(a) BUSINESS DEVELOPMENT

(i) Business Development, Organization and Acquisition Activities -----------------------------------------------------------------

Eaton Laboratories, Inc. ("Eaton" or "ETLB") was incorporated under the laws of the State of Nevada on February 2, 2002, under the name Eaton Laboratories, Inc.

On January 19, 2007, Eaton Laboratories and Pinoak, Inc. ("Pinoak") a Nevada corporation entered into an Acquisition Agreement and Plan of Merger (the "Merger Agreement") whereby Eaton has acquired all the outstanding shares of common stock of Pinoak from its sole stockholder in an exchange for $4,000 cash in a transaction where Eaton is the...