Quarterly report pursuant to Section 13 or 15(d)

NOTE 8 - CONVERTIBLE PREFERRED STOCK

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NOTE 8 - CONVERTIBLE PREFERRED STOCK
9 Months Ended
Sep. 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 31,645,570 common shares at September 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.