<SEC-DOCUMENT>0001387131-14-003969.txt : 20141205
<SEC-HEADER>0001387131-14-003969.hdr.sgml : 20141205
<ACCEPTANCE-DATETIME>20141205155005
ACCESSION NUMBER:		0001387131-14-003969
CONFORMED SUBMISSION TYPE:	PRE 14A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20150129
FILED AS OF DATE:		20141205
DATE AS OF CHANGE:		20141205

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:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27548
		FILM NUMBER:		141269539

	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>PRE 14A
<SEQUENCE>1
<FILENAME>lpth-pre14a_012914.htm
<DESCRIPTION>PRELIMINARY PROXY STATEMENT
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<DIV ALIGN="CENTER"><FONT STYLE="display: inline; font: bold 10pt times new roman">SECURITIES AND EXCHANGE COMMISSION</FONT></DIV>
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<DIV ALIGN="CENTER"><FONT STYLE="display: inline; font: bold 12pt times new roman">SCHEDULE 14A</FONT></DIV>
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<DIV ALIGN="CENTER"><FONT STYLE="display: inline; font: bold 10pt times new roman">Proxy Statement Pursuant to Section 14(a)</FONT></DIV>
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<DIV ALIGN="CENTER"><FONT STYLE="display: inline; font: bold 10pt times new roman">of the Securities Exchange Act of 1934</FONT></DIV>
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<DIV ALIGN="CENTER"><FONT STYLE="display: inline; font: bold 10pt times new roman">(Amendment No. &#160;&#160;&#160;&#160;)</FONT></DIV>
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<DIV STYLE="line-height: 1.25; text-indent: 0pt; display: block"><FONT STYLE="font-size: 8pt"><BR>
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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="font-size: 8pt"><FONT STYLE="display: inline; font: 10pt Times New Roman">Filed by the Registrant&#160;&#160;<FONT FACE="Wingdings" STYLE="display: inline">x</FONT></FONT></FONT></DIV>

<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="font-size: 8pt"><FONT STYLE="display: inline; font: 10pt Times New Roman">Filed by a Party other than the Registrant&#160;&#160;<FONT FACE="Wingdings" STYLE="display: inline">&#168;</FONT></FONT></FONT></DIV>

<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="font-size: 8pt"><FONT STYLE="display: inline; font: 10pt Times New Roman">Check the appropriate box:</FONT></FONT></DIV>

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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt wingdings">x</FONT></DIV>
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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Preliminary Proxy Statement</FONT></DIV>
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<TD VALIGN="TOP" WIDTH="3%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD ALIGN="LEFT" ROWSPAN="7" VALIGN="TOP" WIDTH="4%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt wingdings">&#168;</FONT></DIV>
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<TD ALIGN="LEFT" ROWSPAN="7" VALIGN="TOP" WIDTH="42%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: bold 10pt times new roman">Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</FONT></DIV>
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<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="font: 10pt times new roman">&#160;</FONT></TD>
<TD VALIGN="TOP" WIDTH="44%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="3%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
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&#9744;<DIV STYLE="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"></DIV>
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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Definitive Proxy Statement</FONT></DIV>
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<TD VALIGN="TOP" WIDTH="3%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
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<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="44%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="3%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt">&#9744;</DIV>
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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Definitive Additional Materials</FONT></DIV>
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<TD VALIGN="TOP" WIDTH="3%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
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<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="44%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="3%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt">&#9744;</DIV>
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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Soliciting Material Pursuant to &#167;240.14a-12</FONT></DIV>
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<TD VALIGN="TOP" WIDTH="3%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
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<DIV ALIGN="CENTER" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="font-size: 8pt">&#160;</FONT></DIV>

<DIV ALIGN="CENTER" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt">
<DIV ALIGN="CENTER" STYLE="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="font-size: 8pt"><FONT STYLE="display: inline; font: bold 18pt Times New Roman"><FONT STYLE="display: inline; font: bold 16pt times new roman">LIGHTPATH TECHNOLOGIES, INC.</FONT></FONT></FONT></DIV>

<FONT STYLE="font-size: 8pt"><FONT STYLE="display: inline; font: bold 10pt Times New Roman">(Name of Registrant as Specified In Its Charter)</FONT></FONT></DIV>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
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<TD VALIGN="TOP" WIDTH="92%" STYLE="border-bottom: black 2px solid"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
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<DIV ALIGN="CENTER" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: bold 10pt times new roman">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</FONT></DIV>
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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="font-size: 8pt"><FONT STYLE="display: inline; font: 10pt Times New Roman">Payment of Filing Fee (Check the appropriate box):</FONT></FONT></DIV>

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<DIV STYLE="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt Times New Roman"><FONT FACE="Wingdings" STYLE="display: inline">x</FONT></FONT></DIV>
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<DIV STYLE="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt Times New Roman"><FONT FACE="Wingdings" STYLE="display: inline">&#168;</FONT></FONT></DIV>
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<DIV ALIGN="LEFT"><FONT STYLE="display: inline; font: 10pt Times New Roman">Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</FONT></DIV>
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<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">(1)</FONT></DIV>
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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Title of each class of securities to which transaction applies:</FONT></DIV>
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<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%" STYLE="border-bottom: black 2px solid"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">(2)</FONT></DIV>
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<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Aggregate number of securities to which transaction applies:</FONT></DIV>
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<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%" STYLE="border-bottom: black 2px solid"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="7%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">(3)</FONT></DIV>
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<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):</FONT></DIV>
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<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%" STYLE="border-bottom: black 2px solid"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="7%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">(4)</FONT></DIV>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Proposed maximum aggregate value of transaction:</FONT></DIV>
</TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%" STYLE="border-bottom: black 2px solid"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="7%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">(5)</FONT></DIV>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Total fee paid:</FONT></DIV>
</TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%" STYLE="border-bottom: black 2px solid"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR></TABLE>
</DIV>

<DIV>
<TABLE ALIGN="CENTER" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<TR VALIGN="TOP" STYLE="line-height: 1.25">
<TD STYLE="width: 36pt">
<DIV STYLE="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt Times New Roman"><FONT FACE="Wingdings" STYLE="display: inline">&#168;</FONT></FONT></DIV>
</TD>
<TD>
<DIV ALIGN="LEFT"><FONT STYLE="display: inline; font: 10pt Times New Roman">Fee paid previously with preliminary materials.</FONT></DIV>
</TD>
</TR></TABLE>
</DIV>

<DIV>
<TABLE ALIGN="CENTER" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<TR VALIGN="TOP" STYLE="line-height: 1.25">
<TD STYLE="width: 36pt">
<DIV STYLE="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt Times New Roman"><FONT FACE="Wingdings" STYLE="display: inline">&#168;</FONT></FONT></DIV>
</TD>
<TD>
<DIV ALIGN="LEFT"><FONT STYLE="display: inline; font: 10pt Times New Roman">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.</FONT></DIV>
</TD>
</TR></TABLE>
</DIV>

<DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="7%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">(1)</FONT></DIV>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Amount Previously Paid:</FONT></DIV>
</TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%" STYLE="border-bottom: black 2px solid"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="7%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">(2)</FONT></DIV>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Form, Schedule or Registration Statement No.:</FONT></DIV>
</TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%" STYLE="border-bottom: black 2px solid"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="7%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">(3)</FONT></DIV>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Filing Party:</FONT></DIV>
</TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%" STYLE="border-bottom: black 2px solid"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="7%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">(4)</FONT></DIV>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<DIV ALIGN="LEFT" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="display: inline; font: 10pt times new roman">Date Filed:</FONT></DIV>
</TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR><TR>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="7%"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
<TD VALIGN="TOP" WIDTH="77%" STYLE="border-bottom: black 2px solid"><FONT STYLE="display: inline; font: 10pt times new roman">&#160; </FONT></TD>
</TR></TABLE>
</DIV>

<DIV ALIGN="JUSTIFY" STYLE="line-height: 1.25; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt"><FONT STYLE="font-size: 8pt">&#160;</FONT></DIV>

<DIV></DIV>

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<DIV></DIV>

<P STYLE="font: 12pt/89% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><IMG SRC="image_001.jpg" ALT="" STYLE="height: 134px; width: 537px"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 25pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>LightPath Technologies, Inc.</B></P>

<P STYLE="font: 25pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 25pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 25pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Annual Meeting of Stockholders</B></P>

<P STYLE="font: 25pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 25pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>January 29, 2015</B></P>

<P STYLE="font: 25pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 25pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<HR NOSHADE SIZE="1" STYLE="color: Black; width: 40%; margin-top: 3pt; margin-bottom: 3pt">
<P STYLE="font: 25pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Notice and Proxy Statement</B></P>

<P STYLE="font: 25pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 25pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 25pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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"><IMG SRC="image_001.jpg" ALT="" STYLE="height: 134px; width: 537px">&nbsp;</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 4.5in; text-align: right; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">December
__, 2014</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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 29,
2015 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, approve the adoption of the proposed 2014 Employee Stock Purchase Plan,
as successor to our 2004 Employee Stock Purchase Plan, approve an amendment to our Amended and Restated Omnibus Incentive Plan
to increase the shares available for future grants under the plan, approve an amendment to our Certificate of Incorporation to
remove the limitation on the maximum size of the board of directors, 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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Your vote is important,
even more so this year, because the approval to amend our Certificate of Incorporation to remove the limitation on the maximum
size of the board of directors requires approval of 85% of the shares entitled to vote.</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"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 40%; font: 12pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Sincerely,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"><I>Robert
    Ripp</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Chairman
    of the Board</FONT></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 0 0 4.5in"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</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"><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 29, 2015</B></P>

<HR SIZE="1" NOSHADE ALIGN="CENTER" STYLE="width: 21%; 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">&nbsp;</P>

<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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">You are cordially invited to attend the Annual
Meeting of Stockholders of LightPath Technologies, Inc., a Delaware corporation. The meeting will be held on Thursday, January
29, 2015 at 11:00 a.m. EST at the Hyatt Regency Orlando International Airport Hotel located at 9300 Airport Boulevard, Orlando,
Florida 32827. The purpose of the Annual Meeting is to vote on the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">1.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">To elect Class III directors to the Company&rsquo;s Board of Directors;
</FONT></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" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">2.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">To approve the adoption of the 2014 Employee Stock Purchase Plan
(the &ldquo;ESPP&rdquo;), as successor to the Company&rsquo;s 2004 Employee Stock Purchase Plan (the &ldquo;2004 ESPP&rdquo;);</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">3.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">To approve an amendment to the Company&rsquo;s Amended and Restated
Omnibus Incentive Plan (the &ldquo;Plan&rdquo;) to increase the shares available for future grants under the Plan by 1,200,000
shares; </FONT></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" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">4.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">To approve an amendment to the Company&rsquo;s Certificate of Incorporation
(the &ldquo;Certificate of Incorporation&rdquo;) to remove the limitation on the maximum size of the Board of Directors;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">5.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">To ratify the selection of Cross, Fernandez &amp; Riley LLP as the
Company&rsquo;s independent public accountant; and</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 0.5in; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">6.</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">To transact such other business as may properly come before the Annual
Meeting or any postponement or adjournment thereof.</FONT></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">Only stockholders of record
at the close of business on December 2, 2014 will be entitled to receive notice of and to vote at the Annual Meeting or any adjournment
thereof.</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 0 0.1pt; text-align: justify; text-indent: 0.5in">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. You may attend the Annual Meeting and vote in person even if you have previously
voted by proxy. 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>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 40%; font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">By Order of the Board of Directors,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"><I>J. James Gaynor</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">President &amp; Chief Executive Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Orlando, Florida</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">December __, 2014</FONT></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: 4in">&nbsp;</P>

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 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: 0; text-align: center"><B>To be held January 29, 2015</B></P>

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

<HR NOSHADE SIZE="1" STYLE="color: Black; width: 40%; margin-top: 3pt; margin-bottom: 3pt">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>This proxy statement, and the enclosed proxy
card, is solicited by the Board of Directors of LightPath Technologies, Inc., a Delaware corporation, for use at the Annual Meeting
of Stockholders (the &ldquo;Annual Meeting&rdquo;) to be held Thursday, January 29, 2015 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 located at 9300 Airport Boulevard, Orlando,
Florida 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 29, 2015.</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, 2014, are all available on our website at 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: 0 0 12pt"><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">A proxy statement
is a document the regulations of the Securities and Exchange Commission (&ldquo;SEC&rdquo;) require us to give you when we ask
you to sign a proxy designating individuals to vote on your behalf. A proxy is your legal designation of another person to vote
the stock you own and are entitled to vote. That other person is called a proxy. If you designate someone as your proxy in a written
document, that document also is called a proxy or a proxy card. We have designated Robert Ripp, Chairman of the Board of Directors,
as proxy for the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">You are receiving
this proxy statement and the enclosed proxy card because our Board of Directors is soliciting your proxy to vote at the Annual
Meeting. This proxy statement provides you with information on the matters to be voted on at the Annual Meeting as well as instructions
on how to vote.</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; text-indent: 0.5in">We intend to mail
this proxy statement and accompanying proxy card on or about December __, 2014 to all stockholders of record entitled to vote at
the Annual Meeting.</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 2, 2014 will be entitled to vote at the Annual Meeting. On this record date, there
were 14,297,166 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 2,
2014 your shares were registered directly in your name with our transfer agent, Computershare Trust Company, N.A., 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 Annual Meeting, we urge you to fill out and return the enclosed proxy card to ensure your vote is counted. Even
if you complete and return your proxy card, you may still vote in person if you are able to attend the Annual 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 2,
2014 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
Annual 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 one Class III director to our Board of Directors; (ii) the approval of
the adoption of the ESPP, as successor to our 2004 ESPP; (iii) the approval of an amendment to the Plan to increase the number
of shares available for future grants under the Plan by 1,200,000 shares; (iv) the approval of an amendment to the Certificate
of Incorporation to remove the limitation on the maximum size of our Board of Directors; and (v) 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. 5 is a &ldquo;discretionary&rdquo; matter. The election of directors under
Item No. 1, the approval of the adoption of the ESPP under Item No. 2, the approval of an amendment to the Plan to increase the
shares available for future grants under the Plan under Item No. 3, and the approval of an amendment to the Certificate of Incorporation
to remove the limitation on the maximize size of the Board of Directors under Item No. 4, are &ldquo;non-discretionary&rdquo; matters.</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 0 12pt; text-align: justify"><B><U>What are my voting choices for
each of the items to be voted on at the Annual Meeting? </U></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 37%; padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-decoration: underline"><font style="font-size: 10pt"><b><u>Item No.</u></b></font></td>
    <TD STYLE="width: 63%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-decoration: underline"><font style="font-size: 10pt"><b><u>Voting Choices and Board Recommendation</u></b></font></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Item 1:</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Election of Director Nominee</b></P></td>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Vote &ldquo;For&rdquo; the nominee listed</font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Vote &ldquo;Withhold&rdquo; to withhold your vote for the nominee listed</font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><b>The Board recommends voting &ldquo;For&rdquo;
        the nominee listed.</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Item 2:</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Approve the adoption of the ESPP</b></P></td>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Vote &ldquo;For&rdquo; the approval of the ESPP</font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Vote &ldquo;Against&rdquo; the approval of the ESPP</font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Abstain from voting on this item</font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><b>The Board recommends voting &ldquo;For&rdquo;
        the approval of the ESPP.</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Item 3:</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Approve the amendment to the Plan to increase
        the number of shares available under the Plan by 1,200,000 shares</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&nbsp;</b></P></td>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Vote &ldquo;For&rdquo; the approval of the amendment to the Plan </font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Vote &ldquo;Against&rdquo; the approval of the amendment to the Plan </font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Abstain from voting on this item</font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><b>The Board recommends voting &ldquo;For&rdquo;
        the approval of the amendment to the Plan</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&nbsp;</b></P></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Item 4:</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Approve the amendment to the Certificate
        of Incorporation to remove the limitation on the maximum size of our Board of Directors</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&nbsp;</b></P></td>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Vote &ldquo;For&rdquo; the approval of the amendment to the Certificate of Incorporation </font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Vote &ldquo;Against&rdquo; the approval of the amendment to the Certificate of Incorporation
        </font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Abstain from voting on this item</font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><b>The Board recommends voting &ldquo;For&rdquo;
        the approval of the amendment to the Certificate of Incorporation.</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Item 5</b></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Ratification of the appointment of Cross,
        Fernandez &amp; Riley LLP as our independent public accountant</b></P></td>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Vote &ldquo;For&rdquo; the ratification of the appointment </font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Vote &ldquo;Against&rdquo; the ratification of the appointment</font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in"><font style="font: 10pt Symbol">&#183;</font><font style="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </font><font style="font-size: 10pt">Abstain from voting on this item</font></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><b>The Board recommends voting &ldquo;For&rdquo;
        the ratification of the appointment of Cross, Fernandez &amp; Riley LLP as our independent public accountant.</b></P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><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>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">You may vote your
shares as follows:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt 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><FONT STYLE="font-size: 10pt">To vote in person, come to the Annual Meeting and we will give you a ballot when you arrive.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt 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><FONT STYLE="font-size: 10pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">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: 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 non-discretionary matters. 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 2, 2014.</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">You should specify
your choice for each matter on the proxy card. If you return a signed and dated proxy card without marking any voting selections,
your shares will be voted:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 21pt; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">FOR the nominee listed under Item No. 1;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 21pt; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">FOR the approval of the adoption of the ESPP, as successor to the
Company&rsquo;s 2004 ESPP under Item No. 2;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 21pt; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">FOR the approval of an amendment to our Plan to increase the number
of shares available for grant under the Plan by 1,200,000 shares under Item No. 3; </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 21pt; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">FOR the approval of an amendment to the Certificate of Incorporation
to remove the limitation on the maximum size of the Board of Directors under Item No. 4; and </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 21pt; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">FOR the ratification of Cross, Fernandez &amp; Riley LLP, as our
independent public accountant under Item No. 5. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 39pt">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>

<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">We 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">What does it mean if I receive more than one proxy card?</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>

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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"><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 Annual Meeting. You may revoke your proxy by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt 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><FONT STYLE="font-size: 10pt">completing, signing and submitting a new proxy card with a later date;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt 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><FONT STYLE="font-size: 10pt">sending written notice of revocation to LightPath&rsquo;s Secretary at 2603 Challenger Tech
Court, Suite 100, Orlando, Florida USA 32826 in time for her to receive it before the Annual Meeting; or</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt 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><FONT STYLE="font-size: 10pt"> voting in person at the Annual Meeting. Simply attending the meeting will not, by itself,
revoke your proxy.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><U>Who will count votes?</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 Annual Meeting. The inspector of elections will also determine the number of shares
outstanding, the voting power of each, the number of shares represented at the Annual Meeting, the existence of a quorum and whether
or not the proxies and ballots are valid and effective.</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 exists if at least a majority of the issued and outstanding shares of Class A common
stock entitled to vote is present at the Annual Meeting (in person or represented by proxy). On the record date, there were 14,297,166
outstanding shares of Class A common stock (including all restricted stock awards at such date) entitled to vote. Thus, 7,148,584
shares must be present at the Annual Meeting (in person or represented 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 card or vote in person at the Annual Meeting. Abstentions and broker
non-votes will be counted towards the quorum requirement. If there is no quorum, a majority of the shares entitled to vote and
present at the Annual Meeting (in person or represented by proxy) may adjourn the meeting to another date.</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">Item No. 1, is determined
by a plurality of the votes cast at the Annual Meeting. A properly executed proxy marked &ldquo;Withhold&rdquo; with respect to
the election of a director will not be voted with respect to the director nominee. A properly executed proxy marked &ldquo;For
&rdquo; will be voted with respect to the director nominee. All properly executed proxies, including those marked &ldquo;Withhold&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, the affirmative vote of a majority of the shares represented at the Annual Meeting, in person or by proxy, that are entitled
to vote is required to approve the adoption of the ESPP.</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; text-indent: 0.5in">With regard to Item
No. 3, the affirmative vote of a majority of the shares represented at the Annual Meeting, in person or by proxy, that are entitled
to vote is required to approve the amendment to the Plan to increase the shares available for future grants under the Plan by 1,200,000
shares.</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. 4, the affirmative vote of at least eight-five percent (85%) of the shares entitled to vote on this item is required to approve
the amendment to the Certificate of Incorporation to remove the limitation on the maximum size of the Board of Directors.</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. 5, the affirmative vote of a majority of the shares represented at the Annual Meeting, in person or by proxy, that are entitled
to vote is required to ratify the appointment Cross, Fernandez &amp; Riley LLP as independent auditor of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><U>How are abstentions and broker
non-votes counted?</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><I>Abstentions:
</I>If a stockholder abstains from voting on an item, the shares are considered present and entitled to vote at the Annual Meeting.
Therefore, abstentions will count toward determining whether or not a quorum is present. Under Delaware law, a proxy marked &ldquo;abstain&rdquo;
is not considered a vote cast. Accordingly, an abstention will have no effect on the election of the director nominees under Item
No. 1 as the nominees are elected by a plurality of the votes cast. Abstentions on proposals that require the affirmative vote
of a majority of the shares represented at the Annual Meeting, in person or by proxy, that are entitled to vote will, in effect,
be a vote against such matter. Abstentions on proposals that require the affirmative vote of at least eighty-five percent (85%)
of the shares represented at the Annual Meeting, in person or by proxy, that are entitled to vote will, in effect, be a vote against
such matter. Accordingly, an abstention will have the same effect as a vote against the items to be voted on under Item Nos. 2-5.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><I>Broker Non-Votes:
</I>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. Broker non-votes are considered present and entitled to vote at the Annual Meeting. Therefore,
broker non-votes will count toward determining whether a quorum is present. For voting purposes, a broker non-vote is not considered
entitled to vote and therefore, will have the effect of reducing the absolute number, but not the percentage, of affirmative votes
needed to pass Item Nos. 1-4. A broker will continue to have discretion to vote uninstructed shares on the ratification of the
appointment of the independent public accountant under Item No. 5.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><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">We will announce
preliminary voting results at the Annual Meeting. We will report the final voting results in a Current Report on Form 8-K filed
with the SEC within four business days following such results becoming final.<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 2016 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 19, 2015,
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>

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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; text-indent: 0.5in">If a stockholder
wishes to present a proposal at the 2016 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 2016 Annual Meeting is November 4, 2015 (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 2016 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 our
Annual Report on 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 our Annual
Report on Form 10-K for the fiscal year ended June 30, 2014, and consolidated financial statements, has been delivered to you with
this proxy statement. We will provide copies of the exhibits filed with our Annual Report on Form 10-K upon written request if
you are a stockholder as of the record date. 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 of our electronically filed exhibits may be reviewed
and printed from the SEC website at <U>http://www.sec.gov</U> under the EDGAR archives section.</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: 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">Our 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="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 34%; border: black 1pt solid; font: 10pt Times New Roman, Times, Serif; 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; font: 10pt Times New Roman, Times, Serif; 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; font: 10pt Times New Roman, Times, Serif; 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; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; font: 10pt Times New Roman, Times, Serif; 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; font: 10pt Times New Roman, Times, Serif; 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; font: 10pt Times New Roman, Times, Serif; 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 III directors&rsquo;
term expires at this Annual Meeting. The Class II directors&rsquo; term expires at the annual meeting of stockholders proposed
to be held in 2016. The Class I directors&rsquo; term expires at the annual meeting of stockholders proposed to be held in 2017.</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. The Board of Directors nominates Louis Leeburg, who is a current member of the Board of Directors, to
serve as a Class III director for a term ending at the third successive annual meeting of stockholders following this Annual Meeting,
or until his 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">If Mr. Leeburg becomes
unable or unwilling to serve as a director before the Annual Meeting, an event which is not presently anticipated, the individual
named as proxy on the proxy card may exercise discretionary authority 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 of the Directors to the number of nominees available.</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
FOR </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>THE ELECTION OF THE CLASS III DIRECTOR NOMINEE</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; text-indent: 0.5in">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.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
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    <TD STYLE="width: 29%; padding-right: 5.4pt; padding-left: 0; font: 10pt Times New Roman, Times, Serif">
        <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">Robert Ripp, 73</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></td>
    <TD STYLE="width: 71%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif">
        <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&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; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">J. James Gaynor, 63</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="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; 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;) and LightPath Optical Instrumentation (Zhenjiang) Co., Ltd. (&ldquo;LPOIZ&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. Mr. Gaynor holds a Bachelor of Mechanical Engineering degree from the Georgia Institute of Technology and has worked in the manufacturing industries since 1976. 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.&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"><B>&nbsp;</B></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>Class II Directors </B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 29%; padding-right: 5.4pt; padding-left: 0; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Sohail Khan, 60</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: 10pt Times New Roman, Times, Serif">
        <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. From May 2013 to July 2014, he served as the Chief Executive Officer of Lilliputian 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. 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 from April 2007 until it 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 2007 to 2012, Mr. Khan served on the
        board of directors for Gainspan Corporation. 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. Mr. Khan also serves on the Company&rsquo;s Finance
        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>
</TABLE>

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

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

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

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<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0; font: 10pt Times New Roman, Times, Serif; width: 29%">
        <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, 70</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; font: 10pt Times New Roman, Times, Serif; width: 71%">
        <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 a Distinguished Professor, Emeritus, of Electrical and Computer Engineering and of Physics at the
        University of New Mexico in Albuquerque, New Mexico, which he joined in 1985. He retired in 2014 and continues his active involvement
        as a University of New Mexico Research Professor. He served as Director of The Center for High Technology Materials from 1986 to
        2013. 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. Brueck serves on the Company&rsquo;s Audit Committee.
        Dr. Brueck&rsquo;s expertise in optics and optics applications, as well as his extensive forty years of research experience in
        optics, lasers, detectors, lithography, nonlinear optics and related fields 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="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 29%; padding-right: 5.4pt; padding-left: 0; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">M. Scott Faris, 49</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: 10pt Times New Roman, Times, Serif">
        <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 Aerosonix, Inc. (formerly 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, since 2004, Mr. Faris served
        as its Chief Executive Officer. Through the Astralis Group, Mr. Faris 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 and served as its Chief Executive Officer until June 2012. 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 is the current chairman of the Metro Orlando EDC.
        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"><font style="background-color: yellow"></font></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>&nbsp;</B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 29%; padding-right: 5.4pt; padding-left: 0; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Louis Leeburg, 60</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: 10pt Times New Roman, Times, Serif; 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 1993, Mr. Leeburg has served as the senior financial advisor of The Fetzer Institute. From 1988 until 1993, he served as 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..&nbsp;&nbsp;Mr. Leeburg also serves on the Company&rsquo;s Audit and Compensation 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>
</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="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 29%; padding-right: 5.4pt; padding-left: 0; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Dorothy Cipolla, 58</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: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">Ms. Cipolla has served as the Company&rsquo;s Chief Financial Officer, Secretary and Treasurer since February 2006. Ms. Cipolla has also served as a director of LPOI since 2006 and LPOIZ since 2013. 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; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 0">&nbsp;</td>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Alan Symmons, 42</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; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Mr. Symmons has served as the Company&rsquo;s
        Vice President of Corporate Engineering since September 2010. Previously, Mr. Symmons served as the Company&rsquo;s Director of
        Engineering from October 2007 to September 2010. Prior to that, Mr. Symmons served as the Opto-Mechanical Manager from October
        2006 to October 2007. 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"><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. The entire Board of Directors met nine times, including telephonic meetings, during fiscal year 2014. All of the directors
attended 67% 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 2014 Annual Meeting of Stockholders on January&nbsp;30, 2014.</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; 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 consists of Dr. Steven Brueck, M. Scott Faris, and Louis Leeburg (Chairman), met four times
during fiscal 2014, which meetings included discussions with management and with the Company&rsquo;s independent auditors to discuss
the interim and annual financial statements and the annual report of the Company, and the effectiveness of 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>. 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
has determined that the Audit Committee is 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 (&ldquo;NCM&rdquo;). The
Board of Directors has also determined that at least one member of the Audit Committee, Mr. Leeburg, is an &ldquo;audit committee
financial expert&rdquo; as defined by SEC rules and qualifies as independent in accordance with the NCM 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 (Chairman) and Louis Leeburg, met four
times during fiscal year 2014. 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 Plan, 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 2014.</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 year 2014, the Board of Directors determined that the current cash and stock-based incentive compensation
awarded to directors was still appropriate.</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">&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 Sohail Khan (Chairman) Robert Ripp and M. Scott Faris, did not meet during fiscal
year 2014. 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 year 2014, 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
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">&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 NCM and the SEC. Due to the status of Mr. Gaynor as the Company&rsquo;s
Chief Executive Officer, he is not an independent director 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 2014 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 7 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>

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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: 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: 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 NCM 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 NCM listing
standards. Based on these standards, the Board determined that each of the following non-employee directors serving during fiscal
year 2014 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 CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 30%; text-align: justify"><FONT STYLE="font-size: 10pt">Robert Ripp</FONT></TD>
    <TD STYLE="width: 60%; text-align: justify"><FONT STYLE="font-size: 10pt">Steven Brueck</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 4.5pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-top: 4.5pt; text-align: justify"><FONT STYLE="font-size: 10pt">Sohail Khan</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; text-align: justify"><FONT STYLE="font-size: 10pt">M. Scott Faris</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 4.5pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-top: 4.5pt; text-align: justify"><FONT STYLE="font-size: 10pt">Louis Leeburg</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; text-align: justify">&nbsp;</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: 4.5pt 0 0; text-align: justify; 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>

<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 has not adopted
a written policy for review of related party transactions. When the Company is contemplating entering into any transaction in which
any related party 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 of the Board
of Directors is documented in its minutes. A related party would include any executive officer, director, nominee or any family
member of foregoing, or any beneficial owner of more than five percent owner of our common stock or any family member of the foregoing.</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 entered into a Securities
Purchase Agreement on April 15, 2014 with Pudong Science &amp; Technology (Cayman) Co., Ltd. (&ldquo;Pudong&rdquo;), with respect
to a private placement of our Class A common stock. The Securities Purchase Agreement was subsequently amended (as amended, the
&ldquo;SPA&rdquo;) and assigned by Pudong to an affiliate, Pudong Science &amp; Technology Investment (Cayman) Co., Ltd. (&ldquo;Pudong
Investment&rdquo;). At the time we entered into the SPA, Pudong was a stockholder beneficially owning greater than 5% of our Class
A common stock. Based on Pudong Investments&rsquo; current beneficial ownership percentage and assuming the final per share purchase
price equals the initial per share purchase price, we estimate that the value of the interest to be acquired by Pudong Investment
could equal $1,505,790; however, this amount may increase or decrease based upon various factors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></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"><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 of Directors being responsible for
setting the strategic direction of the Company, as well as overseeing and advising the management of the Company. The Board of
Directors believes that the current independent leadership of the Board of Directors 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">&nbsp;</P>

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

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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>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, 2014, 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. 61, 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 NCM 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, 2014, be included in the Company's Annual Report on Form 10-K for such fiscal year.</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-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="width: 40%; padding-right: 0; padding-left: 0"><FONT STYLE="font-size: 10pt"><B><I>Audit Committee:</I></B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><FONT STYLE="font-size: 10pt">Louis Leeburg, Chairman</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><FONT STYLE="font-size: 10pt">Dr. Steven Brueck</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0"><FONT STYLE="font-size: 10pt">M. Scott Faris</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></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; 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: 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 2, 2014, 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. On December 2,
2014, there were 14,297,166 shares of Class A common stock issued and outstanding.</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 2, 2014, 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>

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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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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"></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>&nbsp;</u></td>
    <TD COLSPAN="5" STYLE="font-weight: bold; border-top: Black 0.5pt solid; border-right: Black 1pt solid; border-bottom: Black 0.5pt solid; text-align: center">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>&nbsp;</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; background-color: rgb(204,238,255)">
    <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">227,660</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">611,107</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;36,100</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">874,867</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">6.0%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">227,660</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">292,113</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">2.0%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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">228,860</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">234,960</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">1.6%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">227,660</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">46,077</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">279,837</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">1.9%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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">126,960</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">126,960</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">0.9%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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;224,000</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">270,828</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">1.9%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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;&nbsp;&nbsp;85,375</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">85,375</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: center; border-left-color: Black; border-left-width: 0.5pt">*</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">1,587</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;48,375</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">49,962</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: center; border-left-color: Black; border-left-width: 0.5pt">*</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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; background-color: White">
    <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; background-color: rgb(204,238,255)">
    <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; background-color: White">
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">1,038,800</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">763,269</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">683</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">412,150</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">2,214,902</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">14.1%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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; background-color: White">
    <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">2,700,330</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">2,700,330</td>
    <td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">(11)</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">18.9%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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 Investment (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">(12)</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">9.4%</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">&nbsp;</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">*Less than 1%</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">Notes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(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 Investment (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">(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, and, 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; 154,186, Mr. Leeburg &ndash; 154,186, Mr. Khan &ndash; 155,386, Dr. Brueck &ndash; 154,186 and Mr. Faris &ndash;
53,486.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0">(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">(4) Includes 36,100 shares of Class A common
stock with respect to which Mr. Ripp has the right to acquire. Mr. Ripp holds 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">(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">(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">&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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(7) Includes 6,100 shares of Class A common
stock with respect to which Dr. Brueck has the right to acquire. Dr. Brueck 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">(8) Includes 224,228 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 224,000 shares
of Class A common stock. This amount does not include 124,000 shares of Class A common stock underlying options which remain unvested.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(9) Includes 85,375 shares of Class A common
stock with respect to which Ms. Cipolla has the right to acquire. Specifically, Ms. Cipolla holds options which are currently exercisable
for an aggregate of 85,375 shares of Class A common stock. This amount does not include 37,625 shares of Class A common stock underlying
options which remain unvested.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(10) Includes 48,375 shares of Class A common
stock with respect to which Mr. Symmons has the right to acquire. Mr. Symmons holds options which are currently exercisable for
an aggregate of 48,375 shares of Class A common stock. This amount does not include 37,625 shares of Class A common stock underlying
options which remain unvested.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0">(11) Excludes 73,233 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 73,233 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 18.9% 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">(12) Pudong Science and Technology Investment
(Cayman) Co., Ltd. is wholly owned by Shanghai Pudong Science and Technology Investment Co., Ltd., and for purposes hereof is also
deemed as a beneficial owner of the shares.</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">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"><I>&nbsp;</I></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; text-indent: 0.5in">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 Company&rsquo;s
most recent fiscal year. 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; text-indent: 24.5pt">&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: 0; text-align: center">&nbsp;</P>

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

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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: 0.5in">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: 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 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: 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">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. The most recent &ldquo;say-on-pay&rdquo; advisory
vote occurred at the 2014 Annual Meeting of Stockholders, at which our stockholders approved, on an advisory basis, the compensation
of our executive officers.</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 STYLE="margin-top: 0in; list-style-type: disc">

<LI STYLE="text-align: justify; margin: 0; font: 10pt Times New Roman, Times, Serif">the annual reviews made by the Chief Executive Officer with respect
to the performance of each of the Company&rsquo;s other executive officers;</LI>

</UL>

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

<UL STYLE="margin-top: 0in; list-style-type: disc">

<LI STYLE="text-align: justify; margin: 0; font: 10pt Times New Roman, Times, Serif">the annual review conducted by the Compensation Committee with respect
to the performance of the Chief Executive Officer;</LI>

</UL>

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

<UL STYLE="margin-top: 0in; list-style-type: disc">

<LI STYLE="text-align: justify; margin: 0; font: 10pt Times New Roman, Times, Serif">compensation paid to executive officers of other manufacturing companies
similar in size and scope as the Company and its competitors; and</LI>

</UL>

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

<UL STYLE="margin-top: 0in; list-style-type: disc">

<LI STYLE="text-align: justify; margin: 0; font: 10pt Times New Roman, Times, Serif">the annual performance of the Company with respect to our short-term
and long-term strategic plan.</LI>

</UL>

<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: 0.5in">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>

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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: 0.5in">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.</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>2014 Executive Compensation
Components.</I> </B>For the year ended June&nbsp;30, 2014, 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="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 5%; font: 10pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</td>
    <TD STYLE="vertical-align: top; width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">&bull;</font></td>
    <TD STYLE="vertical-align: top; width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</td>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">base salary; and</font></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="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 5%; font: 10pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</td>
    <TD STYLE="vertical-align: top; width: 2%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">&bull;</font></td>
    <TD STYLE="vertical-align: top; width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: justify">&nbsp;</td>
    <TD STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">bonus and long-term equity incentive awards. </font></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: 7.65pt 0 0; text-align: justify; text-indent: 0.5in"><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. Our named executive
officers received merit based pay increases to base salaries in fiscal year 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 0.5in"><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: 0.5in"><U>Bonus Program</U>.
The fiscal 2014 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: 0.5in">For fiscal 2014,
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 year 2014, the &ldquo;level
one&rdquo; participant was Mr. Gaynor and the &ldquo;level two&rdquo; participants were Ms. Cipolla and Mr. Symmons. For fiscal
year 2014, there was no performance-based incentive compensation for the executive officers as a result of our failure to achieve
the revenue performance goal.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 0.5in"><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 NCM.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 0.5in">For fiscal year
2014, 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: 7.65pt 0 0; text-align: justify; text-indent: 0.5in"><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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-align: justify; text-indent: 0.5in"><B><I>Executive
Compensation and Risk.</I></B> 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 7.65pt 0 0; text-indent: 24.5pt">&nbsp;</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; text-indent: 0.5in">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 year 2014, 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 year 2014.</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"></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>

<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 Compensation&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 STYLE="background-color: rgb(204,238,255)">
    <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">2014</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">279,038</td>
    <td style="vertical-align: top; text-align: right; border-left-color: black; border-left-width: 0.5pt">38,430</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">317,468</td></tr>
<TR STYLE="background-color: White">
    <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">2013</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">214,616</td>
    <td style="vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">37,385</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">252,001</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <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">2014</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">190,769</td>
    <td style="vertical-align: top; border-left: black 0.5pt solid; text-align: right">11,153</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">201,922</td></tr>
<TR STYLE="background-color: White">
    <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">2013</td>
    <td style="vertical-align: top; border-bottom: Black 0.5pt solid; border-left: black 0.5pt solid; text-align: right">157,385</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">10,081</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">167,466</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <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">2014</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">174,327</td>
    <td style="vertical-align: top; border-left: black 0.5pt solid; text-align: right">10,481</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">184,808</td></tr>
<TR STYLE="background-color: White">
    <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">2013</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">133,538</td>
    <td style="vertical-align: top; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">9,409</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">142,947</td></tr>
</table>


<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">&nbsp;</P>

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

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

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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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify">** For valuation assumptions on restricted
stock units and stock option awards refer to note 9 to the Consolidated Financial Statements of the Annual Report on Form 10-K
for fiscal year 2014. The disclosed amounts reflect the dollar amount recognized for financial statement reporting purposes for
the fiscal year ended June 30, 2014 in accordance with FASB ASC Topic 718 and thus may include amounts from awards granted in and
prior to fiscal year 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in">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 2014 and 2013. The forfeiture rate for restricted stock
units was 0% for 2014 and 2013. 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 used the Black-Scholes-Merton pricing
model. The amounts reflect the dollar amount recognized for financial statement reporting purposes for fiscal year ended June
30, 2014 in accordance with ASC Topic 718 and thus may include amounts from awards granted in and prior to fiscal year 2014. The
assumptions used were:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"></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="width: 51%">&nbsp;</td>
    <td style="width: 27%">&nbsp;</td>
    <td style="width: 22%">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td style="font-weight: bold; text-align: center">Year ended</td>
    <td style="font-weight: bold; text-align: center">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, 2014</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">June 30, 2013</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Expected volatility</td>
    <td style="text-align: center">105% - 123%</td>
    <td style="text-align: center">110% - 120%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <td>Weighted average expected volatility</td>
    <td style="text-align: center">105% - 123%</td>
    <td style="text-align: center">110% - 120%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Dividend yields</td>
    <td style="text-align: center">0%</td>
    <td style="text-align: center">0%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <td>Risk-free interest rate</td>
    <td style="text-align: center">1.60% - 2.81%</td>
    <td style="text-align: center">0.67% - 1.72%</td></tr>
<TR STYLE="text-align: center; background-color: rgb(204,238,255); vertical-align: bottom">
    <TD STYLE="text-align: left; vertical-align: bottom">Expected term, in years</td>
    <TD>3 - 7</td>
    <TD>3 - 7</td></tr>
</table>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify"></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; text-indent: 0.5in">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 named executive officers. Each named 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; text-align: justify; text-indent: 0.5in">The goals set for
the fiscal year 2014 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 year 2013 and 2014.</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"><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; text-indent: 0.5in">Mr. Gaynor earned total
cash compensation for his services to the Company in fiscal year 2014 in the amount of $279,038. This represents his annual base
salary for fiscal year 2014. The base salary paid to Mr. Gaynor for fiscal year 2014 constituted approximately 88% 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"><I>&nbsp;</I></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; text-indent: 0.5in">On February 4, 2010, Mr.
Gaynor was granted an option to purchase 50,000 shares, all of which are now vested. Based on the vesting schedule of the option,
we recognized $17,762 of compensation expense for fiscal year 2013 and $10,363 in fiscal year 2014.</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">On November 3, 2010, Mr.
Gaynor was granted an option to purchase 25,000 shares, all of which are now vested. Based on the vesting schedule of the option,
we recognized $8,388 of compensation expense for fiscal year 2013 and $8,388 for fiscal year 2014. We expect to recognize compensation
expense of approximately $2,797 in fiscal year 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; text-indent: 0.5in">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 $6,992 of compensation expense
for fiscal year 2013 and $6,992 for fiscal year 2014. We expect to recognize compensation expense of approximately $6,992 in fiscal
year 2015 and $1,747 in fiscal year 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; text-indent: 0.5in">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 year 2013 and $4,752 in fiscal year 2014. We expect to recognize compensation expense of approximately $4,752 in each
of fiscal year 2015 and fiscal year 2016 and $1,188 in fiscal year 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; text-indent: 0.5in">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 year 2013 and $1,355 in fiscal year 2014. We expect to recognize compensation expense of approximately $1,355 in each
of fiscal year 2015 and fiscal year 2016 and $677 in fiscal year 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; text-indent: 0.5in">On October 31, 2013, 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 options, we recognized $6,580 of compensation
expense for fiscal year 2014. We expect to recognize compensation expense of approximately $8,772 in each of fiscal year 2015,
fiscal year 2016 and fiscal year 2017 and $2,192 in fiscal year 2018 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>

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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>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; text-indent: 0.5in">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>

<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; text-indent: 0.5in">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; text-indent: 0.5in">Ms.&nbsp;Cipolla
earned total cash compensation for her services to the Company in fiscal 2014 in the amount of $190,769. This represents her annual
base salary for fiscal year 2014. The base salary paid to Ms.&nbsp;Cipolla for fiscal year 2014 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; text-indent: 0.5in">On February&nbsp;4,
2010, Ms.&nbsp;Cipolla was granted an option to purchase 10,000 shares, of which all are now vested. Based on the vesting schedule
of the option, the Company recognized compensation expense of $3,553 in fiscal year 2013 and approximately $2,072 in fiscal year
2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify; text-indent: 0.5in">On November&nbsp;3,
2010, Ms.&nbsp;Cipolla was granted an option to purchase 9,000 shares, of which all are now vested. Based on the vesting schedule
of the option, the Company recognized compensation expense of $3,020 in both fiscal year 2013 and fiscal year 2014 and expects
to recognize compensation expense of approximately $1,007 in fiscal year 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; text-indent: 0.5in">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 $2,185 in both fiscal year 2013 and fiscal year 2014 and expects to recognize compensation expense of approximately
$2,185 in fiscal year 2015 and $545 in fiscal year 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; text-indent: 0.5in">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 year 2013 and $1,485 in fiscal year 2014. We expect to recognize compensation expense of approximately $1,485 in each
of fiscal year 2015 and fiscal year 2016 and $371 in fiscal year 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; 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">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 year 2013 and $417 in fiscal year 2014. We expect to recognize compensation expense of approximately $417 in each of
fiscal year 2015 and fiscal year 2016 and $208 in fiscal year 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; text-indent: 0.5in">On October 31, 2013, Ms.
Cipolla was granted an option to purchase 15,000 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 $1,974 of compensation expense
for fiscal year 2014. We expect to recognize compensation expense of approximately $2,632 in each of fiscal year 2015, fiscal year
2016 and fiscal year 2017 and $658 in fiscal year 2018 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; text-indent: 0.5in">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"><I>Change of Control Agreement</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify; text-indent: 0.5in">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; text-indent: 0.5in">Mr.&nbsp;Symmons
earned total cash compensation for his services to the Company in fiscal year 2014 in the amount of $174,327. This represents his
annual base salary for fiscal year 2014. The base salary paid to Mr.&nbsp;Symmons for fiscal year 2014 constituted approximately
94% 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; text-indent: 0.5in">On February&nbsp;4,
2010, Mr.&nbsp;Symmons 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 $3,553 in fiscal year 2013 and approximately $2,072 in fiscal year
2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify; text-indent: 0.5in">On November&nbsp;3,
2010, Mr.&nbsp;Symmons was granted an option to purchase 7,000 shares, all of which are now vested. Based on the vesting schedule
of the option, the Company recognized compensation expense of $2,349 in both fiscal year 2013 and fiscal year 2014 and expects
to recognize compensation expense of approximately $784 in fiscal year 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"></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; text-indent: 0.5in">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 $2,185 in both fiscal year 2013 and fiscal year 2014 and expects to recognize compensation expense of approximately
$2,185 in fiscal year 2015 and $545 in fiscal year 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; text-indent: 0.5in">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 year 2013 and $1,485 in fiscal year 2014. We expect to recognize compensation expense of approximately $1,485 in each
of fiscal year 2015 and fiscal year 2016 and $371 in fiscal year 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; text-indent: 0.5in">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 year 2013 and $417 for fiscal year 2014. We expect to recognize compensation expense of approximately $417 in each of
fiscal year 2015 and fiscal year 2016 and $208 in fiscal year 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; text-indent: 0.5in">On October 31, 2013, Mr.
Symmons was granted an option to purchase 15,000 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 $1,974 of compensation expense
for fiscal year 2014. We expect to recognize compensation expense of approximately $2,632 in each of fiscal year 2015, fiscal year
2016 and fiscal year 2017 and $658 in fiscal year 2018 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; text-indent: 0.5in">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; text-indent: 0.5in">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; text-indent: 0.5in">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.</P>

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

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

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 50%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="text-align: center; vertical-align: bottom">
    <TD STYLE="font-weight: bold; width: 47%">&nbsp;</td>
    <TD STYLE="font-weight: bold; width: 53%">Amount of Payment Upon</td></tr>
<TR STYLE="text-align: center; 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;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;560,000</td></tr>
<tr>
    <td style="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Dorothy Cipolla (3)</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&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;47,500</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;43,750</td></tr>
</table>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-indent: 0.5in">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" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 24.5pt; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">A change-of-control is defined as any of the following transactions occurring: </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 67pt; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">The dissolution or liquidation of the Company,</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 67pt; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">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,</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 67pt; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">A merger or a consolidation in which the Company is not the surviving
entity,</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 67pt; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">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</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 9pt; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 67pt; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 18pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">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.</FONT></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: 9pt 0 0 40.5pt; text-align: justify">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>

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

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<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: bottom">
    <td style="width: 26%">&nbsp;</td>
    <td style="width: 17%">&nbsp;</td>
    <td style="width: 15%">&nbsp;</td>
    <td style="width: 11%">&nbsp;</td>
    <td style="width: 18%">&nbsp;</td>
    <td style="width: 13%">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: Black 0.5pt solid">&nbsp;</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Option Awards</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">&nbsp;</td>
    <td style="font-weight: bold; border-bottom: 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-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-right: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt; border-left-color: Black; border-left-width: 0.5pt">(b)</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt; border-left-color: Black; border-left-width: 0.5pt">(c)</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">(e)</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt; border-left-color: Black; border-left-width: 0.5pt">&nbsp;</td>
    <td style="font-weight: bold; border-right: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">(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; border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="font-weight: bold; border-left: Black 0.5pt solid; text-align: center; border-bottom: Black 1pt solid">Exercisable</td>
    <TD STYLE="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 1pt 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; border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 1pt 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 1pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">&nbsp;</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <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 STYLE="background-color: White">
    <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;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.80</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">10/27/2016</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&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 STYLE="background-color: White">
    <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;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">1/31/2018</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&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 STYLE="background-color: White">
    <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-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;18,750</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">6,250</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.69</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">11/3/2020</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; font-weight: bold; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">20,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&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 STYLE="background-color: White">
    <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-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">30,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.98</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">10/25/2022</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; font-weight: bold; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,250</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">9,750</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&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 STYLE="background-color: White">
    <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-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">50,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.41</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">10/31/2023</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">Dorothy Cipolla</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&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 STYLE="background-color: White">
    <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;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.80</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">10/27/2016</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&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 STYLE="background-color: White">
    <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;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.66</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">2/4/2020</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; border-left-color: Black; border-left-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,750</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">2,250</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&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 STYLE="background-color: White">
    <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;6,250</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">6,250</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">10/27/2021</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,125</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">9,375</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 STYLE="background-color: White">
    <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;1,000</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">3,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.87</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">1/31/2023</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">15,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.41</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">10/31/2023</td></tr>
<TR STYLE="background-color: White">
    <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;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.24</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">4 year cliff</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">10/18/2016</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,000</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&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 STYLE="background-color: White">
    <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;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.66</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">25%/yr for 4 yrs</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">2/4/2020</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,250</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">1,750</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&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 STYLE="background-color: White">
    <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;6,250</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">6,250</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">10/27/2021</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,125</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">9,375</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 STYLE="background-color: White">
    <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;1,000</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">3,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.87</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;25%/yr for 4 yrs&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt">1/31/2023</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">15,000</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.41</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">10/31/2023</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">&nbsp;</P>

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


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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: 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; text-indent: 0.5in">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"><B>Cash Compensation Paid to Board Members </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify; text-indent: 0.5in">During fiscal year
2014, directors received a monthly retainer of $2,500. 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border: Black 1pt solid">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom; border-top: Black 1pt solid; border-right: Black 1pt solid">Amount</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt; border-left: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid">Chairman of the Board</TD><TD STYLE="width: 10%; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="width: 18%; border-bottom: Black 1pt solid; text-align: right">15,000</TD><TD STYLE="width: 1%; padding-bottom: 1pt; text-align: left; border-right: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">Audit Committee Chairman</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-right: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">Compensation Committee Chairman</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-right: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">Finance Committee Chairman</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid; border-right: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify; text-indent: 0.5in">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; text-indent: 0.5in">&nbsp;</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; margin: 9pt 0 0; text-indent: 0.5in">The table below summarizes the compensation
paid by the Company to non-employee directors for the fiscal year ended June&nbsp;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"></P>

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

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 75%; 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: 39%">&nbsp;</td>
    <TD STYLE="border-top: Black 0.5pt solid; border-left: Black 0.5pt solid; width: 24%">&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 1pt solid; width: 19%">&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-right: Black 0.5pt solid; border-left: Black 1pt 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 1pt solid; text-align: center">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 1pt solid; text-align: center">($)</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid">&nbsp;</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">($)(2)</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center">($)(3)</td>
    <TD STYLE="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 1pt solid; text-align: center">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">(a)</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">(b)</td>
    <td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">(c)</td>
    <TD STYLE="font-weight: bold; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 1pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">(h)</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Robert Ripp</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88,500</td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41,976</td>
    <TD STYLE="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 1pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;130,476</td></tr>
<TR STYLE="background-color: White">
    <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;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,500</td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41,976</td>
    <TD STYLE="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 1pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70,476</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Dr. Steven Brueck</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,500</td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41,976</td>
    <TD STYLE="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 1pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70,476</td></tr>
<TR STYLE="background-color: White">
    <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;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36,500</td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41,976</td>
    <TD STYLE="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 1pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78,476</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="padding-left: 12px; vertical-align: top; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">M. Scott Faris</td>
    <td style="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,500</td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,002</td>
    <TD STYLE="vertical-align: bottom; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 1pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57,502</td></tr>
</table>


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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 3%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">(1)</font></td>
    <TD STYLE="width: 97%; font: 10pt Times New Roman, Times, Serif">
        <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 year 2014, 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 24.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P></td></tr>
</TABLE>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 3%"><font style="font-size: 10pt">(2)</font></td>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 97%"><font style="font-size: 10pt">Total fees earned for fiscal 2014, includes all fees earned, including earned but unpaid fees. The amounts of unpaid fees for each director are as follows: Mr. Ripp - $22,500, Mr. Leeburg - $9,500, Dr. Brueck - $7,500, Mr. Khan - $7,500 and Mr. Faris - $7,500. </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="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 3%; font: 10pt Times New Roman, Times, Serif; text-align: justify"><font style="font-size: 10pt">(3)</font></td>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 97%">
        <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, 2014 in accordance with ASC Topic 718 and thus
may include amounts from awards granted in and prior to 2014.&nbsp;</P></td></tr>
</table>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B>&nbsp;</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: 9pt 0 0; text-align: justify; text-indent: 0.5in">All directors are
eligible to receive equity incentives under the Plan, including stock options, restricted stock awards or units. In fiscal year
2014, the following directors received grants under the Plan:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify; text-indent: 24pt">&nbsp;<B>&nbsp;</B></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 75%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
    <TD>&nbsp;</td>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&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; width: 37%">Name of Director</td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 27%"><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; width: 18%">Grant Date</td>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 18%"><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; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;Dr. Steven Brueck</td>
    <TD STYLE="text-align: right">35,460</td>
    <TD STYLE="text-align: right">10/31/2013</td>
    <TD STYLE="text-align: right">$1.41</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;Sohail Khan</td>
    <TD STYLE="text-align: right">35,460</td>
    <TD STYLE="text-align: right">10/31/2013</td>
    <TD STYLE="text-align: right">$1.41</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;Louis Leeburg</td>
    <TD STYLE="text-align: right">35,460</td>
    <TD STYLE="text-align: right">10/31/2013</td>
    <TD STYLE="text-align: right">$1.41</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;Robert Ripp</td>
    <TD STYLE="text-align: right">35,460</td>
    <TD STYLE="text-align: right">10/31/2013</td>
    <TD STYLE="text-align: right">$1.41</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;M. Scott Faris</td>
    <TD STYLE="text-align: right">35,460</td>
    <TD STYLE="text-align: right">10/31/2013</td>
    <TD STYLE="text-align: right">$1.41</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</td>
    <TD STYLE="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right">177,300</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
</table>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0"></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; text-indent: 0.5in">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; text-indent: 0.5in">Mr.&nbsp;Ripp earned
total cash compensation for his services to the Company in fiscal year 2014 in the amount of $88,500 of which $22,500 was due in
accounts payable at year end. This represents his retainer and chairman fees for fiscal year 2014. The base fees to Mr.&nbsp;Ripp
for fiscal year 2014 constituted approximately 68% 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"></P>

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<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; text-indent: 0.5in">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 $5,807 in fiscal year 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; text-indent: 0.5in">On November&nbsp;3,
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 $13,450 in fiscal year 2013 and $4,487 in fiscal year 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; text-indent: 0.5in">On October&nbsp;27,
2011, Mr.&nbsp;Ripp was granted a restricted stock unit for 29,000 shares, all of which are now vested. Based on the vesting schedule
of the stock, the Company recognized compensation expense of $13,437 in both fiscal year 2013 and fiscal year 2014 and expects
to recognize $3,358 in fiscal year 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; text-indent: 0.5in">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 year 2013 and $11,533 in fiscal year 2014 and expects to recognize $11,533 in fiscal year 2015 and
$5,766 in fiscal year 2016 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; text-indent: 0.5in">On October&nbsp;31,
2013, Mr.&nbsp;Ripp was granted a restricted stock unit for 35,460 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 $12,519 in fiscal year 2014 and expects to recognize $16,296 in fiscal year 2015 and fiscal year 2016 and $4,173 in
fiscal year 2017 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>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; text-indent: 0.5in">Mr.&nbsp;Khan earned
total cash compensation for his services to the Company in fiscal year 2014 in the amount of $28,500 of which $7,500 was due in
accounts payable at year end. This represents his retainer for fiscal year 2014. The base fees to Mr.&nbsp;Khan for fiscal year
2014 constituted approximately 40% 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; text-indent: 0.5in">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 $5,807 in fiscal year 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; text-indent: 0.5in">On November&nbsp;3,
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 $13,450 in fiscal year 2013 and $4,487 in fiscal year 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; text-indent: 0.5in">&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; text-indent: 0.5in">On October&nbsp;27,
2011, Mr.&nbsp;Khan was granted a restricted stock unit for 29,000 shares, all of which are now vested. Based on the vesting schedule
of the stock, the Company recognized compensation expense of $13,437 in both fiscal year 2013 and fiscal year 2014 and expects
to recognize $3,358 in fiscal year 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; text-indent: 0.5in">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 year 2013 and $11,533 in fiscal year 2014 and expects to recognize $11,533 in fiscal year 2015 and
$5,766 in fiscal year 2016 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; text-indent: 0.5in">On October&nbsp;31,
2013, Mr.&nbsp;Khan was granted a restricted stock unit for 35,460 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 $12,519 in fiscal year 2014 and expects to recognize $16,292 in fiscal year 2015 and fiscal year 2016 and $4,173 in
fiscal year 2017 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>Dr. 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; text-indent: 0.5in">Dr.&nbsp;Brueck earned
total cash compensation for his services to the Company in fiscal year 2014 in the amount of $28,500 of which $7,500 due in accounts
payable at year end. This represents his retainer for fiscal year 2014. The base fees to Dr.&nbsp;Brueck for fiscal year 2014 constituted
approximately 40% 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>

<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; text-indent: 0.5in">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 $5,807 in fiscal year 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; text-indent: 0.5in">On November&nbsp;3,
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 $13,450 in fiscal year 2013 and $4,487 in fiscal year 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; text-indent: 0.5in">On October&nbsp;27,
2011, Dr.&nbsp;Brueck was granted a restricted stock unit for 29,000 shares, all of which are now vested. Based on the vesting
schedule of the stock, the Company recognized compensation expense of $13,437 in both fiscal year 2013 and fiscal year 2014 and
expects to recognize $3,358 in fiscal year 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; text-indent: 0.5in">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 year 2013 and $11,533 in fiscal year 2014 and expects to recognize $11,533 in fiscal year 2015 and
$5,766 in fiscal year 2016 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; text-indent: 0.5in">&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; text-indent: 0.5in">On October&nbsp;31,
2013, Dr.&nbsp;Brueck was granted a restricted stock unit for 35,460 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 $12,519 in fiscal year 2014 and expects to recognize $16,692 in fiscal year 2015 and fiscal year 2016 and $4,173 in
fiscal year 2017 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; text-indent: 0.5in">Mr.&nbsp;Leeburg
earned total cash compensation for his services to the Company in fiscal year 2014 in the amount of $36,500 of which $9,500 was
due in accounts payable at year end. This represents his retainer and audit committee chair fee for fiscal year 2014. The base
fees to Mr.&nbsp;Leeburg for fiscal year 2014 constituted approximately 47% 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; text-indent: 0.5in">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 $5,807 in fiscal year 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; text-indent: 0.5in">On November&nbsp;3,
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 $13,450 in fiscal year 2013 and $4,487 in fiscal year 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; text-indent: 0.5in">On October&nbsp;27,
2011, Mr.&nbsp;Leeburg was granted a restricted stock unit for 29,000 shares, all of which are now vested. Based on the vesting
schedule of the stock, the Company recognized compensation expense of $13,437 in both fiscal year 2013 and fiscal year 2014 and
expects to recognize $3,358 in fiscal year 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; text-indent: 0.5in">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 year 2013 and $11,533 in fiscal year 2014 and expects to recognize $11,533 in fiscal year 2015 and
$5,766 in fiscal year 2016 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; text-indent: 0.5in">On October&nbsp;31,
2013, Mr.&nbsp;Leeburg was granted a restricted stock unit for 35,460 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 $12,519 in fiscal year 2014 and expects to recognize $16,692 in fiscal year 2015 and fiscal year 2016 and $4,173 in
fiscal year 2017 in accordance with ASC Topic 718, <I>Stock Compensation</I>.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify; text-indent: 0.5in">&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: 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; text-indent: 0.5in">Mr.&nbsp;Faris earned
total cash compensation for his services to the Company in fiscal year 2014 in the amount of $28,500 of which $7,500 was due in
accounts payable at year end. This represents his retainer for fiscal year 2014. The base fees to Mr.&nbsp;Faris for fiscal year
2014 constituted approximately 50% 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: 9pt 0 0; text-align: justify; text-indent: 0.5in"><I>Long-Term Equity
Incentive Awards</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify; text-indent: 0.5in">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 $4,950 in both fiscal year 2013 and in fiscal year 2014 and expects to recognize $2,061 in fiscal year 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; text-indent: 0.5in">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 year 2013 and $11,533 in fiscal year 2014 and expects to recognize $11,533 in fiscal year 2015 and
$5,766 in fiscal year 2016 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; text-indent: 0.5in">On October&nbsp;31,
2013, Mr.&nbsp;Faris was granted a restricted stock unit for 35,460 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 $12,519 in fiscal year 2014 and expects to recognize $16,692 in fiscal year 2015 and fiscal year 2016 and $4,173 in
fiscal year 2017 in accordance with ASC Topic 718, <I>Stock Compensation</I>.</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>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; text-indent: 0.5in">The following table
sets forth as of June&nbsp;30, 2014, the end of the Company&rsquo;s most recent fiscal year, information regarding (i)&nbsp;all
compensation plans previously approved by our stockholders and (ii)&nbsp;all compensation plans not previously approved by our
stockholders:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify; 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; background-color: rgb(204,238,255)">
    <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: right">$0.98</td>
    <td style="text-align: right">&nbsp;</td>
    <td style="text-align: right">566,103</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <td>Equity compensation plans not approved by security holders&nbsp;</td>
    <td style="text-align: right">&nbsp;</td>
    <td style="text-align: right">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="text-align: center">&nbsp;</td>
    <td style="text-align: right">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td style="text-align: center">&nbsp;</td>
    <td style="text-align: right">&mdash;&nbsp;&nbsp;&nbsp;&nbsp;</td></tr>
</table>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 9pt 0 0; text-align: justify; text-indent: 0.5in"><BR CLEAR="ALL"></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>ITEM NO. 2 </U></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"><B>APPROVAL OF THE ADOPTION OF THE ESPP, AS
SUCCESSOR TO THE 2004 ESPP </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">You are being asked to
approve the ESPP, as successor to the Company&rsquo;s 2004 ESPP. The Board of Directors believes that the ESPP will benefit the
Company and its stockholders by providing eligible employees of the Company and its subsidiaries with a convenient means of acquiring
an equity interest in the Company through payroll deductions, to enhance such employees&rsquo; sense of participation in the affairs
of the Company and its subsidiaries, and to provide an incentive for continued employment. The Board of Directors has adopted and
approved the ESPP, subject to stockholder approval.</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"><B>Summary of the ESPP</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">&nbsp;<B><I>General</I></B><I>.</I>
The purpose of the ESPP is to provide eligible employees of the Company and its designated subsidiaries with the opportunity to
purchase shares of the Company&rsquo;s common stock through accumulated payroll deductions. The ESPP is intended to qualify as
an &ldquo;employee stock purchase plan&rdquo; under Section 423 of the Internal Revenue Code and will be administered in a manner
consistent with the requirements of that section of the Internal Revenue Code.</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>Authorized</I></B><I>
<B>Shares</B></I>. A total of 400,000 shares of common stock are authorized for issuance under the ESPP, subject to appropriate
adjustments (including to each outstanding purchase right) in the event of any stock split, stock dividend, or any other increase
or decrease in the number of issued and outstanding shares of common stock effected without receipt of any consideration by 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: 0.5in"><B><I>Administration</I></B>.
The ESPP will be administered by the Compensation Committee of the Board of Directors. The ESPP confers on the Compensation Committee
express powers and authority, including the authority to designate subsidiaries to participate in the ESPP and to establish the
price for the shares of common stock offered under the ESPP. Subject to the provisions of the ESPP and the limitations of Section
423 of the Internal Revenue Code, all questions of interpretation or application of the ESPP will be determined by the Compensation
Committee and its decisions will be treated as final and binding upon all participants. The Board of Directors may itself take
action under the ESPP in its discretion.</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><I>Eligibility</I></B>.
All employees of the Company (or of any designated subsidiary) are eligible to participate in the ESPP, except employees who
are not employed by the Company (or a designated subsidiary) prior to the beginning of the relevant offering period, whose
customary employment is for twenty (20)&nbsp;hours or less per week, whose customary employment is for not more than five
(5)&nbsp;months in any calendar year, or who owns stock or holds employee stock options to purchase stock possessing five
percent (5%)&nbsp;or more of the total combined voting power or value of all classes of stock of the Company or any of its
subsidiaries, or would, as a result of participating in the ESPP, own stock or hold employee stock options to purchase stock
possessing five percent (5%)&nbsp;or more of the total combined voting power or value of all classes of stock of the Company
or any of its subsidiaries. At June&nbsp;30, 2014, fifty-seven (57) employees were eligible to participate in the 2004 ESPP,
and of that number, eight (8)&nbsp;employees were participating in the 2004 ESPP, contributing $4,438, in the aggregate, to
the 2004 ESPP during the 6-month offering period ending on June 30 2014. One of the participants in the 2004 ESPP was Alan
Symmons, the Company&rsquo;s Vice President of Engineering, who contributed $875 to the 2004 ESPP during that January 1
through June 30 offering period. The other participant is a non-executive employee of the Company.</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; text-align: justify; text-indent: 0.5in"><B><I>Offerings</I></B>.
The ESPP establishes offering periods with a duration of six months, commencing on January 1 and July 1 each year, with the exception
of the first offering period, which will commence on February&nbsp;1, 2015 and end on June&nbsp;30, 2015. Shares are purchased
on the last business day of each offering period (&ldquo;purchase date&rdquo;). The Committee may establish a different duration
for any offering or different commencement or ending dates for any offering.</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><I>Participation in
the ESPP</I></B>. Participation in an offering under the ESPP is limited to eligible employees who enroll in the ESPP prior to
the relevant offering period. An employee who becomes a participant in the ESPP will automatically participate in each successive
offering until the employee withdraws (or is deemed to withdraw) from the ESPP, terminates employment or otherwise becomes ineligible
to participate.</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><I>Purchase Price</I></B>.
The per share purchase price for any offering period is equal to ninety percent (90%) of the fair market value of a share of common
stock on the purchase date of the applicable offering period; provided, however, that the Committee may, in its sole discretion,
set a new purchase price per share for subsequent offering periods subject to compliance with Section 423 of the Internal Revenue
Code, but in no event can the purchase price per share be less than eight-five percent (85%) of the fair market value of a share
of common stock on the purchase date of any offering period. The fair market value will generally be the closing sales price per
share as reported on the NCM.</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><I>Payment of Purchase
Price</I></B>. The purchase price for each share is accumulated by regular payroll deductions made during the offering period.
Participants may authorize the Company to withhold up to fifteen percent (15%) of their compensation (or such lower limit set by
the Compensation Committee). The number of whole shares of the Company&rsquo;s common stock purchasable by a participant is determined
by dividing the balance of payroll deductions authorized and credited to the participant&rsquo;s recordkeeping account on the purchase
date of the offering period by the purchase price per share. However, no participant may purchase shares of common stock under
the ESPP or any other employee stock purchase plan of the Company or any subsidiary having a value exceeding $25,000 (based on
the fair market value of the Company&rsquo;s common stock on the first business day of the offering period in which the shares
are purchased) for each calendar year in which the employee participates in the ESPP. No participant may purchase more than 4,000
shares of common stock in any 6-month offering period or 8,000 shares of common stock in any 12- month offering period, unless
such maximums are changed by the Compensation Committee.</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; text-indent: 0.5in"><B><I>Cessation of Payroll
Deductions or Termination of Purchase Rights</I></B>. A participant&rsquo;s payroll deduction percentage may (effective as of the
next payroll period) be reduced during an offering period only to zero, and the payroll deductions credited to participant&rsquo;s
account will, at participant&rsquo;s election, be refunded or applied to the purchase of shares of common stock on the next scheduled
purchase date. The cessation of payroll deductions for such participant will remain in effect for successive offering periods,
unless the participant files a new enrollment agreement for a subsequent offering period. Alternatively, a participant may withdraw
from the ESPP at any time during an offering period. Upon withdrawal, the participant&rsquo;s accumulated payroll deductions will
be refunded, without interest. Once a participant withdraws from an offering, the participant may not resume participation during
the same offering period, but may reenroll in a subsequent offering period. Termination of a participant&rsquo;s employment with
the Company or a designated subsidiary for any reason whatsoever, immediately terminates the participant&rsquo;s purchase right
for the offering period then in progress and the participant&rsquo;s participation in the ESPP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&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: 0.5in">&nbsp;<B><I>Change in Control</I></B>.
In the event of (i)&nbsp;a merger or consolidation in which the Company is not the surviving entity, (ii)&nbsp;a merger in which
the Company is the surviving entity but after which the stockholders of the Company immediately prior to such merger cease to own
their shares or other equity interest in the Company, (iii)&nbsp;the sale of all or substantially all of the assets of the Company,
or (iv)&nbsp;the acquisition, sale or transfer of more than fifty percent (50%)&nbsp;of the outstanding shares of the Company by
tender offer or similar transaction, the offering period with respect to which the outstanding options relate will be shortened
by setting a new purchase date to occur within ten (10) business days prior to the proposed corporate transaction. In the event
a proposed dissolution or liquidation of the Company, the offering period then in progress will terminate immediately prior to
the consummation of such proposed action, unless otherwise provided by the Committee (including a determination that the ESPP be
terminated as of a fixed date and each participant be given the right to purchase shares of common stock prior to such termination).</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><I>Termination or Amendment</I></B>.
The ESPP will terminate upon the earlier of (i) January&nbsp;30, 2025, assuming approval of the ESPP, (ii) termination of the ESPP
by the Board of Directors, (iii) issuance of all of the shares of common stock reserved for issuance under the ESPP, or (iv) at
the Committee&rsquo;s discretion, termination of the ESPP in connection with the dissolution or liquidation of the Company. The
Board of Directors may amend, terminate or extend the term of the ESPP at any time, except that the approval of the Company&rsquo;s
stockholders is required within twelve (12)&nbsp;months of the adoption of any amendment which would increase the number of shares
that may be issued under the ESPP, change the designation of the employees eligible for participation in the ESPP or extend the
term of the ESPP.</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"><B>Summary of U.S. Federal Income Tax Consequences
</B></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 following summary is
intended as a general guide as to the U.S. federal income tax consequences of participation in the ESPP and does not attempt to
describe all possible federal or other tax consequences of such participation or tax consequences based on particular circumstances.</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">Generally, there are no
tax consequences to an employee of either becoming a participant in the ESPP or purchasing shares under the ESPP. However, after
a participant purchases shares under the ESPP, the participant will share in the Company&rsquo;s earnings through any dividends
distributed with respect to such purchased shares. The value of such dividends is taxable to the participant.</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 tax consequences of
a disposition of shares acquired under the ESPP vary depending on the period such stock is held before its disposition. If a participant
disposes of shares within two (2)&nbsp;years after the first business day of the offering period or within one (1)&nbsp;year after
the purchase date on which the shares are acquired (a &ldquo;disqualifying disposition&rdquo;), the participant recognizes ordinary
income in the calendar year of disposition in an amount equal to the difference between the fair market value of the shares on
the purchase date and the purchase price paid for those shares. Any difference between the sale price of the shares and the fair
market value of the shares on the purchase date will be capital gain or loss.</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; text-align: justify; text-indent: 0.5in">If the participant disposes
of shares at least two (2)&nbsp;years after the first business day of the offering period and at least one (1)&nbsp;year after
the purchase date on which the shares are acquired, the participant recognizes ordinary income in the year of disposition in an
amount equal to the lesser of (i)&nbsp;the difference between the fair market value of the shares on the date of disposition and
the purchase price paid for those shares, or (ii)&nbsp;the difference between the fair market value of the shares on the first
business day of the offering period and the purchase price (determined as if the purchase right were exercised on the first business
day of the offering period). Any additional gain or loss recognized by the participant on the disposition of the shares will be
a long-term capital gain or loss.</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">If the participant still
owns the shares at the time of his or her death, the lesser of (i)&nbsp;the difference between the fair market value of the shares
on the date of death and the purchase price, or (ii)&nbsp;the difference between the fair market value of the shares on the first
business day of the offering period and the purchase price (determined as if the purchase right was exercised on the first business
day of the offering period) is recognized as ordinary income in the year of the participant&rsquo;s death.</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">If the participant disposes
of the shares in a disqualifying disposition, the Company should be entitled to a deduction equal to the amount of ordinary income
recognized by the participant as a result of the disposition, except to the extent such deduction is limited by applicable provisions
of the Internal Revenue Code.</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>&nbsp;THE BOARD OF DIRECTORS RECOMMENDS VOTING "FOR" THE PROPOSAL TO <BR>
APPROVE THE ADOPTION OF THE ESPP, AS SUCCESSOR TO THE COMPANY'S
2004 ESPP</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; text-align: center"><B></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>APPROVAL OF THE AMENDMENT TO THE PLAN TO
INCREASE THE SHARES AVAILABLE FOR FUTURE GRANTS UNDER THE PLAN BY 1,200,000 SHARES</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">The Plan currently has
authorized for issuance 2,715,625 shares of Class A common stock of which 267,103 shares remain available for future grants as
of December 2, 2014. Our Board of Directors desire to amend the Plan to increase the shares authorized for issuance by 1,200,000
shares to a total of 3,915,625 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; text-indent: 0.5in">Our Board of Directors
believes that the approval of the amendment to the Plan is in the best interests of our Company and stockholders, because the availability
of an adequate number of shares reserved for issuance under the Plan is an important factor in attracting, motivating and retaining
qualified individuals essential to our success.</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"><B>Reasons for the Amendment </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">The Plan was approved by
the Company&rsquo;s stockholders at the Company&rsquo;s Annual Meeting on October 15, 2002. At that time, the Plan combined two
previously outstanding incentive plans and provided that the maximum number of shares of common stock which could be issued pursuant
to the Plan, subject to certain adjustments, was 3,725,000 shares. In March 2003, the Company affected a 1-for-8 reverse stock
split which reduced the maximum number of shares issuable under the Plan to 465,625. The Plan has been amended from time to time
to increase the total number of shares authorized for issuance. As of December 2, 2014, 267,103 shares of common stock remain available
for future issuance. The remaining shares available for future awards under the Plan are insufficient to meet the Company&rsquo;s
long-term incentive needs. The amendment would allow for 1,200,000 additional shares to be made available for awards under the
Plan.</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"><B>Key Data</B></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; text-indent: 0.5in">On an aggregate basis,
the Plan represents all equity incentive compensation activities of the Company since its incorporation. A summary of that activity,
encompassing the approximately 22 year period from the Company&rsquo;s incorporation in 1992 to December 2014 is as follows:</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; 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"></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="width: 60%">&nbsp;</td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 12%">&nbsp;</td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="width: 10%">&nbsp;</td>
    <TD STYLE="width: 2%">&nbsp;</td>
    <TD STYLE="font-weight: bold; text-align: center; width: 12%">&ldquo;Overhang&rdquo;</td></tr>
<tr style="vertical-align: bottom">
    <TD>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD STYLE="font-weight: bold; text-align: center">percent&nbsp;as&nbsp;of</td></tr>
<tr style="vertical-align: bottom">
    <TD>&nbsp;</td>
    <td>&nbsp;</td>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</td>
    <td>&nbsp;</td>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</td>
    <td>&nbsp;</td>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;2,&nbsp;2014*</td></tr>
<tr style="vertical-align: bottom">
    <TD>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font-weight: bold; text-align: center">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="font-weight: bold; text-align: center">&nbsp;</td>
    <td>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<tr>
    <TD STYLE="padding-left: 12px; font-weight: bold; text-align: left">USE OF STOCK IN THE PLAN</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD>&nbsp;</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12px; text-align: left">Shares granted and issued since 1992</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom; text-align: right">649,064</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</td></tr>
<TR STYLE="background-color: White">
    <TD STYLE="padding-left: 12px; text-align: left">Shares outstanding at December 2, 2014:</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD>&nbsp;</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12px; text-align: left">&nbsp;&nbsp;&nbsp;Options - exercise prices over $6 per share</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</td></tr>
<TR STYLE="background-color: White">
    <TD STYLE="padding-left: 12px; text-align: left">&nbsp;&nbsp;&nbsp;Options - exercise prices under $6 per share</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom; text-align: right">724,158</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD>&nbsp;</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12px; text-align: left">&nbsp;&nbsp;&nbsp;Restricted Stock</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right">1,075,300</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom; text-align: right">1,799,458</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="text-align: right">12.6%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12px; text-align: left">Shares remaining available in Plan at December 2, 2014</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom; text-align: right">267,103</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="text-align: right">1.9%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="border-bottom: black 0.5pt solid">&nbsp;</td>
    <td>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD>Total,&nbsp;December&nbsp;2, 2014</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: top; text-align: right; border-top-color: black; border-top-width: 0.5pt">2,715,625</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</td></tr>
<TR STYLE="background-color: White">
    <TD>&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: top; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="text-align: right">&nbsp;</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12px; text-align: left">Proposed additional shares</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom; text-align: right">1,200,000</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="text-align: right">8.4%</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD>&nbsp;</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Pro-forma total, January 30, 2015 Sum of &quot;Overhang&quot;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right">3,915,625</td>
    <td>&nbsp;</td>
    <TD STYLE="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right">22.8%</td></tr>
</table>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">*Overhang is calculated
for purposes of this presentation as the number of shares of the type that are issued but subject to continued restriction (Restricted
Stock), issuable upon exercise (options with exercise prices under $6.00 per share), or potentially issuable in the future under
either restricted stock or option agreements divided by the 14,297,166 shares of Common Stock outstanding at December 2, 2014.
Note that the Company has no stock options outstanding with exercise prices greater than $6.00 per share.</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; text-indent: 0.5in">Because incentive awards
granted under the Plan are generally discretionary the table below sets forth information pertaining to stock options and shares
of restricted stock that were granted in fiscal 2014 pursuant to the Plan to the persons or groups named 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: 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Total Number</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Dollar Value</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Total Number</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Dollar Value</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">of</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">of</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">of Shares of</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">of Shares of</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR>
    <TD STYLE="font-weight: bold; text-align: left">Name and Position</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Stock Options</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Stock Options</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Resticted Stock</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Resticted Stock</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left">J. James Gaynor</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">50,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">70,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President &amp; CEO</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Dorothy Cipolla</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">21,150</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CFO, Secretary &amp; Treasurer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Alan Symmons</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">21,150</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VP of Engineering</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">All current executive officers as a group</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">80,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">112,800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">All current non-employee directors as a group</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">177,300</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">249,993</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">All employees except for executive officeers</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,140</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: Black 1pt solid">as a group</TD><TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>



<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: 0"></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">The additional 1,200,000
shares to be reserved for issuance under the Plan pursuant to this amendment is currently expected to be adequate for grants and
awards for approximately four (4) years based on a projection for both directors&rsquo; compensation (approximately 840,000 shares)
and employee and executive officer compensation (approximately 320,000 shares). Based on such projection, the shares of common
stock that might be granted during such period would total approximately 8.1% of outstanding shares. Not all shares granted actually
become issued shares of common stock.</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; 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 Board believes that,
to attract, motivate and retain qualified officers, directors and employees, to incentivize such persons to attain the Company&rsquo;s
long-term goal of increasing stockholder value, and to continue to promote the well-being of the Company, it is in the best interests
of the Company and its stockholders to provide officers, directors and employees of the Company, through the granting of equity
incentive awards, the opportunity to participate in the appreciation in value, if any, of the Company&rsquo;s common stock. The
future success of the Company will be based on a combination of dedicated and competent management working alongside skilled and
experienced electo-optic engineers and production personnel. The Board believes that the additional 1,200,000 shares to be reserved
for issuance under the Plan will ensure the Company&rsquo;s ability to retain and have access to qualified individuals.</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"><B>Description Of The Plan And The Proposed
Amendment </B></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 following summary of
certain features of the Plan is qualified in its entirety by reference to the full text of the Plan, which was filed as an exhibit
to our proxy statement filed with the SEC on September 12, 2002. Amendments No. 1 and No. 2 to the Plan were filed on Form S-8
on February 12, 2009. Amendment No. 3 to the Plan was approved by our shareholders on November 1, 2007 and was filed as Appendix
A to our proxy statement filed with the SEC on December 10, 2012. Amendments No. 4 and No. 5 were filed as Appendix B and C, respectively,
to our proxy statement filed with the Securities and Exchange Commission on December 10, 2012. Amendment No. 6 to the Plan is attached
to the Proxy Statement as Appendix B.</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"><B>In General </B></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">Under the terms of the
Plan, employees and officers of the Company and any subsidiary are eligible to receive incentive stock options (&ldquo;Incentive
Options&rdquo;) within the meaning of Section 422 of the Internal Revenue Code, stock appreciation rights and/or performance bonuses
of cash or stock. In addition, employees and officers of the Company and any subsidiary, and directors of the Company, are eligible
to receive options that do not qualify as Incentive Options (&ldquo;Nonqualified Options&rdquo;) and/or restricted stock or unit
awards pursuant to the terms of the Plan. Generally, no consideration is received by the Company upon the grant of any options
or awards; however, the Company will receive consideration upon the exercise of any options. To date, the only forms of awards
under the Plan have been Incentive Options, Nonqualified Options and restricted stock awards. The Plan is administered by the Board
or a committee appointed by the Board (the &ldquo;Omnibus Committee&rdquo; &ndash; which is currently the Compensation Committee).
As of December 2, 2014, approximately 66 employees and five directors were eligible to participate in the Plan; however, awards
may be granted only to such officers, directors and employees of the Company as the Omnibus Committee selects from time to time
in its sole discretion.</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">The Plan currently provides
that the maximum number of shares of common stock issuable under the Plan is 2,715,625 and as of December 2, 2014, there were only
267,103 shares remaining available for grant to persons participating in the Plan. The proposed amendment would increase the number
of shares of common stock reserved for issuance under the Plan to a total of 3,915,625 shares, thereby providing an aggregate of
1,467,103 shares available for future grants to persons participating in the Plan.</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; 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">Incentive Options are generally
exercisable for a period of up to ten years from the grant date and the exercise price may not be less than the fair market value
of the common stock on the grant date. The fair market value of a share of common stock was $1.24 as of December 2, 2014.</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; text-indent: 0.5in">Options (whether Incentive
Options or Nonqualified Options) granted under the Plan generally may be exercised only while the recipient is employed or retained
by the Company or within three months after the date of termination of employment. However, if termination is due to death or permanent
disability of the option holder, the option may be exercised within one year of the date of termination. To exercise an award,
the option holder&rsquo;s payment may be made by cash or by any other means approved by the Board of Directors or the Omnibus 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: justify; text-indent: 0.5in">Under the terms of the
Plan, an option holder has none of the rights of a stockholder with respect to the shares issuable upon the exercise of the option
or satisfaction of conditions for the award, until such shares are issued. No adjustment may be made for dividends or distributions
or other rights for which the record date is prior to the date of exercise, except as provided in the Plan. During the lifetime
of the recipient, an award is exercisable only by the option holder. No option may be sold, pledged, assigned, hypothecated, transferred
or disposed of in any manner other than by will or by the laws of descent and distribution.</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">Restricted stock may also
be awarded under the Plan. Under the Plan, a restricted stock award or unit is a grant of stock of the Company that is subject
to certain restrictions that the Company places on such stock. Typically, the restricted stock is subject to forfeiture by the
recipient, which gradually decreases in amount over a certain period of time. Generally any &ldquo;unvested&rdquo; shares at the
time of termination or resignation of the recipient are forfeited unless modified by the Board of Directors. Any &ldquo;unvested&rdquo;
shares of restricted stock issued to directors will immediately vest upon their termination from the Board. Other restrictions
may be placed on the stock, including, but not limited to, Section 16 of the Exchange Act and other transfer restrictions subsequent
to vesting and after issuance.</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"><B>Federal Income Tax
Consequences </B></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><I>Nonqualified Stock
Options</I>.</B> Generally, no income is recognized when a nonqualified stock option is granted to the option holder. Generally,
upon the exercise of a nonqualified stock option, the excess of the fair market value of the shares on the date of exercise over
the option price is ordinary income to the option holder at the time of the exercise. The tax basis for the shares purchased is
their fair market value on the date of exercise. Any gain or loss realized upon a later sale of the shares for an amount in excess
of or less than their tax basis will be taxed as capital gain or loss, with the character of the gain or loss (short-term or long-term)
depending upon how long the shares were held since exercise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B><I>Incentive</I></B><I>
<B>Stock</B> <B>Options</B></I>. Generally, no regular taxable income is recognized upon the exercise of an incentive option. The
tax basis of the shares acquired will be the exercise price. In order to receive this favorable treatment, shares acquired pursuant
to the exercise of an incentive option may not be disposed of within two years after the date the option was granted, nor within
one year after the exercise date (the &ldquo;Holding Periods&rdquo;). If the shares are sold before the end of the Holding Periods,
the amount of that gain which equals the lesser of the difference between the fair market value on the exercise date and the option
price or the difference between the sale price and the option price is taxed as ordinary income and the balance, if any, as short-term
or long-term capital gain, depending upon how long the shares were held. If the Holding Periods are met, all gain or loss realized
upon a later sale of the shares for an amount in excess of or less than their tax basis will be taxed as a long-term capital gain
or loss.</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; 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><I>Restricted Stock</I></B>.
In the case of a restricted stock award, the excess of the fair market value of the underlying shares of the restricted stock award
over the amount paid for the restricted stock award will be taxed as ordinary income to the recipient in the first taxable year
in which the underlying common shares are no longer subject to vesting or similar types of forfeiture restrictions. Alternatively,
with respect to an individual who files a timely election under Section 83(b) of the Internal Revenue Code, such excess will instead
be taxed as ordinary income upon the effectiveness of the grant of such restricted stock award notwithstanding any vesting or similar
types of forfeiture restrictions. The income realized by the recipient is generally treated as wages and will be subject to withholding
taxes even though no cash is paid to the recipient by us. In the case of restricted stock units, the election under Section 83(b)
of the Internal Revenue Code is not available and the holder may elect to defer receipt of the stock, and thus taxation thereon,
when the vesting occurs. When a holder so elects deferral, the holder must remain at risk that the property (stock) may never be
delivered to him due to adverse developments.</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"><B><I>The Company Deduction</I></B>.
The Company is entitled to a tax deduction in connection with the exercise of a nonqualified stock option equal to the ordinary
income recognized by the option holder. The Company is also entitled to a tax deduction in connection with the vesting of restricted
stock or, earlier in the case of the grantee making an election pursuant to Section 83(b) of the Internal Revenue Code (in both
cases, conditioned upon proper reporting and tax withholding and subject to possible deduction limitations).</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><I>Holding Periods</I></B>.
Provided the shares sold or exchanged are held for more than twelve (12) months prior to such sale or exchange, the resulting gain
or loss will be long-term in character. If the shares are held for less than twelve months prior to their sale or exchange, the
resulting gain or loss will be short-term in character. In the case of restricted stock units, the holding period does not begin
until the holder elects to receive the stock and be subject to the recognition of income subject to taxation at ordinary income
rates.</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><I>Other Tax Considerations</I></B>.
This summary is not intended to be a complete explanation of all of the federal income tax consequences of participating in the
Omnibus Plan. A participant should consult his or her personal tax advisor to determine the particular tax consequences of the
plan, including the application and effect of foreign state and local taxes, and any changes in the tax laws after the date of
this proxy statement.</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
&ldquo;FOR&rdquo; THE APPROVAL OF THE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>AMENDMENT TO THE PLAN TO INCREASE THE SHARES AVAILABLE FOR FUTURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ISSUANCE UNDER THE PLAN
BY 1,200,000 SHARES.</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; text-align: center"><B></B></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><U>ITEM NO. 4</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>APPROVAL OF AN AMENDMENT TO THE CERTIFICATE
OF INCORPORATION TO REMOVE THE LIMITATION ON THE MAXIMUM SIZE OF THE BOARD OF DIRECTORS</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">You are being asked to
approve an amendment to the Certificate of Incorporation to remove the limitation on the maximum size of the Board of Directors
contained in Article FOURTEENTH. Article FOURTEENTH currently reads as follows:</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; text-indent: 0.5in"><I>&ldquo;(a) The number
of directors constituting the entire Board shall be not less than three nor more than seven as fixed from time to time by vote
of a majority of the entire Board; provided, however, that the number of directors shall not be reduced as to shorten the term
of any director at the time in office.&rdquo;</I></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; text-indent: 0.5in">The Board recommends that
Article FOURTEENTH of the Certificate of Incorporation be amended to read as follows:</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; text-indent: 0.5in"><I>&ldquo;(a) The number
of directors shall be fixed from time to time by vote of a majority of the entire Board; provided, however, that the number of
directors shall not be reduced as to shorten the term of any director at the time in office and in no event shall there be less
than three directors.&rdquo;</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">At its meeting held on
October 30, 2014, the Board of Directors approved this amendment, subject to stockholder approval, and directed that this amendment
be submitted to a vote of the Company&rsquo;s stockholders as the Annual Meeting. The Board of Directors has determined that this
amendment is in the best interest of the Company and its stockholders and recommends approval by the stockholders.</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"><B>Material Differences Between Current and
Proposed Provision</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Under the proposed amendment
to Article FOURTEENTH of our Certificate of Incorporation, we are removing the maximum size of the Board of Directors. By removing
the limit of seven directors, the Board of Directors would have the discretion to set the number of directors from time to time
at greater than seven directors.</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"><B>Purpose of Amendment</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><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 Director
believes that it is in the best interest of the Company to grant the Board of Directors the discretion to determine our board size
The Board of Directors based this decision on the need to have flexibility to have the ability to have more than seven directors
should the occasion arise to add additional directors that the Board determines would add to the diversity of the Board or have
specific skill sets that would enhance the Board.</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; text-indent: 0.5in">If the Company&rsquo;s
stockholders approve the removal of the maximum size of the Board of Directors, the Board of Directors will have authority to file
with the Secretary of State of Delaware an amendment to the Company&rsquo;s Certificate of Incorporation to update Article FOURTEENTH.
Upon approval and following such filing with the Secretary of State of the State of Delaware, the amendment will become effective
on the date it is filed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&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: 0.5in">&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Neither Delaware law,
the Company&rsquo;s Certificate of Incorporation, nor the Company&rsquo;s By-laws provide for appraisal or other similar rights
for dissenting stockholders in connection with this proposal. Accordingly, the Company&rsquo;s stockholders will have no right
to dissent and obtain payment for their 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; text-indent: 0.5in">The amendment proposed
by the Company to Article FOURTEENTH of the Certificate of Incorporation is attached to this proxy statement as Appendix C. If
this Item 4 is approved, the Certificate of Incorporation will be amended accordingly and a Certificate of Amendment as set forth
on Appendix C will be filed with the Secretary of State of the State of Delaware.</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: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B></B></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"><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
&ldquo;FOR&rdquo; THE PROPOSAL TO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>APPROVE THE AMENDMENT TO THE CERTIFICATE
OF INCORPORATION TO <BR>
REMOVE THE LIMITATION ON THE MAXIMUM SIZE OF THE BOARD OF DIRECTORS</B></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></B></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><U>ITEM NO. 5</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: 0.5in; 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,
2015. 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: 0.5in; 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; 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 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, 2014 and 2013, 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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Fiscal 2014</TD><TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Fiscal 2013</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 68%; text-align: justify">Audit Fees (1)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">112,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">118,650</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Audit-Related Fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Tax Fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1pt">All Other Fees</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; text-indent: 10pt">Total All Fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">112,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">118,650</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<TD STYLE="width: 9pt; font: 10pt Times New Roman, Times, Serif"></TD><TD STYLE="width: 27pt; font: 10pt Times New Roman, Times, Serif">(1)</TD><TD STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif">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 SEC within those fiscal years.</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">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.</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 RATIFICATION OF CFR AS THE COMPANY&rsquo;S
INDEPENDENT AUDITOR FOR THE FISCAL YEAR ENDING JUNE 30, 2015</B></P>

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


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<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>OTHER BUSINESS</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">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>2014 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 2014, which contains the Company&rsquo;s Form 10-K for the fiscal year ended June 30, 2014, 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: <U>http://www.sec.gov</U>.</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="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0; width: 60%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0; width: 40%"><FONT STYLE="font-size: 10pt">By Order of the Board of Directors,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"><I>J. James Gaynor</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">President &amp; Chief Executive Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Orlando, Florida</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">December __, 2014</FONT></TD></TR>
</TABLE>

<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"></P>

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


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<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><U>Appendix A</U></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; text-align: center; margin-right: 0; margin-left: 0"><B>LIGHTPATH TECHNOLOGIES,
INC.<BR>
EMPLOYEE STOCK PURCHASE PLAN </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-right: 0; margin-left: 0"><B>(effective as of January
30, 2015)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>1.&nbsp;Purpose</B>.
The purpose of the LightPath Technologies, Inc. Employee Stock Purchase Plan (&ldquo;<B><I>Plan</I></B>&rdquo;) is to provide eligible
employees of LightPath Technologies,&nbsp;Inc., a Delaware corporation (&ldquo;<B><I>Company&rdquo;</I></B>) and certain Designated
Subsidiaries (as hereinafter defined) with a convenient means of acquiring an equity interest in the Company through payroll deductions,
to enhance such employees&rsquo; sense of participation in the affairs of the Company and its Subsidiaries (as hereinafter defined),
and to provide an incentive for continued employment. For purposes of this Plan, a &ldquo;<B><I>Subsidiary</I></B>&rdquo; shall
mean a &ldquo;subsidiary corporation&rdquo; of the Company whether now or subsequently established, as defined in Section 424(f)
of the Internal Revenue Code of 1986, as amended (&ldquo;<B><I>Code</I></B>&rdquo;). The Company intends this Plan to qualify as
an &ldquo;employee stock purchase plan&rdquo; under Section&nbsp;423 of the Code, and this Plan shall be so construed, although
the Company makes no undertaking or representation to maintain such qualification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>2.&nbsp;Shares
Subject to this Plan</B>. Subject to adjustment pursuant to Section 13(a), the maximum number of shares of the Company&rsquo;s
Common Stock Class A (&ldquo;<B><I>Common Stock</I></B>&rdquo;) that will be made available for purchase under this Plan will be
four hundred thousand shares (400,000). The shares of Common Stock reserved for issuance pursuant to this Plan shall be authorized
but unissued shares of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>3.&nbsp;Administration</B>.
This Plan shall be administered by the Compensation Committee of the Board of Directors of the Company, or such other committee
as may be designated by the Board of Directors of the Company to administer this Plan (the applicable committee, &ldquo;<B><I>Committee&rdquo;</I></B>).
Notwithstanding any such delegation of authority, the Board of Directors of the Company (&ldquo;<B><I>Board</I></B>&rdquo;) may
itself take any action under this Plan in its discretion at any time, and any reference in this Plan to the rights and obligations
of the Committee shall be construed to apply equally to the Board. Any references to the Board mean only the Board. Subject to
applicable law, the Committee may delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise,
subject to such terms and limitations as the Committee shall determine (and references in this Plan to the Committee shall thereafter
be to the Committee or subcommittee). In addition to other express powers and authorizations conferred on the Committee by this
Plan, the Committee shall have the full power and authority to designate from time to time which Subsidiaries shall be eligible
to participate in this Plan (a &ldquo;<B><I>Designated Subsidiary</I></B>&rdquo;). Subject to the provisions of this Plan and the
limitations of Section&nbsp;423 of the Code or any successor provision in the Code, all questions of interpretation or application
of this Plan shall be determined by the Committee in good faith and its decisions shall be final and binding upon all persons.
Members of the Committee shall receive no compensation for their services in connection with the administration of this Plan, other
than standard fees as established from time to time by the Board for services rendered by Board members serving on Board committees.
All expenses incurred in connection with the administration of this Plan shall be paid by the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>4.&nbsp;Eligibility</B>.
All employees of the Company or of a Designated Subsidiary are eligible to participate in Offering Periods (as hereinafter defined)
under this Plan except the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(a)&nbsp;employees who
are not employed by the Company or a Designated Subsidiary prior to the beginning of such Offering Period or prior to such other
time period (not more than twelve (12) months prior to the beginning of such Offering Period) as specified by the 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; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(b)&nbsp;employees
whose customary employment with the Company or a Designated Subsidiary is for twenty (20)&nbsp;hours or less per week;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(c)&nbsp;employees
whose customary employment with the Company or a Designated Subsidiary is for not more than five (5) months in any calendar year;
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(d)&nbsp;employees
who, together with any other person whose stock would be attributed to such employee pursuant to Section&nbsp;424(d) of the Code,
own stock or hold employee stock options to purchase stock possessing five percent (5%) or more of the total combined voting power
or value of all classes of stock of the Company or any of its Subsidiaries or would, as a result of a purchase under this Plan
with respect to such Offering Period, own stock or hold employee stock options to purchase stock possessing five percent (5%) or
more of the total combined voting power or value of all classes of stock of the Company or any of its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>5.&nbsp;Offering
Dates.</B> The offering periods of this Plan (each, an &ldquo;<B><I>Offering Period</I></B>,&rdquo; and collectively, &ldquo;<B><I>Offering
Periods</I></B>&rdquo;) shall be of six (6)&nbsp;months duration commencing on January&nbsp;1 and July&nbsp;1 of each year and
respectively ending on June 30 and December&nbsp;31 of each year, with the exception of the first Offering Period, which shall
be of five (5) months duration commencing on February 1, 2015 and ending on June 30, 2015. During an Offering Period payroll deductions
of the participants are accumulated under this Plan. The first business day of an Offering Period is referred to as the &ldquo;<B><I>Offering
Date&rdquo;</I></B>. The last business day of an Offering Period is referred to as the &ldquo;<B><I>Purchase Date&rdquo;</I></B>.
The Committee shall have the power to change the Offering Dates, the Purchase Dates and the duration of Offering Periods without
stockholder approval if such change is announced prior to the relevant Offering Period or prior to such other time period as specified
by the Committee. No Offering Period may have a duration exceeding one year beginning with the Offering Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>6.&nbsp;Participation
in this Plan</B>. Employees who meet the requirements set forth in Section 4 for eligibility to participate in this Plan may become
participants in Offering Periods on an Offering Date by completing the prescribed enrollment agreement and delivering such form
to the Company (or by following such other enrollment process prescribed by the Committee) prior to such Offering Period, or such
other time period as specified by the Committee. An eligible employee who does not deliver an enrollment agreement to the Company
after becoming eligible to participate in an Offering Period shall not participate in that Offering Period or any subsequent Offering
Period until such time when the employee enrolls in this Plan by filing an enrollment agreement with the Company prior to the Offering
Period to which it relates, or such other time period as specified by the Committee. Once an eligible employee becomes a participant
in an Offering Period by properly filing an enrollment agreement, such employee will participate in the first Offering Period following
the submission of the enrollment agreement and shall be automatically re-enrolled in all subsequent Offering Periods unless the
employee withdraws or is deemed to withdraw from this Plan or terminates further participation in the Offering Period as set forth
in Section&nbsp;11 below or is otherwise ineligible to participate in this Plan. Such participant is not required to file any additional
enrollment agreement in order to continue participation in this Plan. Notwithstanding the foregoing, the Committee may require
current participants to file a new enrollment agreement at any time it deems necessary or desirable to facilitate Plan administration
or for any other reason.</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; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>7.&nbsp;Purchase
Price</B>. The purchase price per share at which a share of Common Stock will be sold shall be ninety percent (90%) of the fair
market value (as hereinafter defined) of a share of Common Stock on the Purchase Date of the applicable Offering Period; provided,
however, that the Committee may, in its sole discretion, set a new purchase price per share for subsequent Offering Periods subject
to compliance with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or securities
exchange or market system rule), but in no event shall the purchase price per share be less than eighty-five percent (85%) of the
fair market value of a share of Common Stock on the Purchase Date of any Offering Period<B>.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">The
term &ldquo;<B><I>fair market value&rdquo;</I></B> means, as of any date, the value of a share of the Company&rsquo;s Common Stock
determined as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(a)&nbsp;if
such Common Stock is listed on any established stock exchange or national market system, including, without limitation, the New
York Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market of The NASDAQ Stock
Market, the closing sales price for such stock as quoted on such exchange or system on the date of determination (or the closing
bid, if no sales were reported) as reported in <I>The Wall Street Journal</I> or such other source as the Committee deems reliable;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(b)&nbsp;if
such Common Stock not listed on an established stock exchange or national market system, but the Common Stock is regularly quoted
by a recognized securities dealer, the average of the closing bid and asked prices on the date of determination as reported in
<I>The Wall Street Journal</I> or such other source as is deemed authoritative by the Committee at that time; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(d)
in the absence of an established market for the Common Stock, then the price so reasonably determined by the Committee in good
faith as the fair market value on any particular date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>8.&nbsp;Payment
Of Purchase Price; Changes In Payroll Deductions; Issuance Of Shares.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(a)&nbsp;On
each Offering Date, each participant in this Plan shall automatically be granted a right to purchase as many whole shares of Common
Stock as the participant will be able to purchase with the payroll deductions authorized and credited to the participant&rsquo;s
account during the applicable Offering Period (such right shall also be referred to as an &ldquo;<B><I>option</I></B>&rdquo;);
provided that such purchase shall be subject to the limitations set forth in Sections 2 and 9. Each participant&rsquo;s enrollment
agreement shall contain a payroll deduction authorization pursuant to which the participant shall elect to have a designated percentage
of his or her eligible compensation in one percent (1%) increments not less than one percent (1%), nor greater than fifteen percent
(15%) (or such lower limit set by the Committee from Offering Period to Offering Period) deducted during the Offering Period as
further provided in this Section 8(a). Eligible compensation shall mean all W-2 cash compensation, including, but not limited to,
base salary, wages, commissions, overtime, shift premiums, bonuses and incentive compensation, plus draws against commissions,
<B><I>provided</I>, <I>however</I></B>, that for purposes of determining a participant&rsquo;s compensation, any election by such
participant to reduce his or her regular cash remuneration under Sections 125 or 401(k) of the Code, or similar provisions hereinafter
introduced by legislation, shall be treated as if the participant did not make such election. Payroll deductions for a participant
with respect to an Offering Period shall commence on the first payday of the Offering Period occurring on or after the Offering
Date and shall continue to the last payday of the Offering Period occurring on or before the Purchase Date, unless sooner altered
or terminated as provided in this Plan.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(b)&nbsp;A
participant may reduce his or her payroll deduction percentage during an Offering Period from the enrollment percentage only to
zero (0) by filing with the Company a request for cessation of payroll deductions. A reduction to zero shall be effective beginning
with the next payroll period after the Company&rsquo;s receipt of the request and no further payroll deductions will be made for
the duration of the Offering Period. Payroll deductions credited to the participant&rsquo;s account prior to the effective date
of the request shall be electively returned to the participant or used to purchase shares of Common Stock of the Company in accordance
with Section&nbsp;(d) below. A participant may not resume making payroll deductions during the Offering Period in which he or she
reduced his or her payroll deductions to zero (0), and any such payroll deduction change shall remain in effect for successive
Offering Periods, unless the participant files a new enrollment agreement for a subsequent Offering Period, the participant elects
to withdraw from this Plan in accordance with Section 10, or the participant is withdrawn from this Plan in accordance with Section
11 or is otherwise ineligible to participate in this Plan. A participant may only increase his or her rate of payroll deductions
to be effective for the next Offering Period by completing and filing a new enrollment agreement authorizing the payroll deductions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(c)&nbsp;All
payroll deductions made for a participant are credited to a recordkeeping account for such participant under this Plan and are
deposited with the general funds of the Company. No interest accrues on the payroll deductions. All payroll deductions received
or held by the Company may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate
such payroll deductions. A participant shall be a general creditor of the Company with regard to such deductions until the conclusion
of the Purchase Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(d)&nbsp;On each Purchase
Date with respect to an Offering Period under this Plan, so long as this Plan remains in effect and provided that the participant
has not submitted a signed and completed withdrawal form in accordance with Section 10 before that date which notifies the Company
that the participant wishes to withdraw from that Offering Period and have all payroll deductions accumulated in the account maintained
on behalf of the participant as of that date returned to the participant and provided further that the participant has not requested
all payroll deductions accumulated in the participant&rsquo;s account be electively returned pursuant to Section 8(b) above, the
Company shall cause the amount credited to each participant&rsquo;s account to be applied to purchase as many whole shares of Common
Stock pursuant to the participant&rsquo;s option as possible at the purchase price per share specified in Section&nbsp;7, provided
that such purchase shall be subject to the limitations set forth in Sections 2 and 9. No fractional shares of Common Stock shall
be purchased; any amounts remaining credited to a participant&rsquo;s account, which are not sufficient to purchase a full share
of Common Stock, shall be retained in the participant&rsquo;s account and rolled forward to the next Offering Period. If on the
Purchase Date the amount credited to a participant&rsquo;s account exceeds the Maximum Share Amount (as hereinafter defined), the
amount in excess of the Maximum Share Amount shall be returned in full to the participant, without interest, in accordance with
Section 9(d). No Common Stock shall be purchased on a Purchase Date on behalf of any employee whose participation in this Plan
has terminated prior to such Purchase Date.</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; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(e)&nbsp;As
soon as reasonably practicable after each Purchase Date on which a purchase of shares of Common Stock occurs, the Company shall
arrange the delivery to each participant of the shares of Common Stock purchased pursuant to his or her option in a form determined
by the Committee, in its sole discretion, and pursuant to rules established by the Committee. The Company may permit or require
that shares of Common Stock be deposited directly with a broker designated by the Company or to a designated agent of the Company,
and the Company may utilize electronic or automated methods of share transfer. The Company may require that shares of Common be
retained with such broker or agent for a designated period of time and/or establish other procedures to permit tracking of disqualifying
dispositions of such shares of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>9.&nbsp;Limitations
on Shares to be Purchased.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(a)&nbsp;No
participant shall be entitled to purchase stock under this Plan at a rate which, when aggregated with participant&rsquo;s rights
to purchase stock under all other employee stock purchase plans of the Company or any Subsidiary, exceeds $25,000 in fair market
value of such stock, determined as of the Offering Date (or such other limit as may be imposed by the Code) for each calendar year
in which the participant participates in this Plan. The Company shall automatically suspend the payroll deductions of any participant
as necessary to enforce such limit provided that when the Company automatically resumes such payroll deductions, the Company must
apply the rate in effect immediately prior to such suspension.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(b)&nbsp;
Subject to any adjustment pursuant to Section 13, no more than 8,000 shares of Common Stock may be purchased by a participant on
any single Purchase Date within an Offering Period of twelve months or 4,000 shares of Common Stock within an Offering Period of
six months (hereinafter the &ldquo;<B><I>Maximum Share Amount&rdquo;</I></B>); provided, however, that the Committee may, in its
sole discretion, set a new maximum number of shares of Common Stock that may be purchased by any participant at any single Purchase
Date, which shall then be the Maximum Share Amount for subsequent Offering Periods. If a new Maximum Share Amount is set, then
all participants must be notified of such Maximum Share Amount prior to the commencement of the next Offering Period for which
it is to be effective. The Maximum Share Amount shall continue to apply with respect to all succeeding Purchase Dates and Offering
Periods unless revised by the Committee as set forth above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(c)&nbsp;If
the number of shares of Common Stock to be purchased on a Purchase Date by all participants participating in this Plan exceeds
the number of shares of Common Stock then available for issuance under this Plan, then the Company will make a pro rata allocation
of the remaining shares of Common Stock under this Plan in as uniform and equitable a manner as is reasonably practicable, as determined
in the Committee&rsquo;s sole discretion. In such event, the Company shall give written notice to each affected participant of
the reduction of the number of shares of Common Stock to be purchased under the participant&rsquo;s option.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(d)&nbsp;Any
payroll deductions accumulated in a participant&rsquo;s account which are not used to purchase shares of Common Stock due to the
limitations in this Section&nbsp;9 shall be returned in full to the participant as soon as practicable after the end of the applicable
Offering Period, without interest.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(f)&nbsp;During
a participant&rsquo;s lifetime, his or her option to purchase shares of Common Stock hereunder is exercisable only by him or her.
A participant will not have any rights as a stockholder with respect to any shares of Common Stock subject to the participant&rsquo;s
option until the shares of Common Stock are purchased in accordance with Section 8(d) above and such shares of Common Stock are
delivered in accordance with Section 8(e).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(a)&nbsp;A
participant may withdraw from an Offering Period after the applicable Offering Date by signing and delivering to the Company a
written notice to that effect on a form provided for such purpose. Such withdrawal may be elected at any time prior to the end
of the Purchase Date of the Offering Period, or prior to such other date specified by the Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(b)&nbsp;Upon
withdrawal from this Plan, the participant&rsquo;s option for such Offering Period will automatically be terminated, and the accumulated
payroll deductions credited to the participant&rsquo;s account shall be returned to the withdrawn participant, without interest,
and his or her participation in this Plan shall terminate. In the event a participant voluntarily elects to withdraw from this
Plan, such participant may not resume his or her participation in this Plan during the same Offering Period, but he or she may
participate in any Offering Period under this Plan which commences on a date subsequent to such withdrawal by filing a new enrollment
form for payroll deductions in the same manner as set forth in Section&nbsp;6 above for initial participation in this Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>11.&nbsp;Termination
of Employment.</B> Termination of a participant&rsquo;s employment with the Company or a Designated Subsidiary for any reason whatsoever,
including but not limited to retirement or death, or the failure of a participant to remain an eligible employee of the Company
or of a Designated Subsidiary, immediately terminates the participant&rsquo;s option for the Offering Period then in progress and
his or her participation in this Plan. In such event, the payroll deductions credited to the participant&rsquo;s account will be
returned, without interest, to the participant or, in the case of his or her death, as provided in Section 21. For purposes of
this Section&nbsp;11, a participant will not be deemed to have terminated employment or failed to remain in the continuous employ
of the Company or of a Designated Subsidiary in the case of sick leave, military leave, or any other bona fide leave of absence
approved by the Board; <I>provided</I> that such leave is for a period of not more than ninety (90)&nbsp;days or reemployment upon
the expiration of such leave is guaranteed by contract or statute.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>12.&nbsp;Return
of Payroll Deductions</B>. In the event a participant&rsquo;s participation in this Plan is terminated by withdrawal, ineligibility,
termination of employment or otherwise, the Company shall deliver to the participant all payroll deductions credited to such participant&rsquo;s
account as soon as practicable thereafter. No interest shall accrue on the payroll deductions credited to a participant&rsquo;s
account under this Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>13.&nbsp;Capital
Changes.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(a)&nbsp;Subject
to any required action by the stockholders of the Company, the number and type of shares of Common Stock which have been authorized
for issuance under this Plan but have not yet been purchased (collectively, the &ldquo;<B><I>Reserves&rdquo;</I></B>), and the
Maximum Share Amount, shall be appropriately and proportionately adjusted for any increase or decrease in the number of issued
and outstanding shares of Common Stock of the Company resulting from a stock split or the payment of a stock dividend (but only
on the Common Stock) or any other increase or decrease in the number of issued and outstanding shares of Common Stock effected
without receipt of any consideration by the Company; <I>provided</I>, <I>however</I>, that conversion of any convertible securities
of the Company shall not be deemed to have been &ldquo;effected without receipt of consideration.&rdquo; Such adjustment shall
be made by the Committee, whose determination shall be final, binding and conclusive. Except as expressly provided herein, no issue
by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and
no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option.
It is intended that, if possible, any adjustments contemplated by this Section 13(a) be made in a manner that satisfies applicable
legal, tax (including, without limitation and as applicable in the circumstances, Section 424 of the Code and Section 409A of the
Code and the regulations thereunder) and accounting (so as to not trigger any accounting adjustments to earnings) requirements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(b)&nbsp;In
the event of the proposed dissolution or liquidation of the Company, the Offering Period then in progress will terminate immediately
prior to the consummation of such proposed action, unless otherwise provided by the Committee. The Committee may, in its sole discretion,
declare that this Plan shall terminate as of a date fixed by the Committee and give each participant the right to purchase shares
of Common Stock prior to such termination. In such event, the Committee shall notify each participant in writing or electronically
prior to the new Purchase Date, that the final Offering Period has been shortened by setting an earlier Purchase Date and that
as many whole shares of Common Stock subject to the participant&rsquo;s option shall be automatically purchased on the new Purchase
Date at the applicable purchase price per share with the accumulated payroll deductions from his or her account, unless prior to
such date the participant has withdrawn from the Offering Period as provided in Section 10, and provided that such purchase shall
be subject to the limitations set forth in Sections 2 and 9.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">(c)&nbsp;In the event of
(i)&nbsp;a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation
with a wholly-owned subsidiary, a reincorporation of the Company in a different jurisdiction, or other transaction in which there
is no substantial change in the stockholders of the Company or their relative stock holdings and the options under this Plan are
assumed, converted or replaced by the successor corporation, which assumption will be binding on all participants), (ii)&nbsp;a
merger in which the Company is the surviving corporation but after which the stockholders of the Company immediately prior to such
merger (other than any stockholder that merges, or which owns or controls another corporation that merges, with the Company in
such merger) cease to own their shares or other equity interest in the Company, (iii)&nbsp;the sale of all or substantially all
of the assets of the Company or (iv)&nbsp;the acquisition, sale, or transfer of more than 50% of the outstanding shares of the
Company by tender offer or similar transaction, then the Offering Period with respect to which the outstanding options relate shall
be shortened by setting a new Purchase Date (and such new Purchase Date shall occur within ten (10) business days prior to the
proposed corporate transaction), and all the amounts credited to the participants&rsquo; accounts shall be used to automatically
purchase on the new Purchase Date as many whole shares of Common Stock as possible at the purchase price per share, and provided
that such purchase shall be subject to the limitations set forth in Sections 2 and 9.</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">(d)&nbsp;The Committee
may, if it so determines in the exercise of its sole discretion, also make provision for adjusting the Reserves, in the event that
the Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of shares
of its outstanding Common Stock, or in the event of the Company being consolidated with or merged into any other corporation.</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; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>14.&nbsp;Nonassignability</B>.
Neither payroll deductions credited to a participant&rsquo;s account nor any rights with regard to the purchase (or receipt) of
shares of Common Stock under this Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by
will, the laws of descent and distribution or as provided in Section&nbsp;21 below) by the participant. Any such attempt at assignment,
transfer, pledge or other disposition shall be void and without effect, except that the Company may treat such act as an election
to withdraw from an Offering Period in accordance with Section 10.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>15.&nbsp;Reports</B>.
Individual accounts will be maintained for each participant in this Plan. Each participant shall receive as soon as practicable
after the Purchase Date a report of his or her account setting forth the total payroll deductions accumulated prior to the Purchase
Date, the number of shares of Common Stock purchased, the per share price thereof and the remaining cash balance, if any, being
refunded or carried forward to the next Offering Period. The report required by this Section 15 may be delivered in such form and
by such means, including by electronic transmission, as the Company may determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>16.&nbsp;Notice
of Disposition</B>. Each participant shall notify the Company in writing if the participant disposes of any of the shares of Common
Stock purchased in any Offering Period pursuant to this Plan if such disposition occurs prior to the expiration of the holding
periods set forth in Section 423(a) of the Code. The Company may, at any time during the holding periods, place a legend or legends
on any certificate representing shares of Common Stock acquired pursuant to this Plan requesting the Company&rsquo;s transfer agent
to notify the Company of any transfer of the shares of Common Stock. The obligation of the participant to provide such notice shall
continue notwithstanding the placement of any such legend on the certificates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>17.&nbsp;No
Rights to Continued Employment</B>. Neither this Plan nor the grant of any option hereunder shall confer any right on any employee
to remain in the employ of the Company or any Subsidiary, or restrict the right of the Company or any Subsidiary to terminate such
employee&rsquo;s employment at any time, with or without cause.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>18.&nbsp;Equal
Rights And Privileges</B>. All eligible employees shall have equal rights and privileges with respect to this Plan so that this
Plan qualifies as an &ldquo;employee stock purchase plan&rdquo; within the meaning of Section&nbsp;423 or any successor provision
of the Code and the related regulations. Any provision of this Plan which is inconsistent with Section&nbsp;423 or any successor
provision of the Code shall, without further act or amendment by the Company, the Committee or the Board of the Company, be reformed
to comply with the requirements of Section&nbsp;423. This Section&nbsp;18 shall take precedence over all other provisions in this
Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>19.&nbsp;Notices</B>.
All notices or other communications by a participant to the Company under or in connection with this Plan shall be deemed to have
been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company
for the receipt thereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>20.&nbsp;Term;
Stockholder Approval.</B> The effective date of this Plan is January 30, 2015 (the &ldquo;<B><I>Effective Date</I></B>&rdquo;),
conditioned upon approval of this Plan by stockholders at the annual meeting of stockholders of the Company held on such date as
provided in Section 423(b)(2) of the Code and the regulations thereunder. This Plan shall continue until the earlier to occur of
(a)&nbsp;termination of this Plan by the Board (which termination may be effected by the Board at any time), (b)&nbsp;issuance
of all of the shares of Common Stock reserved for issuance under this Plan, (c)&nbsp;ten (10) years from the Effective Date, or
(d) termination of this Plan pursuant to Section 13.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>21.&nbsp;Designation
of Beneficiary.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(a)&nbsp;A
participant may file, but is not required to file,&nbsp;a designation of a beneficiary who is to receive any shares of Common Stock
and cash, if any, from the participant&rsquo;s account under this Plan in the event such participant&rsquo;s death occurs after
a Purchase Date but prior to delivery to the participant of such shares of Common Stock and cash. In addition, a participant may
file&nbsp;a designation of a beneficiary who is to receive any cash from the participant&rsquo;s account under this Plan in the
event such participant&rsquo;s death occurs prior to a Purchase Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(b)&nbsp;Such
designation of beneficiary may be changed by the participant at any time by notice. In the event of the death of a participant
and in the absence of a beneficiary validly designated under this Plan who is living at the time of such participant&rsquo;s death,
the Company shall deliver such shares of Common Stock and/or cash to the executor or administrator of the estate of the participant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(c)
All beneficiary designations shall be in such form and manner as the Committee may designate from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>22.&nbsp;Conditions
Upon Issuance of Shares; Limitation on Sale of Shares</B>. Shares shall not be issued with respect to an option unless the purchase
of the shares of Common Stock subject to such option and the issuance and delivery of such shares of Common Stock pursuant thereto
shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933,
as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange or automated quotation system upon which the shares of Common Stock may then be listed, and shall be further
subject to the approval of counsel for the Company with respect to such compliance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>23.&nbsp;Applicable
Law</B>. This Plan shall be governed by, and construed in accordance with, the substantive laws of the State of Florida without
giving effect to the conflict of law principles thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>24.&nbsp;Amendment
or Termination of this Plan</B>. The Board may at any time amend, suspend or terminate this Plan or any part thereof, except that
any such termination cannot adversely affect any then outstanding options granted under this Plan other than to advance the final
Purchase Date under any Offering Period or to comply with any applicable law, regulation or rule, nor may any amendment adversely
affect any then outstanding options granted under this Plan unless necessary or desirable to comply with any applicable law, regulation
or rule, nor may any amendment be made without approval of the stockholders of the Company as obtained in accordance with Section
423(b)(2) of the Code and the regulations thereunder if such approval is required by applicable laws or without regard to whether
approval is so required, if such amendment would:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(a)&nbsp;increase
the number of shares of Common Stock available for issuance under this Plan; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">(b)&nbsp;expand
the class of employees eligible for participation in this Plan; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0.5in">(c)&nbsp;extend the
term of this Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0">Notwithstanding
the foregoing, the Board may make such amendments to this Plan (including, without limitation, termination of this Plan and any
Offering Period) as the Board determines to be advisable, if the continuation of this Plan or any Offering Period would result
in financial accounting treatment, in accordance with Generally Accepted Accounting Principles in the United States of America
(US GAAP), for this Plan that is different from the US GAAP financial accounting treatment in effect on the date this Plan is adopted
by the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 0.5in; margin-right: 0; margin-left: 0"><B>25.
Section 409A of the Code</B>. This Plan is designed to qualify as an employee stock purchase plan under Section 423 of the Code
(although the Company makes no undertaking or representation to achieve or maintain such qualification), and if this Plan so qualifies,
this Plan is exempt from the application of Section 409A of the Code and any ambiguities herein will be interpreted to so be exempt
from Section 409A of the Code. In furtherance of the foregoing and notwithstanding any provision in this Plan to the contrary,
if the Committee determines that an option granted under this Plan may be subject to Section 409A of the Code or that any provision
in this Plan would cause an option under this Plan to be subject to Section 409A of the Code, the Committee may amend the terms
of this Plan and/or of an outstanding option granted under this Plan, or take such other action the Committee determines is necessary
or appropriate, in each case, without the participant&rsquo;s consent, to exempt any outstanding option or future option that may
be granted under this Plan from or to allow any such options to comply with Section 409A of the Code, but only to the extent any
such amendments or action by the Committee would not violate Section 409A of the Code. Notwithstanding the foregoing, the Company
shall have no liability to a participant or any other person if the option to purchase shares of Common Stock under this Plan that
is intended to be exempt from or compliant with Section 409A of the Code is not so exempt or compliant or for any action taken
by the Committee with respect thereto. The Company makes no representation that the option to purchase shares of Common Stock under
this Plan is compliant with Section 409A of the Code.</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">Adopted by the Board of Directors of LightPath
Technologies, Inc. on December 3, 2014</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Employee Stock Purchase Plan (&ldquo;<I>ESPP</I>&rdquo;)</B></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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Enrollment/Change Form</B></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">Section 1:<BR>
<B>Actions</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 50%; border: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt"><b>Check Desired Action:</b></font></td>
    <TD STYLE="width: 50%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt"><b>and Complete Sections:</b></font></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt">Enroll in the ESPP</font></td>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt">2 + 3 + 4 + 7</font></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt">Change Contribution Percentage</font></td>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt">2 + 4 + 7</font></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt">Discontinue Contributions</font></td>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt">2 + 5 + 7</font></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt">Complete Withdrawal</font></td>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 10pt">2 + 6 + 7</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">Section 2:<BR>
<B>Personal Data</B></P>

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







<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 100%; color: gray">

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

<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 100%; color: gray">

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

<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 100%; color: gray">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><BR>
Social Security No.:</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-indent: 0.5in">&nbsp;</P>

<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 100%; color: gray">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><BR>
Section 3:<BR>
<B>Enroll</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><BR>
I hereby elect to participate in the ESPP, effective at the beginning of the next Offering Period. I elect to purchase shares of
the Common Stock of LightPath Technologies, Inc. (the &ldquo;<B><I>Company</I></B>&rdquo;) pursuant to this Enrollment/Change Form
and the ESPP. I understand that the stock certificate(s) for the shares purchased on my behalf will be issued in my name delivered
to me.&nbsp;I hereby agree to notify the Company in writing within thirty (30) days after the date of any disposition of my shares
purchased under the ESPP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><BR>
My participation will continue as long as I remain eligible pursuant to the ESPP, unless I withdraw from the ESPP by filing a new
Enrollment/Change Form with the Company.</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: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company may, in its discretion, decide
to deliver any documents related to current or future participation in the ESPP by electronic means. I hereby consent to receive
such documents by electronic delivery and agree to participate in the ESPP through an on-line or electronic system established
or maintained by the Company or another third party designated by the Company.</P>

<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 100%; color: gray">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Section 4:<BR>
<B>Elect Contribution Percentage</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><BR>
I hereby authorize payroll deductions (a &ldquo;contribution&rdquo;) from each paycheck in the amount of ______% of my compensation
(as defined in the ESPP) on each payday in accordance with the ESPP for as long as I continue to participate in the ESPP. I understand
that any accumulated payroll deductions will be applied to automatically exercise my option and purchase shares of the Company&rsquo;s
Common Stock pursuant to the ESPP. <B>The percentage must be a multiple of 1%, up to a maximum of 15%.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><BR>
<B>Note: </B>I understand that my contribution percentage above may be changed only once within an offering period to either zero
(Section 5 below) or to completely withdraw (Section 6 below). Any change will become effective as soon as reasonably practicable
after the form is received by the Company.</P>

<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 100%; color: gray">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><BR>
Section 5:<BR>
<B>Discontinue Contributions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><BR>
I hereby elect to stop my contributions under the ESPP (a reduction to zero), effective beginning with the next payroll period
after the Company&rsquo;s receipt of the request. The contributions that I have made to date during the offering period then in
progress should be applied as follows (initial as appropriate):</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">Purchase shares of the Company&rsquo;s Common
Stock at the end of the period. _______</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">Refund all contributions to me in cash, without
interest. _______</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"><B>I understand that I cannot resume contributions
unless I file a new Enrollment / Change Form for a subsequent offering period.</B></P>

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

<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 100%; color: gray">

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Complete Withdrawal</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">I hereby elect to completely withdraw from
the offering period, effective as soon as reasonably practicable after this form is received by the Company. I understand that
my option for the offering period then in progress will automatically be terminated, and all my accumulated contributions under
the ESPP will be refunded to me in cash, without interest, and my participation in the ESPP will terminate.</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: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>I understand that I cannot resume participation
in the ESPP during the same offering period, but I may participate in any offering period under the Plan which starts on a date
after my withdrawal by filing a new Enrollment/Change Form.</B></P>

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

<HR SIZE="2" NOSHADE ALIGN="CENTER" STYLE="width: 100%; color: gray">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><BR>
Section 7:<BR>
<B>Acknowledgment and Signature</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><BR>
I acknowledge that I have received a copy of the ESPP. I have read the ESPP and this Enrollment/Change Form and hereby agree to
be bound by the terms of the ESPP. I understand that my participation in the ESPP will remain in effect throughout successive offering
periods unless affirmatively terminated by me. I further understand that the effectiveness of this Enrollment/Change Form is dependent
upon my eligibility to participate in the ESPP.<FONT STYLE="font-size: 10pt">&nbsp;</FONT></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">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 22%; font: 10pt Times New Roman, Times, Serif">
        <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>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P></td>
    <TD STYLE="width: 12%; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Signature:</font></td>
    <TD STYLE="width: 3%; font: 10pt Times New Roman, Times, Serif">&nbsp;</td>
    <TD STYLE="width: 29%; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.9pt">&nbsp;</P>
<hr size="2" noshade align="center" style="width: 100%; color: gray"></td>
    <TD STYLE="width: 3%; font: 10pt Times New Roman, Times, Serif">&nbsp;</td>
    <TD STYLE="width: 6%; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 10pt">Date:</font></td>
    <TD STYLE="width: 3%; font: 10pt Times New Roman, Times, Serif">&nbsp;</td>
    <TD STYLE="width: 22%; font: 10pt Times New Roman, Times, Serif">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>
<hr size="2" noshade align="center" style="width: 100%; color: gray"></td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</td>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</td>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</td>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</td>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</td>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</td>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</td>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</td></tr>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD COLSPAN="8" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><hr size="2" noshade align="center" style="width: 100%; color: gray"><font style="font-size: 10pt"> </font></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"></P>

<P STYLE="font: 10pt/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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>Appendix B</U></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; text-align: center"><B>PROPOSED AMENDMENT NO. 6 TO THE</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>January 29, 2014</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Amended and Restated
LightPath Technologies, Inc. Omnibus Incentive Plan (the &ldquo;Plan&rdquo;) is hereby amended by increasing the &ldquo;Plan Maximum,&rdquo;
as defined in Section 6 of the Plan, from 2,715,625 shares of Class A Common Stock to 3,915,625 shares of Class A Common Stock,
subject to adjustment as provided in Section 15 of the Plan. This Amendment No. 6 to the Amended and Restated LightPath Technologies,
Inc. Omnibus Incentive Plan was adopted by the Board of Directors on October 30, 2014, and approved by the stockholders of LightPath
Technologies, Inc. on and effective as of January 29, 2015.</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: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>Appendix C</U></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>CERTIFICATE OF AMENDMENT TO THE</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 2.5in; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">LightPath Technologies,
Inc., a Delaware corporation, (the &ldquo;Company&rdquo;) hereby certifies that:</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">1.&#9;The Certificate of
Incorporation is amended by replacing paragraph (a) of Article FOURTEENTH in its entirety with the following:</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">&ldquo;(a) The number
of directors shall be fixed from time to time by vote of a majority of the entire Board; provided, however, that the number of
directors shall not be reduced as to shorten the term of any director at the time in office and in no event shall there be less
than three directors.&rdquo;</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">2.&#9;The Certificate of
Amendment has been duly adopted in accordance with Section 242 of the General Corporation Law of the State of Delaware (the &ldquo;DGCL&rdquo;),
including approval by the stockholders of the corporation upon notice in accordance with Section 222 of the DGCL, at the annual
meeting of stockholders of the Company held on January 29, 2015.</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">IN WITNESS WHEREOF, the
Company has caused this certificate to be signed by its duly authorized officer this ___ day of January, 2015.</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"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">LIGHTPATH TECHNOLOGIES INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify; width: 50%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify; width: 48%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify; border-bottom: Black 1pt solid"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">J. James Gaynor, President and Chief Executive Officer</FONT></TD></TR>
</TABLE>


<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: 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>

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    <!-- Field: /Page -->

<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: 0 0 0 2.5in; text-indent: 0.5in"><B>&nbsp;</B></P>

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

<P STYLE="font: 7.5pt 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 29, 2015</P>

<P STYLE="font: 7.5pt 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 FOR Items
1, 2, 3, 4 and 5. </I></B></P>

<P STYLE="font: 7.5pt 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 29, 2015, 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></DIV>

<DIV>&nbsp;</DIV>

<DIV><TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">(1)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">&nbsp;</P>
        <P STYLE="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">&nbsp;</P></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;1:</U></B> To approve
        the election of a Class III Director. The nominee is:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0; text-indent: 0.5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withhold</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Louis Leeburg&nbsp;&nbsp;&nbsp; <FONT STYLE="font-family: Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT STYLE="font-family: Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">(2)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">(3)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">(4)</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B><U>Item No.&nbsp;2:</U></B> To approve
        the adoption of the 2014 Employee Stock Purchase Plan, as successor to the 2004 Employee Stock Purchase Plan.</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">&#168;</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">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;AGAINST <FONT STYLE="font-family: Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;ABSTAIN</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B><U>Item No. 3:</U></B> To approve the amendment
        to the Amended and Restated Omnibus Incentive Plan to increase the shares available for future grants under the plan by 1,200,000
        shares.</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">&#168;</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;<FONT STYLE="font-family: Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;AGAINST <FONT STYLE="font-family: Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;ABSTAIN</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B><U>Item No. 4:</U> </B>To approve the amendment
        to the Certificate of Incorporation to remove the limitation on the size of our Board of Directors.</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">&#168;</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">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;AGAINST <FONT STYLE="font-family: Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;ABSTAIN</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">(5)</FONT></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><B><U>Item No.&nbsp;5:</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">&#168;</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">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;AGAINST <FONT STYLE="font-family: Wingdings">&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;ABSTAIN</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><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: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Wingdings">&#168;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">If you plan to attend the Annual Meeting, please check here </FONT></TD></TR>
</TABLE>
<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&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>FOR</B> ALL ITEMS UNDER ITEM NOS.
1, 2, 3, 4 and 5.</P>

<P STYLE="font: 7.5pt 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;__, 2014 and a copy
of the Company&rsquo;s Annual Report on Form 10-K.</P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">___________________________________________&nbsp;____</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><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: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">___________________________________________&nbsp;____</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><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: 7.5pt 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: 7.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">PLEASE DATE,
SIGN AND RETURN THIS PROXY PROMPTLY USING</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt">THE ENCLOSED
POSTAGE PAID ENVELOPE THANK YOU</FONT></P>

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

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


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