Poseidis, Inc. ("Poseidis" or the "Company"), together with its
subsidiary Montespan SAS ("Montespan"), is engaged in the development of a
sparkling mineral water spring in central France known as the La Troliere
Spring. We refer to this spring as the "Source". Our objectives are to develop
and market a new brand of sparkling natural mineral water under the brand name
"l' Eau de Montespan" as well as other beverage products, potentially a line of
cosmetics products utilizing the mineral water drawn from the Source, and other
related products and merchandise.
REAL ESTATE PURCHASE AGREEMENT
In October 2005 Montespan entered into a real estate purchase agreement
with Christian Berthier, as amended in March 2006 (the "Berthier Agreement"), to
acquire the land where the Source is located for 2,150,000 euros (approximately
U.S. $2,580,000 using, for purposes of illustration only in this report, a
currency exchange rate of U.S. $1.