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<p style="margin: 0pt">In February 2013, the Financial
Accounting Standards Board (“FASB”) issued an accounting standards update on the reporting of amounts reclassified
out of accumulated other comprehensive income, to improve the transparency of reporting. These reclassifications present the effects
on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income – but only
if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period.
This standard update is effective for reporting periods beginning after December 15, 2012. We are currently evaluating the impact
of adopting this accounting standards update on our consolidated financial statements.</p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>9. Commitments and Contingencies</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company leases certain office,
manufacturing and warehouse facilities and various equipment under non-cancelable operating leases. Total rent expense was $760,856
and $713,925 in 2012 and 2011. Minimum annual rental commitments under non-cancelable leases with remaining terms of one year or
more as of December 31, 2012:  2013 - $791,278; 2014 - $482,591; 2015 - $384,427; 2016 - $44,234; and 2017 - $3,917.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">There are no pending material
legal proceedings to which the Company is a party or, to the actual knowledge of the Company, contemplated by any governmental
authority.</p>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 80%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="width: 33%; border-bottom: black 2px solid; text-align: center"><p style="margin-top: 0; text-align: center; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif"><b>Balance
at</b></font></p>
<p style="margin-top: 0; text-align: center; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif"><b>December
31, 2011</b></font></p></td>
<td style="width: 34%; border-bottom: black 2px solid; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Payments</b></font></td>
<td style="width: 33%; border-bottom: black 2px solid; text-align: center"><p style="margin-top: 0; text-align: center; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif"><b>Balance
at</b></font></p>
<p style="margin-top: 0; text-align: center; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif"><b>December
31, 2012</b></font></p></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="border-bottom: black 4px double; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">$  239</font></td>
<td style="border-bottom: black 4px double"><p style="margin-top: 0; text-align: center; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif">$  (115)</font></p></td>
<td style="border-bottom: black 4px double; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">$  124</font></td></tr>
</table>
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<p style="margin: 0pt">In December 2008, the Company
sold property it owned in Bridgeport, Connecticut to B&E Juices, Inc. for $2.5 million.  The property consists of approximately four acres of land and 48,000 sq. feet of warehouse
space.  The property was the site of the original Acme United scissor factory which opened in 1887 and was closed
in 1996.</p>
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2
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<p style="margin: 0; font: 10pt Times New Roman, Times, Serif"><b>6.  Pension and Profit Sharing</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">United States employees, hired
prior to July 1, 1993, are covered by a funded, defined benefit pension plan.  The benefits of this pension plan are
based on years of service and the average compensation of the highest three consecutive years during the last ten years of employment.  In
December 1995, the Company's Board of Directors approved an amendment to the United States pension plan that terminated all future
benefit accruals as of February 1, 1996, without terminating the pension plan.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company’s funding
policy with respect to its qualified plan is to contribute at least the minimum amount required by applicable laws and regulations.
In 2012, the Company contributed $221,000 to the plan and expects to contribute approximately $230,000 during 2013.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The plan asset weighted average
allocation at December 31, 2012 and December 31, 2011, by asset category, were as follows:</p>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
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Category</font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Equity Securities</font></td>
<td style="width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">70%</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">68%</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Fixed Income Securities</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">29%</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">29%</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Other
Securities / Investments</font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1%</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3%</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">100%</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">100%</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company’s investment
policy for the pension plan is to minimize risk by balancing investments between equity securities and fixed income securities,
utilizing a weighted average approach of 65% equity securities, 30% fixed income securities, and 5% cash investments.  Plan
funds are invested in long-term obligations with a history of moderate to low risk.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">As of December 31, 2012 and
2011, equity securities in the pension plan included 10,000 shares of the Company's Common Stock, having a market value of $110,400
and $95,000, respectively.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The pension plan asset information
included below is presented at fair value. ASC 820 establishes a framework for measuring fair value and requires disclosures about
assets and liabilities measured at fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to
measure fair value into three levels as follows:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: top">
<td style="text-align: right; width: 36pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">· 
  </font></td>
<td style="font-size: 10pt; text-align: justify; text-indent: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Level
1 – Inputs to the valuation methodology based on unadjusted quoted market prices in active markets that are accessible
at the measurement date.</font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: top">
<td style="text-align: right; width: 36pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">·  
 </font></td>
<td style="font-size: 10pt; text-align: justify; text-indent: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Level
2 – Inputs to the valuation methodology that include quoted market prices that are not considered to be active or financial
instruments for which all significant inputs are observable, either directly or indirectly.</font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: top">
<td style="text-align: right; width: 36pt; font-size: 10pt"><font style="font: 10pt Times New Roman, Times, Serif">·  
 </font></td>
<td style="font-size: 10pt; text-align: justify; text-indent: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Level
3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.</font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The following tables present
the pension plan assets by level within the fair value hierarchy as of December 31, 2012 and 2011:</p>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2012</font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Level
1</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Level
2</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Level
3</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 42%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Money Market
Fund</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">19,609</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">19,609</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Acme United Common Stock</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">110,400</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">110,400</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Equity Common and Collected
Funds</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">811,113</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">811,113</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif">Fixed Income
Common and Collected Funds</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">384,280</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">384,280</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">130,009</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,195,393</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,325,402</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"> </td></tr>
</table>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif">2011</font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Level
1</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Level
2</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Level
3</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 42%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Money Market
Fund</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">32,819</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">32,819</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Acme United Common Stock</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">95,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">95,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Equity Common and Collected
Funds</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">757,373</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">757,373</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif">Fixed Income
Common and Collected Funds</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">361,544</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">361,544</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">127,819</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,118,917</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,246,736</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: left; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Other disclosures related to the
pension plan follow:</font></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px; font-size: 10pt"> </td>
<td style="text-align: right; padding-bottom: 2px"> </td>
<td colspan="2" style="text-align: right; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: right; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Assumptions used to determine
benefit obligation:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">  Discount
rate</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2.99%</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3.99%</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Changes in benefit obligation:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Benefit obligation at
beginning of year</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,259,522</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,479,645</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Interest cost</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(85,108</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(99,122</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Service cost</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(36,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(19,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Actuarial (loss) gain</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(137,609</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">22,235</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Benefits
and plan expenses paid</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">292,546</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">316,010</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Benefit
obligation at end of year</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,225,693</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,259,522</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Changes in plan assets:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Fair value of plan assets
at beginning of year</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,246,736</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,315,428</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Actual return on plan
assets</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">149,717</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7,665</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Employer contribution</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">221,495</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">239,653</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Benefits
and plan expenses paid</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(292,546</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(316,010</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Fair
value of plan assets at end of year</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,325,402</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,246,736</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Funded
status</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(900,291</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(1,012,786</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"> </td>
<td style="border-bottom: black 2px solid"> </td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font-family: Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font-family: Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font-family: Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font-family: Times New Roman, Times, Serif">Assumptions used to
determine net periodic benefit cost:</font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font-family: Times New Roman, Times, Serif">  Discount
rate</font></td>
<td style="text-align: right; width: 1%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">3.99%</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font-family: Times New Roman, Times, Serif">4.42%</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font-family: Times New Roman, Times, Serif">  Expected
return on plan assets</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font-family: Times New Roman, Times, Serif">8.25%</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font-family: Times New Roman, Times, Serif">8.25%</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font-family: Times New Roman, Times, Serif">Components of net
benefit expense:</font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font-family: Times New Roman, Times, Serif">Interest cost</font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">85,109</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">99,122</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font-family: Times New Roman, Times, Serif">Service cost</font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">36,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">19,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font-family: Times New Roman, Times, Serif">Expected return on
plan assets</font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">(94,765</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">(95,470</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font-family: Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font-family: Times New Roman, Times, Serif">Amortization of prior
service costs</font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">9,154</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Times New Roman, Times, Serif">9,154</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font-family: Times New Roman, Times, Serif">Amortization
of actuarial loss</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font-family: Times New Roman, Times, Serif">135,759</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font-family: Times New Roman, Times, Serif">124,536</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font-family: Times New Roman, Times, Serif">Net
periodic benefit cost</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font-family: Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font-family: Times New Roman, Times, Serif">171,257</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font-family: Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font-family: Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font-family: Times New Roman, Times, Serif">156,342</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font-family: Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
<p style="text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company employs a building block approach
in determining the long-term rate of return for plan assets. Historical markets are studied and long-term historical relationships
between equity securities and fixed income securities are preserved consistent with the widely-accepted capital market principle
that assets with higher volatility generate higher returns over the long run.   Our expected 8.25% long-term rate of return
on plan assets is determined based on long-term historical performance of plan assets, current asset allocation and projected long-term
rates of return.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The following table discloses
the change recorded in other comprehensive income related to benefit costs:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Balance at
beginning of the year</font></td>
<td style="width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,762,345</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,830,465</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Change in net loss</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">82,657</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">65,570</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Amortization of actuarial
loss</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(135,759</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(124,536</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Amortization
of prior service cost</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(9,154</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(9,154</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">     Change
recognized in other comprehensive income</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(62,256</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(68,120</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 4px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total
recognized in other comprehensive income</font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,700,089</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,762,345</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Amounts recognized in Accumulated
Other Comprehensive Income:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net actuarial
loss</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,669,914</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,723,016</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"> </td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Prior
service cost</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">30,175</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">39,329</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"> </td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,700,089</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,762,345</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Accrued benefits costs are included
in other accrued liabilities (non-current).</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">In 2013, net periodic benefit
cost will include approximately $154,000 of net actuarial loss and $9,000 of prior service cost.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The following benefits are
expected to be paid:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 85%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2013</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">254,000</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2014</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">247,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2015</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">231,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2016</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">214,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2017</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">194,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Years 2018 - 2022</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">742,000</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company also has a The Company
also has a qualified, profit sharing plan covering substantially all of its United States employees. Annual Company contributions
to this profit sharing plan are determined by the Company’s Compensation Committee.  For the years ended December
31, 2012 and 2011, the Company contributed 50% of employee’s contributions, up to the first 6% contributed by each employee.  Total
contribution expense under this profit sharing plan was $99,105 in 2012 and $95,088 in 2011.</p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Assumptions used to determine
net periodic benefit cost:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">  Discount
rate</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3.99%</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4.42%</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">  Expected
return on plan assets</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8.25%</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8.25%</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Components of net benefit
expense:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Interest cost</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">85,109</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">99,122</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Service cost</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">36,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">19,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Expected return on plan
assets</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(94,765</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(95,470</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Amortization of prior
service costs</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">9,154</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">9,154</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Amortization
of actuarial loss</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">135,759</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">124,536</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net
periodic benefit cost</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">171,257</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">156,342</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
85108
99122
36000
19000
9000
94765
95470
9154
9154
171257
156342
24319829
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>10. Segment Information</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company reports financial
information based on the organizational structure used by management for making operating and investment decisions and for assessing
performance. The Company’s reportable business segments include (1) United States; (2) Canada and (3) Europe.  The
financial results for the Company’s Asian operations have been aggregated with the results of its United States operations
to form one reportable segment called the “United States segment”.  Sales in the United States segment include
both domestic sales as well as direct import sales.  Each reportable segment derives its revenue from the sales of cutting
devices, measuring instruments and first aid products for school, office, home, hardware and industrial use.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Domestic sales orders are filled
from the Company’s distribution center in North Carolina. The Company is responsible for the costs of shipping, insurance,
customs clearance, duties, storage and distribution related to such products.  Orders filled from the Company’s
inventory are generally for less than container-sized lots.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Direct Import Sales are products
sold by the Company’s Asian subsidiary, directly to major U.S. retailers who take ownership of the products in Asia. These
sales are completed by delivering product to the customers’ common carriers at the shipping points in Asia. Direct import
sales are made in larger quantities than domestic sales, typically full containers. Direct Import Sales represented approximately
19% and 15% of the Company’s total net sales in 2012 and 2011, respectively.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Chief Operating Decision
Maker evaluates the performance of each operating segment based on segment revenues and operating income. Segment revenues are
defined as total revenues, including both external customer revenue and inter-segment revenue. Segment operating earnings are defined
as segment revenues, less cost of goods sold and operating expenses. Identifiable assets by segment are those assets used in the
respective reportable segment’s operations. Inter-segment amounts are eliminated to arrive at consolidated financial results.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 9pt Times New Roman, Times, Serif"><b>Financial data by segment:</b></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b><u>2012</u></b></font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">(000's
omitted)</font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>United
States</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Canada</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Europe</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Consolidated</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 42%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Sales to
unaffiliated customers</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">67,510</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,808</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,052</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">84,370</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Operating income</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,394</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">775</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">192</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5,361</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Assets</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">56,115</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,107</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5,606</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">67,828</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Additions to property,
plant and equipment</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">656</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">14</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">11</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">681</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Depreciation and amortization</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">980</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">36</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">73</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,089</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="padding-bottom: 2px; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b><u>2011</u></b></font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Sales to unaffiliated
customers</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">56,663</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,514</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,125</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">73,302</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Operating income (loss)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,485</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">924</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(124</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,285</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Assets</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">43,174</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,033</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,015</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">55,222</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Additions to property,
plant and equipment</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">912</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">26</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">941</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Depreciation and amortization</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">857</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">36</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">85</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">978</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The following is a reconciliation
of segment operating income to consolidated income before taxes:</p>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total operating
income</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5,361</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,285</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Interest expense, net</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">264</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">255</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Other
expense, net</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">99</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Consolidated
income before taxes</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,998</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,026</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 4px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net
Income</font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,549</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,811</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The table below presents
revenue by geographic area. Revenues are attributed to countries based on location of the customer.</p>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Revenues</font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; padding-left: 18pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">United
States</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">66,694</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">55,856</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 18pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">International:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt; padding-left: 27pt"><font style="font: 9pt Times New Roman, Times, Serif">Canada</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,808</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,514</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 27pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Europe</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,052</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,125</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; padding-left: 27pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Other</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">816</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">807</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; padding-left: 18pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total
International</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">17,676</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">17,446</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 4px; padding-left: 18pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total
Revenues</font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">84,370</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">73,302</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b><u>2012</u></b></font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">(000's
omitted)</font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>United
States</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Canada</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Europe</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Consolidated</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 42%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Sales to
unaffiliated customers</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">67,510</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,808</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,052</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">84,370</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Operating income</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,394</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">775</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">192</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5,361</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Assets</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">56,115</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,107</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5,606</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">67,828</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Additions to property,
plant and equipment</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">656</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">14</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">11</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">681</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Depreciation and amortization</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">980</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">36</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">73</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,089</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="padding-bottom: 2px; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b><u>2011</u></b></font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Sales to unaffiliated
customers</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">56,663</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,514</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,125</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">73,302</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Operating income (loss)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,485</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">924</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(124</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,285</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Assets</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">43,174</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,033</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,015</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">55,222</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Additions to property,
plant and equipment</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">912</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">26</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">941</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Depreciation and amortization</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">857</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">36</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">85</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">978</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
.19
.15
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>11.  Stock Option
Plans</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company has two stock option
plans: (1) the 2012 Employee Stock Option Plan, (the “Employee Plan”) and (2) the 2005 Non-Salaried Director Stock
Option Plan (the “Director Plan”).</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Employee Plan, which became
effective April 23, 2012, provides for the issuance of incentive and nonqualified stock options at an exercise price equal to the
fair market value of the Common Stock on the date the option is granted.  The terms of the options granted are subject
to the provisions of the Employee Plan. Options granted under the Employee Plan vest 25% one day after the first anniversary of
the grant date and 25% one day after each of the next three anniversaries. As of December 31, 2012, the number of shares available
for grant under the Employee Plan was 40,000.  Under the terms of the Employee Plan, no option may be granted under that
plan after the tenth anniversary of the adoption of the plan.  Options outstanding under the Company’s 2002 Employee
Stock Option Plan have the same vesting schedule as the 2012 Employee plan.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Director Plan, as amended,
provides for the issuance of stock options for up to 140,000 shares of the Company's common stock to non-salaried directors.  Under
the Director Plan, Directors elected on April 25, 2005 and at subsequent Annual Meetings who have not received any prior grant
under this or previous plans receive an initial grant of an option to purchase 5,000 shares of Common Stock (the “Initial
Option”). Each year, each elected Director not receiving an Initial Option will receive a 4,500 share option (the “Annual
Option”).  The Initial Option vests 25% on the date of grant and 25% on the anniversary of the grant date in each
of the following 3 years. Each Annual Option becomes fully exercisable one day after the date of grant. The exercise price of all
options granted equals the fair market value of the Common Stock on the date the option is granted and expires ten (10) years from
the date of grant. As of December 31, 2012, the number of shares available for grant under the Director Plan was 21,500.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">A summary of changes in options
issued under the Company’s stock option plans follows:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: right; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: right; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Options
outstanding  at the beginning of the year</font></p></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">943,000</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">838,950</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Options granted</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">215,438</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">185,500</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Options forfeited</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(6,250</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Options
exercised</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(33,500</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(79,450</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Options
outstanding at the end of the year</font></p></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,118,688</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">943,000</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Options
exercisable at the end of the year</font></p></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">672,125</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">554,500</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Common
stock available for future grants at the end of the year</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">61,500</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">107,438</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td colspan="4" style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Weighted
average exercise price per share:</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> Granted</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10.47</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">9.67</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> Forfeited</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6.98</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10.10</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> Exercised</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5.13</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3.31</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> Outstanding</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10.96</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10.84</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> Exercisable</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">11.65</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">11.69</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">A summary of options outstanding
at December 31, 2012 is as follows:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="10" style="border-bottom: black 2px solid; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"> 
<b>Options Outstanding</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="6" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Options
Exercisable</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Range
of Exercise Prices</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Number
Outstanding</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Weighted-Average
Remaining Contractual Life (Years)</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Weighted-Average
Exercise Price</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Number
Exercisable</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Weighted-Average
Exercise Price</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$1.70 to $5.11</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">30,500</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> 
       < 1</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3.84</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">30,500</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3.84</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="width: 9%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$5.12 to $8.51</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 9%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">151,750</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 9%; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif">6</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 9%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7.70</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 9%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">118,750</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 9%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7.65</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$8.52 to $10.21</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">427,688</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 9pt Times New Roman, Times, Serif">8</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">9.85</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">146,125</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">9.81</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$10.22 to $13.62</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">270,500</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 9pt Times New Roman, Times, Serif">8</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">11.70</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">139,500</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">12.69</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">$13.63 to $17.02</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">238,250</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif">3</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">15.16</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">237,250</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">15.16</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,118,688</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">672,125</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The weighted average remaining
contractual life of all outstanding stock options is 7 years.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>Stock Based Compensation</b></p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Stock-based compensation cost
is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period,
which is generally the vesting period. The Company uses the Black-Scholes option pricing model to determine the fair value of employee
and non-employee director stock options. The determination of the fair value of stock-based payment awards on the date of grant,
using an option-pricing model, is affected by the Company’s stock price as well as assumptions regarding a number of complex
and subjective variables. These assumptions include estimating the length of time employees will retain their vested stock options
before exercising them (“expected term”), the estimated volatility of the Company’s Common Stock price over the
expected term (“volatility”) and the number of options that will not fully vest in accordance with applicable vesting
requirements (“forfeitures”).</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company estimates the expected
term of options granted by evaluating various factors, including the vesting period, historical employee information, as well as
current and historical stock prices and market conditions. The Company estimates the volatility of its common stock by calculating
historical volatility based on the closing stock price on the last day of each of the 60 months leading up to the month the option
was granted. The risk-free interest rate that the Company uses in the option valuation model is the interest rate on U.S. Treasury
zero-coupon bond issues with remaining terms similar to the expected term of the options granted. Historical information was the
basis for calculating the dividend yield. The Company is required to estimate forfeitures at the time of grant and to revise those
estimates in subsequent periods if actual forfeitures differ from those estimates. The Company used a mix of historical data and
future assumptions to estimate pre-vesting option forfeitures and to record stock-based compensation expense only for those awards
that are expected to vest. All stock-based payment awards are amortized over the requisite service periods of the awards, which
are generally the vesting periods.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The assumptions used to value
option grants for the twelve months ended December 31, 2012 and December 31, 2011 were as follows:</p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="6" style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: right; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: right; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Expected
life in years</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Interest rate</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.60 – .92%</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.91 – 2.10%</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Volatility</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">.327-.333</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">.327-.330</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Dividend yield</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2.50% - 2.70%</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2.37% - 2.70%</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Total stock-based compensation
recognized in the Company’s consolidated statements of operations for the years ended December 31, 2012 and 2011 was $427,877
and $428,439, respectively.  At December 31, 2012, there was approximately $745,698 of unrecognized compensation cost,
adjusted for estimated forfeitures, related to non-vested stock-based payments granted to the Company’s employees. As of
December 31, 2012, the remaining unamortized expense is expected to be recognized over a weighted average period of 3 years.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The weighted average fair
value at the date of grant for options granted during 2012 and 2011 was $2.36 and $2.26 per option, respectively.  The
aggregate intrinsic value of outstanding options was $1,290,457 at December 31, 2012. The aggregate intrinsic value of exercisable
options was $805,223 at December 31, 2012<b>.  </b>The aggregate intrinsic value of options exercised during 2012 was
$190,235.</p>
427877
428439
2.36
2.26
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b></b></p>
<p style="margin: 0"></p>
<p style="text-align: left; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>14.  Financial Instruments</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The carrying value of the Company’s
bank debt is a reasonable estimate of fair value because of its short term nature. The carrying value of the Company’s note
receivable approximates fair value. Fair value was determined using a discounted cash flow analysis.</p>
<p style="margin: 0"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>17.  Business Combinations</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">On June 7, 2012, the Company
purchased certain assets of The C-Thru Ruler Company, a leading supplier of drafting, measuring, lettering and stencil products.
The Company purchased inventory and intellectual property related to C-Thru’s lettering and ruler business for approximately
$1.47 million using funds borrowed under its revolving loan agreement with HSBC. The Company recorded approximately $0.42 million
for inventory, as well as approximately $1.05 million for intangible assets, consisting of customer relationships.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The purchase price was allocated
to assets acquired and liabilities assumed as follows (in thousands):</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="background-color: white; width: 70%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif">Assets:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="width: 82%; text-align: left; text-indent: 0pt; padding-left: 18pt"><font style="font: 9pt Times New Roman, Times, Serif">Inventory</font></td>
<td style="width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 15%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">423</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="padding-bottom: 2px; padding-left: 18pt"><font style="font: 9pt Times New Roman, Times, Serif">Intangible Assets</font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,050</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="padding-bottom: 4px; padding-left: 18pt"><font style="font: 9pt Times New Roman, Times, Serif">Total assets</font></td>
<td style="padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,473</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
<p style="margin: 0; font: 10pt Times New Roman, Times, Serif">Net sales from the date of acquisition through December 31, 2012,
attributable to C-Thru were approximately $1.7 million. Unaudited net sales attributable to C-Thru for the comparable period in
2011 were approximately $1.4 million.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Assuming C-Thru was acquired
on January 1, 2012, unaudited proforma net sales for the year ended December 31, 2012 attributable to C-Thru were approximately
$3.2 million. Unaudited proforma net sales for the comparable period in 2011 were approximately $3.0 million.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Unaudited net income for the
year ended December 31, 2012 attributable to C-Thru was not material to the Company’s financial statements for those periods.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">On February 28, 2011, the Company
purchased substantially all of the assets of The Pac-Kit Safety Equipment Company, a leading manufacturer of first aid kits for
the industrial, safety, transportation and marine markets. The Company purchased the accounts receivable, inventory, equipment
and intangible assets of Pac-Kit for approximately $3.4 million, less liabilities assumed of $310,000, using funds borrowed under
the Company’s revolving loan agreement.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company recorded $1.9 million
for assets acquired, including accounts receivable, inventory and fixed assets, as well as $1.5 million for intangible assets,
consisting of customer relationships and the Pac-Kit trade name. During 2011, the Company incurred approximately $125,000 of integration
and transaction costs associated with the acquisition.  These costs were recorded in selling, general and administrative
expenses.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The purchase price was allocated
to assets acquired and liabilities assumed as follows (in thousands):</p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
<table cellpadding="0" cellspacing="0" style="background-color: white; width: 70%; font-size: 9pt">
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Assets:</font></p></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="width: 82%; text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">          
Accounts Receivable</font></td>
<td style="width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">592</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif">           Inventory</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,196</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif">           Equipment</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">150</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">          
Intangible Assets</font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,500</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif">           Total
assets</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,438</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif">  Liabilities</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">          
Accounts Payable</font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">310</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> Net assets acquired</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,128</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
<p style="text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Net sales for 2011 attributable to Pac-Kit were
approximately $5.2 million. The year ended December 31, 2011 represents a comparable period based on the Pac-Kit acquisition date.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Unaudited proforma net income,
excluding one time transaction and integration costs of $125,000, for the twelve months ended December 31, 2011, attributable to
Pac-Kit was approximately $175,000.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Assuming Pac-Kit was acquired
on January 1, 2011, unaudited proforma net sales and net income for the year ended December 31, 2011 attributable to Pac-Kit were
approximately $6.0 million and $200,000, respectively.</p>
3400000
1470000
310000
175000
200000
6000000
3200000
3000000
Under the revolving loan agreement, the Company is required to maintain specific amounts of tangible net worth, a specified
debt service coverage ratio, and a fixed charge coverage ratio. These financial covenants in the new loan agreement are
similar to the covenants in the prior agreement with Wells Fargo. At December 31, 2012 the Company was in compliance with these
covenants under the new agreement with HSBC Bank.
1196000
420000
423000
1500000
1050000
1050000
0.0175
30000000
Interest rate of LIBOR plus 1.75% (2.00% at December 31, 2012), which is 0.25% lower than the interest rate under the former loan agreement
1473793
3126986
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>1.  Operations</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The operations of Acme United
Corporation (the “Company”) consist of three reportable segments. The operations of the Company are structured and
evaluated based on geographic location.  The three reportable segments operate in the United States (including Asian
operations), Canada and Europe.  Principal products across all segments are scissors, shears, knives, rulers, pencil
sharpeners, first aid kits, and related products which are sold primarily to wholesale, contract and retail stationery distributors,
office supply super stores, school supply distributors, drug store retailers, industrial distributors, wholesale florists, mass
market retailers and hardware chains.</p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>3.  Inventories</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Inventories consisted of:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Finished
goods</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">28,819,060</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">22,887,381</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Work in process</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">71,285</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">44,564</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Materials
and supplies</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,401,775</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,563,047</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">30,292,120</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">24,494,992</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0; font: 10pt Times New Roman, Times, Serif">Inventories are stated net of valuation allowances for slow moving
and obsolete inventory of $563,268 as of December 31, 2012 and $551,827 as of December 31, 2011.</p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Finished
goods</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">28,819,060</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">22,887,381</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Work in process</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">71,285</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">44,564</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Materials
and supplies</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,401,775</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,563,047</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">30,292,120</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">24,494,992</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0; font: 10pt Times New Roman, Times, Serif"><b>4.  Intangible Assets</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Intangible assets consisted
of:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Patents</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,982,918</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,885,888</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Trademarks</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">601,716</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">565,273</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Pac-Kit Tradename, Customer
List</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,500,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,500,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">C-Thru,
Customer List</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,050,000</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5,134,634</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,951,161</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">accumulated
amortization</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">894,233</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">666,498</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,240,401</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,284,663</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Amortization expense for patents
and trademarks for the years ended December 31, 2012, and 2011 were $227,662 and $183,385, respectively.  <b> </b>The
estimated aggregate amortization expense for each of the next five succeeding years, calculated on a similar basis, is as follows:  2013
- $270,033; 2014 - $256,803; 2015 - $244,095; 2016 - $242,271; and 2017 - $238,328.</p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Patents</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,982,918</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,885,888</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Trademarks</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">601,716</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">565,273</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Pac-Kit Tradename, Customer
List</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,500,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,500,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">C-Thru,
Customer List</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,050,000</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5,134,634</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,951,161</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">accumulated
amortization</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">894,233</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">666,498</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,240,401</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,284,663</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0"> </p>
270033
256803
244095
242271
238328
227662
183385
3404720
2747352
900291
1012786
1732940
943676
6161538
4942830
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Asset
Category</font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Equity Securities</font></td>
<td style="width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">70%</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">68%</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Fixed Income Securities</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">29%</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">29%</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Other
Securities / Investments</font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1%</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3%</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">100%</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">100%</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2012</font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Level
1</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Level
2</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Level
3</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 42%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Money Market
Fund</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">19,609</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">19,609</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Acme United Common Stock</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">110,400</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">110,400</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Equity Common and Collected
Funds</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">811,113</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">811,113</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif">Fixed Income
Common and Collected Funds</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">384,280</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">384,280</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">130,009</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,195,393</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,325,402</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif">2011</font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Level
1</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Level
2</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Level
3</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 42%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Money Market
Fund</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">32,819</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">32,819</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Acme United Common Stock</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">95,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">95,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Equity Common and Collected
Funds</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">757,373</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">757,373</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif">Fixed Income
Common and Collected Funds</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">361,544</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">361,544</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">127,819</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,118,917</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,246,736</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: right; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: right; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Assumptions used to determine
benefit obligation:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">  Discount
rate</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2.99%</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3.99%</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Changes in benefit obligation:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Benefit obligation at
beginning of year</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,259,522</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,479,645</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Interest cost</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(85,108</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(99,122</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Service cost</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(36,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(19,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Actuarial (loss) gain</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(137,609</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">22,235</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Benefits
and plan expenses paid</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">292,546</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">316,010</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Benefit
obligation at end of year</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,225,693</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,259,522</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Changes in plan assets:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Fair value of plan assets
at beginning of year</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,246,736</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,315,428</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Actual return on plan
assets</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">149,717</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7,665</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Employer contribution</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">221,495</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">239,653</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Benefits
and plan expenses paid</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(292,546</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(316,010</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Fair
value of plan assets at end of year</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,325,402</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,246,736</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Funded
status</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(900,291</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(1,012,786</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Balance at
beginning of the year</font></td>
<td style="width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,762,345</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,830,465</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Change in net loss</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">82,657</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">65,570</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Amortization of actuarial
loss</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(135,759</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(124,536</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Amortization
of prior service cost</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(9,154</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(9,154</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">     Change
recognized in other comprehensive income</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(62,256</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(68,120</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 4px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total
recognized in other comprehensive income</font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,700,089</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,762,345</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Amounts recognized in Accumulated
Other Comprehensive Income:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net actuarial
loss</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,669,914</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,723,016</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Prior
service cost</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">30,175</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">39,329</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,700,089</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,762,345</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 85%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2013</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">254,000</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2014</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">247,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2015</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">231,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2016</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">214,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2017</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">194,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Years 2018 - 2022</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">742,000</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
791278
482591
384427
44234
3917
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>7.  Income Taxes</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The amounts of income tax expense
(benefit) reflected in operations is as follows:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Current:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; width: 68%; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Federal</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">843,812</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">756,126</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">State</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">115,111</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">88,741</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Foreign</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">523,752</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">532,827</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,482,675</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,377,694</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Deferred:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Federal</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(31,374</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(142,281</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">State</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(4,685</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(18,802</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Foreign</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,199</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(1,784</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(34,860</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(162,867</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,447,815</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,214,827</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The current state tax provision
was comprised of taxes on income, the minimum capital tax and other franchise taxes related to the jurisdictions in which the Company's
facilities are located.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">A summary of United States
and foreign income before income taxes follows:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"> </td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">United States</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,169,451</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,901,905</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Foreign</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,827,595</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,124,115</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,997,046</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,026,020</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"> </td></tr>
</table>
<p style="text-align: left; margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
<p style="text-align: left; margin: 0; font: 10pt Times New Roman, Times, Serif">As discussed in Note 10 below, for segment reporting,
Direct Import sales are included in the United States segment. However, the revenues are earned by our Hong Kong subsidiary and
related income taxes are paid in Hong Kong whose rate approximates 16.5%.  As such, income of the Asian subsidiary is
included in the foreign income before taxes.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The following schedule reconciles
the amounts of income taxes computed at the United States statutory rates to the actual amounts  reported in operations.</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"> </td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Federal
income taxes at 34% statutory rate</font></p></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,698,996</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,368,847</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">State and local taxes,
net of federal income tax effect</font></p></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">75,697</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">46,160</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Permanent items</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">79,892</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7,149</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Foreign tax rate difference</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(460,351</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(308,250</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Change
in deferred income tax valuation allowance</font></p></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">53,581</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">100,921</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> Provision
for income taxes</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,447,815</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,214,827</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The following summarizes
deferred income tax assets and liabilities:</p>
<p style="text-indent: 0pt; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"> </td>
<td style="border-bottom: black 2px solid"> </td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Deferred income tax liabilities:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; width: 68%; border-bottom: black 2px solid"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Plant,
property and equipment</font></p></td>
<td style="text-align: right; width: 1%; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">413,160</font></td>
<td nowrap="nowrap" style="width: 2%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">322,604</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">413,160</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">322,604</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Deferred income tax assets:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Asset valuations</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">543,002</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">426,429</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Contribution carryforward</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">157,297</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">296,802</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Operating loss carryforwards
and credits</font></p></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,201,789</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,148,208</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Pension</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">448,579</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">467,087</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Foreign tax credit</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">43,575</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">48,847</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Other</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">591,066</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">418,938</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,985,308</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,806,311</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Net deferred income
tax asset before valuation allowance</font></p></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,572,148</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,483,707</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Valuation allowance</font></p></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,201,789</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,148,208</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Net
deferred income tax asset</font></p></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,370,359</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,335,499</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"> </td></tr>
</table>
<p style="text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
<p style="text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">In 2012, the Company evaluated its tax positions
for years which remain subject to examination by major tax jurisdictions, in accordance with the requirements of ASC 740 and as
a result concluded no adjustment was necessary. The Company files income tax returns in the U.S. federal jurisdiction, and various
state and foreign jurisdictions. The Company’s evaluation of uncertain tax positions was performed for the tax years ended
December 31, 2009 and forward, the tax years which remain subject to examination by major tax jurisdictions as of December 31,
2012.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">In accordance with the Company’s
accounting policies, any interest and penalties related to uncertain tax positions are recognized as a component of income tax
expense.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company provides deferred
income taxes on foreign subsidiary earnings, which are not considered permanently reinvested.  Earnings permanently reinvested
would become taxable upon the sale or liquidation of a foreign subsidiary or upon the remittance of dividends.  During
2012, the Company repatriated $750,000 of foreign earnings from its Canadian subsidiary. U.S. income taxes on those repatriated
earnings have been partially offset by foreign tax credits. The Company plans to continue to repatriate future earnings of its
Canadian subsidiary and will provide for U.S. income taxes accordingly.  Foreign subsidiary earnings of $11,576,094 and
$9,855,053 are considered permanently reinvested as of December 31, 2012 and 2011, respectively, and no deferred income taxes have
been provided on these foreign earnings.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Due to the uncertain nature
of the realization of the Company's deferred income tax assets based on past performance and carry forward expiration dates, the
Company has recorded a valuation allowance for the amount of deferred income tax assets which are not expected to be realized.  This
valuation allowance is subject to periodic review, and if the allowance is reduced, the tax benefit will be recorded in future
operations as a reduction of the Company's tax expense.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">At December 31, 2012, the Company
had tax operating loss carry forwards aggregating $7,110,013, all of which were applicable to Germany, and can be carried forward
indefinitely.</p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Current:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; width: 68%; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Federal</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">843,812</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">756,126</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">State</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">115,111</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">88,741</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Foreign</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">523,752</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">532,827</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,482,675</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,377,694</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Deferred:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Federal</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(31,374</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(142,281</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">State</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(4,685</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(18,802</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Foreign</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,199</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(1,784</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(34,860</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(162,867</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,447,815</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,214,827</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">United States</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,169,451</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,901,905</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Foreign</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,827,595</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,124,115</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,997,046</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,026,020</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="text-align: left; margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Federal
income taxes at 34% statutory rate</font></p></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,698,996</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,368,847</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">State and local taxes,
net of federal income tax effect</font></p></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">75,697</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">46,160</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Permanent items</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">79,892</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7,149</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Foreign tax rate difference</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(460,351</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(308,250</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Change
in deferred income tax valuation allowance</font></p></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">53,581</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">100,921</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> Provision
for income taxes</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,447,815</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,214,827</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2011</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">2010</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Deferred income tax liabilities:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Plant, property</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; width: 68%; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">and
equipment</font></td>
<td style="text-align: right; border-bottom: black 2px solid; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">322,604</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">383,875</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">322,604</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">383,875</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Deferred income tax assets:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Asset valuations</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">426,429</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">372,774</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Contribution carryforward</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">296,802</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">309,818</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Operating loss</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">carryforwards
and credits</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,148,208</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,047,287</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Pension</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">467,087</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">522,903</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Foreign tax credit</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">48,847</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">-</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Other</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">418,938</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">328,718</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,806,311</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,581,500</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net deferred</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">income
tax asset before valuation allowance</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,483,707</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,197,625</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Valuation</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">allowance</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,148,208</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,047,287</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net deferred</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> income
tax asset</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,335,499</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,150,338</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
843812
756126
115111
88741
523752
532827
1482675
1377694
-31374
-142281
-4685
-18802
1199
-1784
-34860
-162867
1447815
1214827
2169451
1901905
2827595
2124115
4997046
4026020
1698996
1368847
75697
46160
-460351
-308250
53581
100921
413160
322604
413160
322604
157297
296802
2201789
2148208
448579
467087
43575
48847
591066
418938
3985308
3806311
1370359
1335499
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt"></p>
<p style="margin-top: 0; margin-bottom: 0"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: right; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="text-align: right; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Options
outstanding  at the beginning of the year</font></p></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">943,000</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">838,950</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Options granted</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">215,438</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">185,500</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Options forfeited</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(6,250</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(2,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Options
exercised</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(33,500</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(79,450</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Options
outstanding at the end of the year</font></p></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,118,688</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">943,000</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double"><p style="margin: 0"><font style="font: 9pt Times New Roman, Times, Serif">Options
exercisable at the end of the year</font></p></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">672,125</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">554,500</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Common
stock available for future grants at the end of the year</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">61,500</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">107,438</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td colspan="4" style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Weighted
average exercise price per share:</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> Granted</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10.47</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">9.67</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> Forfeited</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6.98</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10.10</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> Exercised</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5.13</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3.31</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> Outstanding</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10.96</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10.84</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> Exercisable</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">11.65</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">11.69</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<p style="margin-top: 0; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="10" style="border-bottom: black 2px solid; text-align: center; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif">Options
Outstanding</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="6" style="border-bottom: black 2px solid; text-align: center; font-weight: bold; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Options
Exercisable</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: left; border-bottom: black 2px solid; font-weight: bold; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Range
of Exercise Prices</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Number
Outstanding</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Weighted-Average
Remaining Contractual Life (Years)</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Weighted-Average
Exercise Price</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Number
Exercisable</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; font-weight: bold; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Weighted-Average
Exercise Price</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px; font-weight: bold"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td colspan="2" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$1.70 to $5.11</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">58,750</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> 
< 1</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3.73</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">58,750</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3.73</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td colspan="2" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$5.12 to $8.51</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">156,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 9pt Times New Roman, Times, Serif">7</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7.71</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">90,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">7.57</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td colspan="2" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$8.52 to $10.21</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">367,500</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 9pt Times New Roman, Times, Serif">9</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">9.82</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">63,500</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">9.77</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td colspan="2" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$10.22 to $13.62</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">121,000</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center"><font style="font: 9pt Times New Roman, Times, Serif">7</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">12.98</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">103,500</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">12.95</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td colspan="2" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">$13.63
to $17.02</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">239,750</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif">4</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">15.16</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">238,750</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">15.16</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 9%; text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 1%; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; width: 9%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">943,000</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 9%; text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 9%; text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 1%; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; width: 9%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">554,500</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 9%; text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><font style="font: 9pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="6" style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: right; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="text-align: right; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Expected
life in years</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Interest rate</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.60 – .92%</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.91 – 2.10%</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Volatility</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">.327-.333</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">.327-.330</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Dividend yield</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2.50% - 2.70%</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2.37% - 2.70%</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
215438
185500
6250
2000
33500
79450
79450
33500
1118688
943000
838950
672125
554500
61500
107438
40000
21500
10.47
9.67
6.98
10.10
5.13
3.31
10.96
10.84
11.65
11.69
1.70
5.12
8.52
10.22
13.63
5.11
8.51
10.21
13.62
17.02
1118688
30500
151750
427688
270500
238250
3.84
7.70
9.85
11.70
15.16
672125
30500
118750
146125
139500
237250
3.84
7.65
9.81
12.69
15.16
P5Y
P5Y
.0060
.0091
.0092
.0210
.00327
.00327
.00333
.00330
2.50% - 2.70%
2.37% - 2.70%
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Options granted under the Employee Plan vest 25% one day after the first
anniversary of the grant date and 25% one day after each of the next three anniversaries. </p>
<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">The
Initial Option vests 25% on the date of grant and 25% on the anniversary of the grant date in each of the following 3 years. Each
Annual Option becomes fully exercisable one day after the date of grant. The exercise price of all options granted equals the
fair market value of the Common Stock on the date the option is granted and expires ten (10) years from the date of grant.</font></p>
P7Y
140000
5000
4500
745698
P3Y
1290457
805223
190235
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>12.  Earnings Per
Share</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The calculation of earnings
per share follows:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"> </td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Numerator:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; width: 68%; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">   Net
income</font></td>
<td style="text-align: right; width: 1%; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,549,231</font></td>
<td nowrap="nowrap" style="width: 2%; border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,811,193</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Denominator:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt; padding-left: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">Denominator
for basic earnings per share:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-left: 18pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Weighted
average shares outstanding</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,115,574</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,099,982</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Effect
of dilutive employee stock options</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">16,935</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">   Denominator
for dilutive earnings per share</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,132,510</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,099,983</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">   Basic
earnings per share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1.14</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.91</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">   Dilutive
earnings per share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1.13</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.91</font></td>
<td nowrap="nowrap" style="text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">For 2012 and 2011, respectively,
507,750 and 602,895 stock options were excluded from diluted earnings per share calculations because they would have been anti-dilutive.</p>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Numerator:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; width: 68%; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">   Net
income</font></td>
<td style="text-align: right; width: 1%; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,549,231</font></td>
<td nowrap="nowrap" style="width: 2%; border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,811,193</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Denominator:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt; padding-left: 9pt"><font style="font: 9pt Times New Roman, Times, Serif">Denominator
for basic earnings per share:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-left: 18pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Weighted
average shares outstanding</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,115,574</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,099,982</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; padding-left: 9pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Effect
of dilutive employee stock options</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">16,935</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">   Denominator
for dilutive earnings per share</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,132,510</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,099,983</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">   Basic
earnings per share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1.14</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.91</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">   Dilutive
earnings per share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1.13</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.91</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
507750
602895
16935
0
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>13.   Accumulated
Other Comprehensive (loss) income</b></p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b> </b></p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The components of accumulated
other comprehensive (loss) income follow:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"> </td>
<td style="border-bottom: black 2px solid; font-size: 10pt"> </td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Foreign
currency translation adjustment</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Net
prior service credit and actuarial losses</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Total</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 51%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Balances,
December 31, 2010</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">280,964</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(1,156,120</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(875,157</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Change in net prior service
credit</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td colspan="4" style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">and actuarial
losses, net of tax</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">66,691</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">66,691</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Translation
adjustment</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(229,853</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(229,853</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Balances, December 31,
2011</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">51,111</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(1,089,429</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(1,038,319</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Change in net prior service
credit</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td colspan="4" style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">and actuarial
losses, net of tax</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">57,191</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">57,191</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Translation
adjustment</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">194,235</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">194,235</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Balances,
December 31, 2012</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">245,346</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(1,032,238</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(786,893</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The carrying value of the Company’s
bank debt is a reasonable estimate of fair value because of its short term nature. The carrying value of the Company’s note
receivable approximates fair value. Fair value was determined using a discounted cash flow analysis.</p>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Foreign
currency translation adjustment</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Net
prior service credit and actuarial losses</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Total</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 51%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Balances,
December 31, 2010</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">280,964</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(1,156,120</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(875,157</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Change in net prior service
credit</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td colspan="4" style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">and actuarial
losses, net of tax</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">66,691</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">66,691</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Translation
adjustment</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(229,853</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(229,853</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Balances, December 31,
2011</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">51,111</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(1,089,429</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(1,038,319</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Change in net prior service
credit</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td colspan="4" style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">and actuarial
losses, net of tax</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">57,191</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">57,191</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Translation
adjustment</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">194,235</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">194,235</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 4px double; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Balances,
December 31, 2012</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">245,346</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(1,032,238</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">(786,893</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
7110013
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>15.  Quarterly
Data (unaudited)</b></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td colspan="16" style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Quarters
(000's omitted, except per share data)</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>First</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Second</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Third</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Fourth</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Total</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 27%; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net
sales</font></td>
<td style="text-align: right; width: 1%; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">16,878</font></td>
<td nowrap="nowrap" style="width: 2%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">27,594</font></td>
<td nowrap="nowrap" style="width: 2%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">20,363</font></td>
<td nowrap="nowrap" style="width: 2%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">19,535</font></td>
<td nowrap="nowrap" style="width: 2%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">84,370</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Cost
of goods sold</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10,934</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">17,773</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">12,937</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">12,979</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">54,623</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net
income</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">260</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,061</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">798</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">430</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,549</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Basic earnings per share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.08</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.66</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.26</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.14</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1.14</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Diluted earnings per
share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.08</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.66</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.26</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.13</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1.13</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Dividends per share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.07</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.07</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.07</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.07</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.28</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>First</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Second</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Third</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Fourth</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Total</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net
sales</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">14,401</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">24,029</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">19,036</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">15,836</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">73,302</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Cost
of goods sold</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">9,093</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">15,346</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">12,396</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10,142</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">46,977</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net
income</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">120</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,743</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">682</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">266</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,811</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Basic earnings per share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.04</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.56</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.22</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.08</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.91</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Diluted earnings per
share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.04</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.55</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.22</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.09</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.91</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Dividends per share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.06</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.06</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.07</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.07</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.26</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Earnings per share were computed
independently for each of the quarters presented.  Therefore, the sum of the four quarterly earnings per share amounts
may not necessarily equal the earnings per share for the year.</p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td colspan="16" style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Quarters
(000's omitted, except per share data)</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>First</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Second</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Third</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Fourth</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Total</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 27%; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net
sales</font></td>
<td style="text-align: right; width: 1%; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">16,878</font></td>
<td nowrap="nowrap" style="width: 2%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">27,594</font></td>
<td nowrap="nowrap" style="width: 2%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">20,363</font></td>
<td nowrap="nowrap" style="width: 2%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">19,535</font></td>
<td nowrap="nowrap" style="width: 2%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 10%; border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">84,370</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Cost
of goods sold</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10,934</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">17,773</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">12,937</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">12,979</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">54,623</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net
income</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">260</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,061</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">798</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">430</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,549</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Basic earnings per share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.08</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.66</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.26</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.14</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1.14</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Diluted earnings per
share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.08</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.66</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.26</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.13</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1.13</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Dividends per share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.07</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.07</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.07</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.07</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.28</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>First</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Second</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Third</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Fourth</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>Total</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net
sales</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">14,401</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">24,029</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">19,036</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">15,836</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">73,302</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Cost
of goods sold</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">9,093</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">15,346</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">12,396</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">10,142</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">46,977</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net
income</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">120</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,743</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">682</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">266</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,811</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Basic earnings per share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.04</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.56</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.22</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.08</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.91</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Diluted earnings per
share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.04</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.55</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.22</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.09</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.91</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Dividends per share</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.06</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.06</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.07</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.07</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">0.26</font></td>
<td nowrap="nowrap" style="text-align: left; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><font style="font: 9pt Times New Roman, Times, Serif"> </font></p>
141882
25732
3100000
166732
129242
P14Y
572985
535500
3318917
3084925
1521464
1239693
1
1
.70
.68
.29
.29
.01
.03
0.0825
.0825
-137609
22235
-154000
230000
10000
110400
95000
1325402
1246736
1315428
130009
1195393
19609
110400
811113
384280
19609
110400
95000
32819
1118917
757373
811113
757373
127819
32819
95000
384280
361544
361544
.0299
.0399
292546
316010
2225693
2259522
2479645
149717
7665
221495
239653
-900291
-1012786
.0399
0.0442
-135759
-124536
-9154
-9154
1700089
1762345
1669914
1723016
30175
39329
254000
247000
231000
214000
194000
742000
82657
65570
-62256
-68120
0.50
0.06
99105
95088
.65
.30
.05
66694000
55856000
66694000
55856000
17676000
17446000
8808000
8052000
8514000
8125000
816000
807000
2201789
2148208
3572148
3483707
26794065
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>8.  Debt</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Long term debt consists of borrowings
under the Company’s revolving loan agreement with HSBC Bank, N.A. As of December 31, 2012<b>, </b>$24,319,829 was outstanding
and $5,680,171 was available for borrowing under the Company’s revolving loan agreement.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">On April 5, 2012, the Company
entered into a new revolving loan agreement with HSBC Bank, N.A. In conjunction with signing the new revolving loan agreement,
the Company ended its agreement with Wells Fargo and used funds borrowed under the new loan agreement to pay all amounts then outstanding
under the revolving loan agreement with Wells Fargo Bank.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The new five-year credit facility
provides for increased borrowings of up to an aggregate of $30 million at an interest rate of LIBOR plus 1.75% (2.00% at December
31, 2012), which is 0.25% lower than the interest rate under the former loan agreement with Wells Fargo. All principal amounts
outstanding under the agreement are required to be repaid in a single amount on April 5, 2017, the date the agreement expires;
interest is payable monthly.  Funds borrowed under the agreement may be used for working capital, general operating expenses,
share repurchases, acquisitions and certain other purposes.  Under the revolving loan agreement, the Company is required
to maintain specific amounts of tangible net worth, a specified debt service coverage ratio, and a fixed charge coverage ratio.
These financial covenants in the new loan agreement are similar to the covenants in the prior agreement with Wells Fargo. At December
31, 2012 the Company was in compliance with these covenants under the new agreement with HSBC.</p>
P3Y
P30Y
-135759
-124536
79892
7149
543002
426429
750000
11576094
9855053
P1Y
P6Y
P8Y
P8Y
P3Y
2017-04-05
57191
66691
251426
-163162
-163162
251426
402467
281573
967892
1053926
3069337
3134977
3125452
427877
428439
428439
427877
24034
24034
-870133
-806887
-806887
-870133
171872
263237
198627
83752
64610
88120
-13810
-43025
-438897
-133738
-133738
-438897
-34860
-185162
831791
1293036
436084
390418
1
2
1
.17
.20
.12
28819060
22887381
71285
44564
1401775
1563047
563268
551827
1982918
1885888
601716
565273
1500000
1500000
1050000
5134634
3951161
894233
666498
221000
.165
5680171
760856
713925
681000
941000
656000
14000
11000
912000
26000
3000
1089000
978000
980000
36000
73000
857000
36000
85000
1900000
125000
3438000
1473000
592000
150000
310000
3128000
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>2.  Accounting
Policies</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Estimates - The preparation
of financial statements in conformity with accounting principles generally accepted in the United States requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period.  The most sensitive and significant accounting estimates relate to customer rebates, valuation allowances for
deferred income tax assets, obsolete and slow-moving inventories, potentially uncollectible accounts receivable and accruals for
income taxes.  Actual results could differ from those estimates.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Principles of Consolidation
- The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned
by the Company.  All significant intercompany accounts and transactions are eliminated in consolidation.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Translation of Foreign Currency
- For foreign operations whose functional currencies are not U.S. dollars, assets and liabilities are translated at rates in effect
at the end of the year; revenues and expenses are translated at average rates in effect during the year.  Resulting translation
adjustments are made directly to accumulated other comprehensive loss.  Foreign currency transaction gains and losses
are recognized in operating results.  Foreign currency transaction losses, which are included in other income, net, were
$141,882 in 2012 and $25,732 in 2011.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Cash Equivalents - Investments
with an original maturity of three months or less, as well as time deposits and certificates of deposit that are readily redeemable
at the date of purchase, are considered cash equivalents.  Included with the cash and equivalents are Certificates of
Deposit totaling approximately $3.1 million.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Accounts Receivable - Accounts
receivable are shown less an allowance for doubtful accounts of $166,732 in 2012 and $129,242 in 2011.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Inventories - Inventories are
stated at the lower of cost, determined by the first-in, first-out method, or market.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Property, Plant and Equipment
and Depreciation – Property, plant and equipment is recorded at cost.  Depreciation is computed by the straight-line
method over the estimated useful lives of the assets, which range from 3 to 30 years.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Intangible Assets– Intangible
assets with finite useful lives are recorded at cost upon acquisition, and amortized over the term of the related contract or useful
life, as applicable.  Intangible assets held by the Company with finite useful lives include patents and trademarks.  Patents
and trademarks are amortized over their estimated useful lives.  The weighted average amortization period for intangible
assets at December 31, 2012 was 14 years.  The Company periodically reviews the values recorded for intangible assets
to assess recoverability from future operations whenever events or changes in circumstances indicate that their carrying amounts
may not be recoverable.  At December 31, 2012 and 2011, the Company assessed the recoverability of its long-lived assets
and believed that there were no events or circumstances present that would that would require a test of recoverability on those
assets. As a result, there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful
lives.</p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Deferred Income Taxes - Deferred
income taxes are provided for the differences between the financial statement and tax bases of assets and liabilities, and on operating
loss carryovers, using tax rates in effect in years in which the differences are expected to reverse.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Revenue Recognition –
The Company recognizes revenue from the sales of its products when ownership transfers to the customers, which occurs either at
the time of shipment or upon delivery based upon contractual terms with the customer.  The Company recognizes customer
program costs, including rebates, cooperative advertising, slotting fees and other sales related discounts, as a reduction to sales.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Research and Development –
Research and development costs ($572,985 in 2012 and $535,500 in 2011) are expensed as incurred.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Shipping Costs – The costs
of shipping product to our customers ($3,318,917 in 2012 and $3,084,925 in 2011) are included in selling, general and administrative
expenses.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Advertising Costs – The
Company expenses the production costs of advertising the first time that the related advertising takes place.  Advertising
costs ($1,521,464 in 2012 and $1,239,693 in 2011) are included in selling, general and administrative expenses.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Subsequent Events - The Company
has evaluated events and transactions subsequent to December 31, 2012 through the date the consolidated financial statements were
included in this Form 10-K and filed with the SEC.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Concentration – The Company
performs ongoing credit evaluations of its customers and generally does not require collateral for the extension of credit. Allowances
for credit losses are provided and have been within management's expectations.  In 2012, with respect to concentration
risk related to accounts receivable, the Company had one customer that accounted for greater than 10% of total net receivables.
In 2012, the Company had two customers that individually exceeded 10% of consolidated net sales. In 2011, the Company had one customer
that exceeded 10% of consolidated net sales. Net sales to these customers amounted to approximately 17% and 12% in 2012.  Net
sales to the one customer amounted to approximately 20% in 2011.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>Recently Issued Accounting
Standards</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">In February 2013, the Financial
Accounting Standards Board (“FASB”) issued an accounting standards update on the reporting of amounts reclassified
out of accumulated other comprehensive income, to improve the transparency of reporting. These reclassifications present the effects
on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income – but only
if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period.
This standard update is effective for reporting periods beginning after December 15, 2012. We are currently evaluating the impact
of adopting this accounting standards update on our consolidated financial statements.</p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>5.  Other Accrued
Liabilities</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Other current and long-term
accrued liabilities consisted of:</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Customer
rebates</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,404,720</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,747,352</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Remediation liability</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">123,587</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">239,016</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Pension liability</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">900,291</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,012,786</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Other</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,732,940</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">943,676</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,161,538</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,942,830</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0; font: 10pt Times New Roman, Times, Serif"><b> </b></p>
Estimates - The preparation
of financial statements in conformity with accounting principles generally accepted in the United States requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period.  The most sensitive and significant accounting estimates relate to customer rebates, valuation allowances for
deferred income tax assets, obsolete and slow-moving inventories, potentially uncollectible accounts receivable and accruals for
income taxes.  Actual results could differ from those estimates.
Principles of Consolidation
- The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned
by the Company.  All significant intercompany accounts and transactions are eliminated in consolidation.
Translation of Foreign Currency
- For foreign operations whose functional currencies are not U.S. dollars, assets and liabilities are translated at rates in effect
at the end of the year; revenues and expenses are translated at average rates in effect during the year.  Resulting translation
adjustments are made directly to accumulated other comprehensive loss.  Foreign currency transaction gains and losses
are recognized in operating results.  Foreign currency transaction losses, which are included in other income, net, were
$141,882 in 2012 and $25,732 in 2011.
Cash Equivalents - Investments
with an original maturity of three months or less, as well as time deposits and certificates of deposit that are readily redeemable
at the date of purchase, are considered cash equivalents.  Included with the cash and equivalents are Certificates of
Deposit totaling approximately $3.1 million.
Accounts Receivable - Accounts
receivable are shown less an allowance for doubtful accounts of $166,732 in 2012 and $129,242 in 2011.
Inventories - Inventories are
stated at the lower of cost, determined by the first-in, first-out method, or market.
Property, Plant and Equipment
and Depreciation – Property, plant and equipment is recorded at cost.  Depreciation is computed by the straight-line
method over the estimated useful lives of the assets, which range from 3 to 30 years.
Intangible Assets– Intangible
assets with finite useful lives are recorded at cost upon acquisition, and amortized over the term of the related contract or useful
life, as applicable.  Intangible assets held by the Company with finite useful lives include patents and trademarks.  Patents
and trademarks are amortized over their estimated useful lives.  The weighted average amortization period for intangible
assets at December 31, 2012 was 14 years.  The Company periodically reviews the values recorded for intangible assets
to assess recoverability from future operations whenever events or changes in circumstances indicate that their carrying amounts
may not be recoverable.  At December 31, 2012 and 2011, the Company assessed the recoverability of its long-lived assets
and believed that there were no events or circumstances present that would that would require a test of recoverability on those
assets. As a result, there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful
lives.
Deferred Income Taxes - Deferred
income taxes are provided for the differences between the financial statement and tax bases of assets and liabilities, and on operating
loss carryovers, using tax rates in effect in years in which the differences are expected to reverse.
Revenue Recognition –
The Company recognizes revenue from the sales of its products when ownership transfers to the customers, which occurs either at
the time of shipment or upon delivery based upon contractual terms with the customer.  The Company recognizes customer
program costs, including rebates, cooperative advertising, slotting fees and other sales related discounts, as a reduction to sales.
Research and Development –
Research and development costs ($572,985 in 2012 and $535,500 in 2011) are expensed as incurred.
Shipping Costs – The costs
of shipping product to our customers ($3,318,917 in 2012 and $3,084,925 in 2011) are included in selling, general and administrative
expenses.
Advertising Costs – The
Company expenses the production costs of advertising the first time that the related advertising takes place.  Advertising
costs ($1,521,464 in 2012 and $1,239,693 in 2011) are included in selling, general and administrative expenses.
Subsequent Events - The Company
has evaluated events and transactions subsequent to December 31, 2012 through the date the consolidated financial statements were
included in this Form 10-K and filed with the SEC.
Concentration – The Company
performs ongoing credit evaluations of its customers and generally does not require collateral for the extension of credit. Allowances
for credit losses are provided and have been within management's expectations.  In 2012, with respect to concentration
risk related to accounts receivable, the Company had one customer that accounted for greater than 10% of total net receivables.
In 2012, the Company had two customers that individually exceeded 10% of consolidated net sales. In 2011, the Company had one customer
that exceeded 10% of consolidated net sales. Net sales to these customers amounted to approximately 17% and 12% in 2012.  Net
sales to the one customer amounted to approximately 20% in 2011.
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2px solid; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Customer
rebates</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,404,720</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,747,352</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Remediation liability</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">123,587</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">239,016</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Pension liability</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">900,291</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,012,786</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; border-bottom: black 2px solid; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Other</font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">1,732,940</font></td>
<td nowrap="nowrap" style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 2px solid"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">943,676</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">6,161,538</font></td>
<td nowrap="nowrap" style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; border-bottom: black 4px double"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,942,830</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0; font: 10pt Times New Roman, Times, Serif"><b> </b></p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total operating
income</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">5,361</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,285</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Interest expense, net</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">264</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">255</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Other
expense, net</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">99</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Consolidated
income before taxes</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,998</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">4,026</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 4px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Net
Income</font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">3,549</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">2,811</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Revenues</font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2012</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td colspan="2" style="border-bottom: black 2px solid; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif"><b>2011</b></font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; width: 68%; padding-left: 18pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">United
States</font></td>
<td style="text-align: right; width: 1%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">66,694</font></td>
<td nowrap="nowrap" style="width: 2%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; width: 2%"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="width: 12%; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">55,856</font></td>
<td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 18pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">International:</font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; text-indent: 0pt; padding-left: 27pt"><font style="font: 9pt Times New Roman, Times, Serif">Canada</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,808</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,514</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-left: 27pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Europe</font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,052</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">8,125</font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; padding-left: 27pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Other</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">816</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">807</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2px; padding-left: 18pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total
International</font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">17,676</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 2px solid; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 2px solid; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">17,446</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 2px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td nowrap="nowrap" style="text-align: left"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: white; vertical-align: bottom">
<td style="text-align: left; padding-bottom: 4px; padding-left: 18pt; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">Total
Revenues</font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">84,370</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: right; padding-bottom: 4px"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: black 4px double; text-align: left"><font style="font: 9pt Times New Roman, Times, Serif">$</font></td>
<td style="border-bottom: black 4px double; text-align: right"><font style="font: 9pt Times New Roman, Times, Serif">73,302</font></td>
<td nowrap="nowrap" style="text-align: left; padding-bottom: 4px; font-size: 10pt"><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><b>16.  Sale of Property</b></p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">In December 2008, the Company
sold property it owned in Bridgeport, Connecticut to B&E Juices, Inc. for $2.5 million.  The property consisted of
approximately four acres of land and 48,000 sq. feet of warehouse space.  The property was the site of the original Acme
United scissor factory which opened in 1887 and was closed in 1996.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Under the terms of the sale
agreement, and as required by the Connecticut Transfer Act, the Company is responsible to remediate any environmental contamination
on the property. During 2008, the Company hired an independent environmental consulting firm to conduct environmental studies in
order to identify the extent of the environmental contamination on the property and to develop a remediation plan. As a result
of those studies and the estimates prepared by the independent environmental consulting firm, the Company recorded an undiscounted
liability of approximately $1.8 million in the fourth quarter of 2008, related to the remediation of the property. This accrual
included the costs of required investigation, remedial activities, and post-remediation operating and maintenance.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">Remediation work on the project
began in the third quarter of 2009 and was completed during the third quarter of 2012. During 2012, the Company paid approximately
$115,000 for work related to the remediation and has approximately $124,000 remaining in its accrual for environmental remediation,
of which approximately $65,000 was classified as a current liability.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">In addition to the remediation
work, the Company, with the assistance of its independent environmental consulting firm, must continue to monitor contaminant levels
on the property to ensure they comply with set governmental standards. The Company expects that the monitoring period could last
a minimum of two years with the estimated completion by the end of 2014.</p>
<p style="margin: 0pt"> </p>
<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The change in the accrual
for environmental remediation for the year ended December 31, 2012 follows (in thousands):</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="width: 80%; font-size: 9pt">
<tr style="vertical-align: bottom">
<td style="width: 33%; border-bottom: black 2px solid; text-align: center"><p style="margin-top: 0; text-align: center; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif"><b>Balance
at</b></font></p>
<p style="margin-top: 0; text-align: center; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif"><b>December
31, 2011</b></font></p></td>
<td style="width: 34%; border-bottom: black 2px solid; text-align: center"><font style="font: 9pt Times New Roman, Times, Serif"><b>Payments</b></font></td>
<td style="width: 33%; border-bottom: black 2px solid; text-align: center"><p style="margin-top: 0; text-align: center; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif"><b>Balance
at</b></font></p>
<p style="margin-top: 0; text-align: center; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif"><b>December
31, 2012</b></font></p></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td>
<td><font style="font: 9pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="background-color: #cceeff; vertical-align: bottom">
<td style="border-bottom: black 4px double; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">$  239</font></td>
<td style="border-bottom: black 4px double"><p style="margin-top: 0; text-align: center; margin-bottom: 0"><font style="font: 9pt Times New Roman, Times, Serif">$  (115)</font></p></td>
<td style="border-bottom: black 4px double; text-align: center; text-indent: 0pt"><font style="font: 9pt Times New Roman, Times, Serif">$  124</font></td></tr>
</table>
<p style="text-indent: 0pt; margin: 0"><br />
<font style="font: 10pt Times New Roman, Times, Serif">Also, as part of the sale, the Company has provided the buyer with a mortgage
of $2.0 million at six percent interest.  The mortgage is payable in monthly installments with the outstanding balance
due in full, one year after remediation and monitoring on the property have been completed</font></p>
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280964
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194235
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