NOTE I PREFERRED STOCK
The Company is authorized to issue 5,000,000 shares of Preferred
Stock, of which 5,000 shares have been designated Series A Preferred Stock, par value $ 0.000001. As of SEPTEMBER 30, 2012,
there are 1,796.73 shares of Series A Preferred Stock issued and outstanding. Holders of Series A Preferred Stock are entitled
at any time to convert their shares of Series A Preferred Stock into Common Stock, without any further payment Each share of Series
A Preferred Stock is initially convertible into 2,000 shares of Common Stock, equivalent to a Conversion Price of $0.50 per share.
The number of shares of Common Stock issuable upon conversion of the Series A Preferred Stock is subject to adjustment upon the
occurrence of certain events, including, among others, a stock split, reverse stock split or combination of MIT's Common Stock;
an issuance of Common Stock or other securities of MIT as a dividend or distribution on the Common Stock; a reclassification,
exchange or substitution of the Common Stock; or a capital reorganization of MIT. In the event that MIT issues any additional shares
of its Common Stock following the Offering, the Conversion rate will be that number of shares of Common Stock equal to $1,000 divided
by the price per share at which MIT issues Common Stock in such offering. At our option, following the effectiveness of a registration
statement registering the shares of Common Stock issuable upon the conversion of the Series A Preferred Stock and the exercise
of the Warrants, if the price of the Common Stock trades above 300% of the Conversion Price per share during any period of 30 consecutive
trading days and the average trading volume is at least 50,000 shares per day, for such 30 day period, each share of Series A Preferred
Stock can be automatically converted into Common Stock at the Conversion Rate then in effect.
The liquidation preference amount of each share of Series A Preferred
Stock is $1,000, or a total of $1,796,730 for the 1,796.73 shares issued and outstanding as of SEPTEMBER 30, 2012 (December 31,
2009: $1,896,730 for the $1,896.73 shares issued and outstanding).
As part of its private
placement of the Units (including the Series A Preferred Stock) which closed May 31, 2007, the Company granted a financial advisor
a five-year option to purchase up to 635 units (comprised of 635 shares of Series A Preferred Stock and warrants to purchase up
to 1,270,000 shares of common stock at an exercise price of $0.75 per share to August 13, 2012) at a price of $1,000 per Unit.
Dividends accrue on the Series A Preferred
Stock at the rate of 6% per annum and are cumulative. If and when declared, the Company may pay such dividends in cash or
common stock. The cumulative undeclared and unpaid dividends are $361,184 and $295,831 at SEPTEMBER 30, 2012 and December 31,