Date: Mon, 13 Nov 2000 19:11:34 -0500
Subject: Re: NEW SOSF NEWSLETTER!

Science of the Spirit Foundation
NEWSLETTER
Volume 1 Issue #29 Fall 1998 to Fall 2000

ENOUGH IS ENOUGH!!!

Three months ago, after two years of negotiating, I finally received a written offer from the EPA outlining a penalty resulting from the nitric acid spill two and a half years ago. That offer required that I disassemble all chemical equipment and immediately remove it from this property. When I responded, that the quantity of equipment to be moved was quite extensive and would take a couple of months to comply with their offer, they immediately responded that they were sorry I turned down their offer, and withdrew it from the negotiating table. The next written proposal was a requirement that I pay a fine of $103,800, and they stated that if I hesitated to accept this offer, then it would immediately increase to $250,000 and they would take me to court to enforce the fine. In addition, the EPA assured me that if I did not accept their offer as presented, then they would see to it that I spent a lot more than $250,000 in the courtroom before they would release me from the litigation. I was obliged to accept their proposal, and to settle for the $103,800.

The problem is, that I do not have the money on hand and I have therefore taken a loan for $120,000 to settle the amount with the EPA and to pay back taxes due on the property. To meet the financial requirements of this note, I must have an immediate cash flow. Recent efforts to produce commercial rhodium salts for catalysts have been unsuccessful in generating short term cash.

Since my heart attack, my doctor insists that I must not lift more than eighty pounds and that I must not overexert myself physically. The primary reason for my heart problems he feels are stress related and he has strenuously recommended that I remove as much stress as possible from my life.

The community has grown dramatically in the last three years, and I can throw a rock and hit three individual homes from this office site. The planning and zoning office allowed me to build the structures, install the equipment, install the electrical and then they refused to give me an electrical meter because they did not believe it was properly zoned. To get proper zoning, I would have to divulge the processes and equipment being used in the proprietary process, which I did not want to do. Even though I was able to overcome this problem by installing an alternate source of commercial three phase power, now the EPA regulations require me to divulge the chemicals and processes I am using to the local fire department, which they in turn, would forward to the local state newspaper, which goes out to all of my neighbors in this community. This, I also choose not to do.

Fortunately, the development of this community occurring over the last three to five years, has dramatically caused real estate values to increase. I believe that the property can be sold for approximately six times it's acquisition price. I therefore, must conclude that I should take advantage of this market and sell the property. The sale of the property and facility will provide sufficient liquidity to provide a reimbursement of most of the money that has been contributed by members of the Science of the Spirit Foundation. While I am not obligated to "refund" contributions made for memberships at this time, I feel that the real estate market has presented a situation that will allow me to make a comparable contribution back to the members.

I have reluctantly decided to end the project. It may take me a year to find a buyer, close an escrow, settle loan obligations, taxes and assessments and then to distribute the remaining proceeds from the sale to each of the members who have requested it, based on their dollar contributions to the Science of the Spirit Foundation. I am very, very thankful for your generous support and patience throughout this effort and wish you all the best.

Regulated out of existence,
(Signed) David Hudson
 

PAGE 2

At the bottom of this page is a form that you may detach and return to let the Science of the Spirit Foundation know how you would like your membership(s) treated. If we do not hear from a member by December 15, 2000 the Foundation it will assume that their membership donation was, in fact, a donation and they do not expect to receive a comparable contribution.

If you have any procedural questions regarding the status, number or handling of your memberships, Brannon will be in and out of the office from October 30, 2000 until December 15th, 2000. You may contact the Foundation by phone or fax. E-mail has been discontinued since a change in our service provider.

Please complete the enclosed form (even if you would not like to receive a comparable contribution) so the Foundation may have a clear indication of what you want done with your memberships.

Please detach and return to:
Science of the Spirit Foundation
P.O. Box 25709
Tempe, AZ 85285 USA

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I, _______________________________, a member in the Science of the
Spirit Foundation (including members who have requested to become
shareholders in ORMES L.L.C.),
(please check one):

______ do not wish an effort to be made to issue a contribution to me in
return for my membership(s).

______ like an effort to be made for me to receive a contribution in
return for my membership(s).
 

Today's date:_________________
Signature:_________________________________
Print Name: _________________________