<SEC-DOCUMENT>0001144204-16-133380.txt : 20161110
<SEC-HEADER>0001144204-16-133380.hdr.sgml : 20161110
<ACCEPTANCE-DATETIME>20161110170541
ACCESSION NUMBER:		0001144204-16-133380
CONFORMED SUBMISSION TYPE:	PRE 14A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20161110
FILED AS OF DATE:		20161110
DATE AS OF CHANGE:		20161110

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Digital Turbine, Inc.
		CENTRAL INDEX KEY:			0000317788
		STANDARD INDUSTRIAL CLASSIFICATION:	PATENT OWNERS & LESSORS [6794]
		IRS NUMBER:				222267658
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35958
		FILM NUMBER:		161988982

	BUSINESS ADDRESS:	
		STREET 1:		1300 GUADALUPE STREET
		STREET 2:		SUITE 302
		CITY:			AUSTIN
		STATE:			TX
		ZIP:			78701
		BUSINESS PHONE:		(512) 387-7717

	MAIL ADDRESS:	
		STREET 1:		1300 GUADALUPE STREET
		STREET 2:		SUITE 302
		CITY:			AUSTIN
		STATE:			TX
		ZIP:			78701

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Mandalay Digital Group, Inc.
		DATE OF NAME CHANGE:	20120207

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NeuMedia, Inc.
		DATE OF NAME CHANGE:	20100514

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Mandalay Media, Inc.
		DATE OF NAME CHANGE:	20071109
</SEC-HEADER>
<DOCUMENT>
<TYPE>PRE 14A
<SEQUENCE>1
<FILENAME>v452788_pre14a.htm
<DESCRIPTION>PRE 14A
<TEXT>
<HTML>
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     <TITLE></TITLE>
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<P STYLE="margin: 0"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Washington, D.C. 20549</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Rule 14a-101)</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 16pt"><B>SCHEDULE
14A INFORMATION</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Securities Exchange Act of 1934</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"><FONT STYLE="font-size: 10pt">Filed by the Registrant </FONT><FONT STYLE="font-family: Wingdings">x</FONT><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filed
by a Party other than the Registrant </FONT><FONT STYLE="font-family: Wingdings">&uml;</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">Check the appropriate box:</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: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">x</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Preliminary Proxy Statement</FONT></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: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>Confidential, for Use
of the Commission Only&nbsp;(as permitted by Rule 14a-6(e)(2))</B></FONT></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: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Definitive Proxy Statement</FONT></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: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Definitive Additional Materials</FONT></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: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Soliciting Material under
&sect;240.14a-12</FONT></TD>
</TR></TABLE>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Name of person(s) filing proxy statement,
if other than the registrant)</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">Payment of Filing Fee (Check the appropriate box):</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: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">x</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">No fee required.</FONT></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: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Fee computed on table below
per Exchange Act Rules 14a-6(i)(1) and 0-11.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&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">(1)</TD><TD>Title of each class of securities to which the transaction applies:</TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 93%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&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">(2)</TD><TD>Aggregate number of securities to which the transaction applies:</TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 93%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&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">(3)</TD><TD>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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 93%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&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">(4)</TD><TD>Proposed maximum aggregate value of transaction:</TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 93%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&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">(5)</TD><TD>Total fee paid:</TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 93%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">&nbsp;</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: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Fee paid previously with preliminary materials.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&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"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>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. 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 0pt 0.5in; text-indent: -0.25in">&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">(1)</TD><TD>Amount Previously Paid:</TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 93%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&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">(2)</TD><TD>Form, Schedule or Registration Statement No.:</TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 93%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&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">(3)</TD><TD>Filing Party:</TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 93%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&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">(4)</TD><TD>Date Filed:</TD></TR></TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 93%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>


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    <!-- Field: /Page -->

<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-top: 0pt; text-align: center; margin-bottom: 0pt"><B>&nbsp;<IMG SRC="logo_pre14a.jpg" ALT=""></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>NOTICE OF ANNUAL MEETING OF STOCKHOLDERS</B><BR>
<B>TO BE HELD ON JANUARY 10, 2017</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">To Our Stockholders:</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">The Annual Meeting of Stockholders (our &ldquo;Annual Meeting&rdquo;)
of Digital Turbine, Inc. will be held on Tuesday, January&nbsp;10, 2017, at 10 a.m., local time, at 11355 W. Olympic Blvd, Los
Angeles, CA&nbsp;90064 for the following purposes, as more fully described in the accompanying Proxy Statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&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">1.</TD><TD>To elect seven (7) directors to serve on our board of directors for a one-year term ending as of our Annual Meeting of stockholders
in fiscal year 2018;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&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">2.</TD><TD>To approve, in a non-binding advisory vote, the compensation of our named executive officers, commonly referred to as &ldquo;Say-on-pay&rdquo;;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&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">3.</TD><TD>To approve, in accordance with NASDAQ Marketplace Rules 5635(b) and 5635(d), the issuance of shares of our common stock issuable
upon the conversion of 8.75% Convertible Senior Notes due 2020 and exercise of warrants issued in a private placement transaction
in September 2016 ;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&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">4.</TD><TD>To approve an amendment of our restated certificate of incorporation, as amended, to effect a reverse stock split of our common
stock at a ratio to be determined by our board of directors within a specified range and a related reduction in the authorized
number of shares of our common stock, except in the case of a one-for-two reverse split ratio;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&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">5.</TD><TD>To ratify the appointment of SingerLewak LLP as our independent registered public accounting firm for the fiscal year ending
March 31, 2017; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&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">6.</TD><TD>To transact such other business as may properly come before the meeting and/or any adjournment or postponement thereof.</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">Only stockholders of record at the close of business on November
21, 2016 are entitled to notice of and to vote at our Annual Meeting. A list of stockholders as of this date will be available
during normal business hours for examination at our offices by any stockholder for any purpose relevant to our Annual Meeting for
a period of ten days prior to the Annual Meeting.</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">All stockholders are urged to attend our Annual Meeting in person
or vote by proxy. <B>YOUR VOTE IS IMPORTANT. WHETHER OR NOT YOU EXPECT TO ATTEND OUR ANNUAL MEETING IN PERSON, PLEASE SIGN AND
SUBMIT YOUR PROXY AS SOON AS POSSIBLE SO THAT YOUR SHARES CAN BE VOTED AT OUR ANNUAL MEETING IN ACCORDANCE WITH YOUR INSTRUCTIONS.</B>
The proxy is revocable at any time prior to its exercise and will not affect your right to vote in person in the event you attend
our Annual Meeting.</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%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 61%; font-size: 10pt">November [__], 2016</TD>
    <TD STYLE="width: 39%; font-size: 10pt">By order of the Board of Directors</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">Austin, Texas</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><B>William G. Stone III</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><I>Chief Executive Officer</I></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>Important Notice Regarding Availability
of Proxy Materials for the Fiscal Year 2017 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Annual Meeting of Stockholders to be
Held on January 10, 2017</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Our Proxy Statement, Annual Report on Form
10-K and as amended by Form 10-KA, and proxy card are available on the Internet at <FONT STYLE="background-color: yellow">http://www.proxyvote.com</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</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: center"><IMG SRC="logo_pre14a.jpg" ALT=""></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>1300 Guadalupe Street Suite #302</B><BR>
<B>Austin, Texas 78701</B><BR>
<B>(512) 387-7717</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FOR ANNUAL MEETING OF STOCKHOLDERS TO
BE HELD ON JANUARY 10, 2017</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>INTRODUCTION</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">This Proxy Statement contains information related to the solicitation
of proxies by and on behalf of the board of directors of Digital Turbine, Inc. (our &ldquo;Board&rdquo;) for use in connection
with our Annual Meeting of Stockholders to be held on Tuesday, January 10, 2017, beginning at 10 a.m., local time, at 11355 W.
Olympic Blvd, Los Angeles, CA&nbsp;90064, and at any and all adjournments or postponements thereof (our &ldquo;Annual Meeting&rdquo;).
At our Annual Meeting, stockholders will be asked to consider and vote upon the following proposals: (i) the election of seven
(7) directors to serve on our board of directors for a one-year term ending as of our annual meeting of stockholders in fiscal
year 2018; (ii) the approval, in a non-binding advisory vote, of the compensation of our named executive officers, commonly referred
to as &ldquo;Say-on-pay&rdquo;; (iii) the approval, in accordance with NASDAQ Marketplace Rules 5635(b) and 5635(d), the issuance
of shares of our common stock issuable upon the conversion of 8.75% convertible senior notes due 2020 (the &quot;Convertible Senior
Notes&quot;) and exercise of warrants (the &quot;Warrants&quot;) issued in a private placement transaction in September 2016; (iv)
the approval of an amendment of our certificate of incorporation, as amended, to effect a reverse stock split of our common stock
at a ratio to be determined by our Board within a specified range and a related reduction in the authorized number of shares of
our common stock based on the reverse stock split ratio, except in the case of a one-for-two reverse split ratio (the &quot;Reverse
Stock Split&quot;); (v) the ratification and appointment of SingerLewak LLP as our independent registered public accounting firm
for the fiscal year ending March 31, 2017; and (vi) the transaction of such other business as may properly come before the meeting
and/or any adjournment or postponement thereof. This Proxy Statement and the accompanying proxy card are being mailed to stockholders
on or about November&nbsp;[__], 2016.</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>INFORMATION CONCERNING SOLICITATION AND VOTING</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>Board Recommendation</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">Our Board recommends that our stockholders vote <B>FOR</B> the
election of the seven (7) director nominees (<I>Proposal 1</I>); <B>FOR</B> the advisory &ldquo;Say-on-pay&rdquo; proposal (<I>Proposal
2</I>); <B>FOR</B> approval, in accordance with NASDAQ Marketplace Rules 5635(b) and 5635(d), of the issuance of shares of our
common stock issuable upon conversion of the Convertible Senior Notes and the exercise of Warrants issued in a private placement
transaction in September 2016 (<I>Proposal 3</I>); <B>FOR</B> approval of an amendment of our certificate of incorporation, as
amended, to effect the Reverse Stock Split (<I>Proposal 4</I>); and <B>FOR</B> the ratification of SingerLewak as our independent
registered public accounting firm for the fiscal year ending March&nbsp;31, 2017 (<I>Proposal 5</I>).</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>Record Date, Outstanding Shares, and Quorum</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">Only holders of records of our common stock and our preferred
stock at the close of business on November 21, 2016 (the &ldquo;Record Date&rdquo;) are entitled to notice of and to vote at our
Annual Meeting and any adjournments thereof. As of the Record Date, [_______] shares of our common stock and 100,000 shares of
Series A preferred stock (the &quot;Preferred Stock&quot;), which are convertible into 20,000 shares of common stock, were issued
and outstanding.</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">Holders of our common stock are entitled to one vote at the
Annual Meeting for each share of common stock held that was issued and outstanding as of the Record Date. The Preferred Stock is
entitled to vote together with the common stock as a single class (on an as-converted to common stock basis) on any matters submitted
to the holders of the Company&rsquo;s common stock, together with any other voting rights provided to the Preferred Stock under
law or the General Corporation Law of the State of Delaware.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The presence, in person or by proxy, of stockholders holding
at least a majority of our outstanding common stock and Preferred Stock (on an as-converted to common stock basis), voting together
as a class, will constitute a quorum for the transaction of business at our Annual Meeting. If a quorum is not present at the Annual
Meeting, we expect that the meeting will be adjourned or postponed to solicit additional proxies. Your shares will be counted towards
the quorum only if you submit a valid proxy or vote at the Annual Meeting.</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>How to Vote</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"><B><I>Voting in Person</I></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">All stockholders as of the close of business on November 21,
2016 can attend the Annual Meeting. If you plan to attend the Annual Meeting and wish to vote in person, you will be given a ballot
at the Annual Meeting. You may vote at the Annual Meeting if you are a stockholder of record (your shares are directly registered
in your name on our books and not held through a broker, bank or other nominee). In order to vote at the Annual Meeting shares
held in &ldquo;street name,&rdquo; you must obtain a valid proxy from your broker, bank, or other nominee, and bring it to the
meeting. Follow the instructions from your broker, bank, or other nominee included with these proxy materials, or contact your
broker, bank, or other nominee to request a proxy form.</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"><B><I>Voting by Proxy</I></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">We request that our stockholders complete, date, and sign the
accompanying proxy and promptly return it in the accompanying envelope or otherwise mail it to us. All properly executed proxies
that we receive prior to the vote at the Annual Meeting (that have not been revoked) will be voted in accordance with the instructions
indicated on the proxies. All properly executed proxies that we receive prior to the vote at the Annual Meeting that do not provide
any direction as to how to vote will be voted in accordance with the recommendations of our board 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">If your shares are held in street name, you will need to obtain
a proxy form from the institution that holds your shares and follow the instructions included on that form regarding how to instruct
your broker to vote your shares.</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"><B><I>Revocation of Proxies</I></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">You can revoke your proxy at any time before your shares are
voted at the Annual Meeting by (i) sending a written notice of revocation to Corporate Secretary, Digital Turbine, Inc., 1300 Guadalupe
Street, Suite #302, Austin, TX 78701, (ii) submitting by mail, telephone or the Internet another proxy dated as of a later date,
or (iii) voting in person at the Annual Meeting. Merely attending the Annual Meeting will not revoke your proxy. All revocations
of your proxy must be received prior to the voting of your shares at the Annual Meeting. Voting in person at the Annual Meeting
will replace any previous votes submitted by proxy. If the Annual Meeting were to be postponed or adjourned, your proxy would still
be valid and will be voted at the postponed or adjourned meeting. You would still be able to revoke your proxy until it was voted.</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"><B><I>Voting Your Shares</I></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">If you complete and submit your proxy voting instructions, the
persons named as proxies will follow your instructions. If you submit your proxy voting instructions but do not direct how to vote
on each item, the persons named as proxies will vote your shares</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&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; font-size: 10pt">&middot;</FONT></TD><TD><B>FOR</B> the director nominees <I>(Proposal 1)</I>,</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD><B>FOR</B> the advisory Say-on-pay proposal <I>(Proposal 2)</I>,</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD><B>FOR</B> approval, in accordance with NASDAQ Marketplace Rules 5635(b) and 5635(d), of the issuance of shares of our common
stock issuable upon conversion of the Convertible Senior Notes and the exercise of Warrants issued in a private placement transaction
in September 2016<I>(Proposal 3)</I>,</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&nbsp;</P>


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<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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD><B>FOR</B> approval of an amendment of our certificate of incorporation, as amended, to effect the Reverse Stock Split <I>(Proposal
4)</I>, and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD><B>FOR</B> the ratification of SingerLewak as our independent registered public accounting firm for the fiscal year ending
March 31, 2017 <I>(Proposal 5)</I>.</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">The persons named as proxies will vote on any other matters
properly presented at the Annual Meeting in accordance with their best judgment. We have not received notice of other matters that
may be properly presented for voting at the Annual Meeting.</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"><B><I>Votes Required</I></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">The directors will be elected by a plurality of the voting power
of our common stock and preferred stock, voting together as a single class on an as-converted to common stock basis, present, in
person or by proxy and entitled to vote, at the Annual Meeting (<I>Proposal 1</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">The affirmative vote of a majority of the voting power of our
common stock and Preferred Stock, voting together as a single class on an as-converted to common stock basis, present, in person
or by proxy and entitled to vote, at the Annual Meeting is required to approve the advisory Say-on-pay proposal (<I>Proposal 2</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">The affirmative vote of a majority of the votes cast of our
common stock and Preferred Stock, voting together as a single class on an as-converted to common stock basis, at the Annual Meeting
is required to approve, in accordance with NASDAQ Marketplace Rules 5635(b) and 5635(d), the issuance of shares of our common stock
issuable upon conversion of the Convertible Senior Notes and the exercise of Warrants issued in a private placement transaction
in September 2016 (<I>Proposal 3</I>), and to ratify the appointment of SingerLewak as our independent registered public accounting
firm for the fiscal year ending March&nbsp;31, 2017 (<I>Proposal 5</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">The affirmative vote of a majority of the voting power of our
common and Preferred Stock, voting together as a single class on an as-converted to common stock basis, outstanding on November
21, 2016 is required to approve the Reverse Stock Split (<I>Proposal 4</I>).</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"><B><I>Withholding Your Vote, Abstentions, and Broker Non-Votes</I></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">In the election of the directors <I>(Proposal 1)</I>, you can
withhold your vote for any or all of the nominees. Withheld votes will be excluded entirely from the vote and will have no effect
on the outcome. With regard to all other proposals, you can vote to &ldquo;abstain.&rdquo; If you vote to &ldquo;abstain,&rdquo;
your shares will be counted as present at the meeting for purposes of determining whether a quorum exists, but for Proposals 2,
4 and 5 such abstention will have the effect of a vote &ldquo;AGAINST&rdquo; the proposal, and for Proposal 3 an abstention will
have no effect on the outcome.</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">A &ldquo;broker non-vote&rdquo; occurs when a broker submits
a proxy without voting on one or more of the non-routine matters. If you own shares through a bank, broker or other holder of record,
you must instruct your bank, broker or other holder of record how to vote on non-routine matters in order for them to vote your
shares so that your vote can be counted on such proposals.</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">A broker non-vote is considered present at the meeting for purposes
of determining whether a quorum exists but is not entitled to vote or counted as a vote cast on any non-routine matter presented
at the Annual Meeting. The election of directors, the advisory Say-on-pay proposal, and the proposal seeking approval, in accordance
with NASDAQ Marketplace Rules 5635(b) and 5635(d), of the issuance of shares of our common stock issuable upon conversion of the
Convertible Senior Notes and the exercise of Warrants issued in a private placement transaction in September 2016, are deemed non-routine
matters. Consequently, absent instructions from you, your broker may not vote your shares on these proposals and broker non-votes
will neither be counted toward the vote totals nor affect their outcome. <I>(Proposals 1, 2, and 3)</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">Your broker may vote your shares on the Reverse Stock Split
proposal and ratification of the appointment of our independent registered public accounting firm <I>(Proposals 4 and 5)</I>. As
a result, abstentions and broker non-votes will have the same effect as a vote &quot;AGAINST&quot; the Reverse Stock Split proposal
and ratification of the appointment of our independent public accounting firm.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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>Proxy Solicitation</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">We will bear the entire cost of solicitation of proxies from
our stockholders, including preparation, assembly, printing, and mailing of this proxy statement and the proxy card. Copies of
solicitation materials will be furnished to banks, brokerage houses, fiduciaries, and custodians holding in their names shares
of our common stock or preferred stock beneficially owned by others to forward to such beneficial owners. We may reimburse persons
representing beneficial owners of our common stock for their costs of forwarding solicitation materials to such beneficial owners.
In addition to solicitation by use of the mails, proxies may be solicited by directors, officers, employees, or agents of our company
in person or by telephone or other means of communication. No additional compensation will be paid to directors, officers, or other
regular employees of ours for such services.</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>Householding of Proxy Materials</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">&ldquo;Householding&rdquo; is a program, approved by the SEC,
which allows companies and intermediaries (e.g., brokers) to satisfy the delivery requirements for proxy statements and annual
reports by delivering only one package of stockholder proxy materials to any household at which two or more stockholders reside.
If you and other residents at your mailing address own shares of our common stock in street name, your broker or bank may have
notified you that your household will receive only one copy of our proxy materials. Once you have received notice from your broker
that they will be &ldquo;householding&rdquo; materials to your address, &ldquo;householding&rdquo; will continue until you are
notified otherwise or until you revoke your consent. If, at any time, you no longer wish to participate in &ldquo;householding&rdquo;
and would prefer to receive a separate proxy statement, or if you are receiving multiple copies of the proxy statement and wish
to receive only one, please notify your broker if your shares are held in a brokerage account. If you hold shares of our common
stock in your own name as a holder of record, &ldquo;householding&rdquo; will not apply to your shares.</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>Other Business; Adjournments </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">We do not expect that any matter other than the proposals presented
in this proxy statement will be brought before our Annual Meeting. However, if other matters incident to the conduct of the Annual
Meeting are properly presented at the Annual Meeting or any adjournment, postponement, or continuation of the Annual Meeting, the
persons named as proxies will vote in accordance with their best judgment with respect to those matters.</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">Adjournments may be made for the purpose of, among other things,
soliciting additional proxies.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROPOSAL NO. 1 </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Information Concerning Current Directors and Nominees</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">Our Board has seven (7) members, all of whose terms expire at
our Annual Meeting. All directors are nominated for reelection to a term that will expire at our fiscal year 2018 annual meeting.
Each of our nominees was nominated based on the assessment of our Nominating and Governance Committee (&ldquo;Governance Committee&rdquo;)
and our Board that he has demonstrated: an ability to make meaningful contributions to our Board; relevant business experience;
strong communication and analytical skills; a reputation for honesty and ethical conduct; excellent decision-making ability; and
good judgment. Our Board consists of, and seeks to continue to include, persons whose diversity of skills, experience and background
are complementary to those of our other 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">While management presently has no knowledge that the nominees
will refuse or be unable to serve as directors for the prescribed term, the accompanying proxy card grants the proxy holders the
power to vote the proxy for substitute nominees in the event that the nominees become unavailable to serve.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The current Board members, each of whom is a nominee, are as
follows:</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%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 26%; border-bottom: Black 1pt solid"><B>NAME</B></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 6%; border-bottom: Black 1pt solid; text-align: center"><B>AGE</B></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 66%; border-bottom: Black 1pt solid; text-align: center"><B>POSITION</B></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt">Robert Deutschman<SUP>(1)</SUP></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">59</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Chairman of the Board &amp; Nominee</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Craig I. Forman<SUP>(4)</SUP></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">55</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Current Director &amp; Nominee</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10.1pt; text-indent: -10.1pt">Jeffrey Karish<SUP>(2)</SUP></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">43</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Current Director &amp; Nominee</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Christopher Rogers<SUP>(3)</SUP></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">58</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Current Director &amp; Nominee</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10.1pt; text-indent: -10.1pt">Paul Schaeffer<SUP>(4)</SUP></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">69</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Current Director &amp; Nominee</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">William G. Stone III</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">48</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Chief Executive Officer, Current Director &amp; Nominee</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10.1pt; text-indent: -10.1pt">Mohan S. Gyani<SUP>(5)</SUP></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">65</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Current Director &amp; Nominee</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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">(1) Chairman of Audit Committee, Member of Governance Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(2) Chairman of Compensation Committee, Member of Governance
Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3) Member of Audit Committee and Compensation Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(4) Member of Audit Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(5) Member of Compensation Committee</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"><B><I>Director Nominees</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"><B><I>Robert Deutschman</I></B>. Mr.&nbsp;Deutschman joined
our Board of Directors on May&nbsp;23, 2013 and was appointed Chairman of the Board in December 2014. Mr. Deutschman joined the
Cappello Group, Inc., a merchant bank, in 1999 and has served as Vice Chairman, since 2008. Prior to joining Cappello, Mr.&nbsp;Deutschman
was a Managing Director of Saybrook Capital Corp., and a Senior Vice President at Houlihan, Lokey. Mr.&nbsp;Deutschman holds a
Bachelor of Arts degree from Haverford College, with honors, and a Juris Doctor from Columbia University School of Law, where he
was a Harlan Fiske Stone scholar. Mr.&nbsp;Deutschman served as the Vice Chairman of the Board of Directors of Enron Creditors
Recovery Corp. (formerly Enron Corp.) from 2004 to 2014, a position he assumed upon Enron&rsquo;s 2004 emergence from bankruptcy.
Mr.&nbsp;Deutschman also serves on the boards of the RAND Center for Corporate Ethics and Governance and, until October 2014 also
served on the board of the Brookfield DTLA Fund Office Trust Investor, Inc. The board of directors appointed Mr.&nbsp;Deutschman
to serve as a director based on the entirety of his experience and skills, although the board noted specifically his extensive
investment banking and financial experience and background in strategic advising, mergers and acquisitions and capital raising
for institutions and private companies.</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"><B><I>Craig Forman</I></B>. Mr. Forman joined our Board of Directors
on March 6, 2015. Mr.&nbsp;Forman previously served as the executive chairman of the board of directors of Appia until March 2015.
Mr. Forman is a private investor and entrepreneur, a former media, technology and telecommunications executive and former Wall
Street Journal bureau chief and foreign correspondent. From March 2006 to May 2009, Mr. Forman served as President of Value Added
Services and subsequently as President of Access &amp; Audience at EarthLink Inc. where he also led such shared services as Operations,
Information Technology and Customer Support. Prior to joining EarthLink, Mr. Forman was a senior executive at Yahoo Inc., where
he had served since February 2004 as head of that Internet portal company&rsquo;s Media and Information businesses. Since 2009,
Mr. Forman has served as a director on a variety of public and private company boards. Mr. Forman is currently a director of McClatchy
Co., a leading U.S. newspaper and information company (NYSE: MNI), where he was appointed to the Compensation Committee and the
Nominating and Corporate Governance Committee. Mr. Forman is also currently a director of Yellow Media Ltd. (TSE:Y), a leading
Canadian digital media and marketing solutions company, where he was appointed to the Nominating and Corporate Governance Committee.
Mr. Forman has a master&rsquo;s degree in law from Yale and an undergraduate degree from Princeton. The board of directors appointed
Mr.&nbsp;Forman to serve as a director based on the entirety of his experience and skills, although the board noted specifically
his extensive experience in media and managerial expertise.</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"><B><I>Jeffrey Karish</I></B>. Mr. Karish has been a member of
our Board of Directors since May 23, 2013. Mr. Karish is a member of the leadership team at the Heritage Group, a private holding
and investment company with an emphasis on healthcare and medical research.&nbsp;Mr. Karish was the former President of Windsor
Media LLC, subsequent to having served as the company&rsquo;s Executive Vice President and acting General Counsel with a focus
on investing and finance which included private equity funding, early stage venture capital funding and general investment management
of a significant portfolio of fixed income assets. Previously, Mr. Karish was Head of Media Strategy and Corporate Development
at Yahoo with a primary focus in strategic growth initiatives and M&amp;A. Prior to Yahoo, he was a management consultant at McKinsey
&amp; Company, and a key member of McKinsey&rsquo;s West Coast Media and Technology practice. Mr. Karish currently sits on the
board of another public company, Banc of California. Mr. Karish holds a J.D. from Harvard University, a Masters of Philosophy in
International Relations from Cambridge University, and a B.A. in History from UC Berkeley. The board of directors appointed Mr.
Karish to serve as a director based on the entirety of his experience and skills, although the board noted specifically his extensive
management and financial experience and background in strategic advising and mergers and acquisitions for companies.</P>

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


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<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"><B><I>Christopher Rogers</I></B>. Mr.&nbsp;Rogers has been a
member of our Board of Directors since May 2012. Mr.&nbsp;Rogers is a partner at Lumia Capital. Previously he has served as Senior
Vice President, Corporate Development and Spectrum, of Sprint Nextel Corporation where he evaluated and executed strategic initiatives,
including mergers, acquisitions, divestitures, equity investments and joint ventures within the mobile communication and e-commerce
sectors. He also was responsible for management and oversight of wireless spectrum licenses and Sprint Nextel&rsquo;s investment
portfolio of emerging technology start-ups. Prior to its merger with Sprint in 2005, Rogers was Co- Founder and Senior Vice President
of Nextel Communications, Inc. as well as Co-Founder of FleetCall. Communications, the predecessor to Nextel Communications, and
Founder and Chairman of Dispatch Communications, Inc., which was sold to Fleet Call/Nextel in 1993. Mr. Rogers holds a Juris Doctor
in Communications Law and has served as a Director on multiple public and private company Boards and as a Director for several
Washington, DC-based philanthropic organizations. The board appointed Mr.&nbsp;Rogers to serve as a director based on the entirety
of his experience and skills, although the Board specifically noted his extensive communications expertise, particularly in strategy,
mergers and acquisitions and licensing, and as well as his deep managerial and corporate development experience.</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"><B><I>Paul Schaeffer</I></B>. Mr.&nbsp;Schaeffer has been a
member of our Board of Directors since August 2007. He is the Vice Chairman, Chief Operating Officer and Co-Founder of Mandalay
Entertainment Group. Along with Peter Guber, Mr.&nbsp;Schaeffer is responsible for all aspects of Mandalay Entertainment Group&rsquo;s
motion picture and television business, focusing primarily on the corporate and business operations. Prior to forming Mandalay
Entertainment Group, Mr.&nbsp;Schaeffer was the Executive-Vice President of Sony Pictures Entertainment (&ldquo;SPE&rdquo;), overseeing
the worldwide corporate operations for SPE including Worldwide Administration, Financial Affairs, Human Resources, Corporate Affairs,
Legal Affairs and Corporate Communications. Mr.&nbsp;Schaeffer is a member of the Academy of Motion Pictures, Arts,&nbsp;&amp;
Sciences. A veteran of 20 years of private law practice, Mr.&nbsp;Schaeffer joined SPE from Armstrong, Hirsch and Levine, where
he was a senior partner working with corporate entertainment clients. He also spent time as an accountant with Arthur Young&nbsp;&amp;
Company in Philadelphia. He graduated from the University of Pennsylvania Law School and received his accounting degree from Pennsylvania
State University. The Company considered Mr.&nbsp;Schaeffer to be a valuable resource when it selected him as a director based
on his having served for more than 5 years as the Chairman of the Finance Committee, and a member of the Board of Trustees of Children&rsquo;s
Hospital Los Angeles, where he also served as a chairman of its Audit Committee, and member of its Compensation Committee and Executive
Committee for more than five years.</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"><B><I>William G. Stone III</I></B>. Mr.&nbsp;Stone became our
Chief Executive Officer in October 2014 and was appointed as a Director effective January 16, 2015. Previously, since November
2013, he served as the President and Chief Operating Officer of the Company. From August 2012 to November 2013, Mr.&nbsp;Stone
served as the Chief Executive Officer of the Company&rsquo;s wholly owned subsidiary, Digital Turbine, Inc. Mr.&nbsp;Stone was
previously Senior Vice President of Qualcomm Inc. and President of its subsidiary FLO TV Inc. from 2009 to 2011. Prior to Qualcomm,
Stone was the CEO and President of the smartphone application storefront provider, Handango, (acquired by Appia Inc.) from 2007
to 2009. Mr.&nbsp;Stone has extensive global experience in wireless, technology, mobile content, marketing and distribution, having
held executive positions at several operators such as Verizon, Vodafone, and AirTouch. Mr.&nbsp;Stone has a BA and MBA from Rice
University.</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"><B><I>Mohan S. Gyani</I></B>. Mr.&nbsp;Gyani joined our Board
of Directors in January 2016. Mr.&nbsp;Gyani is a private investor and beginning in 2005, has served in various capacities, the
most recent of which is vice chairman, at Mobileum Inc., which designs and develops roaming services and telco big data analytics
solutions to mobile network operators in the United States and internationally. From 2000 to 2003, Mr. Gyani served as president
and chief executive officer of AT&amp;T Wireless Mobility Services, Inc., a telecommunications company, and as senior advisor to
the chairman and chief executive officer through 2004. From 1995 to 1999, Mr. Gyani was executive vice president and chief financial
officer of AirTouch Communications, Inc., a wireless telephone service provider. Upon the acquisition of AirTouch by Vodafone,
Mr. Gyani served as executive Director on the Board of Vodafone AirTouch and as its head of strategy and M&amp;A until July 1999.
Prior to AirTouch Communications, Mr. Gyani spent 15 years with Pacific Telesis Group, Inc., parent of Pacific Bell, a telecommunications
company, where he held various financial and operational positions. Currently, Mr. Gyani serves on the board of directors of Blackhawk
Network Holdings, Inc. (Nasdaq: Hawk), a provider of prepaid payments products. He also serves on the board of directors of IDEA
Cellular, a wireless service provider, and MUFG Union Bank, N.A and its financial holding company, MUFG Americas Holdings Corporation,
as well as the boards of other private companies that are in the wireless mobile space. Previously, from March 2011 to July 2015,
Mr. Gyani served as a director of Audience, Inc., a provider of intelligent voice and audio solutions, and as chairman from August
2011 to July 2015; from June 2007 to June 2010, he served on the board of directors of Mobile Telesystems, Inc., a cell phone operator;
from March 2002 to August 2013, he served on the board of directors of Keynote Systems, Inc., a mobile and web cloud testing and
monitoring company; and from October 2004 to February 2015, he served on the board of directors of Safeway, Inc., a retail food
and drug company. Mr. Gyani holds a B.A. and an M.B.A. from San Francisco State University. The board of directors appointed Mr.
Gyani to serve as a director based on the entirety of his experience and skills, although the board noted specifically his broad
knowledge of the wireless industry, extensive industry relationships, and deep experience serving on public and private company
boards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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>Required Vote</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">Directors are elected by a &ldquo;plurality&rdquo; of the voting
power of our common stock and Preferred Stock, voting together as a single class on an as-converted to common stock basis. Plurality
means that the nominee with the largest number of votes is elected, up to the maximum number of directors to be chosen (in this
case, seven directors). Stockholders can either vote &ldquo;FOR&rdquo; the nominee or withhold authority to vote for the nominee.
However, shares that are withheld will have no effect on the outcome of the election of directors. Broker non-votes also will not
have any effect on the outcome of the election of the 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: center; border: Black 1pt solid"><B>THE BOARD OF
DIRECTORS RECOMMENDS THAT STOCKHOLDERS VOTE &ldquo;<U>FOR</U>&rdquo; EACH OF THE ABOVE NAMED DIRECTOR NOMINEES.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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; text-align: center"><B>BOARD MEETINGS AND COMMITTEES</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">During fiscal year 2016, our Board held 11 meetings. Our Board
has three separately designated committees: our Audit Committee, our Compensation Committee, and our Nominating and Governance
Committee. Each member of these standing committees has been determined to meet the standards for director independence under the
rules of the Securities and Exchange Commission (the &ldquo;SEC&rdquo;) and is an &ldquo;independent director&rdquo; as defined
under NASDAQ listing standards.</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">Each committee has the power to engage independent legal, financial
or other advisors, as it may deem necessary, without consulting or obtaining the approval of our Board or any of our officers.
Each then-director attended, either in person or by electronic means, 75% or more of the aggregate of (i) the total number of meetings
of our Board and (ii)&nbsp;the total number of meetings held by all committees of our Board on which such director served during
the 2016 fiscal year.</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>Committees of the Board of Directors</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"><B><I>Audit Committee</I></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">The current members of our Audit Committee are Robert Deutschman
(Chairman), Paul Schaeffer, Christopher Rogers, and Craig Forman. Our Audit Committee held five meetings during the 2016 fiscal
year and is primarily responsible for hiring our independent auditors, approving the services performed by our independent auditors
and reviewing their reports regarding our accounting practices and systems of internal accounting controls. Our Board determined
that each of our Audit Committee members is &ldquo;independent&rdquo; pursuant to the rules of The NASDAQ Stock Market and SEC
rules and that Mr. Deutschman is an &ldquo;audit committee financial expert&rdquo; as defined by applicable SEC rules. The Audit
Committee acts pursuant to a written charter adopted by our Board, which is available on our website at http://ir.digitalturbine.com/governance-documents.</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"><B><I>Compensation Committee</I></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">The current members of our Compensation Committee are Jeffrey
Karish, Christopher Rogers and Mohan Gyani. Our Compensation Committee held four meeting during the 2016 fiscal year, and is primarily
responsible for reviewing and approving our general compensation policies and setting both the cash and non-cash compensation levels
for our executive officers. Our Compensation Committee also has the authority to administer our employee stock purchase plan and
our stock incentive plan and to make option grants under our stock incentive plan. Our executive officers do not perform any role
in determining or recommending the amount or form of executive or director compensation; however, as a member of our Board, our
Chief Executive Officer reviews and participates in compensation decisions of executive officers other than himself. During fiscal
year 2016, the Compensation Committee consulted with a compensation consultant for background information as to general compensation
levels currently being offered in our industry. For further information about the compensation consultant and its services, see
&quot;Role of the Compensation Consultant&quot; in the Compensation Discussion and Analysis under Executive Compensation.</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">All members of the Compensation Committee are non-employee directors
and are &ldquo;independent&rdquo; pursuant to the rules of The NASDAQ Stock Market. The Compensation Committee acts pursuant to
a written charter adopted by our Board, which is available on our website at http://ir.digitalturbine.com/governance-documents.</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"><B><I>Governance and Nominating Committee</I></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">The current members of our Governance Committee are Robert Deutschman
and Jeffrey Karish. Our Governance Committee held one meeting during the 2016 fiscal year. Our Governance
Committee annually screens and recommends to the Board-qualified candidates for election or appointment to our Board, recommends
the number of members of our Board, and evaluates and reviews the independence of existing and prospective directors. The members
of the Governance Committee are non-employee directors and are &ldquo;independent&rdquo; directors under the rules of The NASDAQ
Stock Market. The Nominating Committee acts pursuant to a written charter adopted by our Board, which is available on our website
at <U>http://ir.digitalturbine.com/governance-docs</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></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; text-align: center"><B>CORPORATE GOVERNANCE</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>Board Leadership Structure</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">The roles of Chairman and Chief Executive Officer are held by
different individuals. Our Board believes that this structure provides an efficient and effective leadership model for our Company,
facilitates efficient and open communication between our directors and management team, and helps to involve our other independent
Board members in Board activities and decision making.</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>Role of the Board of Directors in Risk Oversight</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">One of the responsibilities of our Board is to review and evaluate
the process used to assess major risks facing our Company and to periodically review assessments prepared by our senior management
of such risks, as well as options for their mitigation. Frequent interaction between our directors and members of senior management
assist in this effort. Communications between our Board and senior management regarding long-term strategic planning and short-term
operational practices include matters of material risk inherent in our 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">Our Board also plays an active role, as a whole and at the committee
level, in overseeing management of our risks. Our entire Board is formally apprised at least annually of our enterprise risk management
efforts. Our Board regularly reviews information regarding our credit, liquidity and operations, as well as the risks associated
with each. Our Audit Committee is responsible for overseeing the management of financial and accounting risks. Our Compensation
Committee is responsible for overseeing the management of risk-taking relating to executive compensation plans and arrangements.
While each committee is responsible for the evaluation and management of such risks, our entire Board is regularly informed through
committee reports.</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>Code of Business and Ethical Conduct</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">The Board has established a corporate Code of Conduct which
qualifies as a &ldquo;code of ethics&rdquo; as defined by Item 406 of Regulation S-K of the Exchange Act and applies to the Company&rsquo;s
principal executive officer, principal financial officer, principal accounting officer and all other officers, directors, and employees.
Among other matters, the Code of Conduct is designed to deter wrongdoing and to promote:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&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; font-size: 10pt">&middot;</FONT></TD><TD>honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and
professional relationships;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>full, fair, accurate, timely and understandable disclosure in our SEC reports and other public communications;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>compliance with applicable governmental laws, rules and regulations;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>prompt internal reporting of violations of the Code of Conduct to appropriate persons identified in the code; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>accountability for adherence to the Code of Conduct.</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">A full text of our Code of Conduct is published on our website
at http://ir.digitalturbine.com/ under the tab &ldquo;Investor Info.&rdquo; If we amend our Code of Conduct as it applies to the
principal executive officer, principal financial officer, principal accounting officer or controller (or persons performing similar
functions) or grant a waiver from any provision of the Code of Conduct to any such person, we shall disclose such amendment or
waiver on our website at http://ir.digitalturbine.com/governance-docs.</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>Director Independence</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">Our Board annually reviews and determines the independence of
each director and nominee for election as a director in accordance with the independence standards set forth in the NASDAQ Stock
Market Marketplace Rules. Based on these standards, our Board determined that each of Robert Deutschman, Craig Forman, Jeffrey
Karish, Christopher Rogers, Paul Schaeffer and Mohan Gyani, who collectively constitute a majority of our Board, is independent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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>Related Party Transactions</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"><B><I>Sift Transactions</I></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">On December 28, 2015, the Company&rsquo;s wholly-owned subsidiary,
Digital Turbine Media, Inc., (&ldquo;DTM&rdquo;) (f/k/a Appia, Inc., f/k/a PocketGear, Inc.), entered into a license with respect
to certain of DTM&rsquo;s intellectual property assets described below (the &ldquo;License Agreement&rdquo;) with Sift Media, Inc.
(&ldquo;Sift&rdquo;), in exchange for shares of Sift&rsquo;s newly-issued Preferred Stock (as hereinafter defined) pursuant to
a Stock Purchase Agreement (the &ldquo;Stock Purchase Agreement&rdquo;) and a cash payment. At the same time, DTM also entered
into a publishing agreement with Sift (the &ldquo;Publishing Agreement&rdquo;), as well as certain other ancillary agreements,
all as described below. Sift was formed by Jud Bowman, a former director of the Company until Janaury 2016. Mr. Bowman is Sift&rsquo;s
President, Chief Executive Officer and one of its significant shareholders. The License Agreement, the Stock Purchase Agreement,
the Publishing Agreement, the ancillary agreements and the transactions contemplated thereby are referred to as the &ldquo;Sift
Transactions&rdquo;. The Sift Transactions were unanimously approved by the independent and disinterested members of the Company&rsquo;s
Board other than Mr. Bowman.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>License Transaction</I>. The Licensed Assets (as hereinafter
defined) were originally acquired as part of the Company&rsquo;s merger with Appia, Inc. (&ldquo;Appia&rdquo;) earlier in 2015,
and relate to development-stage real-time bidding technology, an ancillary part of Appia&rsquo;s (now DTM&rsquo;s) advertising
business. Pursuant to the License Agreement, DTM has granted to Sift an irrevocable, non-exclusive and royalty-free license to
its real-time bidder and certain other technology needed to operate the core real-time bidding assets (collectively, the &ldquo;Licensed
Assets&rdquo;). In consideration of the license to Sift, DTM will receive $1,000,000, in cash, 9.9% of the authorized and issued
shares of Sift in the form of Series Seed Convertible Preferred Stock (the &ldquo;Preferred Stock&rdquo;) a seat on the board of
directors of Sift and a variety of other rights referenced below.</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">Pursuant to the License Agreement, DTM&rsquo;s license of the
Licensed Assets to Sift is perpetual. DTM agreed that it will not license or sell the core real-time bidding assets to any third
parties for any purpose (except in connection with a Change of Control (as defined in the License Agreement) of the Company or
DTM), and DTM will not license or sell certain related but non-core licensed assets to any third parties (except in connection
with a Change of Control of the Company or DTM) within the field of the programmatic advertising business. Notwithstanding the
foregoing limitations on licensing or selling of the core real-time bidding assets and non-core licensed assets, DTM can use any
of the Licensed Assets for its own purposes. DTM currently has, and intends to continue, its real-time bidding operations. Each
party owns any developments or improvements that each such party may make in the future with respect to the Licensed Assets.</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">DTM is providing certain warranties and indemnities to Sift
regarding the Licensed Assets, subject to various limitations, as detailed in the License Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Publisher Agreement</I>. Pursuant to the Publisher Agreement,
DTM and Sift (as publisher) will enter into DTM&rsquo;s standard form of Publisher Agreement for a term of one year, subject to
certain exclusivity and matching provisions. Sift is obligated for such period to use DTM as the exclusive provider of advertising
that is available through DTM as set forth in the Publisher Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Stock Purchase Agreement</I>. The Company received 9.9% of
Sift&rsquo;s capital stock in the form of newly-issued Preferred Stock, which is convertible into Sift Common Stock (&ldquo;Common
Stock&rdquo;) under certain circumstances, and is redeemable upon the fifth (5th) anniversary of issuance of the Preferred Stock
by the holders of a majority of the Preferred Stock. For so long as it holds Preferred Stock, DTM shall be entitled to nominate
for election one member of the five-member Board of Sift. At Closing (as defined in the Stock Purchase Agreement), the DTM nominated
director will be William Stone. The Preferred Stock as a class has a variety of other rights, preferences and privileges typically
associated with early-stage preferred stock, including a liquidation preference of $1.00 per share and certain veto rights. DTM
received 999,000 shares of Preferred Stock. Sift sold and issued an additional 3,190,000 shares of its Series Seed Preferred Stock
to other investors led by Wakefield Group IV, LLC for a total cash consideration of $3,190,000.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the Stock Purchase Agreement, Sift issued the Preferred
Stock to DTM and other accredited and institutional investors pursuant to a private placement exempt from the registration requirements
of applicable securities laws. Mr. Bowman serves as Sift&rsquo;s President and Chief Executive Officer and, upon Sift&rsquo;s formation,
entered into an agreement to receive 5,311,000 shares of restricted Sift Common Stock, representing in the aggregate approximately
53% of Sift&rsquo;s fully-diluted capital stock immediately following the sale of the Series Seed Preferred Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Ancillary Agreements</I>. Pursuant to an Employment Agreement
and related Restricted Stock Agreement, Sift has agreed to employ Mr. Bowman as President and Chief Executive Officer of Sift for
an initial term of three (3) years subject to renewal. Mr. Bowman&rsquo;s base salary is $200,000 per annum with discretionary,
performance-based targeted bonuses of up to 50% of base salary and full participation in Sift&rsquo;s benefit plans. Mr. Bowman
purchased 5,311,000 restricted common shares, which rank beneath the Preferred Stock, at an aggregate price of approximately $60,000.
The restricted shares are subject to a Sift repurchase option at the original purchase price if his employment is terminated for
any reason on or before December 28, 2019. The repurchase option expires on an accelerated basis if he is terminated Without Cause
or for Good Reason (as such terms are defined in the Employment Agreement) as follows: (i) 25% expires if he is terminated prior
to the 6-month anniversary from the effective date; and (ii) 50% expires if he is terminated after the 6-month anniversary from
the effective date if such repurchase option then applies to less than 50% of the restricted shares after passage of time. In addition,
100% of the repurchase option expires upon a &ldquo;Change of Control.&rdquo; Mr. Bowman also is eligible for severance in the
event of termination Without Cause or for Good Reason (as such terms are defined in the Employment Agreement), and is subject to
certain in-term and post-term restrictive covenants, including post-term non-competition and non-solicitation covenants for a period
of 18 months. Mr. Bowman remains a Digital Turbine, Inc. director. Concurrent with the Employment Agreement, Mr. Bowman has entered
into Sift&rsquo;s standard Non-Disclosure, Non-Solicitation and Inventions Assignment Agreement.</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">Pursuant to an Investor Rights Agreement, the holders of Preferred
Stock (including DTM), together with certain Key Holders (as hereinafter defined), are accorded certain registration rights, preemptive
rights, information rights and other customary provisions. The Investor Rights Agreement includes other customary provisions including
preemptive rights, registration rights, financial information rights and a 180-day market standoff provision. In addition, the
Investor Rights Agreement terminates certain of DTM&rsquo;s rights in the event of certain limited, willful and material breaches
by DTM of the License Agreement.</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">In addition, pursuant to a Right of First Refusal and Co-Sale
Agreement, any proposed transfer of Common Stock by the key holders of such shares (including Mr. Bowman) (the &ldquo;Key Holders&rdquo;)
shall require notice to Sift and each of the holders of Preferred Stock; such agreement provides Sift and then the holders of Preferred
Stock certain rights of first refusal to acquire the Key Holders&rsquo; shares proposed to be transferred, subject to certain exclusions,
and certain co-sale rights, after customary notice and exercise periods, and to participate in any sale by the Key Holders to any
third party upon the same economic terms to which all or a portion of the Key Holders&rsquo; shares are subject. In addition, the
Right of First Refusal and Co-Sale Agreement terminates certain of DTM&rsquo;s rights in the event of certain limited, willful
and material breaches by DTM of the License Agreement.</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">A Voting Agreement sets forth certain voting rights and obligations
of the holders of Common Stock and Preferred Stock. Under the Voting Agreement, the holders of Common Stock and Preferred Stock
are required to vote their shares to elect five (5) directors of Sift as follows: (i) one director nominated by Wakefield Group
IV, LLC, (ii) one director nominated by DTM, (iii) two directors nominated by a majority of the Key Holders, each of whom shall
be independent of Mr. Bowman so long as he continues to serve as President and Chief Executive Officer, and (iv) one director who
shall be the &ldquo;CEO director.&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">The Voting Agreement includes other customary provisions including
an irrevocable proxy, a change of control provision for a sale of Sift and termination upon underwritten public offering or sale
of Sift. In addition, the Voting Agreement terminates certain of DTM&rsquo;s rights in the event of certain limited, willful and
material breaches by DTM of the License Agreement.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the Transition Services Agreement, DTM has agreed
to provide Sift limited transition services for a period of 90 days following the Closing (as such term is defined in the Transition
Services Agreement) in connection with the Sift Transactions for certain fees and reimbursement of certain out-of-pocket costs.</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>Stockholder Nominations and Bylaw Procedures</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">The Governance Committee does not have a specific written policy
or process regarding the nominations of directors, nor does it maintain minimum standards for director nominees. However, the Governance
Committee does consider the knowledge, experience, integrity and judgment of potential candidates for nominations to the Board.
The Governance Committee will consider persons recommended by stockholders for nomination for election as directors. The Governance
Committee will consider and evaluate a director candidate recommended by a stockholder in the same manner as a committee-recommended
nominee.</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">To nominate a person for election to our Board, a stockholder
must set forth all information relating to the nominee that is required to be disclosed in solicitations of proxies for election
of directors, or is otherwise required, in each case pursuant to Regulation 14A under the Securities Exchange Act of 1934. Such
notice must also contain information about the stockholder making the nomination and the beneficial owner, if any, on behalf of
whom the nomination is made, including name and address, class and number of shares owned, and representations regarding the intention
to make such a nomination and to solicit proxies in support of it. We may require any proposed nominee to furnish information concerning
his or her eligibility to serve as an independent director or that could be material to a reasonable stockholder&rsquo;s understanding
of the independence of the nominee.</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"><B><I>Deadlines to Submit Nominations</I></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">Stockholders wishing to recommend director candidates must follow
the prior notice requirements as described under &quot;2018 Stockholder Proposals&quot; below. Stockholder nominations must be
addressed to Corporate Secretary, Digital Turbine, Inc., 1300 Guadalupe Street Suite #302, Austin, TX 78701.</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>Executive Sessions of Independent 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">The independent members of our Board meet in executive session,
without any employee directors or other members of management in attendance, at least annually and additionally, as circumstances
warrant.</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>Stockholder Communication with Board Members </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">We maintain contact information for stockholders, both telephone
and email, on our website (http://www.digitalturbine.com) under the heading &ldquo;Investor Info&rdquo; where a stockholder will
find our telephone number and mailing address as well as a link for providing email correspondence to Investor Relations. Communications
sent to Investor Relations and specifically marked as a communication for our Board will be forwarded to our Board or specific
members of our Board as directed in the stockholder communication. In addition, communications for our Board received via telephone
or mail are forwarded to our Board by one of our employees.</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>Board Member Attendance at Annual Meetings </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">Our Board does not have a formal policy regarding attendance
of directors at our annual stockholder meetings. William Stone, Robert Deutschman, Christopher Rogers and Craig Forman attended
our fiscal year 2016 annual meeting of stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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; text-align: center"><B>EXECUTIVE OFFICERS</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">The following table sets forth certain information regarding
our current executive officers who are not also members of the Company's Board as of the date of this proxy statement:</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%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 23%; border-bottom: Black 1pt solid"><B>NAME</B></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 6%; border-bottom: Black 1pt solid; text-align: center"><B>AGE</B></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 69%; border-bottom: Black 1pt solid; text-align: center"><B>POSITION</B></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">William G. Stone III</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">48</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Chief Executive Officer, Current Director &amp; Director Nominee</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 10pt; text-indent: -10pt">Barrett Garrison</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">40</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Executive Vice President, Chief Financial Officer</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">David Wesch</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">30</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Acting Chief Accounting Officer and Controller</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">Biographical information regarding Mr. Stone is set forth above
under &ldquo;Election of Directors (<I>Proposal 1</I>) &ndash; Information Concerning Current Directors and Nominees.&rdquo;</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"><B><I>Barrett Garrison</I></B>. Mr. Garrison became our Executive
Vice President and Chief Financial Officer on September&nbsp;12, 2016. Prior joining the Company, Mr. Garrison was the Chief Financial
Officer of Competitor Group, Inc., a media and event company in the active lifestyle industry, from March 2014 to March 2015; the
Chief Financial Officer of Netspend, a division of TSYS Company (NYSE: TSS), a leading provider of reloadable prepaid debit cards,
from June 2013 to March 2014, and the Treasurer/VP of Finance from October 2008 to June 2013. Prior to his Netspend position, Mr.
Garrison served in senior financial roles at Dell Financial Services, Seiko Instruments International and Austaco, Inc. Mr. Garrison
has a Master of Business Administration with a concentration in Finance from St. Edwards University and a Bachelor of Business
Administration in Finance from The University of New Mexico, Robert O. Anderson School of Management.</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"><B><I>David Wesch</I></B>. Mr. Wesch became our Acting Chief
Accounting Officer and Controller on June 14, 2016. Mr. Wesch has been the Accounting and SEC Financial Reporting Manager of the
Company since May 2015. Prior to joining the Company, Mr. Wesch was a Manager at BDO USA, LLP, where he managed audits of both
large public and private companies since May 2010. Mr. Wesch is a Certified Public Accountant with over six years of experience
spanning public accounting and various industries, including technology, manufacturing, and oil and gas, with a focus primarily
on technology. Mr. Wesch holds Bachelor and Master&rsquo;s degrees in Accounting, from The McCombs School of Business at The University
of Texas at Austin.</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"><B>&nbsp;</B></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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>COMPENSATION DISCUSSION AND ANALYSIS </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>Compensation Philosophy and Objectives</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">We believe that a strong management team comprised of highly
talented individuals in key positions is critical to our ability to deliver sustained growth and profitability, and our executive
compensation program is an important tool for attracting and retaining such individuals. We also believe that our most important
resource is our people. While to a certain extent we are able to exploit unique assets or proprietary technologies, we depend fundamentally
on the skills, energy and dedication of our employees to drive our business. It is only through their constant efforts that we
are able to innovate through the creation of new products, to maintain superior operating efficiencies, and to develop and exploit
marketing channels. With this in mind, we have consistently sought to employ the most talented, accomplished and energetic people
available in the industry. Therefore, we believe it is vital that our named executive officers receive an aggregate compensation
package that is both highly competitive with the compensation received by similarly-situated executive officers at peer group companies,
and also reflective of each individual named executive officer&rsquo;s contributions to our success on both a long-term and short-term
basis.</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">We seek to have compensation programs for our named executive
officers that are intended to achieve a variety of goals, including, but not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&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>attracting and retaining talented and experienced executives;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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>motivating and fairly rewarding executives whose knowledge, skills and performance are critical to our success; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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>providing fair and competitive compensation.</TD></TR></TABLE>

<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>Administration and Process</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">Our executive compensation program is administered by the Compensation
Committee. The Compensation Committee receives legal advice from our outside general counsel and may also engage compensation consultants.
Historically, base salary, bonus structure and long-term equity compensation of our executive officers are governed by the terms
of their individual employment agreements (see &ldquo;Narrative Disclosure to Summary Compensation Table&rdquo;) and we expect
that to continue in the future. With respect to our chief executive officer and chief financial officer, the Compensation Committee
establishes milestone performance levels for incentive bonuses based on a number of factors that are designed to further our executive
compensation objectives, including our performance, the compensation received by similarly-situated executive officers, and the
conditions of the markets in which we operate.</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">In determining executive compensation for fiscal year 2016,
the Compensation Committee&rsquo;s goal was to reward the named executive officers for an increase in their respective responsibilities,
and Company-wide and individual performance. We believe that this policy is intended to assure that our compensation practices
are competitive with those in the industry. The Compensation Committee also periodically reviews the overall compensation of our
named executive officers for the purpose of determining whether discretionary bonuses should be granted. Our chief executive officer
may also assist the Compensation Committee in determining compensation for the other named executive officers.</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>Elements of Executive Officer Compensation </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"><B><I>Overview</I></B><I>.</I> The compensation packages for
the Company&rsquo;s senior executives have both performance-based and non-performance based elements. Total compensation paid to
our executive officers is divided among three principal components. Base salary is generally fixed and does not vary based on our
financial and other performance. Other components, such as cash bonuses and stock options or other equity or equity-based awards,
are variable and dependent upon our market performance. Our policy is to generally emphasize long-term equity awards over short-term
cash bonuses, as the long-term awards are intended to align with goals such as total shareholder return. Historically, judgments
about these elements have been made subjectively. In the case of stock options, the value is dependent upon our future stock price
and, accordingly, such awards are intended to reward the named executive officers for favorable Company-wide performance.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Compensation Committee has negative discretion to adjust
performance results used to determine annual incentive and the vesting schedule of long-term incentive payouts to the named executive
officers. The Compensation Committee also has discretion to grant bonuses even if the performance targets were not met.</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">Our Compensation Committee may review total compensation to
see if it generally falls in line with peer companies and may also look at overall market data. The Compensation Committee engaged
a compensation consultant for the fiscal year ended March 31, 2016. During fiscal year 2016, the Compensation Committee considered
compensation, including termination provisions and potential payments upon termination or change in control, that would make it
possible to hire and retain executive officers for the Company.</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"><B><I>Role of Compensation Consultant.</I> </B>For fiscal year
2016, the Compensation Committee engaged a professional compensation consultant, Mercer, an industry leading global human resources
consulting firm to provide advice and assist the Compensation Committee in (i) reviewing and analyzing compensation of the chief
executive officer and chief financial officer and Board of Director compensation and (ii) reviewing and analyzing market data related
to our executive officers' base salaries and total cash and direct compensation, including short-term and long-term incentive awards.
Mercer reported directly to the Compensation Committee and did not provide any services to the Company or its management in fiscal
year 2016 other than those provided to the Compensation Committee described above. The Compensation Committee considered factors
relevant to Mercer&rsquo;s independence, such as other services provided by and fees paid to Mercer.</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">Pursuant to its review, Mercer reviewed from its 2014 executive
remuneration survey high-tech organizations with revenue less than $325 million, publicly traded organizations with revenues less
than $225 million and all organizations with revenues between $15 million and $60 million, noting that high-tech and publicly traded
organizations are larger than the Company. Mercer assessed that the Company&rsquo;s total direct executive compensation was generally
with the median of high-tech organizations, below the median of publicly traded organizations and above the 75th percentile of
the $15 to $60 million revenue market. Mercer recommended implementing annual equity incentive awards to strengthen the linkage
between executive compensation and long-term organizational performance.</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"><B><I>Base Salary.</I></B> We pay our executives a base salary
pursuant to the terms of employment agreements, which are usually two years. We believe that a competitive base salary is a necessary
element of any compensation program. Base salaries are established, in part, based on the executive&rsquo;s individual position,
responsibility, experience, skills, historic salary levels and the executive&rsquo;s performance during the prior year. We are
also seeking over a period of years to align base compensation levels comparable to our competitors and other companies similarly
situated. We do not view base salaries as primarily serving our objective of paying for performance.</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">For fiscal year 2016, Mr. Stone's annual salary remained at
$500,000, which is based on his employment agreement dated September 9, 2014 that he entered into in connection with his appointment
as chief executive officer. We believe that his salary continues to be commensurate with his responsibilities. On November 1, 2015,
the annual salary for Mr. Schleimer, our former Chief Financial Officer, was increased from $300,000 to $400,000 for purposes of
retention and based on Mr. Schleimer&rsquo;s continuing contributions to the Company&rsquo;s performance. Effective September 12,
2016, Mr. Schleimer resigned from the Company, and on August 31, 2016, the Company entered into an employment agreement with Barrett
Garrison as Executive Vice President and Chief Financial Officer pursuant to which he received an annual salary of $300,000.</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">We believe that our salary levels are sufficient to retain our
existing executive officers and hire new executive officers when and as required.</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"><B><I>Performance Bonuses</I></B><I>.</I> Consistent with our
emphasis on pay-for-performance incentive compensation programs, our executives are eligible to receive cash incentive bonuses
primarily based upon their performance during the fiscal year. Historically, a factor given considerable weight in establishing
bonus performance criteria is non-GAAP adjusted EBITDA, which is GAAP net loss excluding the following cash and non-cash expenses:
interest expense, foreign transaction gains (losses), debt financing and non-cash related expenses, debt discount and non-cash
debt settlement expense, gain or loss on extinguishment of debt, income taxes, asset impairment charges, depreciation and amortization,
stock-based compensation expense, change in fair value of derivatives, and fees and expenses related to acquisitions. The use of
this and other performance measures is further described below under &ldquo;Narrative Disclosure to Summary Compensation Table<I>.</I>&rdquo;</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Alejandro, the Company&rsquo;s former Chief Accounting Officer
and Controller, received a bonus during the 2016 fiscal year based on achievement, as determined by the Company, of the implementation
and progress of certain actions related to the Company&rsquo;s financial controls. Mr. Schleimer received a bonus during the 2016
fiscal year based on the following types of personal performance criterion: finance/accounting team enhancements, treasury functions,
closing enhancements, equity capital management, and earnings release enhancements. The Compensation Committee determined whether
substantial progress had been achieved toward ultimate completion of such criterion, in light of all factors deemed relevant by
the committee, including a good faith determination, after discussion with Mr. Schleimer, of the time and resources available.
See &quot;Summary Compensation Table&quot; for details on bonuses earned by our 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">Pursuant to his employment agreement, Mr. Garrison, is eligible
to receive a bonus based on corporate performance criteria, and personal performance criteria in the discretion of the Compensation
Committee. The corporate performance criteria are, for the remainder of the current fiscal year ended March 31, 2017, based on
previously budgeted Company revenue and Adjusted EBITDA targets. A similar structure applies for the balance of the term of the
Agreement, except that the Compensation Committee may use, instead of Adjusted EBITDA, a different measure that it determines to
be the most important earnings measure used publicly by the Company (for example, EBITDA without adjustment), and will also determine
the target level of revenue and of such earnings measure. The Compensation Committee will first consult with Mr. Garrison prior
to making such determinations.</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"><B><I>Equity and Equity-Based Compensation</I></B><I>.</I> We
believe that stock options and other forms of equity or equity-based compensation are an important long-term incentive for our
executive officers and other employees and generally align officer interest with that of our stockholders. They are intended to
further our emphasis on pay-for-performance.</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">For fiscal year 2016 service and performance, we granted to
Mr. Stone and Mr. Schleimer stock options to purchase an aggregate of 175,000 and 105,000, respectively, shares of our common stock
with a grant date fair value of $213,500 and $128,100. In addition, we granted to Mr. Alejandro stock options to purc<FONT STYLE="background-color: white">hase
50,000 and 35,000 shares of our common stock, having a grant date fair value of $59,600 and $42,700, respectively. Since Mr. Alejandro&rsquo;s
departure from the Company in June 2016, all of his options have expired. </FONT>In connection with Mr. Schleimer's resignation
on September 12, 2016, of the 60,000, 300,000, and 105,000 stock option grants, 0, 137,500, and 105,000, respectively, were cancelled.
The remainder are exercisable until December 12, 2016.&nbsp;<FONT STYLE="background-color: white">In connection </FONT>with Mr.
Garrison&rsquo;s appointment, he received options for 450,000 shares of common stock, with a grant date fair value of $435,150,
that vest over a three year term as follows: 150,000 on the first anniversary of September 12, 2016, his start date, then 12,500
shares on a monthly basis for the following two years (three year total vesting). We believe that the grant of Mr. Garrison&rsquo;s
options continues to be consistent with the long-term incentive compensation for 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">We do not have any formal plan or obligation that requires us
to grant equity or equity-based compensation to any executive officer on specified dates. The authority to make equity or equity-based
grants to our executive officers rests with our full Board of Directors based upon recommendations made by the Compensation Committee
or by the Compensation Committee acting alone. The Committee considers the input of our chief executive officer in setting the
compensation of our other executive officers, including in the determination of appropriate levels of equity or equity-based grants.</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"><B><I>Other Benefits and Perquisites</I> </B>Our executive officers
participate in the health and dental coverage, life insurance, paid vacation and holidays, 401(k) retirement savings plans and
other programs that are generally available to all of the Company&rsquo;s employees.</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">The provision of any additional perquisites to each of the named
executive officers is subject to review by the Compensation Committee. Historically, these perquisites include payment of an automobile
allowance and matching contributions to a 401(k) defined contribution plan. In 2015, the named executive officers were granted
the following perquisites: 401(k) plan matching contribution. We value perquisites at their incremental cost to us in accordance
with SEC regulations.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We believe that the benefits and perquisites we provide to our
named executive officers are within competitive practice and customary for executives in key positions at comparable companies.
Such benefits and perquisites serve our objective of offering competitive compensation that allows us to continue to attract, retain
and motivate highly talented people to these critical positions, ultimately providing a substantial benefit to our shareholders.</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>Impact of Accounting and Tax Treatments</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">Section 162(m) of the Internal Revenue Code (the &ldquo;Code&rdquo;)
prohibits publicly held companies like us from deducting certain compensation to any one named executive officer in excess of $1,000,000
during the tax year. However, Section 162(m) provides that, to the extent that compensation is based on the attainment of performance
goals set by the Compensation Committee pursuant to plans approved by the Company&rsquo;s shareholders, the compensation is not
included for purposes of arriving at the $1,000,000. &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">The Company, through the Compensation Committee, intends to
attempt to qualify executive compensation as tax deductible to the extent feasible and where it believes it is in our best interests
and in the best interests of our shareholders. However, the Compensation Committee does not intend to permit this arbitrary tax
provision to distort the effective development and execution of our compensation program. Thus, the Compensation Committee is permitted
to and will continue to exercise discretion in those instances in which mechanistic approaches necessary to satisfy tax law considerations
could compromise the interests of our shareholders. In addition, because of the uncertainties associated with the application and
interpretation of Section 162(m) and the regulations issued thereunder, there can be no assurance that compensation intended to
satisfy the requirements for deductibility under Section 162(m) will in fact be deductible.</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>Compensation Risk Management</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">As part of its annual review of our executive compensation program,
the Compensation Committee reviews with management the design and operation of our incentive compensation arrangements for senior
management, including executive officers, to determine if such programs might encourage inappropriate risk-taking that could have
a material adverse effect on the Company. The Compensation Committee considered, among other things, the features of the Company&rsquo;s
compensation program that are designed to mitigate compensation-related risk, such as the performance objectives and target levels
for incentive awards (which are based on overall Company performance), and its compensation recoupment policy. The Compensation
Committee also considered our internal control structure which, among other things, limits the number of persons authorized to
execute material agreements, requires approval of our board of directors for matters outside of the ordinary course and its whistle
blower program. Based upon the above, the Compensation Committee concluded that any risks arising from the Company&rsquo;s compensation
plans, policies and practices are not reasonably likely to have a material adverse effect on the Company.</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>Impact of Shareholder Advisory Vote</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">At our 2016 annual meeting, our stockholders approved, in a
non-binding advisory vote, our current executive compensation with 96% of the shares present, in person or by proxy, at the annual
meeting and entitled to vote thereon affirmatively giving their approval (with broker non-votes having no effect on the vote).
Accordingly, we believe that this vote ratifies our executive compensation philosophy and policies, as currently adopted and implemented,
and we intend to continue such philosophy and policies.</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">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The information contained in this Compensation Committee
Report shall not be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, whether made before
or after the date hereof and irrespective of any general incorporation language in any such filing (except to the extent that we
specifically incorporate this information by reference) and shall not otherwise be deemed &ldquo;soliciting material&rdquo; or
&ldquo;filed&rdquo; with the SEC or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Exchange Act (except
to the extent that we specifically request that this information be treated as soliciting material or specifically incorporate
this information by reference).</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">The Compensation Committee has reviewed and discussed the Compensation
Discussion and Analysis required by Item 402(b) of Regulation S-K with management and, based on such review and discussions, the
Compensation Committee recommended to our Board that the Compensation Discussion and Analysis be included in this Proxy Statement.</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">Submitted by the Compensation Committee:</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">Jeffrey Karish</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mohan Gyani (Mr. Gyani was not a member of the Board of Directors
or the Compensation Committee prior to January&nbsp;26, 2016, and therefore had no role in any aspect of the compensation policies
or decisions discussed above prior to such date.)</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">November [__], 2016</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPENSATION COMMITTEE INTERLOCKS AND
INSIDER PARTICIPATION</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">The Compensation Committee members whose names appear on the
Compensation Committee Report above were committee members during all of fiscal year 2016, except for Mr. Gyani, who was appointed
to the Compensation Committee in January 2016. No member of the Compensation Committee (and in Mr. Gyani&rsquo;s case, during the
period he served on the committee) is or has been an executive officer of the Company or had any relationships requiring disclosure
by the Company under the SEC&rsquo;s rules requiring disclosure of certain relationships and related party transactions, except
for Jud Bowman a former director and member of the compensation committee as described below under &ldquo;Certain Relationships
and Related Party Transactions.&rdquo; None of the Company&rsquo;s executive officers served as a director or a member of a compensation
committee (or other committee serving an equivalent function) of any other entity that has or had one or more executive officers
who served as a director or member of the Compensation Committee during the fiscal year ended March 31, 2016.</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"><B>&nbsp;</B></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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following compensation table sets forth information concerning
aggregate compensation earned by or paid to (i)&nbsp;the individual serving as our Chief Executive Officer during our fiscal year
ending March 31, 2016, (ii) the individual serving as our Chief Financial Officer during our fiscal year ending March 31, 2016,
and (iii) one additional most highly compensated individual who served as the former Chief Accounting Officer during our fiscal
year ending March 31, 2016. We refer to these individuals, collectively, as our &ldquo;named executive officers&rdquo;.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 92%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Position</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fiscal<BR> Year&nbsp;<BR> Ended<BR> March&nbsp;31,</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Salary<BR> ($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Bonus<BR>
($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Stock&nbsp;Awards<BR> ($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option&nbsp;<BR> Awards&nbsp;(1)<BR> ($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">All&nbsp;Other<BR> Compensation<BR> ($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total&nbsp;($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 25%; text-align: left; text-indent: -12pt; padding-left: 12pt">William Stone III (2)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: center; padding-left: 1.5pt">2016</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">213,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">2,541</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">716,041</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; padding-left: 9pt">Chief Executive Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 1.5pt">2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">424,375</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">188,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,029,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,625</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,667,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 1.5pt">2014</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">350,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">195,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">708,055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,870</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,283,925</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 1.5pt">Andrew Schleimer (3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 1.5pt">2016</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">341,667</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">113,173</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">128,100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,667</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">585,607</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; padding-left: 9pt; background-color: White">Former Executive Vice President and Chief Financial Officer</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 1.5pt; background-color: White">2015</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">219,423</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">137,500</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">-</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">1,137,000</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">25,652</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">1,519,575</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 1.5pt">James Alejandro (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 1.5pt">2016</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">182,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,263</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">102,300</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">380,063</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; padding-left: 9pt">Former Chief Accounting Officer and Controller</TD><TD>&nbsp;</TD>
    <TD STYLE="padding-left: 1.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-bottom: 0"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="width: 97%; padding-bottom: 0"><FONT STYLE="font-size: 10pt">The amounts in the &ldquo;Option Awards&rdquo; column relate to grants of stock options made under the Company&rsquo;s stock option plans.&nbsp;&nbsp;With respect to each stock option grant, the amounts disclosed generally reflect the fair value of the option award as of the grant date for all options issued in the respective fiscal year, in accordance with FASB ASC Topic 718 &ldquo;Compensation-Stock Compensation.&rdquo;&nbsp;&nbsp;Generally, ASC Topic 718 &ldquo;Compensation-Stock Compensation&rdquo; requires the full grant-date fair value of a stock option award to be amortized and recognized as compensation cost over the service period that relates to the award. Note 4, &ldquo;Summary of Significant Accounting Policies,&rdquo; in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016 sets forth the relevant assumptions used to determine the valuation of our stock option awards.&nbsp;&nbsp;Vesting schedules for unvested stock grants for each officer are described below under &ldquo;Narrative Disclosure to Summary Compensation Table.&rdquo;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 0">&nbsp;</TD>
    <TD STYLE="padding-bottom: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 0"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="padding-bottom: 0"><FONT STYLE="font-size: 10pt">During the fiscal year ended March 31, 2016, Mr. Stone was granted options on December 9, 2015 to purchase 175,000 shares of common stock of the Company with a grant date fair value of $213,500. During the year ended March 31, 2015, Mr. Stone received a $100,000 signing bonus in connection with his employment agreement to become chief executive officer. Mr Stone was also awarded, and the Company recorded, a bonus of $88,000 for the year ended March 31, 2015, but it was reversed in a subsequent period based on the Company&rsquo;s subsequent performance. Pursuant to his previous agreement, on November 25, 2013, Mr.&nbsp;Stone was granted options to purchase 300,000 shares of common stock of the Company with a grant date fair value of $708,055. On July&nbsp;8, 2014 and September 10, 2014, Mr.&nbsp;Stone was granted options to purchase an additional 200,000 and 50,000 shares of common stock of the Company, respectively, with grant date fair values of $758,000 and $271,500, respectively. Amounts under &quot;All Other Compensation&quot; represent Company paid health benefits.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 0">&nbsp;</TD>
    <TD STYLE="padding-bottom: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 0"><FONT STYLE="font-size: 10pt">(3) </FONT></TD>
    <TD STYLE="padding-bottom: 0"><FONT STYLE="font-size: 10pt">Mr. Schleimer was appointed as our Chief Financial Officer on July 8, 2014 and resigned effective September 12, 2016. During the fiscal year ended March 31, 2016, Mr. Schleimer's salary was increased on November 1, 2015 from $300,000 to $400,000, and on December 9, 2015, he was granted options to purchase 105,000 shares of common stock of the Company with a grant date fair value of $128,100. During the fiscal year ended March 31, 2015, Mr. Schleimer was granted options to purchase 300,000 shares of common stock of the Company with a grant date fair value of $1,137,000. In connection with Mr. Schleimer's resignation on September 12, 2016, of the 60,000, 300,000, and 105,000 stock option grants, 0, 137,500, and 105,000, respectively, were cancelled. The remainder are exercisable until December 12, 2016. During fiscal years 2015 and 2016, Mr. Schleimer was eligible to receive an annual performance bonus of up to 50% of his base salary. Mr. Schleimer&rsquo;s bonus opportunity was based on corporate performance criteria, and personal performance criteria. The corporate performance criteria were based on previously budgeted Company revenue and Adjusted EBITDA targets and the personal performance criteria were based on five factors related to different operational and financial aspects of the Company&rsquo;s finance and accounting functions listed in his employment agreement. Mr. Schleimer&rsquo;s annual bonus was paid based on the determination by the Compensation Committee that substantial progress had been achieved toward ultimate completion of such criteria. Amounts under &quot;All Other Compensation&quot; represent Company paid health benefits. Mr Schleimer's employment agreement expired on July 8, 2016. </FONT></TD></TR>
</TABLE>
<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">&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: 3%; padding-bottom: 6pt"><FONT STYLE="font-size: 10pt">(4) </FONT></TD>
    <TD STYLE="width: 97%; padding-bottom: 0"><FONT STYLE="font-size: 10pt">Mr. Alejandro was appointed as our Chief Accounting Officer on February 10, 2015, with an effective start date of February 27, 2015, and remained in this role through June 10, 2016, the effective date of his resignation. Pursuant to his employment agreement, on February 27, 2015, Mr. Alejandro was granted options to purchase 100,000 shares of common stock of the Company with a grant date fair value of $316,130. On November 4, 2015 and December 9, 2015, Mr. Alejandro was granted options to purchase 50,000 and 35,000, respectively, shares of common stock of the Company with grant date fair values of $59,600 and $42,700, respectively, totaling $102,300. Since Mr. Alejandro's resignation, all of his options have expired.&nbsp; Mr. Alejandro received a retention bonus of $25,000 and an annual performance bonus of $70,263 based on his satisfaction of performance-related milestones.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NARRATIVE DISCLOSURE TO SUMMARY COMPENSATION
TABLE</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>EMPLOYMENT AGREEMENTS</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"><B><I>Employment Agreement with William Stone III </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Previous Employment Agreement</I>. On November 24, 2013,
we entered into an employment agreement with Bill Stone to become the Company&rsquo;s President and Chief Operating Officer. The
Agreement had a term of two years and Mr. Stone received a salary of $350,000 per year. Mr. Stone was eligible to receive, on an
annual basis, a performance bonus of up to 100% of his base salary based on criteria consistent with those applicable to the Company&rsquo;s
CEO, as determined mutually by the CEO, Compensation Committee and Mr. Stone. In addition, Mr. Stone received options to purchase
300,000 shares of common stock under the Company&rsquo;s equity incentive plan at the closing price on November 25, 2013. The options
vest over a three year term as follows: 100,000 options on the first anniversary of the option grant date, then the remaining shares
vest on a pro rata monthly basis for the following two years. Mr. Stone was also the President of Digital Turbine, Inc., the Company&rsquo;s
wholly-owned subsidiary.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>CEO Employment Agreement</I>. On September 9, 2014, we entered
into an employment agreement pursuant to which Mr. Stone became the Chief Executive Officer of the Company on October 2, 2014.
In connection with the new employment agreement, Mr. Stone received a one-time $100,000 signing bonus. Pursuant to the agreement,
Mr. Stone receives a salary of $500,000 per year, and he was eligible for a performance bonus, which was amended as described below.</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">In connection with entering into the agreement, the vesting
(but not the exercise price) of the 200,000 options granted to Mr. Stone on July 8, 2014 was adjusted so that 50,000 options vest
on the one-year anniversary of the original grant date (i.e., July 8, 2015), 150,000 options vest on a monthly basis over the 3
years following the first anniversary, and all unvested options granted will vest immediately upon a change of control of the company.
The estimated incremental fair value associated with the 50,000 options was less than $10,000. In addition, on the effective date
of the agreement, Mr. Stone received a grant of a new stock option to purchase 50,000 shares of common stock of the Company at
an exercise price equal to the closing price of the Company&rsquo;s common stock on September 10, 2014 under the Company&rsquo;s
equity incentive plan, which vests as follows: 12,500 options vest on the one-year anniversary of the grant date, 37,500 options
vest on a monthly basis over the 3 years following the first anniversary of the grant date, and all unvested&nbsp;options will
vest immediately upon a change of control of the Company.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>CEO Amended Employment Agreement</I>. On May 26, 2016, we
entered into an amendment to the employment agreement with William Stone originally entered into on September 9, 2014. The amendment
extends the term until March 31, 2018. Mr. Stone received a one-time $100,000 signing bonus and is eligible for a performance bonus
opportunities based on the following criteria:</P>

<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; font-size: 10pt">&middot;</FONT></TD><TD>Mr. Stone will receive 30% of his salary earned with respect to the period starting April 1, 2016 through March 31, 2017 (&quot;Year
2 Period&quot;), as a bonus if both the FY2017 adjusted EBITDA target and the 2017 revenue target are achieved; plus up to an additional
70% of his salary earned with respect to the Year 2 Period, as a bonus in the sole discretion of the Compensation Committee based
on extraordinary financial and business performance of the Company during the Year 2 Period (beyond the level required to achieve
the bonus of 30% of his salary for the Year 2 Period). The Compensation Committee also authorized an additional 50% of base salary
&ldquo;Extraordinary Bonus&rdquo; if the Company exceeds targeted revenues and Adjusted EBITDA by 50% relative to the targets approved
by the Board for FY2017 at its meeting on April 13, 2016.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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; font-size: 10pt">&middot;</FONT></TD><TD>Mr. Stone will receive 50% of his salary earned with respect to period starting April 1, 2017 through March 31, 2018 (&quot;Year
3 Period&quot;), as a bonus if both of the Year 3 Period targets are achieved; plus up to an additional 50% of <FONT STYLE="font-size: 10pt">his</FONT>
salary earned with respect to the Year 3 Period, as a bonus in the sole discretion of the Compensation Committee based on extraordinary
financial and business performance of the Company during the Year 3 Period (beyond the level required to achieve the bonus of 50%
of his salary for the Year 3 Period). The Compensation Committee also authorized an additional 50% of base salary &ldquo;Extraordinary
Bonus&rdquo; if the Company exceeds targeted revenues and adjusted EBITDA by 50%.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Achievement of targets will be determined promptly after the
Company's annual financial statements for the fiscal year for the applicable period have been publicly issued and certified by
the Company's auditors. Any interpretative issues in reconciling adjusted EBITDA or a public earnings measure to audited numbers
(a) be resolved as much as possible based on the Company's publicly filed reconciliations of the same and (b) as to any other questions
will be determined in the reasonable discretion of the Compensation Committee after good faith discussion with Mr. Stone. Bonus
targets that have not been achieved to the level required by the above criteria will not entitle Mr. Stone to a pro-rated bonus.</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">In connection with entering into the amended agreement, Mr.
Stone received an option grant to purchase 100,000 shares of common stock of the Company at an exercise price equal to the closing
price of the Company&rsquo;s common stock on May 26, 2016 under the Company&rsquo;s equity incentive plan, which vests as follows:
25,000 options shall vest on the one-year anniversary of the grant date, 75,000 options shall vest on a monthly basis over the
3 years following the first anniversary of the grant date, and all unvested&nbsp;options shall vest immediately upon a change of
control of the Company.</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"><B><I>Employment Agreement with Barrett Garrison</I></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">On August 31, 2016, the Company entered into an employment agreement
with Barrett Garrison as Executive Vice President and Chief Financial Officer with a start date of September 12, 2016. The agreement
has a two year term with equity, salary and bonus compensation components.</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">For the salary component, Mr. Garrison receives an annual salary
of $300,000. For the bonus component, Mr. Garrison is eligible to receive an annual performance bonus of up to 50% of his base
salary. Mr. Garrison&rsquo;s bonus opportunity is based on corporate performance criteria, and personal performance criteria in
the discretion of the Compensation Committee of the Company. The corporate performance criteria are, for the remainder of the current
fiscal year ended March 31, 2017, based on previously budgeted Company revenue and Adjusted EBITDA targets. A similar structure
applies for the balance of the term of the agreement, except that the Compensation Committee may use, instead of Adjusted EBITDA,
a different measure that it determines to be the most important earnings measure used publicly by the Company (for example, EBITDA
without adjustment), and will also determine the target level of revenue and of such earnings measure. The Compensation Committee
will first consult with Mr. Garrison prior to making such determinations.</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">For the equity component, Mr. Garrison received options, granted
on September 12, 2016, for 450,000 shares of common stock under the Company&rsquo;s equity incentive plan at the closing price
on the Start Date. The options will vest over a three year term as follows: 150,000 on the first anniversary of the Start Date,
then 12,500 shares on a monthly basis for the following two years (three year total vesting). In the event of a change of control,
all unvested options will vest immediately. A change of control means the sale of all or substantially all of the assets of the
Company, a merger or reorganization in which the Company&rsquo;s equity holders own less than 50% of the voting power after such
transaction, or upon the sale of equity securities representing 50% or more of the voting power of or economic interest in the
Company.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company will reimburse Mr. Garrison for the reasonable and
documented expense that he incurs in substantially completing the relocation of his principal personal residence to Austin, Texas
not later than December&nbsp;31, 2016, not to exceed $25,000. The Agreement also contains customary provisions regarding intellectual
property, confidentiality, and non-solicitation and indemnification.</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">In the event Mr. Garrison is terminated without cause or if
he were to voluntarily resign for good reason, each as defined below under &ldquo;Termination Provisions &amp; Potential Payments
Upon Termination or Change of Control,&rdquo; he would be entitled to receive his salary for the balance of the term, continuation
of any executive health and group health plan benefits to the extent authorized by COBRA, a pro-rata portion of any bonus that
would have been earned through the termination date, and, finally, acceleration of vesting of a pro-rata portion of any options
that would have vested had his vesting occurred a monthly basis, advanced to the next month. Upon death, the Company will have
no further obligation to Mr. Garrison except accrued compensation. If Mr. Garrison becomes disabled so he is unable to perform
the essential functions of his existing position with or without reasonable accommodation, the board of directors may remove him
from any responsibilities and/or reassign him to another position for the remainder of the term of the agreement or during the
period of such disability and he will continue to receive his full salary and benefits for a period of time equal to 12 months.
If the disability continues beyond the 12 month period, then Mr. Garrison&rsquo;s employment may be terminated. &ldquo;Disability&rdquo;
means a written determination, as certified by at least two duly licensed and qualified physicians, one of which is approved by
the board of directors and one of which is approved by the officer, that he suffers from a physical or mental impairment that renders
him unable to perform his regular personal duties under the agreement and that such impairment can reasonably be expected to continue
for a period of six consecutive months or for shorter periods aggregating 180 days in any 12 month period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TERMINATION PROVISIONS &amp; POTENTIAL
PAYMENTS UPON TERMINATION</B><BR>
<B>OR CHANGE OF CONTROL</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">The section below provides information concerning the amount
of compensation payable to our named executive officers in the event of termination of such executive&rsquo;s employment, including
certain estimates of the amounts that would have been paid on certain dates under what we believe to be reasonable assumptions.
However, the actual amounts to be paid out can only be determined at the time of such executive&rsquo;s termination.</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>Payments Made Upon Termination Generally</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">Regardless of the manner in which any of our employees (including
any of our executive officers) is terminated, the employee would be entitled to receive certain amounts due during such employee&rsquo;s
term of employment. Such amounts would include (&ldquo;accrued compensation&rdquo;):</P>

<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; font-size: 10pt">&middot;</FONT></TD><TD>any unpaid salary from the date of the last payroll to the date of termination;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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>accrued but unpaid bonus for a previously completed yearly measurement period;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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>reimbursement for any properly incurred unreimbursed business expenses;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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>any vested benefits the executive may have under the Company&rsquo;s benefit plans; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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>unpaid, accrued and unused personal time off through the date of termination.</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">In addition, an executive officer would retain the following
rights:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.25in">&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; font-size: 10pt">&middot;</FONT></TD><TD>any existing rights to indemnification for prior acts through the date of termination; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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; font-size: 10pt">&middot;</FONT></TD><TD>any options and equity awarded pursuant to our 2011 Plan to the extent provided in that plan and the grant or award.</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"><B><I>Messrs. Stone, Schleimer, Alejandro</I></B>: As noted
above under &ldquo;Employment Agreements,&rdquo; each of Messrs. Stone, Schleimer, and Alejandro has or had as of March 31, 2016
an employment agreement with us. Messrs. Schleimer and Alejandro resigned from the Company in September 2016 and June 2016, respectively.
In addition to those payments made upon termination noted above, these agreements provide for the additional benefits on certain
termination as described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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>Payments Made Upon Termination by Us Without Cause or by
the Officer for Good Reason</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">If, as of March 31, 2016, we terminated Messrs. Stone&rsquo;s,
Schleimer&rsquo;s or Alejandro's employment without cause, or if the officer terminated his employment for good reason, he would
have received the following termination benefits:</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: 7%; text-align: center">(i)</TD>
    <TD STYLE="width: 93%">continuation of his salary at the rate then in effect; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(ii)</TD>
    <TD>continuation of any executive health and group health plan benefits to the extent authorized by and consistent with 29 U.S.C. &sect; 1161 et seq. (commonly known as &ldquo;COBRA&rdquo;), subject to payment of premiums by the Company to the extent that the Company was covering such premiums as of the termination date (if permitted by law without violation of applicable discrimination rules, or, if not, the equivalent after-tax value payable as additional severance at the same time such premiums are otherwise payable); and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(iii)</TD>
    <TD>a pro-rata annual bonus through the termination date, as reasonably determined by the Compensation Committee applying the applicable contract standards and paid at the same time as a bonus would otherwise be payable under the contract; and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(iv)</TD>
    <TD>acceleration of vesting of the options amended and/or granted under the contract on a pro-rata basis as if the vesting schedule had been monthly rather than annual, advanced to the next month.</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">The Company&rsquo;s liability for salary continuation pursuant
to clause (i) above will not be reduced by the amount of any severance pay paid to the executive pursuant to any severance pay
plan or stay bonus plan of the employer.</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">In order to receive such severance, the officer must execute
a release of all claims and comply with the remaining confidentiality and non-solicitation provisions of his employment agreement.</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">&ldquo;Good reason&rdquo; means (i) breach by the Company of
the insurance or indemnification provisions in the employment or any indemnification agreement or failure of the Company to pay
any amounts or options due when due under the terms and conditions thereunder, after a 15 day cure period; (ii) the officer is
not reporting directly to the board of directors, subject to a 30 day cure period, unless the sole reason for such failure to report
to the board of directors is that a change of control occurred and as a result the officer&rsquo;s reporting structure in the buyer&rsquo;s
organization puts him at effectively the same or higher level of overall responsibility and authority (comparing the positions
in each organization) as was the case immediately prior to such change of control, as reasonably determined by the board of directors
prior to such change of control; or (iii) material diminution in the officer&rsquo;s position, duties, authority or responsibility,
without cause, subject to a 30 day cure period.</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">The term &ldquo;cause&rdquo; means (i) any act committed against
the Company which involves fraud, willful misconduct, gross negligence or refusal to comply with the reasonable, legal and clear
written instructions; or (ii) the conviction of, or indictment (or procedural equivalent, or guilty plea or plea of nolo contender)
for (A) a felony or (B) any misdemeanor involving moral turpitude where the circumstances reasonably would have a negative impact
on the Company, deceit, dishonesty or fraud; or (iii) material breach of the employment agreement; provided, however, that in each
case the officer will have 15 days to cure such conduct, unless such conduct is not reasonably curable.</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">If Mr. Stone, Mr. Schleimer, or Mr. Alejandro were terminated
without cause or he resigned for good reason on March 31, 2016, then pursuant to the terms of his employment agreement, he would
have received the following post-termination payments:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><B>Base&nbsp;Salary</B><BR> <B><SUP>(1)&nbsp;($)</SUP></B></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><B>Annual</B><BR> <B>Bonus</B><BR> <B><SUP>(2)&nbsp;($)</SUP></B></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><B>Health&nbsp;Plan</B><BR> <B>Payments</B><BR> <B><SUP>(3)&nbsp;($)</SUP></B></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><B>Accelerated&nbsp;Vesting</B><BR> <B>of&nbsp;Options/Restricted</B><BR> <B>Stock&nbsp;<SUP>(4)</SUP></B></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; text-align: left">William G. Stone III</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">1,500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">9,072</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left">Chief Executive Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Andrew Schleimer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,968</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">433</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; background-color: White">Former Executive Vice President, Chief Financial Officer</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">&nbsp;</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">&nbsp;</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">&nbsp;</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">&nbsp;</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">James Alejandro</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">167,020</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,263</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left">Former Chief Accounting Officer, Controller</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<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">&nbsp;</P>

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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: 4%"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="width: 96%"><FONT STYLE="font-size: 10pt">Mr. Stone&rsquo;s payment is based on salary paid from April 1, 2016 until March 31, 2018, the end of the terrn of his employment agreement. Mr. Schleimer&rsquo;s payment is based on salary paid from April 1, 2016 until July 8, 2016, the end of the term of his employment agreement. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Mr. Stone and Mr. Schleimer were not eligible to receive a performance bonus as of March 31, 2016. As of March 31, 2016, Mr. Alejandro reached certain milestones related to accomplishments made on the Company's financial controls, and received a bonus of $70,263 for such accomplishments. The bonus was paid on April 29, 2016.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Based on monthly payments of $252 for Mr. Stone and monthly payments of $173 for Mr. Schleimer. Mr. Alejandro made no benefit elections for the fiscal year ended March 31, 2016</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">For Mr. Stone, the amount is based on the difference between the exercise price of options outstanding as of March 31, 2016 ($2.54 per share with respect to 300,000 options, $4.11 per share with respect to 200,000 options, and $5.89 per share with respect to 50,000 options) and in each case the closing stock price on March 31, 2016 ($1.19). For Mr. Schleimer, the amount is based on the difference between the exercise price of options outstanding as of March 31, 2016 ($2.75 per share with respect to 60,000 options and $4.11 per share with respect to 300,000 options) and in each case the closing stock price on March 31, 2016 ($1.19) and the acceleration of vesting of the options amended and/or granted under the employment agreement on a pro-rata basis as if the vesting schedule had been monthly rather than annual, advanced to the next month. In connection with Mr. Schleimer's resignation on September 12, 2016, of the 60,000, 300,000, and 105,000 stock option grants, 0, 137,500, and 105,000, respectively, were cancelled. The remainder are exercisable until December 12, 2016. For Mr. Alejandro, the amount is based on the difference between the exercise price of options outstanding as of March 31, 2016 ($3.61 per share with respect to 100,000 options, $1.51 per share with respect to 50,000 options, and $1.43 per share with respect to 35,000 options) and in each case the closing stock price on March 31, 2016 ($1.19). Since Mr. Alejandro's resignation, all of his options have expired. Due to all options issued to our named executive officers having exercise prices below the stock price as of March 31, 2016, these options have no intrinsic value as of March 31, 2016.</FONT></TD></TR>
</TABLE>
<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>Payments Made upon Termination following a Change of Control</B>&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">Following a change of control as of March
31, 2016, the unvested equity grants made to Mr. Stone, Mr. Schleimer, and Mr. Alejandro under his employment agreements will vest.
We estimate that an acceleration under these conditions would result in no value based on the difference between the exercise price
of such options and the closing stock price on March 31, 2016 ($1.19).</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>Payments Made Upon Disability and Death</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">Up disability or death of either Mr. Stone, Mr. Schleimer or
Mr. Alejandro, the Company would be obligated to pay the accrued compensation, as described above. If either officer became disabled
so that he is unable to perform the essential functions of the existing position with or without reasonable accommodation, the
Board may remove him from any responsibilities and/or reassign him to another position for the remainder of the term of the agreement
or during the period of such disability and he will continue to receive his full salary and benefits for a period of time equal
to 12 months. Based on medical insurance premiums as of March 31, 2016, we estimate that the approximate value of the continued
medical benefit payments would have been $252 for Mr. Stone, $173 for Mr. Schleimer, and none for Mr. Alejandro. If the disability
continues beyond the 12 month period, then the officer&rsquo;s employment may be terminated. &ldquo;Disability&rdquo; means a written
determination, as certified by at least two duly licensed and qualified physicians, one of which is approved by the Board and one
of which is approved by the officer, that he suffers from a physical or mental impairment that renders him unable to perform his
regular personal duties under the agreement and that such impairment can reasonably be expected to continue for a period of three
consecutive months or for shorter periods aggregating 90 days in any 12 month period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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; text-align: center"><B>GRANTS OF PLAN-BASED AWARDS DURING FISCAL
YEAR ENDED MARCH 31, 2016</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">The following table sets forth certain information about plan-based
awards that we made to the named executive officers during the fiscal year ended March 31, 2016.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Grant&nbsp;Date</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><B>Option</B><BR> <B>Awards:</B><BR> <B>Number&nbsp;of</B><BR> <B>Shares</B><BR> <B>underlying</B><BR> <B>options<BR>
<SUP>(#)(1)</SUP></B></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><B>Exercise</B><BR> <B>price&nbsp;of</B><BR> <B>option</B><BR> <B>awards</B><BR> <B><SUP>($/Share)</SUP></B></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><B>Grant</B><BR> <B>date&nbsp;Fair</B><BR> <B>Value&nbsp;of</B><BR> <B>Stock&nbsp;&amp;</B><BR> <B>Option</B><BR> <B>Awards</B><BR> <B><SUP>($)(1)</SUP></B></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; text-align: left">William G. Stone</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: center">12/9/2015</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">175,000</TD><TD NOWRAP STYLE="width: 1%; text-align: left">(2)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">1.43</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">213,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; text-indent: -0.35pt; padding-left: 9.35pt">Chief Executive Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Andrew Schleimer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">12/9/2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">105,000</TD><TD NOWRAP STYLE="text-align: left">(3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.43</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">128,100</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; text-indent: -0.35pt; padding-left: 9.35pt; background-color: White">Former Executive Vice President and Chief Financial Officer</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: center; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">&nbsp;</TD><TD NOWRAP STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">&nbsp;</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">&nbsp;</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">James Alejandro</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">12/9/2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,000</TD><TD NOWRAP STYLE="text-align: left">(4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.43</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,700</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; text-indent: -0.35pt; padding-left: 9.35pt">Former Chief Accounting Officer and Controller</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">11/4/2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD NOWRAP STYLE="text-align: left">(4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.51</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">59,600</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<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>

<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: 4%"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="width: 96%"><FONT STYLE="font-size: 10pt">The value of a stock award or stock option award is based on the fair market value as of the grant date of such award determined pursuant to ASC 718. Stock awards consist of restricted stock awards. The exercise price for all options granted to the named executive officers is 100% of the fair market value of the shares on the grant date.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">The options granted on December 9, 2015 vest as follows: 87,500 options will vest on the twenty-four (24) month anniversary of the grant date, and 87,500 will vest on forty-eight (48) month anniversary of the grant date to become fully vested on December 9, 2019. All unvested options granted will vest immediately upon a change of control of the Company.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">In connection with Mr. Schleimer's resignation on September 12, 2016, of the 60,000, 300,000, and 105,000 stock option grants, 0, 137,500, and 105,000, respectively, were cancelled. The remainder are exercisable until December 12, 2016.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Since Mr. Alejandro's departure from the Company in June 2016, all of his options have expired.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></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; text-align: center"><B>OPTIONS EXERCISES AND STOCK VESTED DURING
FISCAL YEAR ENDING MARCH 31, 2016</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-indent: 0.5in">None of our executive officers exercised
any stock options during fiscal year 2016. The following table sets forth the common stock and options held by our executive officers
that vested during 2016:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Stock&nbsp;Awards</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number&nbsp;of<BR> Shares&nbsp;Acquired<BR> on&nbsp;Vesting</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><B>Value&nbsp;Realized&nbsp;on</B><BR> <B>Vesting<SUP>(1)</SUP></B></TD><TD NOWRAP STYLE="padding-bottom: 1pt; 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>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; text-align: left">William G. Stone III</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">91,666</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">220,082</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; padding-left: 9pt">Chief Executive Office</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</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; text-align: center"><B>OUTSTANDING EQUITY AWARDS AT MARCH 31,
2016</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">The following table presents information regarding outstanding
options and unvested stock awards held by our named executive officers as of March 31, 2016.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="15" STYLE="text-align: center; border-bottom: Black 1pt solid"><B>Option Awards</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold">Name</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center">Grant<BR> Date</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Number <BR> of <BR> Securities <BR> Underlying <BR> Unexercised <BR> Options <BR> (#) <BR> Exercisable</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Number <BR> of <BR> Securities <BR> Underlying <BR> Unexercised <BR> Options <BR> (#) <BR> Unexercisable</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Option <BR> Exercise <BR> Price&nbsp;($)</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center">Option <BR> expiration <BR> date</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%; text-align: left">William G. Stone III <SUP>(1)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right; padding-left: 1.5pt">12/9/2015</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">175,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">1.43</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right; padding-left: 1.5pt">12/9/2025</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; padding-left: 9pt">Chief Executive Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">9/10/2014</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.89</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">9/10/2024</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">7/8/2014</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">83,333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">116,667</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.11</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">07/08/2024</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">11/25/2013</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">233,328</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,672</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.54</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">11/25/2023</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Andrew Schleimer <SUP>(2)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">12/9/2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">105,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.43</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">12/9/2025</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; padding-left: 9pt; background-color: White">Former Executive Vice President and Chief Financial Officer</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt; background-color: White">7/8/2014</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">125,000</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">175,000</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: right; background-color: White">4.11</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt; background-color: White">7/8/2024</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">10/2/2013</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.75</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">10/2/2023</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">James Alejandro <SUP>(3) </SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">12/9/2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.43</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">12/9/2025</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; padding-left: 9pt">Former Chief Accounting Officer and Controller</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">11/4/2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,556</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,444</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.51</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">11/4/2025</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">2/27/2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,083</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">72,917</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.61</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-left: 1.5pt">2/27/2025</TD></TR>
</TABLE>

<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>

<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%"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="width: 95%"><FONT STYLE="font-size: 10pt">On December 9, 2015, Mr. Stone was granted 175,000 options with an exercise price of $1.43 per share and 87,500 of which will vest on the twenty-four (24) month anniversary of the grant date, and 87,500 of which will vest on forty-eight (48) month anniversary of the grant date to become fully vested on December 9, 2019. On September 10, 2014, Mr. Stone was granted 50,000 options with an exercise price of $5.89 per share and 12,500 of which will vest on the one-year anniversary of the grant date, and 37,500 of which will vest on a monthly basis over the three years following the first anniversary of the grant date to become fully vested on September 10, 2018. On July 8, 2014, Mr. Stone was granted 200,000 stock options exercisable at the exercise price of $4.11. The original vesting of these 200,000 options was adjusted so that 50,000 options vested on the one-year anniversary of the original grant date (i.e., July 8, 2015), and 150,000 options will vest on a monthly basis over the three years following such first anniversary. On November&nbsp;25, 2013, Mr.&nbsp;Stone was granted 300,000 stock options exercisable at the price of $2.54 per share. The options vest over a three year term as follows: 100,000 options vested on the first anniversary of the option grant date, then the remaining shares vest on a pro rata monthly basis for the following two years. All unvested options granted will vest immediately upon a change of control of the Company.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<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%"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="width: 95%"><FONT STYLE="font-size: 10pt">In connection with Mr. Schleimer's resignation on September 12, 2016, of the 60,000, 300,000, and 105,000 stock option grants, 0, 137,500, and 105,000, respectively, were cancelled. The remainder are exercisable until December 12, 2016.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Since Mr. Alejandro's departure from the Company in June 2016, all of his options have expired.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DIRECTOR COMPENSATION</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">The following table presents information regarding compensation
paid to our directors during the fiscal year ended March 31, 2016. For compensation paid to William Stone III, see &quot;Summary
Compensation Table&quot; above.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fees&nbsp;Earned&nbsp;or <BR> Paid&nbsp;in&nbsp;Cash <BR> ($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Stock&nbsp;Awards </B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>($)</B></FONT><SUP>(1)</SUP></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total&nbsp;($)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 61%; text-align: left">Robert Deutschman <SUP>(2)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">79,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">78,200</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">157,700</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Chris Rogers <SUP>(3)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">101,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Craig Forman <SUP>(4)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">101,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Jeffrey Karish <SUP>(5)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">96,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mohan S. Gyani<SUP>(6)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,664</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,592</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,256</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Paul Schaeffer<SUP>(7)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">101,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Peter Guber<SUP>(8)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Judson Bowman<SUP>(9)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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%"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="width: 95%"><FONT STYLE="font-size: 10pt">The amounts in the &ldquo;Stock Awards&rdquo; column reflect the aggregate grant date fair value of each restricted stock award that was granted during the respective fiscal year, computed in accordance with FASB ASC Topic 718 &ldquo;Compensation-Stock Compensation&rdquo;. We estimated the fair value of restricted stock based on the fair value at the time of grant. The fair value for awards that are expected to vest is then amortized on a straight-line basis over the requisite service period of the award, which is generally the vesting term. The amount of expense recognized represents the expense associated with the restricted stock we expect to ultimately vest based upon an estimated rate of forfeitures; this rate of forfeitures is updated as necessary and any adjustments needed to recognize the fair value of restricted stock that actually vest or are forfeited are recorded. Note 4, &ldquo;Summary of Significant Accounting Policies,&rdquo; in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016 sets forth the relevant assumptions used to determine the valuation of our stock option awards.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Mr.&nbsp;Deutschman is the Chairman of the Board of Directors and the Chairman of the Audit Committee. During the fiscal ended March&nbsp;31, 2016, Mr.&nbsp;Deutschman received quarterly cash payments totaling $79,500 and was granted a total of 51,788 shares of common stock issued on November 4, 2015 with a fair value price of $1.51 per share, of which 25,894 shares remained unvested as of March 31, 2016.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Mr.&nbsp;Rogers is a director of the Company and a member of the Audit Committee and the Compensation Committee. During the fiscal year ended March&nbsp;31, 2016, Mr.&nbsp;Rogers received quarterly cash payments totaling $53,000 and was granted 31,788 shares of common stock issued on November 4, 2015 with a fair value price of $1.51 per share, of which 15,894 shares remained unvested as of March 31, 2016.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Mr. Forman is a director of the Company and a member of the Audit Committee. During the fiscal year ended March 31, 2016, Mr. Forman received quarterly cash payments totaling $53,000 and was granted 31,788 shares of common stock issued on November 4, 2015 with a fair value price of $1.51 per share, of which 15,894 shares remained unvested as of March 31, 2016.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(5)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Mr.&nbsp;Karish is a director of the Company and a member of the Compensation Committee. During the fiscal year ended March&nbsp;31, 2016, Mr.&nbsp;Karish received quarterly cash payments totaling $48,000 and was granted 31,788 shares of common stock issued on November 4, 2015 with a fair value price of $1.51 per share, of which 15,894 shares remained unvested as of March 31, 2016.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="margin: 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: 5%"><FONT STYLE="font-size: 10pt">(6)</FONT></TD>
    <TD STYLE="width: 95%"><FONT STYLE="font-size: 10pt">Mr.&nbsp;Gyani is a director of the Company and a member of the Compensation Committee. During the fiscal year ended March&nbsp;31, 2016, Mr.&nbsp;Gyani received quarterly cash payments totaling $8,664 and was granted 23,200 shares of restricted stock both pro-rated from the date of commencement of service on January 26, 2016 to the next November 1, 2016 annual grant with a fair value price of $1.06 per share, of which 22,579 shares remained unvested as of March 31, 2016.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(7)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Mr.&nbsp;Schaeffer is a director of the Company and a member of the Audit Committee. During the fiscal year ended March&nbsp;31, 2016, Mr.&nbsp;Schaeffer received quarterly cash payments totaling $53,000 and was granted 31,788 shares of common stock issued on November 4, 2015 with a fair value price of $1.51 per share, of which 15,894 shares remained unvested as of March 31, 2016.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(8)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">During the fiscal year ended March&nbsp;31, 2016, Mr. Guber received quarterly cash payments totaling $12,000. On August 10, 2015, Mr. Guber resigned from the board of directors.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(9)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Mr.&nbsp;Bowman was a director of the Company until January 25, 2016. During the fiscal year ended March&nbsp;31, 2016, Mr. Bowman received quarterly cash payments totaling $36,000 and was granted 31,788 shares of common stock issued on November 4, 2015 with a fair value price of $1.51 per share. Effective as of Mr. Bowman's resignation from the board of directors, 23,841 unvested shares of the total common stock issued on November 4, 2015 were cancelled.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NARRATIVE TO DIRECTOR COMPENSATION TABLE</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">Non-employee director compensation for a new director is granted
under the Board Member Equity Ownership and Retention Policy (the &ldquo;Policy&rdquo;). The Policy, which is administered by the
independent Compensation Committee of the Board and can be amended by such committee, requires each non-management board member
to acquire shares of the Company having a value equal to three times his or her annual cash retainer within five years, requires
any employee director and the Chief Executive Officer to acquire shares of the Company having a value equal to three times his
or her annual salary within five years and requires the Chief Operating Officer to acquire shares of the Company having a value
equal to two times his or her annual salary within five years. Unvested restricted stock or restricted stock units and unvested
stock options will not be considered when determining an individual&rsquo;s stock ownership, and vested but unexercised stock options
will be treated as equivalent to one-half a share. The Policy does not affect the vesting restrictions on any equity awards but
supersedes any post-vesting lock-up that is currently applicable to any person covered by the Policy. Failure to meet or show sustained
progress toward meeting the ownership requirements of the Policy may result in reduction in future long-term incentive grants and/or
the requirement to retain all stock obtained through the vesting or exercise of equity awards.</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">The Company&rsquo;s compensation program for the non-employee
directors is as follows:&nbsp;each director receives an annual cash retainer of $48,000 (payable in equal quarterly installments)
plus an annual grant for restricted Company common stock under the Company&rsquo;s Amended and Restated 2011 Equity Incentive Plan
(the &quot;2011 Plan&quot;)&nbsp;having a value of $48,000 on the grant date (with quarterly vesting).</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">Effective July&nbsp;1, 2014, the compensation program also provides
for&nbsp;an additional annual cash retainer of $5,000 (payable in quarterly installments) and annual grant of restricted Company
common stock under the 2011 Plan having a value of $5,000 on the grant date (with quarterly vesting) for non-employee members of
the Audit Committee of the Board (other than the Chair) and an additional annual cash retainer of $7,500 (payable in quarterly
installments) and annual grant of restricted Company common stock under the 2011 Plan having a value of $7,500 on the grant date
(with quarterly vesting) for a non-employee Chairman of the Audit Committee.&nbsp;Also, effective July&nbsp;1, 2014, the Chairman
of the Board receives an additional cash retainer of $24,000 (payable in equal quarterly installments) plus an additional annual
grant for restricted Company common stock under the 2011 Plan having a value of $24,000.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of November 21, 2016, there were outstanding approximately
[______] shares of our common stock and 100,000 shares of Series A preferred stock (&quot;Preferred Stock&quot;) outstanding, which
are convertible into 20,000 shares of common stock and vote together with the common stock as a single class (on an as-converted
basis). The following table presents information regarding the beneficial ownership of our common stock and Preferred Stock as
of such date by:</P>

<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: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Each person who beneficially owns more than five percent (5%) of the outstanding shares of our common stock;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Each director;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Each named executive officer; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>All current directors and officers as a group.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Common Stock</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold"><B>Name and Address of Beneficial Owner</B> <SUP>(1<FONT STYLE="font-size: 10pt">)</FONT></SUP></TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center"><B>Number of Shares</B><BR> <B><SUP>(2)</SUP> </B></TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center">Percentage<BR> of Class</TD><TD NOWRAP STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Trident Capital Management-VII, L.L.C. <SUP>(3)</SUP> &nbsp;&nbsp;&nbsp;505 Hamilton Avenue, Suite 200<BR> Palo Alto, CA 94301</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">5,649,864</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">8.5</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Venrock Management VI, LLC <SUP>(4) </SUP>&nbsp;&nbsp;&nbsp;3340 Hillview Avenue<BR> Palo Alto, CA 94304</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,785,160</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.2</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Bruce Grossman<SUP>(5)</SUP> &nbsp;&nbsp;&nbsp;c/o Dillon Hill Capital LLC<BR> 200 Business Park Drive, Suite 306<BR> Armonk, NY 10504</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,925,896</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.9</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Guber Family Trust<SUP> (6)</SUP><BR> c/o Peter Guber<BR> 4751 Wilshire Blvd., 3rd Floor<BR> Los Angeles, CA 90010</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,921,192</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.9</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">B. Riley Capital Management, LLC<SUP>(7)</SUP> 4751 Wilshire Blvd., 3rd Floor<BR> Los Angeles, CA 90010</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,308,775</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 1.5pt">William Stone III</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">966,247</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.4</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 1.5pt">Paul Schaeffer <SUP>(8)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">617,616</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 1.5pt">Robert Deutschman <SUP>(9)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">540,267</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 1.5pt">Christopher Rogers</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">241,425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 1.5pt">Jeffrey Karish</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">220,344</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 1.5pt">Craig Forman</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">196,508</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 1.5pt">Mohan S. Gyani</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">89,753</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 1.5pt">Andrew Schleimer<SUP>(10)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">422,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 1.5pt">James Alejandro<SUP>(10)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">*</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 1.5pt"><B>All Directors and Executive Officers as a Group (9&nbsp;individuals) </B><SUP>(11)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,897,750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.3</TD><TD STYLE="text-align: left">%</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 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%"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="width: 95%"><FONT STYLE="font-size: 10pt">Less than 1%</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Except as otherwise indicated, the address of each of the persons listed above is c/o Digital Turbine, Inc., 1300 Guadalupe Street, Suite 302, Austin, TX 78701.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Pursuant to Item&nbsp;403 of Regulation S-K, the number of shares listed for each individual reflects their beneficial ownership except as otherwise noted. For purposes of this table, a person or group of persons is deemed to have &quot;beneficial ownership&quot; of any shares that such person or group has the right to acquire within 60 days after November&nbsp;21, 2016, however, such shares are not deemed outstanding for the purpose of computing the percentage ownership of any other person. Except as specifically indicated in the footnotes to this table, the persons named in this table have sole vote and investment power with respect to all shares of common stock shown as beneficially owned by them, subject to community property laws where applicable.</FONT></TD></TR>
</TABLE>
<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">&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: 5%"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="width: 95%"><FONT STYLE="font-size: 10pt">Based solely on a Schedule 13G filed with the SEC on March 13, 2015, by Trident Capital Management-VII, L.L.C. (&quot;TCM-VII)&quot;), Trident Capital Fund-VII, L.P. (&quot;Fund-VII&quot;), and Trident Capital Fund-VII Principals Fund, L.P. (&quot;Principals-VII&quot;). TCM-VII has sole voting and dispositive power with respect to 5,649,864 shares; Fund-VII is the record holder of and has sole voting and dispositive power with respect to 5,493,611 shares; and Principals-VII is the record holder of and has sole voting and dispositive power with respect to 156,253 shares. TCM-VII is the sole general partner of Fund-VII and Principals-VII and may be deemed to beneficially own 5,649,864 shares.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Based solely on a Schedule 13G filed with the SEC on March 12, 2015, by Venrock Management VI, LLC (&quot;VM-VI&quot;), Venrock Partners Management VI, LLC (&quot;VPM-VI&quot;), Venrock Associates VI, L.P. (&quot;VA-VI&quot;), and Venrock Partners VI, L.P. (&quot;VP-VI&quot;). Of such shares, 4,436,799 shares are owned by VA-VI and 348,361 shares are owned by VP-VI. VM-VI, VPM-VI, VA-VI and VP-VI share voting and dispositive power with respect to all 4,785,160 shares. VM-VI is the general partner of VA-VI, and VPM-VI is the general partner of VP-VI.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(5)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Based soled on a Schedule 13G filed with the SEC on May 13, 2016, by Bruce Grossman. Of such shares, Mr. Grossman directly owns 24,600 shares; Dillon Hill Capital, LLC (&quot;DHC&quot;), of which the Mr. Grossman is the sole member, directly owns 625,020 shares; Dillon Hill Investment Company, LLC (&quot;DHIC&quot;), the sole member of which is a trust of which Mr. Grossman's spouse is a co-trustee, directly owns 1,381,772 shares; and Debbon Capital, L.P. (&quot;DC&quot;), of which Mr. Grossman is the general partner, directly owns 1,894,504 shares. Mr. Grossman has sole voting and dispositive power over his shares and shares held by DHC and DC, and shared voting and dispositive power over shares and warrants held by DHIC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(6)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Based solely on a Schedule 13D amendment filed with the SEC on March 17, 2015 by The Guber Family Trust and Peter Guber and a Form 4 filed with the SEC on April 29, 2015 by Mr. Guber. Consists of (i) 212,800 shares held by Mr. Guber, (ii) 3,572,678 shares held by the Guber Family Trust (the &quot;Trust&quot;), of which Mr. Guber serves as a trustee, (iii) 35,714 shares of common stock issuable upon exercise of warrants, and (iv) 100,000 shares of common stock issuable upon the exercise of stock options. Mr. Guber disclaims beneficial ownership of the shares of common stock directly and beneficially owned by the Trust, except to the extent of his pecuniary interest therein.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(7)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Based solely on a Schedule 13G filed jointly on January 21, 2016 with the SEC by BRC Partners Opportunity Fund, L.P. (&ldquo;BPOF&rdquo;), B. Riley Capital Management, LLC (&quot;BRCM&quot;), investment advisor and general partner of BPOF, B. Riley Financial, Inc. (&quot;BRF&quot;), B. Riley &amp; Co., LLC (&quot;BRC&quot;), Robert Antin Children Irrevocable Trust dtd 1/1/01 (&quot;Antin Trust&quot;), and Bryant R. Riley (&quot;Mr. Riley&quot;), Mr. Riley is the chief executive officer of BRCM and portfolio manager of BPOF, chairman of BRF and BRC, and trustee of the Antin Trust. Of such shares (i) BPOF directly owns 2,009,119 shares, and BRCM and Mr. Riley may be deemed to beneficially own the all shares owned by BPOF; (ii) BRF directly owns 850,671 shares, which Mr. Riley may be deemed to beneficially own; (iii) BRC directly owns 44,955 shares, which Mr. Riley may be deemed to beneficially own; (iv) the Antin Trust directly owns 200,000 shares, which Mr. Riley may be deemed to beneficially own; and (v) Mr. Riley owns 204,030 shares. The principal business address of each of BPOF, BRCM, BRC, the Antin Trust and Mr. Riley is 11100 Santa Monica Blvd. Suite 800, Los Angeles, CA 90025. The principal place of business of BRF is 21860 Burbank Blvd. Suite 300 South, Woodland Hills, CA 91367.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(8)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Includes 228,254 shares held by the Paul and Judy Schaeffer Living Trust for which Mr. Schaeffer serves as a trustee and disclaims beneficial ownership, except to the extent of his pecuniary interest therein.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(9)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Includes 294,268 shares held by the Robert and Ellen Deutschman Family Trust, of which Mr. Deutschman is the trustee.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(10)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">For Mr. Schleimer, based on information upon his resignation from the Company effective September 12, 2016, and for Mr. Alejandro, based on information upon his departure from the Company in June 2016.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">(11)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Includes shares issuable upon the exercise of stock options that are exercisable within 60&nbsp;days of November 21, 2016, as follows: Mr.&nbsp;Stone, 454,167 shares; Mr.&nbsp;Schaeffer, 60,000 shares; Mr. Gyani, 22,917 shares; Mr. Guber, 100,000 shares; and Mr. Wesch, 25,139 shares.</FONT></TD></TR>
</TABLE>
<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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROPOSAL NO. 2 </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADVISORY (NON-BINDING) VOTE ON EXECUTIVE
COMPENSATION</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">We are required to permit a separate non-binding stockholder
vote to approve the compensation of the Company&rsquo;s named executive officers, as disclosed pursuant to the compensation disclosure
rules of the Securities and Exchange Commission (which disclosure includes the compensation tables and narrative discussion). This
vote is not intended to address any specific item of compensation or the compensation of any particular officer, but rather to
provide stockholders with an opportunity to make an advisory vote with respect to the overall compensation of our named executive
officers and our compensation practices.</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 0pt 0in">This proposal, commonly known as a &ldquo;Say-on-pay,&rdquo;
permits stockholders to endorse or not endorse our executive compensation through the following resolution:</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">&ldquo;RESOLVED, that the stockholders approve, on an advisory
basis, the compensation paid to the Company&rsquo;s named executive officers, as disclosed pursuant to the compensation disclosure
rules of the Securities and Exchange Commission (which disclosure includes the compensation tables and narrative discussion).&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">Because the stockholders&rsquo; vote is advisory, it will not
be binding on the Board. However, the Board&rsquo;s Compensation Committee will take into account the outcome of the vote when
considering future executive compensation arrangements.</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%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>THE BOARD OF DIRECTORS RECOMMENDS AN ADVISORY VOTE &ldquo;<U>FOR</U>&rdquo; PROPOSAL 2.</B></FONT></TD></TR>
</TABLE>
<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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROPOSAL 3</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>APPROVAL OF THE ISSUANCE OF SHARES OF
OUR COMMON STOCK ISSUABLE UPON THE CONVERSION OF 8.75% CONVERTIBLE SENIOR NOTES DUE 2020 AND EXERCISE OF WARRANTS ISSUED IN A PRIVATE
PLACEMENT TRANSACTION IN SEPTEMBER 2016 IN ACCORDANCE WITH NASDAQ MARKETPLACE RULES 5635(B) AND 5635(D)</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>General</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">We are asking stockholders to approve,
in accordance with NASDAQ Marketplace Rules 5635(b) and 5635(d), the issuance of shares of our common stock that are issuable upon
the conversion of 8.75% Convertible Senior Notes due 2020 (the &ldquo;Notes&rdquo;) pursuant to the terms thereof and upon the
exercise of warrants, which were issued in a private placement transaction in September 2016.</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 September 2016 Private Placement
Transaction</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"><B><I>Initial Purchaser Agreement</I></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">The offer and sale of the Notes and the accompanying warrants
were made pursuant to an Initial Purchaser Agreement, dated September 23, 2016 (the &ldquo;Purchase Agreement&rdquo;), among the
Company, certain subsidiary guarantors of the Company and BTIG, LLC, as initial purchaser. The Company sold the Notes to the initial
purchaser at a purchase price of 92.75% of the principal amount thereof. The initial purchaser also received an additional 250,000
warrants (the &ldquo;Initial Purchaser Warrants&rdquo;) on the same terms as the warrants issued with the Notes (as detailed below
under &ldquo;Warrant Agreement&rdquo;) and has the right to receive 2.5% of any cash consideration received by the Company in connection
with a future exercise of any of the warrants issued with the Notes.</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">The initial purchaser offered the Notes at a price equal to
100% of the principal amount thereof and the accompanying warrants to qualified institutional buyers pursuant to Rule 144A under
the Securities Act, as amended (the &ldquo;Securities Act&rdquo;), and to a limited number of institutional accredited investors
within the meaning of subparagraph (a)(1), (2), (3) or (7) of Rule 501 under the Securities Act.</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"><B><I>Indenture and Convertible Notes</I></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">The Notes were issued under an Indenture, dated as of September
28, 2016 (the &ldquo;Indenture&rdquo;), between the Company, certain guarantors and US Bank National Association, as trustee. The
Notes are senior unsecured obligations of the Company, and bear interest at a rate of 8.75% per year, payable semiannually in arrears
on September 15th and March 15th of each year, beginning on March 15, 2017. The Notes are unconditionally guaranteed by certain
of the Company&rsquo;s wholly-owned domestic and foreign subsidiaries, and will mature on September 23, 2020, unless converted,
repurchased or redeemed in accordance with their terms prior to such date.</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">The Notes are convertible by the holders at their option at
any time prior to the close of business on the business day immediately preceding the stated maturity date, and upon conversion,
the holders will receive shares of the Company&rsquo;s common stock. The initial conversion rate for the Notes is 733.14 shares
per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of $1.364 per share of common stock. The
conversion rate and the conversion price is subject to adjustment in certain events as outlined in the Indenture.</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">With respect to any conversion prior to September 23, 2019,
in addition to the shares deliverable upon conversion, holders of the Notes will be entitled to receive a payment equal to the
remaining scheduled payments of interest that would have been made on the Notes being converted from the date of conversion until
September 23, 2019 (an &ldquo;Early Conversion Payment&rdquo;). We may pay the Early Conversion Payment in cash or, subject to
certain equity-related conditions set forth in the Indenture, in shares of our common stock.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may redeem the Notes, for cash, in whole or in part, at any
time after September 23, 2018, at a redemption price equal to $1,000 per $1,000 principal amount of the Notes to be redeemed plus
accrued and unpaid interest, if any, to, but excluding, the date of redemption, plus an additional payment (payable in cash or
stock) equivalent to the amount of, and subject to equivalent terms and conditions applicable for, an Early Conversion Payment
had the Notes been converted on the date of redemption, if (1) the closing price of our common shares on the NASDAQ Capital Market
has exceeded 200% of the conversion price then in effect (but disregarding the effect on such price from certain anti-dilution
adjustments) for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including
the last trading day of such period) ending within the five trading days immediately preceding the date on which we provide the
redemption notice, (2) for the 15 consecutive trading days following the last trading day on which the closing price of our common
shares was equal to or greater than 200% of the conversion price in effect (but disregarding the effect on such price from certain
anti-dilution adjustments) on such trading day for the purpose of the foregoing clause, the closing price of our common shares
remains equal to or greater than 150% of the conversion price in effect (but disregarding the effect on such price from certain
anti-dilution adjustments) on the given trading day and (3) we are in compliance with certain other equity-related conditions as
set forth in the Indenture.</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">If we undergo a fundamental change, as described in the Indenture,
holders may require us to purchase the Notes in whole or in part for cash at a price equal to 120% of the principal amount of the
Notes to be purchased plus any accrued and unpaid interest, including additional interest, if any, to, but excluding, the repurchase
date. Conversions that occur in connection with a fundamental changes may entitle the holder to receive an increased number of
shares of common stock issuable upon such conversion, depending on the date of such fundamental change and the valuation of the
Company&rsquo;s common stock related thereto.</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">Subject to limited exceptions, the Indenture prohibits us from
incurring additional indebtedness at any time while the Notes remain outstanding.</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"><B><I>Warrants</I></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">In addition to the 250,000 warrants issued to the initial purchaser,
as described above, each purchaser of the Notes also received warrants to purchase 256.60 shares of the Company's common stock
for each $1,000 in Notes purchased, or up to 4,105,600 warrants in aggregate (together with the Initial Purchaser Warrants, the
&ldquo;Warrants&rdquo;). The Warrants were issued under a Warrant Agreement, dated as of September 28, 2016 (the &ldquo;Warrant
Agreement&rdquo;), between Digital Turbine, Inc. and US Bank National Association, as warrant agent.</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">The Warrants are exercisable at an initial exercise price of
$1.364 per share and will expire on September 23, 2020. The exercise price is subject to adjustment in certain events as outlined
in the Warrant Agreement.</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">In the event of a fundamental change, as set forth in the Warrant
Agreement, the holders can elect to exercise their Warrants or to receive an amount of cash under a Black-Scholes calculation of
the value of such Warrants.</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"><B><I>Use of Proceeds</I></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; border: white 1pt solid">The net proceeds from the offering
of the Notes and Warrants were approximately $14.3 million after payment of the estimated offering expenses and the initial purchaser&rsquo;s
discounts and commissions. We used approximately $11 million of the net proceeds from the offering to repay secured indebtedness,
consisting of approximately $3 million to Silicon Valley Bank and $8 million to North Atlantic Capital, retiring both such debts
in their entirety. The remaining net proceeds were provided for general corporate purposes.</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"><B><I>Further Information</I></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">The terms of the Notes, the Purchase Agreement, the Indenture,
the Warrant Agreement and the related agreements are complex and only briefly summarized above. This summary of the terms of the
offering of the Notes and Warrants and related agreements is qualified in its entirety by reference to our Current Report on Form
8-K filed with the SEC on September 29, 2016, including the exhibits attached thereto, which is incorporated herein by reference.
You should read this summary together with such documents.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Purpose</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">Our common stock is listed on the NASDAQ Capital Market (&ldquo;NASDAQ&rdquo;)
and trades under the ticker symbol APPS. The rules governing companies with securities listed on NASDAQ require stockholder approval
in connection with a transaction other than a public offering involving the sale or issuance by the issuer of common stock (or
securities convertible into or exchangeable for common stock) equal to 20% or more of the common stock or 20% or more of the voting
power outstanding before the issuance for a price that is less than the greater of book or market value of the stock on the date
the issuer enters into a binding agreement for the issuance of such securities.</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">This requirement is set forth in NASDAQ Marketplace Rule 5635(d).
Based on the initial conversion price and exercise price of&thinsp;$1.364 per share, the issuance of the shares of our common stock
issuable upon conversion of the Notes, including any Early Conversion Payment, and exercise of the Warrants, as applicable, may
be deemed to involve the issuance of securities convertible into more than 20% of our common stock at a discount to the market
value of our common stock on the date of execution of the binding agreement to issue such securities. In addition, NASDAQ Marketplace
Rule 5635(b) requires us to obtain stockholder approval prior to the issuance of securities which will result in a &ldquo;change
of control&rdquo; of the Company. In this regard, a change of control refers to an issuance of securities that will result in any
investor or group owning, or having the right to acquire, 20% or more of the Company&rsquo;s outstanding shares of common stock
or voting power and such ownership or voting power would be the largest ownership 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: justify; border: white 1pt solid">We are requesting
in this Proposal 3 that our stockholders approve the issuance of the common stock issuable upon conversion of the Notes, including
any Early Conversion Payment, and exercise of the Warrants, in accordance with NASDAQ Marketplace Rule 5635(d), and any resulting
change of control, as defined in NASDAQ Marketplace Rule 5635(b), which may result from the issuance of the common stock. The issuance
of the shares of common stock issuable upon conversion of the Notes, including any Early Conversion Payment, and exercise of the
Warrants, are intended to be exempt from the registration requirements of the Securities Act pursuant to the Regulation D &ldquo;safe
harbor&rdquo; provisions of the Securities Act.</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>Impact on Current Stockholders if this Proposal is Approved</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">If our stockholders approve this proposal, the issuance of shares
of common stock upon conversion of the Notes, including any Early Payment Conversion, and exercise of the Warrants would not be
subject to the issuance limitation cap set forth in NASDAQ Marketplace Rule 5635(b) and Rule 5635(d).</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">The issuance of shares of our common stock issuable upon conversion
of the Notes, including the Early Payment Conversion, and exercise of the Warrants would have a dilutive effect on current stockholders
who did not participate in the offering in that the percentage ownership of the Company held by such current stockholders would
decline as a result of the issuance of the common stock upon conversion of the Notes, including any Early Payment Conversion, and
exercise of the Warrants. This means also that our current stockholders who did not participate in the offering would own a smaller
interest in us as a result of the offering and therefore have less ability to influence significant corporate decisions requiring
stockholder approval. Issuance of our common stock upon conversion of the Notes and exercise of the Warrants could also have a
dilutive effect on book value per share and any future earnings per share. Dilution of equity interests could also cause prevailing
market prices for our common stock to decline.</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">The Notes are initially convertible into our common stock at
$1.364 per share, subject to adjustment in certain events as outlined in the Indenture. In addition, we have the option, subject
to the satisfaction of specified equity conditions, to make any required Early Conversion Payment of future interest upon conversion
of the Notes by issuing shares of common stock in lieu of cash payments. The number of shares of our common stock potentially issuable
upon conversion of the originally-issued $16 million in principal amount of Notes at the $1.364 initial conversion price amounts
to 11,730,240 potential shares. This does not include the issuance of any shares of common stock that may be issued in connection
with any Early Conversion Payment, in which case the number of shares that may potentially be issued would be a higher amount.
The conversion was calculated on the aggregate principal amount rather than based upon each individual investor&rsquo;s purchase.
Plus, if all of the Warrants are exercised at the initial exercise price of $1.364 per share, the Company would also issue an aggregate
of 4,355,600 shares of common stock.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Due to potential adjustments to the number of shares of common
stock issuable upon conversion of the Notes, including our option to pay the Early Conversion Payment in shares of common stock,
and exercise of the Warrants, the exact magnitude of the dilutive effect of the shares of our common stock issuable upon conversion
of the Notes, including any Early Conversion Payment, and exercise of the Warrants cannot be conclusively determined. However,
the dilutive effect may be material to current stockholders of the company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Effect on Current Stockholders if this Proposal is not Approved</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">If our stockholders do not approve this proposal, we will not
meet certain equity conditions under the Notes required for our optional redemption of the Notes or payment of the Early Conversion
Payment in shares of common stock at our option. If approval is not obtained, unless the equity conditions are waived by the required
number of holders of such Notes pursuant to their terms, we will not be able to exercise such optional redemption right and the
holders may not be able to receive shares of common stock as payment for any Early Conversion Payment.</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">In addition, we will be required to seek stockholder approval
of this proposal on or prior to May 15, 2017 and every year thereafter until we receive stockholder approval of this proposal.
We are not seeking the approval of our stockholders to authorize our entry into the Purchase Agreement and related transaction
documents, as we have already entered into the Purchase Agreement and related transaction documents, which are binding obligations
on us. The failure of our stockholders to approve the proposal will not negate the existing terms of the documents relating to
the private placement. The Notes and Warrants issued at the closing of the private placement will remain outstanding and the terms
of the Notes and Warrants will remain binding obligations of the Company.</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"><B>Board Recommendation</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 0pt 0in; text-align: left; text-indent: 0in">In reaching
its determination to approve this proposal, the Board, with advice from our management and legal advisors, considered a number
of factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&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: left">that it is in the best interests of the Company and our stockholders that the Company have the
flexibility to issue shares of our common stock upon conversion of the Notes and any Early Conversion Payment, rather than being
required to pay cash in lieu of any such issuances in excess of the amount permitted under the NASDAQ Marketplace Rules;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">it was the determination of the Board that the offering of the Notes and Warrants was an important
event to strengthen our balance sheet;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the fact that the proceeds from the offering of the Notes and Warrants have enabled us to advance
our strategic direction;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">our financial condition, results of operations, cash flow and liquidity, including our outstanding
debt obligations, which required us to raise additional capital for ongoing cash needs;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the fact that our management and certain of our directors had explored financing options with other
potential investors and were not aware of an ability for us to obtain the financing needed for our ongoing cash needs on comparable
or better terms to the Notes and Warrant, or at all;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the fact that our stockholders would have an opportunity to approve the issuance of shares issuable
upon the conversion of the Notes, including any Early Conversion Payment, and exercise of the Warrants;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the fact that our stockholders who did not participate in the offering of the Notes and the value
of our common stock may be diluted upon the issuance of shares of our common stock issuable upon conversion of the Notes, including
any Early Conversion Payment, and exercise of the Warrants;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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; text-align: left"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the fact that the conversion price for the Notes and exercise price for the Warrants on the date we entered into the Purchase
Agreement was, effectively, at a discount to the market price of our common stock; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>


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<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>the fees and expenses to be incurred by us in connection with the offering of the Notes and Warrants.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In view of the variety of factors considered in connection with
the evaluation of the offering of the Notes and Warrants, the issuance of shares of our common stock issuable upon the conversion
of the Notes, including any Early Conversion Payment, and exercise of the Warrants and the complexity of these matters, the Board
did not find it practicable to, and did not, quantify or otherwise attempt to assign any relative weight to the various factors
considered. In addition, in considering the various factors, individual members of the Board may have assigned different weights
to different factors.</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">After evaluating these factors, and based upon their knowledge
of our business, financial condition and prospects, potential financing alternatives (or lack thereof), and the views of our management,
the Board concluded that the offering of the Notes and Warrants and the issuance of shares of our common stock issuable upon conversion
of the Notes, including any Early Conversion Payment, and exercise of the Warrants is in our best interest and in the best interests
of our stockholders, and recommends that all stockholders vote &ldquo;FOR&rdquo; the approval of this proposal.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Vote Required</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">To be approved, this proposal must receive a &quot;For&quot;
vote from the holders of a majority of the votes cast of shares of common stock and Preferred Stock, voting together as a single
class on an as-converted to common stock basis, at the Annual Meeting in person or by proxy. Abstentions will be counted toward
the vote total for this proposal and will have the same effect as an &ldquo;Against&rdquo; vote for this proposal. Shares represented
by executed proxies that do not indicate a vote &quot;For,&quot; &quot;Against&quot; or &quot;Abstain&quot; will be voted by the
proxy holders &quot;For&quot; the adoption of the resolution. If you own shares through a bank, broker or other holder of record,
you must instruct your bank, broker or other holder of record how to vote in order for them to vote your shares so that your vote
can be counted on this proposal. Broker non-votes will not be counted toward the vote total for this proposal and therefore will
not affect the outcome of this proposal.</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%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>THE BOARD OF DIRECTORS RECOMMENDS A VOTE &ldquo;FOR&rdquo; THIS PROPOSAL 3.</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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; text-align: center"><B>PROPOSAL 4</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REVERSE STOCK SPLIT</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>Introduction</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">Our Board has unanimously approved and recommended to our stockholders
an amendment to our certificate of incorporation, as amended (&ldquo;Certificate of Incorporation&rdquo;), to effect a reverse
stock split by a ratio of not less than one-for-two (1:2)&nbsp;and not greater than one-for-fifteen (1:15), with the exact ratio
to be set as a whole number within this range determined by our Board and a related reduction in the authorized number of shares
of our common stock based on the reverse stock split ratio set by the Board (except in the case of a one-for-two ratio in which
case no adjustment to the number of authorized shares of Common Stock will be made) (collectively, the &ldquo;Reverse Stock Split&rdquo;).
If this Proposal&nbsp;4 is approved, our Board may (but is not required to) effect the Reverse Stock Split on or before March 31,
2018, which is the end of our fiscal year 2018, without further stockholder approval. Even if this Proposal&nbsp;4 is approved,
our Board may decide not to effect the Reverse Stock Split at all if it determines that the Reverse Stock Split is not an effective
course of action to achieve corporate objectives.</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">The Reverse Stock Split will have no effect on the par value
of our common stock. The Company will pay cash in lieu of any fractional shares resulting from the Reverse Stock Split. The Reverse
Stock Split will have the effect of reducing the number of outstanding shares of common stock by the chosen ratio and also will
reduce the number of authorized shares of common stock by the chosen ratio, except in the case of a one-for-two reverse split ratio.
The proposed form of amendment to our Certificate of Incorporation to implement the Reverse Stock Split is attached to this proxy
statement as <U>Annex&nbsp;A</U> (the &ldquo;Certificate of Amendment&rdquo;).</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>Reasons for the Reverse Stock Split</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">Our common stock is listed on the NASDAQ Capital Market which
has a continued listing requirement of $1.00 per share. The common stock is currently trading below $1.00 per share. Our Board
is submitting this Reverse Stock Split to our stockholders for approval with the primary intent of giving us the flexibility to
increase the market price of our common stock to enhance our ability to maintain the listing requirements of the NASDAQ Capital
Market and to make our common stock more attractive to a broader range of institutional and other investors.</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">We value our listing on the NASDAQ Capital Market and will consider
implementing the Reverse Stock Split in order to assist in maintaining such listing. In addition, we also believe that the low
market price of our common stock impairs its acceptability to important segments of the financial community and the investing public.
Many investors look upon low-priced stock as unduly speculative in nature and, as a matter of policy, avoid investment in such
stocks. We believe that the low market price of our common stock has reduced the effective marketability of those shares because
of the reluctance of many leading brokerage firms to recommend low-priced stock to their clients. Further, a variety of brokerage
house policies and practices tend to discourage individual brokers within those firms from dealing in low-priced stocks. Some of
those policies and practices pertain to the payment of brokers&rsquo; commissions and to time-consuming procedures that function
to make the handling of low-priced stocks unattractive to brokers from an economic standpoint. Finally, the internal guidelines
of many institutional investors prohibit the purchase of stock trading below certain minimum prices, typically $1.00 to $5.00.</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">In order to provide maximum flexibility, we are submitting this
proposal with a range of exchange ratios of not less than one-for-two (1:2) and not greater than one-for-fifteen (1:15). The need
for the broad range is due to the volatility of the stock price which ranged from a high of $[____] to a low of $[____] during
the twelve months prior to November 21, 2016.</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">We believe that enabling our Board to set the ratio within the
stated range will provide us with the flexibility to implement the Reverse Stock Split in a manner designed to maximize the anticipated
benefits for our stockholders.&nbsp;In determining whether to implement the Reverse Stock Split and selecting the exchange ratio,
our Board will consider factors such as:</P>

<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>Maintaining the listing standards of NASDAQ Stock Market;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>


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<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>The status of the common stock listing on the NASDAQ Capital Market and the listing standards of other stock exchanges; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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>The historical trading price and trading volume of our common stock;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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>The number of shares of our common stock outstanding;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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>The then prevailing trading price and trading volume for our common stock;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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>The anticipated impact of the Reverse Stock Split on the trading price of and market for our common stock; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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>Prevailing general market and economic conditions.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Reducing the number of outstanding shares of our common stock
through a reverse stock split is intended, absent other factors, to increase the per share market price of our common stock. However,
other factors, such as our financial results, market conditions and the market perception of our business may adversely affect
the market price of our common stock. As a result, there can be no assurance that the Reverse Stock Split, if completed, will result
in the intended benefits described above, that the market price of our common stock will increase following the Reverse Stock Split
or that the market price of our common stock will not decrease in the future. Additionally, we cannot assure you that the market
price per share of our common stock after a reverse stock split will increase in proportion to the reduction in the number of shares
of our common stock outstanding before the Reverse Stock Split. Accordingly, the total market capitalization of our common stock
after the Reverse Stock Split may be lower than the total market capitalization before the Reverse Stock Split.</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">Our Board will have sole discretion as to the exact timing and
precise exchange ratio of the Reverse Stock Split within the range of ratios specified in this Proposal 4 until March 31, 2018,
which is the end of our fiscal year 2018. Our Board may also determine that the Reverse Stock Split is no longer in the best interests
of the Company and its stockholders and decide to abandon the Reverse Stock Split, at any time before, during or after the Annual
Meeting and prior to its effectiveness, without further action by the stockholders.</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"><B>Effect of the Reverse Split on Our Common Stock</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">Depending on the ratio for the Reverse Stock Split determined
by our Board, a minimum of two and a maximum of fifteen shares of existing common stock will be combined into one new share of
common stock.&nbsp; In addition, the authorized number of shares of our common stock will be reduced based on the reverse stock
split ratio set by the Board to the extent set forth in the table below. For example, if the Board determines to set the ratio
to combine six shares of existing common stock into one new share of common stock, the authorized number of shares of common stock
will be amended to be one-sixth of the existing number of authorized shares (i.e., equal to the adjustment to the outstanding shares
in the reverse stock split). No change will be made to the number of authorized shares of common stock if the reverse stock split
ratio is set by the Board at two shares combined into one share.</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">The table below shows, as of November 21, 2016, the number of
authorized shares of common stock and the approximate number of outstanding shares of common stock (excluding Treasury shares)
that would result from the listed hypothetical reverse stock split ratios (without giving effect to the treatment of fractional
shares) based on the [_______]&nbsp;shares of common stock issued and outstanding as of such date:</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">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; padding-bottom: 1pt">Reverse Stock Split Ratio</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Approximate&nbsp;Number&nbsp;of&nbsp;Outstanding<BR> Shares of Common&nbsp;Stock Following<BR> the Reverse Stock Split</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number of Authorized Shares of<BR> Common Stock Following the Reverse<BR> Stock Split</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-2</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">100,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-3</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,666,667</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-4</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-5</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-6</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,333,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-7</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,571,429</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-8</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-9</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,222,222</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-10</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-11</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,181,818</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-12</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,666,667</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-13</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,384,615</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-14</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,285,714</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; text-indent: -12pt; padding-left: 12pt">1-for-15</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="background-color: yellow">[_______]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,333,333</TD><TD STYLE="text-align: left">&nbsp;</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">The actual number of shares issued and outstanding after giving
effect to the Reverse Stock Split, if implemented, will depend on the Reverse Stock Split ratio that is ultimately determined by
our 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">The Reverse Stock Split will affect all holders of our common
stock uniformly and will not affect any stockholder&rsquo;s percentage ownership interest in us, except that, as described below
in &ldquo;&mdash; Fractional Shares,&rdquo; record holders of common stock otherwise entitled to a fractional share as a result
of the Reverse Stock Split will receive cash in lieu of such fractional share.&nbsp;In addition, the Reverse Stock Split will not
affect any stockholder&rsquo;s proportionate voting power (subject to the treatment of fractional shares).</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">The Reverse Stock Split may result in some stockholders owning
&ldquo;odd lots&rdquo; of less than 100 shares of common stock.&nbsp;Odd lot shares may be more difficult to sell, and brokerage
commissions and other costs of transactions in odd lots are generally somewhat higher than the costs of transactions in &ldquo;round
lots&rdquo; of even multiples of 100 shares.</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">The Reverse Stock Split will result in the number of authorized
shares of common stock being reduced based on the equivalent of the Reverse Stock Split ratio determined by the Board other than
in the case of a one-for-two reverse split in which case no change will be made to the number of authorized shares of common stock.
Authorized but unissued shares of our common stock and preferred stock are available for future issuance as may be determined by
our Board without further action by our stockholders, unless stockholder approval is required by applicable law or securities exchange
listing requirements in connection with a particular transaction. These additional shares may be issued in the future for a variety
of corporate purposes including, but not limited to, raising additional capital, corporate acquisitions and equity incentive plans.&nbsp;Except
for a stock split or stock dividend, future issuances of common shares will dilute the voting power and ownership of our existing
stockholders and, depending on the amount of consideration received in connection with the issuance, could also reduce stockholders&rsquo;
equity on a per share basis.</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">The Reverse Stock Split could, under certain circumstances,
have an anti-takeover effect (for example, by enhancing our ability to approve future issuances that could dilute the stock ownership
of a person seeking to effect a change in the composition of our Board of Directors or contemplating a tender offer or other transaction
involving the Company with another company). This Proposal 4 is not being&nbsp;made&nbsp;in response to any effort of which the
Board is aware to accumulate shares of our common stock or obtain control of the Company nor does the Company currently have any
plans, proposals or arrangements to issue for any purpose, including future acquisitions or financings, any of the newly available
authorized shares of common stock resulting from a change in the authorized shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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>Procedure for Implementing the Reverse Stock Split</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">The Reverse Stock Split, if approved by our stockholders, would
become effective upon the filing (the &ldquo;Effective Time&rdquo;) of a certificate of amendment to our Certificate of Incorporation
with the Secretary of State of the State of Delaware. The exact timing of the filing of the certificate of amendment that will
effect the Reverse Stock Split will be determined by our Board based on its evaluation as to when such action will be the most
advantageous to us and our stockholders.&nbsp;In addition, our Board reserves the right, notwithstanding stockholder approval and
without further action by the stockholders, to elect not to proceed with the Reverse Stock Split if, at any time prior to filing
the amendment to our Certificate of Incorporation, our Board, in its sole discretion, determines that it is no longer in our best
interest and the best interests of our stockholders to proceed with the Reverse Stock Split.&nbsp;If a certificate of amendment
effecting the Reverse Stock Split has not been filed with the Secretary of State of the State of Delaware by the close of business
on March 31, 2018, our Board will abandon the Reverse Stock Split.</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">After the Effective Time, our common stock will have a new Committee
on Uniform Securities Identification Procedures (&ldquo;CUSIP&rdquo;) number, which is a number used to identify our equity securities,
and stock certificates with the older CUSIP number will need to be exchanged for stock certificates with the new CUSIP number by
following the procedures described below.</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"><B>Beneficial Holders of Common Stock (i.e., stockholders who
hold in street name)</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">Upon the implementation of the Reverse Stock Split, we intend
to treat shares held by stockholders through a bank, broker, custodian or other nominee in the same manner as registered stockholders
whose shares are registered in their names. Banks, brokers, custodians or other nominees will be instructed to effect the Reverse
Stock Split for their beneficial holders holding our common stock in street name. However, these banks, brokers, custodians or
other nominees may have different procedures than registered stockholders for processing the Reverse Stock Split. Stockholders
who hold shares of our common stock with a bank, broker, custodian or other nominee and who have any questions in this regard are
encouraged to contact their banks, brokers, custodians or other nominees.</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"><B>Registered </B>&ldquo;<B>Book-Entry</B>&rdquo;<B> Holders
of Common Stock (i.e., stockholders that are registered on the transfer agent&rsquo;s books and records but do not hold stock certificates)</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">Certain of our registered holders of common stock may hold some
or all of their shares electronically in book-entry form with the transfer agent. These stockholders do not have stock certificates
evidencing their ownership of the common stock. They are, however, provided with a statement reflecting the number of shares registered
in their accounts.</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">Stockholders who hold shares electronically in book-entry form
with the transfer agent will not need to take action (the exchange will be automatic) to receive whole shares of post-Reverse Stock
Split common stock, subject to adjustment for treatment of fractional shares.</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"><B>Exchange of Stock Certificates and Elimination of Fractional
Share Interests</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">As soon as practicable after filing the certificate of amendment
to our Certificate of Incorporation effecting a Reverse Stock Split with the Secretary of State of Delaware, stockholders will
receive instructions for the exchange of their common stock certificates for new certificates representing the appropriate number
of shares of common stock after the Reverse Stock Split. However, if permitted, the Company may elect to effect the exchange in
the ordinary course of trading as certificates are returned for transfer. In either event, each current certificate representing
shares of common stock will until so exchanged be deemed for all corporate purposes after the filing date to evidence ownership
of our common stock in the proportionately reduced number. An exchange agent may be appointed to act for stockholders in effecting
the exchange of their certificates.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Stockholders should <I><U>NOT</U></I> destroy any stock certificates
or submit their stock certificates now. You should submit them only after you receive instructions from us or our exchange agent.</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">No service charges, brokerage commissions or transfer taxes
will be payable by any stockholder, except that if any new stock certificates are to be issued in a name other than that in which
the surrendered certificate(s) are registered it will be a condition of such issuance that (1)&nbsp;the person requesting such
issuance pays all applicable transfer taxes resulting from the transfer (or prior to transfer of such certificate, if any) or establishes
to our satisfaction that such taxes have been paid or are not payable, (2)&nbsp;the transfer complies with all applicable federal
and state securities laws, and (3)&nbsp;the surrendered certificate is properly endorsed and otherwise in proper form for transfer.</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"><B>Fractional Shares</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">We do not currently intend to issue fractional shares in connection
with the Reverse Stock Split.&nbsp;Therefore, we will not issue certificates representing fractional shares.&nbsp;In lieu of issuing
fractions of shares, we intend to pay cash as follows:</P>

<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: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>If a stockholder&rsquo;s shares are held in street name, payment for the fractional shares will be deposited directly into
the stockholder&rsquo;s account with the organization holding the stockholder&rsquo;s shares.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>If the stockholder&rsquo;s shares are registered directly in the stockholder&rsquo;s name, payment for the fractional shares
will be made by check, sent to the stockholder directly from our transfer agent upon receipt of the properly completed and executed
transmittal letter and original stock certificates.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.5in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The amount of cash to be paid for fractional shares will be equal to the product obtained by multiplying:</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.8in"></TD><TD STYLE="width: 0.3in">&#9633;</TD><TD>The average closing price of our common stock as reported by the NASDAQ Capital Market for the five trading days immediately
preceding the date of the Reverse Stock Split, or if our common stock is not at such time traded on the NASDAQ Capital Market,
then as reported on the primary trading market for our common stock; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.8in"></TD><TD STYLE="width: 0.3in">&#9633;</TD><TD>The amount of the fractional share.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Those stockholders who hold less than the number of shares set
forth in the Reverse Stock Split ratio would be eliminated as a result of the payment of fractional shares in lieu of any fractional
share interest in connection with the Reverse Stock Split.&nbsp;The Board reserves the right to aggregate all fractional shares
for cash and arrange for their sale, with the aggregate proceeds from such sale being distributed to the holders of fractional
shares on a pro rata basis.</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"><B>Effect of the Reverse Stock Split on Employee Plans, Options,
Restricted Stock Awards and Units, Warrants, and Convertible or Exchangeable Securities</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">Based upon the Reverse Stock Split ratio determined by our Board,
proportionate adjustments are generally required to be made to the per share exercise price and the number of shares issuable upon
the exercise or conversion of all outstanding options, warrants, convertible or exchangeable securities entitling the holders to
purchase, exchange for, or convert into, shares of common stock.&nbsp;This would result in approximately the same aggregate price
being required to be paid under such options, warrants, convertible or exchangeable securities upon exercise, and approximately
the same value of shares of common stock being delivered upon such exercise, exchange or conversion, immediately following the
Reverse Stock Split as was the case immediately preceding the Reverse Stock Split.&nbsp;The number of shares deliverable upon settlement
or vesting of restricted stock awards will be similarly adjusted, subject to our treatment of fractional shares.&nbsp;The number
of shares reserved for issuance pursuant to these securities will be proportionately based upon the Reverse Stock Split ratio determined
by the Board, subject to our treatment of fractional shares.</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"><B>Accounting 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">This proposed amendment to our Certificate of Incorporation
will not affect the par value of our common stock per share, which will remain $0.0001 par value per share.&nbsp;As a result, as
of the Effective Time, the stated capital attributable to common stock will be proportionately reduced based on the applicable
ratio used in the Reverse Stock Split and the additional paid-in capital account on our balance sheet will not be materially affected
due to the Reverse Stock Split.&nbsp;Reported per share net income or loss will be higher because there will be fewer shares of
common stock outstanding.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Certain Federal Income Tax Consequences</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">The following summary describes certain material U.S. federal
income tax consequences of the Reverse Stock Split to holders of our common stock.</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">Unless otherwise specifically indicated herein, this summary
addresses the tax consequences only to a beneficial owner of our common stock that is a citizen or individual resident of the United
States, a corporation organized in or under the laws of the United States or any state thereof or the District of Columbia or otherwise
subject to U.S. federal income taxation on a net income basis in respect of our common stock (a &ldquo;U.S. holder&rdquo;).&nbsp;A
trust may also be a U.S. holder if (1)&nbsp;a U.S. court is able to exercise primary supervision over administration of such trust
and one or more U.S. persons have the authority to control all substantial decisions of the trust or (2)&nbsp;it has a valid election
in place to be treated as a U.S. person.&nbsp;An estate whose income is subject to U.S. federal income taxation regardless of its
source may also be a U.S. holder.</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">This summary does not address all of the tax consequences that
may be relevant to any particular investor, including tax considerations that arise from rules of general application to all taxpayers
or to certain classes of taxpayers or that are generally assumed to be known by investors.&nbsp;This summary also does not address
the tax consequences to (i)&nbsp;persons that may be subject to special treatment under U.S. federal income tax law, such as banks,
insurance companies, thrift institutions, regulated investment companies, real estate investment trusts, tax-exempt organizations,
U.S.&nbsp;expatriates, persons subject to the alternative minimum tax, traders in securities that elect to mark to market and dealers
in securities or currencies, (ii)&nbsp;persons that hold our common stock as part of a position in a &ldquo;straddle&rdquo; or
as part of a &ldquo;hedging,&rdquo; &ldquo;conversion&rdquo; or other integrated investment transaction for federal income tax
purposes, or (iii)&nbsp;persons that do not hold our common stock as &ldquo;capital assets&rdquo; (generally, property held for
investment). If a partnership (or other entity classified as a partnership for U.S. federal income tax purposes) is the beneficial
owner of our common stock, the U.S. federal income tax treatment of a partner in the partnership will generally depend on the status
of the partner and the activities of the partnership.&nbsp;Partnerships that hold our common stock, and partners in such partnerships,
should consult their own tax advisors regarding the U.S. federal income tax consequences of the Reverse Stock Split.</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">This summary is based on the provisions of the Internal Revenue
Code of 1986, as amended, U.S. Treasury regulations, administrative rulings and judicial authority, all as in effect as of the
date of this proxy statement.&nbsp;Subsequent developments in U.S. federal income tax law, including changes in law or differing
interpretations, which may be applied retroactively, could have a material effect on the U.S. federal income tax consequences of
the Reverse Stock Split.</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"><B>PLEASE CONSULT YOUR OWN TAX ADVISOR REGARDING THE U.S. FEDERAL,
STATE, LOCAL, AND FOREIGN INCOME AND OTHER TAX CONSEQUENCES OF THE REVERSE STOCK SPLIT IN YOUR PARTICULAR CIRCUMSTANCES UNDER THE
INTERNAL REVENUE CODE AND THE LAWS OF ANY OTHER TAXING JURISDICTION.</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">The Reverse Stock Split should be treated as a recapitalization
for U.S. federal income tax purposes.&nbsp;Therefore, a stockholder generally will not recognize gain or loss on the Reverse Stock
Split, except to the extent of cash, if any, received in lieu of a fractional share interest in the post-Reverse Stock Split shares.
The aggregate tax basis of the post-split shares received will be equal to the aggregate tax basis of the pre-split shares exchanged
therefore (excluding any portion of the holder&rsquo;s basis allocated to fractional shares), and the holding period of the post-split
shares received will include the holding period of the pre-split shares exchanged.</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">A holder of the pre-split shares who receives cash will generally
recognize gain or loss equal to the difference between the portion of the tax basis of the pre-split shares allocated to the fractional
share interest and the cash received. Such gain or loss will be a capital gain or loss and will be short term if the pre-split
shares were held for one year or less and long term if held more than one 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">No gain or loss will be recognized by us as a result of the
Reverse Stock Split.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>No Appraisal Rights</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">Stockholders have no rights under Delaware law or under our
charter documents to exercise dissenters&rsquo; rights of appraisal with respect to the Reverse Stock Split.</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"><B>Vote Required</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">This Proposal 4 requires the affirmative vote of a majority
of the outstanding shares of our common stock and Preferred Stock voting together as a single class on an as-converted to common
stock basis. Stockholders may vote &ldquo;for&rdquo; or &ldquo;against&rdquo; the proposal, or they may abstain from voting on
the proposal. Abstentions and broker non-votes will have the same effect as vote &ldquo;against&rdquo; this Proposal 4. The proxy
holders will vote your shares in accordance with your instructions. If you have not given specific instructions to the contrary,
your shares will be voted &ldquo;FOR&rdquo; the approval of this Proposal 4.</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"><B>Board Recommendation</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; border: Black 1pt solid"><B>THE BOARD OF
DIRECTORS RECOMMENDS A VOTE &ldquo;FOR&rdquo; THE REVERSE STOCK SPLIT AS DESCRIBED IN THIS PROPOSAL 4.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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; text-align: center"><B>PROPOSAL NO. 5</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RATIFICATION OF APPOINTMENT OF INDEPENDENT
REGISTERED<BR>
PUBLIC ACCOUNTING FIRM FOR FISCAL YEAR 2017</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">Our audit committee has appointed SingerLewak LLP to audit our
accounts for the fiscal year ending March&nbsp;31, 2017. Such firm, which has served as our independent registered public accounting
firm since April 2009, has reported to us that none of its members has any direct financial interest or material indirect financial
interest in our Company.</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">A proposal will be presented at the Annual Meeting to ratify
the audit committee&rsquo;s appointment of SingerLewak as our independent registered public accounting firm. Although stockholder
ratification of the audit committee&rsquo;s action in this respect is not required, our Board considers it desirable for stockholders
to pass upon such appointment.</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">A representative of SingerLewak is expected to attend the Annual
Meeting and will be afforded the opportunity to make a statement and/or respond to appropriate questions from stockholders.</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">Aggregate fees for professional services rendered to us by SingerLewak
LLP, our independent registered public accounting firm engaged to provide audits for the fiscal years ended March 31, 2016 and
2015, were:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-left: 0">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Year Ended</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>March 31, 2016</B></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Year Ended</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>March 31, 2015</B></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font-weight: bold; padding-left: 0"><B>Audit fees</B><SUP>(1)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">332,978</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">377,284</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 0"><B>Audit related fees</B><SUP>(2)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,149</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,649</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-left: 0"><B>Tax fees</B><SUP>(3)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,611</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 0"><B>All other fees</B><SUP>(4)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,674</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-left: 0">Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">446,738</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">433,607</TD><TD STYLE="text-align: left">&nbsp;</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-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%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.3in">&nbsp;</TD>
    <TD STYLE="width: 0.3in"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Audit<B><I> </I></B>services<B><I> </I></B>include audit work performed in the preparation of financial statements, as well as work that generally only the independent auditor can reasonably be expected to provide, including comfort letters, statutory audits, and attest services and consultation regarding financial accounting and/or reporting standards.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Audit-Related services are for assurance and related services that are traditionally performed by the independent auditor, including due diligence related to mergers and acquisitions, employee benefit plan audits, and special procedures required to meet certain regulatory requirements. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Tax services include all services performed by the independent auditor&rsquo;s tax personnel except those services specifically related to the audit of the financial statements, and includes fees in the areas of tax compliance, tax planning, and tax advice.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Other Fees are those associated with services not captured in the other categories, including but are not limited to M&amp;A and financing.</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">Prior to engagement, the Audit Committee pre-approves these
services by category of service. The fees are budgeted and the Audit Committee requires the independent auditor and management
to report actual fees versus the budget periodically throughout the year by category of service. During the year, circumstances
may arise when it may become necessary to engage the independent auditor for additional services not contemplated in the original
pre-approval. In those instances, the Audit Committee requires specific pre-approval before engaging the independent auditor.</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">The Audit Committee may delegate pre-approval authority to one
or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval
decisions to the Audit Committee at its next scheduled meeting.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Audit Committee pre-approved the retention of our independent
registered public accounting firm for all audit and audit-related services during fiscal years 2016 and 2015.</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; border: Black 1pt solid"><B>THE BOARD OF
DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE &ldquo;FOR&rdquo; RATIFICATION OF THE APPOINTMENT OF SINGERLEWAK AS OUR INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING MARCH 31, 2017.</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The information contained in this Audit Committee Report
shall not be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of
1934, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing (except
to the extent that we specifically incorporate this information by reference) and shall not otherwise be deemed &ldquo;soliciting
material&rdquo; or &ldquo;filed&rdquo; with the SEC or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of
the Securities Exchange Act of 1934 (except to the extent that we specifically request that this information be treated as soliciting
material or specifically incorporate this information by reference).</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">The functions of our Audit Committee (references in this section
to &ldquo;we&rdquo; and &ldquo;our&rdquo; mean the Audit Committee) are primarily focused on three areas:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in">&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; font-size: 10pt">&middot;</FONT></TD><TD>the adequacy of the internal controls and financial reporting process of Digital Turbine, Inc. (the &ldquo;Company&rdquo;)
and the reliability of its consolidated financial statements;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>the appointment, compensation, retention and oversight of the Company&rsquo;s independent registered public accounting firm;
and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 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: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD>the Company&rsquo;s compliance with legal and regulatory requirements.</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">We operate under a written charter, which has been approved
by the board of directors. The Company has made the Audit Committee charter available on its website at http://ir.digitalturbine.com/governance-docs.</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">We meet with management periodically to consider the adequacy
of the Company&rsquo;s internal controls and the objectivity of the Company&rsquo;s financial reporting. We discuss these matters
with the Company&rsquo;s independent registered public accounting firm and with appropriate financial personnel. We periodically
(at least quarterly) meet privately with both the independent registered public accounting firm and the Company&rsquo;s financial
personnel, each of which has unrestricted access to us. We also appoint the independent registered public accounting firm and review
its performance and independence from management. In addition, we review the Company&rsquo;s financing plans.</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">Management is responsible for the financial reporting process,
including the system of internal control, and the preparation of consolidated financial statements in accordance with generally
accepted accounting principles. The Company&rsquo;s independent registered public accounting firm is responsible for auditing those
financial statements. Our responsibility is to monitor and review these processes. However, we are not professionally engaged in
the practice of accounting or auditing and are not experts in the fields of accounting or auditing, including with respect to auditor
independence. We rely on, without independent verification, the information provided to us and on the representations made by management
and the independent registered public accounting 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">In this context, we held five meetings during fiscal year 2016.
The meetings were designed, among other things, to facilitate and encourage communication among us, management, the internal accountants
and the Company&rsquo;s independent registered public accounting firm for fiscal year 2016, SingerLewak LLP (&ldquo;SingerLewak&rdquo;).
We discussed with SingerLewak the overall scope and plans for their audit. We also met with SingerLewak, with and without management
present, to discuss the results of their audit and quarterly reviews and the Company&rsquo;s internal controls. We reviewed and
discussed the audited consolidated financial statements for the fiscal year ended March&nbsp;31, 2016 with management and with
SingerLewak.</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">We also discussed with SingerLewak matters required to be discussed
with audit committees under generally accepted auditing standards, including, among other things, matters related to the conduct
of the audit of the Company&rsquo;s consolidated financial statements and the matters required to be discussed by Statement on
Auditing Standards No. 16, <I>Communications with Audit Committees (AS 16)</I>, as adopted by the Public Company Accounting Oversight
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">We have received the written disclosures and the letter from
SingerLewak required by the applicable requirements of the Public Company Accounting Oversight Board regarding the independent
accountants&rsquo; communications with us concerning independence, and we discussed with SingerLewak their independence from the
Company. When considering SingerLewak&rsquo;s independence, we considered whether their provision of services to us beyond those
rendered in connection with their audit and review of the Company&rsquo;s consolidated financial statements was compatible with
maintaining their independence. We also reviewed, among other things, the amount of fees paid to SingerLewak for audit and non-audit
services (primarily tax services).</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Based on our review and these meetings, discussions and reports,
and subject to the limitations on our role and responsibilities referred to above and in the Audit Committee charter, we recommended
to the Board of Directors that the Company&rsquo;s audited consolidated financial statements for the fiscal year ended March 31,
2016 be included in the Company&rsquo;s annual report on Form 10-K for filing with the Securities and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.25in"><I>&nbsp;</I></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: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%"><I>Members of the Audit Committee</I></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Robert Deutschman (Chairman)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Christopher Rogers</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Paul Schaeffer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Craig Forman</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></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; text-align: center"><B>COMPLIANCE WITH SECTION 16(a) OF SECURITIES
EXCHANGE ACT</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">Section 16(a) of the Exchange Act requires our officers, directors,
and persons owning more than ten percent of a registered class of our equity securities (&ldquo;ten percent stockholders&rdquo;)
to file reports of ownership and changes of ownership with the SEC. To the best of our knowledge, based solely on review of the
copies of such reports and amendments thereto furnished to us, we believe that during the fiscal year ended March 31, 2016, all
Section 16(a) filing requirements applicable to our officers, directors, and ten percent stockholders were met, with the exception
that Mr. Stone filed one late Form 4 reporting one transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></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">Our Board of Directors knows of no other matters to be brought
before the Annual Meeting. However, if other matters should come before the meeting, it is the intention of each person named in
the proxy to vote in accordance with his judgment on such matters.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2018 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">Stockholders are entitled to submit proposals on matters appropriate
for stockholder action consistent with regulations of the SEC. In order for stockholder proposals for the fiscal year 2018 annual
meeting to be eligible for inclusion in our proxy statement, our Secretary must receive them at our principal offices not later
than __________, 2017. Such proposals should be submitted, in writing, to Digital Turbine, Inc., Attn: Corporate Secretary,
1300 Guadalupe Street, Suite 302, Austin, TX 78701.</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">Stockholders wishing to submit proposals for the fiscal year
2018 annual meeting of stockholders outside of Rule 14a-8 may do so. Under Rule 14a-4 promulgated under the Exchange Act, if a
proponent of a proposal that is not intended to be included in the proxy statement fails to notify us of such proposal at least
45 days prior to the anniversary of the mailing date of the preceding year&rsquo;s proxy statement, which is ____________, 2017,
or a reasonable time before we send our proxy materials for such meeting if the date of the meeting has changed by more than 30
days from the prior year, then we will be allowed to use our discretionary voting authority under proxies solicited by us when
the proposal is raised at such annual meeting of stockholders, without any discussion of the matter in the proxy statement. We
were not notified of any stockholder proposals to be addressed at our Annual Meeting, and will therefore be allowed to use our
discretionary voting authority if any stockholder proposals are raised at the Annual Meeting.</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%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%">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><B>William G. Stone III</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><I>Chief Executive Officer</I></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">Dated:&nbsp;&nbsp;&nbsp;November [__], 2016<BR>
Austin, Texas</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"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CERTIFICATE OF AMENDMENT</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>CERTIFICATE OF INCORPORATION</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"><FONT STYLE="font-variant: small-caps"><B>DIGITAL
TURBINE, INC.</B></FONT></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">Digital Turbine, Inc.,
a corporation organized and existing under the laws of the State of Delaware (the &quot;<I>Company</I>&quot;), hereby certifies
as follows:</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That the first
sentence of paragraph A and subsections (i) and (ii) of Article FOURTH of the Certificate of Incorporation, as amended, of the
Company are hereby amended and restated in their entirety and a new paragraph is added to such Article FOURTH, each as set forth
below:</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 0pt 0.5in; text-align: justify; text-indent: 0.5in">&quot;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
total number of shares of all classes of stock which the corporation is authorized to issue is [*]<FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal"><SUP>1</SUP></FONT>
shares consisting of:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[*]
shares of common stock, par value $0.0001 per share (the &quot;Common Stock&quot;), and</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 1in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[*]
shares of preferred stock, par value $0.0001 per share (the &quot;Preferred Stock&quot;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">Effective
upon the close of business on ___________, 201_, each [*(*)] shares of the issued and outstanding shares of Common Stock of this
corporation shall thereby and thereupon automatically be combined into one (1) validly issued, fully paid and non-assessable share
of Common Stock of this corporation (the &quot;Reverse Stock Split&quot;). No scrip or fractional shares will be issued by reason
of the Reverse Stock Split. In lieu thereof, cash shall be distributed to each stockholder of the Company who would otherwise have
been entitled to receipt of a fractional share and the amount of cash to be distributed shall be based upon the average closing
price of a share of Common Stock on the NASDAQ Capital Market or other primary trading market for the Common Stock for the five
trading days immediately preceding the effective date of this Certificate of Amendment.&quot;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That the foregoing
amendment has been duly adopted in accordance with the provisions of Section 242 of the Delaware General Corporation Law, by approval
of the board of directors of the Company [at a meeting held on][by unanimous written consent dated] [*], 201_, and by the affirmative
vote of the holders of at least a majority of the outstanding shares of the Company's common stock and Series A preferred stock,
entitled to vote thereon, voting together as a single class on an as-converted to common stock basis, at the meeting of stockholders
of the Company held on January&nbsp;10, 2017. There are no other classes of stock outstanding entitled to vote on this amendment.</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">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That the Effective
Time of the amendment herein certified shall be the close of business on ___________, 201_.</P>

<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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal"><SUP>1</SUP></FONT>
Digital Turbine's charter currently reads 101,000,000 shares authorized: 100,000,000 shares of common, par value $0.0001, and 1,000,000
shares of preferred stock, par value $0.0001. If the Reverse Split is effectuated, the authorized common shares will be adjusted
by dividing 100,000,000 by one half the reverse split ratio number listed in brackets in the second paragraph of the amendment
except that no change will be made to the number of authorized shares of common stock if the reverse split ratio used is 1-for-2.</P>

<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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the Company has caused this Certificate of Amendment of Amended and Restated Certificate of Incorporation to be duly executed by
its authorized officer this [*]&nbsp;day of [*], 201_.</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>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Digital Turbine, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 46%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">[name]</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">[title]</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></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: center"><B>PROXY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>THIS PROXY IS SOLICITED ON BEHALF OF
THE BOARD OF DIRECTORS OF</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>JANUARY 10, 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 23pt">The undersigned stockholder(s) of DIGITAL
TURBINE, INC., a Delaware corporation (the &quot;Company&quot;), hereby acknowledges receipt of the Notice of Annual Meeting of
Stockholders and Proxy Statement, each dated November [__], 2016, and hereby appoints each of William G. Stone and Barrett Garrison,
or either of them, as proxy and attorney-in-fact with full power of substitution, on behalf and in the name of the undersigned,
to represent the undersigned at the Annual Meeting of Stockholders of the Company to be held on Tuesday, January&nbsp;10, 2017
at 10&nbsp;a.m., local time, at 11355 W. Olympic Blvd, Los Angeles, CA &nbsp;90064 and at any adjournment or adjournments thereof,
and to vote all shares of capital stock that the undersigned would be entitled to vote if then and there personally present, on
the matters set forth on the reverse side.</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">[SEE REVERSE SIDE] CONTINUED AND TO BE SIGNED
ON REVERSE SIDE [SEE REVERSE SIDE]</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-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>[BACK OF PROXY]</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DETACH HERE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">THIS PROXY CARD IS VALID ONLY WHEN SIGNED
AND DATED.</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: 4%"><FONT STYLE="font-family: Wingdings">x</FONT></TD>
    <TD STYLE="width: 96%">Please mark votes as in this example</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1. TO ELECT DIRECTORS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 9pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 9pt">Nominees:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 97%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; margin-left: 0.2in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 47%; border: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">(1) Robert Deutschman</TD>
    <TD STYLE="width: 53%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">(2) Craig Forman</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">(3) Jeffrey Karish</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">(4) Christopher Rogers</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">(5) Paul Schaeffer</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">(6) Mohan Gyani</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">(7) William G. Stone III</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</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: 97%; border-collapse: collapse; margin-left: 0.15in">
<TR>
    <TD STYLE="vertical-align: top; width: 28%"><FONT STYLE="font-family: Wingdings">&uml;</FONT> FOR ALL NOMINEES</TD>
    <TD STYLE="vertical-align: bottom; width: 32%"><FONT STYLE="font-family: Wingdings">&uml;</FONT> WITHHOLD ALL NOMINEES</TD>
    <TD STYLE="vertical-align: top; width: 40%; text-decoration: none"><FONT STYLE="font-family: Wingdings">&uml;</FONT> FOR ALL
    NOMINEES EXCEPT _________</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt">Instructions: To withhold authority to vote for any
individual nominee, mark the &ldquo;For All Nominees Except&rdquo; box and write that nominee&rsquo;s name in the space provided
above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt">&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: 70%; border: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2. To approve, in a non-binding advisory vote, the compensation
        of the Company's named executive officers, commonly referred to as &ldquo;say-on-pay.&rdquo;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD STYLE="width: 6%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">FOR</P>
        <P STYLE="font: 10pt Wingdings; margin: 0pt 0">&uml;</P></TD>
    <TD STYLE="width: 9%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">AGAINST</P>
        <P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.25in">&uml;</P></TD>
    <TD STYLE="width: 15%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ABSTAIN</P>
        <P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.25in">&uml;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3. To approve, in accordance with Nasdaq marketplace rules 5635(b)
        and 5635(d), issuance of shares of the common stock of Digital Turbine, Inc. issuable upon the conversion of 8.75% convertible
        senior notes due 2020 and exercise of warrants issued in a private placement transaction in September 2016.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">FOR</P>
        <P STYLE="font: 10pt Wingdings; margin: 0pt 0">&uml;</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">AGAINST</P>
        <P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.25in">&uml;</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; border-right: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ABSTAIN</P>
        <P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.25in">&uml;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4. To approve an amendment of the restated certificate of incorporation,
        as amended, of Digital Turbine, Inc. to effect a reverse stock split of the Company's common stock at a ratio to be determined
        by the board of directors within a specified range and a related reduction in the authorized number of shares of our common stock
        based on the reverse stock split ratio, except in the case of a one-for-two reverse split ratio.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">FOR</P>
        <P STYLE="font: 10pt Wingdings; margin: 0pt 0">&uml;</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">AGAINST</P>
        <P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.25in">&uml;</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; border-right: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ABSTAIN</P>
        <P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.25in">&uml;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5. To ratify the selection of SingerLewak LLP as the Company's
        independent registered public accounting firm of for the fiscal year ending March 31, 2017.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">FOR</P>
        <P STYLE="font: 10pt Wingdings; margin: 0pt 0">&uml;</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">AGAINST</P>
        <P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.25in">&uml;</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; border-right: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ABSTAIN</P>
        <P STYLE="font: 10pt Wingdings; margin: 0pt 0 0pt 0.25in">&uml;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As to any other matters that may properly come before the meeting
or any adjournments thereof, the proxy holders are authorized to vote in accordance with their best judgment.</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%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 58%">MARK HERE FOR ADDRESS CHANGE AND NOTE AT RIGHT.</TD>
    <TD STYLE="width: 42%"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>PLEASE CHECK HERE IF YOU PLAN TO ATTEND THE MEETING.</TD>
    <TD><FONT STYLE="font-family: Wingdings">&uml;</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">(This Proxy should be marked, dated and signed by the stockholder(s)
exactly as his or her name appears hereon, and returned promptly in the enclosed envelope. Persons signing in a fiduciary capacity
should so indicate. If shares are held by joint tenants or as community property, both must sign.)</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%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%">Signature:</TD>
    <TD STYLE="width: 33%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 6%">&nbsp;</TD>
    <TD STYLE="width: 8%">Date:</TD>
    <TD STYLE="width: 33%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 10%">&nbsp;</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: 10%">Signature:</TD>
    <TD STYLE="width: 33%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 6%">&nbsp;</TD>
    <TD STYLE="width: 8%">Date:</TD>
    <TD STYLE="width: 33%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
</TABLE>
<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>THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED AS DIRECTED,
OR IF NO CONTRARY DIRECTION IS INDICATED, WILL BE VOTED FOR THE ELECTION OF THE DIRECTOR NOMINEES; FOR APPROVAL OF THE ADVISORY
SAY-ON-PAY PROPOSAL; FOR APPROVAL, IN ACCORDANCE WITH NASDAQ MARKETPLACE RULES 5635(B) AND 5635(D), OF THE ISSUANCE OF SHARES OF
COMMON STOCK ISSUABLE UPON THE CONVERSION OF 8.75% CONVERTIBLE SENIOR NOTES DUE 2020 AND EXERCISE OF WARRANTS ISSUED IN A PRIVATE
PLACEMENT TRANSACTION IN SEPTEMBER 2016; FOR APPROVAL OF AN AMENDMENT OF OUR CERTIFICATE OF INCORPORATION, AS AMENDED, TO EFFECT
THE REVERSE STOCK SPLIT; AND FOR THE RATIFICATION OF THE APPOINTMENT OF SINGERLEWAK LLP AS THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM OF DIGITAL TURBINE, INC. FOR FISCAL YEAR MARCH 31, 2017. THIS PROXY ALSO CONFERS DISCRETIONARY AUTHORITY ON THE PROXY HOLDERS
TO VOTE AS TO ANY OTHER MATTERS THAT MAY BE PROPERLY BROUGHT BEFORE THE ANNUAL MEETING.</B></P>

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