NOTE F – SUBSEQUENT EVENTS

[1] On April 11, 2012, the Company issued a 5 year option to purchase 125,000 shares of its common stock to one of its directors, at an exercise price of $1.40 per share, in consideration of serving on a special committee of the Board of Directors to assist the Chairman and Chief Executive Office with respect to business development including patent acquisition transactions. The Option vests over a one year period in equal quarterly amounts of 31,250 shares.

[2] On April 12, 2012, the Company amended its agreement, dated February 3, 2011, with its Chief Financial Officer (See Note C) providing for a one year extension of the term of service until December 31, 2013, and an increase in compensation to $11,000 per month. In addition, the Company issued to its Chief Financial Officer a 5 year option to purchase 75,000 shares of common stock, at an exercise price of $1.40 per share. The option vests over a one year period in equal quarterly installments of 18,750 shares.

[3] On April 15, 2012, the Company's Chairman and Chief Executive Officer exercised an option to purchase 732,709 shares of common stock on cashless basis by delivery of 376,822 shares for the aggregate exercise price and 76,683 shares were delivered with a value of $107,356 to fund payroll withholding taxes an exercise, resulting in aggregate net shares of 300,139 issued with respect to the exercise of such option.