EXCHANGE OF PREFERRED STOCK FOR COMMON STOCK AND CASH

12 Months Ended

Dec. 31, 2013

EXCHANGE OF PREFERRED STOCK FOR COMMON STOCK AND CASH

EXCHANGE OF PREFERRED STOCK FOR COMMON STOCK AND CASH

10.

EXCHANGE OF PREFERRED STOCK FOR COMMON STOCK AND CASH

On September 12, 2011, the Company commenced the 2011 Exchange Offer and also engaged in private purchases with three Preferred Stockholders. As of December 31, 2011, Preferred Stockholders had tendered a total of 1,277,464 shares of Preferred Stock. A total of $1,357,275 was paid and 1,277,464 shares of Common Stock were issued as consideration to these Preferred Stockholders. These Preferred Stockholders agreed to waive all unpaid dividends in arrears associated with their tendered Preferred Stock, which resulted in a waiver of a total of $3,592,659 in unpaid dividends in arrears.

The 2011 Exchange Offer and private sales are summarized in the table below.

	Number of Preferred Stock Shares Tendered by Preferred Stockholders	Cash Outlay by Company		Number of Common Stock Shares Tendered by Company	Accrued Dividends Eliminated		Amount of Annual Dividend Reduction
Series I Class B Stock	40,500	$	60,750	40,500	$	—	$	20,250
Series II Class B Stock	41,000	123,000		41,000	—		41,000
Series IV Class B Stock	10,000	35,000		10,000	114,575		10,000
Series V Class B Stock	1,185,964	1,138,525		1,185,964	3,478,084		379,508
Total Class B Stock	1,277,464	$	1,357,275	1,277,464	$	3,592,659	$	450,758