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        4 - Related Party Loans&lt;/font&gt;

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        &lt;font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt"&gt;The

        Company has multiple related party

        transactions.&amp;#160;&amp;#160;These related party transactions

        include accrued rent, accrued compensation and officer and

        shareholder payable.&amp;#160;&amp;#160;These accounts are provided

        for working capital purposes, and is unsecured,

        non-interest bearing, and have no specific terms of

        prepayment.&lt;/font&gt;

      &lt;/div&gt;&lt;br/&gt;&lt;div style="line-height: 12.55pt; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify"&gt;

      &lt;font style="display: inline; font-family: Times New Roman, serif; font-size: 11pt;"&gt;For

      the year ended October 31, 2010, the Company has increased

      the balance of accrued rent by $8,000, increased accrued

      compensation by $400,000 and decreased officer and

      shareholder payable by $156,787.&lt;/font&gt;

    &lt;/div&gt;&lt;br/&gt;&lt;div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"&gt;

        &lt;font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt"&gt;The

        balance of these related party transactions for the year

        ended October 31, 2010 was $886,877.&lt;/font&gt;

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        &lt;font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt"&gt;For

        the nine months ended July 31, 2011, the Company has

        increased the balance of accrued rent by $19,890, increased

        accrued compensation by $288,000 and decreased officer and

        shareholder payable by $6,011.&lt;/font&gt;

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        &lt;font style="DISPLAY: inline; FONT-FAMILY: Times New Roman, serif; FONT-SIZE: 11pt"&gt;The

        balance of these related party transactions on July 31,

        2011 was $1,324,936.&lt;/font&gt;

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