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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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Interest rate of LIBOR plus 1.75%
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<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="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: left"> </p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: left">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. Prior to April 2012, stock options were granted under the 2002 Employee Stock Option Plan.
Once granted, the options expire ten years from the date of grant. Options granted to employees under the 2002 Employee Stock Option
Plan vested over four years. The 2002 Employee Stock Option Plan expired in 2012 and no additional grants may be made thereunder.</p>
<p style="text-align: left; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"></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>
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149000
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149000
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8052000
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P3Y
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>1. Operations</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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, , mass market
retailers, industrial distributors, school supply distributors, drug store retailers, sporting goods stores, hardware chains and
wholesale florists.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>2. Accounting Policies</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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, pension liability and accruals for income
taxes. Actual results could differ from those estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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 expense, net, were $88,125 in 2013 and $141,882 in 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Accounts Receivable - Accounts receivable are shown less an
allowance for doubtful accounts of $227,891 at December 31, 2013 and $212,732 at December 31, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Inventories - Inventories are stated at the lower of cost,
determined by the first-in, first-out method, or market.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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, 2013 was 14 years. The Company periodically <font style="letter-spacing: -0.1pt">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. </font>At December 31, 2013 and 2012, 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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 16pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Revenue Recognition – <font style="color: black">The
Company recognizes revenue </font>from the sales of its products when ownership transfers to the customers, <font style="color: black">which
occurs either at the time of shipment or upon delivery based upon contractual terms with the customer.</font> <font style="color: black">The
Company recognizes customer program costs, including rebates, cooperative advertising, slotting fees and other sales related discounts,
as a reduction to sales.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 16pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Research and Development – Research and development costs
($602,985 in 2013 and $572,985 in 2012) are expensed as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Shipping Costs – The costs of shipping
product to our customers ($3,244,487 in 2013 and $3,318,917 in 2012) are included in selling, general and administrative expenses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 16pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Advertising Costs – The Company expenses the production
costs of advertising the first time that the related advertising takes place. Advertising costs ($1,484,782 in 2013 and $1,521,464
in 2012) are included in selling, general and administrative expenses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in">Subsequent Events - The
Company has evaluated events and transactions subsequent to December 31, 2013 through the date the consolidated financial statements
were included in this Form 10-K and filed with the SEC.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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. At December 31, 2013, 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 2013 and 2012, the Company had two
customers that individually exceeded <font style="color: black">10% of consolidated net sales. Net sales to these customers amounted
to approximately 16% and 15% in 2013 and approximately 17% and 12% in 2012. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Recently Issued Accounting Standards</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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. The Company adopted this
standard for reporting periods beginning after December 15, 2012. The adoption of this accounting standard has not had an impact
on our consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">3.  Inventories</p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt">Inventories consisted of:</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">Finished goods</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">26,004,042</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">28,819,060</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Work in process</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">186,507</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">71,285</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Materials and
supplies</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">2,028,333</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,401,775</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">28,218,883</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">30,292,120</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inventories are stated net of valuation
allowances for slow moving and obsolete inventory of $557,070 as of December 31, 2013 and $563,268 as of December 31, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">4.  Intangible Assets</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"><font style="font-weight: normal"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt">Intangible assets consisted of:</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%"><font style="font-size: 9pt">Patents</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">2,054,316</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,982,918</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">Trademarks</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">632,458</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">601,716</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Pac-Kit Tradename, Customer List</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">1,500,000</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">1,500,000</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">C-Thru, Customer
List</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,050,000</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,050,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,236,774</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,134,634</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">accumulated
amortization</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,164,877</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">894,233</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">4,071,897</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">4,240,401</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"><font style="font-weight: normal"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"><font style="font-weight: normal"></font></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><font style="font-weight: normal">Amortization
expense for patents and trademarks for the years ended December 31, 2013, and 2012 were $270,644 and $227,662, respectively.
The estimated aggregate amortization expense for each of the next five succeeding years, calculated on a similar basis, is as
follows: 2014 - $259,202; 2015 - $246,494; 2016 - $244,669; 2017 - $240,727; and 2018 - $234,715. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">5.  Other Accrued Liabilities</p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Other current and long-term accrued liabilities consisted of:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">Customer rebates</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">3,277,416</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">3,404,720</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Remediation liability</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">39,044</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">123,587</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Pension liability</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">183,034</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">900,291</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Other</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,873,695</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,732,940</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">5,373,188</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">6,161,538</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 30.8pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>6. Pension and Profit Sharing</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 30.8pt"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 2013, the Company contributed
$482,455 to the plan and expects to contribute approximately $200,000 during 2014.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The plan asset weighted average allocation at December 31,
2013 and December 31, 2012, by asset category, were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Asset Category</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">Equity Securities</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 14%; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">70%</font></td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 14%; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">70</font>%</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Fixed Income Securities</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 9pt">29</font>%</td><td style="text-align: left"> </td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 9pt">29%</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Other Securities / Investments</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">1</font>%</td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">1%</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt">Total</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">100</font>%</td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"> </td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">100%</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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 70% equity securities, 29% fixed income securities, and 1% cash investments. Plan funds are invested
in long-term obligations with a history of moderate to low risk.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2013 and 2012, equity
securities in the pension plan included 10,000 shares of the Company's Common Stock, having a market value of $149,000 and $110,400,
respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><font style="font-family: Symbol">·</font></td><td style="text-align: justify; 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.</td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><font style="font-family: Symbol">·</font></td><td style="text-align: justify; 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.</td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
<td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"></td><td style="width: 0.25in; font: 10pt Times New Roman, Times, Serif"><font style="font-family: Symbol">·</font></td><td style="text-align: justify; font: 10pt Times New Roman, Times, Serif">Level
3
–
Inputs
to
the
valuation
methodology
are
unobservable
and
significant
to
the
fair
value
measurement.</td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following tables present the pension
plan assets by level within the fair value hierarchy as of December 31, 2013 and 2012:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2013</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Level 1</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Level 2</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Level 3</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Total</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left"><font style="font-size: 8pt">Money Market Fund</font></td><td style="width: 3%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">8,322</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 3%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">—  </font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 3%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">—  </font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 3%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">8,322</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Acme United Common Stock</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">149,000</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">—  </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">—  </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">149,000</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">Equity Common and Collected Funds</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">—  </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">1,054,416</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">—  </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">1,054,416</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Fixed Income Common and Collected Funds</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">—  </font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">491,864</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">—  </font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">491,864</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 8pt">157,322</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 8pt">1,546,280</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 8pt">—  </font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 8pt">1,703,602</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: Black 1pt solid">2012</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 1</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 2</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 3</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left">Money Market Fund</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">19,609</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">19,609</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Acme United Common Stock</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">110,400</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">110,400</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Equity Common and Collected Funds</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">811,113</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">811,113</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Fixed Income Common and Collected Funds</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">384,280</td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">384,280</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double">Total</td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"> </td>
<td style="border-bottom: Black 3pt double; text-align: left">$</td><td style="border-bottom: Black 3pt double; text-align: right">130,009</td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"> </td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"> </td>
<td style="border-bottom: Black 3pt double; text-align: left">$</td><td style="border-bottom: Black 3pt double; text-align: right">1,195,393</td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"> </td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"> </td>
<td style="border-bottom: Black 3pt double; text-align: left">$</td><td style="border-bottom: Black 3pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"> </td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"> </td>
<td style="border-bottom: Black 3pt double; text-align: left">$</td><td style="border-bottom: Black 3pt double; text-align: right">1,325,402</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Other disclosures related to the pension plan follow:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font-size: 9pt">Assumptions used to determine benefit obligation:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">  Discount rate</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">3.78</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt">%</font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">2.99</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Changes in benefit obligation:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Benefit obligation at beginning of year</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">(2,225,693</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">(2,259,522</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Interest cost</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(64,649</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(85,108</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Service cost</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(40,000</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(36,000</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Actuarial gain (loss)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">51,022</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(137,609</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Benefits and
plan expenses paid</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">392,684</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">292,546</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Benefit obligation
at end of year</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(1,886,636</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(2,225,693</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Changes in plan assets:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Fair value of plan assets at beginning of year</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">1,325,402</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">1,246,736</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Actual return on plan assets</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">288,429</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">149,717</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Employer contribution</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">482,455</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">221,495</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Benefits and
plan expenses paid</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(392,684</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(292,546</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Fair value
of plan assets at end of year</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,703,602</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,325,402</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt">Funded status</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">(183,034</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">(900,291</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 2.5pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 2.5pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font-size: 9pt">Assumptions used to determine net periodic benefit cost:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; text-align: left"><font style="font-size: 9pt">  Discount rate</font></td><td style="width: 8%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 12%; text-align: right"><font style="font-size: 9pt">2.99</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt">%</font></td><td style="width: 8%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 12%; text-align: right"><font style="font-size: 9pt">3.99</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">  Expected return on plan assets</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">6.00</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">%</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">8.25</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Components of net benefit expense:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Interest cost</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">64,649</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">85,109</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Service cost</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">40,000</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">36,000</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Expected return on plan assets</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(69,439</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(94,765</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Amortization of prior service costs</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">9,154</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">9,154</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Amortization of actuarial loss</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">141,171</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">135,759</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt">Net periodic benefit cost</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">185,535</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">171,257</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 6% 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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 16pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table discloses the change
recorded in other comprehensive income related to benefit costs:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">Balance at beginning of the year</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,700,089</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,762,345</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Change in net loss</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(270,011</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">82,657</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Amortization of actuarial loss</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(141,173</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(135,759</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">Amortization of prior service cost</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(9,154</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(9,154</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">     Change recognized
in other comprehensive income</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(420,338</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(62,256</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 9pt">Total recognized in other comprehensive income</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,279,751</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,700,089</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Amounts recognized in Accumulated Other Comprehensive Income:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">Net actuarial loss</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,258,731</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,669,914</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">Prior service cost</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">21,020</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">30,175</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"><font style="font-size: 9pt">Total</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,279,751</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,700,089</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="text-align: left; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Accrued benefits costs are included in other accrued liabilities (non-current).  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In 2014, net periodic benefit cost will
include approximately $115,000 of net actuarial loss and $9,000 of prior service cost.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following benefits are expected to
be paid:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 76%; text-align: left; vertical-align: bottom"><font style="font-size: 9pt">2014</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">256,000</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">2015</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">239,000</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">2016</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">223,000</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">2017</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">205,000</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">2018</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">187,000</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">Years
2019 - 2023</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">691,000</font></td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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, 2013
and 2012, 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 $139,421 in 2013 and $99,105 in 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">7.  Income Taxes</p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">The amounts of income tax expense (benefit) reflected in operations is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">Current:</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 58%; text-align: left; vertical-align: bottom; padding-left: 11pt"><font style="font-size: 9pt">Federal</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">899,928</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">843,812</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: left; vertical-align: bottom; padding-left: 11pt"><font style="font-size: 9pt">State</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">118,092</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">115,111</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom; padding-left: 11pt"><font style="font-size: 9pt">Foreign</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">539,162</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">523,752</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,557,182</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,482,675</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">Deferred:</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: left; vertical-align: bottom; padding-left: 11pt"><font style="font-size: 9pt">Federal</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(59,240</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(31,374</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: left; vertical-align: bottom; padding-left: 11pt"><font style="font-size: 9pt">State</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(6,596</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(4,685</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom; padding-left: 11pt"><font style="font-size: 9pt">Foreign</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(360</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,199</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(66,196</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(34,860</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,490,986</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,447,815</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A summary of United States and foreign
income before income taxes follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; text-align: left"><font style="font-size: 9pt">United States</font></td><td style="width: 8%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 12%; text-align: right"><font style="font-size: 9pt">2,306,909</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 8%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 12%; text-align: right"><font style="font-size: 9pt">2,169,451</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Foreign</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,186,982</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">2,827,595</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">5,493,891</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">4,997,046</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="margin-top: 0; margin-bottom: 0"></p>
<p style="margin-top: 0; margin-bottom: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="text-align: left; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Federal income taxes at 34% statutory rate</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,867,923</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,698,996</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">State and local taxes, net of federal income tax effect</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">73,587</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">75,697</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Permanent items</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">61,750</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">79,892</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Foreign tax rate difference</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(515,729</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(460,351</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 0pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Change in deferred income tax valuation allowance</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,455</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">53,581</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px; border-bottom: Black 3pt double"><font style="font-size: 9pt"> Provision for income
taxes</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,490,986</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,447,815</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following summarizes deferred income
tax assets and liabilities:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt">Deferred income tax liabilities:</font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left; padding-bottom: 1pt; padding-left: 0pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Plant, property and equipment</font></td><td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">450,705</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="width: 5%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">413,160</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">450,705</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">413,160</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Deferred income tax assets:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Asset valuations</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">508,686</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">543,002</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Contribution carryforward</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">110,700</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">157,297</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Operating loss carryforwards and credits</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">2,205,244</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">2,201,789</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Pension</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">178,908</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">448,579</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Foreign tax credit</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">43,575</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">43,575</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Other</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">885,185</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">591,066</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,932,298</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,985,308</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Net deferred income tax asset before valuation allowance</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">3,481,593</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">3,572,148</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Valuation allowance</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(2,205,244</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(2,201,789</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt">Net deferred income tax asset</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,276,349</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,370,359</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In 2013, 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, 2010 and forward, the tax years which remain subject to examination by major tax jurisdictions as of December 31, 2013.<br />
<br /></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 2013, the Company repatriated $350,000 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 $13,884,269 and $11,576,094 are considered permanently reinvested as of December
31, 2013 and 2012, respectively, and no deferred income taxes have been provided on these foreign earnings.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Due to the uncertain nature of the realization of the Company's
deferred income tax assets based on past performance of its German subsidiary 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, all of which is related to deferred tax assets resulting from net operating losses of the Company’s German subsidiary,
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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #FF6600"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At December 31, 2013, the Company had tax operating loss carry
forwards aggregating $7,120,173, all of which were applicable to Germany, and can be carried forward indefinitely.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>8. Debt</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="font-weight: normal">Long term debt consists
of borrowings under the Company’s revolving loan agreement with HSBC Bank, N.A. As of December 31, 2013</font>, <font style="font-weight: normal">$22,911,829
was outstanding and $17,088,171 was available for borrowing under the Company’s revolving loan agreement. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On April 25, 2013, the Company amended its loan agreement with
HSBC Bank, N.A. dated April 5, 2012. The amendment increased the borrowing limit to $40 million from $30 million. The interest
rate remains the same at LIBOR plus 1.75%. 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 amended loan agreement, the Company is required to maintain specific amounts of tangible net worth, a debt/net worth ratio,
and a fixed charge coverage ratio.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>9. Commitments and Contingencies</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">The Company leases certain office, manufacturing
and warehouse facilities and various equipment under non-cancelable operating leases. Total rent expense was $893,509 and $760,856
in 2013 and 2012. Minimum annual rental commitments under non-cancelable leases with remaining terms of one year or more as of
December 31, 2013: 2014 - $605,876; 2015 - $110,158; 2016 - $49,910; 2017 - $6,337; and 2018 - $812.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>10. Segment Information</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="color: black">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. </font>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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 17% and 16% of the Company’s
total net sales in 2013 and 2012, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Financial data by segment:</p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><font style="font-size: 9pt"> </font></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center; vertical-align: bottom"><font style="font-size: 9pt"><b><u>2013</u></b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td> </td>
<td colspan="3"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">(000's omitted)</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">United
States</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">Canada</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">Europe</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">Consolidated</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 38%; text-align: left"><font style="font-size: 9pt">Net sales</font></td>
<td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 9pt">73,608</font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 9pt">8,092</font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 9pt">7,877</font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 9pt">89,577</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Operating income</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,082</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">557</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">240</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">5,879</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">Assets</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">57,068</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,329</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,682</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">68,079</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Additions to property, plant and equipment</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">4,500</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">47</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">45</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">4,592</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Depreciation and amortization</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">845</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">9</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">80</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">934</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 9pt"><b><u>2012</u></b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; text-align: right"></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Net sales</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">67,510</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">8,808</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">8,052</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">84,370</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Operating income (loss)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">4,394</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">775</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">192</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">5,361</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">Assets</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">56,115</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">6,107</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,606</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">67,828</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Additions to property, plant and equipment</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">656</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">14</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">11</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">681</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Depreciation and amortization</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">980</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">36</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">73</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">1,089</font></td></tr>
</table>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 9pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i></i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is a reconciliation of segment
operating income to consolidated income before taxes:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">Total operating income</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">5,879</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">5,361</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Interest expense, net</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">350</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">264</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">Other expense, net</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">35</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">99</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">Consolidated income before taxes</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">5,494</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">4,998</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 9pt">Net Income</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 9pt">4,003</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 9pt">3,549</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The table below presents revenue by geographic
area. Revenues are attributed to countries based on location of the customer.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt">Revenues</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left; padding-left: 11pt"><font style="font-size: 9pt">United States</font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">72,676</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">66,694</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font-size: 9pt">International:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 22pt"><font style="font-size: 9pt">Canada</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">8,092</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">8,808</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 22pt"><font style="font-size: 9pt">Europe</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">7,877</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">8,052</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 9pt">Other</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">932</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">816</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 11pt"><font style="font-size: 9pt">Total International</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">16,901</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">17,676</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 11pt"><font style="font-size: 9pt">Total Revenues</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 9pt">89,577</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 9pt">84,370</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>11. Stock Option Plans</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">The Company has two stock option plans: (1)
the 2012 Employee Stock Option Plan, as amended (the “Employee Plan”) and (2) the 2005 Non-Salaried Director Stock
Option Plan (the “Director Plan”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: left">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, 2013, the number of shares available for grant under the
Employee Plan was 37,475. 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. Prior to April 2012, stock options were granted under the 2002 Employee Stock Option Plan.
Once granted, the options expire ten years from the date of grant. Options granted to employees under the 2002 Employee Stock Option
Plan vested over four years. The 2002 Employee Stock Option Plan expired in 2012 and no additional grants may be made thereunder.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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 5,000 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, 2013, the number of shares available for grant under the Director Plan was 1,500.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A summary of changes in options issued under the Company’s
stock option plans follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Options outstanding at the</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-align: left; padding-left: 9px"><font style="font-size: 9pt">beginning of the year</font></td><td style="width: 8%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 12%; text-align: right"><font style="font-size: 9pt">1,118,688</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 8%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 12%; text-align: right"><font style="font-size: 9pt">943,000</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Options granted</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">220,500</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">215,438</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Options forfeited</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(27,475</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(6,250</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Options exercised</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(75,650</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(33,500</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Options outstanding at</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px; border-bottom: Black 3pt double"><font style="font-size: 9pt">the
end of the year</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,236,063</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,118,688</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Options exercisable at the</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px; border-bottom: Black 3pt double"><font style="font-size: 9pt">end
of the year</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">771,208</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">672,125</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt">Common stock
available for future grants at the end of the year</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">38,975</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">61,500</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Weighted average exercise price per share:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font-size: 9pt">Granted</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">13.38</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">10.47</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 11pt"><font style="font-size: 9pt">Forfeited</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">12.17</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">6.98</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font-size: 9pt">Exercised</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">6.89</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5.13</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 11pt"><font style="font-size: 9pt">Outstanding</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">11.61</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">10.96</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font-size: 9pt">Exercisable</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">11.64</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">11.65</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="text-align: left; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">A summary of options outstanding at December 31, 2013 is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td colspan="8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>Options
Outstanding</b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Options
Exercisable</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Range
of
Exercise
Prices</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Number
Outstanding</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted-
Average
Remaining
Contractual
Life
(Years)</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted-
Average
Exercise
Price</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Number
Exercisable</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted-
Average
Exercise
Price</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 23%; text-align: left; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">$5.12
to $8.51</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">128,250</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">5</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">7.83</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">128,250</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">7.83</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">$8.52
to $10.21</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">401,563</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">7</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">9.85</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">232,583</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">9.83</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">$10.22
to $13.62</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">316,500</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">7</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">11.76</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">184,125</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">12.27</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">$13.63
to $17.02</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">389,750</font></td><td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">5</font></td><td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">14.61</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">226,250</font></td><td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">15.16</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,236,063</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">771,208</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The weighted average remaining contractual
life of all outstanding stock options is 6 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 16pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Stock Based Compensation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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.
<font style="color: black">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”).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="color: black"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><font style="color: black"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The assumptions used to value option grants for the twelve
months ended December 31, 2013 and December 31, 2012 were as follows:</p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td nowrap="nowrap" style="vertical-align: bottom; width: 41%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt"> </font></td>
<td style="vertical-align: top; width: 4%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt"> </font></td>
<td style="vertical-align: bottom; width: 27%; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-top: Black 1pt solid"><font style="font-size: 9pt"><b>2013</b></font></td>
<td style="vertical-align: bottom; width: 28%; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-bottom: Black 1pt solid; border-top: Black 1pt solid"><font style="font-size: 9pt"><b>2012</b></font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">Expected
life in years</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt"> </font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">5</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">5</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: White">
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">Interest
rate</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt"> </font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">0.70
– 1.45%</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">0.60
– .92%</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">Volatility</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt"> </font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">.317-.328</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">.327-.333</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: White">
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">Dividend
yield</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt"> </font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">2.10%
- 2.70%</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">2.50%
- 2.70%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Total stock-based compensation recognized in the Company’s
consolidated statements of operations for the years ended December 31, 2013 and 2012 was $490,060 and $427,877, respectively.
At December 31, 2013, there was approximately $921,315 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, 2013, the remaining unamortized
expense is expected to be recognized over a weighted average period of 3 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The weighted average fair value at the
date of grant for options granted during 2013 and 2012 was $3.19 and $2.36 per option, respectively. The aggregate intrinsic value
of outstanding options was $4,116,502 at December 31, 2013. The aggregate intrinsic value of exercisable options was $2,578,658
at December 31, 2013<b>. </b>The aggregate intrinsic value of options exercised during 2013 was $441,085.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i></i>12. Earnings Per Share</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The calculation of earnings per share
follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt">Numerator:</font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">   Net income</font></td><td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">4,002,905</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="width: 5%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,549,231</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">Denominator:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">   Denominator for basic earnings per share:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">      Weighted average shares outstanding</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">3,167,764</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">3,115,574</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">   Effect of dilutive employee
stock options</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">115,698</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">16,935</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">   Denominator for dilutive
earnings per share</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,283,461</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,132,510</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font-size: 9pt">   Basic earnings per share</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">1.26</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">1.14</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">   Dilutive earnings per share</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">1.22</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">1.13</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For 2013 and 2012, respectively, 479,750
and 507,750 stock options were excluded from diluted earnings per share calculations because they would have been anti-dilutive.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i> </i></b></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">13.  Accumulated Other Comprehensive (loss) income</p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">The components of accumulated other comprehensive (loss) income follow:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Foreign
currency translation adjustment</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Net
prior service credit and actuarial losses</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Total</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 50%; text-align: left"><font style="font-size: 9pt">Balances, December 31, 2011</font></td><td style="width: 2%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 9pt">51,111</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 3%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 9pt">(1,089,429</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt">)</font></td><td style="width: 3%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 9pt">(1,038,319</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Change in net prior service credit</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt"><font style="font-size: 9pt"> </font></td>
<td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt"><font style="font-size: 9pt"> </font></td>
<td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">   and actuarial losses, net of tax</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">57,191</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">57,191</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Translation adjustment</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">194,235</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">194,235</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Balances, December 31, 2012</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">245,346</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">(1,032,238</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">(786,893</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Change in net prior service credit</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt"><font style="font-size: 9pt"> </font></td>
<td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt"><font style="font-size: 9pt"> </font></td>
<td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">   and actuarial losses, net of tax</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">241,365</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">241,365</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Translation adjustment</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(138,993</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(138,993</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt">Balances, December 31, 2013</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">106,353</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">(790,873</font></td><td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">(684,521</font></td><td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>14. Financial Instruments</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The carrying value of the Company’s bank debt is a reasonable
estimate of fair value. Fair value was determined using a discounted cash flow analysis.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>15. Quarterly Data (unaudited)</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b></b></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="21"><font style="font-size: 8pt">Quarters (000's omitted, except per share data)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">First</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Second</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Third</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Fourth</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Total</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Net sales</font></td><td style="width: 2%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">17,651</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="width: 2%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">28,412</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="width: 2%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">22,135</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="width: 2%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">21,379</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="width: 2%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">89,577</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Cost of goods sold</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">11,224</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">18,330</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">14,195</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">14,004</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">57,753</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Net income</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">309</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">2,211</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">959</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">524</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">4,003</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 8pt">Basic earnings per share</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.10</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.70</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.30</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.16</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">1.26</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">Diluted earnings per share</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.10</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.68</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.29</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.15</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">1.22</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Dividends per share</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.07</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.08</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.08</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.08</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.31</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2012</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">First</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">Second</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">Third</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">Fourth</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Net sales</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">16,878</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">27,594</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">20,363</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">19,535</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">84,370</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Cost of goods sold</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">10,934</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">17,773</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">12,937</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">12,979</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">54,623</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Net income</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">260</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">2,061</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">798</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">430</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,549</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 8pt">Basic earnings per share</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.08</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.66</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.26</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.14</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">1.14</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">Diluted earnings per share</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.08</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.66</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.26</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.13</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">1.13</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Dividends per share</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.07</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.07</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.07</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.07</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.28</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"><b></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><b>16. Sale of Property</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the terms of the sale agreement, and as required by the
Connecticut Transfer Act, the Company was 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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Remediation work on the project began in the third quarter
of 2009 and was completed during the third quarter of 2012. During 2013, the Company paid approximately $85,000 for work related
to the remediation and has approximately $39,000 remaining in its accrual for environmental remediation, all of which was classified
as a current liability at December 31, 2013.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 entire project will be completed by the end of 2014.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The change in the accrual for environmental
remediation for the year ended December 31, 2013 follows <font style="color: black">(in thousands)</font>:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="width: 38%; border-bottom: windowtext 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 9pt"><b>Balance
at <br />
December 31, 2012</b></font></td>
<td style="width: 22%; border-bottom: windowtext 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 9pt"><b>Payments</b></font></td>
<td style="width: 40%; border-bottom: windowtext 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 9pt"><b>Balance
at <br />
December 31, 2013</b></font></td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 9pt">$
124</font></td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 9pt">$  (85)</font></td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 9pt">$  39</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Also, as part of the sale, the Company had provided the buyer
with a mortgage of $2.0 million at six percent interest. During the third quarter of 2013, the Company received $1,726,000 from
B&E Juice as early repayment of the mortgage.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><b>17. Business Combinations</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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. <font style="color: black">The Company recorded approximately $0.42
million for inventory, as well as approximately $1.05 million for intangible assets, consisting of customer relationships.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">The purchase price was allocated to assets
acquired and liabilities assumed as follows (in thousands):</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left; vertical-align: bottom">Assets:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 37%; text-align: left; vertical-align: bottom; padding-left: 22pt">Inventory</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">423</td><td style="width: 50%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; vertical-align: bottom; padding-left: 22pt; padding-bottom: 1pt">Intangible Assets</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">1,050</td><td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; vertical-align: bottom; padding-left: 22pt; padding-bottom: 2.5pt">Total assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">1,473</td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Net sales from the date of acquisition through
December 31, 2012, attributable to C-Thru were approximately $1.7 million.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Unaudited net income for the year ended December
31, 2012 attributable to C-Thru was not material to the Company’s financial statements for that period.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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, pension liability and accruals for income
taxes. Actual results could differ from those estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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 expense, net, were $88,125 in 2013 and $141,882 in 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Accounts Receivable - Accounts receivable are shown less an
allowance for doubtful accounts of $227,891 at December 31, 2013 and $212,732 at December 31, 2012.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Inventories - Inventories are stated at the lower of cost,
determined by the first-in, first-out method, or market.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">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, 2013 was 14 years. The Company periodically <font style="letter-spacing: -0.1pt">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. </font>At December 31, 2013 and 2012, 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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 16pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Revenue Recognition – <font style="color: black">The
Company recognizes revenue </font>from the sales of its products when ownership transfers to the customers, <font style="color: black">which
occurs either at the time of shipment or upon delivery based upon contractual terms with the customer.</font> <font style="color: black">The
Company recognizes customer program costs, including rebates, cooperative advertising, slotting fees and other sales related discounts,
as a reduction to sales.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 16pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Research and Development – Research and development costs
($602,985 in 2013 and $572,985 in 2012) are expensed as incurred.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Shipping Costs – The costs of shipping
product to our customers ($3,244,487 in 2013 and $3,318,917 in 2012) are included in selling, general and administrative expenses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 16pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Advertising Costs – The Company expenses the production
costs of advertising the first time that the related advertising takes place. Advertising costs ($1,484,782 in 2013 and $1,521,464
in 2012) are included in selling, general and administrative expenses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in">Subsequent Events - The
Company has evaluated events and transactions subsequent to December 31, 2013 through the date the consolidated financial statements
were included in this Form 10-K and filed with the SEC.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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. At December 31, 2013, 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 2013 and 2012, the Company had two
customers that individually exceeded <font style="color: black">10% of consolidated net sales. Net sales to these customers amounted
to approximately 16% and 15% in 2013 and approximately 17% and 12% in 2012. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Recently Issued Accounting Standards</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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. The Company adopted this
standard for reporting periods beginning after December 15, 2012. The adoption of this accounting standard has not had an impact
on our consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt">Inventories consisted of:</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">Finished goods</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">26,004,042</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">28,819,060</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Work in process</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">186,507</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">71,285</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Materials and
supplies</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">2,028,333</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,401,775</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">28,218,883</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">30,292,120</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"><font style="font-weight: normal"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt">Intangible assets consisted of:</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%"><font style="font-size: 9pt">Patents</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">2,054,316</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,982,918</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">Trademarks</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">632,458</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">601,716</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Pac-Kit Tradename, Customer List</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">1,500,000</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">1,500,000</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">C-Thru, Customer
List</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,050,000</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,050,000</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,236,774</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,134,634</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">accumulated
amortization</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,164,877</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">894,233</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">4,071,897</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">4,240,401</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"><font style="font-weight: normal"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">Customer rebates</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">3,277,416</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">3,404,720</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Remediation liability</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">39,044</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">123,587</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Pension liability</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">183,034</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">900,291</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Other</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,873,695</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,732,940</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">5,373,188</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">6,161,538</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 30.8pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Asset Category</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">Equity Securities</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 14%; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">70%</font></td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 14%; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">70</font>%</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Fixed Income Securities</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 9pt">29</font>%</td><td style="text-align: left"> </td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font-size: 9pt">29%</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Other Securities / Investments</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">1</font>%</td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">1%</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt">Total</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">100</font>%</td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"> </td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">100%</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2013</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Level 1</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Level 2</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Level 3</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Total</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left"><font style="font-size: 8pt">Money Market Fund</font></td><td style="width: 3%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">8,322</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 3%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">—  </font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 3%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">—  </font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td><td style="width: 3%"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 10%; text-align: right"><font style="font-size: 8pt">8,322</font></td><td style="width: 1%; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Acme United Common Stock</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">149,000</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">—  </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">—  </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">149,000</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">Equity Common and Collected Funds</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">—  </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">1,054,416</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">—  </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt">1,054,416</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Fixed Income Common and Collected Funds</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">—  </font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">491,864</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">—  </font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">491,864</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 8pt">157,322</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 8pt">1,546,280</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 8pt">—  </font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 8pt">1,703,602</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left; border-bottom: Black 1pt solid">2012</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 1</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 2</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 3</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Total</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left">Money Market Fund</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">19,609</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">19,609</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Acme United Common Stock</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">110,400</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">110,400</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Equity Common and Collected Funds</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">811,113</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">811,113</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Fixed Income Common and Collected Funds</td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">384,280</td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"> </td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">384,280</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double">Total</td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"> </td>
<td style="border-bottom: Black 3pt double; text-align: left">$</td><td style="border-bottom: Black 3pt double; text-align: right">130,009</td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"> </td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"> </td>
<td style="border-bottom: Black 3pt double; text-align: left">$</td><td style="border-bottom: Black 3pt double; text-align: right">1,195,393</td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"> </td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"> </td>
<td style="border-bottom: Black 3pt double; text-align: left">$</td><td style="border-bottom: Black 3pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"> </td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"> </td>
<td style="border-bottom: Black 3pt double; text-align: left">$</td><td style="border-bottom: Black 3pt double; text-align: right">1,325,402</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font-size: 9pt">Assumptions used to determine benefit obligation:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">  Discount rate</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">3.78</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt">%</font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">2.99</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Changes in benefit obligation:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Benefit obligation at beginning of year</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">(2,225,693</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">(2,259,522</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Interest cost</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(64,649</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(85,108</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Service cost</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(40,000</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(36,000</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Actuarial gain (loss)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">51,022</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(137,609</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Benefits and
plan expenses paid</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">392,684</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">292,546</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Benefit obligation
at end of year</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(1,886,636</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(2,225,693</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Changes in plan assets:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Fair value of plan assets at beginning of year</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">1,325,402</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">1,246,736</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Actual return on plan assets</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">288,429</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">149,717</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Employer contribution</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">482,455</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">221,495</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Benefits and
plan expenses paid</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(392,684</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(292,546</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Fair value
of plan assets at end of year</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,703,602</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,325,402</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt">Funded status</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">(183,034</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">(900,291</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 2.5pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 2.5pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font-size: 9pt">Assumptions used to determine net periodic benefit cost:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; text-align: left"><font style="font-size: 9pt">  Discount rate</font></td><td style="width: 8%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 12%; text-align: right"><font style="font-size: 9pt">2.99</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt">%</font></td><td style="width: 8%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 12%; text-align: right"><font style="font-size: 9pt">3.99</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">  Expected return on plan assets</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">6.00</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">%</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">8.25</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Components of net benefit expense:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Interest cost</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">64,649</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">85,109</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Service cost</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">40,000</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">36,000</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Expected return on plan assets</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(69,439</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(94,765</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Amortization of prior service costs</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">9,154</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">9,154</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Amortization of actuarial loss</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">141,171</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">135,759</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt">Net periodic benefit cost</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">185,535</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">171,257</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">Balance at beginning of the year</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,700,089</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,762,345</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Change in net loss</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(270,011</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">82,657</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Amortization of actuarial loss</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(141,173</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(135,759</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">Amortization of prior service cost</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(9,154</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(9,154</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">     Change recognized
in other comprehensive income</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(420,338</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(62,256</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 9pt">Total recognized in other comprehensive income</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,279,751</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,700,089</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">Net actuarial loss</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,258,731</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,669,914</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">Prior service cost</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">21,020</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">30,175</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"><font style="font-size: 9pt">Total</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,279,751</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,700,089</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 76%; text-align: left; vertical-align: bottom"><font style="font-size: 9pt">2014</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">256,000</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">2015</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">239,000</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">2016</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">223,000</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">2017</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">205,000</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">2018</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">187,000</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">Years
2019 - 2023</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">691,000</font></td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">Current:</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 58%; text-align: left; vertical-align: bottom; padding-left: 11pt"><font style="font-size: 9pt">Federal</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">899,928</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">843,812</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: left; vertical-align: bottom; padding-left: 11pt"><font style="font-size: 9pt">State</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">118,092</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">115,111</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom; padding-left: 11pt"><font style="font-size: 9pt">Foreign</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">539,162</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">523,752</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,557,182</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,482,675</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: left; vertical-align: bottom"><font style="font-size: 9pt">Deferred:</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: left; vertical-align: bottom; padding-left: 11pt"><font style="font-size: 9pt">Federal</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(59,240</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(31,374</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: left; vertical-align: bottom; padding-left: 11pt"><font style="font-size: 9pt">State</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(6,596</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(4,685</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom; padding-left: 11pt"><font style="font-size: 9pt">Foreign</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(360</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">1,199</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(66,196</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(34,860</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,490,986</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,447,815</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; text-align: left"><font style="font-size: 9pt">United States</font></td><td style="width: 8%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 12%; text-align: right"><font style="font-size: 9pt">2,306,909</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 8%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 12%; text-align: right"><font style="font-size: 9pt">2,169,451</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Foreign</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,186,982</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">2,827,595</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">5,493,891</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">4,997,046</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Federal income taxes at 34% statutory rate</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,867,923</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">1,698,996</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">State and local taxes, net of federal income tax effect</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">73,587</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">75,697</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Permanent items</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">61,750</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">79,892</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Foreign tax rate difference</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(515,729</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(460,351</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 0pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Change in deferred income tax valuation allowance</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,455</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">53,581</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px; border-bottom: Black 3pt double"><font style="font-size: 9pt"> Provision for income
taxes</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,490,986</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,447,815</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt">Deferred income tax liabilities:</font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left; padding-bottom: 1pt; padding-left: 0pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Plant, property and equipment</font></td><td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">450,705</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="width: 5%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">413,160</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">450,705</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">413,160</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Deferred income tax assets:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Asset valuations</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">508,686</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">543,002</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Contribution carryforward</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">110,700</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">157,297</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Operating loss carryforwards and credits</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">2,205,244</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">2,201,789</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Pension</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">178,908</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">448,579</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Foreign tax credit</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">43,575</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">43,575</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Other</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">885,185</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">591,066</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,932,298</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,985,308</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Net deferred income tax asset before valuation allowance</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">3,481,593</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">3,572,148</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Valuation allowance</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(2,205,244</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(2,201,789</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt">Net deferred income tax asset</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,276,349</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,370,359</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><font style="font-size: 9pt"> </font></p>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center; vertical-align: bottom"><font style="font-size: 9pt"><b><u>2013</u></b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center"></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td> </td>
<td colspan="3"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">(000's omitted)</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">United
States</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">Canada</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">Europe</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font-size: 9pt">Consolidated</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 38%; text-align: left"><font style="font-size: 9pt">Net sales</font></td>
<td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 9pt">73,608</font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 9pt">8,092</font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 9pt">7,877</font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt">$</font></td>
<td style="width: 12%; text-align: right"><font style="font-size: 9pt">89,577</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Operating income</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,082</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">557</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">240</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">5,879</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">Assets</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">57,068</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,329</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,682</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">68,079</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Additions to property, plant and equipment</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">4,500</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">47</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">45</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">4,592</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Depreciation and amortization</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">845</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">9</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">80</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">934</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; text-align: center; vertical-align: bottom"><font style="font-size: 9pt"><b><u>2012</u></b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="font-weight: bold; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; text-align: right"></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Net sales</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">67,510</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">8,808</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">8,052</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">84,370</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Operating income (loss)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">4,394</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">775</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">192</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">5,361</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">Assets</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">56,115</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">6,107</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5,606</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">67,828</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Additions to property, plant and equipment</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">656</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">14</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">11</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">681</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Depreciation and amortization</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">980</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">36</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">73</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td> </td>
<td style="text-align: right"><font style="font-size: 9pt">1,089</font></td></tr>
</table>
<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font-size: 9pt"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left"><font style="font-size: 9pt">Total operating income</font></td><td style="width: 1%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">5,879</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">5,361</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Interest expense, net</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">350</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">264</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">Other expense, net</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">35</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">99</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">Consolidated income before taxes</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">5,494</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">4,998</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt"><font style="font-size: 9pt">Net Income</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 9pt">4,003</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 9pt">3,549</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt">Revenues</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left; padding-left: 11pt"><font style="font-size: 9pt">United States</font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">72,676</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 5%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; text-align: right"><font style="font-size: 9pt">66,694</font></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 11pt"><font style="font-size: 9pt">International:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 22pt"><font style="font-size: 9pt">Canada</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">8,092</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">8,808</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 22pt"><font style="font-size: 9pt">Europe</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">7,877</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">8,052</font></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 22pt"><font style="font-size: 9pt">Other</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">932</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">816</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 11pt"><font style="font-size: 9pt">Total International</font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">16,901</font></td><td style="padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">17,676</font></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 11pt"><font style="font-size: 9pt">Total Revenues</font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 9pt">89,577</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font-size: 9pt">84,370</font></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Options outstanding at the</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; text-align: left; padding-left: 9px"><font style="font-size: 9pt">beginning of the year</font></td><td style="width: 8%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 12%; text-align: right"><font style="font-size: 9pt">1,118,688</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 8%"><font style="font-size: 9pt"> </font></td>
<td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 12%; text-align: right"><font style="font-size: 9pt">943,000</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Options granted</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">220,500</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">215,438</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Options forfeited</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(27,475</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">(6,250</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Options exercised</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(75,650</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(33,500</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Options outstanding at</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px; border-bottom: Black 3pt double"><font style="font-size: 9pt">the
end of the year</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,236,063</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">1,118,688</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Options exercisable at the</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px; border-bottom: Black 3pt double"><font style="font-size: 9pt">end
of the year</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">771,208</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">672,125</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt">Common stock
available for future grants at the end of the year</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">38,975</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">61,500</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Weighted average exercise price per share:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font-size: 9pt">Granted</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">13.38</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">10.47</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 11pt"><font style="font-size: 9pt">Forfeited</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">12.17</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">6.98</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font-size: 9pt">Exercised</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">6.89</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">5.13</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 11pt"><font style="font-size: 9pt">Outstanding</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">11.61</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">10.96</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 11pt"><font style="font-size: 9pt">Exercisable</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">11.64</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">11.65</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td colspan="8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b>Options
Outstanding</b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Options
Exercisable</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Range
of
Exercise
Prices</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Number
Outstanding</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted-
Average
Remaining
Contractual
Life
(Years)</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted-
Average
Exercise
Price</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Number
Exercisable</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"><b>Weighted-
Average
Exercise
Price</b></font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"><b> </b></font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 23%; text-align: left; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">$5.12
to $8.51</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">128,250</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">5</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">7.83</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 5%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">128,250</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="width: 2%"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 2%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif">$</font></td><td style="width: 10%; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">7.83</font></td><td style="width: 1%; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">$8.52
to $10.21</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">401,563</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">7</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">9.85</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">232,583</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">9.83</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">$10.22
to $13.62</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">316,500</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: center; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">7</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">11.76</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">184,125</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">12.27</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: left; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">$13.63
to $17.02</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">389,750</font></td><td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><font style="font: 8pt Times New Roman, Times, Serif">5</font></td><td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">14.61</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">226,250</font></td><td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right; border-bottom: Black 1pt solid"><font style="font: 8pt Times New Roman, Times, Serif">15.16</font></td><td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">1,236,063</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="border-bottom: Black 2.5pt double; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="border-bottom: Black 2.5pt double; text-align: right"><font style="font: 8pt Times New Roman, Times, Serif">771,208</font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td>
<td style="text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="text-align: right"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td><td style="padding-bottom: 2.5pt; text-align: left"><font style="font: 8pt Times New Roman, Times, Serif"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 10pt Times New Roman, Times, Serif">
<td nowrap="nowrap" style="vertical-align: bottom; width: 41%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt"> </font></td>
<td style="vertical-align: top; width: 4%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt"> </font></td>
<td style="vertical-align: bottom; width: 27%; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-top: Black 1pt solid"><font style="font-size: 9pt"><b>2013</b></font></td>
<td style="vertical-align: bottom; width: 28%; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; border-bottom: Black 1pt solid; border-top: Black 1pt solid"><font style="font-size: 9pt"><b>2012</b></font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">Expected
life in years</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt"> </font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">5</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">5</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: White">
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">Interest
rate</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt"> </font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">0.70
– 1.45%</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">0.60
– .92%</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">Volatility</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt"> </font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">.317-.328</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">.327-.333</font></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; background-color: White">
<td nowrap="nowrap" style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">Dividend
yield</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt"> </font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">2.10%
- 2.70%</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><font style="font-size: 9pt">2.50%
- 2.70%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 9pt">Numerator:</font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td colspan="3"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 60%; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">   Net income</font></td><td style="width: 1%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">4,002,905</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="width: 5%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 14%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,549,231</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">Denominator:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">   Denominator for basic earnings per share:</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">      Weighted average shares outstanding</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">3,167,764</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">3,115,574</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">   Effect of dilutive employee
stock options</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">115,698</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">16,935</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">   Denominator for dilutive
earnings per share</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,283,461</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">3,132,510</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><font style="font-size: 9pt">   Basic earnings per share</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">1.26</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">1.14</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 9pt">   Dilutive earnings per share</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">1.22</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">1.13</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Foreign
currency translation adjustment</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Net
prior service credit and actuarial losses</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Total</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 50%; text-align: left"><font style="font-size: 9pt">Balances, December 31, 2011</font></td><td style="width: 2%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 9pt">51,111</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt"> </font></td><td style="width: 3%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 9pt">(1,089,429</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt">)</font></td><td style="width: 3%"><font style="font-size: 9pt"> </font></td>
<td style="width: 2%; text-align: left"><font style="font-size: 9pt">$</font></td><td style="width: 11%; text-align: right"><font style="font-size: 9pt">(1,038,319</font></td><td style="width: 1%; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Change in net prior service credit</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt"><font style="font-size: 9pt"> </font></td>
<td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt"><font style="font-size: 9pt"> </font></td>
<td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">   and actuarial losses, net of tax</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">57,191</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">57,191</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Translation adjustment</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">194,235</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">194,235</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">Balances, December 31, 2012</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">245,346</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">(1,032,238</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt">$</font></td><td style="text-align: right"><font style="font-size: 9pt">(786,893</font></td><td style="text-align: left"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 9pt">Change in net prior service credit</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt"><font style="font-size: 9pt"> </font></td>
<td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt"><font style="font-size: 9pt"> </font></td>
<td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt"> </font></td><td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 9pt">   and actuarial losses, net of tax</font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt"> </font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">241,365</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td><td><font style="font-size: 9pt"> </font></td>
<td style="text-align: left"><font style="font-size: 9pt"> </font></td><td style="text-align: right"><font style="font-size: 9pt">241,365</font></td><td style="text-align: left"><font style="font-size: 9pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Translation adjustment</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(138,993</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 9pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 9pt">(138,993</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 9pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt">Balances, December 31, 2013</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">106,353</font></td><td style="padding-bottom: 2.5pt; text-align: left; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">(790,873</font></td><td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">)</font></td><td style="padding-bottom: 2.5pt; border-bottom: Black 3pt double"><font style="font-size: 9pt"> </font></td>
<td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">$</font></td><td style="border-bottom: Black 3pt double; text-align: right"><font style="font-size: 9pt">(684,521</font></td><td style="border-bottom: Black 3pt double; text-align: left"><font style="font-size: 9pt">)</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b></b></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="21"><font style="font-size: 8pt">Quarters (000's omitted, except per share data)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td colspan="3"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2013</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">First</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Second</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Third</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Fourth</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td colspan="3" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Total</font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Net sales</font></td><td style="width: 2%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">17,651</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="width: 2%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">28,412</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="width: 2%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">22,135</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="width: 2%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">21,379</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="width: 2%; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">89,577</font></td><td style="width: 1%; padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Cost of goods sold</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">11,224</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">18,330</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">14,195</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">14,004</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">57,753</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Net income</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">309</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">2,211</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">959</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">524</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">4,003</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 8pt">Basic earnings per share</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.10</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.70</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.30</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.16</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">1.26</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">Diluted earnings per share</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.10</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.68</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.29</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.15</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">1.22</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Dividends per share</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.07</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.08</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.08</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.08</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.31</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt"> </font></td><td style="text-align: right"><font style="font-size: 8pt"> </font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">2012</font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">First</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">Second</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">Third</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">Fourth</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><font style="font-size: 8pt">Total</font></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Net sales</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">16,878</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">27,594</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">20,363</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">19,535</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt">$</font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">84,370</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Cost of goods sold</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">10,934</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">17,773</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">12,937</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">12,979</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">54,623</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt">Net income</font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">260</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">2,061</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">798</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">430</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td><td style="padding-bottom: 1pt; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td>
<td style="border-bottom: Black 1pt solid; text-align: left"><font style="font-size: 8pt"> </font></td><td style="border-bottom: Black 1pt solid; text-align: right"><font style="font-size: 8pt">3,549</font></td><td style="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td><font style="font-size: 8pt">Basic earnings per share</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.08</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.66</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.26</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.14</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">1.14</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"><font style="font-size: 8pt">Diluted earnings per share</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.08</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.66</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.26</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.13</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">1.13</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"><font style="font-size: 8pt">Dividends per share</font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.07</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.07</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.07</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.07</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td><td><font style="font-size: 8pt"> </font></td>
<td style="text-align: left"><font style="font-size: 8pt">$</font></td><td style="text-align: right"><font style="font-size: 8pt">0.28</font></td><td style="text-align: left"><font style="font-size: 8pt"> </font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse">
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
<td style="width: 38%; border-bottom: windowtext 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 9pt"><b>Balance
at <br />
December 31, 2012</b></font></td>
<td style="width: 22%; border-bottom: windowtext 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 9pt"><b>Payments</b></font></td>
<td style="width: 40%; border-bottom: windowtext 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 9pt"><b>Balance
at <br />
December 31, 2013</b></font></td></tr>
<tr style="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 9pt">$
124</font></td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 9pt">$  (85)</font></td>
<td nowrap="nowrap" style="border-bottom: windowtext 1.5pt double; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 9pt">$  39</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left; vertical-align: bottom">Assets:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 37%; text-align: left; vertical-align: bottom; padding-left: 22pt">Inventory</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right">423</td><td style="width: 50%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; vertical-align: bottom; padding-left: 22pt; padding-bottom: 1pt">Intangible Assets</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">1,050</td><td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; vertical-align: bottom; padding-left: 22pt; padding-bottom: 2.5pt">Total assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">1,473</td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"> </p>
5000