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NOTE K - 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 K
– 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 four Series A convertible
preferred stock (convertible into 55,096 shares of common
stock) and warrants to purchase 30,304 shares of Common
Stock. Mr. Leimbach converted $10,000 of outstanding
indebtedness into two Series A convertible preferred
stock (convertible into 27,548 shares of common stock) and
warrants to purchase 15,152 shares of Common Stock. Mr.
Sobieski converted $20,000 of outstanding indebtedness into
four Series A convertible preferred stock (convertible into
55,096 shares of common stock) and warrants to purchase
30,304 shares of Common Stock.
Anthony
Paoni, former 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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