#1 This per share price is the average of the sales of shares during the day ranging from $1.45 to $1.20 per share.

#1 On October 16, 2012 the Issuer entered into a Settlement Agreement with Mr. Konrad whereby Mr. Konrad agreed to surrender 3,000,000 shares of the Issuer's common stock owned by him in exchange for payment of an aggregate of $530,000, $130,000 of which was paid to Mr. Konrad's company Arizona Research and Development ("ARD") for past services, and $300,000 of which was paid to Mr. Konrad. The Company agreed to pay Mr. Konrad $100,000 in equal monthly payments over six consecutive months beginning November 16, 2012. In connection with the Settlement with Mr. Konrad the agreement with ARD and Mr. Konrad's employment agreement were terminated and Mr. Konrad resigned his positions as President and a Director of the Issuer.

#1 On April 7, 2011 the Issuer entered into an Agreement with Mr. Konrad whereby Mr. Konrad agreed to surrender 4,500,000 shares of the Issuer's common stock owned by him in exchange for the Issuer's agreement to pay $200,000 to Mr. Konrad's company Arizona Research and Development, and the Issuer's entry into a two-year employment agreement with Mr. Konrad.

#1 These securities were transferred from Mr. Konrad individually as a gift to Mr. Konrad and his wife and no consideration was paid.

#2 These securities were transferred from Mr. Konrad and his wife as a gift to a third party and no consideration was paid.