The Reporting Persons acquired their shares of Common Stock because, in their opinion, the shares represented an attractive investment opportunity. The Reporting Persons expect to evaluate on an ongoing basis the Issuer’s financial condition and prospects and its interest in, and intentions with respect to, the Issuer and their investment in the securities of the Issuer. This evaluation may be based on various factors, including whether various strategic transactions have occurred or may occur, the Issuer’s business and financial condition, results of operations and prospects, general economic and industry conditions, the securities markets in general and those for the Issuer’s securities in particular, as well as other developments and other investment opportunities. Accordingly, each Reporting Person reserves the right to change its intentions and develop plans or proposals at any time, as it deems appropriate. On May 19, 2011, a representative of Pentwater Capital learned that the articles of incorporation of the Issuer, a Colorado corporation, had been amended in April 2006 to permit shareholders to take action by less than unanimous written consent, although that amendment was neither filed nor disclosed in the Issuer SEC’s filings. Subsequently, Pentwater Capital engaged Colorado counsel to examine the possibility of Pentwater Capital soliciting written consents of no more than ten shareholders to replace a majority of the directors then serving on the Issuer’s board of directors. After determining that such a course was feasible and identifying three persons who were willing to serve as replacement directors, on May 25, 2011, Pentwater Capital began soliciting written consents of shareholders to take the following actions: (a) the removal of Mindy Wang, Dora Dong, Mike Steingrebe, Lauren Byrne, and Jeff Watson from the Issuer’s board of directors; and (b) the filling of three of the resulting vacancies by electing Aaron Todd Switz, Michael Edward O’Connor, Jr., and Todd Michael Altman to the Issuer’s board of directors. Each of Mr. Switz and Mr. O’Connor is an employee of Pentwater Capital. On June 3, 2011, counsel for Pentwater Capital delivered to the Issuer written consents of a majority in interest of the shareholders to take the foregoing actions, effective that date. After Jennifer Maliar resigned as a director of the Issuer effective June 6, 2011, the board of directors of the Issuer is currently composed of Mr. Switz, Mr. O’Connor, Mr. Altman, and Mr. Jimmy Wang. As of the date of this Schedule 13D, as amended, except as set forth above, none of the Reporting Persons has any present plan or intention that would result in or relate to any of the events referred to in paragraphs (a) through (j) of Item 4 of Schedule 13D. |