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Re: None

Wednesday, 09/19/2012 8:42:02 AM

Wednesday, September 19, 2012 8:42:02 AM

Post# of 29204
More Dilution..

Looks like 4.8M at .94 cents..

2. Amendment to Section 3(a) of the Subscription Agreement. Notwithstanding any provision of the Subscription
Agreement to the contrary, the parties agree that the Additional Share Purchase Price for the First Additional Purchase Price Exercise
Period shall be $0.94.

"Pursuant to the Investor Agreement, the Investor agreed to waive the condition precedent to the Company's exercise of the
Put Option requiring the arithmetic average of the average daily trading volumes during the Equity Conditions Measuring Period (as
that term is defined in the Subscription Agreement) and on the exercise date be not less than 1,750,000 shares and to amend the
Subscription Agreement to provide that the issue price of the additional shares during the First Option Exercise Period shall be an 8%
discount to the lesser of the closing bid price of the Common Stock on September 18, 2012 and a VWAP measurement for the ten
trading days ending on September 18, 2012. The Investor is purchasing 4,750,000 shares of Common Stock pursuant to the Investor
Agreement. Additionally, pursuant to the Investor Agreement, the Company agreed to amend the warrant originally issued to the
Investor to reflect an exercise price of $1.26. The net proceeds to the Company in connection with the exercise of the Put Option will be approximately $4,241,750."

http://phx.corporate-ir.net/phoenix.zhtml?c=120708&p=irol-sec

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