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&lt;p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.75in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Preferred Stock&lt;/p&gt;

&lt;p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.75in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company is authorized to issue 200
preferred shares of $0.0001 par value. As of June 30, 2013 and December 31, 2012 the Company has 200 shares of preferred stock
issued and outstanding.Although the preferred stock carries no dividend, distribution, liquidation or conversion rights, each share
of preferred stock carries ten million (10,000,000) votes and holders of our preferred stock are able to vote together with our
common stockholders on all matters. Consequently, the holder of our preferred stock is able to unilaterally control the election
of our board of directors and, ultimately, the direction of our Company.&lt;/p&gt;

&lt;p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.75in"&gt;&lt;/p&gt;



&lt;p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.75in"&gt;&amp;#160;&amp;#160;&lt;/p&gt;

&lt;p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Common stock&lt;/p&gt;

&lt;p style="font: 11pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company is authorized to issue 50,000,000
shares of $0.0001 par value of common stock. As of June 30, 2013 and December 31, 2012 the Company has 15,520,799 and 15,216,848
shares of common stock as issued and outstanding.&lt;/p&gt;

&lt;p style="font: 11pt/12pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On January 28, 2013, the Company issued an
aggregate of 49,951 shares of common stock to employees and consultants of the Company. The shares were valued at market price
of $1.65 and the market value of stock on the date of issuance was $82,418.&lt;/p&gt;

&lt;p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;On May 31, 2013, the Company issued an aggregate
of 254,000 shares of common stock to consultants of the Company. The shares were valued at market price of $1.20 and the market
value of stock on the date of issuance was $304,800.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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