<SEC-DOCUMENT>0001387131-13-004561.txt : 20131209
<SEC-HEADER>0001387131-13-004561.hdr.sgml : 20131209
<ACCEPTANCE-DATETIME>20131209124131
ACCESSION NUMBER:		0001387131-13-004561
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20140130
FILED AS OF DATE:		20131209
DATE AS OF CHANGE:		20131209
EFFECTIVENESS DATE:		20131209

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LIGHTPATH TECHNOLOGIES INC
		CENTRAL INDEX KEY:			0000889971
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				860708398
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27548
		FILM NUMBER:		131264961

	BUSINESS ADDRESS:	
		STREET 1:		2603 CHALLENGER TECH CT
		STREET 2:		SUITE 100
		CITY:			ORLANDO
		STATE:			FL
		ZIP:			32826
		BUSINESS PHONE:		4073824003
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>lpth-def14a_013014.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
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<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">January 30, 2014</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>This Proxy is solicited and proposed by
the Board of Directors of LightPath Technologies, Inc., </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>which recommends that you vote &ldquo;For&rdquo;
items 1, 2 and 3. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The undersigned hereby appoints Robert Ripp
(the &ldquo;Proxy&rdquo;), with power of substitution, to vote on the following matters, which may properly come before the Annual
Meeting of Stockholders of LightPath Technologies, Inc. to be held on January 30, 2014, or any adjournment or postponement thereof.
The Proxy shall cast votes according to the number of shares of common stock of the Company which the undersigned may be entitled
to vote with respect to the matters set forth below, in accordance with the specification indicated, if any, and shall have all
the powers which the undersigned would possess if personally present. The undersigned hereby revokes any prior proxy to vote at
the Annual Meeting, and hereby ratifies and confirms all that said Proxy may lawfully do by virtue hereof and thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; 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="font-size: 10pt"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD COLSPAN="5">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B><U>Item No.&nbsp;1:</U></B> To
approve the election of Class I Directors. Nominees are:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; width: 3%">&nbsp;</TD>
    <TD STYLE="width: 13%">&nbsp;</TD>
    <TD STYLE="width: 13%; text-align: center">FOR&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: center; width: 12%">WITHHOLD</TD>
    <TD STYLE="text-align: center; width: 12%">&nbsp;<FONT STYLE="text-transform: uppercase">For All Except</FONT></TD>
    <TD STYLE="text-align: center; width: 47%"><FONT STYLE="text-transform: uppercase"></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Robert Ripp</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;<FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Wingdings 2"></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;J. James Gaynor</TD>
    <TD STYLE="text-align: center">FOR</TD>
    <TD STYLE="text-align: center">WITHHOLD</TD>
    <TD STYLE="text-align: center"><FONT STYLE="text-transform: uppercase">For All Except</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;<FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;<FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;<FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="5">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="5"><FONT STYLE="text-transform: uppercase">Instruction</FONT>: To withhold authority to vote for any individual
    nominee, mark &ldquo;For All Except&rdquo; and write that nominee&rsquo;s name in the space provided below.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>

<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="font-size: 10pt; width: 3%"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="width: 97%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B><U>Item No.&nbsp;2:</U></B> An advisory
        vote of the compensation of our named executive officers disclosed in the proxy statement under the section titled &ldquo;Executive
        Compensation&rdquo;, including the compensation tables and other narrative executive compensation disclosures therein, required
        by Item 402 of SEC Regulation S-K..</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;FOR&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;AGAINST <FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;ABSTAIN</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B><U>Item No.&nbsp;3:</U></B> To ratify the
        selection of Cross, Fernandez &amp; Riley LLP as independent auditors.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;FOR&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;AGAINST <FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;ABSTAIN</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In his/her discretion, the proxy is authorized to vote on such other
business as may properly be brought before the Annual Meeting or any adjournment or postponement thereof.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">If you plan to attend the Annual Meeting, please check here </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED
HEREIN BY THE UNDERSIGNED STOCKHOLDER. UNLESS OTHERWISE SPECIFIED, THE SHARES WILL BE VOTED <B>&lsquo;FOR&rsquo;</B> ALL ITEMS
UNDER ITEM NOS. 1, 2 and 3.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The undersigned hereby acknowledges receipt
of the Notice of Annual Meeting of Stockholders of the Company and the Proxy Statement dated December&nbsp;20, 2013 and a copy
of the Company&rsquo;s Annual Report on Form 10-K.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font-size: 10pt">___________________________________________&nbsp;____</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date: _______________ </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font-size: 10pt">___________________________________________&nbsp;____</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date: _______________</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.2pt; text-indent: -12.25pt">Signatures of Stockholder(s)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">NOTE: Signature should agree with name on stock certificate as printed
hereon. Executors, administrators, trustees and other fiduciaries should so indicate when signing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">PLEASE DATE, SIGN AND RETURN THIS PROXY PROMPTLY
USING</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">THE ENCLOSED POSTAGE PAID ENVELOPE THANK YOU</P>

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

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



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center; color: Red"><B><IMG SRC="image_001.jpg" ALT=""></B></P>

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

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

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

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

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>LightPath Technologies, Inc.</B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Annual Meeting of Stockholders</B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>January 30, 2014</B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0"></P>

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

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: center"><B>Notice
and Proxy Statement</B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: center"><B></B></P>

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<P STYLE="font: 24pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: center"><B>&nbsp;<IMG SRC="image_001.jpg" ALT=""></B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.5in; text-align: center; text-indent: 0.5in">December 20, 2013</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">I am pleased to invite
you to the Annual Meeting of the Stockholders of LightPath Technologies, Inc. The meeting will be held on Thursday, January 30,
2014 at 11:00 a.m. EST at the Hyatt Regency Orlando International Airport Hotel. The address is 9300 Airport Boulevard, Orlando,
FL 32827.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">At the meeting, you and
the other stockholders will be asked to elect directors, participate in stockholder advisory votes on our named executive officer
compensation and ratify our independent auditor. You will also have the opportunity to hear what has happened in our business in
the past year and to ask questions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The enclosed Notice and
Proxy Statement contain details concerning the foregoing items and any other business to be conducted at the Annual Meeting. Other
detailed information about LightPath and its operations, including its audited financial statements, are included in our Annual
Report on Form 10-K, a copy of which is enclosed. We urge you to read and consider these documents carefully.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We hope you can join us
at the meeting. Whether or not you expect to attend, please read the enclosed Proxy Statement, <B><I>mark</I></B><I> your votes
on the enclosed proxy card, <B>sign and date it</B>, and <B>return it</B> to us in the enclosed postage-paid envelope</I>. Your
vote is important, so please return your proxy card promptly.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.5in">Sincerely,</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4in; text-indent: 0.5in"><I>Robert Ripp</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.5in">Chairman of the Board</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">&#9;Corporate Headquarters</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">2603 Challenger Tech Court, Suite 100 * Orlando,
Florida USA 32826 * 407-382-4003</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2603 Challenger Tech Court, Suite 100</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Orlando, Florida USA 32826</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>To Be Held On Thursday, January 30, 2014</B></P>

<HR SIZE="1" NOSHADE ALIGN="CENTER" STYLE="width: 21%; color: black">

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">You are cordially invited
to attend the Annual Meeting of Stockholders of LightPath Technologies, Inc., a Delaware corporation (the &ldquo;Company&rdquo;).
The meeting will be held on Thursday, January 30, 2014 at 11:00 a.m. EST at the Hyatt Regency Orlando International Airport Hotel.
The address is 9300 Airport Boulevard, Orlando, FL 32827 for the following purposes:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">1.</TD><TD STYLE="text-align: justify">To elect Class I directors to the Company&rsquo;s Board of Directors;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">2.</TD><TD STYLE="text-align: justify">To hold a stockholder advisory vote on the compensation of our named executive officers disclosed
in this proxy statement under the section titled &ldquo;Executive Compensation&rdquo;, including the compensation tables and other
narrative executive compensation disclosures therein, required by Item 402 of Securities and Exchange Commission Regulation S-K
(a &ldquo;say-on-pay&rdquo; vote);</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">3.</TD><TD STYLE="text-align: justify">To ratify the selection of Cross, Fernandez &amp; Riley LLP as the Company&rsquo;s independent
public accountant; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">4.</TD><TD STYLE="text-align: justify">To transact such other business as may properly come before the Annual Meeting or any postponement
or adjournment thereof.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">These items of business
are more fully described in the proxy statement accompanying this Notice. The record date for the Annual Meeting is December 3,
2013. Only stockholders of record at the close of business on that date may vote at the meeting or any adjournment thereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 4in">By Order of the Board of Directors,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.4pt; text-indent: 4in"><I>J. James Gaynor</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 4in">President &amp; Chief Executive Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 4in">Orlando, Florida</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.4pt; text-indent: 4in">December 20, 2013</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.1pt; text-align: justify">You are cordially invited to attend
the Annual Meeting in person. Whether or not you expect to attend the meeting, <B><I>please</I></B><I> <B>complete, date, sign
and return</B></I> the enclosed proxy as promptly as possible in order to ensure your representation at the meeting. A return envelope
(which is postage prepaid if mailed in the United States) is enclosed for your convenience. Even if you have voted by proxy, you
may still vote in person if you attend the meeting. Please note, if a broker holds your shares of record, bank or other nominee
and you wish to vote at the meeting, you must obtain a proxy issued in your name from that record holder.</P>


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; text-align: center"><B>To
be held January 30, 2014</B></P>

<HR SIZE="3" NOSHADE ALIGN="CENTER" STYLE="width: 22%; color: black">

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2603 Challenger Tech Court, Suite 100</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Orlando, Florida USA 32826</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Proxies in the form enclosed with this proxy
statement are solicited by the Board of Directors of LightPath Technologies, Inc., a Delaware corporation (the &ldquo;Company&rdquo;),
for use at the Annual Meeting of Stockholders to be held Thursday, January 30, 2014 at 11:00 a.m. EST, or at any adjournments or
postponements thereof, for the purposes set forth in the accompanying Notice of Annual Meeting of Stockholders. The Annual Meeting
will be held at 11:00 a.m. EST at the Hyatt Regency Orlando International Airport Hotel. The address is 9300 Airport Boulevard,
Orlando, FL 32827.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 24pt; text-align: justify">References in this proxy statement to
&ldquo;LightPath&rdquo;, &ldquo;we&rdquo;, &ldquo;us&rdquo;, &ldquo;our&rdquo;, or the &ldquo;Company&rdquo; refers to LightPath
Technologies, Inc.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY
MATERIALS FOR THE MEETING OF STOCKHOLDERS TO BE HELD ON JANUARY 30, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This proxy statement, the enclosed proxy card,
and the Annual Report on Form 10-K for the fiscal year ended on June 30, 2013, are made available to you on our website, www.lightpath.com.
With respect to the Annual Meeting and all of our future stockholder meetings, please contact Dorothy Cipolla at 1-800-472-3486
ext. 305, or dcipolla@lightpath.com to request a copy of the proxy statement, annual
report or proxy card or to obtain directions to such meeting.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"><U>Why
am I receiving these materials?</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We sent you this
proxy statement and the enclosed proxy card because our Board of Directors is soliciting your proxy to vote at the Annual Meeting
of Stockholders to be held on Thursday, January 30, 2014 at 11:00 a.m. EST at the Hyatt Regency Orlando International Airport Hotel.
The address is 9300 Airport Boulevard, Orlando, FL 32827. You are invited to attend the Annual Meeting and we request that you
vote on the matters described in this proxy statement. However, you do not need to attend the meeting to vote your shares. Instead,
you may simply complete, sign and return the enclosed proxy card.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">We intend to mail
this proxy statement and accompanying proxy card on or about December 20, 2013 to all stockholders of record entitled to vote
at the Annual Meeting.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><U>Who can vote at the Annual Meeting?</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Only stockholders
of record at the close of business on December 3, 2013 will be entitled to vote at the Annual Meeting. On this record date, there
were 13,800,431 shares of Class A common stock (our only class of common stock) outstanding and entitled to&nbsp;vote.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">Stockholder of Record: Shares Registered in Your Name</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If on December 3,
2013 your shares were registered directly in your name with our transfer agent, Registrar and Transfer Company, then you are a
stockholder of record. As a stockholder of record, you may vote in person at the meeting or vote by proxy. Whether or not you plan
to attend the meeting, we urge you to fill out and return the enclosed proxy card to ensure your vote is counted. Even if you fill
out and return your proxy, you may still vote in person if you are able to attend the meeting.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">Beneficial Owner: Shares Registered in the Name of
a Broker or Bank</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If on December 3,
2013 your shares were held in an account at a brokerage firm, bank, dealer, or other similar organization, then you are the beneficial
owner of shares held in &ldquo;street name&rdquo; and these proxy materials are being forwarded to you by that organization. The
organization holding your account is considered the stockholder of record for purposes of voting at the Annual Meeting. As a beneficial
owner, you have the right to direct your broker or other agent on how to vote the shares in your account. You are also invited
to attend the Annual Meeting. However, since you are not the stockholder of record, you may not vote your shares in person at the
meeting unless you request and obtain a valid proxy from your broker or other agent.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><U>What am I voting on?</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The following matters
are scheduled for the Annual Meeting: (i) the election of two Class I directors to our Board of Directors; (ii) an advisory vote
of the compensation of our named executive officers disclosed in this proxy statement under the section titled &ldquo;Executive
Compensation&rdquo;, including the compensation tables and other narrative executive compensation disclosures therein, required
by Item 402 of Securities and Exchange Commission Regulation S-K (a &ldquo;say-on-pay&rdquo; vote); and (iii) the ratification
of the selection of Cross, Fernandez &amp; Riley LLP as independent auditor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">A vote may also
be held on any other business as may properly come before the Annual Meeting or any postponement or adjournment thereof, although
there is no other business anticipated to come before the Annual Meeting.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><U>Why is it important for me to vote?</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If you are the
beneficial owner of shares held in &ldquo;street name&rdquo; by a broker, the broker, as the record holder of the shares, is
required to vote those shares in accordance with your instructions. If you do not direct your broker how to vote your shares,
the broker will be entitled to vote the shares with respect to &ldquo;discretionary&rdquo; items but will not be permitted to
vote the shares with respect to &ldquo;non-discretionary&rdquo; items (resulting in a &ldquo;broker non-vote&rdquo;). The
ratification of the appointment of our independent public accountant under Item No. 3 is a &ldquo;discretionary&rdquo;
matter. The election of directors under Item No. 1 and the approval of the say-on-pay advisory vote under Item No. 2 are
&ldquo;non-discretionary&rdquo; matters.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><U>How do I vote?</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">With regard to the
election of directors, you may vote &ldquo;For&rdquo; all nominees listed, you may vote &ldquo;withhold all&rdquo;, or you may
vote &ldquo;for all except&rdquo;. With regard to the say-on-pay vote, you may vote &ldquo;For&rdquo; approval of the compensation
of our named executive officers, &ldquo;Against&rdquo; the approval of the compensation of our named executive officers, or abstain
from voting. With regard to the ratification of the appointment of our independent public accountant, you may vote &ldquo;For&rdquo;
or &ldquo;Against&rdquo; or abstain from voting. The procedures for voting are as follows:</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">Stockholder of Record: Shares Registered in Your Name</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If you are a stockholder
of record, you may vote in person at the Annual Meeting or vote by proxy using the enclosed proxy card. Whether or not you plan
to attend the meeting, we urge you to vote by proxy to ensure your vote is counted. You may still attend the meeting and vote in
person if you have already voted by proxy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>To vote in person, come to the Annual Meeting and we will give you a ballot when you arrive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>To vote using the proxy card, simply complete, sign and date the enclosed proxy card and return it promptly in the envelope
provided. If you return your signed proxy card to us before the Annual Meeting, we will vote your shares as you direct.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">Beneficial Owner: Shares Registered in the Name of
Broker or Bank</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If you are a beneficial
owner of shares registered in the name of your broker, bank, or other agent, you should have received a proxy card and voting instructions
with these proxy materials from that organization rather than from the Company. Simply complete and mail the proxy card to ensure
that your vote is counted. To vote in person at the Annual Meeting, you must obtain a valid proxy from your broker, bank, or other
agent. Follow the instructions from your broker or bank included with these proxy materials, or contact your broker or bank to
request a proxy form.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If you fail to complete
a proxy card or provide your broker with voting instructions at least ten days before the meeting, your broker will be unable to
vote on the election of directors and say-on-pay. Your broker may use his or her discretion to cast a vote on any other routine
or discretionary matter.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><U>How many votes do I have?</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">On each matter to
be voted upon, you have one vote for each share of common stock you owned as of December 3, 2013.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><U>What if I return a proxy card but do not make specific
choices?</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If you return a
signed and dated proxy card without marking any voting selections, your shares will be voted &ldquo;For&rdquo; all nominees listed
for Item No. 1, &ldquo;For&rdquo; the compensation of our named executive officers disclosed in this proxy statement under the
section titled &ldquo;Executive Compensation&rdquo;, including the compensation tables and other narrative disclosures therein,
required by Item 402 of SEC Regulation S-K for Item No. 2 and &ldquo;For&rdquo; the ratification of our independent public accountant
for Item No. 3. If any other matter is properly presented at the meeting, your proxy (one of the individuals named on your proxy
card) will vote your shares using his or her best judgment.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><U>Who is paying for this proxy solicitation?</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">LightPath will pay
for the entire cost of soliciting proxies. In addition to these mailed proxy materials, our directors and employees may also solicit
proxies in person, by telephone, or by other means of communication. Directors and employees will not be paid any additional compensation
for soliciting proxies. We will also reimburse brokerage firms, banks and other agents for the cost of forwarding proxy materials
to beneficial owners.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><U>What does it mean if I receive more than one proxy
card?</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If you receive more
than one proxy card, your shares are registered in more than one name or are registered in different accounts. Please complete,
sign and return <B>each</B> proxy card to ensure that all of your shares are voted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><U>What is &ldquo;householding&rdquo;?</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The SEC has adopted
rules that permit companies and intermediaries such as brokers to satisfy the delivery requirements for proxy statements with respect
to two or more security holders sharing the same address by delivering a single proxy statement addressed to those security holders.
This process, which is commonly referred to as &ldquo;householding,&rdquo; potentially means convenience for security holders and
cost savings for companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">A number of brokers
with account holders who are LightPath stockholders will be &ldquo;householding&rdquo; our proxy materials. A single proxy statement
will be delivered to multiple stockholders sharing an address unless contrary instructions have been received from the affected
stockholders. Once you have received notice from your broker or us that they will be &ldquo;householding&rdquo; communications
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,
please notify your broker and also notify us by sending your written request to Investor Relations, LightPath Technologies, Inc.,
2603 Challenger Tech Court, Suite 100, Orlando, Florida USA 32826 or by calling Investor Relations at 407-382-4003, ext. 314. Stockholders
who currently receive multiple copies of the proxy statement at their address and would like to request &ldquo;householding&rdquo;
of their communications should also contact their broker and notify us in writing or by telephone.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><U>Can I revoke or change my vote after submitting my
proxy?</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Yes. You can revoke
your proxy at any time before the final vote at the meeting. You may revoke your proxy in any one of three ways:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>You may submit another properly completed proxy card with a later date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>You may send a written notice that you are revoking your proxy to LightPath&rsquo;s Secretary at 2603 Challenger Tech Court,
Suite 100, Orlando, Florida USA 32826.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Symbol">&middot;</FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>You may attend the Annual Meeting and vote in person. Simply attending the meeting will not, by itself, revoke your proxy.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><U>How are votes counted?</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Votes will be counted
by the inspector of elections appointed for the meeting, who will separately count &ldquo;For&rdquo;, &ldquo;Against&rdquo;, &ldquo;Withhold
All&rdquo; and &ldquo;Abstain&rdquo; as applicable and other votes, abstentions and broker non-votes. A broker &ldquo;non-vote&rdquo;
occurs when a nominee/broker holding shares for a beneficial owner does not vote on a particular matter because the nominee/broker
does not have discretionary voting power with respect to that item and has not received voting instructions from the beneficial
owner. Abstentions will have the same effect as &ldquo;Against&rdquo; votes. Broker non-votes are counted towards a quorum, but
are not counted for any purpose in determining whether a matter has been approved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><U>How many votes are needed to approve
the items?</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">With regard to Item
No. 1 (election of directors), the two nominees receiving a plurality of the votes cast at the meeting will be elected as directors
of the Company. A properly executed proxy marked &ldquo;Withhold All&rdquo; with respect to the election of directors will not
be voted with respect to any director. A properly executed proxy marked &ldquo;For All Except&rdquo; will not be voted with respect
to the nominee(s) whose number(s) is identified on the line provided. All properly executed proxies, including those marked &ldquo;Withhold
All&rdquo; or &ldquo;For all Except&rdquo; will be counted for purposes of determining whether there is a quorum.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">With regard to Item
No. 2 (say-on-pay vote), a majority of the votes cast at the meeting will approve on an advisory basis, our named executive officer
compensation as disclosed in the proxy statement under the section titled &ldquo;Executive Compensation&rdquo;, including the compensation
tables and other narrative disclosures therein, required by Item 402 of SEC Regulation S-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">With regard to Item
No. 3 (ratification of independent auditor), a majority of the votes cast at the meeting will ratify Cross, Fernandez &amp; Riley
LLP as independent auditor of the Company.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><U>What is the quorum requirement?</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">A quorum of stockholders
is necessary to hold a valid meeting. A quorum will be present if at least a majority of the outstanding shares of Class A common
stock entitled to vote is represented by votes at the meeting or by proxy. On the record date, there were 13,800,431 outstanding
shares (including all restricted stock awards at such date) entitled to vote. Thus, 6,900,216 must be represented by votes at the
meeting or by proxy to have a quorum.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Your shares will
be counted towards the quorum only if you submit a valid proxy vote or vote at the meeting. Abstentions and broker non-votes will
be counted towards the quorum requirement. If there is no quorum, a majority of the votes present at the meeting may adjourn the
meeting to another date.</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">&nbsp;<U>How can I find out the results of the voting
at the Annual Meeting?</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Preliminary voting
results will be announced at the Annual Meeting. LightPath will subsequently file a Current Report on Form 8-K within four business
days following such results becoming final indicating the results from the Annual Meeting.<U> </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><U>When are stockholder proposals
for the 2015 Annual Meeting due?</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Stockholders interested
in presenting a proposal to be considered for inclusion in next year&rsquo;s proxy statement and form of proxy may do so by following
the procedures prescribed in Rule 14a-8 under the Securities Exchange Act of 1934, as amended (the &ldquo;Securities Exchange Act&rdquo;),
and the Company&rsquo;s By-laws. To be considered for inclusion, stockholder proposals must be submitted in writing to the Corporate
Secretary, LightPath Technologies, Inc., 2603 Challenger Tech Court, Suite 100, Orlando, Florida USA 32826 before August 20, 2014,
which is 120 calendar days prior to the anniversary of the mailing date of this proxy statement, and must be in compliance with
all applicable laws and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If a stockholder
wishes to present a proposal at the 2015 Annual Meeting, but the proposal is not intended to be included in the Company's proxy
statement relating to the meeting, the stockholder must give advance notice to the Company prior to the deadline for such meeting
determined in accordance with the By-laws (the &quot;By-law Deadline&quot;). Under the Company&rsquo;s By-laws, in order for a
proposal to be timely, it must be received by the Company no later than 60 days, nor earlier than 90 days, prior to the annual
meeting date. If a stockholder gives notice of such a proposal after the By-law Deadline, the stockholder will not be permitted
to present the proposal to the stockholders for a vote at the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Furthermore, Rule
14a-4 under the Securities Exchange Act also establishes a different deadline for submission of stockholder proposals that are
not intended to be included in the Company's proxy statement with respect to discretionary voting (the &quot;Discretionary Vote
Deadline&quot;). The Discretionary Vote Deadline for the 2015 Annual Meeting is November 5, 2014 (45 calendar days prior to the
anniversary of the mailing date of this proxy statement).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">If a stockholder
gives notice of such a proposal after the Discretionary Vote Deadline, the Company's proxy holders will be allowed to use their
discretionary voting authority to vote against the stockholder proposal when and if the proposal is raised at the 2015 Annual Meeting.
A properly submitted proposal received after the Discretionary Vote Deadline but before the By-law Deadline would be eligible to
be presented at the annual meeting, however, the Company believes that its proxy holders would be allowed to use the discretionary
authority granted by the proxy card to vote against the proposal at the meeting without including any disclosure of the proposal
in the proxy statement relating to such meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B><U>How do I get a copy of the exhibits filed with the
Company&rsquo;s Form 10-K?</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">A copy of the Company&rsquo;s
Annual Report for 2013, which contains the Company&rsquo;s Form 10-K for the fiscal year ended June 30, 2013, and consolidated
financial statements, has been delivered to you with this proxy statement. We will provide to any stockholder as of the Record
Date, who so specifically requests in writing, a copy of the exhibits filed with the Company&rsquo;s Form 10-K. Requests for such
copies should be directed to Investor Relations at 2603 Challenger Tech Court, Suite 100, Orlando, Florida USA 32826. In addition,
copies of all exhibits filed electronically by the Company may be reviewed and printed from the SEC website at <U>http://www.sec.gov
</U>under the EDGAR archives section.<B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><U>Where can I get information regarding
how to send communications to the Board of Directors and the Company&rsquo;s policy regarding Board member&rsquo;s attendance at
annual meetings?</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The Board of Directors
provides a process for stockholders to send communications to the Board of Directors and has adopted a policy regarding Board member&rsquo;s
attendance at annual meetings. Information regarding these matters is contained on our website at <U>http://www.lightpath.com</U><I>
</I>under the &ldquo;Investors&rdquo; tab, and then select &ldquo;Investor FAQs.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><U>ITEM NO. 1</U></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">LightPath&rsquo;s Board
of Directors is divided into three classes, denoted as Class I, Class II and Class III, serving staggered three-year terms with
one class elected at the annual meeting of stockholders. The current Board of Directors consists of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; 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: 34%; border: black 1pt solid; padding-right: 5.2pt; padding-left: 5.2pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Class I</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 2.85pt; text-align: center">&nbsp;</P></td>
    <td style="width: 33%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.2pt; padding-left: 5.2pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Class II</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 2.85pt; text-align: center">&nbsp;</P></td>
    <td style="width: 33%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.2pt; padding-left: 5.2pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Class III</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 2.85pt; text-align: center">&nbsp;</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: 5.2pt; padding-left: 5.2pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&nbsp;</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Robert Ripp</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">J. James Gaynor</P></td>
    <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.2pt; padding-left: 5.2pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Sohail Khan</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Dr. Steven Brueck</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">M. Scott Faris</P></td>
    <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 5.2pt; padding-left: 5.2pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 2.85pt; text-align: center">Louis Leeburg</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 2.85pt; text-align: center">&nbsp;</P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Class I directors&rsquo;
term expires at this annual meeting of stockholders. The Class II directors&rsquo; term expires at the annual meeting of stockholders
proposed to be held in 2016. The Class III directors&rsquo; term expires at the annual meeting of stockholders proposed to be held
in 2015.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the Company&rsquo;s
Certificate of Incorporation and By-laws, the current Board of Directors or the stockholders may nominate persons for election
to the Board of Directors. In accordance with such governing documents and upon the recommendation of the Board of Directors, Robert
Ripp and J. James Gaynor, who are both current members of the Board of Directors, have been nominated by the Board of Directors
to serve as Class I directors for a term ending at the third successive annual meeting of stockholders following this Annual Meeting
of Stockholders, or until their successor has been duly elected and qualified.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Individuals named as proxies
will vote the enclosed proxy <B>&ldquo;FOR&rdquo;</B> the election of Mr. Ripp and Mr. Gaynor unless you direct them to withhold
your votes. If Mr. Ripp or Mr. Gaynor become unable or unwilling to serve as a director before the Annual Meeting, an event which
is not presently anticipated, discretionary authority may be exercised by the person named as proxy to vote for substitute nominees
proposed by the Board of Directors, or, if no substitute is selected by the Board of Directors prior to or at the Annual Meeting,
for a motion to reduce the present membership of the Board to the number of nominees available.</P>

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>THE BOARD OF DIRECTORS RECOMMENDS VOTING
&quot;FOR&quot; </B></P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Each of our directors and officers serves until
his or her successor is elected and qualified. The names and ages of our directors and officers, the years they became directors
or officers, their principal occupations or employment for at least the past five years and certain of their other directorships
is set forth below. The Class I directors&rsquo; term expires at this annual meeting of stockholders. The Class II directors&rsquo;
term expires at the annual meeting of stockholders proposed to be held in fiscal 2016. The Class III directors&rsquo; term expires
at the annual meeting of stockholders proposed to be held in fiscal 2015.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; 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: 29%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Robert Ripp, 72</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director (Chairman of the</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Board)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></td>
    <td style="width: 71%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Ripp has served as a director of the Company
        since 1999 and as Chairman of the Board since November 1999. During portions of fiscal year 2002 he also served as the Company&rsquo;s
        Interim President and Chief Executive Officer. Mr. Ripp held various executive positions at AMP Incorporated (&ldquo;AMP&rdquo;)
        from 1994 to 1999, including serving as Chairman and Chief Executive Officer from August 1998 until April 1999, when AMP was sold
        to TYCO International Ltd. Mr. Ripp previously spent 29 years with IBM of Armonk, New York. He held positions in all aspects of
        operations within IBM culminating in the last four years as Vice President and Treasurer. He retired from IBM in 1993. Mr. Ripp
        graduated from Iona College and received a Masters of Business Administration degree from New York University. Mr. Ripp is currently
        on the board of directors of Ace, Ltd., PPG Industries and Axiall Corporation, all of which are listed on the New York Stock Exchange.
        Mr. Ripp also serves on the Company&rsquo;s Compensation and Finance Committees. Mr. Ripp has dedicated over ten years of service
        to the Company. Mr. Ripp&rsquo;s extensive business, executive management, and financial expertise gained from various executive
        positions coupled with his ability to provide leadership skills to access strategic plans, business operational performance, and
        potential mergers and acquisitions, qualify him for service as a director of our Company.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">J. James Gaynor, 62</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">President &amp; Chief Executive</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Officer,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director</P></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: justify"><font style="font-size: 10pt">Mr. Gaynor was appointed as President, Chief Executive Officer and as a director on February 1, 2008 and prior to that served as Interim Chief Executive Officer commencing on September 18, 2007. Mr. Gaynor previously served as the Company&rsquo;s Corporate Vice President of Operations since July 2006. Mr. Gaynor is also a director of LightPath Optical Instrumentation (Shanghai) Co., Ltd. (&ldquo;LPOI&rdquo;). Mr. Gaynor is a mechanical engineer with over 25 years business and manufacturing experience in volume component manufacturing in the electronics and optics industries. Prior to joining the Company, from August 2002 to July 2006, Mr. Gaynor was Director of Operations and Manufacturing for Puradyn Filter Technologies. Previous to that, he was Vice President of Operations and General Manager for JDS Uniphase Corporation&rsquo;s Transmission Systems Division. He has also held executive positions with Spectrum Control, Rockwell International and Corning Glass Works. His experience includes various engineering, manufacturing and management positions in specialty glass, electronics, telecommunications components and mechanical assembly operations. His global business experience encompasses strategic planning, budgets, capital investment, employee development, cost reduction programs with turnaround and startup companies, acquisitions and management. Mr. Gaynor holds a Bachelor of Mechanical Engineering degree from the Georgia Institute of Technology and has worked in the manufacturing industries since 1976. Mr.&nbsp;Gaynor has an in-depth knowledge of the optics industry gained through over 25 years of working in various capacities in the industry and understands the engineering aspects of our business, due to his engineering background. Mr. Gaynor&rsquo;s experience and knowledge is necessary to lead our Company and qualify him for service as a director.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; 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: 29%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Sohail Khan, 59</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></td>
    <td style="width: 71%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Khan<b><i> </i></b>has served as a director
        of the Company since February 2005. Since May 2013, he has served as the Chief Executive Officer of Lilliputin Systems, a developer
        of portable power products for consumer electronics. From July 2011 to April 2013 he was the owner of K5 Innovations, a technology
        consulting venture from July 2011 to April 2013. He was the President and Chief Executive Officer and a member of the board of
        directors of SiGe Semiconductor (&ldquo;SiGe&rdquo;), a leader in silicon based radio frequency front-end solutions which was acquired
        by Skyworks Solutions Inc. in June 2011. Prior to SiGe, Mr. Khan was Entrepreneur in Residence and Operating Partner of Bessemer
        Venture Partners, a venture capital group focused on technology investments. From 1996 to 2006 he held various executive positions
        with Agere Systems/Lucent Technologies ending as Executive Vice President and Chief Strategy &amp; Development Officer of Agere
        Systems. Mr. Khan has also held various management positions at NEC Electronics, Intel and the National Engineering Services of
        Pakistan. Mr. Khan received a Bachelor of Science in Electrical Engineering from the University of Engineering and Technology in
        Pakistan. Additionally, he received a Masters of Business Administration from the University of California at Berkeley. From 2007
        to 2012, Mr. Khan served on the board of directors for Gainspan Corporation. Mr. Khan also serves on the Company&rsquo;s Compensation
        Committee. Mr. Khan&rsquo;s experience in venture financing, specifically technology investments, is an invaluable asset Mr. Khan
        contributes to the Board composition. In addition, Mr. Khan&rsquo;s significant experience in executive management, profit and
        loss management, mergers and acquisitions, and capital raising, as well as his background in engineering qualifies him for service
        as a director of our Company.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Dr. Steven Brueck, 69</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dr. Brueck has served as a director of the
        Company since July 2001. He is the Director of the Center for High Technology Materials (CHTM) and Distinguished Professor of Electrical
        and Computer Engineering and Professor of Physics at the University of New Mexico in Albuquerque, New Mexico, which he joined in
        1985. He is a graduate of Columbia University with a Bachelor of Science degree in Electrical Engineering and a graduate of the
        Massachusetts Institute of Technology where he received his Masters of Science degree in Electrical Engineering and Doctorate of
        Science degree in Electrical Engineering. Dr. Brueck is a fellow of The Optical Society, the Institute of Electrical and Electronics
        Engineers and the American Association for the Advancement of Science. Dr.&nbsp;Brueck serves on the Company&rsquo;s Audit Committee.
        Dr.&nbsp;Brueck&rsquo;s expertise in optics and optics applications, as well as his extensive research experience in nanoscale
        lithography, visible infrared optics and semiconductor components, qualify him for service as a director of our Company.</P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 29%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">M. Scott Faris, 48</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></td>
    <td style="width: 71%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Faris has served as a director of the Company
        since December 2011. Mr. Faris is an experienced entrepreneur with almost two decades of operating, venture-financing and commercialization
        experience, involving more than 20 start-up and emerging-growth technology companies. Mr. Faris is the founder and Chief Executive
        Officer of MicroVapor Devices, LLC, a privately held developer and manufacturer of advanced medical devices since June 2013. Mr.
        Faris also founded the Astralis Group, a strategy advisor, in 2002 and he provides consulting to start-up companies. Mr. Faris
        was the founder and Chief Executive Officer of Planar Energy, a company that developed transformational ceramic solid state battery
        technology and products.&nbsp;Planar Energy is a spin-out of the U.S. Department of Energy&rsquo;s National Renewable Energy Laboratory.
        Mr. Faris founded Planar Energy in June 2007. From October 2004 to June 2007, Mr. Faris was a partner with Corporate IP Ventures
        (formerly known as MetaTech Ventures), an early stage venture fund specializing in defense technologies. From September 2001 to
        October 2004, Mr. Faris was the Chairman and Chief Executive Officer of Waveguide Solutions, a developer of planar optical light
        wave circuit and micro system products, a spin out of the University of North Carolina, Charlotte. From August 1997 to September
        2001, he was a director and Chief Operating Officer of Ocean Optics, Inc., a precision-optical-component and fiber-optic-instrument
        spin-out of the University of South Florida. Mr. Faris was also the founder and Chief Executive Officer of Enterprise Corporation,
        a technology accelerator and served as a director of the Florida Seed Capital Fund and Technology Commercialization at the Center
        for Microelectronics Research. Mr. Farris received a Bachelor of Science degree in Management Information Systems from Penn State
        University in 1988. Mr. Faris is currently on the board of directors of MicroVapor Devices, LLC, Spectra Health, Inc. and Open
        Photonics, Inc., all of which are private companies. Mr. Faris also serves on the Company&rsquo;s Audit Committee. Mr. Faris&rsquo;s
        significant experience in executive management positions at various optical component companies, his experience in the commercialization
        of optical and opto-electronic component technology and his background in optics, technology and venture capital qualify him for
        service as a director of our Company.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B></B></P>

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

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

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

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 29%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Louis Leeburg, 59</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Director</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></td>
    <td style="width: 71%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: justify"><font style="font-size: 10pt">Mr. Leeburg has served as a director of the Company since May 1996.&nbsp;&nbsp;Mr. Leeburg is currently a self-employed business consultant.&nbsp;&nbsp;From 1988 until 1993 he was the Vice President for Finance of The Fetzer Institute, Inc. From 1980 to 1988 he was in financial positions with different organizations with an emphasis in financial management.&nbsp;&nbsp;Mr. Leeburg was an audit manager for Price Waterhouse &amp; Co. until 1980.&nbsp;&nbsp;Mr. Leeburg received a Bachelor of Science degree in Accounting from Arizona State University.&nbsp;&nbsp;He is a member of Financial Foundation Officers Group and the treasurer and trustee for the John E. Fetzer Memorial Trust Fund and The Institute for Noetic Sciences.&nbsp;&nbsp;Mr. Leeburg also serves on the Company&rsquo;s Audit and Finance Committees. Mr.&nbsp;Leeburg has a broad range of experience in accounting and financial matters.&nbsp;&nbsp;His expertise gained in various roles in financial management and investment oversight for over thirty years coupled with his knowledge gained as a CPA add invaluable knowledge to our Board and qualify him for service as a director of our Company.</font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Executive Officers Who Do Not Serve as Directors</B></P>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 29%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Dorothy Cipolla, 57</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Chief Financial Officer,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Secretary and Treasurer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></td>
    <td style="width: 71%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: justify"><font style="font-size: 10pt">Ms. Cipolla has been the Company&rsquo;s Chief Financial Officer, Secretary and Treasurer since February 2006. Ms. Cipolla has also been a director of LPOI since 2006. Ms. Cipolla was Chief Financial Officer and Secretary of LaserSight Technologies, Inc., (&ldquo;LaserSight&rdquo;) from March 2004 to February 2006. Prior to joining LaserSight, she served in various financial management positions. From 1994 to 1999, she was Chief Financial Officer and Treasurer of Network Six, Inc., a NASDAQ-listed professional services firm. From 1999 to 2002, Ms. Cipolla was Vice President of Finance with Goliath Networks, Inc., a privately held network consulting company. From 2002 to 2003, Ms. Cipolla was Department Controller of Alliant Energy Corporation, a regulated utility. She received a Bachelor of Science degree in Accounting from Northeastern University and is a Certified Public Accountant in Massachusetts.&nbsp;&nbsp;</font></td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: justify">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Alan Symmons, 41</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Corporate Vice President of Engineering</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></td>
    <td style="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Symmons has been the Company&rsquo;s Director
        of Engineering since October 2006. In September 2010, he was promoted to Corporate Vice President of Engineering. Prior to joining
        LightPath, Mr. Symmons was Engineering Manager for Aurora Optical, a subsidiary of Multi-Fineline Electronix, (&ldquo;MFLEX&rdquo;),
        dedicated to the manufacture of cell phone camera modules. From 2000 to 2006, Mr. Symmons worked for Applied Image Group &ndash;
        Optics, (&ldquo;AIG/O&rdquo;), a recognized leader in precision injection molded plastic optical components and assemblies, working
        up to Engineering Manager. AIG/O was purchased by MFLEX in 2006. Prior to 2000, Mr. Symmons held engineering positions at Ryobi
        N.A., SatCon Technologies and General Dynamics. Mr. Symmons has a Bachelor of Science degree in Mechanical Engineering from Rensselaer
        Polytechnic Institute and a Masters of Business Administration degree from the Eller School of Management at the University of
        Arizona.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Meetings of the Board of Directors and its Committees</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Board of Directors
has an Audit Committee, a Compensation Committee and a Finance Committee. The Board of Directors does not have a standing nominating
committee. In addition to the directors named above, Gary Silverman served as a director of the Company during fiscal 2013. Mr.
Silverman passed away on November 1, 2013. The entire Board of Directors met eight times, including telephonic meetings, during
fiscal year 2013. All of the directors attended 88% or more of the meetings of the Board of Directors and the meetings held by
committees of the Board of Directors on which they served. All of the then elected directors attended the 2012 Annual Meeting of
Stockholders on January&nbsp;31, 2013.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">It is the Company&rsquo;s
policy that all directors of the Company are required to make a concerted and conscientious effort to attend the Company&rsquo;s
Annual Meeting of the Stockholders in each year during which that director serves as a member of the Board of Directors of the
Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>Audit Committee.
</I></B>The Audit Committee, which consisted of Dr. Steven Brueck, Louis Leeburg (Chairman), M. Scott Faris and Gary Silverman,
met four times during fiscal year 2013. The meetings included discussions with management and the Company&rsquo;s independent auditors
to discuss the interim and annual financial statements and the annual report of the Company and the Company&rsquo;s financial and
accounting functions and organization. The Audit Committee acts pursuant to a written charter adopted by the Board of Directors,
a copy of which is available on the Company&rsquo;s website at <U>www.lightpath.com</U>.<B> </B>The Audit Committee&rsquo;s responsibilities
include, among others, direct responsibility for the engagement and termination of the Company&rsquo;s independent accountants,
overseeing the work of the accountants and determining the compensation for their engagement(s). The Board of Directors determined
that the Audit Committee was comprised entirely of independent members as defined under applicable listing standards set out by
the SEC, the National Association of Securities Dealers (NASD) and the Nasdaq Capital Market. The Board of Directors also determined
that at least one member of the Audit Committee, Mr.&nbsp;Leeburg, is qualified as an &ldquo;audit committee financial expert&rdquo;
as defined by SEC rules. Mr. Leeburg&rsquo;s business experience that qualifies him to be determined an &ldquo;audit committee
financial expert&rdquo; is described above.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><B><I>Compensation
Committee. </I></B>The Compensation Committee, which consisted of Sohail Khan, Robert Ripp and Gary Silverman (Chairman), met twice
during fiscal year 2013. The Compensation Committee reviews and recommends to the Board of Directors the compensation and benefits
of certain executive officers of the Company, including the Chief Executive Officer and the Chief Financial Officer, and also administers
the Amended and Restated Omnibus Incentive Plan (the &ldquo;Plan&rdquo;), pursuant to which incentive awards, including stock options,
are granted to directors, executive officers and key employees of the Company. The Compensation Committee does not have a charter
and may not delegate its authority to other persons.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The Compensation
Committee is responsible for establishing, implementing and continually monitoring the Company&rsquo;s compensation policies and
philosophy. The Compensation Committee is responsible for determining executive compensation, including approving recommendations
regarding equity awards to all executive officers of the Company. However, the Compensation Committee does rely on the annual reviews
made by the Chief Executive Officer with respect to the performance of each of the Company&rsquo;s other executive officers. The
conclusions reached and recommendations based on these reviews, including with respect to salary adjustments and annual award amounts,
are presented to the Compensation Committee. The Compensation Committee can exercise its discretion in modifying any recommended
adjustments or awards to executive officers. In the case of the Chief Executive Officer, compensation is determined solely based
on the review conducted by the Compensation Committee. Neither the Compensation Committee nor management employed any compensation
consultants during fiscal year 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24pt">The Compensation Committee
also annually reviews director compensation to ensure non-employee directors are adequately compensated for the time expended in
fulfilling their duties to the Company as well as the skill-level required by the Company of members of the Board of Directors.
After the Compensation Committee completes their annual review, they make recommendations to the Board of Directors regarding director
compensation. For fiscal 2013, the Board determined that the current cash and stock-based incentive compensation awarded to directors
was still appropriate.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>Finance Committee.
</I></B>The Finance Committee, which consists of Louis Leeburg and Robert Ripp, did not meet during fiscal year 2013. The Finance
Committee reviews and provides guidance to the Board of Directors and management with respect to the Company&rsquo;s significant
financial policies. For fiscal 2013, the full Board of Directors performed these functions, especially with regard to matters having
to do with the Company&rsquo;s financing transactions concluded throughout the fiscal year.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">All current committee members,
with the exception of Mr. Silverman, are expected to be nominated for re-election to the same committees at a Board of Directors&rsquo;
meeting to be held immediately following the Annual Meeting.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Nominations Process and Criteria</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Board of Directors
does not consider it necessary to form a committee specifically for governance or nomination matters due to the modest scope of
the Company. With respect to nomination matters, all independent directors participate in the consideration of director nominees.
The Board of Directors has determined that each current director, except for Mr. Gaynor, meets the independence criteria for members
of a nominating committee as set forth in the applicable rules of the Nasdaq Capital Market and the SEC. Due to the status of Mr.
Gaynor as the Company&rsquo;s Chief Executive Officer, he is not an independent board member and may not specifically nominate
anyone for Board membership nor vote on the matter of appointments to the Board of Directors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Additionally, the Board
of Directors believes it is not necessary to adopt criteria for the selection of directors. The Board of Directors believes that
the desirable background of a new individual member of the Board of Directors may change over time and that a thoughtful, thorough
selection process is more important than adopting criteria for directors. The Board of Directors is fully open to utilizing whatever
methodology is efficient in identifying new, qualified directors when needed, including using industry contacts of the Company&rsquo;s
directors or professional search firms.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">There were no fees paid
or due to third parties in fiscal 2013 to identify or evaluate or to assist in evaluating or identifying potential nominees to
the Board.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Any stockholder wishing
to propose that a person be nominated for or appointed to the Board of Directors may submit such a proposal, according to the procedure
described in the stockholder proposal section on page 10  of this proxy statement, to:</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">2603 Challenger Tech Court, Suite 100</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Orlando, Florida 32826</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Such correspondence will be timely forwarded
to the Chairman of the Audit Committee for review and consideration in accordance with the criteria described above. The independent
directors will consider director candidates recommended by stockholders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B>Director Independence </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: justify; text-indent: 24.5pt">In accordance
with Nasdaq Capital Market and SEC rules, the Board of Directors affirmatively determines the independence of each director and
nominee for election as a director in accordance with guidelines it has adopted, which include all elements of independence set
forth in the Nasdaq Capital Market listing standards. Based on these standards, the Board determined that each of the following
non-employee directors serving during fiscal year 2013 was independent and had no relationship with the Company, except as a director
and stockholder of the Company:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: justify; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 80%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 50%; text-align: left">Robert Ripp</TD>
    <TD STYLE="width: 50%">Steven
Brueck</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>Gary Silverman</TD>
    <TD>Sohail
Khan</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>Louis Leeburg</TD>
    <TD>M.
Scott Faris</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: left; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: left; text-indent: 24.5pt">All members
of the Audit and Compensation Committees are also independent. The Board of Directors approved a Code of Business Conduct and
Ethics on May 3, 2004 (the &ldquo;Code&rdquo;). The Code applies to the Chief Executive Officer, Chief Financial Officer and senior
financial officers and the entire Board of Directors. A copy of the Code is posted on the Company&rsquo;s website at <U>www.lightpath.com</U>.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: left"><B>Related Transactions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Board of Directors
has not adopted a written policy for reviewing, approving or ratifying related party transactions. When the Company is contemplating
entering into any transaction in which any executive officer, director, nominee or any family member of the foregoing would have
any direct or indirect interest, regardless of the amount involved, the terms of such transaction have to be presented to the full
Board of Directors (other than any interested director) for approval. The discussion by the Board of Directors is documented in
the board minutes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In July 2008, the Board
of Directors was presented with a Securities Purchase Agreement with twenty-four institutional and private investors with respect
to the private placement of 8% senior convertible debentures. Among the investors were Steven Brueck, J. James Gaynor, Louis Leeburg,
Robert Ripp and Gary Silverman, all of whom were directors or officers of LightPath at the time of the transaction. The Company
prepaid interest accruing for the period August 1, 2012 through maturity on August 1, 2012. The principal amounts on the convertible
debenture held by Mr. Ripp was $187,500 as of March 25, 2013. The principal amount outstanding on each of the convertible debentures
held by Dr. Brueck, Mr. Gaynor, Mr. Leeburg and Mr. Silverman was $18,750 as of March 25, 2013.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On March 25, 2013, the
Company and the remaining debenture holders, which included Mr. Ripp, Dr. Brueck, Mr. Leeburg, Mr. Gaynor and Mr. Silverman, entered
into a conversion agreement. The conversion agreement provided for the conversion of the debentures prior to the maturity date
and the issuance of additional shares to compensate the debenture holders for the difference between the conversion price, or $1.54,
and the closing bid price per share of common stock as reported on the Nasdaq Capital market on March 22, 2013, or $0.79.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Board of Directors Leadership Structure
and Role in Risk Oversight</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The Company&rsquo;s Board
of Directors has chosen to separate the positions of Chairman and Chief Executive Officer, with Mr.&nbsp;Robert Ripp serving as
Chairman and Mr.&nbsp;J. James Gaynor serving as Chief Executive Officer. As Chief Executive Officer and President, Mr.&nbsp;Gaynor
is responsible for the day to day leadership and performance of the Company, with the Board being responsible for setting the strategic
direction of the Company, as well as overseeing and advising the management of the Company. The Board believes that the current
independent leadership of the Board by the Company&rsquo;s non-executive Chairman enhances the effectiveness of its oversight of
management and provides a perspective that is separate and distinct from that of management.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our Board of Directors
is responsible for the oversight of our operational risk management process. Our Board has delegated authority for addressing certain
risks, and accessing the steps management has taken to monitor, control and report such risks, to our Audit and Finance Committees.
Such risks include risks relating to execution of our growth strategy, the effects of the contracting in the global economy and
general financial condition and outlook on customer purchases, component inventory supply, or ability to expand our partner network,
communication with investors, certain actions of our competitors, the protection of our intellectual property, sufficiency of our
capital, inventory investment and risk of obsolescence, security of information systems and data, integration of new information
systems, credit risk, product liability and costs of reliance on external advisors. The Audit or Finance Committee, as applicable,
then reports such risks as appropriate to the Board of Directors. The Board of Directors initiates discussions with appropriate
members of our senior management if, after discussion of such risks, the Board determines that such risks raise questions or concerns
about the status of operational risks then facing the Company.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our Board relies on our
Compensation Committee to address significant risk exposures facing the Company with respect to compensation, including risks relating
to retention of key employees, protection of partner relationships, management succession and benefit costs, and when appropriate;
report these risks to the full Board.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>Stockholder Communications
with the Board of Directors </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Stockholders and other
parties interested in communicating directly with the Board of Directors, a committee of the Board of Directors, or any individual
director, may do so by sending a written communication to the attention of the intended recipient(s) in care of the Corporate Secretary,
LightPath Technologies, Inc., 2603 Challenger Tech Court, Suite 100, Orlando, Florida USA 32826. The Corporate Secretary will forward
all appropriate communications to chairman of the Audit Committee.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Audit Committee is
responsible for, among other things, reviewing and discussing the Company&rsquo;s audited financial statements with management,
discussing with the Company's independent auditors information relating to the auditors' judgments about the quality of the Company's
accounting principles, recommending to the Board of Directors that the Company include the audited financial statements in its
Annual Report on Form 10-K and overseeing compliance with the SEC requirements for disclosure of auditors' services and activities.
At the recommendation of the Audit Committee, the Board of Directors first approved a charter for the Audit Committee on November
14, 2000, which was subsequently revised and approved by the Board of Directors on May 10, 2004.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Review of Audited Financial Statements</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Audit Committee has
reviewed the Company's financial statements for the fiscal year ended June 30, 2013, as audited by Cross, Fernandez &amp; Riley,
LLP, the Company's independent auditors, and has discussed these financial statements with management. In addition, the Audit Committee
has discussed with Cross, Fernandez &amp; Riley, LLP the matters required to be discussed by the Statement on Auditing Standards
No. 16, as adopted by the Public Company Accounting Oversight Board (&rdquo;PCAOB&rdquo;), as may be modified or supplemented.
Furthermore, the Audit Committee has received the written disclosures and the letter from Cross, Fernandez &amp; Riley, LLP required
by the Independence Standards Board Standard No. 1, as may be modified or supplemented, and has discussed with Cross, Fernandez
&amp; Riley, LLP its independence.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Generally, the members
of the Audit Committee are not professionally engaged in the practice of auditing or accounting and are not experts in the fields
of accounting or auditing, or in determining auditor independence. However, the Board of Directors has determined that each member
of the Audit Committee meets the independence criteria set forth in the applicable rules of the Nasdaq Capital Market and the SEC,
and that at least one member of the Audit Committee, Mr.&nbsp;Leeburg, is an &ldquo;audit committee financial expert&rdquo; as
defined by SEC rules. Members of the Audit Committee rely, without independent verification, on the information provided to them
and on the representations made by management. Accordingly, the Audit Committee's oversight does not currently provide an independent
basis to determine that management has maintained procedures designed to assure compliance with accounting standards and applicable
laws and regulations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Based upon the foregoing
review and discussion, the Audit Committee recommended to the Board of Directors that the audited financial statements for the
fiscal year ended June 30, 2013, be included in the Company's Annual Report on Form 10-K for such fiscal year.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4in; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4in; text-indent: 0.5in"></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 55%; font-size: 10pt; font-style: italic; font-weight: bold"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;</I></B></FONT></TD>
    <TD STYLE="width: 45%; font-size: 10pt; font-style: italic; font-weight: bold"><FONT STYLE="font-size: 10pt"><B><I>Audit Committee:</I></B></FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>Louis Leeburg, Chairman</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>Dr. Steven
Brueck</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>Gary Silverman</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>M. Scott Faris</TD></TR>
</TABLE>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0; text-align: justify; text-indent: 0.5in">The following table
sets forth, as of December 3, 2013, the number and percentage of outstanding shares of the Company's Class A common stock, owned
by: (i) each director (which includes all nominees) at such date, (ii) each of the executive officers named in the Summary Compensation
Table below, (iii) directors and executive officers of the Company as a group at such date, and (iv) each person known by the Company
to be the beneficial owner of more than 5% of the outstanding Class A common stock of the Company at such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The number of shares beneficially
owned by each director or executive officer is determined under SEC rules, and the information is not necessarily indicative of
the beneficial ownership for any other purpose. Under such rules, beneficial ownership includes any shares to which the individual
has the sole or shared voting power or investment power and also any shares which the individual has the right to acquire within
60 days of December 3, 2013, through the exercise of any stock option or other right to purchase, such as a warrant. Unless otherwise
indicated, each person has sole investment and voting power (or shares such power with his or her spouse) with respect to the shares
set forth in the following table. In certain instances, the number of shares listed may include, in addition to shares owned directly,
shares held by the spouse or children of the person, or by a trust or estate of which the person is a trustee or an executor or
in which the person may have a beneficial interest. The table that follows is based upon information supplied by the executive
officer, directors and principal stockholders, or based upon information in Schedule 13Gs filed with the SEC.</P>

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

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

<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
    <td style="text-decoration: underline; border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid"><u></u></td>
    <td colspan="5" style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Securities</td>
    <td style="font-weight: bold; border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; text-align: center">Percent Owned</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-decoration: underline; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid"><u></u></td>
    <td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; border-right: black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Class A Common Stock</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid">&nbsp;</td>
    <td style="font-weight: bold; text-decoration: underline; border-right: Black 0.5pt solid; text-align: center">(%)</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; width: 34%">Name and Address (1)</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; width: 9%">Restricted (2)</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; width: 11%">Unrestricted</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; width: 9%">Warrants</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; width: 8%">Options</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt; width: 17%">Amount of Shares of Class A Common Stock&nbsp;&nbsp;Beneficially Owned</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; width: 5%">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; width: 7%">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid">Robert Ripp, Director</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">191,160</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">579,526</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">31,581</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;36,100</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">838,367</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">(3) (4)</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">5.7%</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid">Louis Leeburg, Director</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">191,160</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">57,898</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;455</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,100</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">255,613</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">(5)</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">1.8%</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid">Sohail Khan, Director</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">192,360</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,100</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">198,460</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">(6)</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">1.4%</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid">Dr. Steven Brueck, Director</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">191,160</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">42,919</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,158</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,100</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">243,337</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">(7)</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">1.7%</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid">M. Scott Faris, Director</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">90,460</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">90,460</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">0.6%</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid">J. James Gaynor, President &amp; CEO</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,600</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;228</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;298,000</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">344,828</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">(8)</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">1.5%</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid">Dorothy Cipolla, CFO, Secretary &amp; Treasurer</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;108,000</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">108,000</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">*</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid">Alan Symmons, Vice President of Engineering</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;71,000</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">71,000</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">*</td></tr>
<tr style="vertical-align: bottom">
    <td rowspan="4" style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: black 0.5pt solid; border-left: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">All directors and named executive officers currently holding office as a group (8 persons)</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="font-weight: bold; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="font-weight: bold; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="font-weight: bold; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">856,300</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">726,943</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">35,422</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">531,400</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">2,150,065</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">12.3%</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">Berg&nbsp;&nbsp;&amp; Berg Enterprises, LLC</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">2,574,007</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">2,574,007</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">(9)</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">18.4%</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">Pudong Science and Technology (Cayman) Co., Ltd.</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">1,339,236</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">1,339,236</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">(10)</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">8.7%</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: center">&nbsp;</td>
    <td style="text-align: center">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td>* less than 1%</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td>&nbsp;</td></tr>
</table>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><U>&nbsp;</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><U>Notes:</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">(1) Except as otherwise
noted, each of the parties listed above has sole voting and investment power over the securities listed. The address for all directors
and officers is &ldquo;in care of&rdquo; LightPath Technologies, Inc., 2603 Challenger Tech Court, Suite 100, Orlando, FL 32826.
The address for Berg &amp; Berg Enterprises, LLC, as filed on a Schedule 13G filed February 14, 2008, is 10050 Bandley Drive, Cupertino,
CA, 94014. The address for Pudong Science and Technology (Cayman) Co. Ltd., as filed on a Schedule 13G filed August 15, 2013, is
13 Building, No. 439, Chunxiao Rd., Zhangjiang High-tech park, Pudong, Shanghai 201203, PRC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">(2) Restricted stock units
awarded to our directors vest over three years. All directors have elected to defer receipt of the shares until after they leave
the Board, either by reason of resignation, termination or otherwise, therefore these shares remain unissued. All unvested restricted
stock units for directors will vest upon their resignation or termination from the Board. The amount of restricted stock above
reflects both vested and unvested shares included in the restricted stock unit awards. The amounts of vested shares for each director
are as follow: Mr. Ripp &ndash; 106,033, Mr. Leeburg &ndash; 106,033, Mr. Khan &ndash; 107,233, Dr. Brueck &ndash; 106,033 and
Mr. Faris &ndash; 5,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">(3) Does not include 7,812
shares of Class A common stock and warrants to purchase 15,000 shares of Class A common stock which are owned by trusts for Mr.
Ripp's adult children and for which he disclaims beneficial ownership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">(4) Includes 67,681 shares
of Class A common stock with respect to which Mr. Ripp has the right to acquire. Mr. Ripp holds warrants which are currently exercisable
for an aggregate of 31,581 shares of Class A common stock and options which are currently exercisable for an aggregate of 36,100
shares of Class A common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">(5) Includes 6,555 shares
of Class A common stock with respect to which Mr. Leeburg has the right to acquire. Mr. Leeburg holds warrants which are currently
exercisable for an aggregate of 455 shares of Class A common stock and options which are currently exercisable for an aggregate
of 6,100 shares of Class A common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">(6) Includes 6,100 shares
of Class A common stock with respect to which Mr. Khan has the right to acquire. Specifically, Mr. Khan holds options which are
currently exercisable for an aggregate of 6,100 shares of Class A common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">(7) Includes 9,258 shares
of Class A common stock with respect to which Dr. Brueck has the right to acquire. Dr. Brueck holds warrants which are currently
exercisable for an aggregate of 3,158 shares of Class A common stock and options which are currently exercisable for an aggregate
of 6,100 shares of Class A common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">(8) Includes 251,386 shares
of Class A common stock with respect to which Mr. Gaynor has the right to acquire. Mr. Gaynor holds warrants which are currently
exercisable for an aggregate of 228 shares of Class A common stock and options which are currently exercisable for an aggregate
of 248,000 shares of Class A common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">(9) Excludes 199,556 shares
of Class A common stock with respect to which Berg &amp; Berg Enterprises, LLC (&ldquo;BBE&rdquo;) may have the right to acquire
in the future. BBE holds warrants which would be exercisable for an aggregate of 199,556 shares of Class A common stock. However,
neither BBE nor the Company is able to effect any exercise of the warrants to the extent that after giving effect to such issuance
after exercise BBE would beneficially own in excess of 4.99% of the number of shares of Class A common stock outstanding immediately
after giving effect to the issuance of shares issuable upon exercise warrants. Given that BBE currently holds 18.4% of the issued
and outstanding share of Class A common stock, the warrants cannot be exercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">(10) Pudong Science and
Technology (Cayman) Co., Ltd. is wholly owned by Shanghai Pudong Science and Technology Investment Co., Ltd., and for purposes
hereof is also deemed to be a beneficial owner of the shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There are no arrangements known to the Company
which may at a subsequent date result in a change-in-control.</P>

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.2pt"><FONT STYLE="font-style: normal"><B>Section
16(a) Beneficial Ownership Reporting Compliance</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Section 16(a) of the Securities Exchange Act
of 1934, as amended (the &ldquo;Exchange Act&rdquo;), requires that our directors and executive officers and persons who beneficially
own more than 10% of our common stock (referred to herein as the &ldquo;Reporting Persons&rdquo;) file with the SEC various reports
as to their ownership of and activities relating to our common stock. To the best of our knowledge, all Reporting Persons complied
on a timely basis with all filing requirements applicable to them with respect to transactions during the period covered by this
report except with respect to Berg &amp; Berg Enterprises, LLC, a beneficial owner of more than 10% of our common stock. Berg
&amp; Berg Enterprises, LLC failed to file a Form 4 during fiscal 2013 with respect to the sale of shares of common stock and
the exercise of certain warrants. In making these statements, the Company has relied solely on its review of copies of the reports
furnished to the Company, representations that no other reports were required and other knowledge relating to transactions involving
Reporting Persons.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt"><B><I>Compensation
Philosophy and Objectives</I></B><I>. </I>The Company&rsquo;s compensation policy is designed to attract and retain qualified key
executive officers critical to the Company&rsquo;s achievement of reaching and maintaining profitability and positive cash flow,
and subsequently its growth and long-term success. To attract, retain, and motivate the executives officers required to accomplish
our business strategy, the Compensation Committee establishes our executive compensation policies and oversees our executive compensation
practices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt">The Compensation
Committee believes that the most effective executive compensation program is one that is designed to reward the achievement of
our specific annual, short-term and long-term goals, and which aligns executives&rsquo; interests with those of the stockholders
by rewarding performance that meets or exceeds established goals, with the ultimate objective of improving stockholder value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt">It is the objective
of the Compensation Committee to have a portion of each executive officer&rsquo;s compensation contingent upon the Company&rsquo;s
performance as well as upon the individual&rsquo;s personal performance. Accordingly, each executive officer&rsquo;s compensation
package is comprised of two elements: (i) base salary, which reflects individual performance and expertise and (ii) bonus and long-term
equity incentive awards, which are tied to the achievement of certain performance goals that the Compensation Committee establishes
from time to time. Based on the foregoing objectives, the Compensation Committee has structured compensation of our executive officers
to achieve the business goals set by the Company and reward the executive officers for achieving such goals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt">The Compensation
Committee also evaluates our compensation program to ensure that we maintain the ability to attract and retain superior employees
in key positions and that compensation provided to key employees remains competitive relative to the compensation paid to similarly
situated executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt">In accordance
with the advisory &ldquo;say-on-frequency&rdquo; vote of our stockholders at the 2011 Annual Meeting of Stockholders, and as determined
by the Board of Directors, the Company will include an advisory &ldquo;say-on-pay&rdquo; vote in the Company&rsquo;s proxy statement
every three years unless changed by the Board of Directors as a result of the next required stockholder advisory &ldquo;say-on-frequency&rdquo;
vote, which will occur at our 2017 annual meeting of stockholders, or otherwise.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Setting Executive Compensation.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In making compensation
decisions, the Compensation Committee relies on the following:</P>

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

<UL TYPE="DISC" STYLE="margin-top: 0in; font-family: Times New Roman, Times, Serif">

<LI STYLE="text-align: justify; margin: 0; font-style: normal; font-weight: normal"><FONT STYLE="font-weight: normal; font-style: normal">the annual reviews made by the
Chief Executive Officer with respect to the performance of each of the Company&rsquo;s other executive officers;</FONT></LI>

</UL STYLE="font-family: Times New Roman, Times, Serif">

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

<UL TYPE="DISC" STYLE="margin-top: 0in; font-family: Times New Roman, Times, Serif">

<LI STYLE="text-align: justify; margin: 0; font-style: normal; font-weight: normal"><FONT STYLE="font-weight: normal; font-style: normal">the annual review conducted by
the Compensation Committee with respect to the performance of the Chief Executive Officer;</FONT></LI>

</UL STYLE="font-family: Times New Roman, Times, Serif">

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

<UL TYPE="DISC" STYLE="margin-top: 0in; font-family: Times New Roman, Times, Serif">

<LI STYLE="text-align: justify; margin: 0; font-style: normal; font-weight: normal"><FONT STYLE="font-weight: normal; font-style: normal">compensation
paid to executive officers of other manufacturing companies similar in size and scope as the Company and its competitors; and</FONT></LI>

</UL STYLE="font-family: Times New Roman, Times, Serif">

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

<UL TYPE="DISC" STYLE="margin-top: 0in; font-family: Times New Roman, Times, Serif">

<LI STYLE="text-align: justify; margin: 0; font-style: normal; font-weight: normal"><FONT STYLE="font-weight: normal; font-style: normal">the annual performance of the
Company with respect to our short-term and long-term strategic plan.</FONT></LI>

</UL STYLE="font-family: Times New Roman, Times, Serif">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">There is no pre-established
policy or target for the allocation between either cash and non-cash or short-term and long-term incentive compensation. Rather,
the Compensation Committee annually reviews information to determine the appropriate level and mix of incentive compensation when
determining the Company&rsquo;s executive compensation plan.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">Based on these factors,
the Compensation Committee makes compensation decisions, including salary adjustments, annual bonus awards, and long-term equity
incentive awards for the Company&rsquo;s executive officers.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><B><I>2013 Executive Compensation
Components.</I> </B>For the year ended June&nbsp;30, 2013, the principal components of compensation for executive officers were:</P>

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
    <td style="width: 5%; font-size: 10pt; text-align: justify">&nbsp;</td>
    <td style="vertical-align: top; width: 2%; font-size: 10pt; text-align: justify">&bull;</td>
    <td style="vertical-align: top; width: 1%; font-size: 10pt; text-align: justify">&nbsp;</td>
    <td style="vertical-align: top; font-size: 10pt; text-align: justify">base salary; and</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
    <td style="width: 5%; font-size: 10pt; text-align: justify">&nbsp;</td>
    <td style="vertical-align: top; width: 2%; font-size: 10pt; text-align: justify">&bull;</td>
    <td style="vertical-align: top; width: 1%; font-size: 10pt; text-align: justify">&nbsp;</td>
    <td style="vertical-align: top; font-size: 10pt; text-align: justify">bonus and long-term equity incentive awards.</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt"><B><I>Base Salary.
</I></B>Base salaries are determined for each executive officer based on his or her individual qualifications and relevant experience,
the strategic goals which he or she was responsible for, the compensation levels at companies which compete with the Company for
business and executive talent, and other incentives necessary to attract and retain qualified management. Salary levels are reviewed
annually as part of our performance review process as well as upon a promotion or other change in job responsibility. Merit based
increases to base salaries are based on the annual reviews conducted by the Chief Executive Officer, for all executive officers
other than the Chief Executive Officer, the annual review conducted by the Compensation Committee with respect to the Chief Executive
Officer and the Compensation Committee&rsquo;s assessment of each individual executive&rsquo;s performance. Due to existing economic
conditions, no merit based pay increases to base salaries were given to the named executive officers in fiscal 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt"><B><I>Bonuses
and Long-Term Equity Incentive Awards</I>. </B>We provide executive officers and other key employees with incentive compensation
to incentivize and reward them for high performance and achievement of certain Company goals. The bonus program is designed to
reward our executive officers for achieving certain financial objections tied to growth and profitability set each year by the
Compensation Committee. The long-term equity incentive awards are designed to reward executive officers for achieving strategic
milestones, as well as for retaining executive officers and other key employees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt"><U>Bonus Program</U>.
The fiscal 2013 bonus program had two levels of participation: (i) the &ldquo;level one&rdquo; participants and (ii) the &ldquo;level
two&rdquo; participants. &ldquo;Level one&rdquo; participants were eligible to receive a bonus equal to 100% of their base salary,
with 50% of such bonus paid in cash and the other 50% paid in stock option awards. &ldquo;Level two&rdquo; participants were eligible
to receive a bonus equal to 75% of their base salary, with 50% of such bonus paid in cash and the other 50% paid in stock option
awards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt">For fiscal 2013,
the Compensation Committee set three performance goals tied to the Company&rsquo;s revenues, gross margin and cash flow. The maximum
potential bonus payout was based on certain achievements of revenue, varying from a 25% potential bonus payment, if the Company
had revenues equal to $11.2 million, to a 100% potential bonus payment, if the Company had revenues equal to $13.7 million. If
the revenue performance goal was met, the amount of the bonus payout would be determined by the achievement of the gross margin
and cash flow performance goals, with each performance goal tied to 50% of the bonus payout. For fiscal 2013, the &ldquo;level
one&rdquo; participant was Mr. Gaynor and the &ldquo;level two&rdquo; participants were Ms. Cipolla and Mr. Symmons. For fiscal
2013, there was no performance-based incentive compensation for the executive officers as a result of our failure to achieve the
revenue performance goal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt"><U>Long-Term
Equity Incentive Awards</U>. The Compensation Committee has the latitude to award our executive officers, or other key employees,
stock options. Stock options are awarded under the Plan. In granting these awards, the Compensation Committee may establish any
conditions or restrictions it deems appropriate. Options are awarded at the closing price of the Company&rsquo;s stock on the date
of the grant as determined by the Nasdaq Capital Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt">For fiscal 2013,
the Compensation Committee granted discretionary stock options to the executive officers as disclosed in the Narrative Discussion
of Summary Compensation section below.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 24.5pt"><B><I>Retirement
Benefits.</I></B> We offer a qualified 401(k) defined contribution plan. The ability of executive officers to participate fully
in this plan is limited under IRS and ERISA requirements. The 401(k) plan encourages employees to save for retirement by investing
on a regular basis through payroll deductions.&nbsp;</P>

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<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-indent: 20pt"><B><I>Executive Compensation and Risk. </I></B><FONT STYLE="font-size: 10pt; font-weight: normal; font-style: normal">Although
a substantial portion of the compensation paid to our executive officers is performance-based, we believe our executive compensation
programs do not encourage excessive and unnecessary risk-taking by our executive officers because these programs are designed
to encourage our executive officers to remain focused on both the short-term and long-term operational and financial goals of
the Company. We achieve this balance through a combination of elements in our overall compensation plans, including: elements
that reward different aspects of short-term and long-term performance; incentive compensation that rewards performance on a variety
of different measures; and cash awards and stock option awards, to encourage alignment with the interests of stockholders.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in"><B>Summary Compensation
Table</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table sets forth certain compensation
awarded to, earned by or paid to (i) the Chief Executive Officer and (ii) the two other most highly compensated executive officers
of the Company serving as executive officers at the end of fiscal 2013, which includes the Chief Financial Officer. The Company
did not have any individuals for whom disclosure would have been required but for the fact that the individual was not serving
as an executive officer of the Company as of the end of fiscal 2013.</P>

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

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

<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: top">
    <td style="border-top: Black 0.5pt solid; border-left: black 0.5pt solid; width: 47%">&nbsp;</td>
    <td style="border-top: Black 0.5pt solid; border-left: black 0.5pt solid; text-align: center; width: 9%">&nbsp;</td>
    <td style="border-top: Black 0.5pt solid; border-left: black 0.5pt solid; width: 11%">&nbsp;</td>
    <td style="border-top: Black 0.5pt solid; border-left: black 0.5pt solid; text-align: center; width: 10%">&nbsp;</td>
    <td style="border-top: Black 0.5pt solid; border-right: black 0.5pt solid; border-left: black 0.5pt solid; text-align: center; width: 13%">&nbsp;</td>
    <td style="border-top: Black 0.5pt solid; border-right: black 0.5pt solid; text-align: center; border-left-color: black; border-left-width: 0.5pt; width: 10%">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="border-left: black 0.5pt solid">&nbsp;</td>
    <td style="border-left: black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="border-left: black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="border-left: black 0.5pt solid; text-align: center">Option</td>
    <td style="border-right: black 0.5pt solid; border-left: black 0.5pt solid; text-align: center">All Other&nbsp;</td>
    <td style="border-right: black 0.5pt solid; text-align: center; border-left-color: black; border-left-width: 0.5pt">Total</td></tr>
<tr style="vertical-align: top">
    <td style="border-left: black 0.5pt solid">Name and Position</td>
    <td style="border-left: black 0.5pt solid; text-align: center">Fiscal</td>
    <td style="border-left: black 0.5pt solid; text-align: center">Salary</td>
    <td style="border-left: black 0.5pt solid; text-align: center">Awards</td>
    <td style="border-right: black 0.5pt solid; border-left: black 0.5pt solid; text-align: center">Compensation</td>
    <td style="border-right: black 0.5pt solid; text-align: center; border-left-color: black; border-left-width: 0.5pt">($)&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="border-bottom: Black 0.5pt solid; border-left: black 0.5pt solid">&nbsp;</td>
    <td style="border-bottom: Black 0.5pt solid; border-left: black 0.5pt solid; text-align: center">Year</td>
    <td style="border-bottom: Black 0.5pt solid; border-left: black 0.5pt solid; text-align: center">($)</td>
    <td style="border-bottom: Black 0.5pt solid; border-left: black 0.5pt solid; text-align: center">($)**</td>
    <td style="border-right: black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: black 0.5pt solid; text-align: center">($) *</td>
    <td style="border-right: black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left-color: black; border-left-width: 0.5pt">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: middle; border-left: black 0.5pt solid; text-align: center">(a)</td>
    <td style="vertical-align: middle; text-align: center">(b)</td>
    <td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center">(c)</td>
    <td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center">(f)</td>
    <td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">(i)</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">(j)</td></tr>
<tr>
    <td style="vertical-align: top; border-top: black 0.5pt solid; border-left: black 0.5pt solid">J. James Gaynor</td>
    <td style="vertical-align: top; border-top: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">2013</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; border-left: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">214,616</td>
    <td style="vertical-align: top; text-align: right; border-left-color: black; border-left-width: 0.5pt">37,385</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">252,001</td></tr>
<tr>
    <td style="vertical-align: top; border-left: black 0.5pt solid">President &amp; Chief Executive Officer</td>
    <td style="vertical-align: top; border-left: Black 0.5pt solid; text-align: center">2012</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">218,943</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">37,702</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">256,645</td></tr>
<tr>
    <td style="vertical-align: top; border-top: black 0.5pt solid; border-left: black 0.5pt solid">Dorothy M. Cipolla</td>
    <td style="vertical-align: top; border-top: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">2013</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; border-left: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">157,385</td>
    <td style="vertical-align: top; border-left: black 0.5pt solid; text-align: right">10,081</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; text-align: right; border-left-color: black; border-left-width: 0.5pt">167,466</td></tr>
<tr>
    <td style="vertical-align: top; border-bottom: Black 0.5pt solid; border-left: black 0.5pt solid">Chief Financial Officer, Treasurer &amp; Secretary&nbsp;</td>
    <td style="vertical-align: top; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">2012</td>
    <td style="vertical-align: top; border-bottom: Black 0.5pt solid; border-left: black 0.5pt solid; text-align: right">159,289</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">9,587</td>
    <td style="vertical-align: bottom; border-right: black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: black; border-left-width: 0.5pt">168,876</td></tr>
<tr>
    <td style="vertical-align: top; border-left: black 0.5pt solid; border-top-color: black; border-top-width: 0.5pt">Alan Symmons</td>
    <td style="vertical-align: top; border-left: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">2013</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; border-left: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">133,538</td>
    <td style="vertical-align: top; border-left: black 0.5pt solid; text-align: right">9,409</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; text-align: right; border-left-color: black; border-left-width: 0.5pt">142,947</td></tr>
<tr>
    <td style="vertical-align: top; border-bottom: Black 0.5pt solid; border-left: black 0.5pt solid">Corporate Vice President of Engineering</td>
    <td style="vertical-align: top; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">2012</td>
    <td style="vertical-align: top; border-right: black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: black 0.5pt solid; text-align: right">135,154</td>
    <td style="vertical-align: top; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">8,460</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">143,614</td></tr>
</table>


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">* Other Compensation, as defined by SEC
rules does not include the amounts that qualify under the applicable de minimis rule for all periods presented. The de minimis
rule does not require reporting of perquisites and other compensation that totals less than $10,000 in the aggregate. The nature
of these compensatory items include the Company&rsquo;s contribution toward the premium cost for employee and dependent medical,
dental, life and disability income insurances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">** The disclosed amounts reflect the
dollar amount recognized for financial statement reporting purposes for the fiscal year ended June&nbsp;30, 2013 in accordance
with FASB ASC Topic 718 and thus may include amounts from awards granted in and prior to fiscal 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">The Company&rsquo;s Plan includes
several available forms of stock compensation of which incentive stock options, non-qualified stock options and restricted
stock awards have been granted to date. Most awards granted under the Plan vest ratably over two to four years and generally
have three-year to ten-year contract lives. The initial assumed forfeiture rate used in calculating the fair value of option
grants with both performance and service conditions was 20% for 2013 and 2012. The forfeiture rate for restricted stock units
was 0% for 2013 and 2012. The volatility rate is based on historical trends in common stock closing prices and the expected
term was determined based primarily on interest rates for constant maturities. The Company uses the Blank-Scholes-Merton
pricing model. The amounts reflect the dollar amount recognized for financial statement reporting purposes for fiscal year
ended June 30, 2013 in accordance with ASC Topic 718 and thus may include amounts from awards granted in and prior to fiscal
2013. The assumptions used were:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">&nbsp;</P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
    <TD STYLE="width: 43%">&nbsp;</td>
    <TD STYLE="font-weight: bold; text-align: center; width: 32%">Year ended</td>
    <TD STYLE="font-weight: bold; text-align: center; width: 25%">Year Ended</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">June 30, 2013</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">June 30, 2012</td></tr>
<tr style="vertical-align: bottom">
    <td>Expected volatility</td>
    <td style="text-align: center">110% - 120%</td>
    <td style="text-align: center">119% - 122%</td></tr>
<tr style="vertical-align: bottom">
    <td>Weighted average expected volatility</td>
    <td style="text-align: center">110% - 120%</td>
    <td style="text-align: center">119% - 122%</td></tr>
<tr style="vertical-align: bottom">
    <td>Dividend yields</td>
    <td style="text-align: center">0%</td>
    <td style="text-align: center">0%</td></tr>
<tr style="vertical-align: bottom">
    <td>Risk-free interest rate</td>
    <td style="text-align: center">0.67% - 1.72%</td>
    <td style="text-align: center">0.9% - 2.01%</td></tr>
<tr style="vertical-align: bottom">
    <td>Expected term, in years</td>
    <TD STYLE="text-align: center">3 - 7</td>
    <TD STYLE="text-align: center">3 - 7</td></tr>
</table>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; color: Red"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>Narrative Discussion of Summary Compensation Table of
Executive Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The following is a narrative discussion
of the material information which we believe is necessary to understand the information disclosed in the foregoing Summary Compensation
Table. The following narrative disclosure is separated into sections, with a separate section for each of our executive officers.
Each executive officer receives a base salary, and is eligible for an incentive bonus based on attaining certain goals and long-term
equity incentive awards, which are designed to reward executive officers for achieving strategic milestones, as well as for retaining
executive officers and other key employees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The goals set for the fiscal 2012 and
2013 incentive bonus plans were not met, so no bonus payments were made to the executive officers. The Compensation Committee did
award discretionary stock options to the executive officers for fiscal 2012 and 2013.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Cash Compensation (Base Salary)</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Gaynor earned total cash compensation for
his services to the Company in fiscal 2013 in the amount of $214,616. This represents his annual base salary for fiscal 2013. The
base salary paid to Mr. Gaynor for fiscal 2013 constituted approximately 85% of the total compensation paid to Mr. Gaynor as set
forth in the &ldquo;Total&rdquo; column in the Summary Compensation Table.&nbsp;</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 6, 2007, Mr. Gaynor was granted
an option to purchase 15,000 shares, all of which is now vested. Based on the vesting schedule of the option, we recognized compensation
expense of $2,066 in fiscal 2012 under ASC Topic 718, <I>Stock Compensation</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 31, 2008, Mr. Gaynor was granted
an option to purchase 30,000 shares, all of which is now vested. Based on the vesting schedule of the option, we recognized $4,241
of compensation expense for fiscal 2012 under ASC Topic 718, <I>Stock Compensation</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 4, 2010, Mr. Gaynor was granted
an option to purchase 50,000 shares. One-fourth of the option shares vests on each of the first, second, third and fourth anniversaries
of the grant date. Based on the vesting schedule of the option, we recognized $17,762 of compensation expense for fiscal 2012 and
$17,762 in fiscal 2013. We expect to recognize compensation expense of approximately $10,363 in fiscal 2014 under ASC Topic 718,
<I>Stock Compensation</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 3, 2010, Mr. Gaynor was granted
an option to purchase 25,000 shares. One-fourth of the option shares vests on each of the first, second, third and fourth anniversaries
of the grant date. Based on the vesting schedule of the option, we recognized $8,388 of compensation expense for fiscal 2012 and
$8,388 for fiscal 2013. We expect to recognize compensation expense of approximately $8,388 in fiscal 2014 and $2,797 in fiscal
2015 under ASC Topic 718, <I>Stock Compensation</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 27, 2011, Mr. Gaynor was granted
an option to purchase 40,000 shares. One-fourth of the option shares vests on each of the first, second, third and fourth anniversaries
of the grant date. Based on the vesting schedule of the option, we recognized $5,245 of compensation expense for fiscal 2012 and
$6,992 for fiscal 2013. We expect to recognize compensation expense of approximately $6,992 in each of fiscal 2014 and fiscal 2015
and $1,747 in fiscal 2016 under ASC Topic 718, <I>Stock Compensation</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 25, 2012, Mr. Gaynor was granted
an option to purchase 40,000 shares. One-fourth of the option shares vests on each of the first, second, third and fourth anniversaries
of the grant date. Based on the vesting schedule of the option, we recognized $3,565 of compensation expense for fiscal 2013. We
expect to recognize compensation expense of approximately $4,752 in each of fiscal 2014, fiscal 2015 and fiscal 2016 and $1,188
in fiscal 2017 under ASC Topic 718, <I>Stock Compensation</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 31, 2013, Mr. Gaynor was granted
an option to purchase 13,000 shares. One-fourth of the option shares vests on each of the first, second, third and fourth anniversaries
of the grant date. Based on the vesting schedule of the options, we recognized $678 of compensation expense for fiscal 2013. We
expect to recognize compensation expense of approximately $1,355 in each of fiscal 2014, fiscal 2015 and fiscal 2016 and $677 in
fiscal 2017 under ASC Topic 718, <I>Stock Compensation</I>.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Gaynor is eligible to participate in COBRA
health insurance and in any other benefits generally available to our employees. He received &ldquo;other compensation&rdquo; for
these benefits generally available to all of our employees, including insurance payments for health insurance, dental insurance,
life insurance, short term disability and long term disability premiums. &nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Change of Control Agreement</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Mr. Gaynor is eligible to receive twenty-four months compensation
in the event of a change-of-control. For additional details, please see the section titled &ldquo;Potential Payments Upon Termination
or Change-of-Control&rdquo;.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Cash Compensation (Base Salary)</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">Ms.&nbsp;Cipolla earned total cash compensation
for her services to the Company in fiscal 2013 in the amount of $157,385. This represents her annual base salary for fiscal 2013.
The base salary paid to Ms.&nbsp;Cipolla for fiscal 2013 constituted approximately 94% of the total compensation paid to Ms.&nbsp;Cipolla
as set forth in the &ldquo;Total&rdquo; column in the Summary Compensation Table.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Stock Option Awards</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On November&nbsp;6, 2007, Ms.&nbsp;Cipolla
was granted an option to purchase 10,000 shares, all of which are now vested. Based on the vesting schedule of the option, the
Company recognized compensation expense of $1,375 in fiscal 2012 under ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On February&nbsp;4, 2010, Ms.&nbsp;Cipolla
was granted an option to purchase 10,000 shares. One-fourth of the option shares vests on each of the first, second, third and
fourth anniversaries of the grant date. Based on the vesting schedule of the option, the Company recognized compensation expense
of $3,553 in fiscal 2012 and approximately $3,553 in fiscal 2013 and expects to recognize $2,072 in fiscal 2014 under ASC Topic
718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On November&nbsp;3, 2010, Ms.&nbsp;Cipolla
was granted an option to purchase 9,000 shares. One-fourth of the option shares vests on each of the first, second, third and fourth
anniversaries of the grant date. Based on the vesting schedule of the option, the Company recognized compensation expense of $3,020
in fiscal 2012 and $3,020 in fiscal 2013 and expects to recognize compensation expense of approximately $3,020 in fiscal 2014 and
$1,007 in fiscal 2015 under ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On October&nbsp;27, 2011, Ms.&nbsp;Cipolla
was granted an option to purchase 12,500 shares. One-fourth of the option shares vests on each of the first, second, third and
fourth anniversaries of the grant date. Based on the vesting schedule of the option, the Company recognized compensation expense
of $1,640 in fiscal 2012 and $2,185 in fiscal 2013 and expects to recognize compensation expense of approximately $2,185 in each
of fiscal 2014 and fiscal 2015 and $545 in fiscal 2016 under ASC Topic 718, <I>Stock Compensation</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 25, 2012, Ms. Cipolla was granted
an option to purchase 12,500 shares. One-fourth of the option shares vests on each of the first, second, third and fourth anniversaries
of the grant date. Based on the vesting schedule of the option, we recognized $1,114 of compensation expense for fiscal 2013. We
expect to recognize compensation expense of approximately $1,485 in each of fiscal 2014, fiscal 2015 and fiscal 2016 and $371 in
fiscal 2017 under ASC Topic 718, <I>Stock Compensation</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 31, 2013, Ms. Cipolla was granted
an option to purchase 4,000 shares. One-fourth of the option shares vests on each of the first, second, third and fourth anniversaries
of the grant date. Based on the vesting schedule of the option, we recognized $209 of compensation expense for fiscal 2013. We
expect to recognize compensation expense of approximately $417 in each of fiscal 2014, fiscal 2015 and fiscal 2016 and $208 in
fiscal 2017 under ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>All Other Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">Ms.&nbsp;Cipolla is eligible to participate
in COBRA health insurance and in any other benefits generally available to our employees. She received &ldquo;other compensation&rdquo;
for these benefits generally available to all of our employees, including insurance payments for health insurance, life insurance,
short term disability and long term disability premiums.&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">&nbsp;<I>Change of Control Agreement</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">Ms.&nbsp;Cipolla is eligible to receive
three months compensation in the event of a change-of-control. For additional details, please see the section titled &ldquo;Potential
Payments Upon Termination or Change-of-Control&rdquo;.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Cash Compensation (Base Salary)</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">Mr.&nbsp;Symmons earned total cash compensation
for his services to the Company in fiscal 2013 in the amount of $133,538. This represents his annual base salary for fiscal 2013.
The base salary paid to Mr.&nbsp;Symmons for fiscal 2013 constituted approximately 93% of the total compensation paid to Mr.&nbsp;Symmons
as set forth in the &ldquo;Total&rdquo; column in the Summary Compensation Table.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Stock Options Awards</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On December&nbsp;3, 2007, Mr.&nbsp;Symmons
was granted an option to purchase 5,000 shares, all of which are now vested. Based on the vesting schedule of the option, the Company
recognized compensation expense of approximately $919 in fiscal 2012 under ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On February&nbsp;4, 2010, Mr.&nbsp;Symmons
was granted an option to purchase 10,000 shares. One-fourth of the option shares vests on each of the first, second, third and
fourth anniversaries of the grant date. Based on the vesting schedule of the option, the Company recognized compensation expense
of $3,553 in fiscal 2012 and fiscal 2013 and expects to recognize compensation expense of approximately $2,072 in fiscal 2014 under
ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On November&nbsp;3, 2010, Mr.&nbsp;Symmons
was granted an option to purchase 7,000 shares. One-fourth of the option shares vests on each of the first, second, third and fourth
anniversaries of the grant date. Based on the vesting schedule of the option, the Company recognized compensation expense of $2,349
in fiscal 2012 and $2,349 in fiscal 2013 and expects to recognize compensation expense of approximately $2,349 in fiscal 2014 and
$784 in fiscal 2015 under ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On October&nbsp;27, 2011, Mr.&nbsp;Symmons
was granted an option to purchase 12,500 shares. One-fourth of the option shares vests on each of the first, second, third and
fourth anniversaries of the grant date. Based on the vesting schedule of the option, the Company recognized compensation expense
of $1,640 in fiscal 2012 and $2,185 in fiscal 2013 and expects to recognize compensation expense of approximately $2,185 in each
of fiscal 2014 and fiscal 2015 and $545 in fiscal 2016 under ASC Topic 718, <I>Stock Compensation</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 25, 2012, Mr. Symmons was granted
an option to purchase 12,500 shares. One-fourth of the option shares vests on each of the first, second, third and fourth anniversaries
of the grant date. Based on the vesting schedule of the option, we recognized $1,114 of compensation expense for fiscal 2013. We
expect to recognize compensation expense of approximately $1,485 in each of fiscal 2014, fiscal 2015 and fiscal 2016 and $371 in
fiscal 2017 under ASC Topic 718, <I>Stock Compensation</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 31, 2013, Mr. Symmons was granted
an option to purchase 4,000 shares. One-fourth of the options shares vests on each of the first, second, third and fourth anniversaries
of the grant date. Based on the vesting schedule of the option, we recognized $209 of compensation expense for fiscal 2013. We
expect to recognize compensation expense of approximately $417 in each of fiscal 2014, fiscal 2015 and fiscal 2016 and $208 in
fiscal 2017 under ASC Topic 718, <I>Stock Compensation</I>.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>All Other Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">Mr.&nbsp;Symmons is eligible to participate
in COBRA health insurance and in any other benefits generally available to our employees. He received &ldquo;other compensation&rdquo;
for these benefits generally available to all of our employees, including insurance payments for health insurance, life insurance,
short term disability and long term disability premiums.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Change of Control Agreement</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">Mr.&nbsp;Symmons is eligible to receive
three months compensation in the event of a change-of-control. For additional details, please see below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B>Potential Payments Upon Termination or Change-of-Control
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">The following table provides change-of-control
payments due to the executive officers named in the Summary Compensation Table. These payments would be due to the executive officers
in the event of a change-of-control.&nbsp;</P>

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

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
    <TD STYLE="font-weight: bold; width: 60%">&nbsp;</td>
    <TD STYLE="font-weight: bold; width: 40%">Amount of Payment Upon</td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Executive Officer</td>
    <TD STYLE="font-weight: bold">A Change of Control (1)</td></tr>
<tr>
    <TD STYLE="padding-left: 12px; vertical-align: top; border: Black 0.5pt solid; text-align: left">J. James Gaynor (2)</td>
    <TD STYLE="vertical-align: bottom; border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;450,000</td></tr>
<tr>
    <TD STYLE="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Dorothy Cipolla (3)</td>
    <TD STYLE="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41,250</td></tr>
<tr>
    <TD STYLE="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Alan Symmons (3)</td>
    <TD STYLE="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35,000</td></tr>
</table>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0">All unvested stock options for Mr. Gaynor immediately vests
upon a change of control. If Mr. Gaynor is terminated without cause, he is entitled to three months paid COBRA benefits.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.5pt"></TD><TD STYLE="width: 18pt">(1)</TD><TD>A change-of-control is defined as any of the following transactions occurring:</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 67pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">The dissolution or liquidation of the Company,</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 67pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">The stockholders of the Company approve an agreement providing for a sale, lease or other disposition
of all or substantially all of the assets of the Company and the transactions contemplated by such agreement are consummated,</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 67pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">A merger or a consolidation in which the Company is not the surviving entity,</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 67pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">Any person acquires the beneficial ownership of securities of the Company representing at least
fifty percent (50%) of the combined voting power entitled to vote in the election of directors, and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 67pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">The individuals who, prior to the transaction, are members of the Board (the &ldquo;Incumbent Board&rdquo;)
cease for any reason to constitute at lease fifty percent (50%) of the Board, except that if the election of or nomination for
election by the stockholders of any new director was approved by a vote of at least fifty percent (50%) of the Incumbent Board,
such new director shall be deemed to be a member of the Incumbent Board.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">Notwithstanding the foregoing,
a public offering of the common stock of the Company shall not be considered a change-of-control. &nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0 40.5pt; text-align: justify; text-indent: -13.5pt">(2) Payments
made pursuant to a change of control to Mr.&nbsp;Gaynor would be paid in a lump sum and would only be paid out in the event Mr.&nbsp;Gaynor
was no longer employed by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0 40.5pt; text-align: justify; text-indent: -13.5pt">(3) Payments
made pursuant to a change-of-control to Ms. Cipolla or Mr. Symmons would occur according to our normal payroll schedule and would
only be paid out in the event they were no longer employed by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 24pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0 40.5pt; text-align: justify; text-indent: -13.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Outstanding Equity Awards at Fiscal Year-End</B></P>

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

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

<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center; width: 26%">(a)</td>
    <td style="font-weight: bold; border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt; width: 17%">(b)</td>
    <td style="font-weight: bold; border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt; width: 15%">(c)</td>
    <td style="font-weight: bold; border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; text-align: center; width: 11%">(e)</td>
    <td style="font-weight: bold; border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt; width: 18%">&nbsp;</td>
    <td style="font-weight: bold; border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; text-align: center; width: 13%">(f)</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">Name</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Number of</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Number of</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center">Option</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Vesting</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center">Option</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">Securities</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">Securities</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">Exercise</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">Schedule</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Expiration</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">Underlying</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">Underlying</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">Price ($)</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Date</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">Unexercised</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">Unexercised</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">Options (#)</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">Options (#)</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">Exercisable</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">Unexercisable</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">&nbsp;</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">J. James Gaynor</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.47</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">2 year cliff</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">7/24/2016</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.80</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">10/27/2016</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.05</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">11/6/2017</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">1/31/2018</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,500</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.66</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; border-left-color: Black; border-left-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">2/4/2020</td></tr>
<tr>
    <td style="padding-left: 12px; font-weight: bold; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">12,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.69</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">11/3/2020</td></tr>
<tr>
    <td style="padding-left: 12px; font-weight: bold; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">10,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">10/27/2021</td></tr>
<tr>
    <td style="padding-left: 12px; font-weight: bold; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.98</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">10/25/2022</td></tr>
<tr>
    <td style="padding-left: 12px; font-weight: bold; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.87</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">1/31/2023</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">Dorothy Cipolla</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.53</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">2 year cliff</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">2/28/2016</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.80</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">10/27/2016</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.05</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">11/6/2017</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.66</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">2/4/2020</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">4,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.69</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">11/3/2020</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">3,125</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,375</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">10/27/2021</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.98</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">10/25/2022</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.87</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">1/31/2023</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">Alan Symmons</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.24</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">4 year cliff</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">10/18/2016</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.27</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">12/3/2017</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.66</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">2/4/2020</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">3,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.69</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">11/3/2020</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">3,125</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,375</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">10/27/2021</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,500</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.98</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">10/25/2022</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.87</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">1/31/2023</td></tr>
</table>


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 24pt">The stock options
are issued pursuant to the Plan and have a ten year life. The awards will terminate 90 days after termination of employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; text-align: center"><B>DIRECTOR
COMPENSATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 24pt"><B>Director Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The Company uses a combination of cash
and stock-based incentive compensation to attract and retain qualified candidates to serve on its Board of Directors. In setting
director compensation, the Company considers the significant amount of time that directors expend in fulfilling their duties to
the Company as well as the skill-level required by the Company of members of the Board of Directors.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 24pt; margin-right: 0; margin-left: 0"><B>Cash Compensation Paid
to Board Members</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">All
non-employee members of the Board of Directors receive a retainer of $2,000 per month, paid quarterly. There are no meeting attendance
fees paid unless, by action of the Board of Directors, such fees are deemed advisable due to a special project or other effort
requiring extra-normal commitment of time and effort. Additionally, the following fees are paid to the Chairman of the Board and
Committee Chairmen on a quarterly basis for their responsibilities overseeing their respective functions:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 80%">
<tr>
    <TD STYLE="width: 65%; font-size: 10pt">&nbsp;</td>
    <TD STYLE="vertical-align: bottom; width: 16%; font-size: 10pt; text-indent: 0pt; padding-left: -10pt"><font style="font-size: 10pt">Base
    Amount</font></td>
    <TD STYLE="width: 2%; font-size: 10pt">&nbsp;</td>
    <TD STYLE="width: 17%; font-size: 10pt">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; border: black 1pt solid; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><font style="font-size: 10pt">Chairman of the Board</font></td>
    <td style="vertical-align: bottom; border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 10pt"><font style="font-size: 10pt">&nbsp;&nbsp;$ 15,000</font></td>
    <td style="vertical-align: bottom; border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 10pt">&nbsp;</td>
    <td style="vertical-align: bottom; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 20pt; font-size: 10pt">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><font style="font-size: 10pt">Audit Committee Chairman</font></td>
    <td style="vertical-align: bottom; border-bottom: black 1pt solid; font-size: 10pt"><font style="font-size: 10pt">&nbsp;&nbsp;$ &nbsp;2,000</font></td>
    <td style="vertical-align: bottom; border-bottom: black 1pt solid; font-size: 10pt">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 6pt; font-size: 10pt; text-align: right">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><font style="font-size: 10pt">Compensation Committee Chairman</font></td>
    <td style="vertical-align: bottom; border-bottom: black 1pt solid; font-size: 10pt"><font style="font-size: 10pt">&nbsp;&nbsp;$&nbsp;&nbsp;1,000</font></td>
    <td style="vertical-align: bottom; border-bottom: black 1pt solid; font-size: 10pt">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 6pt; font-size: 10pt; text-align: right">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 12pt; font-size: 10pt; text-indent: -12pt"><font style="font-size: 10pt">Finance Committee Chairman</font></td>
    <td style="vertical-align: bottom; border-bottom: black 1pt solid; font-size: 10pt"><font style="font-size: 10pt">&nbsp;&nbsp;$&nbsp;&nbsp;1,000</font></td>
    <td style="vertical-align: bottom; border-bottom: black 1pt solid; font-size: 10pt">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-right: 6pt; font-size: 10pt; text-align: right">&nbsp;</td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">The Directors earned the amounts above
for fiscal 2013, which amounts reflect a 5% reduction from the normal base fee amount. This reduction was put in place when the
Orlando staff received a pay reduction in April 2012. The board fees reverted to the normal base fee amounts when the Orlando pay
reduction was eliminated in the fourth quarter of fiscal 2013. Directors who are employees of the Company receive no compensation
for their service as directors.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 24pt; margin-right: 0; margin-left: 0">The table below summarizes
the compensation paid by the Company to non-employee directors for the fiscal year ended June&nbsp;30, 2013.&nbsp;</P>

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

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
    <TD STYLE="border-top: Black 0.5pt solid; border-left: Black 0.5pt solid; width: 33%">&nbsp;</td>
    <TD STYLE="border-top: Black 0.5pt solid; border-left: Black 0.5pt solid; width: 19%">&nbsp;</td>
    <TD STYLE="border-top: Black 0.5pt solid; border-left: Black 0.5pt solid; width: 14%">&nbsp;</td>
    <TD STYLE="border-top: Black 0.5pt solid; border-left: Black 0.5pt solid; width: 18%">&nbsp;</td>
    <TD STYLE="border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; width: 16%">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="border-right: Black 0.5pt solid; border-left: Black 0.5pt solid">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-left: Black 0.5pt solid">Name (1)</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">Fees&nbsp;Earned&nbsp;or</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">Stock</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">All Other</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Total</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">Paid in Cash</td>
    <td style="font-weight: bold; border-left: Black 0.5pt solid; text-align: center">Awards</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">Compensation</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">($)</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">($)(2)</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">($)(3)</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">($)</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">(a)</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">(b)</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">(c)</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">(g)</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">(h)</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Robert Ripp</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79,800</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,461</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,594 (4)&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;129,855</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Sohail Khan</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,800</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,461</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61,261</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Steve Brueck</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,800</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,461</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61,261</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Louis Leeburg</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,400</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,461</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68,861</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Gary Silverman</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,600</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,461</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65,061</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">M. Scott Faris</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,800</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,717</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33,517</td></tr>
</table>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; 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: 3%; font-size: 10pt; text-align: justify"><font style="font-size: 10pt">(1)</font></td>
    <td style="width: 97%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">J. James Gaynor, the Company&rsquo;s President
        and Chief Executive Officer during fiscal 2013, is not included in this table as he was an employee of the Company and thus received
        no compensation for his services as director. The compensation received by Mr.&nbsp;Gaynor as an employee of the Company is shown
        in the Summary Compensation Table on page 26.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="font-size: 10pt; text-align: justify"><font style="font-size: 10pt">(2)</font></td>
    <td style="font-size: 10pt; text-align: justify"><font style="font-size: 10pt">Total fees earned for fiscal 2013, includes all fees earned, including earned but unpaid fees. The amounts of unpaid fees for each director are as follows: Mr. Ripp - $19,950, Mr. Leeburg - $7,600, Mr. Silverman - $6,650, Dr. Brueck - $5,700, Mr. Khan -&nbsp;&nbsp;$5,700 and Mr. Faris - $5,700. These amounts were paid in August 2013.</font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&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: 4%; font-size: 10pt; text-align: justify"><font style="font-size: 10pt">(3)</font></td>
    <td>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Reflects the dollar amount recognized for financial
        statement reporting purposes for the fiscal year ended June&nbsp;30, 2013 in accordance with ASC Topic 718 and thus may include
        amounts from awards granted in and prior to 2013.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="font-size: 10pt; text-align: justify"><font style="font-size: 10pt">(4)</font></td>
    <td style="font-size: 10pt; text-align: justify"><font style="font-size: 10pt">Mr. Ripp&rsquo;s &ldquo;other compensation&rdquo; includes monies received for travel reimbursement for fiscal 2013.&nbsp;&nbsp;This amount includes parking, mileage and toll expenses for Company related meetings and leased aircraft fees for travel to one board meeting. </font></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B>Stock Option/Restricted Stock Program</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B></B>All directors are eligible to receive equity incentives under the Plan, including stock options, restricted stock awards or
units. In fiscal year 2013, the following directors received grants under the Plan:</P>

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

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<tr style="vertical-align: bottom">
    <TD STYLE="width: 37%">&nbsp;</td>
    <TD STYLE="font-weight: bold; text-align: center; width: 27%">&nbsp;</td>
    <TD STYLE="width: 18%">&nbsp;</td>
    <TD STYLE="width: 18%">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; padding-left: -10pt; text-indent: -70pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted Stock Units</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Name of Director</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0">Number of Units</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Granted</P></td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Grant Date</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0">Fair Value</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Price Per Share</P></td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;&nbsp;Dr. Steve Brueck</td>
    <td style="text-align: right">40,000</td>
    <td style="text-align: right">1/31/2013</td>
    <td style="text-align: right">$0.87</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;&nbsp;Sohail Khan</td>
    <td style="text-align: right">40,000</td>
    <td style="text-align: right">1/31/2013</td>
    <td style="text-align: right">$0.87</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;&nbsp;Louis Leeburg</td>
    <td style="text-align: right">40,000</td>
    <td style="text-align: right">1/31/2013</td>
    <td style="text-align: right">$0.87</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;&nbsp;Robert Ripp</td>
    <td style="text-align: right">40,000</td>
    <td style="text-align: right">1/31/2013</td>
    <td style="text-align: right">$0.87</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;&nbsp;Gary Silverman</td>
    <td style="text-align: right">40,000</td>
    <td style="text-align: right">1/31/2013</td>
    <td style="text-align: right">$0.87</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;&nbsp;M. Scott Faris</td>
    <td style="text-align: right">40,000</td>
    <td style="text-align: right">1/31/2013</td>
    <td style="text-align: right">$0.87</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right">240,000</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
</table>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B>Narrative Disclosure of Summary Compensation Table of Directors</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The following is a narrative discussion
of the material information which we believe is necessary to understand the information disclosed in the previous tables. The following
narrative disclosure is separated into sections, with a separate section for each of our directors, expect for Mr. Gaynor.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Cash Compensation (Base Fees and Position
Fees)</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">Mr.&nbsp;Ripp earned total cash compensation
for his services to the Company in fiscal 2013 in the amount of $79,800 of which $19,950 was due in accounts payable at year end.
This represents his retainer and chairman fees for fiscal 2013. The base fees to Mr.&nbsp;Ripp for fiscal 2013 constituted approximately
61% of the total fees paid to Mr.&nbsp;Ripp as set forth in the &ldquo;Total&rdquo; column in the Summary Compensation Table.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Long-Term Equity Incentive Awards</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On February&nbsp;4, 2010, Mr.&nbsp;Ripp
was granted a restricted stock unit for 15,000 shares, all of which are now vested. Based on the vesting schedule of the stock,
the Company recognized compensation expense of $9,950 in fiscal 2012 and $5,807 in fiscal 2013 in accordance with ASC Topic 718,
<I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On November&nbsp;3, 2010, Mr.&nbsp;Ripp
was granted a restricted stock unit for 15,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $13,450 in fiscal
2012 and $13,450 in fiscal 2013 and expects to recognize $4,487 in fiscal 2014 in accordance with ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On October&nbsp;27, 2011, Mr.&nbsp;Ripp
was granted a restricted stock unit for 29,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $10,078 in fiscal
2012 and $13,437 in fiscal 2013 and expects to recognize $13,437 in fiscal 2014 and $3,358 in fiscal 2015 in accordance with ASC
Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On January&nbsp;31, 2013, Mr.&nbsp;Ripp
was granted a restricted stock unit for 40,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $5,767 in fiscal
2013 and expects to recognize $11,533 in fiscal 2014 and fiscal 2015 and $5,766 in fiscal 2016 in accordance with ASC Topic 718,
<I>Stock Compensation</I>.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Cash Compensation (Base Fees and Position
Fees)</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">Mr.&nbsp;Khan earned total cash compensation
for his services to the Company in fiscal 2013 in the amount of $22,800 of which $5,700 was due in accounts payable at year end.
This represents his retainer for fiscal 2013. The base fees to Mr.&nbsp;Khan for fiscal 2013 constituted approximately 37% of the
total fees paid to Mr.&nbsp;Khan as set forth in the &ldquo;Total&rdquo; column in the Summary Compensation Table.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Long-Term Equity Incentive Awards</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On February&nbsp;4, 2010, Mr.&nbsp;Khan
was granted a restricted stock unit for 15,000 shares, all of which are now vested. Based on the vesting schedule of the stock,
the Company recognized compensation expense of $9,950 in fiscal 2012 and $5,807 in fiscal 2013 in accordance with ASC Topic 718,
<I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On November&nbsp;3, 2010, Mr.&nbsp;Khan
was granted a restricted stock unit for 15,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $13,450 in fiscal
2012 and $13,450 in fiscal 2013 and expects to recognize $4,487 in fiscal 2014 in accordance with ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On October&nbsp;27, 2011, Mr.&nbsp;Khan
was granted a restricted stock unit for 29,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $10,078 in fiscal
2012 and $13,437 in fiscal 2013 and expects to recognize $13,437 in fiscal 2014 and $3,358 in fiscal 2015 in accordance with ASC
Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On January&nbsp;31, 2013, Mr.&nbsp;Khan
was granted a restricted stock unit for 40,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $5,767 in fiscal
2013 and expects to recognize $11,533 in fiscal 2014 and fiscal 2015 and $5,766 in fiscal 2016 in accordance with ASC Topic 718,
<I>Stock Compensation</I>.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Cash Compensation (Base Fees and Position
Fees)</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">Dr.&nbsp;Brueck earned total cash compensation
for his services to the Company in fiscal 2013 in the amount of $22,800 of which $5,700 due in accounts payable at year end. This
represents his retainer for fiscal 2013. The base fees to Dr.&nbsp;Brueck for fiscal 2013 constituted approximately 37% of the
total fees paid to Dr.&nbsp;Brueck as set forth in the &ldquo;Total&rdquo; column in the Summary Compensation Table.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Long-Term Equity Incentive Awards</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On February 4, 2010, Dr.&nbsp;Brueck
was granted a restricted stock unit for 15,000 shares, all of which are now vested. Based on the vesting schedule of the stock,
the Company recognized compensation expense of $9,950 in fiscal 2012 and $5,807 in fiscal 2013 in accordance with ASC Topic 718,
<I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On November&nbsp;3, 2010, Dr.&nbsp;Brueck
was granted a restricted stock unit for 15,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $13,450 in fiscal
2012 and $13,450 in fiscal 2013 and expects to recognize $4,487 in fiscal 2014 in accordance with ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On October&nbsp;27, 2011, Dr.&nbsp;Brueck
was granted a restricted stock unit for 29,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $10,078 in fiscal
2012 and $13,437 in fiscal 2013 and expects to recognize $13,437 in fiscal 2014 and $3,358 in fiscal 2015 in accordance with ASC
Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On January&nbsp;31, 2013, Dr.&nbsp;Brueck
was granted a restricted stock unit for 40,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $5,767 in fiscal
2013 and expects to recognize $11,533 in fiscal 2014 and fiscal 2015 and $5,766 in fiscal 2016 in accordance with ASC Topic 718,
<I>Stock Compensation</I>.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Cash Compensation (Base Fees and Position
Fees)</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">Mr.&nbsp;Leeburg earned total cash compensation
for his services to the Company in fiscal 2013 in the amount of $30,400 of which $7,600 was due in accounts payable at year end.
This represents his retainer and fee for audit committee chair for fiscal 2013. The base fees to Mr.&nbsp;Leeburg for fiscal 2013
constituted approximately 44% of the total fees paid to Mr.&nbsp;Leeburg as set forth in the &ldquo;Total&rdquo; column in the
Summary Compensation Table.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Long-Term Equity Incentive Awards</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On February&nbsp;4, 2010, Mr.&nbsp;Leeburg
was granted a restricted stock unit for 15,000 shares, all of which are now vested. Based on the vesting schedule of the stock,
the Company recognized compensation expense of $9,950 in fiscal 2012 and $5,807 in fiscal 2013 in accordance with ASC Topic 718,
<I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On November&nbsp;3, 2010, Mr.&nbsp;Leeburg
was granted a restricted stock unit for 15,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $13,450 in fiscal
2012 and $13,450 in fiscal 2013 and expects to recognize $4,487 in fiscal 2014 in accordance with ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On October&nbsp;27, 2011, Mr.&nbsp;Leeburg
was granted a restricted stock unit for 29,000 shares. One-third of the shares on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $10,078 in fiscal
2012 and $13,437 in fiscal 2013 and expects to recognize $13,437 in fiscal 2014 and $3,358 in fiscal 2015 in accordance with ASC
Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On January&nbsp;31, 2013, Mr.&nbsp;Leeburg
was granted a restricted stock unit for 40,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $5,767 in fiscal
2013 and expects to recognize $11,533 in fiscal 2014 and fiscal 2015 and $5,766 in fiscal 2016 in accordance with ASC Topic 718,
<I>Stock Compensation</I>.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Cash Compensation (Base Fees and Position
Fees)</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">Mr.&nbsp;Silverman earned total cash
compensation for his services to the Company in fiscal 2013 in the amount of $26,600 of which $6,650 was due in accounts payable
at year end. This represents his retainer and fee for compensation committee chair for fiscal 2013. The base fees to Mr.&nbsp;Silverman
for fiscal 2013 constituted approximately 41% of the total fees paid to Mr.&nbsp;Silverman as set forth in the &ldquo;Total&rdquo;
column in the Summary Compensation Table.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Long-Term Equity Incentive Awards</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On February&nbsp;4, 2010, Mr.&nbsp;Silverman
was granted a restricted stock unit for 15,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $9,950 in fiscal
2012 and $5,807 in fiscal 2013 in accordance with ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On November&nbsp;3, 2010, Mr.&nbsp;Silverman
was granted a restricted stock unit for 15,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $13,450 in fiscal
2012 and $13,450 in fiscal 2013 and expects to recognize $4,487 in fiscal 2014 in accordance with ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On October&nbsp;27, 2011, Mr.&nbsp;Silverman
was granted a restricted stock unit for 29,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $10,078 in fiscal
2012 and $13,437 in fiscal 2013 and expects to recognize $13,437 in fiscal 2014 and $3,358 in fiscal 2015 in accordance with ASC
Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On January&nbsp;31, 2013, Mr.&nbsp;Silverman
was granted a restricted stock unit for 40,000 shares. One-third of the shares on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $5,767 in fiscal
2013 and expects to recognize $11,533 in fiscal 2014 and fiscal 2015 and $5,766 in fiscal 2016 in accordance with ASC Topic 718,
<I>Stock Compensation</I>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>M. Scott Faris</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify"><I>Cash Compensation (Base Fees and Position
Fees)</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">Mr.&nbsp;Faris earned total cash compensation
for his services to the Company in fiscal 2013 in the amount of $22,800 of which $5,700 was due in accounts payable at year end.
This represents his retainer and fee for compensation committee chair for fiscal 2013. The base fees to Mr.&nbsp;Faris for fiscal
2013 constituted approximately 68% of the total fees paid to Mr.&nbsp;Faris as set forth in the &ldquo;Total&rdquo; column in the
Summary Compensation Table.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"><I></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"><I>Long-Term
Equity Incentive Awards</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0pt; text-indent: 0pt; text-align: justify">On December&nbsp;23, 2011, Mr.&nbsp;Faris was granted a restricted stock unit for 15,000 shares. One-third
of the shares vests on each of the first, second and third anniversaries of the grant date. Based on the vesting schedule of the
stock, the Company recognized compensation expense of $2,889 in fiscal 2012 and $4,950 in fiscal 2013 and expects to recognize
$4,950 in fiscal 2014 and $2,061 in fiscal 2015 in accordance with ASC Topic 718, <I>Stock Compensation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">On January&nbsp;31, 2013, Mr.&nbsp;Faris
was granted a restricted stock unit for 40,000 shares. One-third of the shares vests on each of the first, second and third anniversaries
of the grant date. Based on the vesting schedule of the stock, the Company recognized compensation expense of $5,767 in fiscal
2013 and expects to recognize $11,533 in fiscal 2014 and fiscal 2015 and $5,766 in fiscal 2016 in accordance with ASC Topic 718,
<I>Stock Compensation</I>.&nbsp;</P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify">The following table sets forth as of
June&nbsp;30, 2013, the end of the Company&rsquo;s most recent fiscal year, information regarding (i)&nbsp;all compensation plans
previously approved by the stockholders and (ii)&nbsp;all compensation plans not previously approved by the stockholders:</P>

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

<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr>
    <td style="vertical-align: bottom; border-bottom: Black 1.5pt solid; text-align: center; width: 37%">Plan category&nbsp;</td>
    <td rowspan="2" style="vertical-align: top; width: 2%">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1.5pt solid; text-align: center; width: 20%">Number of securities to be issued upon exercise of outstanding options, warrants and rights&nbsp;</td>
    <td style="vertical-align: top; width: 2%">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1.5pt solid; text-align: center; width: 23%">Weighted average exercise and grant price of outstanding options, warrants and rights&nbsp;</td>
    <td style="vertical-align: top; width: 2%">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 1.5pt solid; text-align: center; width: 14%">Number of securities remaining available for future issuance&nbsp;</td></tr>
<tr>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom; text-align: center">&nbsp;</td>
    <td style="vertical-align: top">&nbsp;</td>
    <td style="vertical-align: bottom; text-align: center">&nbsp;</td>
    <td style="vertical-align: top">&nbsp;</td>
    <td style="vertical-align: bottom; text-align: center">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td>Equity compensation plans approved by security holders&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td style="text-align: right">2,715,625</td>
    <td style="text-align: right">&nbsp;</td>
    <td style="text-align: center">$2.38</td>
    <td style="text-align: right">&nbsp;</td>
    <td style="text-align: right">848,012</td></tr>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<tr style="vertical-align: bottom">
    <td>Equity compensation plans not approved by security holders&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td style="text-align: center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="text-align: center">&nbsp;</td>
    <td style="text-align: center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="text-align: center">&nbsp;</td>
    <td style="text-align: center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td></tr>
</table>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0; text-indent: 0.5in"><FONT STYLE="font: 9pt Sans-Serif; color: Red"></FONT></P>

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

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


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><U>ITEM NO. 2</U><FONT STYLE="font-weight: normal"><I>
</I></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>OF OUR NAMED EXECUTIVE OFFICERS DISCLOSED
IN THE PROXY STATEMENT </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNDER THE SECTION TITLED &ldquo;EXECUTIVE
COMPENSATION&rdquo;, INCLUDING THE COMPENSATION TABLES AND OTHER NARRATIVE EXECUTIVE COMPENSATION DISCLOSURES THEREIN, REQUIRED
BY ITEM 402 OF SEC REGULATION S-K</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We believe executive compensation
is an important matter for the Company&rsquo;s stockholders. A fundamental principle of the Company&rsquo;s executive compensation
philosophy and practice continues to be to pay for performance. An executive officer&rsquo;s compensation package is comprised
of two components: (i) a base salary, which reflects individual performance and expertise and (ii) bonus and long-term incentive
awards, tied to the achievement of certain performance goals that the Compensation Committee establishes from time to time for
the Company. We believe that this type of compensation program is consistent with the Company&rsquo;s strategy, competitive practice,
sound corporate governance principles, and stockholder interests and concerns. We urge you to read this Proxy Statement for additional
details on the Company&rsquo;s executive compensation, including the Company&rsquo;s compensation philosophy and objectives and
the fiscal year 2013 compensation of the named executive officers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This proposal, commonly
known as a &ldquo;say-on-pay&rdquo; proposal, gives you as a stockholder the opportunity to endorse or not endorse our executive
pay philosophy, policies and procedures. This vote is intended to provide an overall assessment of our executive compensation program
rather than focus on any specific item of compensation. Given the information provided above and elsewhere in this Proxy Statement,
the Board of Directors asks you to approve the following resolution:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>&ldquo;RESOLVED</B>,
that the Company&rsquo;s stockholders approve the compensation of the Company&rsquo;s named executive officers described in the
Proxy Statement under the section titled &ldquo;Executive Compensation&rdquo;, including the compensation tables and other narrative
executive compensation disclosures therein, required by Item 402 of Regulation S-K.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As an advisory vote, this
proposal is non-binding on the Company. However, the Board of Directors and the Compensation Committee value the opinions of our
stockholders and will consider the outcome of the vote when making future compensation decisions for our named executive officers.&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>THE BOARD OF DIRECTORS RECOMMENDS VOTING
&ldquo;FOR&rdquo; THE APPROVAL OF THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS DISCLOSED IN THIS PROXY STATEMENT UNDER THE
SECTION TITLED &ldquo;EXECUTIVE COMPENSATION&rdquo;, INCLUDING THE COMPENSATION TABLES AND OTHER NARRATIVE EXECUTIVE COMPENSATION
DISCLOSURES THEREIN, REQUIRED BY ITEM 402 OF SEC REGULATION S-K</B></P>

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


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><U>ITEM NO. 3</U></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt; background-color: white">It
is the responsibility of the Audit Committee to select and retain independent auditors. Our Audit Committee has appointed Cross
Fernandez &amp; Riley LLP (&ldquo;CFR&rdquo;) as our independent auditor for the Company&rsquo;s fiscal year ending June&nbsp;30,
2014. Although stockholder ratification of the Audit Committee&rsquo;s selection of independent auditors is not required by our
By-laws or otherwise, we are submitting the selection of CFR to stockholder ratification so that our stockholders may participate
in this important corporate decision. If not ratified, the Audit Committee will reconsider the selection, although the Audit Committee
will not be required to select different independent auditors for the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt; background-color: white">Representatives
of CFR will be present at the Annual Meeting and will have an opportunity to make a statement and respond to questions from stockholders
present at the meeting.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table presents
fees paid or to be paid for professional audit services rendered by CFR for the audit of the Company&rsquo;s annual financial statements
during the years ended June 30, 2013 and 2012, and fees billed for other services rendered by CFR:</P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 20%"></TD>
    <TD STYLE="width: 20%; text-align: right"><U>Fiscal 2013&#9;</U></TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 20%; text-align: right"><U>Fiscal 2012</U>&#9;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left; background-color: rgb(204,238,255)">
    <TD>Audit Fees (1)&#9;</TD>
    <TD STYLE="text-align: right"> $ 118,650</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">$ 119,385</TD></TR>
<TR STYLE="vertical-align: top; text-align: left; background-color: White">
    <TD>Audit-Related Fees</TD>
    <TD STYLE="text-align: right"> --&#9; </TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"> --&#9; </TD></TR>
<TR STYLE="vertical-align: top; text-align: left; background-color: rgb(204,238,255)">
    <TD>Tax Fees</TD>
    <TD STYLE="text-align: right"> --&#9; </TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"> --&#9; </TD></TR>
<TR STYLE="vertical-align: top; text-align: left; background-color: White">
    <TD STYLE="padding-bottom: 1pt">All Other Fees</TD>
    <TD STYLE="text-align: right; border-bottom: Black 1pt solid"> --&#9; </TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right; border-bottom: Black 1pt solid">14,250&#9;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 20pt">Total All Fees</TD>
    <TD STYLE="text-align: right">$ 118,650</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">$ 120,750</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 9pt"></TD><TD STYLE="width: 27pt">(1)</TD><TD STYLE="text-align: justify">Audit Fees consisted of fees billed for professional services rendered for the audit of the Company&rsquo;s
annual financial statements and review of the interim financial statements included in quarterly reports, and review of other documents
filed with the Securities and Exchange Commission within those fiscal years. Other fees in fiscal 2012 related to fees for a withdrawn
shelf offering.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -27pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 9pt">The Audit Committee has
adopted policies and procedures to oversee the external audit process including engagement letters, estimated fees and solely
pre-approving all permitted audit and non-audit work performed by CFR.<B> </B>The Audit Committee has pre-approved all fees for
audit and non-audit work performed.&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>THE BOARD OF DIRECTORS RECOMMENDS VOTING
&quot;FOR&quot; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>THE RATIFICATION OF CFR AS THE COMPANY&rsquo;S
INDEPENDENT AUDITOR FOR THE FISCAL YEAR ENDING JUNE 30, 2014</B></P>


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Board of Directors
is not aware of any other business to be considered or acted upon at the Annual Meeting of stockholders other than that for which
notice is provided in this proxy statement and the accompanying notice. In the event any other matters properly come before the
Annual Meeting, it is expected that the shares represented by proxy will be voted with respect thereto in accordance with the judgment
of the persons voting them.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2013 ANNUAL REPORT ON FORM 10-K</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Copies of the Company&rsquo;s
Annual Report for 2013, which contains the Company&rsquo;s Form 10-K for the fiscal year ended June 30, 2013, and consolidated
financial statements, as filed with the SEC, have been included in this mailing. Additional copies may be obtained without charge
to stockholders upon written request to Investor Relations at 2603 Challenger Tech Court, Suite 100, Orlando, Florida USA 32826.
In addition, copies of this document, the Form 10-K and all other documents filed electronically by the Company may be reviewed
and printed from the SEC&rsquo;s website at: http://www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 4in">By Order of the Board of Directors,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.1pt; text-indent: 4in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.1pt; text-indent: 4in"><I>J. James Gaynor</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 4in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 4in">President &amp; Chief Executive Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 4in">Orlando, Florida</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 3.5in; text-indent: 0.5in">December 20, 2013</P>

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

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

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



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

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