<table><tbody><tr style="vertical-align: top; text-align: justify">
<td style="width: 7%; text-align: right"></td><td style="width: 7%">(a)</td><td style="text-align: justify; width: 86%"><u>Senior Secured Notes</u></td>
</tr>     <tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">The Company issued $2,500,000
face value of the Secured Notes on December 15, 2009 in connection with the December 15, 2009 financing described in Note 4. As
described in Note 4, the proceeds from the financing were allocated among multiple financial instruments based on fair values.
Proceeds allocated to the Secured Notes amounted to $1,433,812. The resulting discount was subject to amortization through charges
to interest expense over the term to maturity using the effective interest method. Discount amortization included in interest expense
for Fiscal 2011 amounted to $985,660. The Company did not incur any amortization of the original interest discount on the Secured
Notes for Fiscal 2012 as they were fully amortized as of March 31, 2011.</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">The Secured Notes were secured
by substantially all of the Company’s assets; bore interest at a rate of 12.5% per annum payable quarterly; and would have
matured in one installment on December 15, 2012.</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">In May 2010, the Company entered
into a First Amendment to Senior Secured Notes, in connection with the Company’s pledge of $500,000 as cash collateral to
Sovereign Bank to secure the Company’s reimbursement obligations under a letter of credit issued on behalf of the Company
in favor of American Express Related Services Company, Inc. (“Amex”). On September 12, 2011, Amex released the $500,000
letter of credit it had been issued by Sovereign Bank.</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top; text-align: justify">
<td style="text-align: right">&nbsp;</td><td>&nbsp;</td><td style="text-align: justify">In November, 2011, in conjunction
with the Company obtaining a bank credit facility (see Note 4), the Company repaid in full the remaining $2 million of principal
outstanding under its Secured Notes.</td></tr>
</tbody></table>
<table><tbody><tr>
<td></td><td>(a)</td><td><u>Senior Secured Notes</u></td>
</tr> <tr>
<td> </td><td> </td><td> </td></tr>
<tr>
<td> </td><td> </td><td>The Company issued $2,500,000
face value of the Secured Notes on December 15, 2009 in connection with the December 15, 2009 financing described in Note 4. As
described in Note 4, the proceeds from the financing were allocated among multiple financial instruments based on fair values.
Proceeds allocated to the Secured Notes amounted to $1,433,812. The resulting discount was subject to amortization through charges
to interest expense over the term to maturity using the effective interest method. Discount amortization included in interest expense
for Fiscal 2011 amounted to $985,660. The Company did not incur any amortization of the original interest discount on the Secured
Notes for Fiscal 2012 as they were fully amortized as of March 31, 2011.</td></tr>
<tr>
<td> </td><td> </td><td> </td></tr>
<tr>
<td> </td><td> </td><td>The Secured Notes were secured
by substantially all of the Company’s assets; bore interest at a rate of 12.5% per annum payable quarterly; and would have
matured in one installment on December 15, 2012.</td></tr>
<tr>
<td> </td><td> </td><td> </td></tr>
<tr>
<td> </td><td> </td><td>In May 2010, the Company entered
into a First Amendment to Senior Secured Notes, in connection with the Company’s pledge of $500,000 as cash collateral to
Sovereign Bank to secure the Company’s reimbursement obligations under a letter of credit issued on behalf of the Company
in favor of American Express Related Services Company, Inc. (“Amex”). On September 12, 2011, Amex released the $500,000
letter of credit it had been issued by Sovereign Bank.</td></tr>
<tr>
<td> </td><td> </td><td> </td></tr>
<tr>
<td> </td><td> </td><td>In November, 2011, in conjunction
with the Company obtaining a bank credit facility (see Note 4), the Company repaid in full the remaining $2 million of principal
outstanding under its Secured Notes.</td></tr>
</tbody></table>