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&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In January 2013, the FASB issued ASU 2013-01,
Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This newly issued accounting
standard clarifies that the scope of ASU 2011-11 applies to derivatives, including bifurcated embedded derivatives, repurchase
agreements, and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset
or subject to an enforceable master netting arrangement or similar agreement. This ASU is required to be applied retrospectively
and is effective for fiscal years, and interim periods within those years, beginning on or after January&amp;#160;1, 2013. As this
accounting standard only requires enhanced disclosure, the adoption of this standard is not expected to impact our financial position
or results of operations.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;In July 2012, the FASB issued ASU 2012-02,
Intangibles &amp;#150; Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This newly issued
accounting standard simplifies how an entity tests indefinite-lived intangible assets by permitting an entity to first assess qualitative
factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining
whether it is necessary to perform the quantitative impairment test. The more likely than not threshold is defined as having a
likelihood of more than 50 percent. &lt;font style="color: windowtext"&gt;This ASU is effective for annual and interim impairment tests
for fiscal years beginning after September 15, 2012. &lt;/font&gt;As the objective is to reduce the cost and complexity of impairment
testing, adoption of this standard did not impact our financial position or results of operations.&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Except for rules and interpretive releases
of the SEC under authority of federal securities laws and a limited number of grandfathered standards, the&lt;i&gt; FASB Accounting Standards
Codification&amp;#153; &lt;/i&gt;(&amp;#147;ASC&amp;#148;) is the sole source of authoritative GAAP literature recognized by the FASB and applicable
to the Company. Management has reviewed the aforementioned rules and releases and believes any effect will not have a material
impact on the Company's present or future financial statements.&lt;/p&gt;

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