About "Neverland Records": MJ teamed up with a company back in early 2002 right after Sony stopped "Invincible"'s promotion. They wanted to set up a record label called "Neverland Records". Later this year MJ cancelled the project, however the company had to pay MJ a significant amount of money based on the Record Label Agreement.
Below You can read this Agreement:
"In May 2002, the Company [Blastgard International Inc.] sold 1,000,000 shares of its restricted common stock to
an individual for gross proceeds of $500,000. $400,000 of the proceeds were paid
to MJJ Ventures, Inc. ("MJJ") as an inducement fee pursuant to a Label Term
Sheet Agreement ("Label Agreement") dated May 11, 2002, between the Company's
subsidiary, ToolTrust Corporation ("ToolTrust"), and MJJ, as described below.
The Company intends to change its name to reflect its new business initiative.
The label Agreement contemplates that ToolTrust and MJJ will form a California
Limited Liability Company to operate a music label, tentatively called
"Neverland Records". The Label Agreement obligates ToolTrust to pay MJJ a total
of $3,800,000 as an inducement fee, which is non-refundable. Of this amount,
ToolTrust had paid MJJ $400,000. The label Agreement also obligates ToolTrust to
have a minimum of $1,500,000 in funds for the initial year of operation of the
music label. ToolTrust must also provide a minimum of $2,000,000 per year to
fund the overhead portion of the music label's annual budget for the remaining
six years of the term of the Label Agreement.
The Label Agreement contemplates the substantial involvement of Michael J.
Jackson, and provides Mr. Jackson with discretion to grant or deny approval of
any artist seeking to sign a recording agreement. Mr. Jackson also shall have
final approval of all creative elements in connection with master recordings and
videos. Ultimately, however, Mr. Jackson's level of participation with the music
label, if any, shall be determined at his sole discretion. MJJ may "opt-out" of
the Label Agreement if the music label is unable to secure a distribution deal
or the music label has not substantially satisfied any material goals set forth
in its business plan. Mr. Jackson may opt-out for any reason after three years.
In any such case, ToolTrust is obligated to but-out MJJ's interest in the music
label. All trademarks, label names, domain names, and logos associated with the
music label are to remain the property of Mr. Jackson, and while the parties may
negotiate ToolTrust's use of certain trademarks associated with the music label,
there is no obligation for Mr. Jackson to grant such rights to ToolTrust.
The Company is in immediate need of funding to complete the music label venture
described above and to carry out day-to-day operations, including funding of the
online medical records business. If the Company does not secure financing to
sufficiently fund operations, it may lose all amounts paid to MJJ Ventures."
