Issuance of shares

The basic arrangement for the first issue of stock is rather simpler than the things we talked about in January.

1. The stock will be issued at $1.00 a share.

2. If you have the money ready, you can buy any number of shares for cash. (There's an extra goody attached to this, described later.)

3. If you have computing equipment relevant to the company's needs, you can sell it for stock at fair market value. Obviously you don't want to do this if you're using the computer in a consulting business and don't want it moved out of town by the company. (If you've taken accelerated depreciation or investment credit, you'll have to worry about recapture on your next income tax form.)

4. You can get up to 3,000 shares on a 10% note, which we expect you to redeem out of your share of the income when there is any. If the company goes belly-up, however, you're fully liable for this loan.

5. Everyone is to take at least 3,000 shares on some basis or other.

You'll notice that we have written everyone down for some amount of stock in the Organization Plan. Don't be upset if you don't recognize the numbers opposite your name; we had to make some kind of guess, and this doesn't represent a commitment, expectation, or anything else.

We expect to issue some additional shares for other considerations. Among these will be the rights to Interact and the expenses that MSL incurs during the formation of the company. We may also sell small blocks of stock for cash to non-employees closely associated with the founding of the company, such as legal and financial experts.

Shortly before the stock is issued, we need to know exactly how much each person is taking, and on which basis.