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NOTE K - RELATED PARTY TRANSACTIONS
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9 Months Ended |
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Sep. 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 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
redeemable preferred stock (convertible into 55,096 shares
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 redeemable
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 redeemable
preferred stock (convertible into 55,096 shares of common
stock) 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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