On September 14, 2011, Bond Laboratories, Inc. (the "Company") received a letter from the U.S. Department of Labor, Occupational Safety and Health Administration ("OSHA"), notifying the Company regarding its findings following a complaint filed by Eric Schick, the Company's former President, alleging that the Company had committed certain unlawful employment practices, including retaliatory termination of his employment for "whistle blowing," in connection with his separation from the Company in October 2008 (the "OSHA Order"). The OSHA proceeding was previously disclosed by the Company in prior filings with the Securities and Exchange Commission, including its latest Annual Report on Form 10-K filed on April 15, 2011. In the OSHA Order, the Secretary of Labor, acting through OSHA, found that there was reasonable cause to conclude that the Company, and its former Chief Executive Officer, Scott Landow, violated the employee protection provisions of Section 806 of the Corporate and Criminal Fraud Accountability Act of 2002.

In its findings, OSHA ordered that the Company, among other things, pay Mr. Schick certain compensatory and other damages. The Company has the right under the OSHA Order to file objections and request a formal hearing before an Administrative Law Judge ("ALJ") for the Department of Labor ("DOL"). The Company intends to file an objection to the OSHA Order, and request a formal hearing before the ALJ, as the Company believes, among other errors in the OSHA Order, that the OSHA Order misstates certain material facts in connection with OSHA's findings that, if presented in accordance with the administrative procedures that govern formal proceedings before the DOL, may result in different findings. In the event of an ultimate finding in favor of Mr. Schick on his allegations, we may be required to pay Mr. Schick substantial amounts and incur other potential penalties. Any such payments could materially and adversely affect our financial condition, business and prospects, and could prevent us from executing our business plan as currently contemplated.