X0303 4 2008-12-22 1 0000844010 FREEHAND SYSTEMS INTERNATIONAL, INC. FYSI 0001411962 VISION CAPITAL ADVISORS, LLC 20 W. 55TH STREET, 5TH FLOOR NEW YORK NY 10019 0 0 1 0 0001411963 BENOWITZ ADAM 20 W. 55TH STREET, 5TH FLOOR NEW YORK NY 10019 0 0 1 0 0001349985 VISION OPPORTUNITY MASTER FUND, LTD. 20 W. 55TH STREET, 5TH FLOOR NEW YORK NY 10019 0 0 1 0 Common Stock ($0.001 par value) 2008-12-22 4 J 0 7996875 D 0 I By Vision Opportunity Master Fund, Ltd. Series B Warrant .50 2008-12-22 4 J 0 2000000 D 2011-09-26 Common Stock ($0.001 par value) 2000000 0 I By Vision Opportunity Master Fund, Ltd. Series C Warrant .50 2008-12-22 4 J 0 2000000 D 2011-09-26 Common Stock ($0.001 par value) 2000000 0 I By Vision Opportunity Master Fund, Ltd. Series D Warrant .50 2008-12-22 4 J 0 2000000 D 2011-09-26 Common Stock ($0.001 par value) 2000000 0 I By Vision Opportunity Master Fund, Ltd. Series E Warrant .50 2008-12-22 4 J 0 2000000 D 2011-09-26 Common Stock ($0.001 par value) 2000000 0 I By Vision Opportunity Master Fund, Ltd. Series F Warrant .50 2008-12-22 4 J 0 2000000 D 2011-09-26 Common Stock ($0.001 par value) 2000000 0 I By Vision Opportunity Master Fund, Ltd. Series G Warrant .50 2008-12-22 4 J 0 2000000 D 2011-09-26 Common Stock ($0.001 par value) 2000000 0 I By Vision Opportunity Master Fund, Ltd. Series H Warrant .50 2008-12-22 4 J 0 4000000 D 2011-09-26 Common Stock ($0.001 par value) 4000000 0 I By Vision Opportunity Master Fund, Ltd. Series C Convertible Preferred .50 2008-12-22 4 J 0 6000000 D 2011-09-26 Common Stock ($0.001 par value) 6000000 0 I By Vision Opportunity Master Fund, Ltd. Vision Capital Advisors, LLC (the "Investment Manager") serves as investment manager to Vision Opportunity Master Fund, Ltd. (the "Fund"), the direct owner of the subject securities. Adam Benowitz is the Managing Member of the Investment Manager and a Director of the Fund. Each Reporting Person disclaims beneficial ownership of all securities reported herein, except to the extent of their pecuniary interest therein, if any, and this report shall not be deemed an admission that such Reporting Person is the beneficial owner of the shares for purposes of Section 16 of the Securities and Exchange Act of 1934 or for any other purpose. The Fund sold all of the securities which this footnote relates to the Issuer for an aggregate price of $100. Although these securities are presently exercisable, the Fund cannot convert these securities into shares of Common Stock to the extent the conversion would result in the Fund and its affiliates owning, holding, or beneficially owning more than 9.99% of the Issuer's Common Stock. /s/ Adam Benowitz For himself, as Managing Member of the Investment Manager and as a Director of the Fund. 2008-12-29