<table>
<tbody><tr style="font-size:1px">
<td width="5%" valign="TOP">
<p>&nbsp;</p>
</td>
<td width="5%" valign="TOP">
<p>&nbsp;</p>
</td>
<td width="90%" valign="TOP">
<p>&nbsp;</p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="2">2)</font></p>
</td>
<td colspan="2" valign="TOP">
<p><font size="2"><u>Summary of
  Significant Accounting Policies (Continued)</u></font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="2">(p)</font></p>
</td>
<td valign="TOP">
<p><font size="2"><u>Recent
  Accounting Standards Affecting the Company (continued)</u></font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p align="JUSTIFY"><font size="2">In February
  2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial
  Assets and Financial Liabilities (“SFAS No. 159”). SFAS No. 159 permits
  entities to choose to measure, on an item-by-item basis, specified financial
  instruments and certain other items at fair value that are currently required
  to be measured at historical costs. SFAS No. 159 is effective for fiscal
  years beginning after November 15, 2007, the provisions for which are
  required to be applied prospectively.</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p align="JUSTIFY"><font size="2">In December
  2007, the Financial Accounting Standards Board (“FASB”) issued Statement of
  Financial Accounting Standards (“SFAS”) No.&nbsp;141 (revised 2007), Business
  Combinations, which replaces SFAS No 141. The statement retains the purchase
  method of accounting for acquisitions, but requires a number of changes,
  including changes in the way assets and liabilities are recognized in the
  purchase accounting. It also changes the recognition of assets acquired and
  liabilities assumed arising from contingencies, requires the capitalization
  of in-process research and development at fair value, and requires the
  expensing of acquisition-related costs as incurred. SFAS No.&nbsp;141R is
  effective for&nbsp;business combinations for which the acquisition date is on
  or after the beginning of the first annual reporting period beginning on or
  after December 15, 2008. Management currently believes that the adoption of
  this statement will not have a material impact on the Company’s financial
  statements.</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p align="JUSTIFY"><font size="2">In December
  2007, the FASB issued SFAS No.&nbsp;160, Noncontrolling Interests in
  Consolidated Financial Statements, an amendment of ARB 51, which changes the
  accounting and reporting for minority interests. Minority interests will be
  recharacterized as noncontrolling interests and will be reported as a
  component of equity separate from the parent’s equity, and purchases or sales
  of equity interests that do not result in a change in control will be
  accounted for as equity transactions. In addition, net income attributable to
  the noncontrolling interest will be included in consolidated net income on
  the face of the income statement and, upon a loss of control, the interest
  sold, as well as any interest retained, will be recorded at fair value with
  any gain or loss recognized in earnings. SFAS No.&nbsp;160 is effective for
  annual periods beginning after December 15, 2008. Management currently
  believes that the adoption of this statement will not have a material impact
  on the Company’s financial statements.</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
</tr>
<tr>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p><font size="1">&nbsp;</font></p>
</td>
<td valign="TOP">
<p align="JUSTIFY"><font size="2">In March
  2008, the FASB issued FASB Statement No. 161, Disclosures about Derivative
  Instruments and Hedging Activities. The new standard is intended to improve
  financial reporting about derivative instruments and hedging activities by
  requiring enhanced disclosures to enable investors to better understand their
  effects on an entity’s financial position, financial performance, and cash
  flows. It is effective for financial statements issued for fiscal years and
  interim periods beginning after November 15, 2008, with early application
  encouraged. Management currently believes that the adoption of this statement
  will not have a material impact on the Company’s financial statements.</font></p>
</td>
</tr>
</tbody></table>
<table>
<tbody><tr>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
<td>
<p> </p>
</td>
</tr>
<tr>
<td>
<p><font>2)</font></p>
</td>
<td>
<p><font><u>Summary of
  Significant Accounting Policies (Continued)</u></font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>(p)</font></p>
</td>
<td>
<p><font><u>Recent
  Accounting Standards Affecting the Company (continued)</u></font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>In February
  2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial
  Assets and Financial Liabilities (“SFAS No. 159”). SFAS No. 159 permits
  entities to choose to measure, on an item-by-item basis, specified financial
  instruments and certain other items at fair value that are currently required
  to be measured at historical costs. SFAS No. 159 is effective for fiscal
  years beginning after November 15, 2007, the provisions for which are
  required to be applied prospectively.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>In December
  2007, the Financial Accounting Standards Board (“FASB”) issued Statement of
  Financial Accounting Standards (“SFAS”) No. 141 (revised 2007), Business
  Combinations, which replaces SFAS No 141. The statement retains the purchase
  method of accounting for acquisitions, but requires a number of changes,
  including changes in the way assets and liabilities are recognized in the
  purchase accounting. It also changes the recognition of assets acquired and
  liabilities assumed arising from contingencies, requires the capitalization
  of in-process research and development at fair value, and requires the
  expensing of acquisition-related costs as incurred. SFAS No. 141R is
  effective for business combinations for which the acquisition date is on
  or after the beginning of the first annual reporting period beginning on or
  after December 15, 2008. Management currently believes that the adoption of
  this statement will not have a material impact on the Company’s financial
  statements.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>In December
  2007, the FASB issued SFAS No. 160, Noncontrolling Interests in
  Consolidated Financial Statements, an amendment of ARB 51, which changes the
  accounting and reporting for minority interests. Minority interests will be
  recharacterized as noncontrolling interests and will be reported as a
  component of equity separate from the parent’s equity, and purchases or sales
  of equity interests that do not result in a change in control will be
  accounted for as equity transactions. In addition, net income attributable to
  the noncontrolling interest will be included in consolidated net income on
  the face of the income statement and, upon a loss of control, the interest
  sold, as well as any interest retained, will be recorded at fair value with
  any gain or loss recognized in earnings. SFAS No. 160 is effective for
  annual periods beginning after December 15, 2008. Management currently
  believes that the adoption of this statement will not have a material impact
  on the Company’s financial statements.</font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
</tr>
<tr>
<td>
<p><font> </font></p>
</td>
<td>
<p><font> </font></p>
</td>
<td>
<p><font>In March
  2008, the FASB issued FASB Statement No. 161, Disclosures about Derivative
  Instruments and Hedging Activities. The new standard is intended to improve
  financial reporting about derivative instruments and hedging activities by
  requiring enhanced disclosures to enable investors to better understand their
  effects on an entity’s financial position, financial performance, and cash
  flows. It is effective for financial statements issued for fiscal years and
  interim periods beginning after November 15, 2008, with early application
  encouraged. Management currently believes that the adoption of this statement
  will not have a material impact on the Company’s financial statements.</font></p>
</td>
</tr>
</tbody></table>