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NOTE J - RELATED PARTY TRANSACTIONS
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6 Months Ended |
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Jun. 30, 2011
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| Related Party Transactions Disclosure [Text Block] |
NOTE J -
RELATED PARTIES
In
connection with the Series A Preferred Stock private
placement transaction, on November 16, 2009, the Company
entered into an Executive Officer Reimbursement Agreement
with each of (i) Jason L. Tienor, the Company’s
President and Chief Executive Officer, (ii) Richard J.
Leimbach, the Company’s then Chief Financial Officer,
and (iii) Jeffrey J. Sobieski, the Company’s Chief
Operating Officer (collectively, the “Executive
Officers”), pursuant to which the Executive Officers
agreed to convert a portion of outstanding indebtedness of
the Company owed to such Executive Officers into Series A
shares and Warrants pursuant to the Securities Purchase
Agreement. Mr. Tienor converted $20,000 of
outstanding indebtedness into 4 Series A shares and
Warrants to purchase 30,304 shares of Common Stock. Mr.
Leimbach converted $10,000 of outstanding
indebtedness into 2 Series A shares and Warrants to
purchase 15,152 shares of Common Stock. Mr. Sobieski
converted $20,000 of outstanding indebtedness into 4 Series A
shares and Warrants to purchase 30,304 shares of Common
Stock.
Anthony
Paoni, Chairman of the Company’s Board of Directors,
participated in the private placement of Series A Preferred
Stock, purchasing five shares of Series A convertible
redeemable preferred stock (convertible into 68,870 shares of
common stock) and warrants to purchase 37,880 shares of
common stock, for an aggregate purchase price of
$25,000.
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