Unassociated Document

1	NAMES OF REPORTING PERSONS JOHN PAPPAJOHN
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP		(a) o (b) x
3	SEC USE ONLY
4	SOURCE OF FUNDS PF
5	CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)			¨
6	CITIZENSHIP OR PLACE OF ORGANIZATION USA
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH	7	SOLE VOTING POWER 11,720,912
	8	SHARED VOTING POWER 0
	9	SOLE DISPOSITIVE POWER 11,720,912
	10	SHARED DISPOSITIVE POWER 0
11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 11,720,912
12	CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES			¨
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 19.7%
14	TYPE OF REPORTING PERSON IN

On February 23, 2010 the Reporting Person exercised a warrant to purchase 2,333,333 shares of Common Stock (referred to as the “June Investment Warrant” below) and was issued 1,720,910 shares of Common Stock in a net issue exercise of such warrant.

On August 26, 2009, the Issuer completed an equity financing transaction yielding gross proceeds of approximately $2 million. Pursuant to the terms of the June Investment Note (described below) held by the Reporting Person, (i) such note was therefore automatically converted into 3,333,334 shares of Common Stock and (ii) the Reporting Person received a five year non-callable warrant to purchase 1,666,667 shares of Common Stock at an exercise price of $0.30 per share (the “August Conversion Warrant”).

In connection with the August 26, 2009 equity financing, the Reporting Person invested $1,000,000 in the Issuer. In exchange for this investment, the Reporting Person received an additional 3,333,333 shares of Common Stock and a five year non-callable warrant to purchase 1,666,667 shares of Common Stock at an exercise price of $0.30 per share (the “August Investment Warrant”). This terms of this investment were identical to the terms received by all other investors in the Issuer’s private placement that closed on August 26, 2009, December 24, 2009, December 31, 2009 and January 4, 2010.

On June 12, 2009, the Issuer and the Reporting Person entered into a Bridge Note and Warrant Purchase Agreement (the “Purchase Agreement”), pursuant to which the Reporting Person purchased a Secured Convertible Promissory Note in the principal amount of $1,000,000 from the Issuer (the “June Investment Note”). In order to induce the Reporting Person to purchase the June Investment Note, the Issuer issued to the Reporting Person a warrant to purchase up to 2,333,333 shares of Common Stock (the “June Investment Warrant”) and issued to relatives of the Reporting Person warrants to purchase up to a total of 1,000,000 shares, all at a purchase price equal to $0.30 per share. As described above, the June Investment Warrant was exercised by the Reporting Person on a net issue exercise basis on February 23, 2010 for an aggregate of 1,720,910 shares of Common Stock.

The June Investment Note had provided that the principal amount of $1,000,000 together with a single premium payment of $90,000, was due and payable, unless sooner converted into shares of Common Stock (as described below), upon the earlier to occur of: (i) a declaration by the Reporting Person on or after June 30, 2010 that such amounts were due and payable or (ii) an event of default as defined in the June Investment Note. The June Investment Note had been secured by a lien on substantially all of the Issuer’s assets (including all intellectual property). In the event of a liquidation, dissolution or winding up of the Issuer, unless the Reporting Person informed the Issuer otherwise, the Issuer would have been required to pay the Reporting Person an amount equal to the product of 250% multiplied by the then outstanding principal amount of the June Investment Note and the premium payment.

The June Investment Note had also contained a provision that, in the event the Issuer consummated an equity financing transaction of at least $1,500,000 (excluding any and all other debt that is converted) with the principal purpose of raising capital, the then outstanding principal amount of the June Investment Note (but excluding the premium payment, which was to be repaid in cash at the time of such equity financing) would be automatically converted into the securities issued in the equity financing by dividing such amount by the per share price paid by the investors in such financing. As described above, the June Investment Note was automatically converted into 3,333,334 shares of Common Stock as a result of the August 26, 2009 equity financing.

(c) On February 23, 2010, the Reporting Person exercised a warrant to purchase 2,333,333 shares of Common Stock and was issued 1,720,910 shares of Common Stock in a net issue exercise pursuant to the terms of such warrant. The Reporting Person has effected no other transactions in the Issuer’s Common Stock during the past 60 days; however, the Reporting Person was granted options to purchase 250,000 shares of the Issuer’s Common Stock as a member of the Issuer’s board of directors on March 3, 2010, which grant is subject to the approval of the Issuer’s stockholders of certain amendments to the Issuer’s 2006 Stock Incentive Plan at the Issuer’s annual meeting of stockholders. The options have an exercise price of $0.55 and vest in 36 equal monthly installments.

Dated: April 16, 2010

	/s/ John Pappajohn
	JOHN PAPPAJOHN