Quarterly report pursuant to Section 13 or 15(d)

NOTE 8 - CONVERTIBLE PREFERRED STOCK

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NOTE 8 - CONVERTIBLE PREFERRED STOCK
6 Months Ended
Jun. 30, 2012
Equity [Abstract]  
NOTE 8 - CONVERTIBLE PREFERRED STOCK

 

 

NOTE 8 - 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 10,869,565 common shares at June 30, 2012).
  * 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.