On March 11, 2009 the Company's subsidiary, BioForce Nanosciences, Inc., ("BioForce") entered into Employee Compensation Agreements with each of its employees. Under the terms of these agreements, each employee was granted a security interest in BioForce's inventory, accounts, general intangibles and equipment in connection with BioForce's obligation to pay employee wages and reimbursable expenses.

On March 16, 2009, BioForce executed a Promissory Note dated February 25, 2009 in favor of the State of Iowa, Department of Economic Development ("IDED") in the amount of $92,253.82, repayable in seventy-two monthly installments of $1,522.31 including interest at an annual rate of 6.00%. A blanket security interest in BioForce's assets was granted to IDED as security for BioForce's obligations under the Promissory Note. Upon execution of the Promissory Note all payment obligations under the Community Economic Betterment Account (CEBA) Royalty Agreement between BioForce and IDED dated July 10, 2011 were canceled, and the default situation under that Royalty Agreement as reported on our Form 8-K filed on February 6, 2009 was resolved.

(d) Exhibits

Exhibit No. Description

99.1         Form of Employee Compensation Agreement dated March 11, 2009
             between BioForce Nanosciences, Inc. and each of its
             employees
99.2         BioForce Nanosciences, Inc. Promissory Note dated February
             25, 2009 in favor of the State of Iowa, Department of
             Economic Development