On October 22, 2007, pursuant to that certain Executive Employment agreement with Stock Purchase and Stock Option Provisions dated as of October 22, 2007 (the “ Employment Agreement ”), the Reporting Person was issued 8,000,000 shares of Common Stock as Bonus Stock pursuant to the Company’s Bonus Stock and Bonus Stock Option Incentive Plan, of which 7,000,000 shares were subject to certain milestones and as such are being held in escrow pending completion of the milestones. To date, 3,000,000 shares have been disbursed from escrow to the Reporting Person. In accordance with the terms of the Employment Agreement, the Reporting Person purchased the 8,000,000 shares of Bonus Stock for the purchase price of $0.01 per share or $80,000. In the event that an individual milestone is not achieved, the Issuer will repurchase the related shares from the Reporting Person for the purchase price of $0.01 per share. Additionally, the Reporting Person received a signing bonus of an option to purchase 2,000,000 shares of Common Stock at a price of $0.42 per share under the Employment Agreement.