NOTE O SUBSEQUENT EVENTS
On October 31, 2011 a fire started in a suite
of offices adjacent to our corporate offices. The fire completely destroyed 4 offices and caused smoke damage to the remainder
of the suites. This has caused significant efforts to be taken to relocate offices, acquire replacement furniture and equipment
and to reassign responsibilities to continue to operate the Company. Due to redundancy in data backups and sound Information Technology
Internal Controls, it is believed that no data was lost although the Company continues to review its operating data and has not
found any loss of data. Hard copy files relating to accounting such as bank statements, check supporting documents were lost but
it is believed that the Company can reconstruct or replace any lost documents.