13D Filing: Lone Star Value Management and Crossroads Systems Inc (CRDS)

(d)  No Reporting Person has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors).

(e)  Other than as set forth herein, no Reporting Person has, during the last five years,
been party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject
to, federal or state securities laws or finding any violation with respect to such laws. Lone Star Value Management and Mr. Eberwein
are each subject to a Securities and Exchange Commission (“SEC”) administrative order, dated February 14, 2017 (File
No. 3-17847), relating to alleged violations of Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”)
and the rules promulgated thereunder, including failing to disclose the members of a stockholder group, and further allegations
that Mr. Eberwein violated Section 16(a) of the Exchange Act and the rules promulgated thereunder, including failing to timely
file initial statements of beneficial ownership on Form 3 and changes thereto on Form 4. Without admitting or denying any violations,
(i) Lone Star Value Management agreed to cease and desist from committing or causing any violations of Section 13(d) of the Exchange
Act and Rules 13d-1 and 13d-2 promulgated thereunder, and paid a civil penalty of $120,000 to the SEC and (ii) Mr. Eberwein agreed
to cease and desist from committing or causing any violations of (x) Section 13(d) of the Exchange Act and Rules 13d-1 and 13d-2
promulgated thereunder and (y) Section 16(a) of the Exchange Act and Rules 16a-2 and 16a-3 promulgated thereunder, and paid a civil
penalty to the SEC in the amount of $90,000.

(f)  Mr. Eberwein is a citizen of the United States of America.

Item 3 is hereby amended and restated to
read as follows:

The 1,707 Shares
directly owned by Lone Star Value Co-Invest I were acquired upon the transfer of such Shares from Mr. Eberwein, who is the sole
investor and sole owner of Lone Star Value Co-Invest I.

The 644 Shares
directly owned by Lone Star Value GP were acquired upon a pro rata in-kind distribution from Lone Star Value Investors to its partners.

The 86,739 Shares
directly owned by Mr. Eberwein were acquired upon a pro rata in-kind distribution from Lone Star Value Investors to its partners.