DESCRIPTION OF ORAL AGREEMENT
On or about April 18, 2000, Xx. Xxxx X. Xxxx, our former President and
Chief Executive Officer, agreed to transfer to the Company, and the Company
agreed to accept, 243,067 shares of the Company's Common Stock as full payment
of the principal and all accrued interest of loans made to Xx. Xxxx by the
Company. These loans include the following:
DATE OF LOAN AMOUNT OF LOAN
February 28, 1991 $1,301,745
September 4, 1998 $ 839,375
July 21, 1999 $ 93,750
November 12, 1999 $ 55,259
These loans total $2,290,129. With the exception of the loan in the
amount of $839,375, we received full recourse promissory notes from Xx. Xxxx
memorializing these loans. The loans were used by Xx. Xxxx to exercise options
to purchase our Common Stock.
