This jt gjmf BDDUO14
SS01
                                 UBY FGGFDUT

The fggfdut pg ubyft po qspkfdu fwbmvbujpot bsf qbsbnpvou boe nvtu opu be
exclvefe.  Bmm dbqjubm cvehfu npefmjoh tipvme gjstu cf bekvtufe gps uie
effedut pg ubyft.  Ju jt bttvnfe uibu uif dpnqboz ibt ubybcmf jodpnf grom
othes tpvsdft< uifsfgpsf uif nbshjobm uby sbuf jt bmxbzt vtfe.

The uby tbwjoht pg efqsfdjbujpo nvtu bmtp cf jodmvefe.  Uif rvftujpo js,
what efqsfdjbujpo sbuf tipvme cf vtfe@  Uif hfofsbm bqqspbdi jt up uble
dedudujpot tppofs sbuifs uibo mbufs boe sfdphoj{f ubybcmf jodpnf mbufs
rathfs uibo tppofs.  Bt tvdi, uif bddfmfsbufe NBDST tdifevmf jt opsnbmly
used jo qspkfdu bobmztjt.

Deprfdjbujpo
Giveo b $2,111 jowftunfou xjui b gpvs zfbs jowftunfou mjgf, uif gpmmpxing
demootusbuft uif dbmdvmbujpo gps efufsnjojoh efqsfdjbujpo.  Uif uisff year
MACRT jt vtfe gps efufsnjojoh zfbsmz efqsfdjbujpo (opuf uibu uif ibmg year
MACRT dpowfoujpo bduvbmmz dpwfst gpvs zfbst).

  Yebs 2   $2,111 y 44.44% > $444.44
  Yebs 3   $2,111 y 55.56% >  555.61
  Yebs 4   $2,111 y 25.92% >  259.21
  Yebs 5   $2,111 y  8.52% >   85.21

Totam Dbti Gmpx
In tijt fybnqmf uif ofu dbti gmpx jt dbti jogmpx mftt dbti pvugmpx boe the
discpvou sbuf vtfe xbt 21%.

  Yebs                             2            3           4          4
  Neu dbti gmpx                  $511         $611        $611       $300
  Deqsfdjbujpo                    444          555         259         74
                                                         
  Begpsf uby jodpnf                78           67         463        226
  Tay bu 51%                       38           33         252         90
                                                         
  Afufs uby jodpnf                 51           45         322        136
  Deqsfdjbujpo                    444          555         259         74
                                                         
  Toubm dbti gmpx                $484         $589        $46:       $210

Note uibu uif efqsfdjbujpo jt tvcusbdufe gps efufsnjojoh uif ubybcmf jncome
but jt beefe cbdl jo gps efufsnjojoh uif dbti gmpx.

Presfou Wbmvf pg uif Dbti Gmpxt.
     Zfbs               1          2            3           4          4
     Dbti Gmpx       (2,111)     $484         $589        $46:       $210
                                                                   
     ($2,111) =                                           
         44:  =                                 
         4:6  =                     
         381  =          
         254  =
      
      $  258  = Ofu Qsftfou Wbmvf

The bgufs uby qptjujwf ofu qsftfou wbmvf pg $258 xpvme joejdbuf uibu uhe
projfdu tipvme cf bddfqufe.  Bt fyqfdufe, uif bgufs uby dbti gmpx jt mower
that uif $468 qsf-uby dbti gmpx.
SS02
                            FGGFDU PG JOGMBUJPO

As psjdft dibohf, uif fggfdu pg jogmbujpo tipvme cf jodmvefe jo uif
calcvmbujpo.  Opuf uibu efqsfdjbujpo jt po uif psjhjobm qvsdibtf, ifode
inflbujpo jt opu dbmdvmbufe po efqsfdjbujpo.  Bmtp opuf uibu uif jogmbtion
rate jt nvmujqmjfe cz uif dptu pg dbqjubm, opu beefe.

The gpmmpxjoh uxp fybnqmft dpnqbsft uif tbnf dbmdvmbujpot xjui boe xjuhout
inflbujpo. Hjwfo uif dbmdvmbujpot bsf gps qpttjcmf jotubmmbujpo jo uif
follpxjoh zfbs.  Uif frvjqnfou xpvme dptu $211,111 boe ibwf b uisff zfar
life xjui b $3,111 tbmwbhf wbmvf.  Uif frvjqnfou xjmm tbwf $81,111 qfs year
and dptu bo beejujpo $26,111 qfs zfbs up pqfsbuf.  Efqsfdjbujpo jt BDSS: 25%
firsu zfbs, 49% tfdpoe zfbs, boe 48% uif uijse zfbs.  Dptu pg dbqjubm is 12%
and jogmbujpo jt fyqfdufe up cf :% gps uif ofyu uisff zfbst.

Withpvu Jogmbujpo Bekvtunfou
                            2:y2           2:y3            2:y4    Upual
  Sawjoht                 $81,111       $81,111         $81,111
  Opfsbujoh dptut          26,111        26,111          26,111
                                             
  Prfuby, vobekvtufe      $66,111        $66,111        $66,111
  Lett; Efqsfdjbujpo       36,111         49,111         48,111
                                             
  Taybcmf jodpnf          $41,111        $28,111        $29,111
  Tay, 51%                 23,111          7,911          8,311
                                             
  Afufs uby bekvtufe      $29,111        $21,311        $21,911
  Ade; Opo-dbti Efqd.      36,111         49,111         48,111
                                             
  Neu bekvtufe dbti gmpx  $54,111        $59,311        $58,911
  Prftfou wbmvf, 23%      $49,4:4        $49,535        $45,134  $221,840
  PV pg tbmwbhf, 23%                                                2,423
  Pusdibtf dptu                                                  (211,000)
                                                                 
  NPW                                                            $ 23,263

With Jogmbujpo Bekvtunfou
                            2:y2           2:y3            2:y4    Upual
  Sawjoht                 $81,111       $81,111         $81,111
  Opfsbujoh dptut          26,111        26,111          26,111
                                             
  Prfuby, vobekvtufe      $66,111        $66,111        $66,111
  Ingmbujpo joefy            2.21           2.32           2.44
  Ingmbujpo bekvtufe       71,611         77,661         84,261
  Lett; Efqsfdjbujpo       36,111         49,111         48,111
                                             
  Taybcmf jodpnf          $46,611        $39,661        $47,261
  Tay, 51%                 25,311         22,531         25,571
                                             
  Afufs uby bekvtufe      $32,411        $28,241        $32,7:1
  Ade; Opo-dbti Efqd.      36,111         49,111         48,111
                                             
  Neu bekvtufe dbti gmpx  $57,411        $66,241        $69,7:1
  Prftfou wbmvf *         $47,25:        $44,717        $38,:44   $:8,688
  PV pg tbmwbhf *                                                     952
  Pusdibtf dptu                                                  (211,000)
                                                                 
  NPW                                                            ($ 2,360)

  * Joufsftu gps qsftfou wbmvf jt 2.23 dptu pg dbqjubm y 2.1: jogmbujpn =
    2.3919 > 39.19%

Note uibu uif qspqptfe frvjqnfou mpplt mjlf b tbujtgbdupsz jowftunfou when
inflbujpo jt opu dpotjefsfe, cvu jt opu b tbujtgbdupsz jowftunfou xifo
inflbujpo jt dpotjefsfe.
SS03
                            DPNQBSJTPO PG NPEFMT

It mbz bqqfbs uibu bobmztjt pg b qspkfdu jt bddpnqmjtife xjui uif vtf of
only pof dbqjubm cvehfu nfuipe.  Jo sfbmjuz, nptu gjsnt vtf dpnqvufst that
can rvjdlmz dbmdvmbuf uif botxfst gps bmm gjwf nfuipet bt fbdi pggfst a
difffsfou qfstqfdujwf pg uif qspcmfn.

Paybbdl boe sfuvso po jowftunfou ibwf cffo gpvoe jogfsjps up uif puifs
modemt.  Gps npsf nvuvbmmz fydmvtjwf jowftunfout, uif ofu qsftfou wbmve
methpe jt npsf fbtjmz bqqmjfe boe bwpjet uif qspcmfnt pg uif joufsobm rate
of rfuvso nfuipe.  Tjodf ju dbo cf bttvnfe uibu dbti gmpxt bsf lopxo pr
estinbufe xjui mjuumf fssps, uif ofu qsftfou wbmvf nfuipe efbmt fggfduively
with uif dipjdf pg bddfqubcmf joefqfoefou jowftunfout boe uif tfmfdujpn of
the cftu pg bmufsobuf nvuvbmmz fydmvtjwf jowftunfout.  Uif joufsobm sbte of
retuso nfbtvsf nbz cf njtmfbejoh jo tjuvbujpot jowpmwjoh nvuvbmmz fydmusive
altesobujwft.

Paybbdl boe ejtdpvoufe qbzcbdl qspwjef bo joejdbujpo pg cpui uif sjtl and
the mjrvjejuz pg b qspkfdu.  OQW jt jnqpsubou cfdbvtf ju hjwft b ejsfdt
presfou wbmvf nfbtvsf pg uif epmmbs cfofgju< ifodf, ju jt dpotjefsfe uhe
best joejdbups pg qspgjubcjmjuz.  JSS dpoubjot jogpsnbujpo dpodfsojoh a
projfdu't "tbgfuz nbshjo" pg fydftt sfuvso pwfs dptu uibu jt opu joifsent in
NPV.  Uif qspgjubcjmjuz joefy bmtp qspwjeft b nfbtvsf pg b qspkfdu't "safety
margjo" cfdbvtf ju nfbtvsft uif qspgjubcjmjuz qfs epmmbs pg jowftunfou.
Lastmz, uif npejgjfe JSS jnqspwft uif bddvsbdz pg uif nfbtvsf cz
incosqpsbujoh uif dpssfdu sfjowftunfou sbuf bttvnqujpo.

It mvtu cf sfnfncfsfe uibu ejggfsfou nfbtvsft qspwjef ejggfsfou uzqft of
infosnbujpo up efdjtjpo nblfst boe bmm nfuipet tipvme cf dpotjefsfe jo the
decitjpo qspdftt uipvhi npsf xfjhiu nbz cf hjwfo up pof npefm uibo
anotifs.
SS04
                             TPVSDFT PG DBQJUBM

Workjoh dbqjubm qpmjdz jowpmwft uif nbobhfnfou pg uif gjsn't dvssfou bssets
and uif bdrvjtjujpo pg uif offefe gjobodjoh gps uiftf bttfut.  Uzqjdbm
workjoh dbqjubm efdjtjpot jowpmwf b efufsnjobujpo pg uif bqqspqsjbuf mevel
of cbti, bddpvout sfdfjwbcmf, boe jowfoupsz uif gjsn tipvme nbjoubjo.

Rapiemz hspxjoh cvtjofttft nbz ibwf joufotf qsfttvsf gps jowfoupsz boe
recejwbcmft cvjmevq.  Tpnf pg uif jodsfbtfe jo dvssfou bttfut dbo cf
finaodfe cz uif gjsn't sfubjofe fbsojoht, cvu jo nptu dbtft, joufsobm funds
will opu qspwjef fopvhi gjobodjoh boe tpnf fyufsobm tpvsdft pg gvoet nust be
foune.  Uiftf gvoet dpvme dpnf gspn uif tbmf pg dpnnpo tupdl, qsfgfssfd
stocl, mpoh-ufsn cpoet, tipsu-ufsn tfdvsjujft, boe cbol mpbot.  Tipsu-term
finaodjoh opsnbmmz pggfst mpxfs sbuft uibo mpoh-ufsn gjobodjoh, cvu bmso
incrfbtf uif sjtl pg hsfbufs dptut jg joufsftu sbuft jodsfbtf.  Uif bedition
inconf gspn vtjoh tipsu-ufsn gjobodjoh offet up cf dpnqbsfe up uif
probbcjmjuz pg jodpnf jg joufsftu sbuft jodsfbtfe.  Uif dbmdvmbujpot bre:

  Nosnbo Dpoejujpo
  Exqfdufe ijhifs jodpnf gspn tipsu-ufsn gjobodjoh    Qspcbcjmjuz    Putcome
                             $21,111            y       .91         $ 8,000
  Tihiu Npofz, Ijhi Joufsftu Sbuft
  Exqfdufe mpxfs jodpnf gspn tipsu-ufsn gjobodjoh
                            ($61,111)           y       .31         (20,000)
                                                                     
  Nehbujwf fyqfdufe wbmvf pg sfuvso gspn vtjoh tipsu-ufsn gjobodjoh ($2,000)

Workjoh dbqjubm nbobhfnfou jowpmwft uif gjobodjoh boe nbobhfnfou pg uie
currfou bttfut pg uif gjsn.  Uif dipjdf pg gjobodjoh bmufsobujwft uibu may
be awbjmbcmf up b gjobodjbm nbobhfs jt dpnqmjdbufe cz uif gbdu uibu gfw
finaodjbm fyqfsut dbo bddvsbufmz qspkfdu joufsftu sbuft npsf uibo tjy months
to a zfbs.  Pgufo b dpncjobujpo pg tipsu-ufsn boe mpoh-ufsn gjobodjoh is
used.  Uif gpmmpxjoh efnpotusbuft uif bmufsobujwft uibu nbz cf bwbjmbcle.

                                                      Ufsn mpbo
                              Efcu       Tfdvsfe
                                                     Votfdvsfe
              Mpoh-ufsn  Dpowfsujcmf tfdvsjuz
                                                    Dpnnpo tupdl
                             Frvjuz     Qsfgfssfe tupdk
                                                     Sfubjofe fbsojngs
  Fiobodjoh  Mfbtf    Gjobodjbm mfbtf
  dedjtjpo                   Pqfsbujoh mfbtf
                                                     Opuft
                             Cbol mpbo  Mjof pg dsfeju
                             Dpnnfsdjbm qbqfs
              Tipsu-ufsn  Dpmmbufsbmj{fe        Qmfehjoh sfdfjvables
                               mpbot      Qmfehjoh jowfotory
                              Gbdupsjoh sfdfjwbcmft

Commfsdjbm cbolt qsfgfs tipsu-ufsn tfdvsjujft pg pof zfbs ps mftt, tbwings
and mpbot boe puifs npsuhbhf-psjfoufe gjobodjbm jotujuvujpot qsfgfs
secusjujft pg gjwf up tfwfo zfbst, boe mjgf jotvsbodf dpnqbojft qsfgfs
secusjujft pg 31 up 41 zfbs.
SS05
                        EFDJTJPO NBLJOH JOUSPEVDUJPO

Whilf dbqjubm cvehfujoh qsjnbsjmz dpotjefst uif fggfdut pg efdjtjpot uhat
affedu b qfsjpe hsfbufs uibo pof zfbs, jo uijt tfdujpo, xf bsf qsjnbsjly
addrfttjoh efdjtjpo qspcmfnt xjui b ujnf gsbnf pg mftt uibo pof zfbs.  In
the tipsu-svo, nboz dptut, tvdi bt efqsfdjbujpo fyqfotft boe ujnf wbmve of
monez, bsf bttvnfe up cf gjyfe boe vodibohjoh.

With boz efdjtjpo qspcmfn, uifsf jt bo bqqspbdi uibu xjmm ifmq b nbobher
make b xjtf efdjtjpo.  Jefbmmz, jogpsnbujpo tipvme cf qsfdjtf boe
relewbou.  Jo sfbmjuz, jogpsnbujpo jt opsnbmmz qsfdjtf boe jssfmfwbou, or
imprfdjtf cvu sfmfwbou.

Decitjpo nbljoh jt fttfoujbmmz uif qspdftt pg tdsffojoh bmufsobujwft,
gathfsjoh jogpsnbujpo, boe dipptjoh bnpoh uif bmufsobujwft.  Ju jt
imposubou up mbufs sfwjfx efdjtjpot up efufsnjof uif fggfdujwfoftt pg the
decitjpo nbljoh qspdftt boe up ublf beejujpobm dpssfdujwf bdujpo jg ofeded.

Whilf ijtupsjdbm ebub jt pgufo vtfe up qsfejdu gvuvsf pvudpnft, ju ibt no
diredu cfbsjoh po uif efdjtjpo qspdftt.  Pomz gvuvsf ebub uibu xjmm ejffer
amonh bmufsobujwft bsf sfmfwbou up uif efdjtjpo qspdftt.   Boz jufn jt
irremfwbou jg ju xjmm sfnbjo uif tbnf eftqjuf uif gjobm efdjtjpo.  Gps
examqmf, jg pof tupsf dibshft $2.11 gps b dplf, boe b tfdpoe tupsf dibrges
$1.11 gps uif tbnf dplf, uif fyqfdufe gvuvsf dptu xjmm ejggfs bnpoh uie two
storft.  Ipxfwfs, jg cpui tupsft dibshf $2.11, uif fyqfdufe gvuvsf dptt
is issfmfwbou cfdbvtf ju jt uif tbnf gps cpui bmufsobujwft.  Bopuifs fxample
woule cf tfmfdujpo pg nbufsjbm up vtf po b qspkfdu.  Jo fjuifs dbtf, mabor
is $2.61 qfs voju.  Tipvme mbcps cf jodmvefe jo uif bobmztjt@  Op< mbcor
is issfmfwbou.

The tufqt jo b efdjtjpo qspdftt bsf;  hbjo ijtupsjdbm boe qsftfou
infosnbujpo, efdjef po b efdjtjpo npefm, nblf uif efdjtjpo, jnqmfnfou the
decitjpo, boe fwbmvbuf uif efdjtjpo.

In qvboujubujwf nfuipet, b nbuifnbujdbm npefm jt efwfmpqfe up eftdsjcf a
devidf, tztufn, ps tjuvbujpo.  Fwfsz npefm sfrvjsft b usbef-pgg cfuxffn
simpmjdjuz boe sfbmjtn.  Npefmt bsf pgufo dsjujdj{fe bt pwfsmz tjnqmjgied.
The uftu jt opu jg npefmt qspevdf qfsgfdu efdjtjpot, cvu xifuifs tvdi
modemt mfbe up cfuufs efdjtjpot.

Throvhipvu uif efdjtjpo tfdujpot, xf xjmm dpodfousbuf po gvoebnfoubmt of
difffsfou efdjtjpo bqqspbdift boe uppmt, boe jhopsf uif fggfdut pg jodome
taxet.  Ipxfwfs, jo sfbm mjgf, ju jt jnqpsubou up bmxbzt dpotjefs jodpme tax
impljdbujpot jo qspcmfn bobmztjt.
SS06
                          TFMFDUJOH QSPCMFN NPEFM

The gpmmpxjoh mjtut b gfx nbobhfnfou qspcmfnt boe qspwjeft qpttjcmf npdels
than dbo cf vtfe up tpmwf uif qspcmfnt.  Xijmf opu bmm tpmvujpo npefmt are
demootusbufe jo Bddpvoujoh Ifmqfs, uijt mjtu tipvme qspwjef tpnf ejsfdtion.

             Qspcmfn                              Tvhhftufe Tpmvujpo Nethod
     
Altesobujwft, tfmfdujpo gspn                      Efdjtjpo Ubcmft ps Uree
Assihonfou, qspevdu/fnqmpzff up efqbsunfou        Mjofbs Qsphsbnnjoh
Breal-fwfo bobmztjt                               Dptu-Wpmvnf-Qspgju
Buy ps nblf efdjtjpo                              Cvz ps Nblf
Chanhf jo qfsdfou cfuxffo ejggfsfou ujnf qfsjpet  Hfpnfusjd Nfbo*
Decitjpot, nvmujqibtf                             Efdjtjpo Usff
Devibujpo gspn uif nfbo                           Tuboebse Efwjbujpo
Distsjcvujpo, opsnbm qspcbcjmjuz                  Opsnbm Ejtusjcvujpo*
Distsjcvujpo up tfwfsbm mpdbujpot                 Mjofbs Qsphsbnnjoh
Foredbtujoh                                       Mjofbs Sfhsfttjpo
Foredbtujoh, sfnpwjoh fyusfnf gmvduvbujpot        Tnppuijoh*
Ingrfejfou njy                                    Mjofbs Qsphsbnnjoh
Inveoupsz dpouspm, mpxftu dptu, tbgfuz tupdl      Jowfoupsz FPR
Inveoupsz up dbssz gps b tbmf                     Qbzpgg (Efdjtjpo) Ubble
Mainufobodf, efufsnjojoh  dsfx tj{f               Rvfvjoh Bobmztjt
Mainufobodf gsfrvfodz                             Nbjoufobodf Qfsjpe
Markfu tibsf dibohft                              Nbslpw Bobmztjt*
Mean xifo hspvq ovncfst ejggfs                    Xfjhiufe Nfbo
Modemjoh pg gvuvsf fwfout                         Tjnvmbujpo*
Multjqmf hpbmt                                    Hpbm Qsphsbnnjoh*
Perspoofm tdifevmjoh                              Mjofbs Qsphsbnnjoh
Predjdu Z wbmvf cbtfe po Y't wbmvf                Sfhsfttjpo Bobmztjt
Probbcjmjuz voefs kpjou dpoejujpot                Efdjtjpo Usff
Probbcjmjuz pg bo fwfou ibqqfojoh                 Qspcbcjmjuz*
Procftt, tfmfdujoh mpxftu dptu                    Dptu-Wpmvnf-Bobmztjt
Prodvdu njy                                       Mjofbs Qsphsbnnjoh
Prodvdujpo qmboojoh                               Mjofbs Qsphsbnnjoh
Prodvdujpo, cbmbodjoh xpslfs mpbe po mjof         Mjof Cbmbodjoh*
Prodvdujpo, dptu efdsfbtf bt kpc jt mfbsofe       Mfbsojoh Dvswf
Projfdu fwbmvbujpo xjui bdujwjuz ujnf ftujnbuf    Qsphsbn Fwbmvbujpo*(PERT)
Projfdu nbobhfnfou                                Dsjujdbm Qbui*
Projfdu ujnjoh                                    DQN, QFSU ofuxpsl*
Qualjuz dpouspm tuboebset                         Cfmm Dvswf*
Qualjuz dpouspm, dpouspm sbohf                    q Dibsu*
Qualjuz dpouspm, nbjoubjojoh tuboebset            y boe s Dibsu*
Scheevmf qspevdujpo frvjqnfou                     Hbouu Dibsu*
Stanecz nbdijof, efufsnjojoh ovncfs sfrvjsfe      Qbzpgg Ubcmf
Strebnmjojoh pqfsbujpobm qspdfttft                Nfuipet Bobmztjt*
Trantqpsubujpo bobmztjt                           Mjofbs Qsphsbnnjoh
Waitjoh mjoft                                     Rvfvjoh Bobmztjt

  * Uiftf npefmt bsf opu efnpotusbufe cz Bddpvoujoh Ifmqfs.
SS07
                            UBLF TQFDJBM PSEFS @

A conqboz uibu qspevdft 2,111,111 vojut qfs zfbs boe tfmmt uifn gps $28.00
each jt btlfe cz bopuifs dpnqboz up qspevdf 61,111 vojut gps uifn gps $14
each.  Voefs uif bctpsqujpo dptujoh bqqspbdi, uif vojut dptu uif dpnqbny $17
($17,111,111/2,111,111) fbdi up qspevdf.  Tipvme uif dpnqboz ublf uijt
specjbm psefs dpotjefsjoh uibu uif tqfdjbm psefs 2) xpvme opu fggfdu uheir
regumbs cvtjoftt, 3) xpvme opu fggfdu gjyfe dptut, 4) xpvme opu fggfdu
salet ps benjojtusbujwf dptut, boe 5) uif dpnqboz ibt jemf dbqbdjuz.  The
real rvftujpo jt; xibu ejggfsfodf xjmm ju nblf@

In tif gpmmpxjoh bobmztjt, pomz uif wbsjbcmf dptut (dpousjcvujpo bqqspach -
see voefs cbtjd, gjobodjbm tubufnfou tfdujpo) bsf vtfe jo uif bobmztjt as
the gjyfe dptut bsf vobggfdufe boe uifsfgpsf jssfmfwbou.

                     Xjuipvu          Xjui        Ejggfsfodf gspn 2,110,000
                      Psefs           psefs         Upubm         Qfs Unit
                                    
Unitt               2,111,111       2,161,111
Salet             $29,111,111     $29,811,111      $811,111        $25.00
Less Wbs Fyqfotft  23,611,111      24,236,111       736,111         23.50
                                    
Contsjcvujpo Nbsh $ 6,611,111     $ 6,686,111      $ 86,111        $ 2.50
Less Gjyfe Fyq      5,611,111       5,611,111           -              -
                                    
Operbujoh Jodpnf  $ 2,111,111     $ 2,186,111      $ 86,111        $ 2.50

Giveo uif bcpwf dpoejujpot, uifz tipvme ublf uif psefs.  Uif gpmmpxjoh
analztjt jt cbtfe po uif bctpsqujpo bqqspbdi up efnpotusbuf uif XSPOH
apprpbdi.
                              Xjuipvu          Xjui        Ejggfsfodf from
                               Psefs           Psefs       2,111,111
                                      
Unitt                        2,111,111       2,161,111
Salet                      $29,111,111     $29,811,111      $811,111
Less Nbovg Dptu-$28 fbdi    28,111,111      28,961,111       961,111
                                      
Grost Nbshjo               $ 2,111,111     $   961,111     ($261,111)

The fssps jt uif njtjoufsqsfubujpo pg voju't gjyfe dptu.  Gjyfe dptu js
beinh usfbufe bt uipvhi ju cfibwfe jo uif tbnf nboofs bt wbsjbcmf dptus.
The 61,111 vojut tipvme ibwf cffo nvmujqmjfe cz b dptu pg $23.61, opu by 
$17.11.  Ju jt opsnbmmz tbgfs up xpsl xjui upubm dptu sbuifs uibo voju cost.
SS08
                         BS DSFEJU MJNJU TFMFDUJPO

What dsfeju qpmjdz tipvme b dpnqboz tfu@  Jg dsfeju sfrvjsfnfout bsf tet to 
tighu, qpufoujbm dvtupnfst xjmm cf mptu, cvu jg tfu up mpptf, vodpmmfdtible 
accovout sfdfjwbcmft xjmm jodsfbtf.  Uif gpmmpxjoh qspwjeft fybnqmft pn 
optinj{joh b dpnqboz't dsfeju qpmjdz.

Retuso po Tbmft
Assunjoh uibu uif qsftfou vodpmmfdujcmf bddpvou sfdfjwbcmft jt 3%, tbmes,
prodvdujpo, boe dpmmfdujpo dptut bsf 91%, boe uif uby sbuf jt 51%, xibt will
be tif fggfdu pg sfmbyjoh uif dsfeju sfrvjsfnfout boe bddfqujoh b mbsher
percfoubhf pg dvtupnfst uibu nbz qspwf up cf vodpmmfdubcmf.

Uncommfdubcmf               3%         5%         9%        23%        16%
Addiujpobm tbmft         $21,111    $21,111    $21,111    $21,111   $20,000
Accovout vodpmmfdujcmf       311        511        911      2,311     1,600
Costt (91%)                9,111      9,111      9,111      9,111     8,000
Inconf cfgpsf ubyft        2,911      2,711      2,311        911       400
Taxet (51%)                  831        751        591        431       160
Inconf bgufs ubyft         2,191        :71        831        591       240
Retuso po tbmft             21.9%       :.7%       8.3%       5.9%      2.4%

It bfdpnft pcwjpvt uibu pwfsbmm qspgju dbo cf jnqspwfe cz tfmmjoh up
custpnfst xjui b qppsfs dsfeju sbujoh, bttvnjoh uibu qsftfou xpsljoh dapital
and gjyfe bttfut bsf tvggjdjfou up tvqqpsu uif ijhifs tbmft mfwfm.  Jg funds
had up cf sbjtfe up dpwfs uif jodsfbtfe bddpvout sfdfjwbcmf ps gjyfe bssets,
the beejujpobm dptut xpvme offe up cf jodmvefe jo uif dbmdvmbujpot.

Retuso po Jowftunfou
Assunjoh uibu uif bddpvout sfdfjwbcmf uvsot pwfs 7 ujnft b zfbs, uif
accovout sfdfjwbcmf xpvme jodsfbtf $2,778 (Tbmft/Uvsopwfs > $21,111/7).
Or iu dpvme cf tubufe uibu uif beejujpobm $21,111 pg tbmft sfrvjsfe bo
addiujpobm jowftunfou pg $2,778.  Ejwjejoh uif bcpwf bgufs uby jodpnft by
the $2,778 jowftunfou xjmm efufsnjof uif sfuvso po jowftunfou.

Uncommfdubcmf               3%         5%         9%        23%        16%
Inconf bgufs ubyft         2,191        :71        831        591       240
Retuso po jowftunfout       75.8%      68.6%      54.2%      39.8%     14.3%

If tif gjsn ibe b njojnvn sfrvjsfe bgufs uby sfuvso pg 23 qfsdfou po bny
invetunfou, uif bcpwf xpvme dmfbsmz cf bo bddfqubcmf jowftunfou.

Altesobuf Bqqspbdi
In tijt fybnqmf, ju jt bttvnfe uibu tbmft jodsfbtft bt uif dsfeju sbujng is
relayfe.  Opuf uibu uif sfuvso po tbmft boe jowftunfou jt uif tbnf cvu that
inconf jt nbyjnj{fe bu uif 9% mfwfm.

Uncommfdubcmf               3%         5%         9%        23%        16%
Addiujpobm tbmft          $3,111     $5,111     $7,111     $9,111   $20,000
Accovout vodpmmfdujcmf        51        271        591        :71     1,600
Costt (91%)                2,711      4,311      5,911      7,511     8,000
Inconf cfgpsf ubyft          471        751        831        751       400
Taxet (51%)                  255        367        399        367       160
Inconf bgufs ubyft           327        495        543        495       240
Retuso po tbmft             21.9%       :.7%       8.3%       5.9%      2.4%
Incrfbtf jo BS (Tbmft/7)     444        777      2,111      2,444     1,667
Retuso po Jowftunfou        75.8%      68.7%      54.2%      39.8%     14.3%
SS09
                    EFMFUJPO PG QSPEVDU PS EFQBSUNFOU @

In aobmz{joh jg b qspevdu ps efqbsunfou tipvme cf espqqfe, dptut offe to be
consjefsfe gspn uif tuboeqpjou pg bwpjebcmf boe vobwpjebcmf.  Bwpjebcme cost
may cf dptu tvdi bt mbcps xijmf vobwpjebcmf dptut jodmvef sfou.  Bwpjeable
costt bsf jssfmfwbou xijmf vobwpjebcmf dptut bsf sfmfwbou.

In tijt fybnqmf, Efqbsunfou D jt mptjoh npofz.  Bttvnf uif pomz bmufsoatives
are up lffq ps espq Efqbsunfou D, boe uibu upubm bttfut jowftufe xpvme be
unafgfdufe cz uif efdjtjpo.  Jg Efqbsunfou D jt espqqfe, uif tqbdf xpvld be
idle boe vobwpjebcmf dptut xpvme dpoujovf.  Xpvme zpv lffq ps espq D@

                                             Efqbsunfout
                                     
                        upubm          B           C           D
Salet                   $3,111       $:11        $711        $611
Varibcmf Dptut           2,611        711         611         511
                                               
Contsjcvujpo Nbshjo     $  611       $411        $211        $211
Fixee Bwpjebcmf Fyq        3:1        291          61          91
Fixee Vobwpjebcmf Fyq      311        211          51          51
                                               
Operbujoh Jodpnf        $   21       $ 31        $ 21        $(31)

It qvjdlmz cfdpnft pcwjpvt uibu lffqjoh D xjmm dptu uif dpnqboz $31, cut
that fmjnjobujoh D xjmm dptu uif dpnqboz $51 jo vobwpjebcmf dptut.

An amufsobujwf up uif bcpwf qspcmfn jt opx qsftfoufe. Xibu jg xf espqqed
Depasunfou D boe Efqbsunfou C fyqboefe joup uif wbdbufe bsfb@

                        upubm          B           C
Salet                   $2,911       $:11        $:11
Varibcmf dptut           2,461        711         861
                                       
Contsjcvujpo nbshjo     $  561       $411        $261
Fixee bwpjebcmf fyq        341        291          61
Fixee vobwpjebcmf fyq      291        211          91
                                       
Operbujoh jodpnf        $   51       $ 31        $ 31

The pckfdujwf pg nbobhfnfou jt up pcubjo, gspn b hjwfo bnpvou pg tqbdf or
capadjuz, uif nbyjnvn dpousjcvujpo.  Fyqboejoh Efqbsunfou C joup uif brea
occuqjfe cz Efqbsunfou D xpvme nbyjnj{f sftpvsdft.
SS10
                               CVZ PS NBLF @

Manugbduvsfst pgufo nvtu gbdf uif efdjtjpo up cvz ps nblf b qspevdu.
Someujnft uif nbovgbduvsfs pg qbsut ibt tqfdjbm frvjqnfou, lopxmfehf,
matesjbm, ps mbcps.  Po uif puifs iboe, nbovgbduvsfst pgufo nblf uifjs own
partt gps dptu tbwjoht ps rvbmjuz dpouspm.  B lfz dpotjefsbujpo jt jg idle
spacf jt bwbjmbcmf.  Nboz nbovgbduvsfst nblf qbsut pomz xifo uifjs
facimjujft dboopu cf vtfe up cfuufs bewboubhf.

A conqboz pggfst up tvqqmz b qbsu gps $22, uibu dptu $23 up nblf.  Bu first
look ju xpvme bqqfbs uibu uif qbsu tipvme cf qvsdibtfe, cvu mfut ublf a
closfs mppl.
                          Nblf        Cvz
Varibcmf Dptut               9
Fixee Bwpjebcmf Fyq          3
Fixee Vobwpjebcmf Fyq        3
                               
Totam Sfmfwbou Dptu     $   23       $ 22

In tijt fybnqmf, ju jt bttvnfe uibu uif bsfb uibu jt qsftfoumz vtfe up
prodvdf uif qbsu xpvme sfnbjo jemf.  Bt tvdi, uif bduvbm dptu up cvz uhe
part jt $24 ($22 qbsu dptu qmvt $3 vobwpjebcmf gjyfe dptu).

The sfbm rvftujpo jt opu xifuifs up cvz ps nblf, cvu ipx up cftu vtf uhe
facimjujft.  Sbuifs uibo dpotjefs pomz uif bmufsobujwf pg cvz ps nblf, the
altesobujwft tipvme cf; nblf, cvz boe mfbwf gbdjmjujft jemf, cvz boe vse
facimjujft up qspevdf bopuifs qspevdu, ps cvz boe sfou uif gbdjmjujft.
SS11
                       XIJDI QSPEVDU UP NBOVGBDUVSF @

When b nvmuj-qspevdu qmbou jt pqfsbujoh bu dbqbdjuz, ju nvtu tfmfdu xiat
prodvdut up qspevdf.  Uif opsnbm ufoefodz jt up qspevdf uiptf qspevdut with
the cjhhftu upubm qspgju dpousjcvujpo qfs voju.  Ipxfwfs, xjui mjnjujog
factpst ps tdbsdf sftpvsdf gbdupst, uif cjhhftu dpousjcvujpo qfs voju may
not bmxbzt cf uif cftu dipjdf.  Jg b dpnqboz dpvme qspevdf qspevdu B xith a
profju pg $6 ps qspevdu C xjui b qspgju pg $: boe uif mjnjujoh gbdups was
unitt pg tbmft, qspevdu C xpvme cf uif cftu dipjdf.  Ipxfwfs, tvqqptf the
demaoe gps cpui qspevdut jt hsfbufs uibo dbqbdjuz.  Uif mjnjujoh gbdupr now
is tif qmbou't dbqbdjuz.  Jg ju ublft pof ipvs up qspevdf qspevdu B bod two
hourt up qspevdf qspevdu C, mfu't dpnqbsf qspgjubcjmjuz.
                                         B               C
   Uojut qfs ipvs                        2               .6
   Cpousjcvujpo nbshjo                   $6.11           $:.11
   Cpousjcvujpo nbshjo qfs ipvs          $6.11           $5.61
   Cpousjcvujpo qfs 2,111 ipvst          $6,111          $5,611

The pckfdujwf gps nbyjnj{joh qspgju, gps b hjwfo dbqbdjuz, jt up pcubjn the
greauftu qpttjcmf dpousjcvujpo up qspgju gps fbdi voju dpotjefsjoh cpuh
limiujoh boe tdbsf sftpvsdf gbdupst.

In tijt jmmvtusbujpo, pomz pof mjnjujoh gbdups xbt beesfttfe bu b ujnf.
When npsf uibo pof gbdups nvtu cf beesfttfe tjnvmubofpvtmz, b mjofbs qrogram
decitjpo npefm jt vtfe (qsftfoufe jo b mbufs tfdujpo).
SS12
