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OMB Number 3235-0287
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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
[_] Check box if no longer subject of Section 16. Form 4 or Form 5 obligations
may continue. See Instruction 1(b).
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1. Name and Address of Reporting Person*
Schillen, Jeffrey I.
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(Last) (First) (Middle)
4400 Route 9 South
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(Street)
Freehold, NJ 07728
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
Diamond Entertainment Corporation (DMEC)
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3. IRS Identification Number of Reporting Person, if an Entity (Voluntary)
________________________________________________________________________________
4. Statement for Month/Year
May 1999
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5. If Amendment, Date of Original (Month/Year)
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6. Relationship of Reporting Person to Issuer
(Check all applicable)
[X] Director [X] 10% Owner
[X] Officer (give title below) [_] Other (specify below)
_______________________Executive Vice President_________________________________
7. Individual or Joint/Group Filing (Check applicable line)
[X] Form filed by one Reporting Person
[_] Form filed by more than one Reporting Person
________________________________________________________________________________
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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<TABLE>
<CAPTION>
6.
4. 5. Owner-
Securities Acquired (A) or Amount of ship
3. Disposed of (D) Securities Form: 7.
Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of
2. Code ------------------------------- Owned at End (D) or Indirect
1. Transaction (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock 5/25/99 A4 3,000,000 A (1) 3,000,000(2) D(3)
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</TABLE>
See Attached Addendum.
* If the Form is filed by more than one Reporting Person, see Instruction
4(b)(v).
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
(Print or Type Responses)
(Over)
(Form 4-07/98)
<PAGE>
FORM 4 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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<TABLE>
<CAPTION>
10.
9. Owner-
Number ship
of Form
2. Deriv- of
Conver- 5. 7. ative Deriv- 11.
sion Number of Title and Amount Secur- ative Nature
or Derivative 6. of Underlying 8. ities Secur- of
Exer- 4. Securities Date Securities Price Bene- ity: In-
cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct
Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene-
1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial
Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner-
Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship
Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity Year) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock Option Common
(right to buy) $.10 5/24/99 A4 500,000 Immed. 5/24/04 Stock 500,000 (4) 500,000 D
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Common Stock Option Common
(right to buy) $.05 5/24/99 A4 500,000 Immed. 5/24/04 Stock 500,000 (5) 500,000 D
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</TABLE>
Explanation of Responses:
/s/ Jeffrey Schillen 6/10/99
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**Signature of Reporting Person Date
** Intentional misstatements or omissions of facts constitute Federal
Criminal Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedure.
Page 2
<PAGE>
Jeffrey I. Schillen
Addendum to Form 4
(1) The reported securities were issued in consideration of the Reporting
Person's assumption of a debt in the amount of $413,400 in connection with
a settlement of a matter by and among certain former consultants to the
Issuer.
(2) The reported transaction concludes an agreement in principle reached in
1995 for the transfer of record ownership of the subject shares from Mr.
James K.T. Lu to the Reporting Person.
(3) The Reporting Person has previously disclosed being the beneficial owner of
3,000,000 shares, but not the owner of record. At the conclusion of the May
25, 1999 transaction, the Reporting person became the owner of record.
(4) The reported securities were granted in consideration of the Reporting
Person's efforts in concluding an agreement granting the Issuer exclusive
distribution rights to certain products.
(5) The reported securities were granted in consideration of the Reporting
Person's efforts in concluding an agreement for the Issuer of North
American distribution rights to certain products.
