Exhibit 10
Item 5 Other Events
Hand Written Stipulation Agreement of Xxxxxxx Xxxxxx and Xxxxxx Xxxxxx
CCVC $ DataNet 1/5/01
Resolution of Differences
Page 1 of 2
1. DataNet (DN) will work with Xxxxx Xxxxxxxx to get the CCVC audit
completed, along with the DN audit, within 30 days and with the CCVC
value in excess of 2 million. DN will follow the required procedure, as
defined by Xxx Xxxxxxx, to properly "domicile" in Nevada. Afterwards,
the appropriate SEC documents will be modified accordingly. Each
company will pay their own fees.
2. DN will receive up to $400,000 from CCVC by being paid 25% on a prorata
basis of proceeds from the exercise of the Series A warrants. The
transfer agent will periodically furnish reports of dollars raised. The
warrants would be exercised when the stock is more than $6.
3. DN will receive 25,000 warrants to be held by the BDC attorney for six
months. The warrants will be in the name of Xxx Xxxxxx (1/2) and Xxxxxx
Xxxxxx (1/2); they will have the provision for "cashless exercise" they
will be sold by the CCVC designated market maker. The warrants will
have a 6 month-stop-transfer and thus will not be held by the BDC
attorney. Xxxxxx & Xxxxxx will each pay a total of $10 for the
warranties, open a brokerage account with MD Securities and pay
appropriate brokerage fees.
4. Xxx Xxxxxxx will retire his DN stock.
5. CCVC will prepare the documentation for this new agreement and for the
discharge of the old agreement.
6. DN (LL&BB) will have the right to approve or veto the CCVC nominee to
the DN Board of Directors.
7. DN has the right to pursue separate financing alternatives and
development paths. CCVC will no longer control the DN checkbook.
8. Somehow (to be researched) DN shareholders will gain voting control for
DN to maintain autonomy. BDC preferred A convertible to DN common is
the control issue and we need to work out how the BDC can have value
while DN has control to plot its own course if desired.
CCVC & DN 1/5/01
Page 2 of 2
9. These points are agreed to by Xxx Xxxxxx and Xxxxxx Xxxxxx.
# Modification
#3 The Warrants will have a 6 month stop transfer and tey will not be
held by the BDC attorney. Xxxxxx and Xxxxxx will each pay a total of
$10.00 for these warrants, open a brokerage account with M.D Securities
and pay appropriate brokerage fees.
#2 The warrants would be exercised when the stock is more then $6.00.
s/ Xxxxxxx Xxxxxx 1/5/01 s/ X. Xxxxxx 1/5/01
