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&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;As of&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;July 31, 2013, the Company has authorized two&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;classe&lt;/font&gt;&lt;font style="FONT-SIZE: 10pt;" size="2"&gt;s of membership units: Class A and&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;Class B. At July 31, 2013, there are&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;46,697,107&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;Class&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;A units issued and outstanding and 15,000,000&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;Class B units issued and outstanding.&amp;#160; At October 31, 2012, there were 38,622,107 Class A units and -0- Class B units issued and outstanding.&amp;#160;&amp;#160; The total units issued and outstanding are&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;61,697,107 and 38,622,107 at July 31, 2013 and October 31, 2012, respectively&lt;/font&gt;&lt;font style="FONT-SIZE: 10pt;" size="2"&gt;.&amp;#160;&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;On July 31, 2013, the Company issued 8,075,000 Class A units and 15,000,000 Class B units for total proceeds of approximately $6.9 million.&lt;/font&gt;&lt;font style="FONT-SIZE: 10pt;" size="2"&gt;&amp;#160; The Company is authorized to issue an aggregate of&lt;/font&gt; &lt;font style="FONT-SIZE: 10pt;" size="2"&gt;80,000&lt;/font&gt;&lt;font style="FONT-SIZE: 10pt;" size="2"&gt;,000 units&lt;/font&gt;&lt;font style="FONT-SIZE: 10pt;" size="2"&gt;, of which 65,000,000 have been designated Class A units and 15,000,000 has been designated as Class B units. Members of the Company are holders of units who have been admitted as members and who hold at least 2,500 units. Any holder of units who is not a member will not have voting rights. Transferees of units must be approved by our board of governors to become members. Members are entitled to one vote for each unit held. Subject to the Member Control Agreement, all units share equally in the profits and losses and distributions of assets on a per unit basis.&lt;/font&gt;&lt;/p&gt;
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