<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20509
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
September 4, 1998
Date of Report
(Date of Earliest Event Reported)
INTERNATIONAL HERITAGE, INCORPORATED
(Exact Name of Registrant as Specified in its Charter)
Nevada 002-97690-D 87-0421191
(State or other juris- (Commission File No.) (IRS Employer
diction of incorporation) I.D. No.)
Carolina Place
2626 Glenwood Avenue, Suite 200
Raleigh, North Carolina 27608
(Address of Principal Executive Offices)
(919)571-4646
Registrant's Telephone Number
Item 1. Changes in Control of Registrant.
None; not applicable.
Item 2. Acquisition or Disposition of Assets.
None; not applicable.
Item 3. Bankruptcy or Receivership.
None; not applicable.
Item 4. Changes in Registrant's Certifying Accountant.
None; not applicable.
Item 5. Other Events.
On September 2, 1998 a Complaint was filed in the General Court of
Justice, Superior Court Division, Wake County, North Carolina, case number 98
CVS 1026 by Gina E. Josephson v. International Heritage, Inc. On September 4,
1998, International Heritage, Inc. (the "Company") was served said Complaint.
The Plaintiff, a former employee of the Defendant. the principally-owned
subsidiary of the Registrant, contends that she received a conditional stock
award, which was a contract which was subsequently breached by the failure of
the Company to tender shares of stock. The Complaint alleges inter alia:
breach of contract and violation of the North Carolina Securities Act.
Plaintiff is seeking damages in the amount of $765,000, plus interest, costs
and attorney fees. Plaintiff has requested a jury trial.
The Company plans to vigorously defend this action, and believes
that the Plaintiff's recoverable damages, if any, are substantially less than
the amount prayed for in the Complaint.
Item 6. Resignations of Registrant's Directors.
None; not applicable.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
None; not applicable.
Item 8. Change in Fiscal Year.
None; not applicable.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this Report to be signed on its behalf by
the undersigned hereunto duly authorized.
INTERNATIONAL HERITAGE, INCORPORATED
Date: 09/15/98. By: /s/ Stanley H. Van Etten
______________________________________
President, CEO and Chairman of the Board
