Common use of Convertible Notes and Warrants Clause in Contracts

Convertible Notes and Warrants. The Company entered into a series of financing agreements over the last two years under which it issued convertible notes and Class A and Class B Warrants to purchase its common stock. The Company had an aggregate of $2,986,842 in principal outstanding in convertible notes payable and Class A Warrants outstanding to purchase an aggregate of 35,514,350 shares of common stock at exercise prices ranging from $0.16 to $15.00 per share, with expiration dates ranging from April 2011 to July 2015. The Class B Warrants will be issued upon exercise of certain Class A Warrants and have an exercise price of $15.00 per share. Upon exercise of certain Class A Warrants, the Company would have the obligation to issue Class B Warrants to purchase 305,068 shares of common stock at an exercise price of $15.00 per share. Class B Warrants to purchase 62,000 shares of common stock have a three year term and Class B Warrants representing the right to purchase 243,068 shares will expire after five years. SCHEDULE 5(o) Undisclosed Liabilities None SCHEDULE 5(v) Transfer Agent The current transfer agent is Pacific Stock Transfer

Convertible Notes and Warrants. The Company entered into a series of financing agreements over the last two three years under which it issued convertible notes and Class A and Class B Warrants to purchase its common stock. The Company had an aggregate of $2,986,842 4,389,164 in principal outstanding in convertible notes payable and Class A Warrants outstanding to purchase an aggregate of 35,514,350 116,192,373 shares of common stock at exercise prices ranging from $0.16 0.02 to $15.00 per share, with expiration dates ranging from April July 2011 to July 2015March 2016. The Class B Warrants will be issued upon exercise of certain Class A Warrants and have an exercise price of $15.00 per share. Upon exercise of certain Class A Warrants, the Company would have the obligation to issue Class B Warrants to purchase 305,068 278,068 shares of common stock at an exercise price of $15.00 per share. Class B Warrants to purchase 62,000 35,000 shares of common stock have a three year term and Class B Warrants representing the right to purchase 243,068 shares will expire after five years. SCHEDULE 5(o) Undisclosed Liabilities None SCHEDULE 5(v) Transfer Agent The current transfer agent is Pacific Stock TransferOutstanding convertible notes and warrants are as set forth in Schedule 5(d).