13.

EQUITY BASED COMPENSATION FOR CONSULTING, LEGAL, AND OTHER PROFESSIONAL SERVICES

Equity based compensation is presented on the face of the Statement of Stockholders’ Deficit for the three and nine months ended September 30, 2014. More information on the significant components of the amounts presented for the three and nine months ended September 30, 2014 and 2013 follows:

For the three and nine months ended September 30, 2014, the Company converted $13,500, and $40,500, respectively, of accrued compensation to 2,903,695 and 5,824,544 restricted stock, respectively, based upon the weighted average stock price per share during the months the services were rendered. For the three and nine months ended September 30 2013, the Company converted $13,500, and $40,500, respectively, of accrued compensation to 209,565 and 297,808 restricted stock, respectively, based upon the weighted average stock price per share during the months the services were rendered. For additional information see Note 7. RELATED PARTIES - Equity based compensation to employee

Pursuant to a consulting agreement for business advisory services, the company issued 68,032 restricted shares for $26,800 in services during nine months ended based on the weighted average price per share for the month the services were rendered discounted 30%.. Operating expense was recorded based on full weighted average share price of the market for the period in which the services were rendered.

On March 27, 2013, the Company entered into a consulting agreement for financial strategic advisory services for a term of twelve months from the date of the agreement, which could be terminated by either party within 30 days written notice and any monies owed due upon termination. As initial fee, the Company paid the consultant $25,000 in restricted stock during the three months ended March 30, 2013. Further, upon obtaining $5,000,000 new capital into the Company, the consultant will be due $500,000, upon successfully obtaining a second $500,000 commitment of new capital, $50,000 will be due to the consultant, upon successfully obtaining a third $500,000 commitment of new capital, and the same arrangement through eleven additional commitment of new capital. Amounts due shall be paid in cash and any brokerage commissions, private placement fees or other fees in connection with obtaining the new capital shall be reduced from the fees due the consultant on a dollar per dollar basis.