DISTRICT COURT, CITY AND COUNTY OF

DENVER, STATE OF COLORADO

1437 Bannock St.
Denver, CO 80202

REGARDING THE MATTER OF:

CHRISTOPHER C. BELLAND, APPLICANT,

AND

STAN LEE MEDIA, INC., a Colorado corporation ▲ COURT USE ONLY ▲

Feldmann, Nagel & Associates, LLC Case Number: 07CV7536
David J. Nagel, #30697
Donald L. Salem, #31574 Courtroom: 9
1120 S. Lincoln Avenue, Suite A
P.O. Box 775628
Steamboat Springs, CO 80477
Phone: 970-879-8616
Fax: 970-879-8513
Email: dnagel@colo-lawyers.com
dsalem@colo-lawyers.com

INTERIM STATUS REPORT

Applicant Christopher C. Belland (“Belland”) respectfully requests this Court to grant

leave and accept this Interim Status Report in this matter.

RELEVANT PROCEDURAL BACKGROUND

On August 8, 2008 the Court entered an Order to Show Cause directing the parties to file
a detailed status report not later than twenty (20) days from the date of the Order
(namely, August 28, 2008) detailing and identifying any remaining justiciable issues and
that a failure to comply would result in dismissal of the action. On August 20, 2008,
Feldmann, Nagel & Associates, LLC (“FNA”) was retained to represent Applicant in this
litigation. FNA first learned of the Order to Show Cause on or about August 25, 2008
pursuant to efforts to obtain/coordinate the voluminous records as received at our office
on or about August 22, 2008. On August 26, 2008, FNA filed a Motion for Substitution
of Counsel and Related Relief so they could make an appearance for Applicant and take
over responsibility for his representation in this case. Simultaneously, FNA filed a
Motion for Extension of Time to the Honorable Court’s Order of August 8, 2008 (i.e. the
Order to Show Cause – “OSC”) to file the Status Report because the new attorneys, FNA,
are not sufficiently familiar with the matter to prepare a detailed Status Report in a timely

1
manner as required by the Order due to the extreme volume and breadth of associated
documents, motions, filings, and Court Orders associated with this case.

At this time, neither the Motion for an Extension of Time nor the Motion for Substitution
of Counsel has been ruled upon by the Court. If the Court grants these motions, Belland,
through his new attorneys FNA, will file a complete Status Report on or before
September 23, 2008, being the requested extension date within the afore-referenced
Motion for An Extension of Time.

JUSTICIABLE ISSUES

Although FNA cannot set forth an exhaustive list of justiciable issues at this time, there
are some matters of which FNA is currently aware that should enable the Court to grant
the Motion for An Extension of Time and thereby allow FNA to supplement this Interim
Status Report.

Issues Defined By the Pleadings

This case was commenced by Applicant asking the Court to order an annual meeting of
the shareholders of Stan Lee Media Inc. (“SLMI”) which the Court ordered. However,
prior to the ordered meeting, Stan Lee, claiming to be a shareholder in SLMI, requested
and obtained leave to intervene filing an Answer. Applicant and Intervenor stipulated the
matter of the annual meeting should be referred to a Special Master for the limited
purpose of “hold[ing] an annual meeting of SLMI . . . and tabulate the votes.” (See
Report of Special Master, Page 1, attached hereto as Exhibit A). The Special Master did
so and held an annual meeting on December 20, 2007 at which three directors were
validly elected (Nesfield, et al.) and a motion for reinstatement of the corporation failed.
The Report of the Special Master was prepared and sent to the Court on February 7, 2008
and adopted by the Court on May 12, 2008.

Dissatisfied with the results of the election at the annual meeting, Lee filed a First
Amended Answer, Cross-Claims and Counterclaims raising numerous new matters for
the Court to resolve. These new allegations raised by Lee include, but are not limited to:
(1) that prior acts to reinstitute SLMI and appoint a registered agent were done without
authority; (2) that Belland is not a shareholder in SLMI which he raised as both a denial
of an allegation in the Application and as an Affirmative Defense; (3) that prior
amendments to the Articles establishing classes of stock had been made; and (4) that
recently elected directors (Nesfield, et al.) were not properly elected. These matters,
admittedly justiciable by Lee, remain unresolved as evidenced by the recent OSC which
included an order to bar the seating of the three directors on December 20, 2007, which
thereby nullified all corporate actions taken during that time period. As such, Belland
requests that his counsel have additional time to apprise this Court of additional facts and
issues that must be addressed in the above-referenced case matter prior to any dismissal
of same. No motion for summary judgment has been filed and no trial on these issues has
been held.

2
Conflicting Orders Re: Status of Directors of SLMI

On May 12, 2008, the Honorable Harold L. Stern, III, Judge, District Court for the City
and County of Denver, entered an Order adopting the Report of the Special Master. The
Special Master reported the proper election of the Nesfield directors at an annual meeting
supervised by the Special Master. Both Intervenor and Applicant had stipulated to the
appointment of the Special Master to conduct an annual meeting for the purpose of
election of directors. The Order adopting the Master’s report constitutes judicial
approval of the election of the Nesfield Board.

On June 27, 2008, the Honorable Michael Anthony Martinez, Judge, District Court for
the City and County of Denver, entered an Order granting a motion of Intervenor
“disallowing the seating of [Nesfield, et al.] as directors of SLMI and also preventing
their reelection.” Judge Martinez did not state the basis for his Order and there was no
hearing on the motion.

These Orders of Judge Stern and Judge Martinez are in direct conflict. This conflict
should be resolved so that a proper record of these proceedings will exist.

In addition, the unseating of the duly elected Nesfield Board has created confusion and
uncertainty as to who may make decisions and conduct the business of the corporation. It
is presumed that the shareholders in the corporation, including Applicant, believe that the
corporation has extremely valuable intellectual property rights that must be preserved.
Applicant has taken extraordinary measures to preserve these assets and has been resisted
at every juncture by Intervenor who appears to be claiming a personal interest in the same
intellectual property rights. As the Special Master noted in her Report at page 64
(attached hereto as Exhibit B),

“Mr. Belland is attempting to recover what he believes to be assets of

SLMI through various lawsuits against Mr. Lee and his affiliates. If Mr.
Belland’s slate is not elected, the SLMI shareholders likely will have
nothing because no one else appears to be pursuing the lawsuits.”

The confusion and uncertainty arising from these conflicting Orders, engineered by
Intervenor, endangers the corporation’s ability to preserve these assets and furthers
Intervenor’s claims to the rights adversely to the corporation’s.

If the Order of Judge Martinez is deemed to control, then the issue of who the Board is
will need to be addressed by the Court. It is likely the Court will be asked to either affirm
a prior Board or order a new annual meeting to elect yet another Board. The matter of
the selection of a Board for SLMI is a justiciable matter for this Court that has not yet
been resolved.

3
Order Dated August 8, 2008 Revoking SLMI’s Articles and Changing Status to
Dissolved.

This Order, which could be the death knell for SLMI, was entered on Intervenor’s Motion
to Change Filing Status. No opposition was filed by Applicant’s then-counsel to this
motion so the Court deemed the motion confessed and granted it. Applicant’s new
counsel is investigating why no opposition was filed and, assuming there are proper
grounds, intends to move for an order setting aside the Order. This likely motion to set
aside this Order is a justiciable matter.

NO PREJUDICE

Intervenor will not be prejudiced by the Court’s withdrawal of its Order to Show Cause.
Withdrawal of the Order will allow this case to proceed to a proper conclusion based on
the merits.

Applicant requests this Honorable Court accept this Interim Status Report in
consideration of its actions and respectfully requests that the corresponding Motion for
Extension be granted in order for Applicant to submit a supplemental filing herewith.

DATED: August 29, 2008

Respectfully submitted,

In accordance with C.R.C.P. 121 §1-26(9), the

signed original of this document is on file at
Feldmann, Nagel & Associates, LLC and will
be made available for inspection by other
parties or the Court upon request.

FELDMANN, NAGEL & ASSOCIATES, LLC

By: s/ David J. Nagel

David J. Nagel, #30697
Donald L. Salem, #31574
1120 S. Lincoln Avenue, Ste. A
P.O. Box 775628
Steamboat Springs, CO 80477
Attorneys for Applicant

4
 CERTIFICATE OF SERVICE

The undersigned hereby certifies that on the 29th day of August, 2008, a true and
correct copy of the foregoing INTERIM STATUS REPORT was served via LexisNexis,
and/or email addressed to the following:

Mark W. Williams, Esq.

Marcy M. Heronimus, Esq.
Sherman & Howard, L.L.C.
633 17th Street, Suite 3000
Denver, CO 80202
mwilliams@shermanhoward.com
mheronimus@shermanhoward.com

Sean P. Sheppard, Esq.

The Andersen Firm, PC
1301 Plantation Island Drive South, Suite 302B
St. Augustine, FL 32080
sean@sheppardpa.net

David H. Stacy, Esq.

Robert C. Montgomery, Esq.
Ducker, Montgomery, Aronstein & Bess, P.C.
1560 Broadway, Suite 1400
Denver, CO 80202

Christopher C. Belland
201 Front Street
Key West, Florida 33040
cbelland@historictours.com

s/Eva Yeager
Eva Yeager