Document:

M
E M O R A N D U M

 

 

	 	TO:	Directors,
                                         Executive Officers and Other Key Employees
	 	FROM:	Robert
                                         Goldstein (Chairman of the Board, President and Chief Executive Officer)
		RE:	Transactions
                                         Involving Company Securities—Our Pre-Clearance and Blackout Periods Procedures
                                         and Broker Interface Procedures

 

This
memorandum, and the corresponding Insider Trading Policy set forth herein, and the Consent Resolutions of the Board of Directors
approving such Insider Trading Policy, shall be incorporated into the books and records of US Nuclear Corp.

 

As
you know, the Company’s Board of Directors recently adopted the Company’s Insider Trading Policy. The new policy is
set forth in the US Nuclear Corp. Insider Trading Policy (the “Insider Trading Policy”), the consent resolutions of
the Board of Directors, and this memorandum to all employees, officers and directors dated April 19, 2018. All capitalized terms
in this memorandum are defined in the Insider Trading Policy which is available for review on EDGAR. The Insider Trading Policy
includes procedures governing transactions in Company Securities by directors and executive officers, including procedures to
address the two-day Form 4 filing requirement applicable to all directors and executive officers subject to Section 16. Certain
of the new procedures apply also to non-executive employees who regularly become aware of earnings information or other material
nonpublic information about the Company. This memorandum describes these procedures. Capitalized terms in this memorandum are
defined in the Insider Trading Policy.

 

Pre-Clearance
Procedures

 

The
persons designated by the Compliance Officer as being subject to these procedures, as well as the Family Members and Controlled
Entities of such persons, may not engage in any transaction in Company Securities without first obtaining pre-clearance of the
transaction from the Compliance Officer. A request for pre-clearance should be submitted to the Compliance Officer at least two
(2) business days in advance of the proposed transaction. The Compliance Officer is under no obligation to approve a transaction
submitted for pre-clearance and may determine not to permit the transaction. If a person seeks pre-clearance and permission to
engage in the transaction is denied, then he or she should refrain from initiating any transaction in Company Securities and should
not inform any other person of the restriction.

 

When
a request for pre-clearance is made, the requestor should carefully consider whether he or she may be aware of any material nonpublic
information about the Company and should describe fully those circumstances to the Compliance Officer. The requestor should also
indicate whether he or she has affected any non-exempt “opposite-way” transactions within the past six months, and
should be prepared to report the proposed transaction on an appropriate Form 4 or Form 5. The requestor should also be prepared
to comply with SEC Rule 144 and file Form 144, if necessary, at the time of any sale.

 

    1 

     

    

  

Quarterly
Trading Restrictions

 

The
persons designated by the Compliance Officer as subject to this restriction, as well as their Family Members or Controlled Entities,
may not conduct any transactions involving the Company’s Securities (other than as specified by this Policy), during a “Blackout
Period” beginning twenty-one (21) days prior to the end of each fiscal quarter and ending on the second (2nd)
business day following the date of the public release of the Company’s earnings results for that quarter. In other words,
these persons may only conduct transactions in Company Securities during the “Window Period” beginning on the second
(2nd) business day following the public release of the Company’s quarterly earnings and ending three (3) weeks
prior to the close of the next fiscal quarter.

 

Event-Specific
Trading Restriction Periods

 

From
time to time, an event may occur that is material to the Company and is known by only a few directors, officers and/or employees.
So long as the event remains material and nonpublic, the persons designated by the Compliance Officer may not trade Company Securities.
In addition, the Company’s financial results may be sufficiently material in a particular fiscal quarter that, in the judgment
of the Compliance Officer, designated persons should refrain from trading in Company Securities even sooner than the typical Blackout
Period described above. In that situation, the Compliance Officer may notify these persons that they should not trade in the Company’s
Securities, without disclosing the reason for the restriction.

 

The
existence of an event-specific trading restriction period or extension of a Blackout Period will not be announced to the Company
as a whole and should not be communicated to any other person. Even if the Compliance Officer has not designated you as a person
who should not trade due to an event-specific restriction, you should not trade while aware of material nonpublic information.
Exceptions will not be granted during an event-specific trading restriction period.

 

Exceptions

 

The
quarterly trading restrictions and event-driven trading restrictions do not apply to those transactions to which the Policy does
not apply, as described in the Policy under the headings “Transactions Under Company Plans” and “Transactions
Not Involving a Purchase or Sale.” Further, the requirement for preclearance, the quarterly trading restrictions and event-driven
trading restrictions do not apply to transactions conducted pursuant to approved Rule 10b5-1 plans, described in the Policy under
the heading “Rule 10b5-1 Plans.”

 

Our
Broker Interface Procedures

 

The
reporting of transactions under Section 16(a) requires a tight interface with brokers handling transactions for our executives.
A knowledgeable, alert broker can act as a gatekeeper, helping ensure compliance with our pre-clearance procedures and helping
prevent inadvertent violations. We have established a coordinated procedure with of brokerage firm. Those of you who are not currently
using as your broker are encouraged to enter all your Company

Securities
transactions through him/her.

 

    2 

     

    

 

Whether
you choose to utilize your own broker, we will require that you and your broker sign the enclosed Broker Instruction/Representation,
which imposes two requirements on the broker handling your transaction in company stock:

 

		1.	Not
                                         to enter any order (except for orders under pre-approved Rule 10b5-1 plans) without:

		(a)	first
                                         verifying with the Company that your transaction was pre-cleared; and

		(b)	complying
                                         with the brokerage firm’s compliance procedures (e.g., Rule 144);

 

2.       To
report immediately to the company via:

	 	(a)	telephone;
                                         and
		(b)	in
                                         writing (via e-mail or fax) the details of every transaction involving Company Securities,
                                         including gifts, transfers, pledges, and all 10b5-1 transactions.

 

If
you have not already done so, please sign and have your broker sign the enclosed Broker Instruction/Representation Form and return
it to us no later than so that we can work out with your broker a coordinated procedure.

 

Post-Termination
Transactions

 

The
Policy continues to apply to transactions in Company Securities even after termination of service to the Company. If an individual
is in possession of material nonpublic information when his or her service terminates, that individual may not trade in Company
Securities until that information has become public or is no longer material.

 

Company
Assistance

 

Any
person who has a question about this memorandum or the Policy, or their application to any proposed transaction may obtain additional
guidance from the Compliance Officer.

 

Certifications

 

All
directors, officers and other employees subject to the procedures set forth in this memorandum must certify their understanding
of, and intent to comply with, the Company’s Policy, including the procedures set forth in this memorandum. Please return
the enclosed certification immediately.

 

Power
of Attorney

 

In
order to enable the Company to prepare and file the Forms 4 on a timely basis, it is imperative that you sign and return immediately
the enclosed power of attorney.

 

    3 

     

    

 

 

 

CERTIFICATION

 

I
certify that:

		1.	I
                                         have read and understand the Company’s Insider Trading Policy and the Memorandum
                                         to Directors, Executive Officers and Other Key Employees dated April 19, 2018 covering
                                         pre-clearance and broker interface procedures and blackout periods (collectively, the
                                         “Insider Trading Policy”). 

		2.	I
                                         understand that the Compliance Officer is available to answer any questions I have regarding
                                         the Insider Trading Policy.

		3.	Since
                                         April 19, 2018, or such shorter period of time that I have been an employee or director
                                         of the Company, I have complied with the Insider Trading Policy.

		4.	I
                                         will continue to comply with the Insider Trading Policy for as long as I am subject to
                                         the Policy.

 

 

________________________________________

Name:
______________________________

Date:

 

 

 

 

 

    4US
NUCLEAR CORP.

INSIDER
TRADING POLICY

 

Purpose

 

This
Insider Trading Policy (the “Policy”) provides guidelines with respect to transactions in the securities of US Nuclear
Corp., a Delaware corporation (the “Company”), and the handling of confidential information about the Company and
the companies with which the Company does business. The Company’s Board of Directors has adopted this Policy to promote
compliance with federal, state and foreign securities laws that prohibit certain persons who are aware of material nonpublic information
about a company from: (i) trading in securities of that company; or (ii) providing material nonpublic information to other persons
who may trade on the basis of that information.

 

Persons
Subject to the Policy

 

This
Policy applies to all officers and directors of the Company and its subsidiaries, all members of the Company’s Board of
Directors and all employees of the Company and its subsidiaries. The Company may also determine that other persons should be subject
to this Policy, such as contractors or consultants who have access to material nonpublic information. This Policy also applies
to family members, other members of a person’s household and entities controlled by a person covered by this Policy, as
described below.

 

Transactions
Subject to the Policy

 

This
Policy applies to transactions in the Company’s securities (collectively referred to in this Policy as “Company Securities”),
including the Company’s common stock, options to purchase common stock, the Company’s bonds or notes, or any other
type of securities that the Company may issue, including (but not limited to) preferred stock, convertible debentures and warrants,
as well as derivative securities that are not issued by the Company, such as exchange-traded put or call options or swaps relating
to the Company Securities.

 

Individual
Responsibility

 

Persons
subject to this Policy have ethical and legal obligations to maintain the confidentiality of information about the Company and
to not engage in transactions in Company Securities while in possession of material nonpublic information. Each individual is
responsible for making sure that he or she complies with this Policy, and that any family member, household member or entity whose
transactions are subject to this Policy, as discussed below, also comply with this Policy. In all cases, the responsibility for
determining whether an individual is in possession of material nonpublic information rests with that individual, and any action
on the part of the Company, the Compliance Officer or any other employee or director pursuant to this Policy (or otherwise) does
not in any way constitute legal advice or insulate an individual from liability under applicable securities laws. You could be
subject to severe legal penalties and disciplinary action by the Company for any conduct prohibited by this Policy or applicable
securities laws, as described below in more detail under the heading “Consequences of Violations.”

 

    1 

     

    

 

Administration
of the Policy

 

Robert
I. Goldstein, the Company’s President and Chief Executive Officer, shall serve as the Compliance Officer for the purposes
of this Policy, and in his absence, Rachel Boulds, the Company’s Chief Financial Officer, or another employee designated
by the Compliance Officer shall be responsible for administration of this Policy. All determinations and interpretations by the
Compliance Officer or his designee shall be final.

 

Statement
of Policy

 

It
is the policy of the Company that no director, officer or other employee of the Company (or any other person designated by this
Policy or by the Compliance Officer as subject to this Policy) who is aware of material nonpublic information relating to the
Company may, directly, or indirectly through family members or other persons or entities:

 

		1.	Engage
                                         in transactions in Company Securities, except as otherwise specified in this Policy under
                                         the headings “Transactions Under Company Plans,” “Transactions Not
                                         Involving a Purchase or Sale” and “Rule 10b5-1 Plans;”

 

		2.	Recommend
                                         the purchase or sale of any Company Securities;

 

		3.	Disclose
                                         material nonpublic information to persons within the Company whose jobs do not require
                                         them to have that information, or outside of the Company to other persons, including,
                                         but not limited to, family, friends, business associates, investors and expert consulting
                                         firms, unless any such disclosure is made in accordance with the Company’s policies
                                         regarding the protection or authorized external disclosure of information regarding the
                                         Company; or

 

		4.	Assist
                                         anyone engaged in, or to engage in, the above activities. 

 

In
addition, it is the policy of the Company that no director, officer or other employee of the Company (or any other person designated
as subject to this Policy) who, in the course of working for the Company, learns of material nonpublic information about a company
with which the Company does business, including a supplier or vendor of the Company, may trade in that company’s securities
until the information becomes public or is no longer material.

 

There
are no exceptions to this Policy, except as specifically noted herein. Transactions that may be necessary or justifiable for independent
reasons (such as the need to raise money for an emergency expenditure), or small transactions, are not excepted from this Policy.
The securities laws do not recognize any mitigating circumstances, and, in any event, even the appearance of an improper transaction
must be avoided to preserve the Company’s reputation for adhering to the highest standards of conduct.

    2 

     

    

 

Definition
of Material Nonpublic Information

 

Material
Information. Information is considered “material” if a reasonable investor would consider that information important
in making a decision to buy, hold or sell securities. Any information that could be expected to affect the Company’s stock
price, whether it is positive or negative, should be considered material. There is no “bright-line” standard for assessing
materiality; rather, materiality is based on an assessment of all of the facts and circumstances and is often evaluated by enforcement
authorities with the benefit of hindsight. While it is not possible to define all categories of material information, some examples
of information that may be regarded as material are:

 

•
Financial results;

 

•
Projections of future revenues, earnings or losses, or other earnings guidance;

 

•
Accounting issues;

 

•
A pending or proposed merger, acquisition or tender offer;

 

•
A pending or proposed acquisition or disposition of a significant asset;

 

•
A pending or proposed joint venture, alliances or strategic partnerships;

 

•
A Company restructuring;

 

•
A disposition of a subsidiary;

 

•
Significant related party transactions;

 

•
A change in dividend policy, the declaration of a stock split, or an offering of additional securities;

 

•
Bank borrowings or other financing transactions out of the ordinary course, including equity or debt offerings;

 

•
The establishment of a repurchase program for Company Securities;

 

•
Major marketing changes and initiatives;

 

•
A change in management;

 

•
A change in auditors or notification that the auditor’s reports may no longer be relied upon;

 

•
Development of a significant new product, process, or service;

 

    3 

     

    

 

•
Pending or threatened significant litigation, or the resolution of such litigation;

 

•
Impending bankruptcy or the existence of severe liquidity problems;

 

•
Significant actions by regulatory bodies;

 

•
Major labor disputes;

 

•
The gain or loss of a significant contractor or supplier;

 

•
The imposition of a ban on trading in Company Securities or the securities of another company; or

 

•
Ratings change by a rating agency.

 

When
Information is Considered Public. Information that has not been disclosed to the public is generally considered to be nonpublic
information. In order to establish that the information has been disclosed to the public, it may be necessary to demonstrate that
the information has been widely disseminated. Information generally would be considered widely disseminated if it has been disclosed
through the Dow Jones “broad tape,” newswire services, a broadcast on widely-available radio or television programs,
publication in a widely-available newspaper, magazine or news website, or public disclosure documents filed with the Securities
and Exchange Commission (the “SEC”) that are available on the SEC’s website. By contrast, information would
likely not be considered widely disseminated if it is available only to the Company’s directors, employees, consultants
or if it is only available to a select group of analysts, brokers and institutional investors.

 

Once
information is widely disseminated, it is still necessary to afford the investing public with sufficient time to absorb the information.
As a general rule, information should not be considered fully absorbed by the marketplace until after the first full trading day
after the day on which the information is released. For example, the Company’s first fiscal quarter ends on March 31 and
assume the Company’s results are reported on Monday, April 23 at 9:00 a.m. Eastern Time (which is before trading on the
NASDAQ Stock Market); no trading would be permitted until Tuesday, April 24. Alternatively, the Company’s first fiscal quarter
ends on March 31 and assume the Company’s results are reported on Monday, April 23 at 10:00 a.m. Eastern time (which is
after trading begins on NASDAQ); no trading would be permitted until Wednesday, April 25. Depending on the particular circumstances,
the Company may determine that a longer or shorter period should apply to the release of specific material nonpublic information.

 

Transactions
by Family Members and Others

 

This
Policy also applies to your family members who reside with you (including a spouse, a child, a child away at college, stepchildren,
grandchildren, parents, stepparents, grandparents, siblings and in-laws), anyone else who lives in your household, and any family
members who do not live in your household but whose transactions in Company Securities are directed by you or are subject to your
influence or control, such as parents or children who consult with you before they trade in Company Securities (collectively referred
to as “Family Members”). You are responsible for the transactions of these other persons and therefore should make
them aware of the need to confer with you before they trade in Company Securities, and you should treat all such transactions
for the purposes of this Policy and applicable securities laws as if the transactions were for your own account. This Policy does
not, however, apply to personal securities transactions of Family Members where the purchase or sale decision is made by a third
party not controlled by, influenced by or related to you or your Family Members (such as a mutual fund).

 

    4 

     

    

 

Transactions
by Entities that You Influence or Control

 

This
Policy applies to any entities that you influence or control, including any corporations, limited liability companies, partnerships
or trusts (collectively referred to as “Controlled Entities”), and transactions by these Controlled Entities should
be treated for the purposes of this Policy and applicable securities laws as if they were for your own account.

 

Transactions
Under Company Plans

 

This
Policy does not apply in the case of the following transactions, except as specifically noted:

 

Stock
Option Exercises. This Policy does not apply to the exercise of an employee stock option acquired pursuant to the Company’s
plans, or to the exercise of a tax withholding right pursuant to which a person has elected to have the Company withhold shares
subject to an option to satisfy tax withholding requirements. This Policy does apply, however, to any sale of common stock as
part of a broker-assisted cashless exercise of an option, or any other market sale for the purpose of generating the cash needed
to pay the exercise price of an option.

 

Restricted
Stock or Restricted Stock Unit Awards. This Policy does not apply to the vesting of restricted stock or restricted stock units,
or the exercise of a tax withholding right pursuant to which you elect to have the Company withhold shares of stock to satisfy
tax withholding requirements upon the vesting of any restricted stock or restricted stock units. The Policy does apply, however,
to any market sale of restricted stock or sale of common stock underlying restricted stock or restricted stock units.

 

The
Company 401(k) Plan. This Policy does not apply to purchases of Company Securities in the Company’s 401(k) plan resulting
from your periodic contribution of money to the 401(k) plan pursuant to your payroll deduction election. This Policy does apply,
however, to certain elections you may make under the Company’s 401(k) plan, including: (a) an election to increase or decrease
the percentage of your periodic contributions that will be allocated to the Company stock fund; (b) an election to make an intra-plan
transfer of an existing account balance into or out of the Company stock fund; (c) an election to borrow money against your 401(k)
plan account if the loan will result in a liquidation of some or all of your Company stock fund balance; and (d) an election to
pre-pay a 401(k) plan loan if the pre-payment will result in allocation of loan proceeds to the Company stock fund.

 

Other
Similar Transactions. Any other purchase of Company Securities from the Company or sales of Company Securities to the Company
are not subject to this Policy.

 

    5 

     

    

 

Transactions
Not Involving a Purchase or Sale

 

Bona
fide gifts are not transactions subject to this Policy, unless the person making the gift has reason to believe that the recipient
intends to sell the Company Securities while the officer, employee or director is aware of material nonpublic information, or
the person making the gift is subject to the trading restrictions specified below under the heading “Additional Procedures”
and the sales by the recipient of the Company Securities occur during a blackout period. Further, transactions in mutual funds
that are invested in Company Securities are not transactions subject to this Policy.

 

Special
and Prohibited Transactions

 

The
Company has determined that there is a heightened legal risk and/or the appearance of improper or inappropriate conduct if the
persons subject to this Policy engage in certain types of transactions. It therefore is the Company’s policy that any persons
covered by this Policy may not engage in any of the following transactions, or should otherwise consider the Company’s preferences
as described below:

 

Short-Term
Trading. Any director or officer of the Company who purchases (or sells) Company Securities in the open market may not sell
(or purchase) any Company Securities of the same class during the six months following the purchase (or vice versa) without the
prior approval of the Compliance Officer or his designee.

 

Pursuant
to Section 16(b) of the Securities Act of 1933, a director or officer that engages in short-term trading shall be liable to the
Company to pay damages consisting of the short-swing profits realized by the officer or director regardless of the intent of the
director or officer in engaging in the transactions. Occasionally, prejudgment interest and other amounts also may be payable.
The damages are payable to the Company. Section 16(b) is enforced solely through private actions by either the Company or the
stockholders acting on the Company’s behalf. There is no criminal liability associated with violation of Section 16(b).

 

Short
Sales. Short sales of Company Securities (i.e., the sale of a security that the seller does not own) are prohibited.
In addition, Section 16(c) of the Exchange Act prohibits officers and directors from engaging in short sales. (Short sales arising
from certain types of hedging transactions are governed by the paragraph below captioned “Hedging Transactions.”)

 

Publicly-Traded
Options. Transactions in put options, call options or other derivative securities, on an exchange or in any other organized
market, are prohibited by this Policy. (Option positions arising from certain types of hedging transactions are governed by the
next paragraph below.)

 

Hedging
Transactions. Hedging or monetization transactions can be accomplished through a number of possible mechanisms, including
through the use of financial instruments such as prepaid variable forwards, equity swaps, collars and exchange funds. Directors,
officers and employees are prohibited from engaging in any hedging or monetization transactions.

 

    6 

     

    

 

Margin
Accounts and Pledged Securities. Securities held in a margin account may be sold by the broker without the customer’s
consent if the customer fails to meet a margin call. Similarly, securities pledged as collateral for a loan may be sold in foreclosure
if the customer defaults on the loan. A margin sale or foreclosure sale that occurs at a time when the customer is aware of material
nonpublic information or otherwise are not permitted to trade in Company Securities (e.g. a blackout period) may, under some circumstances,
result in unlawful trading. Directors, officers and employees are prohibited from placing Company Securities in margin accounts
and pledging Company Securities.

 

Standing
and Limit Orders. Standing and limit orders (except standing and limit orders under approved Rule 10b5-1 Plans, as described
below) create heightened risks for insider trading violations similar to the use of margin accounts. There is no control over
the timing of purchases or sales that result from standing or limit orders to a broker, and as a result the broker could execute
a transaction when a director, officer or other employee is in possession of material nonpublic information and therefore an insider
trading violation may occur. If a person subject to this Policy determines that they must use a standing order or limit order,
the order should be limited to short duration and should otherwise comply with the restrictions and procedures outlined below
under the heading “Additional Procedures.”

 

Additional
Procedures - Pre-Clearance Procedures, Quarterly Trading Restrictions and Event-Specific Trading Restriction Periods

 

The
Company has established additional procedures in order to assist the Company in the administration of this Policy, to facilitate
compliance with laws prohibiting insider trading while in possession of material nonpublic information, and to avoid the appearance
of any impropriety. These additional procedures are applicable only to those individuals described below.

 

Pre-Clearance
Procedures. The executive officers, directors, and those persons designated by the Board of Directors as Section 16 filers
(collectively, the “Section 16 Filers”) as well as the Family Members and Controlled Entities of such persons, may
not engage in any transaction in Company Securities without first obtaining pre-clearance of the transaction from the Compliance
Officer or his designee. A request for pre-clearance must be submitted to the Compliance Officer or his designee. The Compliance
Officer or his designee is under no obligation to approve a transaction submitted for pre-clearance and may determine not to permit
the transaction. If a person seeks pre-clearance and permission to engage in the transaction is denied, then he or she shall refrain
from initiating any transaction in Company Securities and should not inform any other person of the restriction.

 

When
a request for pre-clearance is made, the requestor should carefully consider whether he or she may be aware of any material nonpublic
information about the Company and should describe fully those circumstances to the Compliance Officer. The requestor should also
indicate whether he or she has affected any non-exempt “opposite-way” transactions (e.g., sale and purchase or purchase
and sale) within the past six months and should be prepared to report the proposed transaction on an appropriate Form 4 or Form
5. The requestor should also be prepared to comply with SEC Rule 144 and file Form 144, if necessary, at the time of any sale.

 

    7 

     

    

 

Quarterly
Trading Restrictions. The Section 16 Filers, senior vice presidents, general managers and those employees that have stock
options and/or restricted stock units and other persons designated by the Compliance Officer as subject to this restriction, as
well as their Family Members or Controlled Entities, may not conduct any transactions involving the Company Securities (other
than as specified by this Policy), during a “Blackout Period” beginning with the sixteenth day of the last month of
each fiscal quarter and ending on the beginning of the second trading day following the first full trading day beginning on the
date of public disclosure of the Company’s earnings results for that quarter. For example, the Company’s first fiscal
quarter ends on March 31 and assume the Company’s results are reported on Monday, April 23 at 9:00 a.m. Eastern Time (which
is before trading on the NASDAQ Stock Market); no trading would be permitted until Tuesday, April 24. Alternatively, the Company’s
first fiscal quarter ends on March 31 and assume the Company’s results are reported on Monday, April 23 at 10:00 a.m. Eastern
time (which is after trading begins on NASDAQ Stock Market); no trading would be permitted until Wednesday, April 25. Under certain
very limited circumstances, a person subject to this restriction may be permitted to trade during a Blackout Period, but only
if the Compliance Officer concludes that the person does not in fact possess material nonpublic information. Persons wishing to
trade during a Blackout Period must contact the Compliance Officer for approval at least two business days in advance of any proposed
transaction involving Company Securities.

 

Event-Specific
Trading Restriction Periods. From time to time, in the judgment of the Compliance Officer, the Section 16 Filers and other
employees designated by the Compliance Officer should refrain from trading in Company Securities even sooner than the typical
Blackout Period described above. In that situation, the Compliance Officer or his designee may notify these persons that they
may not trade in the Company Securities, without disclosing the reason for the restriction.

 

Exceptions.
The quarterly trading restrictions and event-driven trading restrictions do not apply to those transactions to which this
Policy does not apply, as described above under the headings “Transactions Under Company Plans” and “Transactions
Not Involving a Purchase or Sale.” Further, the requirement for pre-clearance, the quarterly trading restrictions and event-driven
trading restrictions do not apply to transactions conducted pursuant to approved Rule 10b5-1 plans, described under the heading
“Rule 10b5-1 Plans.”

 

    8 

     

    

  

Rule
10b5-1 Plans

 

Rule
10b5-1 under the Exchange Act provides a defense from insider trading liability under Rule 10b-5. In order to be eligible to rely
on this defense, a person subject to this Policy must enter into a Rule 10b5-1 plan for transactions in Company Securities that
meets certain conditions specified in the Rule (a “Rule 10b5-1 Plan”). If the plan meets the requirements of Rule
10b5-1, Company Securities may be purchased or sold without regard to certain insider trading restrictions. To comply with the
Policy, a Rule 10b5-1 Plan must be approved by the Compliance Officer or his designee and meet the requirements of Rule 10b5-1.
No further pre-approval of transactions conducted pursuant to the Rule 10b5-1 Plan will be required.

 

In
general, a Rule 10b5-1 Plan must be entered into at a time when the person entering into the plan is not aware of material nonpublic
information. Once the plan is adopted, the person must not exercise any influence over the amount of securities to be traded,
the price at which they are to be traded or the date of the trade. The plan must either specify the amount, pricing and timing
of transactions in advance or delegate discretion on these matters to an independent third party.

 

Post-Termination
Transactions

 

This
Policy continues to apply to transactions in Company Securities even after termination of service to the Company. If an individual
is in possession of material nonpublic information when his or her service terminates, that individual may not trade in Company
Securities until that information has become public or is no longer material. The pre-clearance procedures specified under the
heading “Additional Procedures” above, however, will cease to apply to transactions in Company Securities upon the
expiration of any Blackout Period or other Company-imposed trading restrictions applicable at the time of the termination of service.

 

Consequences
of Violations

 

The
purchase or sale of securities while aware of material nonpublic information, or the disclosure of material nonpublic information
to others who then trade in the Company Securities, is prohibited by the federal and state laws. Insider trading violations are
pursued vigorously by the SEC, U.S. Attorneys and state enforcement authorities as well as the enforcement authorities of foreign
jurisdictions. Punishment for insider trading violations is severe and could include significant fines and imprisonment. While
the regulatory authorities concentrate their efforts on the individuals who trade, or who tip inside information to others who
trade, the federal securities laws also impose potential liability on companies and other “controlling persons” if
they fail to take reasonable steps to prevent insider trading by company personnel.

 

In
addition, an individual’s failure to comply with this Policy may subject the individual to Company imposed sanctions, up
to and including termination for cause, whether the employee’s failure to comply results in a violation of law. Nevertheless,
a violation of law, or even an SEC investigation that does not result in prosecution, can tarnish a person’s reputation
and irreparably damage a career.

 

    9 

     

    

 

Company
Assistance

 

Any
person who has a question about this Policy or its application to any proposed transaction may obtain additional guidance from
the Compliance Officer, Robert I. Goldstein, who can be reached by telephone at 818-883-7043 or by e-mail at rgoldsteinta@gmail.com
or Rachel Boulds, who can be reached by telephone at the number above, or by e-mail at rachelbouldscpa@hotmail.com.

 

Certification

 

All
persons subject to this Policy must certify their understanding of, and intent to comply with, this Policy.

 

CERTIFICATION

 

I
certify that:

 

		1.	I
                                         have read and understand the Company’s Insider Trading Policy (the “Policy”).
                                         I understand that the Compliance Officer is available to answer any questions I have
                                         regarding the Policy.

 

		2.	Since
                                         the date the Policy became effective, or such shorter period of time that I have been
                                         an employee or director of the Company, I have complied with the Policy.

 

		3.	I
                                         will continue to comply with the Policy for as long as I am subject to the Policy.

 

 

Print
Name:_______________________________

 

 

Signature:_________________________________

 

Date:_______________________

 

 

 

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