Griever/Defendants' Admission

IN THE STATE COURT OF ATHENS-CLARKE COUNTY

STATE OF GEORGIA

NICK STADDON AND COX-STADDON ENTERPRISES, INC., D/B/A RED HOUSE MEDIA AND D/B/A VBZ.NET, Plaintiffs, v. THE REDISTRIBUTION ALTERNATIVE, INC., WILLARD DALE GRIEVER AND NORMA LYNNE GRIEVER, Defendants.

CIVIL ACTION #ST-05-CV-0049

DEFENDANTS' ADMISSION OF FACTS TO PLAINTIFFS

TO: PLaintiffs and PLaintiffs' Attorney of Record, Cynthia Call

COME NOW Defendants and require Plaintiffs to admit that:

1

The Plaintiff(s) entered into a standard artists agreement with any or all Defendants in 1997 when T-shirts from Defendants' suppliers were entered into the store which was, at the time, labeled the BubbaLynne Bazaar - BLB at redhouse.com/store/blb.

2

That the standard split which was given to Defendants and any other artist or vendor in the store, was 80% to the Defendants and 20% to Nick Staddon/Red House Media.

3

That the original plan was to build a minimum order of gifts or T-Shirts in retail sales to cover the costs of the minimum wholesale orders.