mylla, to:
1660 Trade Center Way
Naples, Florida 34109
Tel. No. (941) 594-2700
Fax No. (941) 594-2701
If to Brian Leith, to:
_______________________
_______________________
Tel. No. ______________
Fax. No. ______________
If to Other Shareholders, to:
_______________________
_______________________
Tel. No. ______________
Fax. No. ______________
_______________________
_______________________
Tel. No. ______________
Fax. No. ______________
_______________________
_______________________
Tel. No. ______________
Fax. No. ______________
_______________________
_______________________
17
_______________________
_______________________
Tel. No. ______________
Fax. No. ______________
Any party may change its address for the purpose of this Section 8. by
giving the other parties written notice of its new address in the manner
set forth above.
b. In the event of the resignation of the Escrow Agent, the successor escrow
agent shall be chosen by the Seller and shall be a corporation having
capital, surplus and undivided profits in excess of Two Million Dollars
($2,000,000) and duly qualified to serve as an escrow agent under the laws
of the United States of America or Florida law. The Escrow Agent who has
resigned shall, as soon as practicable, deliver to the successor escrow
agent the Deposit and a current account of the affairs of the Deposit.
c. Any successor escrow agent shall have the rights, powers, title and
discretion of the original escrow agent hereunder and shall be charged
with all the duties and obligations of the original escrow agent
hereunder.
Section 9. Disagreements Over Release of Deposit. If there is any disagreement
between the Purchaser and the Seller or among them and any other party to this
Escrow Agreement, resulting in adverse claims and demands being made in
connection with, or for, the Deposit, the Escrow Agent shall refuse to comply
with the claims or demands as long as such disagreement shall continue, and in
so refusing the Escrow Agent shall make no delivery or other disposition of
Deposit and in so doing the Escrow Agent shall not be or become liable in any
way to any person for its failure or refusal to comply with such conflicting or
adverse demands; the Escrow Agent shall only deliver the Deposit as
18
otherwise provided herein. The Escrow Agent shall be entitled to continue so to
refrain from acting and so refuse to act in respect to the disputed portion of
the Deposit until the Escrow Agent receives authorization as follows:
(i) authorization executed by the Sellers and the Purchaser; or
(ii) a certified or file-stamped copy of a court order resolving the
disagreement or directing a specific distribution of the Deposit.
Upon receipt of any such document, the Escrow Agent shall promptly act according
to its terms, thereby being relieved from any duty, responsibility or liability
arising from the adverse claims and demands or from the terms of this Escrow
Agreement with respect to the Deposit, as applicable, covered by the terms of
such document.
Section 10. Discharge of Escrow Agent.
The delivery of the Deposit, in accordance herewith, shall terminate this Escrow
Agreement and wholly discharge the Escrow Agent from all responsibility
hereunder.
Section 11. Other Agreements. The Escrow Agent shall be deemed to have no notice
of, and shall not be controlled, limited or bound by any of the provisions
contained in any agreement, contract, or document among the Seller and the
Purchaser and any other person, except as such provision is specifically
contained herein.
Section 12. Headings. The article, section and paragraph headings in this Escrow
Agreement are for reference purposes only and shall not affect the meaning or
interpretation of this Escrow Agreement.
19
Section 13. Construction.
a. The parties have participated jointly in the negotiation and drafting of
this Escrow Agreement, and, in the event of an ambiguity or a question of
intent or a need for interpretation arises, this Escrow Agreement shall be
construed as if drafted jointly by the parties and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of
the authorship of any of the provisions of this Escrow Agreement.
b. Except as otherwise specifically provided in this Escrow Agreement (such
as by "sole," "absolute discretion," "complete discretion", or words of
similar import), if any provision of this Escrow Agreement requires or
provides for the consent, waiver, or approval of a party, such consent,
waiver, and/or approval shall not be unreasonably withheld.
c. Words of any gender used in this Escrow Agreement shall be held and
construed to include any other gender; words in the singular shall be held
to include the plural; and words in the plural shall be held to include
the singular; unless and only to the extent the context indicates
otherwise. Any reference to any federal, state, local, or foreign statute
or law shall be deemed also to refer to all rules and regulations
promulgated thereunder, unless the context requires otherwise. The word
"including" means "including, without limitation."
Section 14. Severability. If any provision of this Escrow Agreement is declared
by any court or other governmental body to be null, void, or unenforceable, this
Escrow Agreement shall be construed so that the provision at issue shall survive
to the extent it is
20
not so declared and that all of the other provisions of this Escrow Agreement
shall remain in full force and effect.
Section 15. Entire Agreement. This Escrow Agreement contains the entire
understanding among the parties hereto with respect to the transactions
contemplated hereby and supersedes and replaces all prior and contemporaneous
agreements and understandings, oral or written, with regard to those
transactions.
Section 16. Amendments; Waivers. This Escrow Agreement may be amended or
modified, and any of the terms, covenants, representations, warranties, or
conditions hereof may be waived, only by a written instrument executed by the
parties hereto, or in the case of a waiver, by the party waiving compliance. Any
waiver by any party of any condition, or of the breach of any provision, term,
covenant, representation, or warranty contained in this Escrow Agreement, in any
one or more instances, shall not be deemed to be or construed as a further or
continuing waiver of any condition or of the breach of any other provision,
term, covenant, representation, or warranty of this Escrow Agreement.
Section 17. Parties in Interest. Nothing in this Escrow Agreement is intended to
confer any rights or remedies under or by reason of this Agreement on any Person
other than the parties to this Escrow Agreement and their respective successors
and permitted assigns.
21
Section 18. Acknowledgement. It is understood and acknowledged by all parties to
this Escrow Agreement, that the law firm of Michael Harris, P.A. has prepared
this Escrow Agreement in connection with its representation of and in its
capacity as counsel for the Seller, and no other party.
Section 19. Successors and Assigns. No party hereto shall assign or delegate
this Escrow Agreement or any rights or obligations hereunder without the prior
written consent of the other parties hereto, and any attempted assignment or
delegation without prior written consent shall be void and of no force or
effect. This Escrow Agreement shall inure to the benefit of and shall be binding
upon the successors and permitted assigns of the parties hereto.
Section 20. Governing Law; Jurisdiction. This Agreement shall be construed and
enforced in accordance with, and governed by, the laws of the State of Florida
(without giving effect to the principles of conflicts of laws thereof). The
parties hereto irrevocably agree and consent to the non-exclusive jurisdiction
of the courts of the State of Florida and the federal courts of the United
States, sitting in the Southern District of Florida for the adjudication of any
matters arising under or in connection with this Escrow Agreement.
Section 21. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which shall
together constitute the same instrument.
22
Section 22. Legal Opinion. The Seller shall cause its counsel to promptly issue
legal opinions relying upon legal opinions submitted by Mylla, Leith and the
Other Shareholders at such times as shares of common stock are sold under Rule
144 as long as the opinions submitted to the Seller's counsel are consistent
with Rule 144.
IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed
by their duly authorized representatives, this Escrow Agreement as of the date
first above written.
Michael Harris, P.A.
By: /s/ Michael D. Harris
------------------------
Michael D. Harris, President
ESCROW
AGENT:__________________________________
WhOOdoo.com, Inc.,
a Delaware corporation
By: ____________________________________
President
K2 Ventures, Inc., a Bermuda corporation
By: ____________________________________
________________________________________
Paulo Mylla
________________________________________
Brian Leith
23
________________________________________
Ernest Sittenfield
________________________________________
Kevin Casey
________________________________________
Sharon Snew
________________________________________
Stephanie Pera
24
SCHEDULE A
ITEMIZED ASSETS
WhOOdoo.com, Inc CUSTOMERS TO BE TRANSFERED
- --------------------------------------------------------------------------------
Nancy Todd, Inc.
Deangelis Diamond Construction
John Soave, Inc.
River Reach
Management Recruiters
Suntamers
Phoenix Associates
Hortifruit
Internal Medicine Association
Nmagazine
Grate Technologies
Nature Trade Center (Biogenetics)
Ocean Conversions
Padulo International
PBS
Southwest Florida College
Consel Florida Inc.
Vacations Consulting(Brazil Nuts)
Nicole Caramel
G. Brynjulson
Coastline Shutters
Southern Bay Homes
Stefan Hafner
26North
Brainchild
BJ Haas/levane
Cobwebs and Chameleons
We Want Wisdom
Naples Airport Authority
Onboard Catering
Forum Design
Tyton Painting
NN First Baptist Church (Email accounts)
PRN
Smart Golf
Stahlman-EEngland/rain4u
Heavenly Cigar
Sunshine Mortgage.net
25
Forefront Accounts
collierpetcare.com
palmriverllc.com
reflectionssofnaples.com
kathypadgettgolf.comfwddev.com
straightsmile.com
bethsoboutique.com
fwddev.com
billsmarinererpair.com
- --------------------------------------------------------------------------------
INTELLECTUAL PROPERTIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Sites/Source
Code/software for:
- --------------------------------------------------------------------------------
whoodoo.com
- --------------------------------------------------------------------------------
Aqueous.com
- --------------------------------------------------------------------------------
Auction site
- --------------------------------------------------------------------------------
whoomail.com
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Domain Names
- --------------------------------------------------------------------------------
whoodoo.com
- --------------------------------------------------------------------------------
whoodoo.net
- --------------------------------------------------------------------------------
BGSSWF.net
- --------------------------------------------------------------------------------
ICSdev.net
- --------------------------------------------------------------------------------
whodo.com
- --------------------------------------------------------------------------------
whodo.net
- --------------------------------------------------------------------------------
Aqueous.com
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Trademarks
- --------------------------------------------------------------------------------
whoodoo.com logo
- --------------------------------------------------------------------------------
whoodoo.com name
- --------------------------------------------------------------------------------
26
- -------------------------------------------------------------------------------------------
B. OFFICE EQUIPMENT
- -------------------------------------------------------------------------------------------
Item Number Item Number
===========================================================================================
Copier Xerox 74h24114799
- -------------------------------------------------------------------------------------------
Facsimile Panasonic KXF1150 6larbo22987
===========================================================================================
- -------------------------------------------------------------------------------------------
C. COMPUTER EQUIPMENT
- -------------------------------------------------------------------------------------------
Item Number Serial
- -----------================================================================================
Dell Dimesion XPS 300MHz Pentium II MinTower base 2 BRV7C/BRV7Q/
withMMX Technology and 512K Cashe
- -------------------------------------------------------------------------------------------
Microsoft PS2 Intellimouse, shipped with system 2 BRV7C/BRV7Q/
- -------------------------------------------------------------------------------------------
WIN 95 Spacesaver Quiet Key, 104 Key Keyboard, 2 BRV7C/BRV7Q/
Factory Installed
- -------------------------------------------------------------------------------------------
128MB, SDRAM, DIMM ECC, Factory Installed 2 BRV7C/BRV7Q/
- -------------------------------------------------------------------------------------------
Altec ACS90 Speakers Shipped with system 2 BRV7C/BRV7Q/
- -------------------------------------------------------------------------------------------
Creative Labs AWE64 ISA Sound Card, Factory Installed 2 BRV7C/BRV7Q/
- -------------------------------------------------------------------------------------------
12/24x EIDE CD ROM, Factory installed 2 BRV7C/BRV7Q/
- -------------------------------------------------------------------------------------------
Dell 1200HS, Model #D1226H, with 17.9"viewable Image 2 86385/86385-codtu
size, color monitor
- -------------------------------------------------------------------------------------------
STB, Nitro, 4MB, Virge GX, SPS PCI, video board, 2 BRV7C/BRV7Q/
factory installed
- -------------------------------------------------------------------------------------------
3.5, 1.44MB floppy drive, factory installed 2 BRV7C/BRV7Q/
- -------------------------------------------------------------------------------------------
4.3GB EIDE ultra ATA hard drive, factory installed 2 BRV7C/BRV7Q/
- -------------------------------------------------------------------------------------------
Iomega Zip drive for Windows 95 factory installed 2 BRV7C/BRV7Q/
- -------------------------------------------------------------------------------------------
Windows `95 CD ROM factory installed 2 BRV7C/BRV7Q/
- -------------------------------------------------------------------------------------------
3 Com, 3C905-TX, Ethernet, network card, Windows 95 2 BRV7C/BRV7Q/
factory installed
- -------------------------------------------------------------------------------------------
MS Office 97 small business edition, CD, factory 2 BRV7C/BRV7Q/
installed US English
- -------------------------------------------------------------------------------------------
MS Bookshelf 96 on CD, W95, NT4.0, US English, 2 BRV7C/BRV7Q/
Factory installed
- -------------------------------------------------------------------------------------------
Dell Dimesion XPS 300MHz Pentium II MinTower base 1 BRX1P
withMMX Technology and 512K Cashe
- -------------------------------------------------------------------------------------------
Microsoft PS2 Intellimouse, shipped with system 1 BRX1P
- -------------------------------------------------------------------------------------------
27
- -------------------------------------------------------------------------------------------
WIN 95 Spacesaver Quiet Key Keyboard, Factory 1 BRX1P
Installed
- -------------------------------------------------------------------------------------------
128 MB, SDRAM, DIMM ECC, factory installed 1 BRX1P
- -------------------------------------------------------------------------------------------
Altec ACS90 Speakers Shipped with system 1 BRX1P
- -------------------------------------------------------------------------------------------
Creative Labs AWE64 ISA Sound Card, Factory Installed 1 BRX1P
- -------------------------------------------------------------------------------------------
12/24x EIDE CD ROM, Factory installed 1 BRX1P
- -------------------------------------------------------------------------------------------
Ultrascan 1000TX, color monitor, Model #D1025HTX, 1 8055898
15.9" vis, factory installed, dimension
- -------------------------------------------------------------------------------------------
STB, Nitro, 4MB, Virge GX, SPS PCI, video board, 1 BRX1P
factory installed
- -------------------------------------------------------------------------------------------
3.5, 1.44Floppy drive, factory installed 1 BRX1P
- -------------------------------------------------------------------------------------------
4.3 EIDE ultra ATA hard drive, factory installed 1 BRX1P
- -------------------------------------------------------------------------------------------
Iomega Zip drive for Windows 95 factory installed 1 BRX1P
- -------------------------------------------------------------------------------------------
3 Com, 3C905-TX, Ethernet, network card, Windows 95 1 BRX1P
factory installed
- -------------------------------------------------------------------------------------------
MS Office 97 Professional with Bookshelf Basics on CD 1 BRX1P
Factory installed, US., English
- -------------------------------------------------------------------------------------------
Dell PowerEdge 2200 Base, 266 MHz Processor with 512K 2 CJB13/BQP51
cashe
- -------------------------------------------------------------------------------------------
Logited System mouse, with disks not factory installed 2 CJB13/BQP51
- -------------------------------------------------------------------------------------------
Performance 104 key keyboard for Windows 95 factory 2 CJB13/BQP51
installed
- -------------------------------------------------------------------------------------------
Dell PowerEdge 4200, processor terminator card, 2 CJB13/BQP51
factory installed
- -------------------------------------------------------------------------------------------
8x SCSI CD-ROM drive, factory installed 2 CJB13/BQP51
- -------------------------------------------------------------------------------------------
Ultrascan 800 HS (13.7"vis) trinitron model #D825HT 5 8463233/711716
with 13.7"viewable image size for Dell Optiplex, 6/8463235/8470
factory installed 139/8463225
- -------------------------------------------------------------------------------------------
9 GB SCSI Hard drive, factory installed 2 CJB13/BQP51
- -------------------------------------------------------------------------------------------
Hard drive configuration for Dell PowerEdge 2100 2 CJB13/BQP51
factory installed
- -------------------------------------------------------------------------------------------
1.4 MB floppy drive for Dell PowerEdge 2200 factory 2 CJB13/BQP51
installed
- -------------------------------------------------------------------------------------------
12/24 GB tape backup, for Dell PowerEdge 2200 factory 2 CJB13/BQP51
installed
- -------------------------------------------------------------------------------------------
ReadyWare installation Fee per system 2 CJB13/BQP51
- -------------------------------------------------------------------------------------------
Intel EtherExpress PRO 100/B PCI Ethernet Adapter 2 CJB13/BQP51
factory installed
- -------------------------------------------------------------------------------------------
Microsoft NTS 4.0 on CD, 10 client access licenses 2 CJB13/BQP51 OEM
packaging, US version non-factory installed
- -------------------------------------------------------------------------------------------
28
- -------------------------------------------------------------------------------------------
128 MB RAM (64MB free) upgrade, 1 DIMM, for Dell 2 CJB13/BQP51
PowerEdge 2200 factory installed
- -------------------------------------------------------------------------------------------
SMART-UPS 1000VA Net Bundle 2 CJB13/BQP51
- -------------------------------------------------------------------------------------------
Superstack II Hub 100TX 12 POR 1 CJB13/BQP51
- -------------------------------------------------------------------------------------------
Dell Dimesion 166 MHz Minitower Base with MMX 3 BQSOC/BQRYS/BQR2
Technology, 512 Cashe and 2 MB video
- -------------------------------------------------------------------------------------------
Microsoft PS2 Intellimouse, factory installed 3 BQSOC/BQRYS/BQR2
- -------------------------------------------------------------------------------------------
WIN 95 Spacesaver Quiet Key Keyboard, factory 3 BQSOC/BQRYS/BQR2
installed
- -------------------------------------------------------------------------------------------
64 MB RAM, 2 DIMMS, SDRAM, factory installed 3 BQSOC/BQRYS/BQR2
- -------------------------------------------------------------------------------------------
Vibra 16C Sound Card for Windows 95, factory installed 3 BQSOC/BQRYS/BQR2
- -------------------------------------------------------------------------------------------
Altec ACS90 Speakers Shipped with system 3 BQSOC/BQRYS/BQR2
- -------------------------------------------------------------------------------------------
12/24 xEIDE CD ROM factory installed 3 BQSOC/BQRYS/BQR2
- -------------------------------------------------------------------------------------------
Ultrascan 800 HS (13.7"vis) trinitron model #D825HT 3 8463225
with 13.7"viewable image size for Dell Optiplex,
factory installed
- -------------------------------------------------------------------------------------------
3.2 GB EIDE hard drive, factory installed 3 BQSOC/BQRYS/BQR2
- -------------------------------------------------------------------------------------------
Iomega, removable storage Zip EIDE, for Windows 95 3 BQSOC/BQRYS/BQR2
factory installed
- -------------------------------------------------------------------------------------------
Windows `95 CD ROM factory installed 3 BQSOC/BQRYS/BQR2
- -------------------------------------------------------------------------------------------
3C905-TX ENET 10/100 Network dard factory installed 3 BQSOC/BQRYS/BQR2
- -------------------------------------------------------------------------------------------
MS Office 97 small business edition, CD, factory 3 BQSOC/BQRYS/BQR2
installed US English
- -------------------------------------------------------------------------------------------
MS Bookshelf 96 on CD, W95, NT4.0, US English, 3 BQSOC/BQRYS/BQR2
Factory installed
- -------------------------------------------------------------------------------------------
IBM PAR PNTR CENT DB25 MALE/36 2 BQSOC/BQRYS/BQR2
- -------------------------------------------------------------------------------------------
HP Deskjet 890CXI EXTL 1 US789120C9
- -------------------------------------------------------------------------------------------
HP Scanjet 5P 24Bit CLR & 8 BIT 2 SG77H1123G/S
G74M11OQ
- -------------------------------------------------------------------------------------------
HP Jetdirect EX Hi-performance 1
- -------------------------------------------------------------------------------------------
CD-R 2006/Plus 2X INT Recorder 1
- -------------------------------------------------------------------------------------------
Digital Mavica still Camera 1
- -------------------------------------------------------------------------------------------
Adaptec Fast SCSI-2 Bit PCI Adapter 1
- -------------------------------------------------------------------------------------------
Back-ups 400 from APC 4
- -------------------------------------------------------------------------------------------
APC Back-ups 280 SBY 280VA/180W 4
- -------------------------------------------------------------------------------------------
29
- -------------------------------------------------------------------------------------------
APC Personal Surge Protection (7outlet) 4
- -------------------------------------------------------------------------------------------
APC Personal Surge Protection (7 Outlet +telephone 1
- -------------------------------------------------------------------------------------------
NET3T Network Surge Arrest (3 Outlet+Modem/fax) from 1
APC
- -------------------------------------------------------------------------------------------
3" CAT5 patch cable 4
- -------------------------------------------------------------------------------------------
14" CAT5 patch cable 3
- -------------------------------------------------------------------------------------------
25" CAT5 patch cable 3
- -------------------------------------------------------------------------------------------
3 Com Fast Ether Link XL/100Mbps PCI RJ 45 Network 4
adapter
- -------------------------------------------------------------------------------------------
Netport Express PRO/100 FastEthernet 2 port ext multi 1
OS print servier by Intel
- -------------------------------------------------------------------------------------------
Etherlink III Ethernet PCCCARD RJ45 NIC Type II PCMCIA 1
- -------------------------------------------------------------------------------------------
19" 4 unit rack mount 9.3"x 12" 1
- -------------------------------------------------------------------------------------------
Smart-ups 1000 from APC (6 outlet) 1
- -------------------------------------------------------------------------------------------
Microsoft Proxy server v2.O for Windows NT CD 1
- -------------------------------------------------------------------------------------------
Dell Power Vault 20XS 8-Drive Enclosure Base system 1 N009478u-13260
- -------------------------------------------------------------------------------------------
Cable, PERC, 4 Meter for Dell PowerVault 200/201 S, 2 N009478u-13260
factory installed
- -------------------------------------------------------------------------------------------
Deskside Tower Enclosure for Dell PowerVault 200S 1 N009478u-13260
factory installed
- -------------------------------------------------------------------------------------------
Non-redundant power supply, Incl.,closeout panel to 1 N009478u-13260
occupy redundant pwr supply space for ell PV20XS
factory installed
- -------------------------------------------------------------------------------------------
hard drive configuration, increasing order Dell 1 N009478u-13260
PowerEdge SDS100 and PowerVAult 20XS factory installed
- -------------------------------------------------------------------------------------------
18 GB Hard Drive, 10000RPM for Dell PowerVAult 1 N009478u-13260
200S/201S, factory installed
- -------------------------------------------------------------------------------------------
two Enclosure services expander modules for dell 1 N009478u-13260
PowerVault 200S/201S factory installed
- -------------------------------------------------------------------------------------------
4 x 18.2GB LVD SCSI Hard Drives, 10000RPM for Dell 1 N009478u-13260
PowerVAult 200S/201S, 1X 8 Back Plane, factory installed
- -------------------------------------------------------------------------------------------
No Operating System for Dell PowerEdge Servers 1 N009478u-13260
- -------------------------------------------------------------------------------------------
Documentation Kit, Hard Copy and on CD, English for 1 N009478u-13260
Dell PowerVault 200S/201S factory installed
- -------------------------------------------------------------------------------------------
SelectCare, next business day on-site service 1 N009478u-13260
contract, Initial year, Wang
- -------------------------------------------------------------------------------------------
SelectCare, next business day on-site service 1 N009478u-13260
contract, 2 year extended, Wang
- -------------------------------------------------------------------------------------------
30
- -------------------------------------------------------------------------------------------
Dell P6500K GX1 p/T+ Base (100 MHz FSB), w/*MB Int. 1 OCM8X
Video Memory, Int. Audio, Int, 10/100 WuOL
Networking, 512K Cashe
- -------------------------------------------------------------------------------------------
MOD, RSR, 7 SLT, ACTIVE, MT, WOL 1 OCM8X
- -------------------------------------------------------------------------------------------
Module, 1 DIMM, 128 MB, ECC, SDRAM 3 OCM8X
- -------------------------------------------------------------------------------------------
MOD, CD, 680M, I, 17/40X, MT, MOLEX 1 OCM8X
- -------------------------------------------------------------------------------------------
Kit, Sofware, McAfee Virus Scan 4.02, F5, United 1 OCM8X
States, Original Equipment Manufacturer
- -------------------------------------------------------------------------------------------
CORD PWR 6FT, SJT 1 OCM8X
- -------------------------------------------------------------------------------------------
MSE, PS2 6P, 2BTN/WHL, INTELLI, MS 1 OCM8X
- -------------------------------------------------------------------------------------------
Kit, Documentation/Compact Disk, Windows98, V0.8, 1 OCM8X
compact Disk, English
- -------------------------------------------------------------------------------------------
Hard Drive 8.4GB, Medium Tower 1 OCM8X
- -------------------------------------------------------------------------------------------
MOD,CRD, VID, 16M, NVDIA, PCI, STB 1 OCM8X
- -------------------------------------------------------------------------------------------
DIS, MSCN, CLR, 21, D, D1626HT, US 1 OCM8X
- -------------------------------------------------------------------------------------------
KIT, SPKR, MM, HRMNK 1 OCM8X
- -------------------------------------------------------------------------------------------
Kit, Sofware, Workstations, STE99, JAVA, US, Original 1 OCM8X
equipment mfgr.
- -------------------------------------------------------------------------------------------
MOD, FD, 1.44, F3, NBZ, HTRP, NEC 1 OCM8X
- -------------------------------------------------------------------------------------------
KYBD, 104, 6P, US, W95, MECH, CMOS4 1 OCM8X
- -------------------------------------------------------------------------------------------
Select care, next business day on site service 1 OCM8X
Initial year BSC
- -------------------------------------------------------------------------------------------
Select care, next business day on site service 2 year 1 OCM8X
extended, BSC
- -------------------------------------------------------------------------------------------
SVT#0CM8X/Refurbished OCM8X
- -------------------------------------------------------------------------------------------
BASE, MT, W/O-SND, T500 1 OCM8X
- -------------------------------------------------------------------------------------------
Module, Card, Video, 16MB, Accelerated Graphics Port, 1 OCM8X
Diamond
- -------------------------------------------------------------------------------------------
Kit, software, McAfee Virus Scan 4.02, F5 US, 1 OCM8X
original equip. mfgr.
- -------------------------------------------------------------------------------------------
128MB, SDRAM Memory, Factory installed 1 OCM8X
- -------------------------------------------------------------------------------------------
Module, Modem V80, Internal PC Interface, Coyuote, 1 OCM8X
Asia, Latin, America, North America
- -------------------------------------------------------------------------------------------
CORD, PWR 6FT, SJT 1 OCM8X
- -------------------------------------------------------------------------------------------
MSE, PS2, 6P, 2BTN/WHL, INTELLI, MS 1 OCM8X
- -------------------------------------------------------------------------------------------
KYBD, 104, 6P, US, NMB, RD, CMOS3 1
- -------------------------------------------------------------------------------------------
Kit, Documentation/Compact Disk, Windows98, V0.8, 1 OCM8X
compact Disk, English
- -------------------------------------------------------------------------------------------
Module, Card, Audio, Soundblaster 1 OCM8X
- -------------------------------------------------------------------------------------------
31
- -------------------------------------------------------------------------------------------
MOD, DVD, 4.7GB, I, F5, TOS, NSND 1 OCM8X
- -------------------------------------------------------------------------------------------
Module, Floppy Drive, 1.44M, F3, No Bezel, China 1 OCM8X
- -------------------------------------------------------------------------------------------
DIS, MSCN, CLR, 21, D, D1626HT, US 1 OCM8X
- -------------------------------------------------------------------------------------------
KIT, SPKR, MM, HRMNK 1 OCM8X
- -------------------------------------------------------------------------------------------
Module, Compact Disk Drive, Compact Disk Rewritable, 1 OCM8X
Dual
- -------------------------------------------------------------------------------------------
Module, Hard Drive, 13.6GB, Klinger 1 OCM8X
- -------------------------------------------------------------------------------------------
PCI DBD Decoder Card for DVD ROM, factory install 1 OCM8X
- -------------------------------------------------------------------------------------------
SelecCare, Initial year, next business day on site 1 OCM8X
service contract, BSC
- -------------------------------------------------------------------------------------------
SelectCare, 2 years extended, next business day on 1 OCM8X
site service contract, BSC
- -------------------------------------------------------------------------------------------
SVT #0FW3J/Refurbished 9686
- -------------------------------------------------------------------------------------------
Dell PowerEdge 2300 Base.Pill. 450MHz Processor with 1 9686
512K Cache
- -------------------------------------------------------------------------------------------
Logitec System Mouse w/ Driver Disks, Factory Install 1 9686
- -------------------------------------------------------------------------------------------
Uninterruptable Power Supply, 700V, Stand Alone, 1 9686
Adapter Factory Install
- -------------------------------------------------------------------------------------------
Keyboard, Factory Install 1 9686
- -------------------------------------------------------------------------------------------
2X3 Passive Backplane for Dell PowerEdge 2300, 1 9686
Factory Install
- -------------------------------------------------------------------------------------------
512MB DRAM, 1 X 512MB DIMM, Factory Install 1 9686
- -------------------------------------------------------------------------------------------
Dell PowerEdge 1300/2300/4300/4350, 450 MHz/512K, P3, 1 9686
Second Processor, Factory Install
- -------------------------------------------------------------------------------------------
14/32X SCSI CD-ROM, for Dell PowerEdge 2300, Black, 1 9686
Factory Install
- -------------------------------------------------------------------------------------------
Monitor Option-None 1 9686
- -------------------------------------------------------------------------------------------
RAID 0 Hard Drive Config, for Dell PowerEdge 2300, 1 9686
Factory Install
- -------------------------------------------------------------------------------------------
1.44MB Floppy Drive for Dell PowerEdge 2300, Factory 1 9686
Install
- -------------------------------------------------------------------------------------------
20/40GB DLT4000 Tape Backup for Dell PowerEdge 2300, 1 9686
Black, Factory Install
- -------------------------------------------------------------------------------------------
9.1GB LVD SCSI Hard Drive for Dell PowerEdge 2300, 5 9686
Server, Factory Install
- -------------------------------------------------------------------------------------------
PERC2 Four Channel RAID Card, 32MB Cache, One Channel 1 9686
to the Backplane, for Dell PowerEdge 2300, Factory
Install
- -------------------------------------------------------------------------------------------
READYWARE INSTALLATION FEE 1 9686
- -------------------------------------------------------------------------------------------
No Operating System, Contains Utility Partition 1 9686
- -------------------------------------------------------------------------------------------
32
- -------------------------------------------------------------------------------------------
Intel Pro 100 Plus Ethernet Network Card, Factory 1 9686
Install
- -------------------------------------------------------------------------------------------
*SelectCare, Next Business Day On-Site Service, 1 9686
Initial Year, Wang
- -------------------------------------------------------------------------------------------
*SelectCare, Next Business Day On-Site Service, 2 1 9686
Year Extended, Wang
- -------------------------------------------------------------------------------------------
Power Supply, 460W,5.OV,PV2XXS 1 9686
- -------------------------------------------------------------------------------------------
Customer Kit, Documentation, Airborne 1 9686
- -------------------------------------------------------------------------------------------
Fast EtherLink XL10/100TX PCI Cat 5 UTP NIC 3C905B-TX 1 9686
- -------------------------------------------------------------------------------------------
12/24GB DDS-3 Seagate Tape Back Up, Customer Install 1 9686
- -------------------------------------------------------------------------------------------
12/24GB DDS-3 DAT Tape Cartridge, Formatted, 1 9686
Quantity=5, Customer Install
- -------------------------------------------------------------------------------------------
PERC2 Four Channel RAID Card, 128MB Cache, No Cables 1 9686
Included for Dell PowerEdge 2300/4300/6300, Customer
Install
- -------------------------------------------------------------------------------------------
CPQ Proliant 1850/500 128MB EA 1 327627002
- -------------------------------------------------------------------------------------------
CPQ Proliant 128MB SDRAM DIMM EA 1 327627002
- -------------------------------------------------------------------------------------------
CPQ 256MB REGISTERED SDRAM DIM EA 1 327627002
- -------------------------------------------------------------------------------------------
CPQ 9.1GB PLUG W/ULTRA2 SCSI 1 EA 2 327627002
- -------------------------------------------------------------------------------------------
CPQ NETELLIGENT 10/100 TX PCI EA 1 327627002
- -------------------------------------------------------------------------------------------
CPQ 12/24GB DDS3 DAT OPAL EA 1 327627002
- -------------------------------------------------------------------------------------------
CPQ 7/600 PROCESSOR OPTION KIT EA 1 327627002
- -------------------------------------------------------------------------------------------
APC SMART UPS 1400 NET EA 1 327627002
- -------------------------------------------------------------------------------------------
MS W2000 SRVR 5 CAL EA 1 327627002
- -------------------------------------------------------------------------------------------
Compaq/15" LDC Rack Mount Monitor 1 327627002
- -------------------------------------------------------------------------------------------
HP 6355 Celeron 330MHz, 128K RAM, 15" monitor, mount 1 6355d7306
and keyboard
- -------------------------------------------------------------------------------------------
Sony VAIO Intel 300MHz, 128K RAM, 15" Monitor and 1 2629392
keyboard
- -------------------------------------------------------------------------------------------
CPQ Proliant 300/600 128MB EA 1 d006ddl1k027
- -------------------------------------------------------------------------------------------
CPQ Proliant 128MB SDRAM DIMM EA 1 d006ddl1k027
- -------------------------------------------------------------------------------------------
CPQ 256MB REGISTERED SDRAM DIM EA 1 d006ddl1k027
- -------------------------------------------------------------------------------------------
CPQ 9.1GB PLUG W/ULTRA2 SCSI 1 EA 4 d006ddl1k027
- -------------------------------------------------------------------------------------------
CPQ NETELLIGENT 10/100 TX PCI EA 1 d006ddl1k027
- -------------------------------------------------------------------------------------------
CPQ 12/24GB DDS3 DAT OPAL EA 1 d006ddl1k027
- -------------------------------------------------------------------------------------------
CPQ 7/600 PROCESSOR OPTION KIT EA 2 d006ddl1k027
- -------------------------------------------------------------------------------------------
33
- -------------------------------------------------------------------------------------------
APC SMART UPS 1400 NET EA 1 d006ddl1k027
- -------------------------------------------------------------------------------------------
MS W2000 SRVR 5 CAL EA 1 d006ddl1k027
- -------------------------------------------------------------------------------------------
HP Scanjet 4100c 1 MY87M531SG
- -------------------------------------------------------------------------------------------
HP Deskjet 697 1 c4562c
- -------------------------------------------------------------------------------------------
HP Laserjet 6P 2 uscc009060/uscc
009044
- -------------------------------------------------------------------------------------------
Dell 21"Monitor 2 55347ao34P19/5
3347BO63W19
- -------------------------------------------------------------------------------------------
Dell 19"Monitor 2 86385/coh48
- -------------------------------------------------------------------------------------------
Dell Dimension XPT 500 1 OFw3j
- -------------------------------------------------------------------------------------------
SCHEDULE B
ENUMERATED LIABILITIES
Aged Payables Listing As of May 23, 2000
Vendor List Amount
- ----------- ----------
ADT Security System $ 98.42
Cheffy Passidomo Wilson & Co. $ 600.00
CSC The US Corporation $ 185.00
Durocher Dixson Werba, LLC $ 1,754.90
Michael Baybak $ 3,500.00
Nanologic $ 6,000.00
Naples Printing $ 379.48
Olde Monmouth Stock Transfer $ 265.00
Pitney Bowes $ 312.75
Total Bank $ 1,399.85
WGUF $ 1,939.96
----------
Total Aged Payable Listing $16,435.36
==========
34
- -------------------------------------------------------------------------------------
Name of Type of Amount of
Supplier Service Settlement Status
- -------------------------------------------------------------------------------------
Data Sales Computer Hardware Lease $20,000.00 Release Received
Compaq Financial Computer Software Lease $ 3,500.00
The Impact Group Co-Location $ 4,417.00 Release Received
Tell Commercial Development Office Space Rental $ 1,962.00 Release Received
Sprint Data Line $ 750.00
Accuweather Content $ 4,304.00 Waiting for
confirmation.
Michael D. Harris, P.A. Legal $12,000.00
Sweeney & Gates Accounting $10,000.00
Ernest Sittenfeld Promissory Note $10,000.00
Pitney Bowes PhotoCopier $ 2,400.00
- -------------------------------------------------------------------------------------
$(69,333.00)
===========
Aged Receivables As of Fax received
May 23, 2000
Customer Amount
- -------- ---------
Biogenetics $275.00
BJ Haas Inc $1,250.00
Consel Inc. of Florida $20.00
Coastline Shutter Corporation $240.00
First Baptist Church $(66.00)
Martha J. Dodd $250.00
Padulo International $150.00
Smart Golf $355.00
Stefan Hafner $500.00
---------
Total Aged Receivables $2,974.00
=========
35
SCHEDULE C
Reissue To: Number of Shares in Seller:
K2 Ventures, Inc. 11,235,700
Paulo Mylla 171,900
Brian Leith 50,600
Ernest Sittenfield 4,000
Kevin Casey 2,000
Sharon Snew 600
Stephanie Pera 200
- --------------------------------------------------------
Total Shares 11,465,000
36
SCHEDULE D
Aged Receivables As of Fax received
May 23, 2000
Customer Amount
- -------- ---------
Biogenetics $275.00
BJ Haas Inc $1,250.00
Consel Inc. of Florida $20.00
Coastline Shutter Corporation $240.00
First Baptist Church $(66.00)
Martha J. Dodd $250.00
Padulo International $150.00
Smart Golf $355.00
Stefan Hafner $500.00
---------
Total Aged Receivables $2,974.00
=========
37