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COMMITMENTS AND CONTINGENCIES
 6 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
COMMITMENTS AND CONTINGENCIES

NOTE F – COMMITMENTS AND CONTINGENCIES

 

Exclusive Licensing, Distribution and Advertising Sales Agreement

 

On February 15, 2011, in conjunction with the settlement of the Spectrum Note, Spectrum and Seatac entered into an Exclusive Licensing, Distribution and Advertising Sales Agreement with the Company (the "Agreement").  Under the terms of the three-year renewable Agreement, the Company was granted a license to promote, distribute and sell certain products developed and sold by Spectrum relative to its digital media network in the southeastern United States.  The Agreement relates to all current and future Spectrum products and/or services developed by Spectrum, specifically services pertaining to the digital signage waiting room network built for the multispecialty group practice and independent physician associations ("IPAs") including (i) network subscriptions sold to multispecialty group practices and IPAs for software, hardware and content developed for and distributed by Spectrum, and (ii) advertising spots on Spectrum's network.  The Company may earn up to thirty percent (30%) of fees paid for subscriptions and advertising spots.

 

Consulting Agreement with Back Office Consultants, Inc.

 

On February 15, 2011, the Company entered into a Consulting Agreement with Back Office Consultants, Inc. ("Back Office") pursuant to which Back Office agrees to provide accounting and corporate compliance services to the Company for a monthly fee of $7,000.  During the six months ended June 30, 2011, the Company recorded consulting expense totaling $42,000.  The one-year agreement has an effective date as of January 1, 2011.  The president of Back Office is a former officer and shareholder of the Company.