Note 11: Related Party Transaction Watermark originally entered into a
republishing and distribution agreement with a UK company (the "Distributor")
which provided the Distributor with exclusive distribution rights of Watermark's
products in defined territories. The Chief Executive Officer of the Distributor
is the brother of Xxxxxxxxx's then President and Chief Executive Officer. During
1995, Xxxxxxxxx elected to purchase the portion of the Distributor's business
related to selling Watermark's products at a negotiated price of $2.5 million
which is included in merger and other costs in 1995.
