Quarterly report pursuant to Section 13 or 15(d)

CONVERTIBLE PREFERRED STOCK

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CONVERTIBLE PREFERRED STOCK
3 Months Ended
Mar. 31, 2013
Convertible Preferred Stock  
Convertible Preferred Stock

NOTE 7 - CONVERTIBLE PREFERRED STOCK

 

The Series E Convertible Preferred Stock carries the following rights and preferences;

 

  * No dividends.
  * Convertible to common stock at the average closing bid price for the Company’s common stock for the 5 trading days prior to the conversion date, and is adjustable to prevent dilution.  (Convertible to 9,433,962 common shares at March 31, 2013).
  * Convertible at the Option of the Company at par value only after repayment of the shareholder loans from Joseph Fiore and subject to the holder’s option to convert.
  * Entitled to vote 1,000 votes per share of Series E Convertible Preferred Shares.
  * Entitled to liquidation preference at par value.
  * Is senior to all other share of preferred or common shares issued past, present and future.