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Three year terms with Justin Bieber having the right to terminate after one year in which case the other two agreements terminate;

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Sales royalties based upon a percent of revenues. The aggregate royalties percentage payable to Bieber Group is either: (i) 25% on annual sales of the product; or (ii) 40% on low margin sales (sales on a wholesale basis less than $10.66 per unit);

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Pursuant to the Bieber Agreements, the Company issued to the Bieber Group warrants to purchase an aggregate of 121,160,749 shares of common stock at $0.01 per share or a total of 16.4% of the Company on a fully diluted basis. The warrants contain full anti-dilution protection rights on both the exercise price and quantity. Subsequent to December 31, 2011, as a result of provisions contained in the warrants protecting the holder against dilution, the exercise price of the warrants was reduced to $0.005 per share and the number shares of common stock for which the warrants could be exercised was increased to 242,321,498; and

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Pre-emptive rights for sales by the Company of equity and common stock equivalents above $0.01 per share so the Bieber Group can purchase such instruments at the same sale price to maintain their 16.4% ownership right.