<SEC-DOCUMENT>0001019687-13-002462.txt : 20130626
<SEC-HEADER>0001019687-13-002462.hdr.sgml : 20130626
<ACCEPTANCE-DATETIME>20130626150418
ACCESSION NUMBER:		0001019687-13-002462
CONFORMED SUBMISSION TYPE:	PRE 14C
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20130630
FILED AS OF DATE:		20130626
DATE AS OF CHANGE:		20130626

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Stratus Media Group, Inc
		CENTRAL INDEX KEY:			0001053691
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-AMUSEMENT & RECREATION SERVICES [7900]
		IRS NUMBER:				300645032
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PRE 14C
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24477
		FILM NUMBER:		13934275

	BUSINESS ADDRESS:	
		STREET 1:		3 EAST DE LA GUERRA ST.
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93101
		BUSINESS PHONE:		805-884-9977

	MAIL ADDRESS:	
		STREET 1:		3 EAST DE LA GUERRA ST.
		CITY:			SANTA BARBARA
		STATE:			CA
		ZIP:			93101

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FERIS INTERNATIONAL, INC.
		DATE OF NAME CHANGE:	20080228

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TITAN MOTORCYCLE CO OF AMERICA INC
		DATE OF NAME CHANGE:	19980615
</SEC-HEADER>
<DOCUMENT>
<TYPE>PRE 14C
<SEQUENCE>1
<FILENAME>stratus_pre14c.htm
<DESCRIPTION>PRE 14C
<TEXT>
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<P STYLE="margin: 0"></P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Information Statement Pursuant to Section
14 of<BR>
the Securities Exchange Act of 1934</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Filed by the Registrant </FONT>[X]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt">Filed by a Party other than the
Registrant </FONT>[_]</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[X]<FONT STYLE="font-size: 10pt"> Preliminary Information Statement</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.2in; text-indent: -0.2in">[_]<FONT STYLE="font-size: 10pt">
<B>Confidential, for Use of the Commission Only (as permitted by Rule</B> <B>14c-5(d)(2))</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.2in; text-indent: -0.2in">[_]<FONT STYLE="font-size: 10pt">
Definitive Information Statement</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[_]<FONT STYLE="font-size: 10pt"> Definitive Additional Materials</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.2in">(Name of Registrant
as Specified in its Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.2in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.2in">(Name of Person(s) Filing
Information Statement, if other than the Registrant)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.2in">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[X]<FONT STYLE="font-size: 10pt"> No fee required.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.2in; text-indent: -0.2in">[_]<FONT STYLE="font-size: 10pt">
Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.2in; text-indent: -0.2in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 13.5pt"></TD><TD STYLE="width: 18pt">(1)</TD><TD>Title of each class of securities to which transaction applies:</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 13.5pt"></TD><TD STYLE="width: 18pt">(2)</TD><TD>Aggregate number of securities to which transaction applies:</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 13.5pt"></TD><TD STYLE="width: 18pt">(3)</TD><TD>Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on
which the filing fee is calculated and state how it was determined):</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 13.5pt"></TD><TD STYLE="width: 18pt">(4)</TD><TD>Proposed maximum aggregate value of transaction:</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 13.5pt"></TD><TD STYLE="width: 18pt">(5)</TD><TD>Total fee paid:</TD></TR></TABLE>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[_]<FONT STYLE="font-size: 10pt"> Fee paid previously with preliminary
materials.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-indent: -9pt">[_]<FONT STYLE="font-size: 10pt">
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></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 13.5pt"></TD><TD STYLE="width: 18pt">(1)</TD><TD>Amount Previously Paid:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 31.5pt; text-indent: -0.25in">&nbsp;</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 13.5pt"></TD><TD STYLE="width: 18pt">(2)</TD><TD>Form, Schedule or Registration Statement No.:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 31.5pt; text-indent: -0.25in">&nbsp;</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 13.5pt"></TD><TD STYLE="width: 18pt">(3)</TD><TD>Filing Party:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 31.5pt; text-indent: -0.25in">&nbsp;</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 13.5pt"></TD><TD STYLE="width: 18pt">(4)</TD><TD>Date Filed:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 31.5pt; text-indent: -0.25in">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>NOTICE OF ACTION TO BE TAKEN WITHOUT A MEETING</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">July __, 2013</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The purpose of this
letter and the enclosed Information Statement is to inform you that shareholders holding a majority of the voting power of the
common stock of Stratus Media Group, Inc. (the &ldquo;Company&rdquo;) have executed a written consent in lieu of a meeting to approve
an amendment to our articles of incorporation to increase the number of authorized shares of common stock we may issue from 500,000,000
shares to 1,000,000,000 shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our board of directors
has authorized the amendment and shareholders holding a majority of the voting power of our common stock have executed a written
consent approving the amendment. The consent we have received constitutes the only shareholder approval required under Nevada corporate
law and our articles of incorporation and bylaws, as presently in effect. Pursuant to Rule 14c-2 of the Securities Exchange Act
of 1934, as amended, this amendment will not become effective before July __, 2013, which is approximately 21 calendar days after
July __, 2013, the date we first mailed the Information Statement to our shareholders.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">WE ARE NOT ASKING YOU FOR A PROXY AND<BR>
YOU ARE REQUESTED NOT TO SEND US A PROXY.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because the written
consent of holders of a majority of the voting power of our common stock approving the amendment satisfies all applicable shareholder
voting requirements, we are not asking you for a Proxy; please do not send us one. We are furnishing this Information Statement
to you solely to inform you of the approval of the amendment by the holders of the voting power of our common stock. No action
is required by you.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The Information Statement is for information
purposes only &mdash; Please read it carefully.</P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 5.4pt; font-size: 10pt">July __, 2013</TD>
    <TD STYLE="width: 50%; padding-right: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">By Order of the board of directors,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>/s/ JEROLD RUBINSTEIN&#9;</U></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.6pt">Jerold Rubinstein</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.6pt">Chief Executive Officer and Chairman of the Board</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 18.7pt">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">STRATUS MEDIA GROUP, INC.<BR>
1800 Century Park East, 6<SUP>th</SUP> Floor<BR>
Los Angeles, California 90067</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">INFORMATION STATEMENT<BR>
July __, 2013</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">WE ARE NOT ASKING YOU FOR A PROXY AND<BR>
YOU ARE REQUESTED NOT TO SEND US A PROXY.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Information Statement
is being mailed on or about July __, 2013, to the shareholders of record of Stratus Media Group, Inc. (the &ldquo;Company&rdquo;),
at the close of business on June 28, 2013 (the &ldquo;Record Date&rdquo;). This Information Statement is being sent to you for
information purposes only. No action is requested or required on your part.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Information Statement
is being furnished to you to inform you that holders of shares representing a majority of the voting power of shares of our securities
have adopted, by written consent, resolutions authorizing us to take the following action (the &ldquo;Proposal&rdquo;):</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><U>Increase in Authorized
Shares</U>. To approve and adopt an amendment to the Company&rsquo;s Articles of Incorporation to increase the number of the authorized
shares of the Company&rsquo;s common stock from 500,000,000 to 1,000,000,000.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will bear the expenses
relating to this Information Statement, including expenses in connection with preparing and mailing this Information Statement
and all documents that now accompany or may in the future supplement it. We have asked brokers and other custodians, nominees and
fiduciaries to forward this Information Statement to the beneficial owners of our common stock held of record by such persons and
will reimburse such persons for out-of-pocket expenses incurred in forwarding such material.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Only one Information
Statement is being delivered to multiple shareholders sharing an address, unless we have received contrary instructions from one
or more of the shareholders. We will undertake to deliver promptly upon written or oral request a separate copy of the Information
Statement to a shareholder at a shared address to which a single copy of the Information Statement was delivered. You may make
a written or oral request by sending a written notification to our principal executive offices stating your name, your shared address,
and the address to which we should direct the additional copy of this Information Statement or by calling our principal executive
offices at 310.526.8700. If multiple shareholders sharing an address have received one copy of this Information Statement and would
prefer us to mail each shareholder a separate copy of future mailings, you may send notification to or call our principal executive
offices. Additionally, if current shareholders with a shared address received multiple copies of this Information Statement and
would prefer us to mail one copy of future mailings to shareholders at the shared address, notification of that request may also
be made by mail or telephone call to our principal executive offices.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Information Statement
and other reports that we file with the SEC contain forward-looking statements about our business containing the words &ldquo;believes,&rdquo;
&ldquo;anticipates,&rdquo; &ldquo;expects&rdquo; and words of similar import. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our actual results or performance to be materially different from
the results or performance anticipated or implied by such forward-looking statements. Given these uncertainties, shareholders are
cautioned not to place undue reliance on forward-looking statements. Except as specified in SEC regulations, we have no duty to
publicly release information that updates the forward-looking statements contained in this Information Statement.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under Nevada law and
our articles of incorporation and bylaws, no shareholder has any right to dissent to the Proposal, and no shareholder is entitled
to appraisal of or payment for their shares of our stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of the Record Date,
our authorized capitalization consisted of 500,000,000 shares of common stock (the &ldquo;Common Stock&rdquo;), of which 373,616,252<B>
</B>shares were issued and outstanding and 5,000,000 shares of Preferred Stock of which no shares are outstanding.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each share of Common
Stock entitles its holder to one vote on each matter submitted to the shareholders.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The approval of the
Proposal requires the consent of the holders of a majority of the voting power of the Common Stock entitled to vote. Section 78.320
of the Nevada Revised Statutes generally provides that any action required to be taken at any annual or special meeting of stockholders
of a corporation, or any action which may be taken at any annual or special meeting of such stockholders, may be taken without
a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall
be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize
or take such action at a meeting at which all shares entitled to vote thereon were present and voted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In order to eliminate
the costs and management time involved in soliciting and obtaining proxies to approve the Actions and in order to effectuate the
Actions as early as possible in order to accomplish the purposes of the Company as hereafter described, the Board of Directors
of the Company voted to utilize, and did in fact obtain, the written consent of the holders of a majority of the voting power of
the Company. Approval of the Proposal was obtained as of June 25, 2013 by written consent of the holders of shares representing
a majority of the voting power.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">No consideration was
paid for the consent of any Consenting Shareholder.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">INTERESTS OF CERTAIN PERSONS IN THE
PROPOSAL</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except as otherwise
described, no director, executive officer, associate of any director or executive officer, or any other person has any substantial
interest, direct or indirect, by security holdings or otherwise, in the Proposal to which is not shared by all other holders of
the Company&rsquo;s Common Stock. See &ldquo;Stockholdings of Certain Beneficial Owners, Directors and Management.&rdquo;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following description
of our capital stock summarizes the material terms and provisions of the indicated securities. For the complete terms of our Common
Stock please refer to our articles of incorporation, and bylaws that we have filed with the SEC.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are authorized to
issue 500,000,000 shares of Common Stock, $0.001 par value per share, and 5,000,000 shares of Preferred Stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Voting. Each holder
of Common Stock shall have one vote in respect of each share of stock held of record on the books of the corporation for the election
of directors and on all matters submitted to a vote of our shareholders.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Dividends. The holders
of shares of Common Stock shall be entitled to receive, when and if declared by the board of directors, out of our assets which
are by law available for dividends, dividends payable in cash, property or shares of capital stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Dissolution, Liquidation
or Winding Up. In the event of any dissolution, liquidation or winding up of our affairs, holders of Common Stock shall be entitled,
unless otherwise provided by law or our articles of incorporation, including any certificate of designations for a series of preferred
stock, to receive all of our remaining assets of whatever kind available for distribution to shareholders ratably in proportion
to the number of shares of Common Stock held by them respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Other Rights and Restrictions.
Holders of our Common Stock do not have preemptive rights, and they have no right to convert their Common Stock into any other
securities. Our Common Stock is not subject to redemption by us. The rights, preferences and privileges of common shareholders
are subject to the rights of the shareholders of any series of preferred stock that are issued and outstanding or that we may issue
in the future.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The preferred stock
may be issued in one or more series and our Board of Directors, without further approval from our shareholders, is authorized to
fix the dividend rights and terms, conversion rights, voting rights, redemption rights, liquidation preferences and other rights
and restrictions relating to any series. Issuances of preferred stock, while providing flexibility in connection with possible
financings, acquisitions and other corporate purposes, could, among other things, adversely affect the voting power of the holders
of our common stock.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">APPROVAL OF INCREASE IN SHARES OF COMMON
STOCK</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under our Articles
of Incorporation as currently in effect, there are 500,000,000&nbsp;shares of common stock. As of June&nbsp;28, 2013, 373,616,252
shares of common stock were issued and outstanding. As of that date, there were approximately 42,358,768 shares of our common stock
reserved for issuance upon the exercise of outstanding warrants and options.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Board of Directors
and shareholders holding a majority of the Company&rsquo;s voting power approved an amendment to our Articles of Incorporation,
to increase the shares of common stock that are authorized for issuance by 500,000,000 shares, bringing the total number of common
shares authorized for issuance to 1,000,000,000.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The purpose of the
proposed increase in the number of authorized shares of common stock is to make additional shares available for issuance by the
Company as the Board of Directors deems appropriate or necessary. Based upon our currently available funds, we will have to obtain
additional financing in order to fund our ongoing and future business and operations and meet our working capital needs. We currently
anticipate that we will seek to raise additional capital through the sale of additional shares of common stock or securities convertible
into common stock. Unless our Articles of Incorporation is amended to increase the number of shares of common stock we are authorized
to sell, we will not have sufficient authorized shares of common stock available for these purposes. Furthermore, additional authorized
shares may be needed in the future in connection with possible acquisitions of other companies, businesses or assets, or in connection
with establishing strategic partnerships or other business relationships, or for other corporate purposes. Also, we need additional
authorized shares to cover shares issuable upon the exercise or conversion of outstanding options and warrants and in connection
with future issuance of such shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Board of Directors
does not intend to solicit further shareholder approval prior to the issuance of any authorized shares of common stock, except
as may be required by applicable law. Holders of our common stock as such have no statutory preemptive or subscription rights with
respect to future issuances of common stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The increase in the
authorized number of shares of common stock will not have any immediate effect on the rights of existing shareholders. Any subsequent
issuance of such shares could have the effect of delaying or preventing a change-in-control of the Company. Any issuance of additional
shares of common stock also could have the effect of diluting any future earnings per share and book value per share of the outstanding
shares of our common stock, and such additional shares could be used to dilute the stock ownership or voting rights of a person
seeking to obtain control of the Company. We have no present agreement or commitment, however, to issue any additional shares of
common stock other than pursuant to the exercise of outstanding warrants and options.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">STOCKHOLDINGS OF CERTAIN<BR>
BENEFICIAL OWNERS, DIRECTORS AND EXECUTIVE OFFICERS</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
sets forth, as of June&nbsp;28, 2013, the number and percentage of shares of Common Stock beneficially owned, directly or indirectly,
by each of our directors, and executive officers, beneficial owners known by the Company of more than five percent of the outstanding
shares of our Common Stock and by our directors and executive officers as a group. Beneficial ownership is determined in accordance
with the Rule 13d-3(a) of the Securities Exchange Act of 1934, as amended, and does not necessarily indicate ownership for any
other purpose, and generally includes voting or investment power with respect to the shares and shares which such person has the
right to acquire within 60 days of June&nbsp;28, 2013.</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; width: 50%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Beneficial Owner (a)</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; width: 8%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Title of Class</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>of Stock</B></P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; width: 15%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Amount and Nature</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>of</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Beneficial Ownership (b)</B></P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; width: 6%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; width: 13%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Percent of Class (c)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>5% Stockholders:</I></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-left: 0.1in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">River Charitable Remainder Unitrust, West Charitable Remainder Unitrust, Liberty Charitable Remainder Trust, Isaac Blech</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Common</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">173,095,238</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(d)</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">46.3%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-left: 0.1in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Paul Feller</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Common</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">24,255,000</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(e)</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right">6.5<FONT STYLE="font: 10pt Times New Roman, Times, Serif">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><I>Directors and Executive Officers:</I></FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-left: 0.1in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Jerold Rubinstein, Chief Executive Officer &#9;and Chairman of the Board of Directors</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Common</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">27,975,000</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(f)</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">7.5%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-left: 0.1in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Randall Cross, Director</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Common</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">408,333</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(g)</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">0.1%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-left: 0.1in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Michael Dunleavy, Sr., Director</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Common</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">386,667</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(h)</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">0.1%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-left: 0.1in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Glenn Golenberg, Director and chairman of &#9;the Compensation Committee</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Common</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">765,556</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(i)</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">0.2%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-left: 0.1in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Seymour Siegel, Director and Chairman of &#9;the Audit Committee</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Common</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">137,500</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(j)</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">0.0%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-left: 0.1in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">John Schneider, Director</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Common</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">587,500</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(k)</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">0.0%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-left: 0.1in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">John Moynahan, Chief Financial Officer</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Common</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1,860,000</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(l)</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">0.5%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-left: 0.1in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Timothy Boris, General Counsel</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Common</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">6,300,000</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(m)</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.7%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-left: 0.1in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All Current Directors and Executive &#9;Officers as a Group (8 Persons)</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">38,420,556</FONT></TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">10.2%</FONT></TD></TR>
</TABLE>


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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center; width: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(a)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The address for each Beneficial Owner is c/o Stratus Media Group, Inc., 1800 Century Park East, 6<SUP>th</SUP> Floor, Los Angeles, CA 90067</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(b)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The persons named in this table have sole voting and investment power with respect to all shares of common stock shown as beneficially owned by them, subject to applicable community property laws.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(c)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Based on 373,616,252 shares of outstanding as of June 28, 2013.</FONT></TD></TR>
</TABLE>

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

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

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center; width: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(d)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">This amount consists of (i) 71,428,571 shares of Common Stock held by Liberty Charitable Remainder Unitrust; (ii) 71,428,571 shares of Common Stock held by West Charitable Remainder Unitrust; (iii) 11,904,762 shares of Common Stock held by River Charitable Remainder Unitrust; and (iv) 18,333,334 shares of Common Stock held by Isaac Blech.&nbsp;&nbsp;Mr. Blech is the sole trustee of each of the Trusts and has the sole voting and dispositive power of each of the Trusts.&nbsp;&nbsp;Mr. Blech disclaims beneficial ownership of the Common Stock owned by each of the Trusts except to the extent of his pecuniary interest therein.&nbsp;&nbsp;This amount does not include 11,904,762 shares held by Miriam Wimpfheimer Blech, Mr. Blech&rsquo;s wife.&nbsp;&nbsp;Mr. Blech disclaims beneficial ownership of the shares owned by Ms. Blech and Ms. Blech disclaims beneficial ownership of the shares owned by Mr. Blech and the Trusts.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(e)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Includes 24,225,000 shares held directly and 2,161,341 shares to be issued for conversion of amounts owed to Mr. Feller related to 2008 and 2009.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(f)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Includes 675,000 vested shares of a restricted stock grant related to board service; 2,300,000 vested shares of a stock option granted in connection with employment, and 25,000,000 shares of a stock option grant on March 27, 2013 that vested immediately upon issuance.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(g)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Includes vested shares of a restricted stock grant related to board service prior to July 1, 2011 and vested shares of a restricted stock grant related to board service after July 1, 2011.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(h)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Includes vested shares of a restricted stock grant related to board service prior to July 1, 2011 and vested shares related to board service after July 1, 2011.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(i)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Includes vested shares of a restricted stock grant related to board service prior to July 1, 2011 and vested shares of a restricted stock grant of 900,000 shares related to board service after July 1, 2011.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(j)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Includes vested shares of a stock option of 450,000 shares related to board service after August 20, 2012.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(k)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Represents vested shares of a restricted stock grant related to advisory board service prior to August 20, 2012 and the vested shares of a restricted stock grant related to board service after August 20, 2012.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(l)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consists of 1,560,000 vested options and restricted stock of 300,000 granted in connection with an employment agreement.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-top: 2pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(m)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Includes 200,000 vested options related to an employment agreement, 100,000 vested options made August 20, 2012 and 6,000,000 shares of a stock option grant on March 27, 2013 that vested immediately upon issuance.</FONT></TD></TR>
</TABLE>


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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of the date of this Information Statement,
no proposals have been received by the Company.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are subject to the
information and reporting requirements of the Securities Exchange Act of 1934, as amended, and in accordance therewith, we file
periodic reports, documents and other information with the SEC relating to our business, financial statements and other matters.
Such reports and other information may be inspected and are available for copying at the offices of the SEC, 100 F Street, N.E.,
Washington, D.C. 20549 or may be accessed at www.sec.gov. Information regarding the operation of the public reference rooms may
be obtained by calling the SEC at 1-800-SEC-0330.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will provide, upon
request and without charge, to each shareholder receiving this Information Statement a copy of our Annual Report on Form 10-K for
the fiscal year ended December&nbsp;31, 2012 and a copy of our Quarterly Report on Form 10-Q for the three months ended March&nbsp;31,
2013, including the financial statements, as filed with the SEC. You are encouraged to review the Annual Report, the Quarterly
Report and any subsequent information we filed or will file with the SEC and other publicly available information.</P>

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

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 5.4pt">July __, 2013</TD>
    <TD STYLE="width: 50%; padding-right: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">By Order of the board of directors,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>/s/ JEROLD RUBINSTEIN&#9;</U></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.6pt">Jerold Rubinstein</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.6pt">Chief Executive Officer and Chairman of the Board</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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



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