<SEC-DOCUMENT>0000944075-13-000019.txt : 20130415
<SEC-HEADER>0000944075-13-000019.hdr.sgml : 20130415
<ACCEPTANCE-DATETIME>20130415154317
ACCESSION NUMBER:		0000944075-13-000019
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20130605
FILED AS OF DATE:		20130415
DATE AS OF CHANGE:		20130415
EFFECTIVENESS DATE:		20130415

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOCKET MOBILE, INC.
		CENTRAL INDEX KEY:			0000944075
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPUTERS [3571]
		IRS NUMBER:				943155066
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25904
		FILM NUMBER:		13761285

	BUSINESS ADDRESS:	
		STREET 1:		39700 EUREKA DRIVE
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560-4808
		BUSINESS PHONE:		5109333000

	MAIL ADDRESS:	
		STREET 1:		39700 EUREKA DRIVE
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560-4808

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SOCKET COMMUNICATIONS INC
		DATE OF NAME CHANGE:	19950418
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>proxy.htm
<DESCRIPTION>DEF 14A
<TEXT>
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<P ALIGN="CENTER"><font size="3" face="Times New Roman, Times, serif"><B>UNITED
  STATES<BR>
  SECURITIES AND EXCHANGE COMMISSION<BR>
  WASHINGTON, D.C. 20549</B></FONT></P>
<P ALIGN="CENTER"><FONT SIZE="3" FACE="Times New Roman, Times, serif"><B>SCHEDULE
  14A</B></FONT></P>
<P ALIGN="CENTER"><FONT SIZE="3" FACE="Times New Roman, Times, serif"><B>Proxy
  Statement Pursuant to Section 14(a) of<BR>
  the Securities Exchange Act of 1934 </B></FONT></P>
<TABLE WIDTH="80%" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="TOP">
    <TD WIDTH="100%" COLSPAN="3" HEIGHT="23"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Filed
      by the Registrant /x/ </FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="100%" COLSPAN="3"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Filed
      by a Party other than the Registrant /&nbsp;/</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="100%" COLSPAN="3" HEIGHT="22"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Check
      the appropriate box:</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">/ /</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="95%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Preliminary
      Proxy Statement</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">/&nbsp;/</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="95%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Confidential,
      for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">/x/</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="95%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Definitive
      Proxy Statement</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">/&nbsp;/</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="95%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Definitive
      Additional Materials</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">/&nbsp;/</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="95%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Soliciting
      Material Pursuant to &sect;Section&nbsp;240.14a-11(c) or Section&nbsp;&sect;240.14a-12<BR>
      </FONT> </TD>
  </TR>
</TABLE>
<FONT FACE="Times New Roman, Times, serif" SIZE="3"><!-- User-specified TAGGED TABLE -->
</FONT>
<TABLE WIDTH="100%" BORDER="0" CELLSPACING="0" CELLPADDING="0">
  <TR VALIGN="TOP">
    <TD WIDTH="100%" COLSPAN="5" ALIGN="CENTER" HEIGHT="37">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="100%" COLSPAN="5" ALIGN="CENTER" HEIGHT="46"><HR NOSHADE> <FONT STYLE="font: 18pt Times New Roman, Times, serif"><B>SOCKET
    MOBILE,&nbsp;INC.</B></FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="100%" COLSPAN="5" ALIGN="CENTER" HEIGHT="26"><FONT SIZE="3" FACE="Times New Roman, Times, serif">(Name
      of Registrant as Specified in its Charter)</FONT>
      <HR NOSHADE>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="2%">&nbsp;</TD>
    <TD WIDTH="3%">&nbsp;</TD>
    <TD WIDTH="2%">&nbsp;</TD>
    <TD WIDTH="90%">&nbsp;</TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="100%" COLSPAN="5"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Payment
      of Filing Fee (Check the appropriate box):</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">/x/</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="95%" COLSPAN="3"><FONT SIZE="3" FACE="Times New Roman, Times, serif">No
      fee required.</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%" HEIGHT="31"><FONT SIZE="3" FACE="Times New Roman, Times, serif">/&nbsp;/</FONT></TD>
    <TD WIDTH="2%" HEIGHT="31"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="95%" COLSPAN="3" HEIGHT="31"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Fee
      computed on table below per Exchange Act Rules 14a-6(i)(4) and&nbsp;0-11.</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">1)</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="90%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Title
      of each class of securities to which transaction applies:<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;N/A</FONT>
      <HR NOSHADE>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">2)</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="90%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Aggregate
      number of securities to which transaction applies:<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;N/A</FONT>
      <HR NOSHADE>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">3)</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="90%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">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):<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;N/A</FONT>
      <HR NOSHADE>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">4)</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="90%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Proposed
      maximum aggregate value of transaction:<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;N/A</FONT>
      <HR NOSHADE>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">5)</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="90%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Total
      fee paid:<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;N/A</FONT>
      <HR NOSHADE>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">/&nbsp;/</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="95%" COLSPAN="3"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Fee
      paid previously with preliminary materials.</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%" HEIGHT="54"><FONT SIZE="3" FACE="Times New Roman, Times, serif">/&nbsp;/</FONT></TD>
    <TD WIDTH="2%" HEIGHT="54"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="95%" COLSPAN="3" HEIGHT="54"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Check
      box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;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></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%" HEIGHT="16"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="2%" HEIGHT="16">&nbsp;</TD>
    <TD WIDTH="3%" HEIGHT="16"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="2%" HEIGHT="16">&nbsp;</TD>
    <TD WIDTH="90%" HEIGHT="16"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">1)</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="90%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Amount
      Previously Paid:<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;N/A</FONT>
      <HR NOSHADE>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">2)</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="90%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Form,
      Schedule or Registration Statement No.:<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;N/A</FONT>
      <HR NOSHADE>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">3)</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="90%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Filing
      Party:<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;N/A</FONT>
      <HR NOSHADE>
    </TD>
  </TR>
  <TR VALIGN="TOP">
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="3%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">4)</FONT></TD>
    <TD WIDTH="2%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">&nbsp;</FONT></TD>
    <TD WIDTH="90%"><FONT SIZE="3" FACE="Times New Roman, Times, serif">Date Filed:<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;N/A</FONT>
      <HR NOSHADE>
    </TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<P>&nbsp;</P>


<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

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<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>SOCKET
MOBILE, INC.</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>NOTICE
OF 2013 ANNUAL MEETING OF STOCKHOLDERS</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>To
Be Held June 5, 2013</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Dear
Stockholders:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">You
are cordially invited to attend the Annual Meeting of Stockholders of Socket Mobile, Inc., a Delaware corporation (the &quot;Company&quot;),
to be held Wednesday, June 5, 2013 at 10:00 a.m., local time, at the Company's headquarters at 39700 Eureka Drive, Newark, California
94560 for the following purposes:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(1)&#9;To
elect seven directors to serve until their respective successors are elected;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(2)&#9;Advisory
vote on executive compensation policies and practices as described in the annual meeting proxy;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(3)&#9;Advisory
vote to determine the frequency of future votes on executive compensation policies and practices;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(4)&#9;Proposal
to amend the 2004 Equity Incentive Plan to extend its term for ten years to April 23, 2024;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(5)&#9;Proposal
to increase the number of authorized common shares from ten million to twenty million;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(6)
Proposal to ratify the appointment of Sam Kan and Company as independent registered public accountants of the Company for the
fiscal year ending December 31, 2013.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(7)&#9;To
transact such other business as may properly come before the meeting or any adjournment thereof.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
foregoing items of business are more fully described in the Proxy Statement accompanying this notice. Only stockholders of record
at the close of business on April 8, 2013 are entitled to notice of and to vote at the meeting. All stockholders are cordially
invited to attend the meeting in person. However, to ensure your representation at the meeting, you are urged to mark, sign, date,
and return the enclosed Proxy as promptly as possible following the instructions on your proxy ballot. Any stockholder attending
the meeting may vote in person even if he or she has returned a Proxy.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 330pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Sincerely,</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 330pt; text-align: justify">/s/ Kevin J. Mills<BR>
<BR>
<FONT STYLE="font: 12pt Times New Roman, Times, Serif">Kevin J. Mills</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 330pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">President
and Chief Executive Officer</FONT></P>



<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 3.5in; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Newark,
California</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">April
11, 2013</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>YOUR
VOTE IS IMPORTANT.</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>IN
ORDER TO ENSURE YOUR REPRESENTATION AT THE ANNUAL MEETING,</B><BR>
<B>YOU ARE REQUESTED TO COMPLETE, SIGN AND DATE THE ENCLOSED PROXY</B><BR>
<B>AS PROMPTLY AS POSSIBLE AND RETURN IT IN THE ENCLOSED ENVELOPE, OR VOTE BY PHONE OR BY INTERNET WHERE AVAILABLE.</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>SOCKET
MOBILE, INC.</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>PROXY
STATEMENT FOR</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>2013
ANNUAL MEETING OF STOCKHOLDERS</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>INFORMATION
CONCERNING SOLICITATION AND VOTING</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>GENERAL</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
enclosed proxy is solicited on behalf of the Board of Directors of Socket Mobile, Inc. (the &quot;Company&quot;), for use at the
2013 Annual Meeting of Stockholders to be held Wednesday June 5, 2013 at 10:00 a.m., local time, or at any adjournment thereof,
for the purposes set forth herein and in the accompanying Notice of 2013 Annual Meeting of Stockholders. The 2013 Annual Meeting
will be held at the Company's headquarters at 39700 Eureka Drive, Newark, California 94560. The Company's telephone number at
that location is (510) 933-3000.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Notice
of the availability of these proxy solicitation materials and our Annual Report on Form 10-K for the year ended December 31, 2012,
including financial statements, were first mailed on or about April 23, 2013 to all stockholders entitled to vote at the 2013
Annual Meeting.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 9pt 0 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>IMPORTANT
NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 9pt 0 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
proxy materials are available at http://www.socketmobile.com/2013-proxy-materials.html <B>.</B> Stockholders may access the Notice
of Annual Meeting and Proxy Statement, Annual Report on Form 10-K and Proxy Card at this site to read, download the documents,
and/or request a printed copy. Printed copies may also be requested by telephone at <B>800-856-9390</B>. Printed copies will be
mailed within 3 business days of receipt of the request.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>RECORD
DATE AND PRINCIPAL SHARE OWNERSHIP</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Holders
of record of our Common Stock at the close of business on April 8, 2013 (the &quot;Record Date&quot;) are entitled to notice of
and to vote at the 2013 Annual Meeting. At the Record Date, 4,861,063 shares of Common Stock were issued and outstanding. Each
share of Common Stock is entitled to one vote. The Company has no other class of voting securities outstanding and entitled to
be voted at the meeting.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
only persons known by the Company to beneficially own more than five percent of the Company's Common Stock as of the Record Date
were Charlie Bass, the Chairman of the Company&rsquo;s Board of Directors, Kevin J. Mills, the President, Chief Executive Officer
and a director of the Company, Hudson Bay Master Fund Ltd. which is managed by Hudson Bay Capital Management LP, Roy L. Rogers
as trustee for the Rogers Family Trust UTD 01-21-81 and the Roy and Ruth Rogers Unitrust, UTD 09-28-89, Leviticus Partners, L.P.
whose general partner is AMH Equity LLC and AboCom Systems Inc. Please see &quot;Security Ownership of Certain Beneficial Owners
and Management&quot; for more information on these holdings.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>REVOCABILITY
OF PROXIES</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Any
proxy given pursuant to this solicitation may be revoked by the person giving it at any time before its use by delivering to the
Secretary of the Company a written notice of revocation or a duly executed proxy bearing a later date or by attending the 2013
Annual Meeting and voting in person.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>VOTING
AND SOLICITATION</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Generally
each stockholder is entitled to one vote for each share of Common Stock held on all matters to be voted on by the stockholders.
If, however, any stockholder at the 2013 Annual Meeting gives notice of his or her intention to cumulate votes with respect to
the election of directors (Proposal One), then each stockholder may cumulate such stockholder's votes for the election of directors
and give one candidate a number of votes equal to the number of directors to be elected multiplied by the number of shares of
Common Stock that such stockholder is entitled to vote, or may distribute such stockholder's votes on the same principle among
as many candidates as the stockholder may select, provided that votes cannot be cast for more than seven candidates. However,
no stockholder shall be entitled to cumulate votes for a candidate unless the candidate's name has been placed in nomination prior
to the voting and the stockholder, or any other stockholder, has given notice at the meeting, prior to the voting, of the intention
to cumulate votes. On all other matters, stockholders may not cumulate votes.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">This
solicitation of proxies is made by the Company, and all related costs will be borne by the Company. In addition, the Company may
reimburse brokerage firms and other persons representing beneficial owners of stock for their expenses in forwarding solicitation
material to such beneficial owners. Proxies may also be solicited by the Company's directors, officers and regular employees,
without additional compensation, personally or by telephone, email or facsimile.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>QUORUM;
VOTE REQUIRED; ABSTENTIONS; BROKER NON-VOTES</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
presence at the 2013 Annual Meeting, either in person or by proxy, of the holders of a majority of votes entitled to be cast with
respect to the outstanding shares of Common Stock shall constitute a quorum for the transaction of business. Shares that are voted
&quot;FOR,&quot; &quot;AGAINST,&quot; &quot;WITHHOLD or &ldquo;ABSTAIN&rdquo; on a subject matter (the &quot;Votes Cast&quot;)
are treated as being present at the meeting for purpose of establishing a quorum entitled to vote on the matter.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; color: black"><I>Proposal&nbsp;One.</I>&nbsp;&nbsp;Directors
are elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to
vote on the election of directors. </FONT><FONT STYLE="font: 12pt Times New Roman, Times, Serif">If a quorum is present at the
meeting, the seven nominees receiving the highest number of votes will be elected to the Board of Directors. Votes withheld from
any nominee are counted for purposes of determining the presence or absence of a quorum.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Proposal
Two</I>. To approve the executive compensation policies and practices of the Company as described in this Proxy Statement. The
vote is a non-binding advisory vote to be considered by management and the Board of Directors.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Proposal
Three.</I> To recommend the frequency of future shareholder advisory votes (every one, two or three years) on the executive compensation
policies and practices of the Company. The vote is an advisory vote to be considered by management and the Board of Directors.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Proposal
Four</I>. To approve the extension of the Company&rsquo;s 2004 Equity Incentive Plan as amended on April 29, 2010 beyond its current
expiration date of April 23, 2014 to April 23, 2024. Requires the affirmative vote of a majority of the Votes Cast on the matter
at the 2013 Annual Meeting.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Proposal
Five. </I>To approve an increase in the number of common shares authorized for future issue from ten million to twenty million.
Requires the affirmative vote of a majority of shares outstanding.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; color: black"><I>Proposal&nbsp;Six.</I>&nbsp;&nbsp;To
approve ratification of the appointment of Sam Kan and Company as the </FONT><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Company's
<FONT STYLE="color: black">independent registered public accountants for the fiscal year ending December 31, 2013.Requires the
affirmative vote of a majority of the Votes Cast on the matter at the 2013 Annual Meeting.</FONT></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company also intends to count abstentions for purposes of determining (i) the presence or absence of a quorum for the transaction
of business and (ii) the total number of Votes Cast with respect to a proposal (other than the election of directors and proposals
two and three which are advisory in nature). Thus, abstentions for proposals four, five and six will have the same effect as a
vote against a proposal.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Broker
non-votes will be counted for purpose of determining the presence or absence of a quorum for the transaction of business, but
will not be counted for purpose of determining the number of Votes Cast with respect to a particular proposal. Thus, a broker
non-vote will not have any effect on the outcome of the voting on Proposals 4 and 6, which require the affirmative vote of a majority
of the Votes Cast. Proposal 5 requires the affirmative vote of a majority of shares outstanding. Therefore, broker non-votes will
have the same effect as a vote against Proposal 5.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">A
plurality of the votes duly cast is required for the election of directors. Thus, neither abstentions nor broker non-votes affect
the election of directors, as only affirmative votes will affect the outcome of the election. The advisory vote on proposal two
on executive compensation policies and procedures will only consider votes for and against, thus neither abstentions nor broker
non-votes affect the results. The advisory vote on proposal three on the frequency of future advisory votes on compensation policies
and procedures will only consider votes for one year, two years or three years, thus neither abstentions nor broker non-votes
affect the results.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>DEADLINE
FOR RECEIPT OF STOCKHOLDER PROPOSALS TO BE INCLUDED IN THE COMPANY'S PROXY MATERIALS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company currently intends to hold its 2014 Annual Meeting of Stockholders in April 2014 and to mail proxy statements relating
to such meeting in March 2014. Proposals of stockholders of the Company that are intended to be presented by such stockholders
at the 2014 Annual Meeting must be received by the Company no later than November 15, 2013, and must otherwise be in compliance
with applicable laws and regulations, in order to be considered for inclusion in the Company's proxy statement and proxy card
relating to that meeting. <FONT STYLE="color: black">In addition, stockholders must comply with the procedural requirements in
the Company</FONT>'<FONT STYLE="color: black">s bylaws. Under the Company</FONT>'<FONT STYLE="color: black">s bylaws, notice of
any stockholder nomination to the board or proposal of business must be delivered </FONT>to or mailed and received by the Secretary
of the Company not less than ninety (90) days prior to the meeting; provided, however, that in the event that less than one-hundred
(100) days notice or prior public disclosure of the date of the meeting is given or made to stockholders, notice by the stockholder
to be timely must be so received not later than the close of business on the tenth day following the day on which such notice
of the date of the meeting is mailed or such public disclosure is made. To be in proper form, a stockholder's notice to the Secretary
shall set forth: (i) the name and address of the stockholder who intends to make the nominations or propose the business and,
as the case may be, of the person or persons to be nominated or of the business to be proposed; (ii) representations that the
stockholder is a holder of record of stock of the Company entitled to vote at such meeting and, as applicable, that such stockholder
intends to appear in person or by proxy at the meeting to nominate the person or persons specified in the notice or propose such
business; (iii) if applicable, a description of all arrangements or understandings between the stockholder and each nominee and
any other person or persons (naming such person or persons) pursuant to which the nomination or nominations are to be made by
the stockholder; (iv) such other information regarding each nominee or each matter of business to be proposed by such stockholder
as would be required to be included in a proxy statement filed pursuant to the proxy rules of the Securities and Exchange Commission
had the nominee been nominated, or intended to be nominated, or the matter been proposed, or intended to be proposed by the Board
of Directors; and (v) if applicable, the consent of each nominee to serve as director of the Company if so elected. The chairman
of the meeting shall refuse to acknowledge the nomination of any person or the proposal of any business not made in compliance
with the foregoing procedure. <FONT STYLE="color: black">Stockholders can obtain a copy of the Company</FONT>'<FONT STYLE="color: black">s
bylaws from the Company upon request. The Company</FONT>'<FONT STYLE="color: black">s bylaws are also on file with the </FONT>Securities
and Exchange Commission<FONT STYLE="color: black">.</FONT></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">If
a stockholder intends to submit a proposal at the 2014 Annual Meeting, but does not wish to have it included in the proxy statement
and proxy for that meeting, the stockholder must do so no later than January 24, 2014, or else the proxy holders will be allowed
to use their discretionary authority to vote against the proposal when it is raised at the 2014 Annual Meeting.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
attached proxy card grants the persons named as proxies discretionary authority to vote on any matter raised at the 2013 Annual
Meeting that is not included in this Proxy Statement. The Company has not been notified by any stockholder of his or her intent
to present a stockholder proposal at the 2013 Annual Meeting.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>PROPOSAL
ONE</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>ELECTION
OF DIRECTORS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
proxy holders will vote to elect as directors the seven nominees named below, unless a proxy card is marked otherwise. The nominees
consist of six current directors and one new director. If a person other than a management nominee is nominated at the 2013 Annual
Meeting, the holders of the proxies may choose to cumulate their votes and allocate them among such nominees of management as
the proxy holders shall determine in their discretion in order to elect as many nominees of management as possible. The seven
candidates receiving the highest number of votes will be elected. In the event any nominee is unavailable for election, which
is not currently anticipated, the proxy holders may vote in accordance with their judgment for the election of substitute nominees
designated by the Board of Directors.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">All
seven directors will be elected for one-year terms expiring at the 2014 Annual Meeting of Stockholders, subject to the election
and qualification of their successors or their earlier death, resignation or removal. The following table sets forth information
concerning the nominees for director. Information on committee assignments reflects current assignments to be reviewed at the
first meeting of the Board following election. Information on age is as of the record date of April 8, 2013.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; width: 31%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Name
                                                                                              of Nominee (4)</B></FONT></P></TD>
    <TD STYLE="vertical-align: bottom; width: 8%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Age</B></FONT></P></TD>
    <TD STYLE="vertical-align: bottom; width: 48%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Position(s)
                                                                                              Currently Held With the Company</B></FONT></P></TD>
    <TD STYLE="vertical-align: top; width: 13%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Director
                                                                                           Since</B></FONT></P></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Charlie
    Bass (1)(2)&#9;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">71</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Chairman
    of the Board</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1992</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Kevin J. Mills&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">52</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">President, Chief
    Executive Officer and Director</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2000</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Charles C. Emery,
    Jr.(1) &#9;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">66</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Director</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2010</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Micheal L. Gifford&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">55</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Executive Vice
    President and Director</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1992</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Kevin R. Jost
    &#9;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">58</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Director</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">New</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Leon Malmed (1)(2)&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">75</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Director</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2000</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Peter Sealey
    (3)&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">72</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Director</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2002</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/85% Times New Roman, Times, Serif; margin: 0 0 2pt; text-indent: 1.5in; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: left; text-indent: -0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)
Member of the Audit Committee.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)
Member of the Nominating Committee.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(3)
Member of the Compensation Committee. Thomas O. Miller who is retiring from the Board is a member of this committee.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(4)
Committee assignment will be made at the first meeting of the Board following election.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">There
are no family relationships among any of the directors or executive officers of the Company.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Charlie
Bass</I> co-founded the Company in March 1992 and has been the Chairman of the Board of Directors from such time to the present.
Dr.&nbsp;Bass served as the Company's Chief Executive Officer from April 1997 to March 2000. Dr. Bass has served as the Trustee
of The Bass Trust since April 1988. Dr.&nbsp;Bass holds a Ph.D. in electrical engineering from the University of Hawaii.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Kevin
J. Mills</I> was appointed the Company's President and Chief Executive Officer and a director of the Company in March 2000. He
served as the Company's Chief Operating Officer from September 1998 to March 2000. Mr.&nbsp;Mills joined the Company in September
1993 as Vice President of Operations and has also served as our Vice President of Engineering. Prior to joining the Company, Mr.&nbsp;Mills
worked from September 1987 to August 1993 at Logitech, Inc., a computer peripherals company, serving most recently as its Director
of Operations. He holds a B.E. in Electronic Engineering with honors from the University of Limerick, Ireland.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Charles
C. Emery, Jr.</I> has been a director of the Company since April 2010. Dr. Emery served until his retirement as Senior Vice President
and Chief Information Officer for Horizon Blue Cross Blue Shield of New Jersey from 1996 through 2006. Since his retirement, Dr.
Emery has been active with Arizona State University and the University of Maryland teaching graduate classes in healthcare information
systems, strategic planning, and healthcare finance. He has over 35 years experience working within the health insurance and healthcare
provider sectors. He is a fellow of the American College of Healthcare Executives and a fellow of the College of Healthcare Information
Management Executives. Dr. Emery holds a doctorate in management systems from the Peter F. Drucker Graduate Management School
at the Claremont Graduate University.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Micheal
L. Gifford</I> is a co-founder of the Company and has been a director since its inception in March 1992, has served as the Company's
Executive Vice President since October 1994 and is currently responsible for business development and management of the developer
support program. Mr.&nbsp;Gifford served as the Company's President from the Company's inception in March 1992 to September 1994
and as the Company's Chief Executive Officer from March 1992 to June 1994. From December 1986 to December 1991, Mr.&nbsp;Gifford
served as a director and as Director of Sales and Marketing for Tidewater Associates, a computer consulting and computer product
development company. Prior to working for Tidewater Associates, Mr.&nbsp;Gifford co-founded and was President of Gifford Computer
Systems, a computer network integration company. Mr.&nbsp;Gifford holds a B.S. in Mechanical Engineering from the University of
California at Berkeley.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Kevin
R. Jost </I>is being nominated to join the Board. Mr. Jost<I> </I>served as President and CEO of Honeywell Imaging and Mobility
(formerly Hand Held Products, Inc.), a manufacturer of data collection and management solutions for in-premises mobile and transaction
processing applications from 2007 until December 31, 2008 when he retired from active management. Mr. Jost had been the president,
chief executive officer and director of Hand Held Products since its inception as a separate entity in 1999 until its acquisition
in 2007 by Honeywell International, Inc. From 1982 through 1999, Mr. Jost was vice president and general manager of Welch Allyn
Data Collection, a division of Welch Allyn, Inc. In 1999, Welch Allyn Data Collection division became a separate entity and acquired
Hand Held Products, Inc. and continued business under the acquired company's name. Mr. Jost is a former member of the Board of
Directors at Hand Held Products Inc., a current member (since 2004) of the Board of Directors at Par Technology Corporation (NYSE:PTC),
and a current member (since 2010) of the Board of Directors at Furmanite Corporation (NYSE:FRM). Mr. Jost is Chairman of the compensation
committee and member of the audit and governance committees for both corporations. In 2012, Mr. Jost achieved the rank of Board
Leadership Fellow from the National Association of Corporate Directors, the highest level of credentialing for corporate directors
and corporate governance professionals. Mr. Jost earned a B.S. degree from Syracuse University.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Leon
Malmed</I> has been a director of the Company since June 2000. Mr.&nbsp;Malmed served as Senior Vice President of Worldwide Marketing
and Sales of SanDisk Corporation, a manufacturer of flash memory products, from 1992 to his retirement in March 2000. Prior to
his tenure with SanDisk Corporation, Mr.&nbsp;Malmed was Executive Vice President of Worldwide Marketing and Sales for Syquest
Corporation, a disk storage manufacturer, and President of Iota, a Syquest subsidiary, from 1990 to 1992; and Senior Vice President
of Worldwide Sales, Marketing and Programs for Maxtor Corporation, a disk drive supplier, from 1984 to 1990. Mr.&nbsp;Malmed holds
a B.S. in Mechanical Engineering from the University of Paris, and also has completed the AEA/UCLA Senior Executive Program at
the University of California at Los Angeles and the AEA/Stanford Executive Institute Program for Management of High Technology
Companies at Stanford Business School.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Thomas
O. Miller</I> is retiring from the Board. Mr. Miller was appointed a director of the Company by the Board of Directors in February
2008. He is a Partner in The SAGE Group of Bellevue, Washington, a management consulting company that works with executives at
small to midsize companies on business transformation and revitalization strategies for value-creating events. Mr. Miller and
The SAGE Group also advise private equity firms who invest in wireless and mobility companies. Prior to joining The SAGE Group,
Mr. Miller was a member of the executive team at Intermec Corporation, a leader in the automated data collection, wireless and
mobile computing industries, serving as its President from 2004 to 2005. He was also Vice President of Corporate Development until
July 2006 with Intermec&rsquo;s parent company UNOVA. Prior to his appointment as President of Intermec, he was Executive Vice
President, Global Sales and Marketing from 2001 to 2003, and Senior Vice President, Americas and System and Solutions from 1999
through 2001. Mr. Miller was Chairman of the Automatic Industry and Mobility Association from 2003 to March 2006 and was recognized
for his contributions to the industry with induction into the AIDC100 organization in 2004. Mr. Miller previously served on the
board of directors and the audit and compensation committees of InfoLogix, Inc., an enterprise mobility automation company serving
the healthcare industry, from October 2006 until January 18, 2011 when it was purchased by Stanley Works. Mr. Miller holds a Bachelors
of Business and a Masters of Business Administration degree from Western Illinois University.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Peter
Sealey</I> has been a director of the Company since June 2002. &nbsp;Dr. Sealey has served as Chief Executive Officer and founder
of The Sausalito Group, Inc., a management consulting firm, since its founding in July 1997. &nbsp;Dr. Sealey&nbsp;also serves
as an Adjunct Professor of Marketing at the Peter F. Drucker Graduate Management School at the Claremont Graduate University in
Claremont, California. He served as a member of the board of directors of Echometrix Inc., a leading developer of analytic applications
for user-generated digital web content, from December 2008 through April 21, 2010 and was their non-executive chairman of the
board from February 2009 through April 21, 2010. He previously served as an Adjunct Professor of Marketing at the Haas School
of Business, University of California at Berkeley from 1996 to 2006. &nbsp;From July 1969 to August 1993, Dr. Sealey served in
various senior marketing positions with the Coca-Cola Company, including as its Senior Vice President, Global Marketing and Chief
Marketing Officer from December 1989 to August 1993. Dr. Sealey holds a doctorate from the Peter F. Drucker Graduate Management
School at the Claremont Graduate University.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>BOARD
MEETINGS AND COMMITTEES</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Board of Directors has determined that all of the nominees, except Messrs. Mills and Gifford, satisfy the definition of &quot;independent
director,&quot; as established by Nasdaq listing standards. The Board of Directors has an Audit Committee, a Nominating Committee
and a Compensation Committee. Each committee has adopted a written charter, all of which are available on the Company's web site
at http://www.mkr-group.com/SCKT/board_committee.html. The Board of Directors has also determined that each member of the Audit
Committee, the Nominating Committee and the Compensation Committee satisfies the definition of &quot;independent director,&quot;
as established by Nasdaq listing standards.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Board of Directors held a total of four regular meetings during fiscal 2012 and five telephone meetings. The independent directors
met separately without management or the management directors after each of the four regular Board meetings held during 2012.
The Company strongly encourages members of the Board of Directors to attend all meetings, including meetings of committees on
which they serve, as well as the annual meeting of stockholders. No director attended fewer than 75 percent of the meetings of
the Board of Directors and the Board committees on which he served. All directors except Messrs. Bass and Sealey attended the
2012 Annual Meeting of Stockholders.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Audit Committee consists of Messrs. Bass (Chairman), Emery, and Malmed. The members of the Audit Committee each qualify as &quot;independent&quot;
under the standards established by the United States Securities and Exchange Commission for members of audit committees. The Audit
Committee also includes one member, Dr. Bass, who has been determined by the Board of Directors to meet the qualifications of
an &quot;audit committee financial expert&quot; in accordance with Securities and Exchange Commission rules. Stockholders should
understand that this designation is a disclosure required by the Securities and Exchange Commission relating to Dr. Bass' experience
and understanding with respect to certain accounting and auditing matters. This designation does not impose upon Dr. Bass any
duties, obligations or liabilities that are greater than are generally imposed on him as a member of the Audit Committee, and
his designation as an audit committee financial expert pursuant to this SEC requirement does not affect the duties, obligations
or liabilities of any other member of the Audit Committee or Board of Directors.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Audit Committee met with management and the independent accountants four times by telephone during the year ended December 31,
2012 to review quarterly and annual financial information and to discuss the results of quarterly review and annual audit procedures
performed by the independent accountants before quarterly and annual financial reports were issued. The Audit Committee is responsible
for appointing, compensating and overseeing actions taken by the Company's independent accountants, and reviews the Company's
internal financial controls and financial statements. The Audit Committee also oversees management&rsquo;s assessment and management
of risks. Management and the independent accountants participated in all meetings of the Audit Committee. Portions of each Audit
Committee meeting were held between the Audit Committee members and the independent accountants without the presence of management.
The Committee reviewed the financial statements and the annual audit results, including the independent accountants&rsquo; assessment
of the Company&rsquo;s internal controls and procedures, and discussed with the independent accountants the matters denoted as
required communications by Statement of Auditing Standards 61 (SAS 61). The meetings also included a discussion and review of
auditor independence, the pre-approval of the independent accountants&rsquo; fees for 2012, and a recommendation to the Board
of Directors to approve the issuance of the financial statements for the year ended December 31, 2012. The report of the Audit
Committee for the year ended December&nbsp;31, 2012 is included in this Proxy Statement. The Audit Committee Charter is available
on the Company&rsquo;s website at http://www.mkr-group.com/SCKT/board_committee.html.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Nominating Committee consists of Messrs. Malmed (Chairman) and Bass. The Nominating Committee considers and recommends nominations
for the Board of Directors and facilitates the self-assessment of Board performance by the independent directors. The Nominating
Committee met once in 2012, and once in 2013 to date to consider nominees for director. The Nominating Committee determined that
six of seven current directors were willing and able to serve as a director for the ensuing year and recommended their nomination.
In addition, the Nominating Committee considered candidates to fill a seventh board seat and has nominated one candidate to fill
the position. In addition, the independent directors met four times during 2012 and once in January 2013 to date following their
regular board meetings to consider matters relating to board governance, oversight and effectiveness. For 2014, the Nominating
Committee will consider nominees recommended by security holders. Such nominations should be made in writing to the Company, attention
Corporate Secretary, no later than November 15, 2013 in order to be considered for inclusion in next year&rsquo;s proxy statement.
The Nominating Committee Charter is available on the Corporate Governance section of the Company&rsquo;s website at http://www.mkr-group.com/SCKT/board_committee.html.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Compensation Committee, which consists of Messrs. Sealey (Chairman) and Miller, held nine meetings during fiscal year 2012. The
Compensation Committee is responsible for determining salaries, incentives and other forms of compensation for directors and officers
of the Company, approving the Company's incentive compensation and benefit plans including its equity incentive plan, and providing
oversight of all matters affecting compensation including overseeing management&rsquo;s assessment and management of compensation-related
risks. The report of the Compensation Committee for fiscal year 2012 is included in this Proxy Statement. The Compensation Committee
Charter is available on the Corporate Governance section of the Company's website at http://www.mkr-group.com/SCKT/board_committee.html.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>COMPENSATION
OF DIRECTORS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Regular
meetings of the Board of Directors are scheduled once per quarter. Directors who are not employees of the Company receive $4,000
per regular meeting of the Board of Directors that they attend. Outside directors are also entitled to participate in the Company's
2004 Equity Incentive Plan. Grants of options to directors are made annually as compensation for Board service, committee service
and committee and Board leadership positions, generally at the time of annual election of the Board of Directors. Additional grants
may be awarded in recognition of services beyond normal board duties. See &ldquo;Director Compensation&rdquo; for information
regarding stock option grants awarded in 2012.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>VOTE
REQUIRED AND RECOMMENDATION OF THE BOARD </B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">If
a quorum is present at the Annual Meeting, the seven nominees receiving the highest number of votes will be elected to the Board
of Directors. Votes withheld from any nominee are counted for purposes of determining the presence or absence of a quorum.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>THE
BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT STOCKHOLDERS VOTE &quot;FOR&quot; ALL OF THE COMPANY'S NOMINEES FOR DIRECTORS.</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>PROPOSAL
TWO</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>APPROVAL
OF EXECUTIVE COMPENSATION POLICIES AND PRACTICES</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>(&ldquo;SAY-ON-PAY&rdquo;)</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Commencing
this year, our stockholders have the opportunity to vote to approve, on a nonbinding, advisory basis, the compensation of our
named executive officers as disclosed in this proxy statement. </FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">As
described in &ldquo;Compensation Discussion and Analysis&rdquo; and elsewhere in this proxy statement, we seek to closely align
the interest of our executive officers with the interest of our stockholders and to attract, motivate and retain our named executive
officers who are critical to our success. Our Compensation Committee regularly reviews named executive officer compensation to
ensure such compensation is consistent with our goals. </FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">The
base salaries paid to our named executive officers are compared to other similar smaller technology public companies set forth
in the national compensation survey of Tech America, formerly the American Electronics Association. Base salaries for executives
are generally targeted within ten percent of the median compensation levels for smaller public technology companies but may be
set to higher or lower levels to recognize a particular executive&rsquo;s role, responsibilities, skills, experience and performance.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Variable
performance based incentive awards for our named executive officers other than our Chief Executive Officer are intended to motivate
and reward executives to meet or exceed financial performance goals of revenue attainment and operating profitability measured
both quarterly and annually. The variable performance based incentive award for our Chief Executive Officer is based on increases
in shareholder value as measured by the market capitalization of the Company. </FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Long
term incentive awards for our named executive officers consist of stock option grants that are granted at the fair market value
on the date of grant and vest over a period of time through the stockholder-approved 2004 Equity Incentive Plan. The goal is to
align the financial interests of the named executive officers with those of stockholders by providing significant incentives to
manage the Company from the perspective of an owner with an equity stake in the business. The Compensation Committee determines
the size of each award based on the individual&rsquo;s level of responsibility, recent performance, his or her potential for future
responsibility and promotion, the number of unvested options held by the individual at the time of the new grant, and the size
of the available stock award pool.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">The
advisory vote on executive compensation solicited by this proposal is not intended to address any specific item of compensation,
but rather the overall compensation of our Chief Executive Officer, our Chief Financial Officer and our three other most highly-compensated
executive officers, who are collectively referred to as our &ldquo;named executive officers,&rdquo; which is disclosed elsewhere
in this proxy statement. The vote is advisory, which means that it is not binding on the Board of Directors, the Compensation
Committee or the Company in any way. However, the Compensation Committee will review the outcome of the vote and take it into
consideration when considering future executive compensation policies and decisions. </FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>VOTE
REQUIRED AND RECOMMENDATION OF THE BOARD </B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">RESOLVED,
that the stockholders of Socket Mobile, Inc. approve, on an advisory basis, the compensation of the Company&rsquo;s named executive
officers for the fiscal year ended December 31, 2012, as disclosed pursuant to Item 402 of Regulation S-K in the Company&rsquo;s
definitive proxy statement for the 2013 Annual Meeting of Stockholders.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>THE
BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT STOCKHOLDERS VOTE &quot;FOR&quot; APPROVAL OF THE FOREGOING RESOLUTION.</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B></B></FONT></P>

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<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>PROPOSAL
THREE</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>ADVISORY
VOTE ON THE FREQUENCY OF FUTURE SAY-ON-PAY VOTES</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>(&ldquo;SAY-WHEN-ON-PAY&rdquo;)</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Stockholders
may indicate whether they would prefer that we conduct future say-on-pay votes once every one, two, or three years. Stockholders
may also abstain from casting a vote on this proposal.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">The
Board of Directors has determined that an annual advisory vote on executive compensation will permit our stockholders to provide
direct input on the Company&rsquo;s executive compensation philosophy, policies and practices as disclosed in the Company&rsquo;s
proxy statement, which is consistent with our efforts to engage in an ongoing dialogue with our stockholders on executive compensation
and corporate governance matters. </FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>VOTE
REQUIRED AND RECOMMENDATION OF THE BOARD </B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
proxy card provides stockholders with the opportunity to choose among four options: holding the vote every one; two; or three
years; or abstain from voting. Therefore, the shareholders will not be voting to approve or disapprove the recommendation of the
Board of Directors.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
vote is advisory, which means that the vote on executive compensation is not binding on the Company, our Board of Directors, or
the Compensation Committee of the Board of Directors. The Board of Directors and the Compensation Committee will take into account
the outcome of the vote; however, when considering the frequency of future say-on-pay votes, the Board of Directors may decide
that it is in the best interests of our stockholders and the Company to hold future say-on-pay vote more or less frequently than
the frequency receiving the most votes cast by our stockholders.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>THE
BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT STOCKHOLDERS VOTE &quot;FOR&quot; THE OPTION OF AN ANNUAL VOTE AS THE PREFERRED
FREQUENCY FOR FUTURE SAY-ON-PAY VOTES.</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"></P>

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<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>PROPOSAL
FOUR</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>EXTENSION
OF THE 2004 EQUITY INCENTIVE PLAN</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">The
2004 Equity Incentive Plan (&ldquo;2004 Plan&rdquo;) was approved by the Board on April 23, 2004 and by the stockholders on June
16, 2004. The 2004 Plan replaced earlier plans approved by the stockholders in 1993 and 1995 and by the Board of Directors in
1999. Commencing with stockholder approval of the 2004 Plan, stock option grants have been granted to executives, employees and
consultants by the Compensation Committee of the Board of Directors and to Directors by the full Board of Directors as the long
term equity based compensation portion of the Company&rsquo;s compensation program as described under &ldquo;Compensation Discussion
and Analysis&rdquo;. </FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
2004 Plan is scheduled to terminate on April 23, 2014. The Board of Directors believes that the future success of Socket Mobile,
Inc. depends in large part upon the ability of the Company to attract, retain and motivate key employees and that the granting
of stock options or other equity based awards allowed by the 2004 Plan serves as an important factor in accomplishing this objective.
The Board believes that extending the term of the 2004 Plan by ten years, to April 23, 2024, is the most effective way to retain
the long term equity based compensation portion of the Company&rsquo;s compensation program.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>SUMMARY
OF THE 2004 PLAN</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
following paragraphs provide a summary of the principal features of the 2004 Plan and its operation. The following summary is
qualified in its entirety by reference to the 2004 Plan as set forth in Appendix&nbsp;A.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
2004 Plan provides for the grant of the following types of incentive awards: (i)&nbsp;stock options; (ii)&nbsp;restricted stock;
(iii) stock appreciation rights; and (iv) performance units and performance shares, which are each referred to individually as
an Award. Those who will be eligible for Awards under the 2004 Plan include employees, directors and consultants who provide services
to the Company, including any parent or subsidiary companies.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Number
of Shares of Common Stock Available under the 2004 Plan</I>.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Following
approval by the stockholders of the 2004 Plan in June 2004, any shares of the Common Stock which had been reserved but not issued
or subject to outstanding options under the 1995 Stock Plan as of the date of that approval and any shares of Common Stock that
would otherwise return to the 1995 Stock Plan thereafter as a result of termination of options or repurchase of shares of Common
Stock issued there under were reserved for issuance under the 2004 Plan. In addition, shares of Common Stock are added to the
2004 Plan annually on the first day of the Company's fiscal year beginning in 2005, equal to the least of: (i) 200,000 shares,
(ii) four percent of the Company's outstanding shares on such date, or (iii) a lesser amount determined by the Board of Directors.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">If
the Board of Directors declares a stock dividend or there is a reorganization or other change in the Company's capital structure,
including a merger or change in control, the Committee (as defined below) will have the discretion to adjust the number of shares
(i) available for issuance under the 2004 Plan, (ii) subject to outstanding Awards; and (iii) specified in the per-person limits
on Awards, as appropriate to reflect the change.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Administration
of the 2004 Plan.</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Compensation Committee of the Board of Directors (the &quot;Committee&quot;) administers the 2004 Plan. To make grants to certain
of the Company's officers and key employees, the members of the Committee must qualify as &quot;non-employee directors&quot; under
Rule 16b-3 of the Exchange Act, and as &quot;outside directors&quot; under Section 162(m) of the Internal Revenue Code (so that
the Company can receive a federal tax deduction for certain compensation paid under the 2004 Plan). Subject to the terms of the
2004 Plan, the Committee has the sole discretion to select the employees, consultants, and directors who will receive Awards,
determine the terms and conditions of Awards, and interpret the provisions of the 2004 Plan and outstanding Awards. The Committee
may delegate any part of its authority and powers under the 2004 Plan to one or more directors and/or officers of the Company,
but only the Committee itself can make Awards to participants who are executive officers of the Company.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Options.
</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Committee is able to grant nonqualified stock options and incentive stock options under the 2004 Plan. The Committee will determine
the number of shares subject to each option, but no participant will be able to be granted options covering more than 750,000
shares during any of the Company's fiscal years, except that a participant may be granted an option covering up to an additional
1,250,000 shares in connection with his or her initial service with the Company. The Committee will determine the exercise price
of options granted under the 2004 Plan, but with respect to nonstatutory stock options intended to qualify as performance-based
compensation within the meaning of Section 162(m) of the Internal Revenue Code and all incentive stock options (other than those
incentive stock options granted as substitute awards in connection with our acquisition of another company), the exercise price
must at least be equal to the fair market value of the Common Stock on the date of grant. In addition, the exercise price of an
incentive stock option granted to any participant who owns more than 10 percent of the total voting power of all classes of the
Company's outstanding stock must be at least 110 percent of the fair market value of the Common Stock on the date of grant.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
term of an incentive stock option may not exceed 10 years, except that with respect to any participant who owns 10 percent of
the voting power of all classes of the Company's outstanding capital stock, the term may not exceed five years. The Committee
determines the term of nonstatutory options, but such options will generally terminate 10 years from the date of grant, unless
an earlier date is set forth in the option agreement.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">After
termination of service with the Company, a participant will be able to exercise the vested portion of his or her option for the
period of time stated in the option agreement. If no such period of time is stated in a participant's option agreement, a participant
will generally be able to exercise his or her option for (i)&nbsp;three months following his or her termination for reasons other
than death or disability, and (ii)&nbsp;one year following his or her termination due to death or disability. In no event may
an option be exercised later than the expiration of its term.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Stock
Appreciation Rights. </I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Committee is able to grant stock appreciation rights. No stock appreciation rights have been granted to date. A stock appreciation
right is the right to receive the appreciation in fair market value of the Company's Common Stock between the exercise date and
the date of grant. The Company may pay the appreciation in either cash or shares of Common Stock. Stock appreciation rights will
become exercisable at the times and on the terms established by the Committee, subject to the terms of the 2004 Plan. No participant
will be granted stock appreciation rights covering more than 750,000 shares during any fiscal year, except that a participant
may be granted stock appreciation rights covering up to an additional 1,250,000 shares in connection with his or her initial service
with the Company.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">After
termination of service with the Company, a participant will be able to exercise the vested portion of his or her stock appreciation
right for the period of time stated in the appreciation right agreement. If no such period of time is stated in a participant's
appreciation right agreement, a participant will generally be able to exercise his or her stock appreciation right for (i) three
months following his or her termination for reasons other than death or disability, and (ii) one year following his or her termination
due to death or disability. In no event may a stock appreciation right be exercised later than the expiration of its term.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Restricted
Stock. </I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Committee is able to grant restricted stock awards. No restricted stock awards have been granted to date. Awards of restricted
stock are rights to acquire or purchase shares of Common Stock. Restricted stock vests in accordance with the terms and conditions
established by the Committee in its sole discretion. For example, the Committee may set restrictions based on the achievement
of specific performance goals. Awards of restricted stock may be issued either alone, in addition to, or in tandem with other
Awards granted under the 2004 Plan and/or cash awards made outside of the 2004 Plan. The Award agreement will generally grant
the Company a right to repurchase or reacquire the unvested shares upon the termination of the participant's service with the
Company for any reason (including death or disability). The Committee will determine the number of shares granted pursuant to
an Award of restricted stock, but no participant will be granted a right to purchase or acquire more than 250,000 shares of Common
Stock during any fiscal year, except that a participant may be granted up to an additional 500,000 shares of restricted stock
in connection with his or her initial employment with the Company.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Performance
Units and Performance Shares. </I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Committee is able to grant performance units and performance shares, which are Awards that will result in a payment to a participant
only if the performance goals or other vesting criteria the Committee establishes are achieved or the Awards otherwise vest. No
performance units or performance shares have been granted to date. The Committee may establish organizational, individual performance
goals or other vesting criteria in its discretion, which, depending on the extent to which they are met, will determine the number
and/or the value of performance units and performance shares to be paid out to participants. No participant will receive performance
units with an initial value greater than $1,000,000<B> </B>and no participant will receive more than 250,000 performance shares
during any fiscal year, except that a participant may be granted performance shares covering up to an additional 500,000 shares
in connection with his or her initial service with the Company. Performance units will have an initial dollar value established
by the Committee prior to the grant date. Performance shares will have an initial value equal to the fair market value of a share
of the Common Stock on the date of grant.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Performance
Goals. </I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">As
determined by the Committee, the performance goals applicable to an Award may provide for a targeted level or levels of achievement
using one or more of the following measures: (i)&nbsp;cash position, (ii)&nbsp;earnings per share, (iii)&nbsp;net income, (iv)&nbsp;operating
cash flow, (v)&nbsp;operating income, (vi)&nbsp;return on assets, (vii)&nbsp;return on equity, (viii)&nbsp;return on sales, (ix)&nbsp;revenue,
and (x)&nbsp;total stockholder return. The performance goals may differ from participant to participant and from Award to Award
and may be stated in absolute terms or relative to comparison companies or indices to be achieved during a period of time.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Transferability
of Awards. </I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
2004 Plan generally will not allow for the transfer of Awards, and all rights with respect to an Award granted to a participant
generally will be available during a participant's lifetime only to the participant.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Change
of Control. </I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
the event of a change of control of the Company, each outstanding Award will be assumed or substituted for by the successor corporation
(or a parent or subsidiary of such successor corporation). If there is no assumption or substitution of outstanding Awards, the
Committee will provide notice to each participant that he or she has the right to exercise the option and stock appreciation right
as to all of the shares subject to the Award, all restrictions on restricted stock will lapse, and all performance goals or other
vesting requirements for performance shares and units will be deemed achieved, and all other terms and conditions met. In such
event, the Committee shall notify the participant that the Award is fully exercisable for 15 days from the date of such notice.
The Award will terminate upon expiration of the notice period.</FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Amendment
and Termination of the 2004 Plan. </I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Committee will have the authority to amend, suspend or terminate the 2004 Plan, except that stockholder approval will be required
for any amendment to the 2004 Plan to the extent required by any applicable law, regulation or stock exchange rule. Any amendment,
suspension or termination will not, without the consent of the participant, materially adversely affect any rights or obligations
under any Award previously granted. The 2004 Plan will terminate in April 2014, unless the Board of Directors terminates it earlier
or if the stockholders approve the requested extension.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>RESOLUTION:</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&ldquo;<FONT STYLE="font-weight: normal">Resolved,
that Section 16 of the 2004 Plan &ldquo;<U>Term of Plan&rdquo;</U> be increased from ten (10) years to twenty (20) years which
will extend the termination date of the 2004 Plan from April 23, 2014 to April 23, 2024.&rdquo;</FONT></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>VOTE
REQUIRED AND RECOMMENDATION OF THE BOARD</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">Approval
of the foregoing resolution will extend the termination date of the 2004 Plan from April 23, 2014 to April 23, 2024 and requires
the affirmative vote of a majority of the Votes Cast on the matter at the 2013 Annual Meeting.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>THE
BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT STOCKHOLDERS VOTE &quot;FOR&quot; APPROVAL OF THE RESOLUTION TO EXTEND THE TERMINATION
DATE OF THE 2004 EQUITY INCENTIVE PLAN BY TEN (10) YEARS TO APRIL 23, 2024.</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B></B></FONT></P>

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<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>PROPOSAL
FIVE</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>AMENDMENT
TO THE AMENDED AND RESTATED CERTIFICATE OF INCORPORATION TO INCREASE THE NUMBER OF AUTHORIZED COMMON SHARES</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Board of Directors has voted to recommend to the stockholders that the Company amend its Restated Certificate of Incorporation
to increase the number of authorized shares of Common Stock from 10,000,000 to 20,000,000 shares.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">As
of December 31, 2012, there were 4,861,063 shares of our Common Stock issued and outstanding, and 3,110,057 shares reserved for
future issue for a total of 7,971,120 shares outstanding and reserved. 1,881,068 shares are reserved for stock options outstanding
or available for grant, an additional 607,776 shares are reserved for the exercise of outstanding warrants, and 621,213 shares
are reserved for conversion of convertible notes. A total of 2,028,880 shares are available.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Board of Directors believes that an increase in the number of authorized shares of Common Stock is in the best interests of our
Company and our stockholders. The Board of Directors believes that the authorized Common Stock should be increased to provide
sufficient shares for such corporate purposes as may be determined by the Board of Directors. These purposes may include, among
others, the issuance of Common Stock to facilitate potential mergers or acquisitions, raising capital through the sale of stock,
and/or attracting or retaining valuable employees by the issuance of stock options. Except as described above or elsewhere in
this proxy statement, we have no plans, understandings, commitments, agreements or undertakings concerning the issuance of any
such additional shares. The Board of Directors, however, considers the authorization of additional shares of Common Stock advisable
to ensure prompt availability of shares for issuance should the occasion arise.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Authorized
Capital Stock</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Common
Stock</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Holders
of our Common Stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders including
the election of directors.&nbsp;&nbsp;Holders of our Common Stock are entitled to receive ratably such dividends, if any, as may
be declared by our Board of Directors out of funds legally available therefore, subject to any preferential dividend rights of
outstanding Preferred Stock. Upon our liquidation or dissolution, the holders of Common Stock are entitled to receive ratably
our net assets available after the payment of all debts and other liabilities and subject to the prior rights of any outstanding
Preferred Stock. Holders of our Common Stock have no preemptive, subscription, redemption or conversion rights. The rights, preferences
and privileges of holders of our Common Stock are subject to, and may be adversely affected by, the rights of the holders of shares
of any series of Preferred Stock which we may designate and issue in the future.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Under
the Delaware General Corporation Law, the Board of Directors generally may issue authorized but unissued shares of Common Stock
without further stockholder approval. The Board of Directors does not currently intend to seek stockholder approval prior to any
future issuance of additional shares of Common Stock, unless stockholder action is required in a specific case by applicable law,
the rules of any exchange or market on which our securities may then be listed or traded, or our Restated Certificate of Incorporation
or By-Laws then in effect. Frequently, opportunities arise that require prompt action, and we believe that delay necessitated
for stockholder approval of a specific issuance could be detrimental to our Company and our stockholders.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
additional shares of Common Stock authorized for issuance pursuant to this proposal will have the rights and privileges which
the presently outstanding shares of Common Stock possess under our Restated Certificate of Incorporation. Shares of our Common
Stock, including the additional shares proposed for authorization, do not have preemptive or similar rights. The increase in authorized
shares would not affect the terms or rights of holders of existing shares of Common Stock. The voting, dividend and liquidation
rights of the holders of Common Stock, however, may be subordinate to the rights of the holders of the any preferred stock which
may be issued from time to time. All outstanding shares of Common Stock would continue to have one vote per share on all matters
to be voted on by the stockholders, including the election of directors.&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
issuance of any additional shares of Common Stock by our Company may, depending on the circumstances under which those shares
are issued, reduce stockholders&rsquo; equity per share and, unless additional shares are issued to all stockholders on a pro
rata basis, will reduce the percentage ownership of Common Stock of existing stockholders. We expect, however, to receive consideration
for any additional shares of Common Stock issued, thereby reducing or eliminating any adverse economic effect to each stockholder
of such dilution.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Preferred
Stock</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Our
Board of Directors is authorized, subject to certain limitations prescribed by law, without further stockholder approval, to issue
from time to time up to an aggregate of 3,000,000 shares of Preferred Stock, $.001 par value per share, in one or more series
and to fix or alter the designations, preferences, rights and any qualifications, limitations or restrictions of the shares of
each such series thereof, including the dividend rights, dividend rates, conversion rights, voting rights and terms of redemption
of shares constituting any series or designations of such series. The rights of the holders of Common Stock will be subject to,
and may be adversely affected by, the rights of holders of any Preferred Stock that may be issued in the future. There is currently
no preferred stock outstanding.</FONT></P>

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>RESOLUTION:</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">RESOLVED:
That Article IV of the Amended and Restated Certificate of Incorporation of Socket Mobile, Inc.be further amended by deleting
the first paragraph thereof and inserting in its place the following:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&ldquo;The
Corporation is authorized to issue two classes of stock to be designated, respectively, Common Stock, $0.001 par value and Preferred
Stock, $0.001 par value. The total number of shares of all classes of stock that the Corporation shall have the authority to issue
is 23,000,000 shares. The number of shares of Common Stock authorized is 20,000,000. The number of shares of Preferred Stock authorized
is 3,000,000.&rdquo;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>VOTE
REQUIRED AND RECOMMENDATION OF THE BOARD </B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 30pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&#9;Approval
of this amendment will require the affirmative vote of the holders of a majority of the Common Stock issued and outstanding as
of the record date. Abstentions and broker non-votes will have the same effect as a vote against the proposal.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>THE
BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT STOCKHOLDERS VOTE &quot;FOR&quot; THE RESOLUTION TO AMEND THE AMENDED AND RESTATED
CERTIFICATE OF INCORPORATION IN ORDER TO INCREASE THE NUMBER OF AUTHORIZED COMMON SHARES FROM TEN MILLION TO TWENTY MILLION.</B></FONT></P>

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

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

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

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

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

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>PROPOSAL
SIX</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>RATIFICATION
OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Audit Committee has selected Sam Kan and Company, independent registered public accountants, to audit the financial statements
of the Company for the fiscal year ending December 31, 2013, and recommends that stockholders vote for ratification of such appointment.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Sam
Kan and Company was selected by the Audit Committee in February 2013 to audit the financial statements of the Company for the
fiscal year ended December 31, 2012. Moss Adams LLP audited the Company's financial statements for each of the eight fiscal years
ended December 31, 2011. Representatives of Sam Kan and Company are expected to be present at the 2013 Annual Meeting. The representatives
will have the opportunity to make a statement if they desire to do so, and are expected to be available to respond to appropriate
questions.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>FEES
BILLED BY SAM KAN AND COMPANY DURING FISCAL YEAR 2012 AND BY MOSS ADAMS LLP DURING FISCAL YEAR 2011</B></FONT></P>

<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Audit
Fees:</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Audit
fees billed to the Company by Sam Kan and Company for their audit of the Company&rsquo;s 2012 fiscal year financial statements
totaled $77,000. Audit fees billed to the Company by Moss Adams LLP for their audit of the Company's 2011 fiscal year financial
statements was $170,000. Quarterly reviews of the Company's quarterly financial statements for fiscal 2012 and 2011 were performed
by Moss Adams LLP and totaled $48,000 in each fiscal year. The Company was not deemed an accelerated filer for fiscal years 2012
and 2011, and an audit of the Company's internal controls at December 31, 2012 and 2011was not required.</FONT></P>

<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Audit-Related
Fees:</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Audit-related
fees billed to the Company by Moss Adams LLP during the Company's 2012 and 2011 fiscal years totaled $zero and $10,900, respectively.
Audit-related fees in 2011 related to the issuance of consents related to the filing of a Form S-3 registration statement and
a Form S-8 registration statement in fiscal 2011, as well as work related to accounting advice.</FONT></P>

<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Tax
Fees:</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Fees
billed to the Company by Moss Adams LLP for tax services during the Company's 2012 and 2011 fiscal years were $14,663 in 2012
and $11,088 in 2011. Tax fees are for preparation of the prior year's annual tax returns.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>All
Other Fees:</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">There
were no other fees billed to the Company during the Company's 2012 and 2011 fiscal years by Moss Adams LLP.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Approval
Procedures:</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Audit Committee's policy is to pre-approve all audit and other permissible services provided by the independent accountants. These
services may include audit services, audit-related services, tax services and other services. Pre-approval is generally detailed
as to the particular service or category of services and is generally subject to a specific budget. The independent accountants
and management are required to report periodically to the Audit Committee regarding the extent of services provided by the independent
accountants in accordance with this pre-approval process and the fees for the services performed through such date. The Audit
Committee may also pre-approve particular services on a case-by-case basis. All services performed by the independent accountants
in fiscal 2012 and 2011 were preapproved by the Audit Committee. The Audit Committee has considered whether the provision of the
services described in this section is compatible with maintaining the independence of the Audit Firm and determined that it is.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>VOTE
REQUIRED AND RECOMMENDATION OF THE BOARD</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Ratification
of the appointment of Sam Kan and Company as the Company's independent registered public accountants for the fiscal year ending
December 31, 2013 requires the affirmative vote of a majority of the Votes Cast on the matter at the 2013 Annual Meeting.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Stockholder
ratification of the appointment of Sam Kan and Company as the Company's independent registered public accountants is not required
by the Company's bylaws or other applicable legal requirement. However, the Audit Committee is submitting the appointment of Sam
Kan and Company to the stockholders for ratification as a matter of common corporate practice. If the stockholders fail to ratify
the appointment, the Audit Committee will reconsider its selection. Even if the appointment is ratified, the Audit Committee at
its discretion may direct the appointment of a different independent accounting firm at any time during the year, if it determines
that such a change would be in the best interests of the Company and its stockholders.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>THE
BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT STOCKHOLDERS VOTE &quot;FOR&quot; THE RATIFICATION OF THE APPOINTMENT OF SAM KAN
AND COMPANY AS THE COMPANY'S INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS &#9;FOR THE FISCAL YEAR ENDING DECEMBER 31, 2013.</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
following table sets forth, as of the Record Date, certain information with respect to the beneficial ownership of the Company's
Common Stock, including on an as-exercised basis, options and warrants exercisable within 60 days of the Record Date, and on an
as-converted basis convertible notes convertible within 60 days of the Record Date, as to (i) each person known by the Company
to own beneficially more than 5 percent of the outstanding shares of Common Stock; (ii) each director of the Company; (iii) each
executive officer of the Company named in the Summary Compensation table; and (iv) all directors and executive officers of the
Company as a group. Except as set forth below, the address of record for each of the individuals listed in this table is: c/o
Socket Mobile, Inc., 39700 Eureka Drive, Newark, California 94560.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 36%; padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center"><B>Name
        of Beneficial Owner (1)</B></P></TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 25%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; border-bottom: Black 1pt solid">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 3pt; text-align: center"><B>Number
        of Shares of Common Stock</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 3pt; text-align: center"><B>Beneficially Owned</B></P></TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 22%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; border-bottom: Black 1pt solid">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 3pt; text-align: center"><B>Percentage
        of Shares of Common Stock Beneficially Owned (2)</B></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; font-style: italic; font-weight: bold; text-indent: -0.15in">5% Stockholders</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD>&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-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Leviticus Partners, L.P. (3)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">479,993</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">9.9%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Hudson Bay Master Fund Ltd. (4)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">500,000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">9.3%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Roy L. Rogers (5)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">378,538</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">7.7%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">AboCom Systems Inc. (6)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">282,485</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">5.8%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; font-style: italic; font-weight: bold; text-indent: -0.15in">Directors and Executive Officers</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD>&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-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Charlie Bass (7)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">638,220</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">12.1%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Kevin J. Mills (8)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">337,624</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">6.7%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">David W. Dunlap (9)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">106,471</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;2.2%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Micheal L. Gifford (10)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">103,487</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">2.1%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Leonard L. Ott (11)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">92,674</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1.9%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Tim I. Miller (12)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">87,146</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1.8%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Lee A. Baillif (13)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">80,652</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1.6%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Leon   Malmed (14)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">79,202</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1.6%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Peter Sealey (14)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">52,000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1.1%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Thomas O. Miller (15)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">48,506</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1.0%</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">Charles C. Emery, Jr. (14)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">33,952</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">*</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.15in; padding-left: 0.15in; text-indent: -0.15in">All Directors and Executive Officers as a group (11 persons) (16)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">1,659,934</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">27.3%</TD></TR>
</TABLE>
<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">__________________</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">*Less
than 1%</FONT></P>


<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">                                                                                                                                     <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(1)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">To the Company&rsquo;s knowledge, the persons named in the table have sole voting and investment power with
respect to all shares of Common Stock shown as beneficially owned by them, subject to community property laws where applicable
and the information contained in the footnotes to this table.</P>


</TD></TR>
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(2)</TD><TD STYLE="text-align: justify"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: justify">Percentage
                                                                                            ownership is based on 4,861,063 shares of Common Stock outstanding, each of which is entitled to one vote, on the Record Date
                                                                                            and any shares issuable pursuant to securities exercisable for shares of Common Stock by the person or group in question as
                                                                                            of the Record Date or within 60 days thereafter.</P> </TD></TR>                                                                                                <TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(3)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">AMH Equity LLC is the general partner of Leviticus Partners, L.P. The address of Leviticus Partners, L.P.
is 60 East 42nd Street, Suite 901, New York, NY 10165.</P>


 </TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(4)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">Hudson Bay Master Fund Ltd. is managed by Hudson Bay Capital Management L.P. The address of both is 777 Third
Avenue, 30<SUP>th</SUP> Floor, New York, NY 10017. Beneficial share ownership consists of 500,000 shares subject to warrants that
are exercisable at $2.44 per share through May 20, 2016.</P>


</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(5)</TD><TD STYLE="text-align: justify"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: justify">Shares held
by Roy L. Rogers as trustee for the Rogers Family Trust UTD 01-21-81 which holds 266,887 shares of Common Stock, and as trustee
for the Roy and Ruth Rogers Unitrust, UTD 09-28-89 which holds 83,651 shares of Common Stock. Mr. Rogers&rsquo;address is 3000
Sand Hill Road, Building 1, Suite 260, Menlo Park, CA 94025. The Family Trust includes 28,000 shares subject to warrants that are
exercisable at $1.80 per share through May 26, 2014.</P>


</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(6)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">AboCom Systems Inc.
                                                           is <FONT STYLE="font-family: Times New Roman, Times, Serif">a corporation
                                                           organized under the laws of Taiwan with offices at 350 No. 77, Yu-Yih
                                                           Road, Chu-Nan Chen, Miao-Lih Hsuan, Taiwan, R.O.C. and is a contract
                                                           product supplier for the Company.</FONT></FONT></P>


</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(7)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">Includes 145,479 shares of Common Stock subject to options exercisable within 60 days of April 8, 2013 and
259,517 shares subject to convertible notes plus interest that are convertible into common stock within 60 days of April 8, 2013.</P>


</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(8)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">Includes 111,402 shares of Common Stock subject to options exercisable within 60 days of April 8, 2013
                                                           and 10,944 shares subject to convertible notes plus interest that are convertible into common stock within 60 days of April
                                                           8, 2013.</P>


</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(9)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">Includes 97,925 shares of Common Stock subject to options exercisable within 60 days of April 8, 2013.</P>


</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(10)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">Includes 92,637 shares of Common Stock subject to options exercisable within 60 days of April 8, 2013.</P>


</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(11)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">Includes 91,234 shares of Common Stock subject to options exercisable within 60 days of April 8, 2013.</P>


</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(12)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">Includes 86,691 shares of Common Stock subject to options exercisable within 60 days of April 8, 2013.</P>


</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(13)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">Includes 67,050 shares of Common Stock subject to options exercisable within 60 days of April 8, 2013 and
10,944 shares subject to convertible notes plus interest that are convertible into common stock within 60 days of April 8, 2013.</P>


</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(14)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">Consists of shares of Common Stock subject to options exercisable within 60 days of April 8, 2013.</P>


</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(15)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">Includes 37,000 shares of Common Stock subject to options exercisable within 60 days of April 8, 2013 and
10,944 shares subject to convertible notes plus interest that are convertible into common stock within 60 days of April 8, 2013.</P>


</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>(16)</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0">Includes 924,492 shares of Common Stock subject to options exercisable within 60 days of April 8, 2013 and
303,293 shares subject to convertible notes plus interest that are convertible into common stock within 60 days of April 8, 2013.</P>


</TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>SECTION
16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Section
16(a) of the Securities and Exchange Act of 1934, as amended, requires the Company's executive officers, directors and persons
who own more than ten percent of the Company's Common Stock to file reports of ownership and changes in ownership with the SEC
and the National Association of Securities Dealers, Inc. Executive officers, directors and greater than 10 percent stockholders
are required by SEC regulation to furnish the Company with copies of all Section 16(a) forms they file. We prepare Section 16(a)
forms on behalf of our executive officers and directors based on the information provided by them. Based solely on review of this
information, the Company believes that during fiscal 2012 all of its executive officers and directors complied with their Section
16(a) filing requirements.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>MANAGEMENT</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
current executive officers of the Company are as follows:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 39%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Name
                                                                      of Officer</B></FONT></P></TD>
    <TD STYLE="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Age</B></FONT></P></TD>
    <TD STYLE="width: 53%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Position
                                                                      with the Company</B></FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 6pt; padding-right: 0.3in; padding-left: 9pt; text-align: justify; text-justify: inter-ideograph; font-size: 10pt; text-indent: -9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Kevin
    J. Mills&#9;</FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; font-size: 10pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">52</FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; font-size: 10pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">President
    and Chief Executive Officer and Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 6pt; padding-right: 0.3in; padding-left: 9pt; text-align: justify; text-justify: inter-ideograph; font-size: 10pt; text-indent: -9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Micheal
    L. Gifford&#9;</FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; font-size: 10pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">55</FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; font-size: 10pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Executive
    Vice President and Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 6pt; padding-right: 0.3in; padding-left: 9pt; text-align: justify; text-justify: inter-ideograph; font-size: 10pt; text-indent: -9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">David
    W. Dunlap&#9;</FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; font-size: 10pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">70</FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; font-size: 10pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Vice
    President of Finance and Administration, Chief Financial Officer and Secretary</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 6pt; padding-right: 0.3in; padding-left: 9pt; text-align: justify; text-justify: inter-ideograph; font-size: 10pt; text-indent: -9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Tim
    I. Miller&#9;</FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; font-size: 10pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">58</FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; font-size: 10pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Vice
    President of Worldwide Operations and Engineering</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 6pt; padding-right: 0.3in; padding-left: 9pt; text-align: justify; text-justify: inter-ideograph; font-size: 10pt; text-indent: -9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Leonard
    L. Ott&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">54</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Vice
    President and Chief Technical Officer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 6pt; padding-right: 0.3in; padding-left: 9pt; text-align: justify; text-justify: inter-ideograph; font-size: 10pt; text-indent: -9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Lee
    A. Baillif&#9;</FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; font-size: 10pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">52</FONT></TD>
    <TD STYLE="padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; font-size: 10pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Vice
    President and Controller</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">For
information regarding Kevin J. Mills and Micheal L. Gifford, please see &quot;Proposal One - Election of Directors&quot; above.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>David
W. Dunlap</I> has served as the Company's Vice President of Finance and Administration, Secretary and Chief Financial Officer
since February 1995 and served in the same role as a consultant from November 1994 to February 1995. Mr.&nbsp;Dunlap previously
served as Vice President of Finance and Administration and Chief Financial Officer at several public and private companies. He
is a certified public accountant (inactive), and holds an M.B.A. and a B.A. in Business Administration from the University of
California at Berkeley.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Tim
I. Miller</I> has served as the Company's Vice President of Worldwide Operations since March 2003, responsible for the Company's
worldwide manufacturing operations and assumed the additional role of Vice President of Engineering on April 1, 2009. Mr. Miller
served as Vice President of Worldwide Operations as a consultant to the Company from January 2003 to March 2003. Mr.&nbsp;Miller
holds a B.S. degree with an emphasis in Business Administration and Political Science from San Jose State University.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Leonard
L. Ott</I> has served as the Company's Vice President and Chief Technical Officer since October 2000 and previously served as
Vice President of Engineering from December 1998 to October 2000. Mr.&nbsp;Ott joined the Company in March 1994, serving in increasingly
responsible engineering positions including Director of Software Development and Director of Engineering. Mr.&nbsp;Ott also worked
as an engineering consultant to the Company, from November 1993 to March 1994. Mr.&nbsp;Ott holds a B.S. degree in Computer Science
from the University of California at Berkeley.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Lee
A. Baillif</I> has served as the Company&rsquo;s Controller since January 1, 1999 and was promoted to Vice President and Controller
on January 24, 2007. Prior to his appointment as Controller, Mr. Baillif was a member of the accounting staff from September 1994.
He holds a B.S. degree in Business and Finance from San Francisco State University.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>DIRECTOR
COMPENSATION</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: left"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Compensation
of Non-Employee Directors</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">The
following tables set forth the annual compensation paid to or accrued by the Company on behalf of the outside directors of the
Company for the fiscal year ended December&nbsp;31, 2012. </FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Name</B></FONT></P></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Fees Earned or Paid in Cash ($) (1)</B></FONT></P></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Option Awards ($)(2)</B></FONT></P></TD><TD STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-family: Times New Roman, Times, Serif; font-weight: bold; text-align: center"><P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Total ($)</B></FONT></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 46%; font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -8.65pt; padding-left: 8.65pt">Charlie Bass&#9;</TD><TD STYLE="width: 5%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 12pt Times New Roman, Times, Serif; text-align: right">16,000</TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 12pt Times New Roman, Times, Serif; text-align: right">50,200</TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">(3)</TD><TD STYLE="width: 5%; font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 11%; font: 12pt Times New Roman, Times, Serif; text-align: right">66,200</TD><TD STYLE="width: 1%; font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -8.65pt; padding-left: 8.65pt">Charles C. Emery, Jr. &#9;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">16,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">10,210</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">(4)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">26,210</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -8.65pt; padding-left: 8.65pt">Leon Malmed&#9;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">16,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">11,460</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">(5)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">27,460</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -8.65pt; padding-left: 8.65pt">Thomas O. Miller &#9;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">16,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">10,210</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">(6)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">26,210</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left; text-indent: -8.65pt; padding-left: 8.65pt">Peter Sealey&#9;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">16,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">10,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">(7)</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: right">26,000</TD><TD STYLE="font: 12pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 11pt/65% Times New Roman, Times, Serif; margin: 0 0 2pt; text-indent: 1.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">Directors
                                                                                                                                 are
                                                                                                                                 paid
                                                                                                                                 a
                                                                                                                                 fee
                                                                                                                                 for
                                                                                                                                 preparation
                                                                                                                                 and
                                                                                                                                 attendance
                                                                                                                                 at
                                                                                                                                 four
                                                                                                                                 regularly
                                                                                                                                 scheduled
                                                                                                                                 board
                                                                                                                                 meetings
                                                                                                                                 at
                                                                                                                                 the
                                                                                                                                 rate
                                                                                                                                 of
                                                                                                                                 $4,000
                                                                                                                                 per
                                                                                                                                 meeting
                                                                                                                                 attended,
                                                                                                                                 totaling
                                                                                                                                 $16,000
                                                                                                                                 per
                                                                                                                                 year.
                                                                                                                                 The
                                                                                                                                 Board
                                                                                                                                 met
                                                                                                                                 by
                                                                                                                                 telephone
                                                                                                                                 an
                                                                                                                                 additional
                                                                                                                                 5
                                                                                                                                 times
                                                                                                                                 in
                                                                                                                                 fiscal
                                                                                                                                 2012
                                                                                                                                 without
                                                                                                                                 additional
                                                                                                                                 compensation.
                                                                                                                                 All
                                                                                                                                 directors
                                                                                                                                 attended
                                                                                                                                 all
                                                                                                                                 meetings.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">(2)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">Amounts
                                                                                                                                 shown
                                                                                                                                 are
                                                                                                                                 not
                                                                                                                                 intended
                                                                                                                                 to
                                                                                                                                 reflect
                                                                                                                                 value
                                                                                                                                 actually
                                                                                                                                 received
                                                                                                                                 by
                                                                                                                                 the
                                                                                                                                 directors.
                                                                                                                                 Instead,
                                                                                                                                 the
                                                                                                                                 amounts
                                                                                                                                 shown
                                                                                                                                 are
                                                                                                                                 the
                                                                                                                                 total
                                                                                                                                 fair
                                                                                                                                 value
                                                                                                                                 of
                                                                                                                                 option
                                                                                                                                 awards
                                                                                                                                 granted
                                                                                                                                 in
                                                                                                                                 fiscal
                                                                                                                                 2012
                                                                                                                                 for
                                                                                                                                 financial
                                                                                                                                 statement
                                                                                                                                 reporting
                                                                                                                                 purposes,
                                                                                                                                 as
                                                                                                                                 determined
                                                                                                                                 pursuant
                                                                                                                                 to
                                                                                                                                 Financial
                                                                                                                                 Accounting
                                                                                                                                 Standards
                                                                                                                                 Board
                                                                                                                                 Accounting
                                                                                                                                 Standards
                                                                                                                                 Codification
                                                                                                                                 Topic
                                                                                                                                 718,
                                                                                                                                 or
                                                                                                                                 ASC
                                                                                                                                 Topic
                                                                                                                                 718
                                                                                                                                 (formerly
                                                                                                                                 Statement
                                                                                                                                 of
                                                                                                                                 Financial
                                                                                                                                 Accounting
                                                                                                                                 Standards
                                                                                                                                 No.
                                                                                                                                 123(R).
                                                                                                                                 These
                                                                                                                                 values
                                                                                                                                 are
                                                                                                                                 amortized
                                                                                                                                 as
                                                                                                                                 equity
                                                                                                                                 compensation
                                                                                                                                 expense
                                                                                                                                 over
                                                                                                                                 the
                                                                                                                                 vesting
                                                                                                                                 period
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 grants.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">(3)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">Mr.
                                                                                                                                 Bass
                                                                                                                                 was
                                                                                                                                 granted
                                                                                                                                 an
                                                                                                                                 option
                                                                                                                                 to
                                                                                                                                 purchase
                                                                                                                                 10,000
                                                                                                                                 shares
                                                                                                                                 on
                                                                                                                                 April
                                                                                                                                 25,
                                                                                                                                 2012
                                                                                                                                 with
                                                                                                                                 a
                                                                                                                                 grant
                                                                                                                                 date
                                                                                                                                 fair
                                                                                                                                 value
                                                                                                                                 of
                                                                                                                                 $12,500.
                                                                                                                                 Mr.
                                                                                                                                 Bass
                                                                                                                                 was
                                                                                                                                 granted
                                                                                                                                 supplemental
                                                                                                                                 options
                                                                                                                                 to
                                                                                                                                 purchase
                                                                                                                                 20,000
                                                                                                                                 shares
                                                                                                                                 on
                                                                                                                                 August
                                                                                                                                 1,
                                                                                                                                 2012
                                                                                                                                 with
                                                                                                                                 a
                                                                                                                                 grant
                                                                                                                                 date
                                                                                                                                 fair
                                                                                                                                 value
                                                                                                                                 of
                                                                                                                                 $14,600
                                                                                                                                 and
                                                                                                                                 a
                                                                                                                                 supplemental
                                                                                                                                 option
                                                                                                                                 to
                                                                                                                                 purchase
                                                                                                                                 35,000
                                                                                                                                 shares
                                                                                                                                 on
                                                                                                                                 November
                                                                                                                                 8,
                                                                                                                                 2012
                                                                                                                                 with
                                                                                                                                 a
                                                                                                                                 grant
                                                                                                                                 date
                                                                                                                                 fair
                                                                                                                                 value
                                                                                                                                 of
                                                                                                                                 $23,100.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">(4)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">Mr.
                                                                                                                                 Emery
                                                                                                                                 was
                                                                                                                                 granted
                                                                                                                                 an
                                                                                                                                 option
                                                                                                                                 to
                                                                                                                                 purchase
                                                                                                                                 7,000
                                                                                                                                 shares
                                                                                                                                 on
                                                                                                                                 April
                                                                                                                                 25,
                                                                                                                                 2012
                                                                                                                                 with
                                                                                                                                 a
                                                                                                                                 grant
                                                                                                                                 date
                                                                                                                                 fair
                                                                                                                                 value
                                                                                                                                 of
                                                                                                                                 $8,750.
                                                                                                                                 Mr.
                                                                                                                                 Emery
                                                                                                                                 was
                                                                                                                                 granted
                                                                                                                                 a
                                                                                                                                 supplemental
                                                                                                                                 option
                                                                                                                                 to
                                                                                                                                 purchase
                                                                                                                                 2,000
                                                                                                                                 shares
                                                                                                                                 on
                                                                                                                                 August
                                                                                                                                 1,
                                                                                                                                 2012
                                                                                                                                 with
                                                                                                                                 a
                                                                                                                                 grant
                                                                                                                                 date
                                                                                                                                 fair
                                                                                                                                 value
                                                                                                                                 of
                                                                                                                                 $1,460.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">(5)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">Mr.
                                                                                                                                 Malmed
                                                                                                                                 was
                                                                                                                                 granted
                                                                                                                                 an
                                                                                                                                 option
                                                                                                                                 to
                                                                                                                                 purchase
                                                                                                                                 8,000
                                                                                                                                 shares
                                                                                                                                 on
                                                                                                                                 April
                                                                                                                                 25,
                                                                                                                                 2012
                                                                                                                                 with
                                                                                                                                 a
                                                                                                                                 grant
                                                                                                                                 date
                                                                                                                                 fair
                                                                                                                                 value
                                                                                                                                 of
                                                                                                                                 $10,000.
                                                                                                                                 Mr.
                                                                                                                                 Malmed
                                                                                                                                 was
                                                                                                                                 granted
                                                                                                                                 a
                                                                                                                                 supplemental
                                                                                                                                 option
                                                                                                                                 to
                                                                                                                                 purchase
                                                                                                                                 2,000
                                                                                                                                 shares
                                                                                                                                 on
                                                                                                                                 August
                                                                                                                                 1,
                                                                                                                                 2012
                                                                                                                                 with
                                                                                                                                 a
                                                                                                                                 grant
                                                                                                                                 date
                                                                                                                                 fair
                                                                                                                                 value
                                                                                                                                 of
                                                                                                                                 $1,460.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(6)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Mr.
                                                                                                                          Miller
                                                                                                                          was
                                                                                                                          granted
                                                                                                                          an option
                                                                                                                          to purchase
                                                                                                                          7,000
                                                                                                                          shares
                                                                                                                          on April
                                                                                                                          25,
                                                                                                                          2012
                                                                                                                          with
                                                                                                                          a grant
                                                                                                                          fair
                                                                                                                          value
                                                                                                                          of $8,750.
                                                                                                                          Mr.
                                                                                                                          Miller
                                                                                                                          was
                                                                                                                          granted
                                                                                                                          a supplemental
                                                                                                                          option
                                                                                                                          to purchase
                                                                                                                          2,000
                                                                                                                          shares
                                                                                                                          on August
                                                                                                                          1, 2012
                                                                                                                          with
                                                                                                                          a grant
                                                                                                                          date
                                                                                                                          fair
                                                                                                                          value
                                                                                                                          of $1,460</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">(7)</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">Mr.
                                                                                                                                 Sealey
                                                                                                                                 was
                                                                                                                                 granted
                                                                                                                                 an
                                                                                                                                 option
                                                                                                                                 to
                                                                                                                                 purchase
                                                                                                                                 8,000
                                                                                                                                 shares
                                                                                                                                 on
                                                                                                                                 April
                                                                                                                                 25,
                                                                                                                                 2012
                                                                                                                                 with
                                                                                                                                 a
                                                                                                                                 grant
                                                                                                                                 date
                                                                                                                                 fair
                                                                                                                                 value
                                                                                                                                 of
                                                                                                                                 $10,000.
                                                                                                                                 </FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">The
outside directors are entitled to participate in the Company's 2004 Equity Incentive Plan. Grants of options to directors for
Board and Committee service are made annually, commencing at the start of the Board term. The grants made on April 25, 2012 were
determined as follows: each Director was awarded an option to purchase 5,000 shares for participation in Board meetings. The director
serving as the Board chairperson received an option to purchase an additional 2,000 shares. Directors serving as chairpersons
of the Audit, Nominating and Compensation Committees each received an option to purchase an additional 1,000 shares. Members serving
on the Audit Committee and on the Compensation Committee each received an option to purchase an additional 2,000 shares. As a
result, on April 25, 2012, the five outside directors as a group
were granted options to purchase an aggregate of 40,000 shares. The options vest monthly over a one year period commencing on
the date of grant. Options granted on April 25, 2012 had an exercise price of $2.22 per share, which was the fair market value
of the Common Stock on the date of grant. Supplemental grants were awarded on August 1, 2012 at a fair market grant price of $1.20
per share and on November 8, 2012 at a fair market grant price of $1.08 per share in connection with participation by each respective
director in convertible note financings. See also Proposal One &ndash; Compensation of Directors. </FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: left"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: left"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>COMPENSATION
DISCUSSION AND ANALYSIS</B></FONT></P>

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

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Compensation Committee of the Board of Directors establishes the general compensation policies of the Company as well as the compensation
plans and specific compensation levels for executive officers. Short term executive compensation consist of base salary and variable
incentive salary awards that are performance based. Long term executive compensation consists of stock option grants that vest
over time and gain in value as common stock values increase. The Committee strives to ensure that the Company's executive compensation
programs enable the Company to attract, retain, motivate and reward key people based on a pay-for-performance approach, targeted
within ten percent of market median for similar sized companies in similar fields of business when target performance objectives
are achieved, and potentially resulting in superior pay when superior performance objectives are achieved. Within this framework,
actual compensation can vary depending on each executive officer&rsquo;s position, responsibilities and overall experience. Overall,
the Company strives to provide a total compensation package that is fair, reasonable and competitive with prevailing practices
in the Company's industry. See &ldquo;Summary Compensation Table&rdquo; for actual executive compensation totals for the past
three years.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Base
salaries</I> for executive officers have not been increased since 2007 and today are below median levels for executives in similar
sized companies. In addition, executives have voluntarily taken salary reductions in periods of adverse economic conditions. See
&ldquo;Compensation of the Chief Executive Officer&rdquo; and &ldquo;Summary Compensation Table&rdquo; for base salaries paid
to executives over the past three years.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Variable
salaries</I> for the named executive officers executives are entirely performance based, and are governed by two executive compensation
plans, one for the President/CEO and one for the other named executive officers. The variable compensation award for Mr. Mills,
Socket&rsquo;s President and CEO, is measured annually under the Shareholder Value Incentive Variable Compensation Plan. Attainment
compares the average common stock price over the five trading days starting the third trading day after the release of annual
earnings to stock price targets established in the Plan. In 2012, the stock price declined in comparison to the previous year
measurement, did not meet the minimum price target threshold in the Plan, and variable earnings were zero. The other named executive
officers are measured against actual quarterly and annual revenues and earnings before interest, taxes, depreciation and amortization
(&ldquo;EBITDA&rdquo;) profits compared to the financial plan approved at the beginning of the year by the Board of Directors.
Target awards are allocated 15% to each quarter and 40% to an annual measurement, split equally between revenue attainment and
attainment of EBITDA profits. Awards may only be paid from a portion of EBITDA profits earned in the measurement period. During
2012, there were no quarterly or annual EBITDA profits and variable earnings for all named executives were zero. See &ldquo;Elements
of Executive Compensation &ndash; Variable Performance Based Incentive Awards&rdquo; for variable plan targets and payouts over
the past three years.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Long
term incentives</I> for executives and employees are awarded through annual and periodic stock option grants vesting ratably over
a period of time, typically 48 months. The grants are made from the shareholder approved 2004 Equity Incentive Plan and enable
the recipient of the grant to purchase common stock at the fair market price on the date of grant. The objectives of the stock
option grants are employee retention as options vest over a period of time, and alignment with shareholder interests by enabling
the stock option grant holder to benefit financially from stock price appreciation.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
discussions that follow reflect in more detail the goals and objectives of the Company&rsquo;s compensation policies and practices.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>COMPENSATION
PHILOSOPHY AND OBJECTIVES</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company's compensation policies, plans and programs are intended to achieve the following objectives:</FONT><P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: left; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: left; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>attract, retain, motivate and reward talented executive officers and employees;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: left; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>provide executive officers and senior employees with performance-based cash bonus opportunities linked to achievement of
financial objectives of revenue attainment and operating profitability; and</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: left; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>align the financial interests of executive officers, directors and employees with those of stockholders by providing each
through the stock option program with an equity stake in the Company.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">&nbsp;</P>
</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: left; text-indent: 0in"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company's approach to executive compensation is to set base compensation levels within ten percent of median levels reflecting
the experience and performance of each individual compared to similar positions in smaller technology based companies (although
they may be set to higher or lower levels to recognize a particular employee<I>'</I>s role, responsibilities, skills, experience
and performance), to set variable compensation targets tied to financial performance so as to motivate and reward positive performance
of executive officers in driving Company to achieve key financial objectives including revenue attainment, profitability and increases
in shareholder value, and to offer equity incentives through its stock option program to all executives commensurate with each
executive&rsquo;s level of responsibility, experience and performance while maintaining acceptable levels of dilution.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; background-color: yellow"></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company's approach to employee compensation is to set base compensation levels within ten percent of median levels up to the 75<SUP>th
</SUP>percentile for very experienced high performing employees consistent with the experience and performance of each individual
compared to similar positions in smaller technology based companies, to set variable compensation targets for senior employees
tied to financial performance to motivate and reward positive performance including the achievement of key financial objectives
of revenue attainment and profitability, and to offer equity incentives through its stock option program to all employees commensurate
with each employee&rsquo;s level of responsibility, experience and performance while maintaining acceptable levels of dilution.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>ELEMENTS
OF EXECUTIVE COMPENSATION</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
three major components of compensation for the Company's executive officers are:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(i)
base salary;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(ii)
variable performance-based cash incentive awards; and</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(iii)
long-term, equity-based incentive awards.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
base salary and variable performance-based incentive award components of the Company's compensation program are compared to other
similar smaller technology public companies set forth in the national compensation survey of Tech America, formerly the American
Electronics Association. The compensation survey is used to benchmark the Company's executive and employee salaries, as it is
a broad-based compensation survey with an emphasis on companies in the electronics industry and provides information on base salary
and variable incentive awards based on size of companies and geographic location. Offering competitive salary packages to employees
is an essential element of attracting and retaining key employees in the San Francisco Bay Area including Silicon Valley, which
has many electronics firms that compete for talent and offer a variety of employment alternatives.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Base
Salary</I>. The Compensation Committee establishes a competitive base salary for each executive officer designed to recognize
the skills and experience the individual brings to the Company and the performance contributions he or she makes. Base salaries
for executives are generally targeted within ten percent of the median compensation levels for smaller public technology companies
but may be set to higher or lower levels to recognize a particular executive&rsquo;s role, responsibilities, skills, experience
and performance.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Compensation Committee determines both the amount and timing of base salary increases for executive officers. Factors affecting
the level of base salary increases each year include the overall financial performance of the Company, changes in the base salary
compensation levels reported in the Tech America survey for executive positions in similarly sized companies, and the individual
performance of each executive. Base salaries were last increased for Executives in January 2007. Base salaries were also impacted
in 2009 and 2010 by base salary reductions of twenty-percent for executive officers and base salary reductions in the last two
months of the fourth quarter of 2012 ranging from thirty percent to forty percent for named executive officers (averaging 5.4%
to 8.7% for the year). These reductions were voluntary cost reduction measures reflecting adverse economic conditions during those
periods. Recent salary reviews show that current base salaries for the Company&rsquo;s executives are below compensation targets
derived from the Tech America survey data.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Variable
Performance Based Incentive Awards</I>.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Variable
salaries</I> for the named executive officers executives are entirely performance based, and are governed by two executive compensation
plans, one for the President/CEO and one for the other named executive officers. The variable compensation award for Mr. Mills,
Socket&rsquo;s President and CEO, is measured annually under the Shareholder Value Incentive Variable Compensation Plan. Attainment
compares the average common stock price over the five trading days starting the third trading day after the release of annual
earnings to stock price targets established in the Plan. In 2012, the stock price declined in comparison to the previous year
measurement, did not meet the minimum price target threshold in the Plan, and variable earnings were zero. The other named executive
officers are measured against actual quarterly and annual revenues and earnings before interest, taxes, depreciation and amortization
(&ldquo;EBITDA&rdquo;) profits compared to the financial plan approved at the beginning of the year by the Board of Directors.
Target awards are allocated 15% to each quarter and 40% to an annual measurement, split equally between revenue attainment and
attainment of EBITDA profits. Awards may only be paid from a portion of EBITDA profits earned in the measurement period. During
2012, there were no quarterly or annual EBITDA profits and variable earnings for all named executives were zero. Actual variable
compensation payments as a percentage of variable compensation targets for the past three years are shown in the table below for
the Named Executive Officers.</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; width: 23%; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Named
    Executive Officer</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 44%; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Position(s)</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>2012</B></FONT></P></TD>
    <TD STYLE="vertical-align: top; width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>2011</B></FONT></P></TD>
    <TD STYLE="vertical-align: top; width: 11%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>2010</B></FONT></P></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 0.1in; padding-left: 0.1in; text-align: left; text-justify: inter-ideograph; text-indent: -0.1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Kevin
    J. Mills(1)&#9;<BR>
    <BR></FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">President
    and Chief Executive Officer and Director</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">zero%</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">12.8%</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Suspended</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 0.1in; text-align: left; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Micheal
    L. Gifford(2)&#9;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Executive
    Vice President and Director</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">zero%</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">12.8%</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Suspended</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1in 0 0; text-align: left; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1in 0 0; text-align: left; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">David
        W. Dunlap(3)&#9;<BR>
        <BR></FONT></P></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Vice
    President of Finance and Administration, Chief Financial Officer and Secretary</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">zero%</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">12.8%</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Suspended</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.1in; text-align: left; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Tim
    I. Miller(4)&#9;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Vice
    President of Worldwide Operations and Engineering</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">zero%</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">12.8%</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 12pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Suspended</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.1in; text-align: left; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Leonard
    L. Ott(5)&#9;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Vice
    President and Chief Technical Officer</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">zero%</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">12.8%</FONT></TD>
    <TD STYLE="vertical-align: top; padding-top: 6pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-justify: inter-ideograph; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Suspended</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Notes
follow on the next page</FONT></P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Variable
                                                                                                                               financial
                                                                                                                               incentive
                                                                                                                               compensation
                                                                                                                               target
                                                                                                                               for
                                                                                                                               Mr.
                                                                                                                               Mills
                                                                                                                               was
                                                                                                                               set
                                                                                                                               at
                                                                                                                               $100,000
                                                                                                                               for
                                                                                                                               each
                                                                                                                               of
                                                                                                                               the
                                                                                                                               years
                                                                                                                               2010
                                                                                                                               through
                                                                                                                               2012.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Variable
                                                                                                                               financial
                                                                                                                               incentive
                                                                                                                               compensation
                                                                                                                               target
                                                                                                                               for
                                                                                                                               Mr.
                                                                                                                               Gifford
                                                                                                                               was
                                                                                                                               set
                                                                                                                               at
                                                                                                                               $50,000
                                                                                                                               for
                                                                                                                               each
                                                                                                                               of
                                                                                                                               the
                                                                                                                               years
                                                                                                                               2010
                                                                                                                               through
                                                                                                                               2012.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Variable
                                                                                                                               financial
                                                                                                                               incentive
                                                                                                                               compensation
                                                                                                                               target
                                                                                                                               for
                                                                                                                               Mr.
                                                                                                                               Dunlap
                                                                                                                               was
                                                                                                                               set
                                                                                                                               at
                                                                                                                               $50,000
                                                                                                                               for
                                                                                                                               each
                                                                                                                               of
                                                                                                                               the
                                                                                                                               years
                                                                                                                               2010
                                                                                                                               through
                                                                                                                               2012.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Variable
                                                                                                                               financial
                                                                                                                               incentive
                                                                                                                               compensation
                                                                                                                               target
                                                                                                                               for
                                                                                                                               Mr.
                                                                                                                               Miller
                                                                                                                               was
                                                                                                                               set
                                                                                                                               at
                                                                                                                               $35,000
                                                                                                                               for
                                                                                                                               each
                                                                                                                               of
                                                                                                                               the
                                                                                                                               years
                                                                                                                               2010
                                                                                                                               through
                                                                                                                               2012.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Variable
                                                                                                                               financial
                                                                                                                               incentive
                                                                                                                               compensation
                                                                                                                               target
                                                                                                                               for
                                                                                                                               Mr.
                                                                                                                               Ott
                                                                                                                               was
                                                                                                                               set
                                                                                                                               at
                                                                                                                               $35,000
                                                                                                                               for
                                                                                                                               each
                                                                                                                               of
                                                                                                                               the
                                                                                                                               years
                                                                                                                               2010
                                                                                                                               through
                                                                                                                               2012.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Long-Term
Equity-Based Incentive Awards. </I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Long-Term
Equity-Based Incentive Awards are provided through the stockholder-approved 2004 Equity Incentive Plan. Although the Equity Incentive
Plan provides for a variety of equity incentive awards, to date the Compensation Committee has only awarded stock option grants
from the Equity Incentive Plan. The goal of the Company's long-term, equity-based incentive awards is to align the financial interests
of the executive officers and employees of the Company with those of stockholders and to provide each executive officer and employee
with a significant incentive to manage the Company from the perspective of an owner with an equity stake in the business. All
equity incentives are subject to vesting provisions to encourage executive officers and employees to remain employed with the
Company. The Compensation Committee determines the size of each award based on the individual&rsquo;s level of responsibility,
recent performance, his or her potential for future responsibility and promotion, the number of unvested options held by the individual
at the time of the new grant, and the size of the available stock award pool to arrive at a level that the Committee considers
appropriate to create a meaningful opportunity for equity participation by the individual.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">As
of December 31, 2012, there were 62,438 shares available for grant under the 2004 Equity Incentive Plan. In addition, the 2004
Equity Incentive Plan provides for an automatic increase each January 1<SUP>st</SUP> equal to the least of (a) 200,000 shares,
(b) 4% of the outstanding shares on that date, or (c) a lesser amount as determined by the Board of Directors. Options are granted
to executive officers, employees and consultants at the discretion of the Compensation Committee. The Board of Directors itself,
in consultation with management, grants options annually to directors for service on the Board of Directors.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Compensation Committee, in consultation with management, prepares an annual allocation plan dividing the available stock in the
grant pool among refresher grants, new employee grants, director grants and reserves. The timing, award criteria and award procedures
are discussed more fully under Equity Incentive Grant Policies in the next section. New employee grants are typically made on
the first trading day of the month on or following the date of hire. Refresher grants are made annually, typically during the
first quarter of the year. Refresher grants typically vest monthly over 48 months, contingent upon continued employment with the
Company. All grants expire ten years after the date of grant. Fully vested grants, or grants vesting over a shorter or longer
term than four years, may be awarded at the discretion of the Compensation Committee. Stock options provide a return only if the
individual remains with the Company and only if the market price of the Company&rsquo;s Common Stock appreciates during the option
term.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Compensation Committee believes that stock option grants are effective in attracting and retaining key employees, and the Company
provides initial grants to all new employees and annual refresher grants to all continuing employees with a weighting reflecting
the level of responsibility and performance of the employee. Many of the senior executives and employees have been employed by
the Company more than ten years and have amassed a number of annual stock option grants (grants expire 10 years after the date
of grant) with potential for substantial cumulative compensation if stock prices increase, thus aligning their interests with
those of stockholders. The Company believes stock options are effective long-term incentives because of the expectations of the
management team that the Company&rsquo;s products and the markets they address provide opportunities for growth that may result
in share price appreciation.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Other
Compensation. </I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Executive
officers are entitled to participate in the same health and benefit programs and 401(k) program as are available to all employees
of the Company and do not receive any perquisites from the Company.</FONT></P>

<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: normal 12pt Times New Roman, Times, Serif"><B>EQUITY
INCENTIVE GRANT POLICIES</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>General
option grant practices</I>. All stock options grants are awarded by the Compensation Committee, or by the full Board in the case
of director stock option grants. All stock options are priced at the closing market price of the Company&rsquo;s Common Stock
on the date of grant, and the actions of the Compensation Committee are documented in minutes that are retained in the minute
book of the Company. During 2012, the Compensation Committee met nine times, and stock option grants were awarded at seven of
those meetings.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Initial
stock option grants. </I>The Compensation Committee awards initial stock option grants to each new employee of the Company on
the first trading day of the month following the individual&rsquo;s commencement of employment. The size of the grant is based
on the responsibilities of the employee and as agreed to in the employee&rsquo;s employment offer. Grants for executive officers
are approved by the Compensation Committee in advance of offers being made. Grants to rank-and-file employees are made within
general guidelines reviewed and approved by the Compensation Committee, and the actual grant requires the approval of the Compensation
Committee at the time of grant. Initial grants generally vest 25% on the one year anniversary of employment and 1/48<SUP>th</SUP>
per month thereafter for a total vesting period of 48 months. The delay in initial vesting for the first twelve months of employment
provides an incentive for employee retention and ensures that the employee is familiar with the Company and its goals and objectives
prior to options vesting. During 2012, options to purchase an aggregate of 85,200 shares were awarded to 9 new employees representing
20 percent of options granted during the year.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Refresher
stock option grants</I>. The Compensation Committee awards refresher stock option grants annually and as supplemental grants based
on the recommendations of management reflecting the responsibilities and performance of each employee and the employee&rsquo;s
contributions in meeting the Company&rsquo;s goals and objectives. On February 27, 2012, the Compensation Committee awarded annual
refresher options to purchase an aggregate of 117,700 shares to 62 employees, representing 29 percent of options granted during
the year. The annual refresher grant included 44,000 shares granted to the named executive officers. In addition, during the second
half of the year, an additional 106,000 options were granted as supplemental awards representing 26 percent of options granted
during the year, including 37,900 shares to named executive officers.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Director
stock option grants</I>. A portion of the compensation of the Company&rsquo;s outside directors is in the form of an annual stock
option grant. Director grants are granted by the full Board of Directors at the first regularly scheduled board meeting following
the annual election of directors and vest monthly over the ensuing year of service. Options are awarded equally to all directors
for Board service. Additional options are awarded for Board and committee leadership positions and Committee service, as discussed
under &ldquo;<I>Director Compensation.</I>&rdquo;. On April 25, 2012, the Company granted options to purchase an aggregate of
40,000 shares to the 5 independent directors of the Company, representing 10 percent of options granted during the year. In August
and November 2012, the Board granted supplemental options to purchase 61,000 shares to directors participating in a convertible
note financing, representing 15 percent of options granted during the year.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>ACCOUNTING
AND TAX IMPLICATIONS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Accounting
for Stock Based Compensation. </I>On January 1, 2006, we adopted the provisions of Financial Accounting Standards Board Accounting
Standards Codification (ASC) Topic 718, Stock Compensation (formerly FASB Statement 123R) for the fiscal years ended December
31, 2006 and beyond. Under ASC Topic 718, the Company uses a binomial lattice valuation model to estimate fair value of stock
option grants made on or after January 1, 2006. The binomial lattice model incorporates estimates for expected volatility, risk-free
interest rates, employee exercise patterns and post-vesting employment termination behavior. These estimates affect the calculation
of the fair value of the Company&rsquo;s stock option grants. The fair value of stock option grants outstanding prior to January
1, 2006 was estimated using a Black-Scholes option pricing model. The Company adopted the modified prospective recognition method
and implemented the provisions of ASC Topic 718 (formerly under FASB Statement 123R) beginning with the first quarter of 2006.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Income
taxes. </I>The Company has not provided any executive officer or director with a gross-up or other reimbursement for tax amounts
the executive might pay pursuant to Section 280G or Section 409A of the Internal Revenue Code. Although the 2004 Equity Incentive
Plan also allows for the issuance of grants qualifying as &ldquo;performance-based compensation&rdquo; under Section 162(m) of
the Internal Revenue Code, no grants deemed performance-based compensation grants have been awarded to the executive officers
of the Company.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>COMPENSATION
OF THE CHIEF EXECUTIVE OFFICER</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company&rsquo;s Chief Executive Officer Kevin Mills is compensated under the same programs applied to all of the Executive Officers
of the Company as described under <I>Elements of Executive Compensation, </I>specifically base salary, variable performance based
compensation, and long term equity incentive awards in the form of stock option grants.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Base
Salary:</I> Mr. Mill&rsquo;s base compensation target of $190,000 is set at median levels for CEO&rsquo;s of similar sized companies
based on national compensation salary survey data from Tech America, a trade association whose membership is oriented toward companies
serving the electronics industry. His salary targets have not been adjusted since 2007 and today are below the median level for
CEO&rsquo;s of similar sized companies. Mr. Mills took voluntary reductions in his base salary of 20% in 2010 and 40% in the last
two months of 2012 (average of 8.7% for the year) in response to adverse economic conditions.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Variable
Compensation</I>. Mr. Mill&rsquo;s variable salary target of $100,000 is set above the median levels for CEO&rsquo;s of similar
sized companies based on national compensation salary survey data from Tech America. All variable compensation awards are performance
based. During 2010, the variable compensation program was suspended because of adverse financial conditions. During 2011, the
variable compensation for Mr. Mills was calculated in the same manner as for the other Named Executive Officers, with 50 percent
of his variable salary target based on revenue attainment and 50 percent of his variable salary target based on attainment of
Earnings Before Taxes, Depreciation and Amortization (EBITDA), a traditional non-GAAP measure of operating profitability, both
measured in comparison to the 2011 annual financial plan of the Company. Payments under the Management Incentive Variable Compensation
Plan were further limited by minimum performance thresholds set at 80 percent of financial plan amounts, and payments not to exceed
50 percent of EBITDA profits for the measurement period. Mr. Mills along with the other executives of the Company earned 12.8
percent of his variable target threshold in 2011. During 2012, Mr. Mills variable compensation earnings were based on increases
in shareholder value as measured by the market capitalization of the Company following the release of annual earnings in comparison
to targets established in the program. The market capitalization of the Company declined during the measurement period and did
not hit the minimum thresholds qualifying for an award, so Mr. Mill&rsquo;s variable compensation in 2012 was zero.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Long
term equity incentive awards. Mr. Mills along with all other employees received an annual refresher grant in 2012 of 10,000 shares
vesting monthly over a 48 month period and representing 2.4 percent of total shares granted in 2012. Mr. Mills also received a
supplemental refresher grant of 10,900 shares representing 2.7 percent of total shares granted in 2012.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Benefits.
Mr. Mills participates in the same benefit programs as all of the employees of the Company. The CEO&rsquo;s employment is subject
to an employment contract which provides for six months of base salary and continuation of medical benefits in the event of involuntary
termination of services other than for cause, and payment of his variable salary entitlements had he remained employed during
this period in the event of a change in control or involuntary termination. The CEO receives no perquisites.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;<FONT STYLE="font: 12pt Times New Roman, Times, Serif; text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; text-transform: uppercase"><B>Summary
Compensation Table</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>For
Fiscal Year Ended December 31, 2012</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
following table provides fiscal 2012 compensation information and comparable information for the two preceding fiscal years for
the Chief Executive Officer, Chief Financial Officer, and the three other executive officers of the Company who were the most
highly compensated in fiscal year 2012 (the &ldquo;<B>Named Executive Officers</B>&rdquo;).</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 36%; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding-left: 2.9pt"><FONT STYLE="font-size: 12pt">Name
    and Principal Position</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 12pt">Year</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 12pt">Salary<BR>
    ($)(1)</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 12pt">Option
    Awards ($)(2)</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 12pt">Non-Equity
    Incentive Plan Compensation ($)(3)</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; border-bottom: Black 1pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 12pt">Total<BR>
    ($)</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: left; padding-left: 2.9pt"><FONT STYLE="font-size: 12pt">Kevin J. Mills (4)<BR> &nbsp;&nbsp;President and Chief
    Executive Officer and Director</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 12pt">2012<BR> 2011<BR> 2010</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$173,558<BR> 190,000<BR> 156,385</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$19,780<BR> 20,717<BR> 138,472</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$0<BR> 12,787<BR> 0</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$193,338<BR> 223,504<BR> 294,857</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: left; padding-left: 2.9pt"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: left; padding-left: 2.9pt"><FONT STYLE="font-size: 12pt">Micheal L. Gifford (5)<BR> &nbsp;&nbsp;Executive Vice
    President and Director</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 12pt">2012<BR> 2011<BR> 2010</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$160,024<BR> 175,000<BR> 144,712</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$15,540<BR> 13,073<BR> 85,646</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$0<BR> 6,394<BR> 0</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$175,564<BR> 194,467<BR> 230,538</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: left; padding-left: 2.9pt"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: left; padding-left: 2.9pt"><FONT STYLE="font-size: 12pt">David W. Dunlap (6)&#9;<BR> &nbsp;&nbsp;Vice President
    of Finance and Administration, &nbsp;&nbsp;Chief Financial Officer and Secretary</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 12pt">2012<BR> 2011<BR> 2010</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$157,250<BR> 170,000<BR> 139,923</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$15,300<BR> 14,622<BR> 77,935</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$0<BR> 6,394<BR> 0</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$172,550<BR> 191,016<BR> 217,858</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: left; padding-left: 2.9pt"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: left; padding-left: 2.9pt"><FONT STYLE="font-size: 12pt">Leonard L. Ott (7)&#9;<BR> &nbsp;&nbsp;Vice
    President and Chief Technical Officer</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 12pt">2012<BR> 2011<BR> 2010</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$146,654<BR> 155,000<BR> 128,769</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$14,520<BR> 11,482<BR> 86,005</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$0<BR> 4,476<BR> 0</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$161,174<BR> 170,957<BR> 214,774</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: left; padding-left: 2.9pt"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: left; padding-left: 2.9pt"><FONT STYLE="font-size: 12pt">Tim I. Miller (8)</FONT><BR><FONT STYLE="font-size: 12pt">
    &nbsp;&nbsp;Chief Operating Officer</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 12pt">2012<BR> 2011<BR> 2010</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$144,567<BR> 155,000<BR> 119,904</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$15,760<BR> 20,155<BR> 58,723</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$0<BR> 4,476<BR> 0</FONT></TD>
    <TD><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 12pt">$160,327<BR> 179,631<BR> 178,627</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify">_____________________<FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Represents
                                                                                                                          base
                                                                                                                          salary
                                                                                                                          as described
                                                                                                                          under
                                                                                                                          <I>Compensation
                                                                                                                          Summary
                                                                                                                          and
                                                                                                                          Analysis
                                                                                                                          &mdash;
                                                                                                                          Elements
                                                                                                                          of Executive
                                                                                                                          Compensation</I>.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Represents
                                                                                                                          Long-Term,
                                                                                                                          Equity-Based
                                                                                                                          Incentive
                                                                                                                          Awards
                                                                                                                          as described
                                                                                                                          under
                                                                                                                          <I>Compensation
                                                                                                                          Summary
                                                                                                                          and
                                                                                                                          Analysis
                                                                                                                          &mdash;
                                                                                                                          Elements
                                                                                                                          of Executive
                                                                                                                          Compensation</I>.
                                                                                                                          Amounts
                                                                                                                          shown
                                                                                                                          do not
                                                                                                                          reflect
                                                                                                                          compensation
                                                                                                                          actually
                                                                                                                          received
                                                                                                                          by the
                                                                                                                          executive
                                                                                                                          officer.
                                                                                                                          Instead,
                                                                                                                          the
                                                                                                                          amounts
                                                                                                                          shown
                                                                                                                          are
                                                                                                                          the
                                                                                                                          total
                                                                                                                          grant
                                                                                                                          date
                                                                                                                          valuations
                                                                                                                          of stock
                                                                                                                          option
                                                                                                                          grants
                                                                                                                          awarded
                                                                                                                          during
                                                                                                                          the
                                                                                                                          year
                                                                                                                          as determined
                                                                                                                          pursuant
                                                                                                                          to ASC
                                                                                                                          Topic
                                                                                                                          718.
                                                                                                                          The
                                                                                                                          valuations
                                                                                                                          are
                                                                                                                          expensed
                                                                                                                          for
                                                                                                                          financial
                                                                                                                          reporting
                                                                                                                          purposes
                                                                                                                          over
                                                                                                                          the
                                                                                                                          vesting
                                                                                                                          period
                                                                                                                          of the
                                                                                                                          grant.
                                                                                                                          Option
                                                                                                                          awards
                                                                                                                          in 2010
                                                                                                                          include
                                                                                                                          the
                                                                                                                          fair
                                                                                                                          market
                                                                                                                          value
                                                                                                                          of options
                                                                                                                          granted
                                                                                                                          prior
                                                                                                                          to 2009
                                                                                                                          that
                                                                                                                          were
                                                                                                                          exchanged
                                                                                                                          on July
                                                                                                                          1, 2010
                                                                                                                          for
                                                                                                                          new
                                                                                                                          grants
                                                                                                                          with
                                                                                                                          a two
                                                                                                                          year
                                                                                                                          vesting
                                                                                                                          period
                                                                                                                          under
                                                                                                                          an exchange
                                                                                                                          program
                                                                                                                          approved
                                                                                                                          by the
                                                                                                                          stockholders
                                                                                                                          at the
                                                                                                                          2010
                                                                                                                          annual
                                                                                                                          meeting
                                                                                                                          of stockholders.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(3)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Represents
                                                                                                                          Variable
                                                                                                                          Incentive
                                                                                                                          Awards
                                                                                                                          as described
                                                                                                                          under
                                                                                                                          <I>Compensation
                                                                                                                          Summary
                                                                                                                          and
                                                                                                                          Analysis
                                                                                                                          &mdash;
                                                                                                                          Elements
                                                                                                                          of Executive
                                                                                                                          Compensation</I>.
                                                                                                                          All
                                                                                                                          variable
                                                                                                                          compensation
                                                                                                                          programs
                                                                                                                          for
                                                                                                                          executives
                                                                                                                          were
                                                                                                                          suspended
                                                                                                                          in 2010
                                                                                                                          as an
                                                                                                                          expense
                                                                                                                          reduction.
                                                                                                                          </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(4)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Mr.
                                                                                                                          Mills&rsquo;
                                                                                                                          salary
                                                                                                                          for
                                                                                                                          2012
                                                                                                                          and
                                                                                                                          2010
                                                                                                                          included
                                                                                                                          a base
                                                                                                                          salary
                                                                                                                          reduction
                                                                                                                          of 8.7%
                                                                                                                          and
                                                                                                                          20%
                                                                                                                          respectively
                                                                                                                          as an
                                                                                                                          expense
                                                                                                                          reduction
                                                                                                                          measure.
                                                                                                                          The
                                                                                                                          fair
                                                                                                                          market
                                                                                                                          value
                                                                                                                          of option
                                                                                                                          awards
                                                                                                                          in 2010
                                                                                                                          included
                                                                                                                          $119,572
                                                                                                                          for
                                                                                                                          options
                                                                                                                          exchanged.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(5)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Mr.
                                                                                                                          Gifford&rsquo;s
                                                                                                                          salary
                                                                                                                          for
                                                                                                                          2012
                                                                                                                          and
                                                                                                                          2010
                                                                                                                          included
                                                                                                                          a base
                                                                                                                          salary
                                                                                                                          reduction
                                                                                                                          of 8.7%
                                                                                                                          and
                                                                                                                          20%
                                                                                                                          respectively
                                                                                                                          as an
                                                                                                                          expense
                                                                                                                          reduction
                                                                                                                          measure.
                                                                                                                          The
                                                                                                                          fair
                                                                                                                          market
                                                                                                                          value
                                                                                                                          of option
                                                                                                                          awards
                                                                                                                          in 2010
                                                                                                                          included
                                                                                                                          $71,471
                                                                                                                          for
                                                                                                                          options
                                                                                                                          exchanged.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(6)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Mr.
                                                                                                                          Dunlap&rsquo;s
                                                                                                                          salary
                                                                                                                          for
                                                                                                                          2012
                                                                                                                          and
                                                                                                                          2010
                                                                                                                          included
                                                                                                                          a base
                                                                                                                          salary
                                                                                                                          reduction
                                                                                                                          of 7.5%
                                                                                                                          and
                                                                                                                          20%
                                                                                                                          respectively
                                                                                                                          as an
                                                                                                                          expense
                                                                                                                          reduction
                                                                                                                          measure.
                                                                                                                          The
                                                                                                                          fair
                                                                                                                          market
                                                                                                                          value
                                                                                                                          of option
                                                                                                                          awards
                                                                                                                          in 2010
                                                                                                                          included
                                                                                                                          $63,760
                                                                                                                          for
                                                                                                                          options
                                                                                                                          exchanged.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(7)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Mr.
                                                                                                                          Ott&rsquo;s
                                                                                                                          salary
                                                                                                                          for
                                                                                                                          2012
                                                                                                                          and
                                                                                                                          2010
                                                                                                                          included
                                                                                                                          a base
                                                                                                                          salary
                                                                                                                          reduction
                                                                                                                          of 5.4%
                                                                                                                          and
                                                                                                                          20%
                                                                                                                          respectively
                                                                                                                          as an
                                                                                                                          expense
                                                                                                                          reduction
                                                                                                                          measure.
                                                                                                                          The
                                                                                                                          fair
                                                                                                                          market
                                                                                                                          value
                                                                                                                          of option
                                                                                                                          awards
                                                                                                                          in 2010
                                                                                                                          included
                                                                                                                          $71,830
                                                                                                                          for
                                                                                                                          options
                                                                                                                          exchanged.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(8)</FONT></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Mr.
                                                                                                                          Miller&rsquo;s
                                                                                                                          salary
                                                                                                                          for
                                                                                                                          2012
                                                                                                                          and
                                                                                                                          2010
                                                                                                                          included
                                                                                                                          a base
                                                                                                                          salary
                                                                                                                          reduction
                                                                                                                          of 6.7%
                                                                                                                          and
                                                                                                                          20%
                                                                                                                          respectively
                                                                                                                          as an
                                                                                                                          expense
                                                                                                                          reduction
                                                                                                                          measure.
                                                                                                                          The
                                                                                                                          fair
                                                                                                                          market
                                                                                                                          value
                                                                                                                          of option
                                                                                                                          awards
                                                                                                                          in 2010
                                                                                                                          included
                                                                                                                          $35,098
                                                                                                                          for
                                                                                                                          options
                                                                                                                          exchanged.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>GRANTS
OF PLAN-BASED AWARDS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>For
Fiscal Year Ended December 31, 2012</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
following table shows for the fiscal year ended December 31, 2012 certain information regarding options granted to the Named Executive
Officers. Options were granted as described under <I>Compensation Summary and Analysis &mdash; Elements of Executive Compensation
&mdash; Long-Term, Equity-Based Incentive Awards</I> and <I>&mdash; Equity Incentive Grant Policies.</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 161px; padding-right: 2.9pt; padding-left: 2.9pt; border-bottom: Black 1pt solid"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Name</B></FONT></P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="width: 64px; padding-right: 5.75pt; padding-left: 5.75pt; border-bottom: Black 1pt solid"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Grant
                                                                         Dates</B></FONT></P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 3pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>All
                                                          Other Option Awards: Number of Securities Underlying Options (#)</B></FONT></P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="width: 132px; padding-right: 5.75pt; padding-left: 5.75pt; border-bottom: Black 1pt solid"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Exercise
                                                                          or Base Price of Option Awards ($/share)</B></FONT></P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="width: 135px; padding-right: 2.9pt; padding-left: 2.9pt; border-bottom: Black 1pt solid"><P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Grant
                                                                        Date Fair Value of Stock and Option Awards ($)(1)</B></FONT></P></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt; width: 161px"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Kevin
    J. Mills&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt; width: 64px"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2/27/2012</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">10,000</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; width: 132px; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$2.36</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt; width: 135px"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;$&#9;
    13,200</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Kevin
    J. Mills&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8/1/2012</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,000</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$1.20</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;$&#9;
    &nbsp;&nbsp;1,240</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Kevin
    J. Mills&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">11/9/2012</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,900</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$1.08</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;$&#9;
    &nbsp;&nbsp;5,340</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Micheal
    L. Gifford&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2/27/2012</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,500</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$2.36</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;$&#9;
    11,220</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Micheal
    L. Gifford&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">11/9/2012</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">7,200</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$1.08</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;$&#9;
    &nbsp;&nbsp;4,320</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">David
    W. Dunlap&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2/27/2012</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,500</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$2.36</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;$&#9;
    11,220</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">David
    W. Dunlap&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">11/9/2012</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">6,800</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$1.08</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;$&#9;
    &nbsp;&nbsp;4,080</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Leonard
    L. Ott&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2/27/2012</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,500</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$2.36</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;$&#9;
    11,220</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Leonard
    L. Ott&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">11/9/2012</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">5,500</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$1.08</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;$&#9;
    &nbsp;&nbsp;3,300</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Tim
    I. Miller&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2/27/2012
</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8,500</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$2.36</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;$&#9;
    11,220</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Tim
    I. Miller&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8/1/2012
    </FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2,000</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$1.20</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;$&#9;
    &nbsp;&nbsp;1,240</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Tim
    I. Miller&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">11/9/2012
    </FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">5,500</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: center; text-justify: inter-ideograph; font-size: 9pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$1.08</FONT></TD>
    <TD STYLE="padding-right: 2.9pt; padding-left: 2.9pt; text-align: right; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;$&#9;
    &nbsp;&nbsp;3,300</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">_____________________</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
                                                                                                                          value
                                                                                                                          of option
                                                                                                                          awards
                                                                                                                          is based
                                                                                                                          on the
                                                                                                                          fair
                                                                                                                          value
                                                                                                                          as of
                                                                                                                          the
                                                                                                                          grant
                                                                                                                          date
                                                                                                                          of such
                                                                                                                          award,
                                                                                                                          determined
                                                                                                                          pursuant
                                                                                                                          to ASC
                                                                                                                          Topic
                                                                                                                          718
                                                                                                                          (formerly
                                                                                                                          Statement
                                                                                                                          of Financial
                                                                                                                          Accounting
                                                                                                                          Standards
                                                                                                                          No.
                                                                                                                          123R).
                                                                                                                          The
                                                                                                                          exercise
                                                                                                                          price
                                                                                                                          for
                                                                                                                          all
                                                                                                                          options
                                                                                                                          granted
                                                                                                                          to the
                                                                                                                          Named
                                                                                                                          Executive
                                                                                                                          Officers
                                                                                                                          is equal
                                                                                                                          to the
                                                                                                                          closing
                                                                                                                          market
                                                                                                                          price
                                                                                                                          for
                                                                                                                          the
                                                                                                                          Company&rsquo;s
                                                                                                                          Common
                                                                                                                          Stock
                                                                                                                          on the
                                                                                                                          grant
                                                                                                                          date
                                                                                                                          as reported
                                                                                                                          on the
                                                                                                                          OTC
                                                                                                                          Market.
                                                                                                                          Regardless
                                                                                                                          of whatever
                                                                                                                          value
                                                                                                                          is placed
                                                                                                                          on a
                                                                                                                          stock
                                                                                                                          option
                                                                                                                          on the
                                                                                                                          grant
                                                                                                                          date,
                                                                                                                          the
                                                                                                                          actual
                                                                                                                          value
                                                                                                                          of the
                                                                                                                          option
                                                                                                                          to the
                                                                                                                          recipient
                                                                                                                          will
                                                                                                                          depend
                                                                                                                          on the
                                                                                                                          market
                                                                                                                          value
                                                                                                                          of the
                                                                                                                          Company&rsquo;s
                                                                                                                          Common
                                                                                                                          Stock
                                                                                                                          at such
                                                                                                                          date
                                                                                                                          in the
                                                                                                                          future
                                                                                                                          when
                                                                                                                          the
                                                                                                                          option
                                                                                                                          is exercised.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>OUTSTANDING
EQUITY AWARDS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>At
Fiscal 2012 Year-End</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; color: windowtext">The
following table set forth certain information concerning outstanding equity awards held by </FONT><FONT STYLE="font: 12pt Times New Roman, Times, Serif">the
Named Executive Officers<FONT STYLE="color: windowtext"> at the end of the fiscal year ended December 31, 2012.</FONT></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="color: windowtext"></FONT></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt; width: 32%; vertical-align: middle"></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph; width: 16%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph; width: 20%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph; width: 14%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph; width: 18%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD ROWSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt"><B>Name</B></FONT></P></TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt"><B>Option
                                                                      Awards</B></FONT></P></TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt"><B>Number
                                                                               of Securities Underlying Unexercised Options -
                                                                               Exercisable (#)(1)</B></FONT></P></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt"><B>Number
                                                                               of Securities Underlying Unexercised Options -
                                                                               Unexercisable (#)(1)(2)</B></FONT></P></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt"><B>Option
                                                                               Exercise Price ($)(3)</B></FONT></P></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt"><B>Option
                                                                               Expiration Date(4)</B></FONT></P></TD>
    <TD COLSPAN="2" STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; text-justify: inter-ideograph; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.15in; padding-left: 5.4pt; font-size: 9pt"><FONT STYLE="font-size: 10pt">Kevin J. Mills</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">20,213</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1,347</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1.96</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2/23/2019</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">8,625</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">3.45</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6/1/2019</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6,250</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">3,750</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2.74</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6/1/2020</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">87,997</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">703</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">3.04</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">7/1/2020</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">8,715</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">11,205</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1.82</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2/22/2021</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;1,875</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;8,125</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;2.36</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2/27/2022</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2,000</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;1.20</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">8/1/2022</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;1,483</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;7,417</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;1.08</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">11/9/2022</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.15in; padding-left: 5.4pt; font-size: 9pt"><FONT STYLE="font-size: 10pt">Micheal L. Gifford</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">5,544</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">924</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1.96</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2/23/2019</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">5,313</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">3.45</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6/1/2019</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2,826</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2,812</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2.74</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6/1/2020</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">59,041</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">609</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">3.04</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">7/1/2020</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">5,499</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">7,071</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1.82</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2/22/2021</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;1,594</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;6,906</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;2.36</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">2/27/2022</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;1,200</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;6,000</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;1.08</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">11/9/2022</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 -22pt; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: windowtext">&nbsp;Table
continued on next page. Notes are at the end of the table.</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="color: windowtext">&nbsp;</FONT></FONT></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt; width: 32%; vertical-align: middle"><FONT STYLE="font-size: 10pt">Table
    continued from previous page</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph; width: 16%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph; width: 20%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph; width: 14%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph; width: 18%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD ROWSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt"><B>Name</B></FONT></P></TD>
    <TD COLSPAN="4" STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt"><B>Option
                                                                      Awards</B></FONT></P></TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt"><B>Number
                                                                               of Securities Underlying Unexercised Options -
                                                                               Exercisable (#)(1)</B></FONT></P></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt"><B>Number
                                                                               of Securities Underlying Unexercised Options -
                                                                               Unexercisable (#)(1)(2)</B></FONT></P></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt"><B>Option
                                                                               Exercise Price ($)(3)</B></FONT></P></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font-size: 10pt"><B>Option
                                                                               Expiration Date(4)</B></FONT></P></TD>
    <TD COLSPAN="2" STYLE="font: 11pt Times New Roman, Times, Serif; text-align: justify; text-justify: inter-ideograph; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-justify: inter-ideograph; font-size: 9pt; vertical-align: middle">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.15in; padding-left: 5.4pt; font-size: 9pt"><FONT STYLE="font-size: 10pt">David W. Dunlap</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">13,763</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">917</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1.96</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2/23/2019</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">5,250</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">3.45</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6/1/2019</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">4,688</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2,812</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2.74</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6/1/2020</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">53,938</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">562</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">3.04</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">7/1/2020</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6,151</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">7,909</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1.82</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2/22/2021</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;1,594</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;6,906</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;2.36</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;2/27/2022</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;1,133</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;5,667</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;1.08</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;11/9/2022</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.15in; padding-left: 5.4pt; font-size: 9pt"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Leonard L. Ott</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">11,156</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">744</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1.96</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2/23/2019</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">4,125</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">3.45</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6/1/2019</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">4,688</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2,812</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2.74</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6/1/2020</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">54,131</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">469</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">3.04</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">7/1/2020</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">4,830</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6,210</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1.82</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2/22/2021</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;1,594</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;6,906</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;2.36</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;2/27/2022</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;917</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;4,583</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;1.08</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;11/9/2022</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.15in; padding-left: 5.4pt; font-size: 9pt">Tim I. Miller</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">11,625</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">775</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1.96</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2/23/2019</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">4,125</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">3.45</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6/1/2019</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">7,813</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">4,687</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2.74</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6/1/2020</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">38,731</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">469</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">3.04</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">7/1/2020</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">8,479</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">10,901</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1.82</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2/22/2021</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1,594</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">6,906</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2.36</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2/27/2022</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">2,000</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">-</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1.20</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">8/1/2022</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-justify: inter-ideograph; font-size: 9pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">917</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">4,583</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">1.08</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-justify: inter-ideograph"><FONT STYLE="font-size: 10pt">11/9/2022</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt/65% Times New Roman, Times, Serif; margin: 0 0 2pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">_____________________</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Options
                                                                                                                          were
                                                                                                                          granted
                                                                                                                          as described
                                                                                                                          under
                                                                                                                          Compensation
                                                                                                                          Summary
                                                                                                                          and
                                                                                                                          Analysis
                                                                                                                          &mdash;
                                                                                                                          Elements
                                                                                                                          of Executive
                                                                                                                          Compensation
                                                                                                                          &mdash;
                                                                                                                          Long-Term,
                                                                                                                          Equity-Based
                                                                                                                          Incentive
                                                                                                                          Awards
                                                                                                                          and
                                                                                                                          &mdash;
                                                                                                                          Equity
                                                                                                                          Incentive
                                                                                                                          Grant
                                                                                                                          Policies.
                                                                                                                          The
                                                                                                                          vesting
                                                                                                                          period
                                                                                                                          and
                                                                                                                          vesting
                                                                                                                          start
                                                                                                                          date
                                                                                                                          were
                                                                                                                          established
                                                                                                                          by the
                                                                                                                          Compensation
                                                                                                                          Committee.
                                                                                                                          Shares
                                                                                                                          unexercisable
                                                                                                                          were
                                                                                                                          not
                                                                                                                          vested
                                                                                                                          at December
                                                                                                                          31,
                                                                                                                          2012.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Grant
                                                                                                                          dates
                                                                                                                          and
                                                                                                                          vesting
                                                                                                                          period
                                                                                                                          information
                                                                                                                          for
                                                                                                                          all
                                                                                                                          grants
                                                                                                                          not
                                                                                                                          fully
                                                                                                                          vested
                                                                                                                          as of
                                                                                                                          December
                                                                                                                          31,
                                                                                                                          2012
                                                                                                                          are
                                                                                                                          as follows:</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 9pt; text-align: center; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Grant Date</FONT></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid; vertical-align: top">Expiration Date</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1pt solid; vertical-align: top">Vesting Start Date</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid; vertical-align: top">Months to fully vest</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 22%; text-align: center; text-indent: 0in; vertical-align: top">2/23/2009</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 21%; text-align: center; text-indent: 0in; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2/23/2019</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 21%; text-align: center; text-indent: 0in; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;3/1/2009</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="width: 19%; text-align: center; vertical-align: top">48</TD><TD STYLE="width: 1%; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">6/1/2010</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6/1/2020</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;6/1/2010</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="text-align: center; vertical-align: top">48</TD><TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">7/1/2010</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7/1/2020</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;7/1/2010</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="text-align: center; vertical-align: top">32</TD><TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">2/22/2011</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2/22/2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;3/1/2011</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="text-align: center; vertical-align: top">48</TD><TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">2/27/2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2/27/2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;3/1/2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="text-align: center; vertical-align: top">48</TD><TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">11/9/2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11/9/2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; text-indent: 0in; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;11/9/2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="text-align: center; vertical-align: top">6</TD><TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD></TR>
</TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Exercise
                                                                                                                          prices
                                                                                                                          are
                                                                                                                          set
                                                                                                                          at the
                                                                                                                          closing
                                                                                                                          price
                                                                                                                          of the
                                                                                                                          Company&rsquo;s
                                                                                                                          Common
                                                                                                                          Stock
                                                                                                                          on the
                                                                                                                          date
                                                                                                                          of grant.
                                                                                                                          </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Options
                                                                                                                          expire
                                                                                                                          ten
                                                                                                                          years
                                                                                                                          from
                                                                                                                          the
                                                                                                                          date
                                                                                                                          of grant,
                                                                                                                          provided
                                                                                                                          that
                                                                                                                          the
                                                                                                                          executive
                                                                                                                          continues
                                                                                                                          employment
                                                                                                                          with
                                                                                                                          the
                                                                                                                          Company.
                                                                                                                          </FONT></TD></TR></TABLE>

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

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>OPTION
EXERCISES AND STOCK VESTED</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>For
Fiscal Year Ended December 31, 2012</B><BR>
<BR></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">There
were no options exercised by the Named Executive Officers during fiscal 2012.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR>
    <TD ROWSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt"><P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Name</B></FONT></P></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt"><P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Option
                                                                                             Awards</B></FONT></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt"><P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Number
                                                            of Shares Acquired on Exercise</B><BR>
                                                            <B>(#)</B></FONT></P></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt"><P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Value
                                                            Realized on Exercise</B><BR>
                                                            <B>($)(1)</B></FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 46%; padding-right: 0.15in; padding-left: 0.15in; font-size: 9pt; text-indent: -0.15in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">All
    Named Executive Officers</FONT></TD>
    <TD STYLE="width: 27%; padding-right: 5.75pt; padding-left: 5.75pt; text-align: center; text-justify: inter-ideograph; font-size: 10pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">None</FONT></TD>
    <TD STYLE="width: 27%; padding-right: 5.75pt; padding-left: 5.75pt; text-align: center; text-justify: inter-ideograph; font-size: 10pt; vertical-align: top"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">$0</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/65% Times New Roman, Times, Serif; margin: 0 0 2pt">_____________________<FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
                                                                                                                          value
                                                                                                                          realized
                                                                                                                          equals
                                                                                                                          the
                                                                                                                          difference
                                                                                                                          between
                                                                                                                          the
                                                                                                                          option
                                                                                                                          exercise
                                                                                                                          price
                                                                                                                          and
                                                                                                                          the
                                                                                                                          fair
                                                                                                                          market
                                                                                                                          value
                                                                                                                          of the
                                                                                                                          Company&rsquo;s
                                                                                                                          Common
                                                                                                                          Stock
                                                                                                                          on the
                                                                                                                          date
                                                                                                                          of exercise,
                                                                                                                          multiplied
                                                                                                                          by the
                                                                                                                          number
                                                                                                                          of shares
                                                                                                                          for
                                                                                                                          which
                                                                                                                          the
                                                                                                                          option
                                                                                                                          was
                                                                                                                          exercised.</FONT></TD></TR></TABLE>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>EQUITY
COMPENSATION PLAN INFORMATION</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
following table provides information as of December 31, 2012 about the Common Stock that may be issued under all equity compensation
plans of the Company.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 46%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 9pt; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Number
                                                                      of securities to be issued upon exercise of outstanding
                                                                      options</B></FONT></P></TD>
    <TD STYLE="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Weighted-average
                                                                      exercise price of outstanding options</B></FONT></P></TD>
    <TD STYLE="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Number
                                                                      of securities remaining available for future issuance under
                                                                      equity compensation plans</B></FONT></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.55in; padding-left: 9pt; font-size: 9pt; text-indent: -9pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Equity
    compensation plans approved by security holders (1)&#9;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 9pt; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,624,188</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 9pt; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&#9;$&nbsp;&nbsp;2.47</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 9pt; text-align: center; vertical-align: bottom"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62,438</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/85% Times New Roman, Times, Serif; margin: 0 0 2pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">_____________________</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Consists
                                                                                                                          of the
                                                                                                                          2004
                                                                                                                          Equity
                                                                                                                          Incentive
                                                                                                                          Plan.
                                                                                                                          Pursuant
                                                                                                                          to an
                                                                                                                          affirmative
                                                                                                                          vote
                                                                                                                          by security
                                                                                                                          holders
                                                                                                                          in June
                                                                                                                          2004,
                                                                                                                          an annual
                                                                                                                          increase
                                                                                                                          in the
                                                                                                                          number
                                                                                                                          of shares
                                                                                                                          authorized
                                                                                                                          under
                                                                                                                          the
                                                                                                                          2004
                                                                                                                          Equity
                                                                                                                          Incentive
                                                                                                                          Plan
                                                                                                                          is added
                                                                                                                          on the
                                                                                                                          first
                                                                                                                          day
                                                                                                                          of each
                                                                                                                          fiscal
                                                                                                                          year
                                                                                                                          equal
                                                                                                                          to the
                                                                                                                          least
                                                                                                                          of (a)
                                                                                                                          200,000
                                                                                                                          shares,
                                                                                                                          (b)
                                                                                                                          four
                                                                                                                          percent
                                                                                                                          of the
                                                                                                                          total
                                                                                                                          outstanding
                                                                                                                          shares
                                                                                                                          of the
                                                                                                                          Company&rsquo;s
                                                                                                                          Common
                                                                                                                          Stock
                                                                                                                          on that
                                                                                                                          date,
                                                                                                                          or (c)
                                                                                                                          a lesser
                                                                                                                          amount
                                                                                                                          as determined
                                                                                                                          by the
                                                                                                                          Board
                                                                                                                          of Directors.
                                                                                                                          As a
                                                                                                                          result,
                                                                                                                          a total
                                                                                                                          of 194,442
                                                                                                                          shares
                                                                                                                          became
                                                                                                                          available
                                                                                                                          for
                                                                                                                          grant
                                                                                                                          under
                                                                                                                          the
                                                                                                                          2004
                                                                                                                          Equity
                                                                                                                          Incentive
                                                                                                                          Plan
                                                                                                                          on January
                                                                                                                          1, 2013,
                                                                                                                          in addition
                                                                                                                          to those
                                                                                                                          set
                                                                                                                          forth
                                                                                                                          in the
                                                                                                                          table
                                                                                                                          above.</FONT></TD></TR></TABLE>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>COMPENSATION
COMMITTEE REPORT</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis with management.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Based
on the Compensation Committee&rsquo;s review and discussion noted above, the Compensation Committee recommended to the Board of
Directors that the Compensation Discussion and Analysis be included in this Proxy Statement on Schedule 14A.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 264pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">COMPENSATION
COMMITTEE</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 3.5in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&#9;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 264pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Peter
Sealey, Chairman</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 264pt; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Thomas
O. Miller</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&#9;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Dated:
April 11, 2013</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>COMPENSATION
COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">None
of the members of the Compensation Committee has ever been an officer or employee of the Company. No executive officer of the
Company serves as a member of the board or compensation committee of any entity that has one or more executive officers serving
as a member of the Company's Board of Directors or Compensation Committee.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>POST
EMPLOYMENT AND CHANGE-IN-CONTROL COMPENSATION</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>Change
of Control and Severance Agreements</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
February 1998, the Company adopted a bonus plan pursuant to which a bonus pool in the amount of up to 10 percent of any consideration
payable by a buyer in any acquisition of the Company is to be allocated to the executive officers and such other employees as
the Board of Directors determines in its sole discretion.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company renewed separate employment agreements, effective as of January 1, 2012, with Messrs. Kevin J. Mills, Lee A. Baillif,
David W. Dunlap, Micheal L. Gifford, Tim I. Miller, and Leonard L. Ott for a period of three years expiring December 31, 2014.
The agreements replaced agreements that expired on December 31, 2011. The agreements provide that if the Company terminates the
executive's employment without cause, the Company will pay the executive: (i)&nbsp;three months&rsquo; base salary plus one month&rsquo;s
base salary for each two years of completed employment up to a maximum of six months; (ii)&nbsp;health insurance until the earlier
of the date of the executive's eligibility for the health insurance benefits provided by another employer or the expiration of
the continuation period for base salary; (iii)&nbsp;for executives other than the CEO, the full bonus amount to which he would
have been entitled for the first quarter following termination and one-half of such bonus amount for the second quarter following
termination; and (iv)&nbsp;certain other benefits, including the ability to purchase at book value certain items of the Company's
property purchased by the Company for the executive's use, which may include a personal computer, a cellular phone and other similar
items. Commencing in 2012, the CEO bonus amount is based upon increases in shareholder value as measured by the market capitalization
of the Company which may be paid in the event of involuntary termination or a change of control as defined in the employment agreement.
The exercise period for any of the executive&rsquo;s vested stock options may also be extended up to a period not to exceed one
year based on formulas in the employment agreements. Additionally, under the 2004 Equity Incentive Plan, the rights of all optionees,
including executive officers, to exercise all their outstanding options become fully vested and immediately exercisable upon a
change of control of the Company, unless the options are assumed by the acquiring entity.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;<FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Payments
to be made to each of the Named Executive Officers following severance are estimated as follows:</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 9pt; font-weight: bold; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Compensation
                                                                      and</B></FONT><FONT STYLE="font-size: 10pt"><BR><FONT STYLE="font-family: Times New Roman, Times, Serif">
                                                                      <B>Benefits</B></FONT></FONT></P></TD><TD STYLE="font-size: 9pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 9pt; font-weight: bold; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Voluntary</B></FONT><FONT STYLE="font-size: 10pt"><BR>
                                                                                  <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Resignation</B></FONT></FONT></P></TD><TD STYLE="font-size: 9pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 9pt; font-weight: bold; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>For</B></FONT><FONT STYLE="font-size: 10pt"><BR>
                                                                                  <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Cause
                                                                                  (1)</B></FONT></FONT></P></TD><TD STYLE="font-size: 9pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 9pt; font-weight: bold; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>For</B></FONT><FONT STYLE="font-size: 10pt"><BR>
                                                                                  <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Good</B></FONT><BR>
                                                                                  <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Reason(2)</B></FONT></FONT></P></TD><TD STYLE="font-size: 9pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 9pt; font-weight: bold; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Involuntary</B></FONT><FONT STYLE="font-size: 10pt"><BR>
                                                                                  <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Without</B></FONT><BR>
                                                                                  <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Cause(2)</B></FONT></FONT></P></TD><TD STYLE="font-size: 9pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 9pt; font-weight: bold; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Involuntary</B></FONT><FONT STYLE="font-size: 10pt"><BR>
                                                                                  <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>or
                                                                                  For Good</B></FONT><BR><FONT STYLE="font-family: Times New Roman, Times, Serif">
                                                                                  <B>Reason After</B></FONT><BR><FONT STYLE="font-family: Times New Roman, Times, Serif">
                                                                                  <B>Change-in-</B></FONT><BR><FONT STYLE="font-family: Times New Roman, Times, Serif">
                                                                                  <B>Control(2)</B></FONT></FONT></P></TD><TD STYLE="font-size: 9pt; font-weight: bold"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 9pt; font-weight: bold; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center; border-bottom: Black 0.5pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Due
                                                                                  to</B></FONT><FONT STYLE="font-size: 10pt"><BR>
                                                                                  <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Death
                                                                                  or</B></FONT><BR><FONT STYLE="font-family: Times New Roman, Times, Serif">
                                                                                  <B>Disability(2)</B></FONT></FONT></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Kevin J. Mills&#9;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 40%; text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base
    Salary (3)</FONT></TD><TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">95,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">95,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">95,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 10pt">95,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variable
    Incentive (4)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">37,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">37,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">37,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">37,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Options
    (5)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HealthCare
    Benefits (6)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,819</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,819</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,819</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,819</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Perquisites
    (7)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Micheal L. Gifford&#9;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base Salary
    (3)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">87,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">87,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">87,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">87,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variable
    Incentive (4)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Options
    (5)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HealthCare
    Benefits (6)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,767</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,767</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,767</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,767</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Perquisites
    (7)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">David W. Dunlap&#9;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base Salary
    (3)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">85,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">85,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">85,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">85,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variable
    Incentive (4)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">18,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Options
    (5)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HealthCare
    Benefits (6)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,640</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,640</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,640</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,640</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Perquisites
    (7)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Timothy I.&nbsp;&nbsp;Miller&#9;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base Salary
    (3)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">77,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">77,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">77,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">77,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variable
    Incentive (4)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,125</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,125</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,125</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,125</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Options
    (5)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HealthCare
    Benefits (6)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,589</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,589</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,589</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">5,589</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Perquisites
    (7)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 10pt">Leonard L. Ott&#9;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base Salary
    (3)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">77,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">77,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">77,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">77,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variable
    Incentive (4)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,125</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,125</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,125</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">13,125</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Options
    (5)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HealthCare
    Benefits (6)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,703</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,703</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,703</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">4,703</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Perquisites
    (7)</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 11pt/85% Times New Roman, Times, Serif; margin: 0 0 2pt; text-align: justify">_____________________<FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Cause
                                                                                                                                                     is
                                                                                                                                                     defined
                                                                                                                                                     in
                                                                                                                                                     each
                                                                                                                                                     executive&rsquo;s
                                                                                                                                                     employment
                                                                                                                                                     agreement
                                                                                                                                                     as
                                                                                                                                                     gross
                                                                                                                                                     misconduct
                                                                                                                                                     or
                                                                                                                                                     fraud,
                                                                                                                                                     misappropriation
                                                                                                                                                     of
                                                                                                                                                     the
                                                                                                                                                     Company&rsquo;s
                                                                                                                                                     proprietary
                                                                                                                                                     information,
                                                                                                                                                     or
                                                                                                                                                     willful
                                                                                                                                                     and
                                                                                                                                                     continuing
                                                                                                                                                     breach
                                                                                                                                                     of
                                                                                                                                                     duties
                                                                                                                                                     following
                                                                                                                                                     notice
                                                                                                                                                     and
                                                                                                                                                     a
                                                                                                                                                     cure
                                                                                                                                                     period.
                                                                                                                                                     </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All
                                                                                                                                                     reasons
                                                                                                                                                     for
                                                                                                                                                     termination
                                                                                                                                                     except
                                                                                                                                                     voluntary
                                                                                                                                                     resignation
                                                                                                                                                     or
                                                                                                                                                     termination
                                                                                                                                                     by
                                                                                                                                                     the
                                                                                                                                                     Company
                                                                                                                                                     for
                                                                                                                                                     cause
                                                                                                                                                     are
                                                                                                                                                     covered
                                                                                                                                                     under
                                                                                                                                                     the
                                                                                                                                                     terms
                                                                                                                                                     of
                                                                                                                                                     the
                                                                                                                                                     employment
                                                                                                                                                     agreement
                                                                                                                                                     as
                                                                                                                                                     either
                                                                                                                                                     resignation
                                                                                                                                                     by
                                                                                                                                                     the
                                                                                                                                                     executive
                                                                                                                                                     for
                                                                                                                                                     good
                                                                                                                                                     reason
                                                                                                                                                     or
                                                                                                                                                     involuntary
                                                                                                                                                     termination
                                                                                                                                                     by
                                                                                                                                                     the
                                                                                                                                                     Company
                                                                                                                                                     without
                                                                                                                                                     cause.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Except
                                                                                                                                                     in
                                                                                                                                                     the
                                                                                                                                                     case
                                                                                                                                                     of
                                                                                                                                                     voluntary
                                                                                                                                                     resignation
                                                                                                                                                     or
                                                                                                                                                     termination
                                                                                                                                                     for
                                                                                                                                                     cause,
                                                                                                                                                     base
                                                                                                                                                     salary
                                                                                                                                                     is
                                                                                                                                                     continued
                                                                                                                                                     from
                                                                                                                                                     the
                                                                                                                                                     date
                                                                                                                                                     of
                                                                                                                                                     termination
                                                                                                                                                     for
                                                                                                                                                     three
                                                                                                                                                     months
                                                                                                                                                     plus
                                                                                                                                                     one
                                                                                                                                                     month
                                                                                                                                                     for
                                                                                                                                                     each
                                                                                                                                                     two
                                                                                                                                                     years
                                                                                                                                                     of
                                                                                                                                                     completed
                                                                                                                                                     service
                                                                                                                                                     up
                                                                                                                                                     to
                                                                                                                                                     a
                                                                                                                                                     maximum
                                                                                                                                                     of
                                                                                                                                                     six
                                                                                                                                                     months.
                                                                                                                                                     All
                                                                                                                                                     named
                                                                                                                                                     executive
                                                                                                                                                     officers
                                                                                                                                                     would
                                                                                                                                                     be
                                                                                                                                                     entitled
                                                                                                                                                     to
                                                                                                                                                     the
                                                                                                                                                     maximum
                                                                                                                                                     severance
                                                                                                                                                     period
                                                                                                                                                     of
                                                                                                                                                     six
                                                                                                                                                     months.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Except
                                                                                                                                                     in
                                                                                                                                                     the
                                                                                                                                                     cases
                                                                                                                                                     of
                                                                                                                                                     voluntary
                                                                                                                                                     resignation
                                                                                                                                                     or
                                                                                                                                                     termination
                                                                                                                                                     for
                                                                                                                                                     cause,
                                                                                                                                                     scheduled
                                                                                                                                                     variable
                                                                                                                                                     incentive
                                                                                                                                                     payments
                                                                                                                                                     are
                                                                                                                                                     paid
                                                                                                                                                     which
                                                                                                                                                     equal
                                                                                                                                                     100%
                                                                                                                                                     of
                                                                                                                                                     the
                                                                                                                                                     bonus
                                                                                                                                                     to
                                                                                                                                                     which
                                                                                                                                                     the
                                                                                                                                                     executive
                                                                                                                                                     would
                                                                                                                                                     have
                                                                                                                                                     otherwise
                                                                                                                                                     been
                                                                                                                                                     entitled
                                                                                                                                                     for
                                                                                                                                                     the
                                                                                                                                                     quarter
                                                                                                                                                     of
                                                                                                                                                     termination
                                                                                                                                                     and
                                                                                                                                                     50%
                                                                                                                                                     of
                                                                                                                                                     such
                                                                                                                                                     bonus
                                                                                                                                                     entitlement
                                                                                                                                                     for
                                                                                                                                                     the
                                                                                                                                                     following
                                                                                                                                                     quarter.
                                                                                                                                                     Amounts
                                                                                                                                                     included
                                                                                                                                                     in
                                                                                                                                                     this
                                                                                                                                                     table
                                                                                                                                                     assume
                                                                                                                                                     entitlements
                                                                                                                                                     equal
                                                                                                                                                     to
                                                                                                                                                     100%
                                                                                                                                                     of
                                                                                                                                                     the
                                                                                                                                                     target
                                                                                                                                                     variable
                                                                                                                                                     compensation
                                                                                                                                                     for
                                                                                                                                                     quarterly
                                                                                                                                                     results
                                                                                                                                                     in
                                                                                                                                                     effect
                                                                                                                                                     for
                                                                                                                                                     2013.
                                                                                                                                                     </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">(5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Except
                                                                                                                                                     in
                                                                                                                                                     the
                                                                                                                                                     cases
                                                                                                                                                     of
                                                                                                                                                     voluntary
                                                                                                                                                     resignation
                                                                                                                                                     or
                                                                                                                                                     termination
                                                                                                                                                     for
                                                                                                                                                     cause,
                                                                                                                                                     stock
                                                                                                                                                     options
                                                                                                                                                     vested
                                                                                                                                                     as
                                                                                                                                                     of
                                                                                                                                                     the
                                                                                                                                                     date
                                                                                                                                                     of
                                                                                                                                                     termination
                                                                                                                                                     may
                                                                                                                                                     be
                                                                                                                                                     exercised
                                                                                                                                                     for
                                                                                                                                                     a
                                                                                                                                                     period
                                                                                                                                                     of
                                                                                                                                                     up
                                                                                                                                                     to
                                                                                                                                                     one
                                                                                                                                                     year
                                                                                                                                                     based
                                                                                                                                                     on
                                                                                                                                                     formulas
                                                                                                                                                     in
                                                                                                                                                     the
                                                                                                                                                     executive&rsquo;s
                                                                                                                                                     employment
                                                                                                                                                     agreement.
                                                                                                                                                     In
                                                                                                                                                     the
                                                                                                                                                     event
                                                                                                                                                     of
                                                                                                                                                     a
                                                                                                                                                     change
                                                                                                                                                     in
                                                                                                                                                     control
                                                                                                                                                     where
                                                                                                                                                     stock
                                                                                                                                                     options
                                                                                                                                                     are
                                                                                                                                                     not
                                                                                                                                                     assumed
                                                                                                                                                     by
                                                                                                                                                     the
                                                                                                                                                     acquiring
                                                                                                                                                     entity,
                                                                                                                                                     all
                                                                                                                                                     options
                                                                                                                                                     granted
                                                                                                                                                     and
                                                                                                                                                     outstanding
                                                                                                                                                     become
                                                                                                                                                     vested
                                                                                                                                                     and
                                                                                                                                                     fully
                                                                                                                                                     exercisable.
                                                                                                                                                     In
                                                                                                                                                     the
                                                                                                                                                     event
                                                                                                                                                     of
                                                                                                                                                     termination
                                                                                                                                                     for
                                                                                                                                                     cause
                                                                                                                                                     or
                                                                                                                                                     voluntary
                                                                                                                                                     resignation,
                                                                                                                                                     stock
                                                                                                                                                     options
                                                                                                                                                     vested
                                                                                                                                                     as
                                                                                                                                                     of
                                                                                                                                                     the
                                                                                                                                                     date
                                                                                                                                                     of
                                                                                                                                                     termination
                                                                                                                                                     may
                                                                                                                                                     be
                                                                                                                                                     exercised
                                                                                                                                                     for
                                                                                                                                                     a
                                                                                                                                                     period
                                                                                                                                                     of
                                                                                                                                                     90
                                                                                                                                                     days
                                                                                                                                                     following
                                                                                                                                                     the
                                                                                                                                                     termination
                                                                                                                                                     date.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">(6)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Except
                                                                                                                                                     in
                                                                                                                                                     the
                                                                                                                                                     cases
                                                                                                                                                     of
                                                                                                                                                     voluntary
                                                                                                                                                     resignation
                                                                                                                                                     or
                                                                                                                                                     termination
                                                                                                                                                     for
                                                                                                                                                     cause,
                                                                                                                                                     healthcare
                                                                                                                                                     benefits
                                                                                                                                                     are
                                                                                                                                                     continued
                                                                                                                                                     up
                                                                                                                                                     to
                                                                                                                                                     the
                                                                                                                                                     earlier
                                                                                                                                                     of
                                                                                                                                                     the
                                                                                                                                                     expiration
                                                                                                                                                     of
                                                                                                                                                     the
                                                                                                                                                     base
                                                                                                                                                     salary
                                                                                                                                                     continuation
                                                                                                                                                     period
                                                                                                                                                     (see
                                                                                                                                                     note
                                                                                                                                                     3)
                                                                                                                                                     or
                                                                                                                                                     securing
                                                                                                                                                     other
                                                                                                                                                     employment
                                                                                                                                                     that
                                                                                                                                                     includes
                                                                                                                                                     such
                                                                                                                                                     benefits.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase">(7)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">There
                                                                                                                                                     are
                                                                                                                                                     no
                                                                                                                                                     perquisites
                                                                                                                                                     in
                                                                                                                                                     the
                                                                                                                                                     compensation
                                                                                                                                                     packages
                                                                                                                                                     of
                                                                                                                                                     any
                                                                                                                                                     of
                                                                                                                                                     the
                                                                                                                                                     executive
                                                                                                                                                     officers.</FONT></TD></TR></TABLE>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center; text-indent: 0in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>LIMITATION
OF LIABILITY AND INDEMNIFICATION MATTERS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Pursuant
to the Delaware General Corporation Law, the Company has adopted provisions in its Certificate of Incorporation that eliminate
the personal liability of directors to the Company or its stockholders for monetary damages for breach of the directors' fiduciary
duties in certain circumstances. In addition, the Company's bylaws require the Company to indemnify the Company's directors and
officers and authorize the Company to indemnify its employees and other agents to the fullest extent permitted by law.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company has entered into indemnification agreements with each of its current directors and officers that provide for indemnification
and advancement of expenses to the fullest extent permitted by Delaware law, including circumstances in which indemnification
or the advancement of expenses is discretionary under Delaware law.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company believes that the limitation of liability and indemnification provisions in its Certificate of Incorporation and bylaws
and the indemnification agreements with its directors and officers enhance its ability to continue to attract and retain qualified
individuals to serve as directors and officers. There is no pending litigation or proceeding involving a director, officer or
employee to which these provisions or agreements would apply.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>CORPORATE
GOVERNANCE</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company and its Board of Directors are committed to high standards of corporate governance as an important component in building
and maintaining stockholder value. To this end, the Company regularly reviews its corporate governance policies and practices
to ensure that its policies are consistent with such standards. The Company closely monitors guidance issued or proposed by the
Securities Exchange Commission or the Public Company Accounting Oversight Board, the listing standards of the OTC Market, the
provisions of the Sarbanes-Oxley Act, the Dodd-Frank Act and pending legislation. As a result of review of these matters, as well
as the emerging best practices of other companies, the Company has implemented the following:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Executive
Compensation Authority; Compensation Committee</I></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Compensation
                                                                                                                                 Committee
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Board
                                                                                                                                 of
                                                                                                                                 Directors
                                                                                                                                 approves
                                                                                                                                 all
                                                                                                                                 compensation
                                                                                                                                 plans
                                                                                                                                 and
                                                                                                                                 amounts
                                                                                                                                 for
                                                                                                                                 the
                                                                                                                                 executive
                                                                                                                                 officers
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Company,
                                                                                                                                 following
                                                                                                                                 consultation
                                                                                                                                 with
                                                                                                                                 management.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Compensation
                                                                                                                                 Committee
                                                                                                                                 reviews
                                                                                                                                 and
                                                                                                                                 approves
                                                                                                                                 compensation
                                                                                                                                 programs
                                                                                                                                 for
                                                                                                                                 all
                                                                                                                                 other
                                                                                                                                 employees
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Company,
                                                                                                                                 upon
                                                                                                                                 the
                                                                                                                                 recommendation
                                                                                                                                 of
                                                                                                                                 management.
                                                                                                                                 These
                                                                                                                                 reviews
                                                                                                                                 consider
                                                                                                                                 an
                                                                                                                                 assessment
                                                                                                                                 of
                                                                                                                                 whether
                                                                                                                                 such
                                                                                                                                 programs
                                                                                                                                 may
                                                                                                                                 promote
                                                                                                                                 excessive
                                                                                                                                 risk
                                                                                                                                 taking.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Compensation
                                                                                                                                 Committee
                                                                                                                                 approves
                                                                                                                                 all
                                                                                                                                 stock
                                                                                                                                 option
                                                                                                                                 grants,
                                                                                                                                 upon
                                                                                                                                 the
                                                                                                                                 recommendation
                                                                                                                                 of
                                                                                                                                 management,
                                                                                                                                 except
                                                                                                                                 director
                                                                                                                                 grants,
                                                                                                                                 which
                                                                                                                                 are
                                                                                                                                 approved
                                                                                                                                 by
                                                                                                                                 the
                                                                                                                                 full
                                                                                                                                 Board
                                                                                                                                 of
                                                                                                                                 Directors.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 charter
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Compensation
                                                                                                                                 Committee
                                                                                                                                 makes
                                                                                                                                 explicit:</FONT></TD></TR></TABLE>

<UL STYLE="margin-top: 0in; list-style-type: disc; margin-left: 22pt">

&nbsp;

<UL TYPE="CIRCLE" STYLE="margin-top: 0in">

<LI STYLE="margin: 0 0 0 22pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">the Committee&rsquo;s ability
to retain independent consultants and experts as it sees fit, at Company expense;</FONT></LI>

<LI STYLE="margin: 0 0 0 22pt"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">the Compensation Committee&rsquo;s
responsibilities to assess the risk associated with compensation programs</FONT></LI>

</UL>

</UL>

<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"></P>

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<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Director
Independence</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Board
                                                                                                                                 of
                                                                                                                                 Directors
                                                                                                                                 has
                                                                                                                                 confirmed
                                                                                                                                 that
                                                                                                                                 a
                                                                                                                                 majority
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Company's
                                                                                                                                 directors
                                                                                                                                 are
                                                                                                                                 independent,
                                                                                                                                 as
                                                                                                                                 defined
                                                                                                                                 by
                                                                                                                                 current
                                                                                                                                 SEC
                                                                                                                                 regulations
                                                                                                                                 and
                                                                                                                                 Nasdaq
                                                                                                                                 rules.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Company's
                                                                                                                                 independent
                                                                                                                                 directors
                                                                                                                                 hold
                                                                                                                                 formal
                                                                                                                                 meetings
                                                                                                                                 without
                                                                                                                                 the
                                                                                                                                 presence
                                                                                                                                 of
                                                                                                                                 management
                                                                                                                                 and
                                                                                                                                 chaired
                                                                                                                                 by
                                                                                                                                 an
                                                                                                                                 independent
                                                                                                                                 director.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Audit,
                                                                                                                                 Compensation
                                                                                                                                 and
                                                                                                                                 Nominating
                                                                                                                                 Committees
                                                                                                                                 consist
                                                                                                                                 solely
                                                                                                                                 of
                                                                                                                                 independent
                                                                                                                                 directors.
                                                                                                                                 Each
                                                                                                                                 Committee
                                                                                                                                 is
                                                                                                                                 tasked
                                                                                                                                 to
                                                                                                                                 establish
                                                                                                                                 goals,
                                                                                                                                 evaluate
                                                                                                                                 performance,
                                                                                                                                 review
                                                                                                                                 the
                                                                                                                                 adequacy
                                                                                                                                 of
                                                                                                                                 its
                                                                                                                                 Charter,
                                                                                                                                 and
                                                                                                                                 recommend
                                                                                                                                 changes
                                                                                                                                 to
                                                                                                                                 the
                                                                                                                                 Board
                                                                                                                                 of
                                                                                                                                 Directors.</FONT></TD></TR></TABLE>

<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Audit
Committee</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">All
                                                                                                                                 Audit
                                                                                                                                 Committee
                                                                                                                                 members
                                                                                                                                 possess
                                                                                                                                 the
                                                                                                                                 required
                                                                                                                                 level
                                                                                                                                 of
                                                                                                                                 financial
                                                                                                                                 literacy,
                                                                                                                                 as
                                                                                                                                 required
                                                                                                                                 by
                                                                                                                                 SEC
                                                                                                                                 regulations.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Mr.
                                                                                                                                 Bass,
                                                                                                                                 a
                                                                                                                                 member
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Audit
                                                                                                                                 Committee,
                                                                                                                                 possesses
                                                                                                                                 the
                                                                                                                                 qualifications
                                                                                                                                 of
                                                                                                                                 an
                                                                                                                                 &ldquo;audit
                                                                                                                                 committee
                                                                                                                                 financial
                                                                                                                                 expert,&rdquo;
                                                                                                                                 as
                                                                                                                                 required
                                                                                                                                 by
                                                                                                                                 SEC
                                                                                                                                 regulations.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Audit
                                                                                                                                 Committee&rsquo;s
                                                                                                                                 charter
                                                                                                                                 formalizes
                                                                                                                                 and
                                                                                                                                 makes
                                                                                                                                 explicit
                                                                                                                                 the
                                                                                                                                 following:</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                             Audit
                                                                                                                             Committee's
                                                                                                                             ability
                                                                                                                             to
                                                                                                                             retain
                                                                                                                             independent
                                                                                                                             consultants
                                                                                                                             and
                                                                                                                             experts
                                                                                                                             as
                                                                                                                             it
                                                                                                                             sees
                                                                                                                             fit,
                                                                                                                             at
                                                                                                                             Company
                                                                                                                             expense;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                             Audit
                                                                                                                             Committee's
                                                                                                                             authority
                                                                                                                             to
                                                                                                                             appoint,
                                                                                                                             review
                                                                                                                             and
                                                                                                                             assess
                                                                                                                             the
                                                                                                                             performance
                                                                                                                             of
                                                                                                                             the
                                                                                                                             Company's
                                                                                                                             independent
                                                                                                                             auditors;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                             Audit
                                                                                                                             Committee's
                                                                                                                             ability
                                                                                                                             to
                                                                                                                             hold
                                                                                                                             regular
                                                                                                                             executive
                                                                                                                             sessions
                                                                                                                             with
                                                                                                                             the
                                                                                                                             Company's
                                                                                                                             independent
                                                                                                                             auditors
                                                                                                                             and
                                                                                                                             with
                                                                                                                             the
                                                                                                                             Company&rsquo;s
                                                                                                                             Chief
                                                                                                                             Financial
                                                                                                                             Officer,
                                                                                                                             Controller
                                                                                                                             and
                                                                                                                             other
                                                                                                                             Company
                                                                                                                             officers
                                                                                                                             directly,
                                                                                                                             as
                                                                                                                             it
                                                                                                                             considers
                                                                                                                             appropriate;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                             requirement
                                                                                                                             that
                                                                                                                             the
                                                                                                                             Audit
                                                                                                                             Committee
                                                                                                                             review
                                                                                                                             and
                                                                                                                             approve
                                                                                                                             in
                                                                                                                             advance
                                                                                                                             non-audit
                                                                                                                             services
                                                                                                                             by
                                                                                                                             the
                                                                                                                             Company's
                                                                                                                             independent
                                                                                                                             auditors,
                                                                                                                             as
                                                                                                                             well
                                                                                                                             as
                                                                                                                             related
                                                                                                                             party
                                                                                                                             transactions;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                             Audit
                                                                                                                             Committee's
                                                                                                                             duty
                                                                                                                             to
                                                                                                                             maintain
                                                                                                                             a
                                                                                                                             formal
                                                                                                                             complaint
                                                                                                                             monitoring
                                                                                                                             procedure
                                                                                                                             (a
                                                                                                                             &ldquo;whistleblower&rdquo;
                                                                                                                             policy)
                                                                                                                             to
                                                                                                                             enable
                                                                                                                             confidential
                                                                                                                             and
                                                                                                                             anonymous
                                                                                                                             reporting
                                                                                                                             to
                                                                                                                             the
                                                                                                                             Audit
                                                                                                                             Committee;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                             Audit
                                                                                                                             Committee's
                                                                                                                             authority
                                                                                                                             over
                                                                                                                             the
                                                                                                                             independent
                                                                                                                             auditors'
                                                                                                                             rotation
                                                                                                                             policy;
                                                                                                                             and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                             Audit
                                                                                                                             Committee&rsquo;s
                                                                                                                             responsibilities
                                                                                                                             to
                                                                                                                             oversee
                                                                                                                             the
                                                                                                                             Company&rsquo;s
                                                                                                                             risk
                                                                                                                             management
                                                                                                                             policies
                                                                                                                             and
                                                                                                                             practices.</FONT></TD></TR></TABLE>

<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Other
Governance Matters</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Company
                                                                                                                                 has
                                                                                                                                 a
                                                                                                                                 formal
                                                                                                                                 Code
                                                                                                                                 of
                                                                                                                                 Business
                                                                                                                                 Conduct
                                                                                                                                 and
                                                                                                                                 Ethics
                                                                                                                                 that
                                                                                                                                 applies
                                                                                                                                 to
                                                                                                                                 all
                                                                                                                                 officers,
                                                                                                                                 directors
                                                                                                                                 and
                                                                                                                                 employees.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Company
                                                                                                                                 has
                                                                                                                                 a
                                                                                                                                 requirement
                                                                                                                                 that
                                                                                                                                 any
                                                                                                                                 waiver
                                                                                                                                 or
                                                                                                                                 amendment
                                                                                                                                 to
                                                                                                                                 the
                                                                                                                                 Code
                                                                                                                                 of
                                                                                                                                 Business
                                                                                                                                 Conduct
                                                                                                                                 and
                                                                                                                                 Ethics
                                                                                                                                 involving
                                                                                                                                 a
                                                                                                                                 director
                                                                                                                                 or
                                                                                                                                 officer
                                                                                                                                 be
                                                                                                                                 reviewed
                                                                                                                                 by
                                                                                                                                 the
                                                                                                                                 Nominating
                                                                                                                                 Committee
                                                                                                                                 and
                                                                                                                                 disclosed
                                                                                                                                 to
                                                                                                                                 the
                                                                                                                                 Company's
                                                                                                                                 stockholders.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Each
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Compensation
                                                                                                                                 Committee,
                                                                                                                                 Audit
                                                                                                                                 and
                                                                                                                                 Nominating
                                                                                                                                 Committees
                                                                                                                                 has
                                                                                                                                 a
                                                                                                                                 written
                                                                                                                                 charter.</FONT></TD></TR></TABLE>

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

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

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    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Company
                                                                                                                                 has
                                                                                                                                 an
                                                                                                                                 Insider
                                                                                                                                 Trading
                                                                                                                                 Policy,
                                                                                                                                 including
                                                                                                                                 control
                                                                                                                                 procedures
                                                                                                                                 to
                                                                                                                                 comply
                                                                                                                                 with
                                                                                                                                 current
                                                                                                                                 SEC
                                                                                                                                 regulations
                                                                                                                                 and
                                                                                                                                 Nasdaq
                                                                                                                                 rules.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Company
                                                                                                                                 has
                                                                                                                                 a
                                                                                                                                 policy
                                                                                                                                 that
                                                                                                                                 the
                                                                                                                                 Board
                                                                                                                                 of
                                                                                                                                 Directors
                                                                                                                                 reviews
                                                                                                                                 its
                                                                                                                                 own
                                                                                                                                 performance
                                                                                                                                 on
                                                                                                                                 an
                                                                                                                                 at
                                                                                                                                 least
                                                                                                                                 annual
                                                                                                                                 basis.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Company
                                                                                                                                 prohibits
                                                                                                                                 loans
                                                                                                                                 to
                                                                                                                                 its
                                                                                                                                 officers
                                                                                                                                 and
                                                                                                                                 directors.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.25in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Board
Leadership</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company is focused on its corporate governance practices and values independent board oversight as an essential component of strong
corporate performance to enhance stockholder value. Our commitment to independent oversight is demonstrated by the fact that all
of our directors, except for Messrs. Mills and Gifford, are independent. In addition, all of the members of our Board&rsquo;s
committees are independent. Our Board of Directors acts independently of management and regularly holds independent director sessions
without members of management present. In addition, the Company has a separate position of Chairman of the Board which is held
by Mr. Bass, an independent director, who provides additional oversight to the management of the Company. Our Board believes that
the current board leadership structure is best for the Company and its stockholders at this time as it allows the recommendations
and decisions of the President and Chief Executive Officer, who views such recommendations and decisions from a management perspective,
to be reviewed and discussed with the Chairman of the Board, who views such recommendations and decisions from the perspective
of an independent director.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.25in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Risk
Management</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.25in; text-align: justify; text-indent: -0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Company has designated its Chief Financial and Administrative Officer as its Risk Management Officer with responsibility for
identifying, assessing, monitoring and reporting risks that could potentially impact the business.</FONT></TD></TR></TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.25in; text-align: justify; text-indent: -0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Company summarizes the primary risks associated with the business in its quarterly and annual reports on Forms 10-Q and 10-K,
respectively.</TD></TR></TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.25in; text-align: justify; text-indent: -0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 Audit Committee has primary responsibility for Board oversight of risk management. The Audit Committee meets as necessary,
at least quarterly, and matters involving risk are included in the Audit Committee's agenda. The Chairman of the Audit Committee
who is also Chairman of the Board and the President and Chief Executive Officer conduct a call at least weekly to review Company
operations and such discussions include a review of risk matters as appropriate.</FONT></TD></TR></TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;<FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Compensation
Risk Considerations</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Compensation Committee has responsibility for oversight of risk management associated with compensation matters and risks relating
to compensation policies and practices are considered at each meeting of the Committee. The Committee does not believe that the
Company&rsquo;s compensation policies and practices promote risky behavior on the part of its employees as discussed below.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Compensation Committee considers, in establishing and reviewing the employee compensation programs, whether the programs encourage
unnecessary or excessive risk taking. The Company, after reviewing and discussing the compensation programs with the Compensation
and Audit Committees of the Board, believes that the programs are balanced and do not motivate or encourage unnecessary or excessive
risk taking. Base salaries are fixed in amount and thus do not encourage risk taking. While the performance-based awards focus
on achievement of short-term or annual goals, and short-term goals may encourage the taking of short-term risks at the expense
of long-term results, the Company&rsquo;s performance-based award programs represent a small percentage of employees&rsquo; total
compensation opportunities and results are closely monitored at both management and board levels. The Company believes that the
programs appropriately balance risk and the desire to focus employees on specific short-term goals important to the Company&rsquo;s
success, and that they do not encourage unnecessary or excessive risk taking.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Compensation
provided to employees in the form of long-term equity awards through stock option grants are important to help further align employees&rsquo;
interests with those of the Company&rsquo;s stockholders. The Company believes that these awards do not encourage unnecessary
or excessive risk taking since the ultimate value of the awards is tied to the Company&rsquo;s stock price, and since awards are
subject to long-term vesting schedules to help ensure that executives have significant value tied to long-term stock price performance.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">More
details on the Company's corporate governance initiatives, including copies of its Code of Business Conduct and Ethics and each
of the Committee charters can be found in the &quot;Corporate Governance&quot; section of the Company's web site at http://www.mkr-group.com/SCKT/board_committee.html.</FONT></P>

<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Policy
for Director Recommendations and Nominations</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Nominating Committee considers candidates for Board membership suggested by Board members, management and the Company's stockholders.
It is the policy of the Nominating Committee to consider recommendations for candidates to the Board of Directors from stockholders
holding no less than five percent of the total outstanding shares of the Company&rsquo;s Common Stock who have held such shares
continuously for at least 12 months prior to the date of the submission of the recommendation. The Nominating Committee will consider
persons recommended by the Company's stockholders in the same manner as nominees recommended by members of the Board of Directors
or management.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">A
stockholder who desires to recommend a candidate for election to the Board of Directors should direct the recommendation in written
correspondence by letter to the Company, addressed to:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 1.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Chairman
of the Nominating Committee</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">c/o
Corporate Secretary</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Socket
Mobile, Inc.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">39700
Eureka Drive</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Newark,
CA 94560</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
notice must include:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">the
                                                                                                                                 candidate's name and home and business contact information;</TD></TR></TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">detailed
                                                                                                                                 biographical data and relevant qualifications;</TD></TR></TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">a
                                                                                                                                 signed letter from the candidate confirming his or her willingness to serve;</TD></TR></TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">information
                                                                                                                                 regarding any relationships between the candidate and the Company within the last three years; and</TD></TR></TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">evidence
                                                                                                                                 of the required ownership of Common Stock by the recommending stockholder(s).</TD></TR></TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>
















<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
addition, a stockholder may nominate a person directly for election to the Board of Directors at the annual meeting of the Company's
stockholders, provided the stockholder complies with the requirements set forth in the Company's bylaws and the rules and regulations
of the Securities and Exchange Commission related to stockholder proposals. The process for properly submitting a stockholder
proposal, including a proposal to nominate a person for election to the Board of Directors at an annual meeting, is described
on Page 2 in the section entitled &quot;<I>Deadline for Receipt of Stockholder Proposals to be Included in the Company's Proxy
Materials</I>.&quot;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Where
the Nominating Committee has either identified a prospective nominee or determines that an additional or replacement director
is required, the Nominating Committee may take such measures that it considers appropriate in connection with its evaluation of
a director candidate, including candidate interviews, inquiry of the person or persons making the recommendation or nomination,
engagement of an outside search firm to gather additional information, or reliance on the knowledge of the members of the committee,
the Board of Directors or management. In its evaluation of director candidates, including the members of the Board of Directors
eligible for re-election, the Nominating Committee considers a number of factors, including the following:</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 current
                                                                                                                                 size
                                                                                                                                 and
                                                                                                                                 composition
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Board
                                                                                                                                 of
                                                                                                                                 Directors
                                                                                                                                 and
                                                                                                                                 the
                                                                                                                                 needs
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Board
                                                                                                                                 of
                                                                                                                                 Directors
                                                                                                                                 and
                                                                                                                                 its
                                                                                                                                 various
                                                                                                                                 committees.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Such
                                                                                                                                 factors
                                                                                                                                 as
                                                                                                                                 judgment,
                                                                                                                                 independence,
                                                                                                                                 character
                                                                                                                                 and
                                                                                                                                 integrity,
                                                                                                                                 area
                                                                                                                                 of
                                                                                                                                 expertise,
                                                                                                                                 diversity
                                                                                                                                 of
                                                                                                                                 experience,
                                                                                                                                 length
                                                                                                                                 of
                                                                                                                                 service
                                                                                                                                 and
                                                                                                                                 potential
                                                                                                                                 conflicts
                                                                                                                                 of
                                                                                                                                 interest.
                                                                                                                                 The
                                                                                                                                 Nominating
                                                                                                                                 Committee
                                                                                                                                 recognizes
                                                                                                                                 that
                                                                                                                                 diversity
                                                                                                                                 in
                                                                                                                                 these
                                                                                                                                 areas
                                                                                                                                 brings
                                                                                                                                 value
                                                                                                                                 to
                                                                                                                                 the
                                                                                                                                 collective
                                                                                                                                 impact
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Board
                                                                                                                                 on
                                                                                                                                 the
                                                                                                                                 Company.
                                                                                                                                 The
                                                                                                                                 Company
                                                                                                                                 does
                                                                                                                                 not
                                                                                                                                 consider
                                                                                                                                 or
                                                                                                                                 make
                                                                                                                                 its
                                                                                                                                 recommendations
                                                                                                                                 based
                                                                                                                                 on
                                                                                                                                 race,
                                                                                                                                 gender,
                                                                                                                                 religion,
                                                                                                                                 age,
                                                                                                                                 sexual
                                                                                                                                 orientation
                                                                                                                                 or
                                                                                                                                 other
                                                                                                                                 matters
                                                                                                                                 the
                                                                                                                                 Committee
                                                                                                                                 deems
                                                                                                                                 not
                                                                                                                                 relevant
                                                                                                                                 to
                                                                                                                                 effective
                                                                                                                                 board
                                                                                                                                 service.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Such
                                                                                                                                 other
                                                                                                                                 factors
                                                                                                                                 as
                                                                                                                                 the
                                                                                                                                 Nominating
                                                                                                                                 Committee
                                                                                                                                 may
                                                                                                                                 consider
                                                                                                                                 appropriate.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Nominating Committee has also specified the following minimum qualifications that it believes must be met by a nominee for a position
on the Board of Directors:</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 highest
                                                                                                                                 personal
                                                                                                                                 and
                                                                                                                                 professional
                                                                                                                                 ethics
                                                                                                                                 and
                                                                                                                                 integrity.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Proven
                                                                                                                                 achievement
                                                                                                                                 and
                                                                                                                                 competence
                                                                                                                                 in
                                                                                                                                 the
                                                                                                                                 nominee's
                                                                                                                                 field,
                                                                                                                                 and
                                                                                                                                 the
                                                                                                                                 ability
                                                                                                                                 to
                                                                                                                                 exercise
                                                                                                                                 sound
                                                                                                                                 business
                                                                                                                                 judgment.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Skills
                                                                                                                                 complementary
                                                                                                                                 to
                                                                                                                                 those
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 existing
                                                                                                                                 members
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Board
                                                                                                                                 of
                                                                                                                                 Directors.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
                                                                                                                                 ability
                                                                                                                                 to
                                                                                                                                 assist
                                                                                                                                 and
                                                                                                                                 support
                                                                                                                                 management
                                                                                                                                 and
                                                                                                                                 make
                                                                                                                                 significant
                                                                                                                                 contributions
                                                                                                                                 to
                                                                                                                                 the
                                                                                                                                 Company's
                                                                                                                                 success.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">An
                                                                                                                                 understanding
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 fiduciary
                                                                                                                                 responsibilities
                                                                                                                                 required
                                                                                                                                 of
                                                                                                                                 a
                                                                                                                                 member
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Board
                                                                                                                                 of
                                                                                                                                 Directors,
                                                                                                                                 and
                                                                                                                                 the
                                                                                                                                 commitment
                                                                                                                                 of
                                                                                                                                 time
                                                                                                                                 and
                                                                                                                                 energy
                                                                                                                                 necessary
                                                                                                                                 to
                                                                                                                                 carry
                                                                                                                                 out
                                                                                                                                 those
                                                                                                                                 responsibilities
                                                                                                                                 diligently.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
connection with its evaluation, the Nominating Committee determines whether it will interview potential nominees. After completing
the evaluation and interview, the Nominating Committee makes a recommendation to the full Board of Directors as to the persons
who should be nominated, and the Board of the Directors determines the nominees after considering the recommendation and report
of the Nominating Committee.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Nominating Committee believes that the current nominees for director all meet the general criteria for board membership as described
in this section. In addition, each nominee brings particular strengths to the Board. For example, all incumbent directors have
a thorough knowledge and understanding of the Company. Mr. Bass also has extensive experience as a former chief executive officer
or senior manager in ten companies over the past 35 years in the fields of networking, semiconductors and computing platforms.
Mr. Jost has experience as the former President of Honeywell Imaging and Mobility, a manufacturer of data collection products
and management solutions for in-premises mobile and transaction processing applications, and served as President, Chief Executive
Officer and a director of Hand Held Products, a manufacturer of data collection and other electronic products, for eight years
prior to its acquisition by Honeywell. Mr. Jost is a Board leadership fellow, the highest level of credentialing for corporate
directors awarded in 2012 by the National Association of Corporate Directors. Mr. Malmed has been a senior sales and marketing
executive with technology based companies including SanDisk (memory products), Syquest, Maxtor and Quantum (electronic storage
products). Mr. Sealey has well established credentials as a senior marketing executive and marketing consultant, and is a college
professor of marketing. Mr. Emery has a strong background working in the healthcare industry with an emphasis on healthcare management
systems. Messrs. Bass, Emery and Sealey hold doctorate degrees in their respective fields. Both Mr. Mills and Mr. Gifford have
strong engineering backgrounds and a history of innovative leadership and understanding of the business mobility market. Mr. Mills
has more than 19 years of experience with the Company, the last 13 years as President and Chief Executive Officer. Mr. Gifford
co-founded the Company and has been a key part of its growth and development in serving the business mobility market since the
Company&rsquo;s inception.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Stockholder
Communications to Directors</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Stockholders
may communicate directly with the members of the Board of Directors by sending an email to <I>socketboard@socketmobile.com</I>.
The Company's Secretary monitors these communications and ensures that summaries of all received messages are provided to the
Board of Directors at its regularly scheduled meetings or directly to the Chairman of the Board if the matter is deemed to be
urgent and to require the immediate attention of the Board. Where the nature of a communication warrants, Mr. Bass, Chairman of
the Board, may decide to obtain the more immediate attention of the appropriate committee of the Board of Directors or a non-management
director, or the Company's management or independent advisors, as appropriate. Mr. Bass also determines whether any response to
a stockholder communication is necessary or warranted and whether further action is required.</FONT></P>

<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Director
Independence</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
January 2013, the Board of Directors undertook a review of the independence of its directors and considered whether any director
had a material relationship with the Company or its management that could compromise his ability to exercise independent judgment
in carrying out his responsibilities. As a result of this review, the Board of Directors affirmatively determined that all of
the directors of the Company, with the exception of Mr.&nbsp;Mills, the Company's President and Chief Executive Officer, and Mr.
Gifford, the Company's Executive Vice President, are independent of the Company and its management under the corporate governance
standards of the Nasdaq Market.</FONT></P>

<P STYLE="font: italic 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><I>Code
of Business Conduct and Ethics</I></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Board of Directors has a Code of Business Conduct and Ethics that is applicable to all employees, executive officers and directors
of the Company, including the Company's senior financial and other executive officers. The Code of Business Conduct and Ethics
is intended to deter wrongdoing and promote ethical conduct among the Company's directors, executive officers and employees. The
Code of Business Conduct and Ethics is available on the Company's website at http://www.mkr-group.com/SCKT/board_committee.html.
The Company will also post any amendments to or waivers from the Code of Business Conduct and Ethics on its website.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>REPORT
OF THE AUDIT COMMITTEE</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Board of Directors maintains an Audit Committee comprised of three of the Company's outside directors. The Audit Committee oversees
the Company's financial processes on behalf of the Board of Directors, although management has the primary responsibility for
preparing the financial statements and maintaining the Company's financial reporting process including the system of internal
controls. In fulfilling its oversight responsibilities, the Audit Committee reviewed with management the audited financial statements
in the Annual Report to the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2012, including discussing
the quality of the accounting principles, the reasonableness of significant judgments, including the identification and assessment
of risks, and the clarity of disclosures in the financial statements. The Audit Committee has a written charter, a copy of which
is posted on the Company&rsquo;s website at http://www.mkr-group.com/SCKT/board_committee.html.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Audit Committee reviewed the 2012 financial statements with the Company's independent auditors, who are responsible for expressing
an opinion on the conformity of the financial statements with generally accepted accounting principles, as well as their judgment
as to the quality, not just the acceptability, of the Company's accounting principles. The Audit Committee also discussed such
other matters as the auditors are required to discuss with the Committee under generally accepted auditing standards, including
Statement on Auditing Standards No. 61. In addition, the Audit Committee discussed with the independent auditors the auditors'
independence from management and the Company, including the matters in the written disclosures and the letter from the independent
auditors required by the applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountants&rsquo;
communications with the audit committee concerning independence.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Audit Committee also discussed with the Company's independent auditors the overall scope and results of their audit of the financial
statements, including their review of internal controls. The Audit Committee met periodically with the independent auditors, with
and without management present, to discuss the results of their examination, their evaluation of the Company's internal controls,
and the overall quality of the Company's financial reporting. The Audit Committee held two meetings with the auditors in regard
to their audit of the Company&rsquo;s annual financial statements for the year ended December 31, 2012. In addition, a conference
call among members of the Audit Committee, the Company&rsquo;s previous auditors and management was held each quarter during fiscal
2012 to review the Company&rsquo;s quarterly financial reports prior to their issuance.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">In
reliance on the reviews and discussions referred to above, the Audit Committee recommended to the Board of Directors, and the
Board of Directors has concurred, that the Company&rsquo;s audited financial statements be included in the Company's Annual Report
on Form 10-K for the year ended December 31, 2012. The Audit Committee also approved the appointment of Sam Kan and Company as
the Company's independent auditors for the year ending December 31, 2013.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
foregoing report has been submitted by the undersigned in our capacity as members of the Audit Committee of the Board of Directors.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 3.5in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">AUDIT
COMMITTEE</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 3.5in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 3.5in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Charlie
Bass</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 3.5in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Charles
C. Emery, Jr.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 3.5in; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Leon
Malmed</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Dated:
April 11, 2013</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>OTHER
MATTERS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: left; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Company knows of no other matters to be submitted at the 2013 Annual Meeting of Stockholders. If any other matters properly come
before the 2013 Annual Meeting, it is the intention of the persons named in the enclosed form of proxy to vote the shares they
represent as the Board of Directors may recommend. It is important that your shares be represented at the meeting, regardless
of the number of shares that you hold. Please complete, date, execute and return, at your earliest convenience, the accompanying
proxy card in the envelope that has been enclosed or otherwise vote your shares via telephone or internet as available.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 12pt 0 0 242pt; text-align: left; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">THE
BOARD OF DIRECTORS</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-size: 12pt">Dated:
April 11, 2013</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify; text-indent: 0in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: justify"></P>



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



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

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>EXHIBIT
A TO PROPOSAL 4</B></FONT></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>SOCKET
MOBILE, INC.</B></FONT></P>

<P STYLE="font: bold 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>2004
EQUITY INCENTIVE PLAN</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><B>(As
Amended April 29, 2010)</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 24pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Purposes of the Plan</U>. The purposes of this Plan are:</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">to
                                                                                                                                attract
                                                                                                                                and
                                                                                                                                retain
                                                                                                                                the
                                                                                                                                best
                                                                                                                                available
                                                                                                                                personnel
                                                                                                                                for
                                                                                                                                positions
                                                                                                                                of
                                                                                                                                substantial
                                                                                                                                responsibility,</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">to
                                                                                                                              provide
                                                                                                                              additional
                                                                                                                              incentive
                                                                                                                              to
                                                                                                                              Employees,
                                                                                                                              Directors
                                                                                                                              and
                                                                                                                              Consultants,
                                                                                                                              and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font: 10pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">to
                                                                                                                              promote
                                                                                                                              the
                                                                                                                              success
                                                                                                                              of
                                                                                                                              the
                                                                                                                              Company&rsquo;s
                                                                                                                              business.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">The
Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock, Stock Appreciation Rights, Performance
Units and Performance Shares.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Definitions</U>. As used herein, the following definitions will apply:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Administrator</U>&rdquo; means the Board or any of its Committees as will be administering the Plan, in accordance with
Section&nbsp;4 of the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Applicable Laws</U>&rdquo; means the requirements relating to the administration of equity-based awards under U.S. state
corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock
is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under
the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Award</U>&rdquo; <FONT STYLE="color: black">means, individually or collectively, a grant under the Plan of Options,
SARs, Restricted Stock, Performance Units or Performance Shares.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Award Agreement</U>&rdquo; means the written or electronic agreement setting forth the terms
and provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of
the Plan.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Board</U>&rdquo; means the Board of Directors of the Company.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Cash Position</U>&rdquo; means as to any Performance Period, the Company&rsquo; s level of cash and cash equivalents,
including, without limitation, amounts classified for financial reporting purposes as short-term investments and restricted investments.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">&nbsp;</P>

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Change in Control</U>&rdquo; means the occurrence of any of the following events:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0"><FONT STYLE="font: 12pt 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any &ldquo;person&rdquo; (as such term is used in Sections
13(d) and 14(d) of the Exchange Act) becomes the &ldquo;beneficial owner&rdquo; (as defined in Rule 13d-3 of the Exchange Act),
directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented
by the Company&rsquo;s then outstanding voting securities; or</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0"><FONT STYLE="font: 12pt 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The consummation of the sale or disposition by the Company
of all or substantially all of the Company&rsquo;s assets; or</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0"><FONT STYLE="font: 12pt 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The consummation of a merger or consolidation of the Company
with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities
of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Code</U>&rdquo; means the Internal Revenue Code of 1986, as amended. <FONT STYLE="color: black">Any reference to a section
of the Code herein will be a reference to any successor or amended section of the Code.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Committee</U>&rdquo; <FONT STYLE="color: black">means a committee of Directors or of other individuals satisfying Applicable
Laws appointed by the Board in accordance with Section&nbsp;4 hereof.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Common Stock</U>&rdquo; means the common stock of the Company.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Company</U>&rdquo; means Socket Mobile, Inc., a Delaware corporation, or any successor thereto.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Consultant</U>&rdquo; means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render
services to such entity.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Determination Date</U>&rdquo; means the latest possible date that will not jeopardize the
qualification of an Award granted under the Plan as &ldquo;performance-based compensation&rdquo; under Section 162(m) of the Code.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Director</U>&rdquo; means a member of the Board.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Disability</U>&rdquo; means total and permanent disability as defined in Section&nbsp;22(e)(3) of the Code<FONT STYLE="color: black">,
provided that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether
a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator
from time to time</FONT>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Earnings Per Share</U>&rdquo; means as to any Performance Period, the Company&rsquo;s or
a business unit&rsquo;s Net Income, divided by a weighted average number of common shares outstanding and dilutive common equivalent
shares deemed outstanding, determined in accordance with U.S. GAAP; provided, however, that if Net Income as to any such Performance
Period is a negative amount, then Earnings Per Share means the Company&rsquo;s or business unit&rsquo;s Net Income, divided by
a weighted average number of common shares outstanding, determined in accordance with U.S. GAAP.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="color: black"></FONT></FONT></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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="color: black">&nbsp;</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Employee</U>&rdquo; means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary
of the Company. Neither service as a Director nor payment of a director&rsquo;s fee by the Company will be sufficient to constitute
&ldquo;employment&rdquo; by the Company.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Exchange Act</U>&rdquo; means the Securities Exchange Act of 1934, as amended.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Excluded Items</U>&rdquo; includes, without limitation, (i) incentive compensation, (ii)&nbsp;in-process research and
development expenses, (iii) acquisition costs, (iv)&nbsp;compensation expense from equity compensation, (v) operating expenses
from acquired businesses, (vi) amortization of acquired intangible assets, and (vii) such other unusual or one-time items as may
be identified by the Administrator.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Fair Market Value</U>&rdquo; means, as of any date, the value of Common Stock determined as follows:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the Common Stock is listed on any established stock exchange
or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq
Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported)
as quoted on such exchange or system on the day of determination, as reported in <I>The Wall Street Journal</I> or such other
source as the Administrator deems reliable;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of a Share will be the mean between the high bid
and low asked prices for the Common Stock on the day of determination, as reported in <I>The Wall Street Journal</I> or such other
source as the Administrator deems reliable; or</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the absence of an established market for the Common
Stock, the Fair Market Value will be determined in good faith by the Administrator.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Fiscal Year</U>&rdquo; means the fiscal year of the Company.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Incentive Stock Option</U>&rdquo; means an Option that by its terms qualifies and is otherwise intended to qualify as
an incentive stock option within the meaning of Section&nbsp;422 of the Code and the regulations promulgated thereunder.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(w)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Inside Director</U>&rdquo; means a Director who is an Employee.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Net Income</U>&rdquo; means as to any Performance Period, the Company&rsquo;s or a business
unit&rsquo;s income after taxes determined in accordance with U.S. GAAP, adjusted for any Excluded Items approved for exclusion
by the Administrator.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(y)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Nonstatutory Stock Option</U>&rdquo; means an Option that by its terms does not qualify or is not intended to qualify
as an Incentive Stock Option.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(z)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Officer</U>&rdquo; means a person who is an officer of the Company within the meaning of Section&nbsp;16 of the Exchange
Act and the rules and regulations promulgated thereunder.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(aa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Operating Cash Flow</U>&rdquo; </FONT>means as to any Performance Period, the Company's or
a business unit's cash flow generated from operating activities, as reported in the Company&rsquo;s cash flow statements and calculated
in accordance with U.S. GAAP<FONT STYLE="color: black">, adjusted for any Excluded Items approved for exclusion by the Administrator</FONT>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(bb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Operating Income</U>&rdquo; means as to any Performance Period, the Company&rsquo;s or a
business unit&rsquo;s income from operations determined in accordance with U.S. GAAP, adjusted for any Excluded Items approved
for exclusion by the Administrator.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(cc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Option</U>&rdquo; means a stock option granted pursuant to the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(dd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Parent</U>&rdquo; means a &ldquo;parent corporation,&rdquo; whether now or hereafter existing, as defined in Section&nbsp;424(e)
of the Code.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(ee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Participant</U>&rdquo; means the holder of an outstanding Award.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(ff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Performance Goals</U>&rdquo; means the goal(s) (or combined goal(s)) determined by the Administrator
(in its discretion) to be applicable to a Participant with respect to an Award granted under the Plan. As determined by the Administrator,
the Performance Goals applicable to an Award may provide for a targeted level or levels of achievement using one or more of the
following measures: (a)&nbsp;Cash Position, (b) Earnings Per Share, (c)&nbsp;Net Income, (d)&nbsp;Operating Cash Flow, (e)&nbsp;Operating
Income, (f)&nbsp;Return on Assets, (g)&nbsp;Return on Equity, (h)&nbsp;Return on Sales, (i) Revenue and (j) Total Shareholder
Return. The Performance Goals may differ from Participant to Participant and from Award to Award. Prior to the Determination Date,
the Administrator will determine whether any significant element(s) will be included in or excluded from the calculation of any
Performance Goal with respect to any Participant.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(gg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Performance Period</U>&rdquo; means any Fiscal Year of the Company or such other period as
determined by the Administrator in its sole discretion.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(hh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Performance Share</U>&rdquo; means an Award granted to a Participant pursuant to Section
9.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Performance Unit</U>&rdquo; means an Award granted to a Participant pursuant to Section 9.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(jj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Period of Restriction</U>&rdquo; means the period during which the transfer of Shares of
Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions
may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other events as determined
by the Administrator.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(kk)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Plan</U>&rdquo; means this 2004 Equity Incentive Plan, as may be amended from time to time.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(ll)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Restricted Stock</U>&rdquo; <FONT STYLE="color: black">means Shares issued pursuant to a Restricted Stock award under
Section&nbsp;7 of the Plan, or issued pursuant to the early exercise of an Option.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 4 -->
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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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(mm)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Return on Assets</U>&rdquo; means as to any Performance Period, the percentage equal to the
Company&rsquo;s or a business unit&rsquo;s Operating Income divided by average net Company or business unit, as applicable, assets,
determined in accordance with U.S. GAAP.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(nn)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Return on Equity</U>&rdquo; means as to any Performance Period, the percentage equal to the
Company&rsquo;s Net Income divided by average stockholder&rsquo;s equity, determined in accordance with U.S. GAAP.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(oo)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Return on Sales</U>&rdquo; means as to any Performance Period, the percentage equal to the
Company&rsquo;s or a business unit&rsquo;s Operating Income divided by the Company&rsquo;s or the business unit&rsquo;s, as applicable,
Revenue.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(pp)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Revenue</U>&rdquo; means as to any Performance Period, the Company&rsquo;s or business unit&rsquo;s
net sales, determined in accordance with U.S. GAAP.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(qq)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Rule 16b-3</U>&rdquo; means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion
is being exercised with respect to the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(rr)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Section&nbsp;16(b)</U>&rdquo; means Section&nbsp;16(b) of the Exchange Act.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(ss)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Service Provider</U>&rdquo; means an Employee, Director or Consultant.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(tt)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Share</U>&rdquo; means a share of the Common Stock, as adjusted in accordance with Section&nbsp;12 of the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(uu)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Stock Appreciation Right</U>&rdquo; or &ldquo;<U>SAR</U>&rdquo; means an Award, granted alone or in connection with
an Option, that pursuant to Section&nbsp;8 is designated as a SAR.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(vv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&ldquo;<U>Subsidiary</U>&rdquo; means a &ldquo;subsidiary corporation&rdquo;, whether now or hereafter existing, as defined in
Section&nbsp;424(f) of the Code.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(ww)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>Total Shareholder Return</U>&rdquo; means as to any Performance Period, the total return
(change in share price plus reinvestment of any dividends) of a Share. </FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(xx)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">&ldquo;<U>U.S. GAAP</U>&rdquo; means generally accepted accounting principles in the United States.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Stock&nbsp;Subject&nbsp;to&nbsp;the&nbsp;Plan</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Stock Subject to the Plan</U>. Subject to the provisions of Section&nbsp;12 of the Plan, the maximum aggregate number of Shares
that may be awarded and sold under the Plan is (i) the number of Shares which have been reserved but not issued under the Company&rsquo;s
1995 Stock Plan, as amended and restated (the &ldquo;1995 Plan&rdquo;) <FONT STYLE="color: black">as of the date of stockholder
approval of this Plan</FONT>, (ii)&nbsp;any Shares returned to the 1995 Plan as a result of termination of options or repurchase
of Shares issued under such plan, and (iii) <FONT STYLE="color: black">an annual increase to be added on the first day of the
Company&rsquo;s fiscal year beginning in 2005, equal to the <U>least</U> of (A)&nbsp;2,000,000 Shares, (B)&nbsp;4% of the outstanding
Shares on such date or (C)&nbsp;an amount determined by the Board.</FONT>. The Shares may be authorized, but unissued, or reacquired
Common Stock. <FONT STYLE="color: black">Shares will not be deemed to have been issued pursuant to the Plan with respect to any
portion of an Award that is settled in cash. Upon payment in Shares pursuant to the exercise of an SAR, the number of Shares available
for issuance under the Plan will be reduced only by the number of Shares actually issued in such payment. If the exercise price
of an Option is paid by tender to the Company, or attestation to the ownership, of Shares owned by the Participant, the number
of Shares available for issuance under the Plan will be reduced by the gross number of Shares for which the Option is exercised.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="color: black"></FONT></FONT></P>

<!-- Field: Page; Sequence: 5 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">Exhibit A-5<HR></TD></TR></TABLE></DIV>
    <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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="color: black">&nbsp;</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Lapsed Awards</U>. If an Award expires or becomes unexercisable without having been exercised in full, the unpurchased Shares
which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated); <U>provided</U>,
however, that Shares that have actually been issued under the Plan, whether upon exercise of an Award, will not be returned to
the Plan and will not become available for future distribution under the Plan, except that if unvested Shares are forfeited or
repurchased by the Company, such Shares will become available for future grant under the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Share Reserve</U>. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares
as will be sufficient to satisfy the requirements of the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Administration of the Plan</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Procedure</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Multiple Administrative Bodies</U>. Different Committees
with respect to different groups of Service Providers may administer the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Section&nbsp;162(m)</U>. To the extent that the Administrator
determines it to be desirable to qualify Awards granted hereunder as &ldquo;performance-based compensation&rdquo; within the meaning
of Section&nbsp;162(m) of the Code, the Plan will be administered by a Committee of two or more &ldquo;outside directors&rdquo;
within the meaning of Section&nbsp;162(m) of the Code.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Rule 16b-3</U>. To the extent desirable to qualify
transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder will be structured to satisfy the requirements
for exemption under Rule 16b-3.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Other Administration</U>. Other than as provided above,
the Plan will be administered by (A)&nbsp;the Board or (B)&nbsp;a Committee, which committee will be constituted to satisfy Applicable
Laws.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Powers of the Administrator</U>. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific
duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to determine the Fair Market Value;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to select the Service Providers to whom Awards may be granted
hereunder;</FONT></P>

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

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to determine the number of Shares to be covered by each
Award granted hereunder;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to approve forms of agreement for use under the Plan;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif; color: black">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT STYLE="font: 12pt Times New Roman, Times, Serif">to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and
conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based
on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding
any Award or the Shares relating thereto, based in each case on such factors as the Administrator will determine;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to construe and interpret the terms of the Plan and Awards
granted pursuant to the Plan;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable
foreign laws;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to modify or amend each Award (subject to Section&nbsp;17(c)
of the Plan), including the discretionary authority to extend the post-termination exercisability period of Awards longer than
is otherwise provided for in the Plan. <FONT STYLE="color: black"> Notwithstanding the foregoing, the Administrator may not modify
or amend an Option or SAR to reduce the exercise price of such Option or SAR after it has been granted (except for adjustments
made pursuant to Section&nbsp;12), unless approved by the Company&rsquo;s stockholders and neither may the Committee, without
the approval of the Company&rsquo;s stockholders, cancel any outstanding Option or SAR and immediately replace it with a new Option
or SAR with a lower exercise price</FONT>;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to allow Participants to satisfy withholding tax obligations
in such manner as prescribed in Section 13;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to authorize any person to execute on behalf of the Company
any instrument required to effect the grant of an Award previously granted by the Administrator;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT STYLE="color: black">to allow a Participant to defer
the receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant under an Award</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(xii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to make all other determinations deemed necessary or advisable
for administering the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Effect of Administrator&rsquo;s&nbsp;Decision</U>. The Administrator&rsquo;s decisions, determinations and interpretations
will be final and binding on all Participants and any other holders of Awards.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Eligibility</U>. Nonstatutory Stock Options, Restricted Stock, Stock Appreciation Rights, Performance Units and Performance
Shares may be granted to Service Providers. Incentive Stock Options may be granted only to Employees.</FONT></P>

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

<!-- Field: Page; Sequence: 7 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">Exhibit A-7<HR></TD></TR></TABLE></DIV>
    <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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Stock Options</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Limitations</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Option will be designated in the Award Agreement as
either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that
the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time
by the Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options will be treated as Nonstatutory Stock Options. For purposes of this Section&nbsp;6(a), Incentive Stock Options will be
taken into account in the order in which they were granted. The Fair Market Value of the Shares will be determined as of the time
the Option with respect to such Shares is granted.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following limitations will apply to grants of Options:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 88pt; text-align: justify; text-indent: 2in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No Service Provider will be granted, in any Fiscal Year, Options and/or Stock Appreciation Rights to purchase more than 750,000
Shares.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 88pt; text-align: justify; text-indent: 2in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with his or her initial service, a Service Provider may be granted Options and/or Stock Appreciation Rights to purchase
up to an additional 1,250,000 Shares, which will not count against the limit set forth in Section&nbsp;6(a)(2)(ii)(1) above.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 88pt; text-align: justify; text-indent: 2in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The foregoing limitations will be adjusted proportionately in connection with any change in the Company&rsquo;s capitalization
as described in Section&nbsp;12.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 88pt; text-align: justify; text-indent: 2in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If an Option and/or Stock Appreciation Right is cancelled in the same Fiscal Year in which it was granted (other than in connection
with a transaction described in Section&nbsp;12), the cancelled Option and/or Stock Appreciation Right, as applicable, will be
counted against the limits set forth in subsections&nbsp;(1) and (2) above. For this purpose, if the exercise price of an Option
and/or Stock Appreciation Right is reduced, the transaction will be treated as a cancellation of the Option and/or Stock Appreciation
Right and the grant of a new Option and/or Stock Appreciation Right, as applicable.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Term of Option</U>. The Administrator will determine the term of each Option in its sole discretion. In the case of an Incentive
Stock Option, the term will be ten (10) years from the date of grant or such shorter term as may be provided in the Award Agreement.
Moreover, in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted,
owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company
or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years from the date of grant or such shorter
term as may be provided in the Award Agreement.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Option Exercise Price and Consideration</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Exercise Price</U>. The per share exercise price for
the Shares to be issued pursuant to exercise of an Option will be determined by the Administrator, subject to the following:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 88pt; text-align: justify; text-indent: 2in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the case of an Incentive Stock Option</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 88pt; text-align: justify; text-indent: 2in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 88pt; text-align: justify; text-indent: 2in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 66pt; text-align: justify; text-indent: 2.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%)
of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no
less than 110% of the Fair Market Value per Share on the date of grant.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 66pt; text-align: justify; text-indent: 2.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price will
be no less than 100% of the Fair Market Value per Share on the date of grant.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 88pt; text-align: justify; text-indent: 2in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black">In the case of a Nonstatutory Stock Option, the per Share exercise price shall be determined by the
Administrator, but shall be no less than 100% of the Fair Market Value per Share on the date of grant. </FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 88pt; text-align: justify; text-indent: 2in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value
per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Section&nbsp;424(a) of
the Code.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Waiting Period and Exercise Dates</U>. At the time an
Option is granted, the Administrator will fix the period within which the Option may be exercised and will determine any conditions
that must be satisfied before the Option may be exercised.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Form of Consideration</U>. The Administrator will determine
the acceptable form of consideration for exercising an Option, including the method of payment. In the case of an Incentive Stock
Option, the Administrator will determine the acceptable form of consideration at the time of grant. Such consideration may consist
entirely of: (1) cash; (2) check; (3) promissory note; (4) other Shares, provided Shares acquired directly or indirectly from
the Company, (A)&nbsp;have been owned by the Participant and not subject to substantial risk of forfeiture for more than six months
on the date of surrender, and (B)&nbsp;have a Fair Market Value on the date of surrender equal to the aggregate exercise price
of the Shares as to which said Option will be exercised; (5) consideration received by the Company under a cashless exercise program
implemented by the Company in connection with the Plan; (6) a reduction in the amount of any Company liability to the Participant,
including any liability attributable to the Participant&rsquo;s participation in any Company-sponsored deferred compensation program
or arrangement; (7) any combination of the foregoing methods of payment; or (8) such other consideration and method of payment
for the issuance of Shares to the extent permitted by Applicable Laws.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Exercise of Option</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Procedure for Exercise; Rights as a Stockholder</U>.
Any Option granted hereunder will be exercisable according to the terms of the Plan and at such times and under such conditions
as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 88pt; text-align: justify; text-indent: 2in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">An
Option will be deemed exercised when the Company receives: (i)&nbsp;notice of exercise (in such form as the Administrator specify
from time to time) from the person entitled to exercise the Option, and (ii)&nbsp;full payment for the Shares with respect to
which the Option is exercised (together with an applicable withholding taxes). Full payment may consist of any consideration and
method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise
of an Option will be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant
and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a
duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will
exist with respect to the Shares subject to an Award, notwithstanding the exercise of the Option. The Company will issue (or cause
to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for
which the record date is prior to the date the Shares are issued, except as provided in Section&nbsp;12 of the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 88pt; text-align: justify; text-indent: 2in"></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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 88pt; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0 110pt; text-align: justify; text-indent: 1.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Exercising
an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under
the Option, by the number of Shares as to which the Option is exercised.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Termination of Relationship as a Service Provider</U>.
If a Participant ceases to be a Service Provider, other than upon the Participant&rsquo;s death or Disability, the Participant
may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent that the Option
is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the
Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for three (3)
months following the Participant&rsquo;s termination. Unless otherwise provided by the Administrator, if on the date of termination
the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert
to the Plan. If after termination the Participant does not exercise his or her Option within the time specified by the Administrator,
the Option will terminate, and the Shares covered by such Option will revert to the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Disability of Participant</U>. If a Participant ceases
to be a Service Provider as a result of the Participant&rsquo;s Disability, the Participant may exercise his or her Option within
such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination (but
in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified
time in the Award Agreement, the Option will remain exercisable for twelve (12) months following the Participant&rsquo;s termination.
Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire
Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant
does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such
Option will revert to the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Death of Participant</U>. If a Participant dies while
a Service Provider, the Option may be exercised following the Participant&rsquo;s death within such period of time as is specified
in the Award Agreement to the extent that the Option is vested on the date of death (but in no event may the option be exercised
later than the expiration of the term of such Option as set forth in the Award Agreement), by the Participant&rsquo;s designated
beneficiary, provided such beneficiary has been designated prior to Participant&rsquo;s death in a form acceptable to the Administrator.
If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative
of the Participant&rsquo;s estate or by the person(s) to whom the Option is transferred pursuant to the Participant&rsquo;s will
or in accordance with the laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option
will remain exercisable for twelve (12) months following Participant&rsquo;s death. Unless otherwise provided by the Administrator,
if at the time of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of
the Option will immediately revert to the Plan. If the Option is not so exercised within the time specified herein, the Option
will terminate, and the Shares covered by such Option will revert to the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Restricted Stock</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Grant of Restricted Stock</U>. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time
to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion,
will determine.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Restricted Stock Agreement</U>. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the
Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion,
will determine. Notwithstanding the foregoing, <FONT STYLE="color: black">during any Fiscal Year no Participant will receive more
than an aggregate of 250,000 Shares of Restricted Stock; provided, however, that in connection with a Participant's initial service
as an Employee, an Employee may be granted an aggregate of up to an additional 500,000 Shares of Restricted Stock. </FONT>Unless
the Administrator determines otherwise, Shares of Restricted Stock will be held by the Company as escrow agent until the restrictions
on such Shares have lapsed.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Transferability</U>. Except as provided in this Section 7, Shares of Restricted Stock may not be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Other Restrictions</U>. The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted
Stock as it may deem advisable or appropriate.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Removal of Restrictions</U>. Except as otherwise provided in this Section 7, Shares of Restricted Stock covered by each Restricted
Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction.
The Administrator, in its discretion, may accelerate the time at which any restrictions will lapse or be removed.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Voting Rights</U>. During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder
may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Dividends and Other Distributions</U>. During the Period of Restriction, Service Providers holding Shares of Restricted Stock
will be entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in
the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions
on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"></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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Return of Restricted Stock to Company</U>. On the date set forth in the Award Agreement, the Restricted Stock for which restrictions
have not lapsed will revert to the Company and again will become available for grant under the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Section 162(m) Performance Restrictions</U>. For purposes of qualifying a Restricted Stock as &ldquo;performance-based compensation&rdquo;
under Section 162(m) of the Code, the Administrator, in its discretion, may set restrictions based upon the achievement of Performance
Goals, which will be set by the Administrator on or before the Determination Date. In this connection, the Administrator will
follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Restricted
Stock under Section 162(m) of the Code (e.g., in determining the Performance Goals).</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Stock Appreciation Rights</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Grant of SARs</U>. Subject to the terms and conditions of the Plan, a SAR may be granted to Service Providers at any time and
from time to time as will be determined by the Administrator, in its sole discretion.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Number of Shares</U>. The Administrator will have complete discretion to determine the number of SARs granted to any Participant,
provided that during any Fiscal Year, no Participant will be granted Options and/or SARs covering more than 750,000 Shares. Notwithstanding
the foregoing limitation, in connection with a Participant&rsquo;s initial service as an Employee, an Employee may be granted
Options and/or SARs covering up to an additional 1,250,000 Shares.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Exercise Price and Other Terms</U>. The Administrator, subject to the provisions of the Plan, will have complete discretion
to determine the terms and conditions of SARs granted under the Plan. <FONT STYLE="color: black">In the case of a freestanding
SAR, the exercise price will be not less than one hundred percent (100%) of the Fair Market Value of a Share on the date of grant.
The exercise price of a tandem or affiliated SARs will equal the exercise price of the related Option.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>SAR Agreement</U>. Each SAR grant will be evidenced by an Award Agreement that will specify the exercise price, the term of
the SAR, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Expiration of SARs</U>. An SAR granted under the Plan will expire upon the date determined by the Administrator, in its sole
discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Section&nbsp;6(d) also will apply
to SARs.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Payment of SAR Amount</U>. Upon exercise of an SAR, a Participant will be entitled to receive payment from the Company in an
amount determined by multiplying:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The difference between the Fair Market Value of a Share
on the date of exercise over the exercise price; times</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The number of Shares with respect to which the SAR is exercised.</FONT></P>

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

<!-- Field: Page; Sequence: 12 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">Exhibit A-12<HR></TD></TR></TABLE></DIV>
    <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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">At
the discretion of the Administrator, the payment upon SAR exercise may be in cash, in Shares of equivalent value, or in some combination
thereof.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Performance Units and Performance Shares</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Grant of Performance Units/Shares</U>. Performance Units and Performance Shares may be granted to Service Providers at any
time and from time to time, as will be determined by the Administrator, in its sole discretion. The Administrator will have complete
discretion in determining the number of Performance Units and Performance Shares granted to each Participant provided that during
any Fiscal Year, (a) no Participant will receive Performance Units having an initial value greater than $1,000,000, and (b) no
Participant will receive more than 250,000 Performance Shares. Notwithstanding the foregoing limitation, in connection with a
Participant's initial service as an Employee, an Employee may be granted up to an additional 500,000 Performance Shares.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Value of Performance Units/Shares</U>. Each Performance Unit will have an initial value that is established by the Administrator
on or before the date of grant. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on
the date of grant.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Performance Objectives and Other Terms</U>. The Administrator will set performance objectives or other vesting provisions (including,
without limitation, continued status as a Service Provider) in its discretion which, depending on the extent to which they are
met, will determine the number or value of Performance Units/Shares that will be paid out to the Service Provider. The time period
during which the performance objectives or other vesting provisions must be met will be called the &ldquo;Performance Period.&rdquo;
Each Award of Performance Units/Shares will be evidenced by an Award Agreement that will specify the Performance Period, and such
other terms and conditions as the Administrator, in its sole discretion, will determine.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>General Performance Objectives</U>. The Administrator
may set performance objectives based upon the achievement of Company-wide, divisional, or individual goals, or any other basis
determined by the Administrator in its discretion.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt 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;&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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Section 162(m) Performance Objectives</U>. For purposes
of qualifying grants of Performance Units/Shares as &ldquo;performance-based compensation&rdquo; under Section 162(m) of the Code,
the Administrator, in its discretion, may determine that the performance objectives applicable to Performance Units/Shares will
be based on the achievement of Performance Goals. The Administrator will set the Performance Goals on or before the Determination
Date. In granting Performance Units/Shares which are intended to qualify under Section 162(m) of the Code, the Administrator will
follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Performance
Units/Shares under Section 162(m) of the Code (e.g., in determining the Performance Goals).</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Earning of Performance Units/Shares</U>. After the applicable Performance Period has ended, the holder of Performance Units/Shares
will be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the Performance
Period, to be determined as a function of the extent to which the corresponding performance objectives or other vesting provisions
have been achieved. After the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce or waive
any performance objectives or other vesting provisions for such Performance Unit/Share.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></P>

<!-- Field: Page; Sequence: 13 -->
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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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Form and Timing of Payment of Performance Units/Shares</U>. Payment of earned Performance Units/Shares will be made as soon
as practicable after the expiration of the applicable Performance Period. The Administrator, in its sole discretion, may pay earned
Performance Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned
Performance Units/Shares at the close of the applicable Performance Period) or in a combination thereof.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Cancellation of Performance Units/Shares</U>. On the date set forth in the Award Agreement, all unearned or unvested Performance
Units/Shares will be forfeited to the Company, and again will be available for grant under the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Leaves of Absence</U>. <FONT STYLE="color: black">Unless the Administrator provides otherwise, vesting of Awards granted hereunder
will be suspended during any unpaid leave of absence. A Service Provider will not cease to be an Employee in the case of (i)&nbsp;any
leave of absence approved by the Company or (ii)&nbsp;transfers between locations of the Company or between the Company, its Parent,
or any Subsidiary. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon
expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved
by the Company is not so guaranteed, then three (3) months following the 91st day of such leave any Incentive Stock Option held
by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory
Stock Option.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Transferability of Awards</U>. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable,
such Award will contain such additional terms and conditions as the Administrator deems appropriate.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Adjustments; Dissolution or Liquidation; Merger or Change in Control</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black"><U>Adjustments</U>. In the event that any dividend or other distribution (whether in the form of cash,
Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the
corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement
of the benefits or potential benefits intended to be made available under the Plan, may (in its sole discretion) adjust the number
and class of Shares that may be delivered under the Plan and/or the number, class, and price of Shares covered by each outstanding
Award, </FONT>and the numerical Share limits set forth in Sections&nbsp;3, 6, 7, 8 and 9<FONT STYLE="color: black">.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="color: black"></FONT></FONT></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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"><FONT STYLE="color: black">&nbsp;</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Dissolution or Liquidation</U>. In the event of the proposed dissolution or liquidation of the Company, the Administrator will
notify each Participant as soon as practicable prior to the effective date of such proposed transaction. To the extent it has
not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Change in Control</U>. <FONT STYLE="color: black">In the event of a Change in Control, each outstanding Award will be assumed
or an equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of the successor corporation.
In the event that the successor corporation refuses to assume or substitute for the Award, the Participant will fully vest in
and have the right to exercise all of his or her outstanding Options and Stock Appreciation Rights, including Shares as to which
such Awards would not otherwise be vested or exercisable, all restrictions on Restricted Stock will lapse, and, with respect to
Performance Shares and Performance Units, all performance goals or other vesting criteria will be deemed achieved at target levels
and all other terms and conditions met. In addition, if an Option or Stock Appreciation Right becomes fully vested and exercisable
in lieu of assumption or substitution in the event of a Change in Control, the Administrator will notify the Participant in writing
or electronically that the Option or Stock Appreciation Right will be fully vested and exercisable for a period of time determined
by the Administrator in its sole discretion, and the Option or Stock Appreciation Right will terminate upon the expiration of
such period.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">With
respect to Awards granted to a non-employee Directors that are assumed or substituted for, if on the date of or following such
assumption or substitution the Participant&rsquo;s status as a Director or a director of the successor corporation, as applicable,
is terminated other than upon a voluntary resignation by the Participant, then the Participant will fully vest in and have the
right to exercise Options and/or Stock Appreciation Rights as to all of the Shares subject thereto, including Shares as to which
such Awards would not otherwise be vested or exercisable, all restrictions on Restricted Stock will lapse, and, with respect to
Performance Shares and Performance Units, all performance goals or other vesting criteria will be deemed achieved at target levels
and all other terms and conditions met.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">For
the purposes of this subsection (c), an Award will be considered assumed if, following the Change in Control, the Award confers
the right to purchase or receive, for each Share subject to the Award immediately prior to the Change in Control, the consideration
(whether stock, cash, or other securities or property) or, in the case of a Stock Appreciation Right upon the exercise of which
the Administrator determines to pay cash or a Performance Share or Performance Unit which the Administrator can determine to pay
in cash, the fair market value of the consideration received in the merger or Change in Control by holders of Common Stock for
each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the
Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent
of the successor corporation, provide for the consideration to be received upon the exercise of an Option or Stock Appreciation
Right or upon the payout of a Performance Share or Performance Unit, for each Share subject to such Award (or in the case of Performance
Units, the number of implied shares determined by dividing the value of the Performance Units by the per share consideration received
by holders of Common Stock in the Change in Control), to be solely common stock of the successor corporation or its Parent equal
in fair market value to the per share consideration received by holders of Common Stock in the Change in Control.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif"></FONT></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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">Notwithstanding
anything in this Section 12(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more
performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without
the Participant&rsquo;s consent; provided, however, a modification to such performance goals only to reflect the successor corporation&rsquo;s
post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Tax Withholding</U></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Withholding Requirements</U>. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company
will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient
to satisfy federal, state, local, foreign or other taxes (including the Participant&rsquo;s FICA obligation) required to be withheld
with respect to such Award (or exercise thereof).</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Withholding Arrangements</U><FONT STYLE="color: black">. The Administrator, in its sole discretion and pursuant to such procedures
as it may specify from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part
by (a) paying cash, (b) electing to have the Company withhold otherwise deliverable cash or Shares having a Fair Market Value
equal to the amount required to be withheld, or (c) delivering to the Company already-owned Shares having a Fair Market Value
equal to the amount required to be withheld. The amount of the withholding requirement will be deemed to include any amount which
the Administrator agrees may be withheld at the time the election is made, not to exceed the amount determined by using the maximum
federal, state or local marginal income tax rates applicable to the Participant with respect to the Award on the date that the
amount of tax to be withheld is to be determined. The Fair Market Value of the Shares to be withheld or delivered will be determined
as of the date that the taxes are required to be withheld.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT STYLE="color: black"><U>No Effect on Employment or Service</U>. Neither the Plan nor any Award will confer upon a Participant
any right with respect to continuing the Participant&rsquo;s relationship as a Service Provider with the Company, nor will they
interfere in any way with the Participant&rsquo;s right or the Company&rsquo;s right to terminate such relationship at any time,
with or without cause, to the extent permitted by Applicable Laws.</FONT></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Date of Grant</U>. The date of grant of an Award will be, for all purposes, the date on which the Administrator makes the determination
granting such Award, or such other later date as is determined by the Administrator. Notice of the determination will be provided
to each Participant within a reasonable time after the date of such grant.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Term of Plan</U>. Subject to Section&nbsp;20<B> </B>of the Plan, the Plan will become effective upon its adoption by the Board.
It will continue in effect for a term of ten (10) years unless terminated earlier under Section&nbsp;17<B> </B>of the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Amendment and Termination of the Plan</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Amendment and Termination</U>. The Board may at any time amend, alter, suspend or terminate the Plan.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"></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: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Stockholder Approval</U>. The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable
to comply with Applicable Laws.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Effect of Amendment or Termination</U>. No amendment, alteration, suspension or termination of the Plan will impair the rights
of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in
writing and signed by the Participant and the Company. Termination of the Plan will not affect the Administrator&rsquo;s ability
to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Conditions Upon Issuance of Shares</U>.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Legal Compliance</U>. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and
the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel
for the Company with respect to such compliance.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 1in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Investment Representations</U>. As a condition to the exercise of an Award, the Company may require the person exercising such
Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without
any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is
required.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Inability to Obtain Authority</U>. The inability of the Company to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company&rsquo;s counsel to be necessary to the lawful issuance and sale of any Shares hereunder,
will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority
will not have been obtained.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Stockholder Approval</U>. The Plan will be subject to approval by the stockholders of the Company within twelve (12) months
after the date the Plan is adopted. Such stockholder approval will be obtained in the manner and to the degree required under
Applicable Laws.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 12pt Times New Roman, Times, Serif">21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Underwater Stock Option Exchange Program</U>. Notwithstanding any contrary provision of the Plan, the Company&rsquo;s stockholders
on April 29, 2010 approved a one-time-only option exchange program described in the proxy statement with respect to the Company&rsquo;s
2010 Annual Meeting of Stockholders under which certain outstanding Options may be surrendered or cancelled at the election of
the person holding such Option (and therefore made available for future grant under Section 3(c) to the extent such Option was
granted under the Plan or the 1995 Plan) in exchange for new Options with a lower exercise price (the &ldquo;Exchange Program&rdquo;).
The Administrator may provide for, and the Company may implement, the Exchange Program within one hundred and twenty (120) days
after the date of such Annual Meeting.</FONT></P>

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

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