Item 5. Other Events.



Xtreme Webworks has authorized its transfer agent to stop transfer of
its common stock to Richard Splain (98,525 shares of common restricted stock)
and Michael Pitzel (7,000 shares of common restricted stock), due to pending
litigation regarding breaches of employment and non-disclosure agreements. The
pending litigation involves breaches of covenants addressing the non-disclosure
and confidentiality of information of Xtreme Webworks, as well as non-
solicitation provisions of employees of Xtreme Webworks. Xtreme Webworks has
demanded a cease and desist of attempts to contact clients of Xtreme Webworks in
an attempt to solicit business away from Xtreme Webworks as well as of attempts
to solicit employees away from Xtreme Webworks, which have resulted in
interference with contractual relationships between Xtreme Webworks and its
clients and employees.



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