VIA Email: info@cantoretfs.com, ComplianceNY@cantor.com, cantorPT@cantor.

com

VIA Fax: 203-662-3644 June 12, 2018

VIA Physical Delivery:

Cantor Fitzgerald
ATTN: Corporate Compliance
New York, 110 East 59th Street,
New York, NY, 10022

RE: Your Company’s Ongoing Counterfeiting of MAXD Stock

Dear Compliance Officer / Legal:

For at least the past year, your Company has been engaging in excessive Counterfeiting of MAXD Stock and you are
hereby provided 48 hours notice to correct this situation prior to multiple regulatory, political and media actions
being taken against your enterprise and its stakeholders, as well as you and all the other individuals responsible
for this fraud.

Max Sound Corporation has engaged a leading provider of Regulation SHO compliance monitoring, short sale
trading statistics and market integrity surveillance. As you well know, Regulation SHO requires bona-fide
market-making activities to include making purchases and sales in roughly comparable amounts. The
Commission has stated that bona-fide market-making DOES NOT include activity that is related to speculative
selling strategies for investment purposes of the broker-dealer and is disproportionate to the usual market-
making patterns or practices of the broker-dealer in that security. Likewise, where a market maker posts
continually at or near the best offer, but does not also post at or near the best bid, the market maker's activities
do not qualify as bona-fide market making. Moreover, a market maker that continually executes short sales
away from its posted quotes is not considered to be engaged in bona-fide market making.

MAXD market makers have been monitored daily for compliance with Reg SHO and Fair Market-Making
Requirements. Here is a trading analysis of MAXD. BuyVol = real buyers at offer. SellVol = real sellers at
bid. ShortVolume = short sale trade identifiers for both EXEMPT (market makers) and NON-EXEMPT
(everyone else) shorts sales. The short selling as a percentage of daily trading volume in MAXD by your
firm is abnormally high, the market-making math related thereto does not reconcile and is not at all
compliant with Federal Securities Laws. We provide the following data in our reports:

DAILY TOTAL SHARES SHORTED (volume and price), which includes all shares shorted even by exempt
institutions such as market makers.

FAILURES TO DELIVER (naked shorts).

MARKET MAKER SHARE VOLUME (exposing exactly how many shares are being traded and the name of
the market-making firm traded through).
1

8861 Villa La Jolla Drive, #12109, La Jolla, CA 92039 | 800-327-MAXD

MARKET MAKER FRICTION FACTOR DATA (showing whether or not a fair market is being made in
each trading day).

CUMULATIVE TOTAL SHARES SHORTED data showing large short positions and the volume weighted
average price that a short squeeze will start.
Squeeze
Date ShortVolume Total Volume Percent Trigger $Value
6/8/2018 15,701,300 107,574,934 14.60% $0.0004 $6,281
6/7/2018 53,355,529 165,271,184 32.28% $0.0004 $21,342
6/6/2018 648,355,630 1,238,570,544 52.35% $0.0005 $324,178
6/5/2018 65,351,875 96,413,875 67.78% $0.0004 $26,141
6/4/2018 46,779,267 107,384,333 43.56% $0.0004 $18,712
6/1/2018 289,758,138 362,031,358 80.04% $0.0003 $86,927
5/31/2018 4,949,999 112,476,935 4.40% $0.0003 $1,485
5/30/2018 116,156,059 380,530,660 30.52% $0.0003 $34,847
5/29/2018 19,961,309 54,883,438 36.37% $0.0002 $3,992
5/25/2018 1,514,244 33,174,777 4.56% $0.0003 $454
5/24/2018 8,870,000 40,350,000 21.98% $0.0003 $2,661
5/23/2018 64,000,850 112,982,073 56.65% $0.0003 $19,200
5/22/2018 4,093,333 7,003,931 58.44% $0.0003 $1,228
5/21/2018 3,230,900 19,691,678 16.41% $0.0003 $969
5/18/2018 83,819,569 207,235,030 40.45% $0.0003 $25,146
5/17/2018 117,944,438 261,529,492 45.10% $0.0003 $35,383
5/16/2018 31,857,477 82,434,227 38.65% $0.0003 $9,557
5/15/2018 17,602,398 40,532,801 43.43% $0.0003 $5,281
5/14/2018 59,639,388 160,659,434 37.12% $0.0003 $17,892
5/11/2018 4,345,525 45,242,353 9.60% $0.0003 $1,304
5/10/2018 9,486,439 12,293,638 77.17% $0.0003 $2,846
5/9/2018 73,012,030 209,322,909 34.88% $0.0003 $21,904
5/8/2018 117,699,386 183,193,959 64.25% $0.0003 $35,310
5/7/2018 13,376,500 31,810,960 42.05% $0.0003 $4,013
5/4/2018 23,450,725 52,153,194 44.97% $0.0003 $7,035
5/3/2018 17,529,266 27,504,964 63.73% $0.0003 $5,259
5/2/2018 18,156,576 54,003,987 33.62% $0.0003 $5,447
5/1/2018 145,586,693 428,196,155 34.00% $0.0003 $43,676
4/30/2018 25,360,367 74,589,316 34.00% $0.0003 $7,608
4/27/2018 68,975,488 202,869,083 34.00% $0.0004 $27,590
4/26/2018 30,661,676 90,181,401 34.00% $0.0004 $12,265
4/25/2018 29,057,092 85,462,035 34.00% $0.0005 $14,529
Total 8,117,878,650 19,886,222,304 40.82% $0.0008 $6,178,916
*Total includes data back to 6-1-17. Chart truncated for viewing.

8861 Villa La Jolla Drive, #12109, La Jolla, CA 92039 | 800-327-MAXD

The below data is used to calculate if a fair market is being made in the shares of MAXD. Friction Factor
determines if there is normal or abnormal behavior in the price action of the stock when compared to the buying
vs. selling trading statistics.

Date Change BuyVol SellVol NetVol

6/8/2018 $0.0000 17,239,100 90,335,834 -73,096,734
6/7/2018 -$0.0001 34,585,376 130,685,709 -96,100,333
6/6/2018 $0.0001 718,621,354 520,049,090 198,572,264
6/5/2018 $0.0000 19,290,250 77,123,600 -57,833,350
6/4/2018 $0.0000 9,789,292 97,595,041 -87,805,749
6/1/2018 $0.0001 346,326,535 15,704,771 330,621,764
5/31/2018 $0.0000 6,762,532 105,714,403 -98,951,871
5/30/2018 $0.0000 496,000 304,034,660 -303,538,660
5/29/2018 -$0.0001 21,441,309 33,442,129 -12,000,820
5/25/2018 $0.0000 6,960,433 26,214,344 -19,253,911
5/24/2018 $0.0000 16,320,000 14,030,000 2,290,000
5/23/2018 $0.0000 52,786,898 60,195,110 -7,408,212
5/22/2018 $0.0000 6,153,265 850,666 5,302,599
5/21/2018 -$0.0002 6,545,966 13,145,712 -6,599,746
5/17/2018 $0.0001 191,564,349 54,965,143 136,599,206
5/16/2018 $0.0000 32,444,345 49,989,882 -17,545,537
5/15/2018 $0.0000 18,047,797 22,485,000 -4,437,203
5/14/2018 $0.0000 61,868,765 98,790,669 -36,921,904
5/11/2018 $0.0000 9,802,358 35,439,995 -25,637,637
5/10/2018 $0.0000 7,024,956 5,268,682 1,756,274
5/9/2018 -$0.0001 91,600,582 92,722,293 -1,121,711
5/8/2018 $0.0001 141,953,079 20,916,000 121,037,079
5/7/2018 $0.0000 15,236,500 16,574,460 -1,337,960
5/4/2018 $0.0000 32,000,946 20,152,248 11,848,698
5/3/2018 $0.0000 19,550,266 4,000,698 15,549,568
5/2/2018 $0.0000 23,776,487 30,227,500 -6,451,013
5/1/2018 $0.0000 92,767,740 279,428,348 -186,660,608
4/30/2018 $0.0000 19,343,405 55,245,911 -35,902,506
4/27/2018 $0.0000 39,658,700 125,210,383 -85,551,683
4/26/2018 -$0.0001 20,298,214 69,883,185 -49,584,971
4/25/2018 $0.0000 10,472,153 74,989,882 -64,517,729
4/24/2018 $0.0000 27,222,242 102,120,578 -74,898,336
4/23/2018 $0.0000 189,184,851 309,886,738 -120,701,887
4/20/2018 $0.0001 532,198,608 308,760,532 223,438,076
4/19/2018 -$0.0001 55,461,550 187,511,107 -132,049,557

8861 Villa La Jolla Drive, #12109, La Jolla, CA 92039 | 800-327-MAXD

 4

8861 Villa La Jolla Drive, #12109, La Jolla, CA 92039 | 800-327-MAXD

ANALYSIS and ACTION

We have analyzed the last year of daily short volume data and correlated it to recent market making
activity in MAXD. In 27 of the past 31 trading days, 87% of the time, the combined selling and short
selling in MAXD has far exceeded the amount of buying (See NetNet column above). Market makers,
by definition, are required to PROVIDE LIQUIDITY not extract or remove liquidity. The math
provided above demonstrates that instead of matching orders, market makers, including your own
firm, are heavily shorting MAXD stock BOTH on the offer and on the bid, which by definition means
you and they have a “speculative short selling strategy” running on MAXD. You and they are carrying
net short positions overnight and continuing to claim the market maker’s exemption, which is in
VIOLATION of the Fair Market-Making Requirements of Regulation SHO. We are able to
mathematically prove this because there is not enough BuyVol (buy volume) to match the amount of
selling and short selling. The chart below identifies the top 5 market makers, in MAXD for May 2018
(highlighted in yellow) including your firm, accounted for 2,257,870,595 shares of trading, or
88.22% of total trading volume in May.

Highlighting your firms abusive activities in-concert with the other Market Makers for just the one
month of May, allows regulators, the SEC, FINRA, the U.S. Attorney and the media to easily identify
the manipulative trading activity and counterfeiting of MAXD shares engaged in by your traders in-
concert with the other major trading firms for the past year and well beyond. When overlaid for the
entire year (back to June 1, 2017) the math is shocking. 8,117,878,650 total shares have been shorted
representing in excess of 40% of MAXD’s total trading volume! Your firm and Principles, in-concert
with the other market makers have knowingly participated in manipulative trading practices and
counterfeiting of MAXD shares.

8861 Villa La Jolla Drive, #12109, La Jolla, CA 92039 | 800-327-MAXD

We hereby demand that your counterfeit shares in MAXD are all covered with legitimate buy-ins in
the next three trading sessions or MAXD will lobby its numerous contacts in Washington for “blue
sheet requests” of all market makers identified in the FINRA Monthly Share Volume report
highlighted above. Be advised that Max Sound intends to pursue your firm and all such violators of
Regulation SHO and the Fair Market-Making Requirement aggressively and to the fullest extent of the
law unless remedied as stated herein.

Sincerely,

Greg Halpern | Chairman & CFO

Max Sound Corporation
cc: Paul McMenamin Attorney at Law

8861 Villa La Jolla Drive, #12109, La Jolla, CA 92039 | 800-327-MAXD