<SEC-DOCUMENT>0001019687-12-002728.txt : 20120813
<SEC-HEADER>0001019687-12-002728.hdr.sgml : 20120813
<ACCEPTANCE-DATETIME>20120813083143
ACCESSION NUMBER:		0001019687-12-002728
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20120921
FILED AS OF DATE:		20120813
DATE AS OF CHANGE:		20120813
EFFECTIVENESS DATE:		20120813

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SAVE THE WORLD AIR INC
		CENTRAL INDEX KEY:			0001103795
		STANDARD INDUSTRIAL CLASSIFICATION:	MOTOR VEHICLE PARTS & ACCESSORIES [3714]
		IRS NUMBER:				522088326
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-29185
		FILM NUMBER:		121026089

	BUSINESS ADDRESS:	
		STREET 1:		235 TENNANT AVE #5
		CITY:			MORGAN HILL
		STATE:			CA
		ZIP:			95037
		BUSINESS PHONE:		818-487-8000

	MAIL ADDRESS:	
		STREET 1:		235 TENNANT AVE #5
		CITY:			MORGAN HILL
		STATE:			CA
		ZIP:			95037
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>stwa_def14a-092112.htm
<DESCRIPTION>NOTICE AND PROXY STATEMENT
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">UNITED STATES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">WASHINGTON, DC 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SCHEDULE 14A</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Proxy Statement Pursuant to Section 14(a)
of the Securities</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Exchange Act of 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Filed
by the Registrant </FONT><FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Filed
by a party other than the Registrant </FONT><FONT STYLE="font-family: Wingdings">o</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Check the appropriate box:</U></P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR>
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD STYLE="width: 95%">Preliminary proxy statement</TD></TR>
<TR>
    <TD><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD>Confidential, For use of the Commission only (as permitted by Rule 14a-6(e)(2))</TD></TR>
<TR>
    <TD><FONT STYLE="font-family: Wingdings 2">&#83;</FONT></TD>
    <TD>Definitive proxy statement</TD></TR>
<TR>
    <TD><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD>Definitive additional materials</TD></TR>
<TR>
    <TD><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD>Soliciting material pursuant to Rule 14a-11(c) or Rule 14a-12</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SAVE THE WORLD AIR, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;(Name of Registrant as Specified in
Its Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;(Name of Person(s) Filing Proxy Statement, if Other Than
the Registrant)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Payment of filing fee (Check the appropriate box):</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%"><FONT STYLE="font-family: Wingdings 2">&#83;</FONT></TD>
    <TD STYLE="width: 94%">No fee required.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD STYLE="width: 94%">Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left">(1)</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Title of each class of securities to which transaction applies:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left">(2)</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Aggregate number of securities to which transaction applies:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left">(3)</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Per unit price or other underlying value of transaction computed pursuant to Exchange
Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined):</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left">(4)</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Proposed maximum aggregate value of transaction:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 17pt; text-align: left">(5)</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Total fee paid:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD STYLE="width: 95%; text-align: justify">Fee paid previously with preliminary materials:</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD STYLE="width: 95%; text-align: justify">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously.&nbsp;&nbsp;Identify the previous filing by registration statement number, or the form or schedule and the date of its filing.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1)&nbsp;&nbsp;&nbsp;&nbsp;Amount previously paid: ___________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(2)&nbsp;&nbsp;&nbsp;&nbsp;Form, Schedule or Registration Statement
No.: _________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3)&nbsp;&nbsp;&nbsp;&nbsp;Filing Party: _____________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(4)&nbsp;&nbsp;&nbsp;&nbsp;Date Filed: ________________________</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;<IMG SRC="logo.jpg" ALT=""></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: Red"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SAVE THE WORLD AIR, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>735 State Street, Suite 500</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Santa Barbara, California 93101</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTICE OF 2012 ANNUAL MEETING OF STOCKHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>To Be Held on September 21, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To Our Stockholders:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">You are cordially invited
to attend the 2012 annual Meeting of Stockholders (the &ldquo;2012 Annual Meeting&rdquo;) of Save the World Air, Inc. (the &ldquo;Company&rdquo;),
which will be held at the Santa Barbara Club, 1105 Chapala Street, Santa Barbara, California 93101 at 10:00 a.m. on Friday, September
21, 2012 for the purposes of considering and voting upon:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A proposal to
elect three (3) directors to our Board of Directors (the &ldquo;Board&rdquo;)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A proposal to
ratify the appointment of Weinberg &amp; Co., P.A. as our independent auditor for the fiscal year ending December 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">These matters are described
more fully in the proxy statement accompanying this notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our stockholders will
also act upon such other business as may properly come before the meeting or any adjournment or postponement thereof. The Board
is not aware of any other business to be presented to a vote of the stockholders at the 2012 Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Board has fixed
the close of business on July 20, 2012 as the record date (the &ldquo;Record Date&rdquo;) for determining those stockholders who
will be entitled to notice of and to vote at the 2012 Annual Meeting. A list of stockholders entitled to vote at the 2012 Annual
Meeting will be available at the 2012 Annual Meeting and at the offices of the Company ten (10) days prior to the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Representation of at
least a majority in voting interest of our common stock either in person or by proxy is required to constitute a quorum for purposes
of voting at the 2012 Annual Meeting. Accordingly, it is important that your shares be represented at the 2012 Annual Meeting.
<B>WHETHER OR NOT YOU PLAN TO ATTEND THE 2012 ANNUAL MEETING, PLEASE COMPLETE, DATE AND SIGN THE ENCLOSED PROXY CARD AND RETURN
IT IN THE ENCLOSED ENVELOPE.</B> Your proxy may be revoked at any time prior to the time it is voted at the 2012 Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Please read the accompanying
proxy material carefully. Your vote is important and we appreciate your cooperation in considering and acting on the matters presented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%">&nbsp;</TD>
    <TD STYLE="width: 40%">By Order of the Board of Directors,</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">Cecil Bond Kyte</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Cecil Bond Kyte</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-style: italic">Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">August 13, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Santa Barbara, California</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Stockholders Should Read the Entire Proxy
Statement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Carefully Prior to Returning Their Proxies</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">This Proxy Statement and our Annual Report</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">on Form 10K are available at <FONT STYLE="color: windowtext">www.sec.gov</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">and at the corporate
web site <FONT STYLE="color: windowtext">www.stwa.com</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROXY STATEMENT FOR</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2012 ANNUAL MEETING OF STOCKHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SAVE THE WORLD AIR, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>To Be Held on September 21, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This proxy statement
is furnished in connection with the solicitation by our Board of Directors (the &ldquo;Board&rdquo;) of proxies to be voted at
the 2012 Annual Meeting of Stockholders (the &ldquo;2012 Annual Meeting&rdquo;) of Save the World Air, Inc. (the &ldquo;Company&rdquo;),
which will be held at 10:00 a.m. on Friday, September 21, 2012 at the Santa Barbara Club, 1105 Chapala Street, Santa Barbara, California
93101, or at any adjournments or postponements thereof, for the purposes set forth in the accompanying Notice of the 2012 Annual
Meeting of Stockholders (the &ldquo;Notice&rdquo;). This proxy statement and the proxy card are first being delivered or mailed
to stockholders on or about August 21, 2012. Our Annual Report for the year ended December 31, 2011 on Form 10-K (the &ldquo;10-K&rdquo;)
is being mailed to stockholders concurrently with this proxy statement. Our Annual Report to Stockholders on Form 10-K is not to
be regarded as proxy soliciting material or as a communication by means of which any solicitation of proxies is to be made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>VOTING RIGHTS AND SOLICITATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The close of business
on July 20, 2012 is the record date (the &ldquo;Record Date&rdquo;) for stockholders entitled to notice of and to vote at the 2012
Annual Meeting. As of the Record Date, we had 128,221,234 shares of common stock, par value $.001 per share issued and outstanding,
and only those shares are entitled to vote on each of the proposals to be voted upon at the 2012 Annual Meeting. Holders of the
common stock of record entitled to vote at the 2012 Annual Meeting will have one vote for each share of common stock so held with
regard to each matter to be voted upon.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All votes will be tabulated
by the inspector of elections appointed for the 2012 Annual Meeting, who will separately tabulate affirmative and negative votes,
abstentions and broker non-votes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The holders of a majority
in voting interest of the common stock outstanding and entitled to vote at the 2012 Annual Meeting shall constitute a quorum for
the transaction of business at the 2012 Annual Meeting. The voting interest of shares of the common stock represented in person
or by proxy will be counted for purposes of determining whether a quorum is present at the 2012 Annual Meeting. Shares which abstain
from voting as to a particular matter will be treated as shares that are present and entitled to vote for purposes of determining
the voting interest present and entitled to vote with respect to any particular matter, but will not be counted as votes cast on
such matter. If a broker or nominee holding stock in &ldquo;street name&rdquo; indicates on a proxy that it does not have discretionary
authority to vote as to a particular matter, those shares will not be counted as a vote cast on such matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In voting with regard
to the proposal to elect directors (Proposal 1), stockholders may vote in favor of all the nominees, withhold their votes as to
all nominees or withhold their votes as to a specific nominee. The vote required by Proposal 1 is governed by Nevada law and is
a plurality of the votes cast by the holders of shares entitled to vote, (i.e., nominees receiving the highest number of votes
will be elected to the Board) provided a quorum is present. As a result, in accordance with Nevada law, votes that are withheld
and broker non-votes will not be counted and will have no effect on the voting for election of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In voting with regard
to the proposal to ratify the appointment of our independent auditor (Proposal 2), stockholders may vote in favor of such proposal
or against such proposal or may abstain from voting. The vote required to approve Proposal 2 is governed by Nevada law, and the
minimum vote required is a majority of the total votes cast on such proposal, provided a quorum is present. As a result, in accordance
with Nevada law, abstentions and broker non-votes will not be counted and will have no effect on the outcome of the vote on this
proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the rules of
The New York Stock Exchange (the &ldquo;NYSE&rdquo;) that govern most domestic stock brokerage firms, member brokerage firms that
hold shares in &ldquo;street name&rdquo; for beneficial owners may, to the extent that such beneficial owners do not furnish voting
instructions with respect to any or all proposals submitted for stockholder action, vote in their discretion upon proposals which
are considered &ldquo;discretionary&rdquo; proposals under the rules of the NYSE. Member brokerage firms that have received no
instructions from their clients as to &ldquo;non-discretionary&rdquo; proposals do not have discretion to vote on these proposals.
Such broker non-votes will not be considered as votes cast in determining the outcome of any proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shares of our common
stock represented by proxies in the accompanying form which are properly executed and returned to us will be voted at the 2012
Annual Meeting in accordance with the stockholders&rsquo; instructions contained therein. In the absence of contrary instructions,
shares represented by such proxies will be voted FOR each of Proposal 1 and Proposal 2. Management does not know of any matters
to be presented at the 2012 Annual Meeting other than those set forth in this proxy statement and in the Notice accompanying this
proxy statement. If other matters should properly come before the 2012 Annual Meeting, the proxy holders will vote on such matters
in accordance with their best judgment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any stockholder has
the right to revoke his, her or its proxy at any time before it is voted at the 2012 Annual Meeting by giving written notice to
our Secretary, and by executing and delivering to the Secretary a duly executed proxy card bearing a later date, or by appearing
at the 2012 Annual Meeting and voting in person; <I>provided, however</I>, that under the rules of the NYSE, any beneficial owner
whose shares are held in &ldquo;street name&rdquo; by a member brokerage firm may revoke his, her or its proxy and vote his, her
or its shares in person at the 2012 Annual Meeting only in accordance with the applicable rules and procedures of the NYSE.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The entire cost of
soliciting proxies will be borne by the Company. Proxies will be solicited principally through the use of the mails, but, if deemed
desirable, may be solicited personally or by telephone, or special letter by our officers and regular employees for no additional
compensation. Arrangements may be made with brokerage houses and other custodians, nominees and fiduciaries to send proxies and
proxy material to the beneficial owners of our common stock, and such persons may be reimbursed for their expenses.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROPOSAL 1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ELECTION OF DIRECTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Composition of Board of Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our bylaws provide
that the Board shall consist of between one and eight directors, as determined by the Board from time to time. The Board currently
consists of three (3) members elected by the holders of the common stock. The Board has fixed the size of the Board to be elected
at the 2012 Annual Meeting at three (3) members. Our directors are elected by our stockholders at each annual meeting of stockholders
and will serve until their successors are elected and qualified, or until their earlier resignation or removal. There are no family
relationships among any of our current directors, the nominees for directors or our executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The proxy holders named
on the proxy card intend to vote all proxies received by them in the accompanying form for the election of the nominees listed
below, unless instructions to the contrary are marked on the proxy. These nominees have been selected by the Board. The nominees
are currently members of the Board. If elected, each nominee will serve until the annual meeting of stockholders to be held in
2013 or until his or her successor has been duly elected and qualified.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that a
nominee is unable or declines to serve as a director at the time of the 2012 Annual Meeting, the proxies will be voted for any
nominee who shall be designated by the present Board to fill the vacancy. In the event that additional persons are nominated for
election as directors, the proxy holders intend to vote all proxies received by them for the nominees listed below, unless instructions
are given to the contrary. As of the date of this proxy statement, the Board is not aware of any nominee who is unable or will
decline to serve as a director. The Board has several individuals under consideration for appointment to the Board and may at an
appropriate later date increase the size of the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Nominees for Election as Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is certain
information as of August 13, 2012, regarding the nominees for election as directors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 29%; text-decoration: underline; text-align: justify">Name</TD>
    <TD STYLE="width: 8%; text-decoration: underline; text-align: justify">Age</TD>
    <TD STYLE="width: 28%; text-decoration: underline; text-align: justify">Position</TD>
    <TD STYLE="width: 35%; text-decoration: underline; text-align: justify">Director Since</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: justify">Cecil Bond Kyte<SUP>(1)(3)</SUP></TD>
    <TD STYLE="text-align: justify">41</TD>
    <TD STYLE="text-align: justify">Chief Exec. Officer,&nbsp; Chairman&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: justify">2006</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: justify">Charles R. Blum<SUP>(2)</SUP></TD>
    <TD STYLE="text-align: justify">74</TD>
    <TD STYLE="text-align: justify">President, Director&nbsp;</TD>
    <TD STYLE="text-align: justify">2007</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: justify">Nathan Shelton<SUP>(1)(2)(3)</SUP></TD>
    <TD STYLE="text-align: justify">63</TD>
    <TD STYLE="text-align: justify">Director</TD>
    <TD STYLE="text-align: justify">2007</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">_______________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">(1)&#9;Member of the Audit Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">(2)&#9;Member of the Compensation Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt">(3)&#9;Member of the Nominating and Corporate Governance
Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Biographical Information Regarding Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Cecil Bond Kyte
</I></B>has served as a director since February 21, 2006. In December 2007, Mr. Kyte was elected by the Board of Directors to serve
as Chairman of the Board. On January 30, 2009, he was appointed to serve as Chief Executive Officer, replacing Charles R. Blum.
Since December 2002, Mr. Kyte has been an investor in a number of businesses, including those in oil and gas exploration and financial
services. These include SwissGuard International, GmbH, based in Zurich, Switzerland, of which he is a co-founder. SwissGuard serves
the American annuity market with an emphasis on asset protection and growth. From February 2000 to November 2002, Mr. Kyte was
employed by Chautauqua Airways, a United Airlines regional carrier, in various capacities, including service as an airline captain.
He received his B.S. Degree in Accounting from Long Beach State University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Charles R. Blum</I></B>
was appointed on July 25, 2007 to the Board of directors and engaged as the President and Chief Executive Officer of the Company.
On January 30, 2009, Mr. Blum resigned his position as Chief Executive Officer of the Company but continues to serve as President.
Mr. Blum spent 22 years as the President/CEO of the Specialty Equipment Market Association (SEMA). SEMA is a trade group representing
6500 business members who are actively engaged in the manufacture and distribution of automotive parts and accessories. SEMA produces
the world&rsquo;s largest automotive aftermarket trade show which is held annually in Las Vegas, Nevada. Mr. Blum led the association
as its members grew from a handful of small entrepreneurial companies into an industry membership that sells over 31 billion dollars
of product at the retail level annually. Mr. Blum has a proven record of accomplishment as a senior executive and brings a broad
knowledge of the automotive aftermarket to the Company. Mr. Blum attended Rutgers University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Nathan Shelton</I></B>
has served as one of our directors since February 12, 2007. Mr. Shelton has a long and distinguished career with a number of diverse
successful companies primarily related to the automotive industry, holding prominent positions. In 1987 he joined K&amp;N Engineering
as President and part owner and built the company into an industry leader. In 2002 he sold his interest in K&amp;N Engineering
and founded S&amp;S Marketing, which is engaged in the automotive aftermarket parts rep business, which he currently operates.
Mr. Shelton is the recipient of numerous industry related prestigious awards and in 1992, Specialty Equipment Market Association
(SEMA) invited him to join its board of directors, which included serving in capacity as its Chairman from 2002 to 2004. Mr. Shelton
served honorably in the United States Seabees from 1968 to 1972. He attended Chaffey Junior College.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Executive Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
sets forth certain information regarding our executive officers as of August 13, 2012:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 18%; text-decoration: underline; text-align: justify">Name</TD>
    <TD STYLE="width: 11%; text-decoration: underline; text-align: justify">Age</TD>
    <TD STYLE="width: 71%; text-decoration: underline; text-align: justify">Position</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: justify">Cecil Bond Kyte</TD>
    <TD STYLE="text-align: justify">41</TD>
    <TD STYLE="text-align: justify">Chief Executive Officer</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: justify">Charles R. Blum&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: justify">74</TD>
    <TD STYLE="text-align: justify">President</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: justify">Gregg M. Bigger</TD>
    <TD STYLE="text-align: justify">44</TD>
    <TD STYLE="text-align: justify">Chief Financial Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>For the biographies
of Cecil Bond Kyte and Charles R. Blum, please see above under &ldquo;Biographical Information Regarding Directors.&rdquo;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B><I>Greggory M. Bigger</I></B> was appointed
Chief Financial Officer on February 1, 2012 replacing Eugene E. Eichler. Most recently Mr. Bigger was Founder and Partner with
Rocfin Advisors LLC, a Strategic Management Consulting Company providing strategic advice and direction to a variety of clients
including banks and wealth managers, corporations, municipalities and startups in critical areas such as business and strategic
plan development, operational efficiency design and management support, financial modeling and analysis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Prior to Rocfin Advisors LLC, Mr. Bigger was the Founder and
a member of the Board of Directors of the Bank of Santa Barbara. Mr. Bigger orchestrated the launch of the bank, raised the necessary
capital, recruited and organized the Board of Directors, executive team and staff, assisted in developing the banks credit policies,
and was responsible for execution of the banks business strategy, growth and success in the region. The bank was sold to a private
investment group in 2009.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Mr. Bigger has served on numerous non-profit boards including
the Breast Cancer Resource Center, The Wildlife Care Network and Speaking of Stories; in addition Mr. Bigger has served on the
board of the Bank of Santa Barbara and as special advisor to Be Green Packaging LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Bigger served in the United States Marine Corps in Special
Operations</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CORPORATE GOVERNANCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We maintain a corporate
governance page on our corporate website at <I><U>www.stwa.com</U></I>, which includes information regarding the Company&rsquo;s
corporate governance practices. Our codes of business conduct and ethics, Board committee charters and certain other corporate
governance documents and policies and code of business conduct are posted on our website. In addition, we will provide a copy of
any of these documents without charge to any stockholder upon written request made to Corporate Secretary, Save the World Air,
Inc., 735 State Street, Suite 500, Santa Barbara, California 93101. The information on our website is not, and shall not be deemed
to be, a part of this proxy statement or incorporated by reference into this or any other filing we make with the Securities and
Exchange Commission (the &ldquo;SEC&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Board of Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 17%">&nbsp;</TD>
    <TD STYLE="width: 83%; font-style: italic; font-weight: bold; text-align: justify">Director Independence</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">O<FONT STYLE="font-family: Times New Roman, Times, Serif">ur
Board of Directors currently consists of three (3) members. The Board has affirmatively determined that, Mr. Shelton is an independent
director. The &ldquo;nominated&rdquo; three (3) directors for the 2012 Annual Meeting are independent with the exception of Mr.
Kyte, our Chief Executive Officer and Mr. Blum, our President. </FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 17%">&nbsp;</TD>
    <TD STYLE="width: 83%; font-style: italic; font-weight: bold; text-align: justify">Meetings of the Board</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Board held four
(4) meetings during 2011 and five (5) meetings to date in 2012. Each of the directors<B> </B>attended 75% or more of the aggregate
number of meetings of the Board and Committees on which the director served in 2011 and 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each of our directors
is encouraged to attend the Company&rsquo;s 2012 Annual Meeting and to be available to answer any questions posed by stockholders
to such director. Because our Board holds one of its regular meetings in conjunction with our Annual Meeting of stockholders, we
anticipate that all of the members of the Board will be present for the 2012 Annual Meeting.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 17%">&nbsp;</TD>
    <TD STYLE="width: 83%; font-style: italic; font-weight: bold; text-align: justify">Communications with the Board</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following procedures
have been established by the Board in order to facilitate communications between our stockholders and the Board:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Stockholders may send correspondence,
which should indicate that the sender is a stockholder, to the Board or to any individual director, by mail to Corporate Secretary,
Save the World Air, Inc., 735 State Street, Suite 500, Santa Barbara, California 93101 or by e-mail to questions @www.stwa.com.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our Secretary will be responsible for
the first review and logging of this correspondence and will forward the communication to the director or directors to whom it
is addressed unless it is a type of correspondence which the Board has identified as correspondence which may be retained in our
files and not sent to directors. The Board has authorized the Secretary to retain and not send to directors communications that:
(a) are advertising or promotional in nature (offering goods or services), (b) solely relate to complaints by customers with respect
to ordinary course of business customer service and satisfaction issues or (c) clearly are unrelated to our business, industry,
management or Board or committee matters. These types of communications will be logged and filed but not circulated to directors.
Except as set forth in the preceding sentence, the Secretary will not screen communications sent to directors.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The log of stockholder correspondence
will be available to members of the Board for inspection. At least once each year, the Secretary will provide to the Board a summary
of the communications received from stockholders, including the communications not sent to directors in accordance with the procedures
set forth above.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our stockholders may
also communicate directly with the non-management directors, individually or as a group, by mail c/o Corporate Secretary, Save
the World Air, Inc., 735 State Street, Suite 500, Santa Barbara, California 93101 or by e-mail to <U>questions@www.stwa.com.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Audit Committee
has established procedures, as outlined in the Company&rsquo;s policy for <B>&ldquo;</B>Procedures for Accounting and Auditing
Matters<B>&rdquo;, </B>for the receipt, retention and treatment of complaints regarding questionable accounting, internal controls,
and financial improprieties or auditing matters. Any of the Company&rsquo;s employees may confidentially communicate concerns about
any of these matters by calling (805) 845-3581. Upon receipt of a complaint or concern, a determination will be made whether it
pertains to accounting, internal controls or auditing matters and if it does, it will be handled in accordance with the procedures
established by the Audit Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 17%">&nbsp;</TD>
    <TD STYLE="width: 83%; font-style: italic; font-weight: bold; text-align: justify">Committees of the Board</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Board has a standing
Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee. Each of these committees operates under
a written charter. Copies of these charters, and other corporate governance documents, are available on our website, <U>www.stwa.com</U>
In addition, we will provide a copy of any of these documents without charge to any stockholder upon written request made to Corporate
Secretary, Save the World Air, Inc., 735 State Street, Suite 500, Santa Barbara, California 93101.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The composition, functions
and general responsibilities of each committee are summarized below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 17%">&nbsp;</TD>
    <TD STYLE="width: 83%; font-style: italic; font-weight: bold; text-align: justify">Audit Committee</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Audit Committee
consists of Messrs. Kyte (chairperson), and Shelton. The Board has determined that Mr. Shelton is independent under rules of the
SEC. Mr. Kyte, our Chief Executive Officer is not considered independent. The Audit Committee held a total of four (4) meetings
during 2011 and a total of three (3) meetings to date during 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Audit Committee
operates under a written charter. The Audit Committee&rsquo;s duties include responsibility for reviewing our accounting practices
and audit procedures. In addition, the Audit Committee has responsibility for reviewing complaints about, and investigating allegations
of, financial impropriety or misconduct. The Audit Committee works closely with management and our independent auditors. The Audit
Committee also meets with our independent auditors on a quarterly basis, following completion of their quarterly reviews and annual
audit, to review the results of their work. The Audit Committee also meets with our independent auditors to approve the annual
scope of the audit services to be performed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As part of its responsibility,
the Audit Committee is responsible for engaging our independent auditor, as well as pre-approving audit and non-audit services
performed by our independent auditor in order to assure that the provision of such services does not impair the independent auditor&rsquo;s
independence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Please see &ldquo;Audit
Committee Report&rdquo; below, which provides further details of many of the duties and responsibilities of the Audit Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 17%">&nbsp;</TD>
    <TD STYLE="width: 83%; font-style: italic; font-weight: bold; text-align: justify">Compensation Committee, Compensation Committee Interlocks and Insider Participation</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Compensation Committee
currently consists of Messrs. Shelton (chairperson) and Mr. Blum. The Board believes that Mr. Shelton meets the independence requirement.
Mr. Blum, our President is not considered to be independent. None of our executive officers served on the compensation committee
of another entity or on any other committee of the board of directors of another entity performing similar functions during 2011
and 2012... The Compensation Committee held one (1) meeting during 2011 and has not met during 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Compensation Committee
operates under a written charter. The Compensation Committee establishes the compensation and benefits of our executive officers.
The Compensation Committee also administers our employee benefit plans, including the Company&rsquo;s 2004 Stock Option Plan.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Please see &ldquo;Compensation
Committee Report&rdquo; below, which details the Compensation Committee&rsquo;s report on our executive compensation for 2011 and
2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 17%">&nbsp;</TD>
    <TD STYLE="width: 83%; font-style: italic; font-weight: bold; text-align: justify">Nominating and Corporate Governance Committee</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Nominating and
Corporate Governance Committee currently consists of Messrs. Shelton (chairperson), and Kyte<B>. </B> The Board believes that Mr.
Shelton meets the independence requirement. Mr. Kyte, our Chief Executive Officer is not considered to be independent. The Nominating
and Corporate Governance Committee held one (one) meeting during 2011 and has not met during 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Nominating and
Corporate Governance Committee operates under a written charter. The Nominating and Corporate Governance Committee has the primary
responsibility for overseeing the Company&rsquo;s corporate governance compliance practices, as well as supervising the affairs
of the Company as they relate to the nomination of directors. The principal ongoing functions of the Nominating and Corporate Governance
Committee include developing criteria for selecting new directors, establishing and monitoring procedures for the receipt and consideration
of director nominations by stockholders and others, considering and examining director candidates, developing and recommending
corporate governance principles for the Company and monitoring the Company&rsquo;s compliance with these principles and establishing
and monitoring procedures for the receipt of stockholder communications directed to the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Nominating and
Corporate Governance Committee is also responsible for conducting an annual evaluation of the Board to determine whether the Board
and its committees are functioning effectively. In performing this evaluation, the Nominating and Corporate Governance Committee
receives comments from all directors and reports annually to the Board with the results of this evaluation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Director Nominations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Nominating and
Corporate Governance Committee seeks out appropriate candidates to serve as directors of the Company, and the Nominating and Corporate
Governance Committee interviews and examines director candidates and makes recommendations to the Board regarding candidate selection.
In considering candidates to serve as director, the Nominating and Corporate Governance Committee evaluates various minimum individual
qualifications, including strength of character, maturity of judgment, relevant technical skills or financial acumen, diversity
of viewpoint and industry knowledge, as well as the extent to which the candidate would fill a present need on the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Nominating and
Corporate Governance Committee will consider, without commitment, stockholder nominations for director. Nominations for director
submitted to this committee by stockholders are evaluated according to the Company&rsquo;s overall needs and the nominee&rsquo;s
knowledge, experience and background. A nominating stockholder must give appropriate notice to the Company of the nomination not
less than 90 days prior to the first anniversary of the preceding year&rsquo;s annual meeting. In the event that the date of the
annual meeting is advanced by more than 30 days or delayed by more than 60 days from the anniversary date of the preceding year&rsquo;s
annual meeting, the notice by the stockholder must be delivered not later than the close of business on the later of the 60th day
prior to such annual meeting or the tenth day following the day on which public announcement of the date of such annual meeting
is first made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The stockholders&rsquo;
notice shall set forth, as to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="width: 5%; border-width: 1pt; border-style: black; text-align: justify">&#9679;</TD>
    <TD STYLE="width: 90%; border-width: 1pt; border-style: black; padding-right: 5.8pt; text-align: justify">each person whom the stockholder proposes to nominate for election as a director:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&#9679;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; padding-right: 5.8pt; text-align: justify">the name, age, business address and residence address of such person,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&#9679;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; padding-right: 5.8pt; text-align: justify">the principal occupation or employment of the person,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&#9679;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; padding-right: 5.8pt; text-align: justify">the class and number of shares of the Company which are beneficially owned by such person, if any,&nbsp;and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&#9679;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: justify">any other information relating to such person which is required to be disclosed in solicitations for proxies for election of directors pursuant to Regulation&nbsp;14A under the Exchange Act and the rules hereunder;&nbsp;and the stockholder giving the notice</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&#9679;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: justify">the name and record address of the stockholder and the class and number of shares of the Company which are beneficially owned by the stockholder,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&#9679;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: justify">a description of all arrangements or understandings between such stockholder and each proposed nominee and any other person or persons (including their names) pursuant to which nomination(s) are to be made by such stockholder,&nbsp;</TD></TR>
</TABLE>
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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="width: 5%; border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="width: 90%; border-width: 1pt; border-style: black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&#9679;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">a representation that such stockholder intends to appear in person or by proxy at the meeting to nominate the persons named in its notice,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&#9679;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">any other information relating to such person which is required to be disclosed in solicitations for proxies for election of directors pursuant to Regulation&nbsp;14A under the Exchange Act and the rules thereunder.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The notice must be
accompanied by a written consent of the proposed nominee to be named as a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our directors who are
not officers or employees of the Company are compensated for their services in the amount of $1,000 per meeting of the Board plus
annual payments of $7,500 and $25,000 for the Chairman of the Board. In addition, the chairperson of the Audit Committee receives
an annual payment of $20,000 and the chairpersons of the Compensation and Nominating and Corporate Governance Committees each receives
an annual payment of $15,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Recommendation of the Board</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>The Board unanimously
recommends that stockholders vote FOR election of each of the nominees identified above.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROPOSAL 2</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RATIFICATION OF APPOINTMENT OF INDEPENDENT
AUDITORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Audit Committee
has selected Weinberg &amp; Company, P.A. to audit our financial statements for the fiscal year ending December 31, 2012. Although
ratification by stockholders is not required by law, the Board has determined that it is desirable to request ratification of this
selection by the stockholders. Notwithstanding its selection, the Audit Committee, in its discretion, may appoint new independent
auditors at any time during the year if the Audit Committee believes that such a change would be in the best interest of the Company
and its stockholders. If the stockholders do not ratify the appointment of Weinberg &amp; Company, P.A. the Audit Committee may
reconsider its selection.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Weinberg &amp; Company,
P.A. was first appointed in fiscal year 2003, and has audited our financial statements for fiscal years 2002 through 2011. The
Board expects that representatives of Weinberg &amp; Company, P.A. will be present at the 2012 Annual Meeting to respond to appropriate
questions and to make a statement if they so desire.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Audit and Other Fees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
summarizes the fees charged by Weinberg &amp; Company, P.A. for certain services rendered to the Company during 2010 and 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Amount Billed</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: justify">Type of Fee</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Fiscal Year 2010</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; font-weight: bold; text-align: center">Fiscal Year 2011</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="width: 72%; padding-left: 9pt; text-align: justify; text-indent: -9pt">Audit<SUP>(1)</SUP></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 11%; text-align: right">87,883</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 11%; text-align: right">83,162</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt; text-align: justify; text-indent: -9pt">Audit Related<SUP>(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="padding-left: 9pt; text-align: justify; text-indent: -9pt">Tax<SUP>(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">20,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">7,693</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt; text-align: justify; text-indent: -9pt">All Other<SUP>(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">0</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">0</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt; text-align: justify; text-indent: -9pt">Total</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">108,803</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">90,855</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">__________</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; text-align: justify">(1)</TD>
    <TD STYLE="width: 95%; text-align: justify">This category consists of fees for the audit of our annual financial statements included in the Company&rsquo;s annual report on Form 10-K and review of the financial statements included in the Company&rsquo;s quarterly reports on Form 10-Q. This category also includes advice on audit and accounting matters that arose during, or as a result of, the audit or the review of interim financial statements, statutory audits required by non-U.S. jurisdictions and the preparation of an annual &ldquo;management letter&rdquo; on internal control matters.</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">(2)</TD>
    <TD STYLE="text-align: justify">Represents services that are normally provided by the independent auditors in connection with statutory and regulatory filings or engagements for those fiscal years, aggregate fees charged for assurance and related services that are reasonably related to the performance of the audit and are not reported as audit fees. These services include consultations regarding Sarbanes-Oxley Act requirements, various SEC filings and the implementation of new accounting requirements.</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">(3)</TD>
    <TD STYLE="text-align: justify">Represents aggregate fees charged for professional services for tax compliance and preparation, tax consulting and advice, and tax planning.</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">(4)</TD>
    <TD STYLE="text-align: justify">Represents aggregate fees charged for products and services other than those services previously reported.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If a quorum is present,
the affirmative vote of a majority of the shares present and entitled to vote at the 2012 Annual Meeting will be required to ratify
the appointment of Weinberg &amp; Company, P.A. as our independent auditors. Abstentions will have the effect of a vote &ldquo;against&rdquo;
the ratification of Weinberg &amp; Company, P.A. as our independent auditors. Broker non-votes will have no effect on the outcome
of the vote.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Recommendation of the Board</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>The Board unanimously
recommends that stockholders vote FOR the proposal to ratify the appointment of Weinberg &amp; Co., P.A. as our independent auditor
for the fiscal year ending December 31, 2012.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
sets forth certain information regarding the beneficial ownership of our common stock as of July 20, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">each person, or group of affiliated persons, known by us to be the
beneficial owner of more than 5% of the outstanding shares of our common stock;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1.3pt 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="padding-right: 1.3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">each of our directors;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our Chief Executive Officer and each of our two other most highly-compensated
executive officers serving as such as of July 20, 2012 whose total annual salary and bonus exceeded $100,000, for services rendered
in all capacities to the Company (such individuals are hereafter referred to as the &ldquo;Named Executive Officers&rdquo;); and
all of our directors and executive officers serving as a group.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid">Name and Address of Beneficial Owner<SUP>(1)</SUP> </TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; padding-bottom: 1.5pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Number of Shares of</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Common Stock</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Beneficially Owned<SUP>(2)</SUP></P></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Percentage of</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Shares Beneficially</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Owned<SUP>(2)</SUP></P></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD>Named Executive Officers and Directors</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 72%; text-indent: 9pt">Cecil Bond Kyte, Chief Executive Officer, Director<SUP>(3)</SUP> </TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: right">7,890,412</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: right">5.92%</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="text-indent: 9pt">Charles R. Blum , President, Director<SUP>(4)</SUP> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,944,012</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1.49%</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 9pt">Greggory M. Bigger, Chief Financial Officer<SUP>(5)</SUP> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">0.39%</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="text-indent: 9pt">Nathan Shelton, Director<SUP>(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">496,937</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">0.39%</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 9pt">All directors and executive officers as a group</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">10,831,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">7.96%</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-indent: -27pt">__________</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(1)</TD><TD>Unless otherwise indicated, the address of each listed person is c/o Save the World Air, Inc., 735 State Street, Suite 500,
Santa Barbara, California 93101.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(2)</TD><TD STYLE="text-align: justify">Percentage of beneficial ownership is based upon 128,221,234 shares of our common stock outstanding as of July 20, 2012. Beneficial
ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect
to securities. Shares of common stock subject to options and warrants currently exercisable or convertible, or exercisable or convertible
within 60 days, are deemed outstanding for determining the number of shares beneficially owned and for computing the percentage
ownership of the person holding such options or warrants, but are not deemed outstanding for computing the percentage ownership
of any other person. Except as indicated by footnote, and subject to community property laws where applicable, the persons named
in the table have sole voting and investment power with respect to all shares of common stock shown as beneficially owned by them.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(3)</TD><TD STYLE="text-align: justify">Includes options to purchase 4,620,000 shares of our common stock exercisable currently and warrants to purchase 500,000 shares
of our common stock. On March 1, 2011, Mr.&nbsp;Kyte&rsquo;s Employment Contract was amended. The Amendment to Employment Agreement
granted to Mr. Kyte, as of January 30, 2011 (the &ldquo;Effective Date of Grant&rdquo;) 17,600,000 options at an exercise price
of $0.25 per share. These are Non-Qualified options and the underlying shares shall constitute &ldquo;restricted&rdquo; securities.
The exercise term is ten (10) years from the Effective Date of Grant. Twenty percent (20%) of the options shall vest on each yearly
anniversary of the Effective Date of Grant. Included in the above calculation, are three million five hundred twenty thousand (3,520,000)
options that were in the Amendment to Employment Agreement. As of January 30, 2011, 181,818 options previously awarded were cancelled
and are excluded in the above calculation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(4)</TD><TD>Includes options to purchase 1,922,012 shares of our common stock exercisable currently, and warrants to purchase 22,000 shares
of our common stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(5)</TD><TD>Includes options to purchase 500,000 shares of our common stock exercisable currently</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(6)</TD><TD>Includes options to purchase 304,585 shares of our common stock exercisable currently.</TD></TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXECUTIVE COMPENSATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
sets forth certain information regarding the compensation earned during the last three fiscal years by the Named Executive Officers:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Summary Compensation Table</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-width: 1pt"></TD>
    <TD STYLE="border-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="17" STYLE="border-bottom: black 1pt solid; border-top-color: black; border-top-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: center">Long-Term Compensation Awards</TD>
    <TD STYLE="border-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-width: 1pt"></TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="17" STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt">Name and Principal Position</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right-color: black; border-right-width: 1pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Fiscal<BR>
Year</P></TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; border-right-color: black; border-right-width: 1pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Annual</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Compensation<BR>
Salary ($)</P></TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; border-right-color: black; border-right-width: 1pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Restricted<BR>
Stock</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Awards<BR>
($)</P></TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; border-right-color: black; border-right-width: 1pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities<BR>
Underlying&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Options<BR>
(#)</P></TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; border-right-color: black; border-right-width: 1pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">All<BR>
Other</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Compensation<BR>
($)</P></TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="width: 40%; border-width: 1pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cecil Bond Kyte (1)(4)</P></TD>
    <TD STYLE="width: 2%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 9%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: center">2011</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="width: 9%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">208,333</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="width: 9%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 9%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17,600,000</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="width: 9%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-width: 1pt">&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; Chief Executive Officer</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: center">2010</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">200,000</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="border-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: center">2009</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">183,333</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-width: 1pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Charles R. Blum (2) (4)</P></TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: center">2011</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">100,000</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">1,000,000</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="border-width: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; President</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: center">2010</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">100,000</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: center">2009</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">105,682</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">333,333</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="border-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-width: 1pt">Eugene E. Eichler (3) (4)</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: center">2011</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">120,000</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">1,000,000</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(238,238,238)">
    <TD STYLE="border-width: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interim Chief Financial Officer</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: center">2010</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">120,000</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: center">2009</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">90,000</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.55pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>Mr. Kyte was appointed Chief Executive Officer in January 2009.&nbsp; In 2010, Mr. Kyte earned and was paid $200,000. &nbsp;
&nbsp;In addition, Mr. Kyte received $33,333 in accrued back pay and on December 8, 2011 he received a bonus of $54,505. In connection
with the Amendment to Mr. Kyte&rsquo;s Employment Agreement dated March 1, 2011, Mr. Kyte received options for 17,600,000 shares
of common stock, and, options for 181,118 shares of common stock previously granted were cancelled. On December 1, 2011, the Board
approved Amendment Number 2 to Mr. Kyte&rsquo;s Employment Agreement and increased his salary to $300,000 per year.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(2)</TD><TD STYLE="text-align: justify">Mr. Blum was appointed President and Chief Executive Officer in July 2007.&nbsp; In January 20, 2009 Mr. Blum resigned the
position of Chief Executive Officer and continues to serve as President.&nbsp; He does not have an &ldquo;Employment Agreement&rdquo;
at this time.&nbsp; In 2010, Mr. Blum earned&nbsp;&nbsp;$100,000 all of which was unpaid and accrued. In 2011, Mr. Blum earned
$100,000, of which $33,333 was paid and $66,667 was accrued.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(3)</TD><TD STYLE="text-align: justify">On October 18, 2007, Mr. Eichler was appointed Interim Chief Financial Officer.&nbsp;&nbsp; In 2010, Mr. Eichler was paid $80,000
and $40,000 was accrued and unpaid at December 31, 2010. In 2011, Mr. Eichler received his full salary of $120,000 and $45,000
of accrued back pay. At December 31, 2011 Mr. Eichler had a balance of $145,000 accrued back pay. Effective December 31, 2011,
Mr. Eichler resigned as Interim Chief Financial Officer.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(4)</TD><TD STYLE="text-align: justify">The number and value of vested restricted stock based upon the closing market price of the common stock at December 31, 2011
($0.37) were as follows: Mr. Kyte 2,770,412 vested shares valued at $1,025,244, and Mr. Eichler, 1,071,429 vested shares valued
at $396,429.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The portions of the
salaries identified above that have been deferred will be paid subject to the Company&rsquo;s future financial and cash position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;&nbsp; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OPTION GRANTS IN LAST FISCAL YEAR</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
sets forth information concerning the stock option grants made to each of the Named Executive Officers during the 2011 fiscal year.
No stock appreciation rights were granted to any of the Named Executive Officers during the 2011 fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD COLSPAN="12" STYLE="border-bottom: black 1pt solid; border-top-color: black; border-top-width: 1pt; border-right-color: black; border-right-width: 1pt; font-weight: bold; text-align: center">Individual Grants</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Name</B></P></TD>
    <TD STYLE="border-right-color: black; border-right-width: 1pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right-color: black; border-right-width: 1pt; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Number of</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<B>Securities</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<B>Underlying</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<B>Options</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<B>Granted</B></P></TD>
    <TD STYLE="border-right-color: black; border-right-width: 1pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-right-color: black; border-right-width: 1pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right-color: black; border-right-width: 1pt; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Percent of</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<B>Total Options</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<B>Granted to</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<B>Employees in</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;<B>Fiscal 2010</B></P></TD>
    <TD STYLE="border-right-color: black; border-right-width: 1pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-right-color: black; border-right-width: 1pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right-color: black; border-right-width: 1pt; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>Exercise or</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>Base Price</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;<B>Per Share</B></P></TD>
    <TD STYLE="border-right-color: black; border-right-width: 1pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-right-color: black; border-right-width: 1pt; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>Expiration</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;<B>Date</B></P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #EEEEEE">
    <TD STYLE="width: 39%">Cecil Bond Kyte</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: right">17,600,000</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center">88.9%</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center">$0.25</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: center">01/30/2021</TD></TR>
<TR STYLE="background-color: #EEEEEE">
    <TD STYLE="vertical-align: top">Charles R. Blum</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;1,000,000</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;&nbsp;5.5%</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">$0.30</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">10/01/2021</TD></TR>
<TR STYLE="background-color: #EEEEEE">
    <TD STYLE="vertical-align: top">Eugene E. Eichler</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;1,000,000</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;&nbsp;5.5%</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;$0.30</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">10/01/2021</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #EEEEEE">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.15pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AGGREGATED OPTION EXERCISES IN LAST FISCAL
YEAR</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AND YEAR-END OPTION VALUES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">No options were exercised
by any of the Named Executive Officers during the 2011 fiscal year. The following table sets forth the number of shares of our
common stock subject to exercisable and unexercisable stock options which the Named Executive Officers held at the end of the 2011
fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; background-color: white; border-collapse: collapse">
<TR>
    <TD STYLE="border-width: 1pt; vertical-align: bottom; border-style: black">&nbsp;</TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-width: 1pt; vertical-align: bottom; border-style: black; font-weight: bold; text-align: center">Shares</TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-width: 1pt; vertical-align: bottom; border-style: black; font-weight: bold; text-align: center">Value</TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD>
    <TD STYLE="border-width: 1pt; vertical-align: bottom; border-style: black">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-top-color: black; border-top-width: 1pt; border-right-color: black; border-right-width: 1pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Number
        of Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Underlying Unexercised</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Options at</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Fiscal Year-End
(#)</B></P></TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-top-color: black; border-top-width: 1pt; border-right-color: black; border-right-width: 1pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Value of Unexercised</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>In-the-Money Options
        ($)(1)</B></P></TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-width: 1pt; vertical-align: bottom; border-style: black">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; font-weight: bold; text-align: center">Acquired on</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; font-weight: bold; text-align: center">Realized</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-left-color: black; border-left-width: 1pt; border-right-color: black; border-right-width: 1pt; font-weight: bold; text-align: center">Name</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-right-color: black; border-right-width: 1pt; font-weight: bold; text-align: center">Exercise (#)</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-right-color: black; border-right-width: 1pt; font-weight: bold; text-align: center">($)</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-right-color: black; border-right-width: 1pt; font-weight: bold; text-align: center">Exercisable</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-right-color: black; border-right-width: 1pt; font-weight: bold; text-align: center">Unexercisable</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-right-color: black; border-right-width: 1pt; font-weight: bold; text-align: center">Exercisable</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-right-color: black; border-right-width: 1pt; font-weight: bold; text-align: center">Unexercisable</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #EEEEEE">
    <TD STYLE="width: 30%; vertical-align: bottom; border-width: 1pt; border-style: black">Cecil Bond Kyte</TD>
    <TD STYLE="width: 1%; vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 8%; vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&nbsp;&mdash;</TD>
    <TD STYLE="width: 1%; vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="width: 8%; vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&mdash;</TD>
    <TD STYLE="width: 1%; vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 11%; vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">4,620,000</TD>
    <TD STYLE="width: 1%; vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 9%; vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">14,080,000</TD>
    <TD STYLE="width: 1%; vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="width: 9%; vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">532,400</TD>
    <TD STYLE="width: 1%; vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="width: 9%; vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp; 1,689,600</TD>
    <TD STYLE="width: 1%; vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-width: 1pt; vertical-align: bottom; border-style: black; padding-left: 9pt; text-indent: -9pt">Charles R. Blum</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&mdash;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,922,012</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">108,333</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&nbsp;0</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #EEEEEE">
    <TD STYLE="border-width: 1pt; vertical-align: bottom; border-style: black">Eugene E. Eichler</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">__</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">__</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,121,127</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">70,000</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.2pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; border-width: 1pt">(1)</TD>
    <TD STYLE="width: 97%; border-width: 1pt; text-align: justify">Market value of our common stock at fiscal year-end minus the exercise price. The closing price of our common stock on December&nbsp;31, 2011 the last trading day of the year was $0.37&nbsp;per share.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EQUITY COMPENSATION PLAN INFORMATION
FOR 2011</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth information regarding outstanding options and shares reserved for future issuance under our equity compensation
plans as of December&nbsp;31, 2011:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; background-color: white; border-collapse: collapse">
<TR>
    <TD STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-width: 1pt; border-style: black; font-weight: bold">Plan Category</TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-top-color: black; border-top-width: 1pt; border-right-color: black; border-right-width: 1pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Number of Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>to be Issued upon</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Exercise of</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Outstanding Options,</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Warrants and Rights</B></P></TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-top-color: black; border-top-width: 1pt; border-right-color: black; border-right-width: 1pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Weighted-Average</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Exercise Price of</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Outstanding Options,</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Warrants and Rights</B></P></TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; vertical-align: bottom; border-top-color: black; border-top-width: 1pt; border-right-color: black; border-right-width: 1pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Number
        of Securities</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Remaining
        Available</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>for Future
        Issuance</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Under
        Equity</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Compensation
        Plans</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Excluding
        Securities</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Reflected
        in the</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>First Column)</B></P></TD>
    <TD STYLE="border-width: 1pt; vertical-align: top; border-style: black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #EEEEEE">
    <TD STYLE="width: 46%; border-width: 1pt; border-style: black">Equity compensation plans approved by security holders</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 2%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 14%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">4,267,892</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 2%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="width: 14%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0.52</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 2%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="width: 14%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">2,732,108</TD>
    <TD STYLE="width: 1%; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-width: 1pt; border-style: black">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="background-color: #EEEEEE">
    <TD STYLE="border-width: 1pt; vertical-align: bottom; border-style: black">Equity compensation plans not approved by security holders</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">19,800,000</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0.26</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">N/A</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-width: 1pt; vertical-align: bottom; border-style: black">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #EEEEEE">
    <TD STYLE="border-width: 1pt; border-style: black; padding-left: 9pt; text-indent: -9pt">Total</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">24,067,892</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">$</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">0.30</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt; text-align: right">N/A</TD>
    <TD STYLE="border-bottom-color: black; border-bottom-width: 1pt; border-right-color: black; border-right-width: 1pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><B><I>Employment agreements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Agreement with
Cecil Bond Kyte. </I></B>On January 30, 2009, (the &ldquo;Effective Date&rdquo;), the Company entered into an employment agreement
with Cecil Bond Kyte, pursuant to which he serves as our Chief Executive Officer.&nbsp;&nbsp;The initial term of the agreement
became effective on January 30, 2009 and expires on January 30, 2010 and renews automatically for addition one-year periods unless
either party has given notice of non-extension prior to October 30, 2010.&nbsp;&nbsp;The agreement provides for a base compensation
of $200,000 per year.&nbsp;&nbsp;Mr. Kyte is eligible to participate in the Company&rsquo;s incentive and benefit plans, including
eligibility to receive grants of stock options under the 2004 plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Mr. Kyte shall be eligible
to receive an annual cash bonus in an amount equal to 2% of the Company&rsquo;s net profit, if any, for its most recently completed
fiscal year, computed in accordance with generally accepted accounting principles applied consistently with prior periods.&nbsp;&nbsp;The
bonus shall be payable, if at all, on the anniversary date of employment each year of the term; provided that no bonus shall be
paid if the Executive is not, on such payment date, in the employ of the Company.</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Mr. Kyte shall also
receive an option (the &ldquo;Option&rdquo;) to purchase a number of shares (the &ldquo;Option Shares&rdquo;) of the Company&rsquo;s
common stock equal to the result of (A) 100,000 divided by (B) the closing price per share of the Company&rsquo;s Common Stock
on the first anniversary of the Effective Date.&nbsp;&nbsp;The Option shall be an incentive stock option, shall be exercisable
at the closing price per share on the first anniversary of the Effective Date, shall be exercisable for ten years from the date
of grant and shall vest on the second anniversary of the Effective Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Amendment #1
of Kyte Employment Agreement</I></B>. On March 1, 2011, the Board of Directors of. the Company approved an amendment (the &ldquo;Amendment&rdquo;)
to the Kyte employment agreement. The Company and Kyte have agreed to an amendment of the Employment Agreement, providing for non-cash
performance compensation in the form of nonqualified stock options. Kyte has agreed to continue to serve in the role of CEO of
the Company through at least January 29, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board determined to grant Kyte nonqualified
stock options to acquire shares of common stock of the Company under the following terms and conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Stock Option Grant (&ldquo;Grant&rdquo;)
of 17,600,000 Shares at an Exercise Price of&nbsp;&nbsp;$0.25 per share exercisable for 10 years, which will expire on January
30, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&#9;Twenty percent (20%) of the Option
shall vest on the first anniversary of the Effective Date (i.e. January 30, 2011); twenty percent (20%) on the second anniversary
of the Effective Date; twenty percent (20%) on the third anniversary of the Effective Date; twenty percent (20%) on the fourth
anniversary of the Effective Date; and, twenty percent (20%) on the fifth anniversary of the Effective Date;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Amendment #2
of Kyte Employment Agreement</I></B>. The Second Amendment to Kyte&rsquo;s Employment Agreement was made and entered into by and
between the Company, and Kyte effective as of December 1, 2011. Compensation for Kyte was increased to a base salary of $300,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Agreement with
Greggory M. Bigger</I></B>. On February 1, 2012 (the &ldquo;Effective Date&rdquo;), the Company entered into an employment agreement
with Greggory M. Bigger, pursuant to which he serves as our Chief Financial Officer. The initial term of the agreement is for one
year and is renewable for successive one year periods unless either party shall give written notice to the other, not later than
December 1<SUP>st</SUP> of the then-current year of the Term that this Agreement shall not be renewed (the &ldquo;Expiration Date&rdquo;).
The Agreement provides for a base compensation of $120,000 per year and a one-time acceptance bonus of $10,000. Mr. Bigger is eligible
to participate in the Company&rsquo;s incentive and benefit plans, including eligibility to receive grants of stock options under
the 2004 Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Mr. Bigger shall also
receive options awards effective February 1, 2012 (the &ldquo;Effective Date of Grant&rdquo;) over a four (4) year period as follows
subject to his continued employment with the Company: 500,000 options shall vest on the Effective Date of Grant; 500,000 options
shall vest on February 1, 2013; 1,000,000 options shall vest on February 1, 2014; 1,000,000 shares shall vest on February 1, 2015
and 1,000,000 shares shall vest on February 1, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPENSATION COMMITTEE REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Compensation Committee
has furnished this report on executive compensation for the 2011 fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Compensation Committee
administers the Company&rsquo;s executive compensation program. The Compensation Committee has the authority to review and determine
the salaries and bonuses of the executive officers of the Company, including the Chief Executive Officer and the other executive
officers named in the Summary Compensation Table (the &ldquo;Named Executive Officers&rdquo;) appearing elsewhere in this proxy
statement, and to establish the general compensation policies for such individuals. The Compensation Committee also has the sole
and exclusive authority to make discretionary option grants to all of the Company&rsquo;s employees under the Company&rsquo;s 2004
Stock Option Plan (the &ldquo;2004 Plan&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Compensation Committee
currently consists of Messrs. Blum (chairperson) and Shelton. The Board believes that Mr. Shelton meets the independence requirement.
None of our executive officers served on the compensation committee of another entity or on any other committee of the board of
directors of another entity performing similar functions during 2011. The Compensation Committee held one (1) meeting during 2011
and held one (1) meeting to date during 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Compensation Committee
operates under a written charter. The charter reflects these various responsibilities, and the Committee is charged with periodically
reviewing the charter. In addition, the Committee has the authority to engage the services of outside advisors, experts and others,
including independent compensation consultants who do not advise the Company, to assist the Committee.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Compensation Committee
believes that the compensation programs for the Company&rsquo;s executive officers should reflect the Company&rsquo;s performance
and the value created for the Company&rsquo;s stockholders. In addition, the compensation programs should support the short-term
and long-term strategic goals and values of the Company, reward individual contribution to the Company&rsquo;s success and align
the interests of the Company&rsquo;s officers with the interests of its stockholders. The committee believes that the Company&rsquo;s
success depends upon its ability to attract and retain qualified executives through the competitive compensation packages it offers
to such individuals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The principal factors
that were taken into account in establishing each executive officer&rsquo;s compensation package for the 2011 fiscal year are described
below. However, the Compensation Committee may in its discretion apply entirely different factors, such as different measures of
financial performance, for future fiscal years. Moreover, all of the Company&rsquo;s Named Executive Officers have entered into
employment agreements with the Company and many components of each such person&rsquo;s compensation are set by such agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Equity-Based Compensation.</I>
The Committee believes in linking long-term incentives to an increase in stock value. Accordingly, it awards stock options under
the 2004 Plan with an exercise price equal to the fair market value of the underlying stock on the date of grant that vest and
become exercisable over time. The Committee believes that these options encourage employees to continue to use their best efforts
and to remain in the Company&rsquo;s employed. Options granted to executive officers under the 2004 Plan generally vest and become
exercisable in annual 25% increments over a four-year period after grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Committee relies
substantially on management of the Company to make specific recommendations regarding which individuals should receive option grants
and the amounts of such grants. In 2011, the Committee granted 17,600.000 options to Cecil Bond Kyte, the Chief Executive Officer
as a condition of his employment contract and revoked 181,818 options previously granted. Charles R. Blum, the President and Eugene
E. Eichler, the Interim Chief Financial Officer were each granted 1,000,000 options. The Named Executive Officers were individually
awarded the number of stock options shown in the table headed &ldquo;Option Grants in Last Fiscal Year&rdquo; appearing elsewhere
in this proxy statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Compliance with
Code Section 162(m).</I> Section 162(m) of the Code disallows a tax deduction to publicly-held companies for compensation paid
to certain of their executive officers, to the extent that compensation exceeds $1 million per covered officer in any fiscal year.
The limitation applies only to compensation which is not considered to be performance based. Non-performance based compensation
paid to the Company&rsquo;s executive officers for the 2011 fiscal year did not exceed the $1 million limit per officer, and the
Compensation Committee does not anticipate that the non-performance based compensation to be paid to the Company&rsquo;s executive
officers for the 2011 fiscal year will exceed that limit. Because it is unlikely that the cash compensation payable to any of the
Company&rsquo;s executive officers in the foreseeable future will approach the $1 million limit, the Compensation Committee has
decided at this time not to take any action to limit or restructure the elements of cash compensation payable to the Company&rsquo;s
executive officers. The Compensation Committee will reconsider this decision should the individual cash non-performance based compensation
of any executive officer ever approach the $1 million level.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Board did not modify
any action or recommendation made by the Compensation Committee with respect to executive compensation for the 2011 fiscal year.
It is the opinion of the Compensation Committee that the executive compensation policies and plans provide the necessary total
remuneration program to properly align the Company&rsquo;s performance and the interests of the Company&rsquo;s stockholders through
the use of competitive and equitable executive compensation in a balanced and reasonable manner, for both the short and long term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%">&nbsp;</TD>
    <TD STYLE="width: 40%">Respectfully submitted by:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">//Charles R. Blum//</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Charles R. Blum, <I>Chairman</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Nathan Shelton</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AUDIT COMMITTEE REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Audit Committee
is currently composed of two (2) directors, Messrs. Kyte (Chairperson), and Shelton. The Board has determined that Mr. Shelton
is independent within the rules of the SEC. The duties and responsibilities of a member of the Audit Committee are in addition
to his duties as a member of the Board.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Audit Committee
operates under a written charter, which is available on the Company&rsquo;s website. The Board and the Audit Committee believe
that the Audit Committee charter complies with the current standards set forth in SEC regulations. There may be further action
by the SEC during the current year on several matters that affect all audit committees. The Board and the Audit Committee continue
to follow closely further developments by the SEC in the area of the functions of audit committees, particularly as it relates
to internal controls for non-accelerated filers, and will make additional changes to the Audit Committee charter and the policies
of the Audit Committee as required or advisable as a result of these new rules and regulations. The Audit Committee met four (4)
times during 2011 and three (3) times to date during 2012.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Audit Committee&rsquo;s
primary duties and responsibilities are to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">engage the Company&rsquo;s independent auditor;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">monitor the independent auditor&rsquo;s independence, qualifications
and performance;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">pre-approve all audit and non-audit services;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">monitor the integrity of the Company&rsquo;s financial reporting process
and internal controls system;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">provide an open avenue of communication among the independent auditor,
financial and senior management of the Company and the Board; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">monitor the Company&rsquo;s compliance with legal and regulatory requirements.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Management is responsible
for the Company&rsquo;s internal controls and the financial reporting process. The Company&rsquo;s independent auditor is responsible
for performing an independent audit of the Company&rsquo;s financial statements in accordance with the standards of the Public
Company Accounting Oversight Board and issuing a report thereon. The Audit Committee&rsquo;s responsibility is to monitor and oversee
these processes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company is planning
to form an internal management group, reporting to the Chief Executive Officer and the Audit Committee that is charged with guiding
the Company in meeting the various requirements of Section 404 of the Sarbanes-Oxley Act of 2002. The Audit Committee has begun
to implement procedures to ensure that during the course of each fiscal year it devotes the attention that it deems necessary or
appropriate to each of the matters assigned to it under its charter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In overseeing the preparation
of the Company&rsquo;s financial statements, the Audit Committee held meetings with the Company&rsquo;s independent auditors, both
in the presence of management and privately, to discuss the overall scope and plans for their audit, review and discuss all financial
statements prior to their issuance, and discuss significant accounting issues. Management advised the Audit Committee that all
financial statements were prepared in accordance with accounting principles generally accepted in the United States of America,
and the Audit Committee discussed the statements with both management and the Company&rsquo;s independent auditors. In accordance
with Section 204 of the Sarbanes-Oxley Act and the Statement on Auditing Standards (&ldquo;SAS&rdquo;) No. 61 (Communication With
Audit Committees) as amended by SAS No. 90 (Audit Committee Communications), the Audit Committee has discussed with the Company&rsquo;s
independent auditors all matters required under the Sarbanes-Oxley Act and the foregoing standards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the
Company&rsquo;s independent auditors, the Audit Committee, among other things, discussed with Weinberg &amp; Co., P.A., matters
relating to its independence, including the written disclosures made to the Audit Committee as required by the Independence Standards
Board Standard No. 1 (Independence Discussions with Audit Committees). The Audit Committee also reviewed and approved the audit
and non-audit fees of that firm.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On the basis of these
reviews and discussions, the Audit Committee (i) appointed Weinberg &amp; Co., P.A. as the independent registered public accounting
firm for the 2011 fiscal year and (ii) recommended to the Board that the Board approve the inclusion of the Company&rsquo;s audited
financial statements in the 10-K for filing with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%">&nbsp;</TD>
    <TD STYLE="width: 40%; text-align: justify">Respectfully submitted:</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">/s/ Cecil Bond Kyte</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">Cecil Bond Kyte <I>(Chairman)</I></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD STYLE="text-align: justify">Nathan Shelton</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 16(a) of the
Exchange Act requires our directors, executive officers and holders of more than 10% of a registered class of our equity securities
to file with the SEC initial reports of ownership and reports of changes in ownership of our common stock and our other equity
securities. Directors, executive officers and greater than 10% stockholders are required by SEC regulation to furnish us with copies
of all Section 16(a) reports they file. Based solely on our review of the copies of such forms received by us, if any, we believe
that all reporting requirements under Section 16(a) for the 2011 fiscal year were met in a timely manner by our directors, executive
officers and greater than 10% beneficial owners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>STOCKHOLDER PROPOSALS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">From time to time stockholders
present proposals that may be proper subjects for inclusion in a proxy statement and for consideration at an annual meeting. To
be included in the proxy statement for our 2013 annual meeting of stockholders, proposals must be received by us no later than
January 5, 2013.</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ANNUAL REPORT ON FORM 10-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We filed our Annual
Report on Form 10-K with the SEC on March 30, 2012. A copy of the 10-K, without exhibits, has been mailed to all stockholders along
with this proxy statement. Stockholders may obtain additional copies of the 10-K and the exhibits thereto, without charge, by writing
to the Corporate Secretary at our principal executive office at 735 State Street, Suite 500, Santa Barbara, California 93101.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OTHER MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Management does not
know of any matters to be presented at the 2012 Annual Meeting other than those set forth herein and in the Notice accompanying
this proxy statement. If a stockholder vote is necessary to transact any other business at the 2012 Annual Meeting, the proxy holders
intend to vote their proxies in accordance with their best judgment related to such business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">It is important that
your shares be represented at the 2012 Annual Meeting, regardless of the number of shares that you hold. <B>YOU ARE, THEREFORE,
URGED TO EXECUTE PROMPTLY AND RETURN THE ACCOMPANYING PROXY IN THE ENVELOPE THAT HAS BEEN ENCLOSED FOR YOUR CONVENIENCE.</B> Stockholders
who are present at the 2012 Annual Meeting may revoke their proxies and vote in person or, if they prefer, may abstain from voting
in person and allow their proxies to be voted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 55%">&nbsp;</TD>
    <TD STYLE="width: 45%">By Order of the Board of Directors,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">/s/ Cecil Bond Kyte</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Cecil Bond Kyte, Chief Executive Officer and Chairman</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">August 13, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Santa Barbara, California</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SAVE THE WORLD AIR, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2012 ANNUAL MEETING OF STOCKHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>September 21, 2012</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This proxy is solicited by the Board of
Directors for use at the 2012 Annual Meeting of Stockholders of Save the World Air, Inc., (the &ldquo;Company&rdquo;) to be held
at the Santa Barbara Club, 1105 Chapala Street, Santa Barbara, California 93101, at 10:00&nbsp;A.M. on September 21, 2012.&nbsp;&nbsp;By
signing the proxy, you revoke all prior proxies, acknowledge receipt of the Notice of 2012 Annual Meeting of Stockholders and the
Proxy Statement, and appoint Cecil Bond Kyte or designee with full power of substitution, to vote all your shares of common stock
of Save the World Air, Inc. which you are entitled to vote, on the matters shown on the reverse side and any other&nbsp;matters
which may come before the Annual Meeting and all adjournments and postponements thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Whether or not a choice is specified, this
proxy, when properly executed, will be voted in the discretion of the proxy holders upon such business as may properly come before
the Annual Meeting or any adjournment or postponement thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The shares of stock you hold in your account
will be voted as you specify below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THE COMPANY&rsquo;S BOARD OF DIRECTORS
RECOMMENDS A VOTE FOR THE ELECTION OF THE DIRECTORS LISTED HEREON AND A VOTE FOR PROPOSAL 2. IF NO CHOICE IS SPECIFIED, THE PROXY
WILL BE VOTED FOR THE ELECTION OF THE DIRECTORS LISTED HEREON AND FOR PROPOSAL 2.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Please mark, sign and date your proxy card
and return it today in the postage-paid envelope provided to:<B><BR>
Nevada Agency and Transfer Company<BR>
50 West Liberty Street, Suite&nbsp;880<BR>
Reno, Nevada 89501<BR>
Attention: Mary Ramsey, Proxy Department</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Fax #775-322-5623 or <FONT STYLE="color: windowtext">mary@natco.org</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Properly executed proxies may also be
faxed or e-mailed no later than 48 hours prior to meeting)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 13%; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt; font-size: 10pt"><B>1.</B>&nbsp;&nbsp;</TD>
    <TD STYLE="width: 87%; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt; font-size: 10pt; font-weight: bold">The Board of Directors recommends a vote FOR Items 1, and 2.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ELECTION OF DIRECTORS:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="width: 5%; vertical-align: top; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 4%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&#9744;</TD>
    <TD STYLE="width: 34%; vertical-align: top; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">Vote <B>FOR </B>all nominees listed</TD>
    <TD STYLE="width: 4%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 5%; vertical-align: top; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 4%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&#9744;</TD>
    <TD STYLE="width: 44%; vertical-align: top; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">Vote <B>WITHHELD </B>from all nominees</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 30%; vertical-align: top; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">01 Cecil Bond Kyte</TD>
    <TD STYLE="width: 6%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 26%; vertical-align: top; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">02 Charles R. Blum</TD>
    <TD STYLE="width: 6%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 26%; vertical-align: top; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">03 Nathan Shelton</TD>
    <TD STYLE="width: 6%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(to withhold authority to vote for any
nominee, strike a line through the nominee&rsquo;s name above)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 13%; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt; font-weight: bold">2.&nbsp;</TD>
    <TD STYLE="width: 87%; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">RATIFICATION OF APPOINTMENT OF WEINBERG &amp; CO., P.A. as independent auditors of Save the World Air, Inc. for the fiscal year ending December&nbsp;31, 2012.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="width: 10%; vertical-align: top; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 4%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;&#9744;</TD>
    <TD STYLE="width: 10%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt; font-weight: bold">FOR</TD>
    <TD STYLE="width: 4%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 10%; vertical-align: top; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 4%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;&#9744;</TD>
    <TD STYLE="width: 25%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt; font-weight: bold">AGAINST</TD>
    <TD STYLE="width: 4%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 10%; vertical-align: top; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 4%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;&#9744;</TD>
    <TD STYLE="width: 15%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt; font-weight: bold">ABSTAIN</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt; font-weight: bold">THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED AS DIRECTED OR, IF NO DIRECTION IS GIVEN, WILL BE VOTED FOR THE ELECTION OF EACH OF THE DIRECTORS LISTED HEREON AND IN FAVOR OF PROPOSAL 2, AND IN THE DISCRETION OF THE PROXY HOLDERS ON ALL OTHER MATTERS PROPERLY BROUGHT BEFORE THE MEETING.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">Date:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: #BFBFBF 1pt solid; border-bottom: windowtext 1pt solid; border-left: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt; text-align: center">Signature</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: #BFBFBF 1pt solid; border-bottom: windowtext 1pt solid; border-left: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt; text-align: center">Signature (if joint or common ownership)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt; text-align: justify">Please sign exactly as your name(s) appears on the Proxy. If held in joint tenancy, all persons must sign. Trustees, administrators, etc., should include title and authority. Corporations should provide full name of corporation and title of authorized officer signing the Proxy. If a partnership, please sign partnership name by authorized person.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="width: 47%; vertical-align: top; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">For address change: Mark Box and indicate changes below:</TD>
    <TD STYLE="width: 39%; vertical-align: bottom; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;&#9744;</TD>
    <TD STYLE="width: 14%; vertical-align: top; border: #BFBFBF 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45%; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 55%; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: -0.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>


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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
