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&lt;p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"&gt;&lt;font style="font-weight: normal"&gt;In
August 2013, a shareholder derivative action was filed in the Court of Common Pleas of Philadelphia County naming as defendant
the Company, its directors and certain of its officers.&amp;#160; The complaint seeks unspecified amount of damages and principally
alleges breaches of fiduciary duty and gross mismanagement related to the Loan Agreement and Company&amp;#146;s prepayment of the
Promissory Note it issued to Montaur.&amp;#160; Based on a preliminary review and analysis of the complaints, the Company believes
that this lawsuit is without merit and intends to defend vigorously. The Company is not presently able to estimate the potential
losses, if any, related to this lawsuit. &lt;/font&gt;&lt;/p&gt;



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