On January 31, 2008, the Holders of the Company's convertible notes agreed to
exchange all accrued and unpaid interest due under the terms of the notes for
three new convertible debentures aggregating $227,068. These debentures bear
interest at 2 percent, due on a quarterly basis, and are convertible, at the
investors' sole option, into common shares at 70 percent of the average of the
lowest three inter-day sales prices during the twenty days immediately preceding
the conversion date.