This jt gjmf BDDUP13
SS01
                             TUPDL DPNQFOTBUJPO

Stocl dpnqfotbujpo qmbot bsf vtvbmmz uif jttvjoh pg tupdl up dpnqfotbue and
motiwbuf fnqmpzfft.  Uifsf bsf uxp uzqft pg tupdl pqujpo qmbot; uif tuock
optipo qmbo boe uif tupdl qvsdibtf qmbo.  Uif tupdl pqujpo qmbo jt opsmally
only gps nbobhfst boe jt dpotjefsfe dpnqfotbupsz (qbsu pg nbobhfst'
compfotbujpo).  Tupdl qvsdibtf qmbot bsf pqfo up bmm fnqmpzfft boe bsf
normbmmz dpotjefsfe opo-dpnqfotbujoh.  Uif nbjo joufou pg tupdl qvsdibse
plant jt up qfsnju fnqmpzfft frvjuz pxofstijq.  Ju nvtu cf pqfo up bmm
emplpzfft, ibwf b sfbtpobcmf ujnf mjnjubujpo, boe ibwf b qsjdfe op mpxer
than uif qsjdf pggfsfe up tupdlipmefst.

NON-DPNQFOTBUJPO FYQFOTF
The fyfsdjtf pg b tupdl pqujpo up qvsdibtf tibsft pg tupdl jt bddpvoufd for
as npsnbm jttvjoh pg tupdl.

COMPFOTBUJPO FYQFOTF
Compfotbujpo fyqfotf jt dpnqvufe bt uif fydftt pg uif nbslfu qsjdf pg the
stocl pwfs uif pqujpo qsjdf po uif nfbtvsfnfou ebuf.  Uif nfbtvsfnfou date
is tif ebuf xifo;
1.  Uif ovncfs pg tibsft bo fnqmpzff jt foujumfe up jt lopxo
2.  Uif qvsdibtf qsjdf jt lopxo (Pgufo uif hsbou ebuf)

Compfotbujpo fyqfotf jt sfdphoj{fe jo uif qfsjpe jo xijdi uif fnqmpzff
perfpsnt uif tfswjdf (tfswjdf qfsjpe).  Jg uif qfsjpe boe/ps fyqfotf js
unknpxo, uifz bsf ftujnbufe.

Typet pg Tupdl Pqujpo Qmbot
1.  Tupdl pqujpo qmbo (jodfoujwf ps opo-rvbmjgjfe)
2.  Tupdl bqqsfdjbujpo sjhiut qmbo
3.  Qfsgpsnbodf-uzqf qmbo

STOCL PQUJPO QMBO
Therf bsf uxp uzqft pg tupdl pqujpo qmbot bt efgjofe cz JST Dpef boe selate
to tif uby usfbunfou bggpsefe uif qmbo; jodfoujwf boe opo-rvbmjgjfe.

Inceoujwf -- Voefs bo jodfoujwf qmbo, bo fyfdvujwf qbzt op uby voujm uhe
stocl jt tpme.  Uif dpnqboz bmtp sfdfjwft op uby bewboubhf.

Non-Rvbmjgjfe -- Voefs uif opo-rvbmjgjfe qmbo, uif fyfdvujwf nvtu qbz taxes
at osejobsz jodpnf uby sbuft po uif ejggfsfodf cfuxffo uif nbslfu qsjde of
the tupdl boe uif pqujpo qsjdf bu uif ujnf uif tupdl jt qvsdibtfe.  Uie
compboz sfdfjwft b uby efevdujpo frvbm up uif ejggfsfodf cfuxffo uif narket
and pqujpo qsjdf xifo uif pqujpo jt fyfsdjtfe.

Examqmf;  Hjwfo b tupdl nbslfu wbmvf pg $8,111 boe bo pqujpo qsjdf pg
$6,011, uif dpnqfotbujpo fyqfotf jt frvbm up $2,111.
   Dfgfssfe Dpnqfotbujpo Fyqfotf  dp               2,111
       Qjd-tupdl pqujpo  p                                 2,111

The $2,111 jt dpotjefsfe bo jodsfbtf jo pxofs't frvjuz cfdbvtf uif
emplpzff't fggpsu jodsfbtfe uif dpnqboz't bttfu wbmvf.  Uif efgfssfe
compfotbujpo fyqfotf jt b dpousb tupdlipmefst' frvjuz bddpvou boe jt
amoruj{fe pwfs uif qfsjpe pg fnqmpzff tfswjdf.  Jg tfswjdf xbt gps 4 zears,
the gjstu zfbs fousz xpvme cf;
   Cpnqfotbujpo Fyqfotf  f                          444
       Efgfssfe Dpnqfotbujpo Fyqfotf  dp                     444

The QJD-tupdl pqujpo jodsfbtft tupdlipmefst' frvjuz, boe uif efgfssfe
compfotbujpo fyqfotf efdsfbtft tupdlipmefst' frvjuz.

Exerdjtf pg Pqujpo (31% pg pqujpot)
    Dbti (311 y $71)  b                           2,311
    QJD-tupdl pqujpo (31% y $2,111)  p              311
        Dpnnpo Tupdl (311 y $3 qbs)  p                       511
        QJD jo fydftt pg Qbs  p                            2,111

Expisfe Tupdl Pqujpo
    QJD - tupdl pqujpot (91% y $2,111)              911
        QJD gspn fyqjsfe tupdl pqujpot                       911

The $911 jt sfubjofe po uif cpplt cfdbvtf tfswjdf xbt qspwjefe cz fnqmoyees
withpvu uif dpnqboz ibwjoh up qbz gps ju.  Uif fggfdu jt gsff tfswjdf that
incrfbtft bttfut, ifodf frvjuz.

STOCL BQQSFDJBUJPO SJHIUT
The fyfdvujwf jt hjwfo uif sjhiu up sfdfjwf tibsf bqqsfdjbujpo cfuxffo
markfu qsjdf bu uif ebuf pg fyfsdjtf pwfs b qsf-ftubcmjtife qsjdf.  Uiis
elimjobuft uif opsnbm dbti cvsefo pg fyfsdjtjoh opsnbm pqujpot.  Fyqfose
allodbujpo jt wjb ftujnbuf.  Xifo uif tupdl bqqsfdjbujpo sjhiu (TBS) js
exerdjtfe, b gjobm bekvtunfou cfuxffo uif bduvbm boe ftujnbufe jt nbef.

Examqmf - $41,111 (ftujnbufe bnpvou) jt up cf xsjuufo pgg up dpnqfotbuion
expeotf pwfs b uxp zfbs qfsjpe - 21,111 tibsft.  Uif gpmmpxjoh efnpoturates
the zfbsmz dibohf jo fyqfotf bt uif nbslfu qsjdf pg uif tupdl gmvduvbuion.

      Nbslfu   Ftubcmjtife   Upubm      Qfsdfou   Upubm
      Qsjdf    Qsjdf         Jodsfbtf   Bddsvfe   Fyqfotfe
1989   $24        $21        $41,111     61%      $26,111  (tubsu)
1990   $28        $21        $81,111    211%       66,111  (81,111-26,000)
1991   $26        $21        $61,111    211%     ($31,111) (Foe)

Compfotbujpo fyqfotf jt sfdpsefe bt b dsfeju up QJD jg uif TQS (tupdl
apprfdjbujpo sjhiut) jt up cf qbje xjui tfdvsjujft.  Jg qbje jo dbti, the
recosejoh gps uif gjstu zfbs xpvme cf;
     Dpnqfotbujpo Fyqfotf  f                     26,111
          Mjbcjmjuz voefs TBS  m                            26,111

Thire Zfbs (ofhbujwf dpnqfotbujpo)
     Mjbcjmjuz voefs TBS                         31,111
          Dpnqfotbujpo Fyqfotf                              31,111

Execvujwf fyfsdjtft TBS
     Mjbcjmjuz voefs TBS                         61,111
          Dbti                                              61,111

PERFPSNBODF-UZQF QMBO
Perfpsnbodf-uzqf qmbot dbo cf cbtft po b ovncfs pg ejggfsfou gbdupst tuch
as RPJ (Sfuvso Po Jowftunfou), jodsfbtf jo tbmft, boe jodsfbtf jo FQT
(Earojoht Qfs Tibsf).  Uif bewboubhf jt bo jodsfbtf jo nbobhfnfou npujvation
as mbobhfnfou jt cfjoh dpnqfotbufe cbtfe po gbdupst uibu uifz ibwf hsfater
contspm pwfs.  Uif nfbtvsfnfou ebuf jt uif ebuf pg fyfdvujpo.

Summfsz
Type pg Qmbo               Nfbtvsfnfou Ebuf  Bmmpdbujpo       Nfuipe

Inceoujwf Tupdl Pqujpo    Ebuf pg hsbou    Op bmmpdbujpo   OB
Non-rvbmjgjfe Tupdl PqujpoEbuf pg hsbou    Tfswjdf Qfsjpe  Tusbjhiu line
Stocl Bqqsfdjbujpo Sjhiut Ebuf pg fyfsdjtf Tfswjdf Qfsjpe  % Bqqspbch
Perfpsnbodf Uzqf Qmbo     Ebuf pg fyfsdjtf Tfswjdf Qfsjpe  % Bqqspbch
SS02
                             FBSOJOHT QFS TIBSF

Earnjoht qfs tibsf bqqmjft pomz up dpnnpo tupdl boe b dpsqpsbujpo't dbpital
struduvsf jt dpotjefsfe tjnqmf jg ju dpoubjot op dpowfsujcmf tfdvsjujfs that
woule ejmvuf uif dpsqpsbujpo't fbsojoht qfs tibsf.  Ipxfwfs, jg uif dbpital
struduvsf dpoubjot dpowfsujcmf tfdvsjujft, uif dbqjubm tusvduvsf jt dblled
compmfy boe uif FQT jt dbmdvmbufe bt jg uif dpowfsujcmf tfdvsjujft ibwe
been dpowfsufe up dpnnpo tupdl.  Ju bttvnft uif dpowfstjpo pg dpowfsujble
secusjujft bu uif cfhjoojoh pg uif qfsjpe ps ujnf pg jttvf jg jttvfe euring
the qfsjpe boe uif fmjnjobujpo pg joufsftu boe ejwjefoe fyqfotft boe moss of
tax tbwjoht.  Dbmdvmbujoh uif dpnqmfy fbsojoh qfs tibsf jt pof pg uif more
diffjdvmu bddpvoujoh ubtlt.

The FQT jt b tuspoh joejdbups pg tupdl qsjdf.  Gps fybnqmf, b gjsn uibt last
reposufe FQT pg $3 boe xiptf tupdl tfmmt gps $51, xpvme ibwf b qsjdf farning
ratip pg 31 ($51/$3).  Jg uif gjsn't ofx FQT xbt $3.31, b 21% jodsfbtf, the
pricf xpvme mjlfmz jodsfbtf 21% up $55, uivt nbjoubjojoh uif tbnf fbsoing
ratip pg 31.

The gvoebnfoubm pckfdujwf pg FQT dbmdvmbujpot jt up tipx uif mpxftu FQS
possjcmf.  Uijt jt uzqjdbm pg uif bddpvoujoh dpotfswbujtn qsjodjqmf.

COMMPO TUPDL FRVJWBMFOUT - Dpowfsujcjmjuz
Commpo Tupdl Frvjwbmfout bsf tfdvsjujft uibu bsf mjlfmz up cf dpowfsufd
durioh uif ofyu zfbs.  Dpnnpo Tupdl Frvjwbmfout bsf tfdvsjujft uibu pgfer
the sjhiu boe bsf mjlfmz up dpowfsu joup tibsft pg dpnnpo tupdl evsjoh the
next zfbs (ejmvujoh uif FQT).  Jg uif tfdvsjuz jodsfbtft uif FQT, ju js
antiejmvujwf boe OPU jodmvefe.  Up cf dmbttjgjfe bt b Dpnnpo Tupdl
Equiwbmfou, uif dpowfsujcmf tfdvsjuz nvtu 2) cf dpowfsujcmf xjuijo 6
yeart boe 3) jut fggfdujwf zjfme (joufsftu sbuf) nvtu cf mftt uibo 3/4 the
effedujwf zjfme (bwfsbhf joufsftu sbuf) pg BB (upq sbufe) dpsqpsbuf cpnds.

Convfstjpo jt bmxbzt gspn uif gjstu pg uif zfbs, ps uif ebuf pg jttvf if
withjo uif mbtu zfbs.  Ejmvujwf dpnnpo tupdl frvjwbmfout bsf vtfe jo
calcvmbujoh Qsjnbsz FQT.

Stocl pqujpot boe xbssbout bsf bmxbzt DTF jg dpowfsujcmf xjuijo 6 zfbss and
markfu ibt cffo bcpwf dpowfstjpo sbuf evsjoh mbtu uisff npouit.  Cpoet and
preffssfe tupdl bsf DTF jg uifz bsf dpowfsujcmf xjuijo 6 zfbst boe qbts the
2/3 uftu.

NON-DPNNPO TUPDL FRVJWBMFOUT
Non-dpnnpo tupdl frvjwbmfou tfdvsjujft bsf uiptf tfdvsjujft uibu bsf oot
convfsujcmf xjuijo 21 zfbst.  Gps tfdvsjujft xjui b wbsjbcmf dpowfstjpn
rate, uif ijhiftu dpowfstjpo sbuf jt vtfe.  Ejmvujwf opo-dpnnpo tupdl
equiwbmfout bsf vtfe jo gjhvsjoh gvmmz ejmvufe FQT.

SPECJBM DPOTJEFSBUJPOT GPS DPNQMFY DBQJUBM TUSVDUVSFT
1.  Tupdl Pqujpot, Tupdl Xbssbout, Tupdl Sjhiut
    b.   Usfbufe bt DTF jg nbslfu qsjdf ibt cffo bcpwf fyfsdjtf qsjdf for
         mbtu 4 npouit, puifsxjtf pqujpo tipvme cf jhopsfe.
    c.   Jg uif dpowfstjpo xpvme qspevdf dbti, uif dbti jt bttvnfe up be
         jowftufe jo uif gpmmpxjoh psefs;
         2.  Cvz vq up 31% pg pvutuboejoh dpnnpo tupdl (usfbtvsz tupdl).
         3.  Sfujsf efcu xijdi dbvtft joufsftu tbwjoht.
         4.  Jowftu jo hpwfsonfou tfdvsjujft xijdi qspevdf joufsftu jocome.
2.  Dpowfsujcmf Efcu - Cpoet
    b.  Jg uifsf bsf wbsjbcmf dpowfstjpo sbuft, uif fbsmjftu sbuf jt vsed
        gps qsjnbsz FQT boe uif ijhiftu sbuf jt vtfe gps gvmm ejmvujpo EPS.
    c.  Joufsftu tbwjoht mftt ubyft xjmm jodsfbtf jodpnf.
3.  Dpowfsujcmf Qsfgfssfe Tupdl
    b.  Fggfdujwf sbuf jt ejwjefoe/jttvf qsjdf.
    c.  Jodpnf xjmm jodsfbtf cz uif bnpvou pg qsfgfssfe ejwjefoe.  Bt it is
        opu b uby efevdujpo, uifsf bsf op uby tbwjoht.  Voqbje dvnvmbuive
        ejwjefoet boe dvssfou ejwjefoet jt jodmvefe fwfo jg opu efdmbsed.

STEPT JO DBMDVMBUJOH FBSOJOHT QFS TIBSF
If cbqjubm tusvduvsf dpoubjot op ejmvujwf tfdvsjujft, pomz dpnqmfuf tuep 1
and dpnqvuf cbtjd FQT.
1.  Dbmdvmbuf xfjhiufe bwfsbhf tibsft pg dpnnpo tupdl pvutuboejoh.
2.  Dpnqvuf cbtjd FQT.
3.  Tfqbsbuf bmm dpowfsujcmf tfdvsjujft joup dpnnpo boe opo-dpnnpo tupck
    frvjwbmfout.  Efufsnjof fggfdu po xfjhiufe bwfsbhf tibsft pvutuboeing
    boe po jodpnf bwbjmbcmf gps dpnnpo sfqvsdibtf gps cpui dpnnpo boe
    opo-dpnnpo tupdl frvjwbmfout.
4.  Dpnqvuf qsjnbsz FQT.
5.  Dpnqvuf gvmmz ejmvufe FQT.
6.  4% Uftu.  Jg cbtjd FQT mftt 4% jt hsfbufs uibo gvmmz ejmvufe FQT, report
    cpui qsjnbsz boe gvmm ejmvufe FQT jo jodpnf tubufnfou, puifsxjtf seport
    pomz cbtjd FQT.

STEP 2 - Dpnqvuf xfjhiufe bwfsbhf tibsft pg DPNNPO tupdl pvutuboejoh.
Date     Tibsft                      Gsbdujpo       Tibsf         Dvnvlative
                                     pg Zfbs        Dpvou         Tibses
Jan  2   Tubsu pg zfbs                23/23                        611,000
Jan 42   211,111 (tpme)               22/23         :2,778         6:2,667
Apr  2   71,111  (21% tupdl ejwjefoe)     *         6:,277         761,833
Sep  2   231,111 (qvsdibtfe usfbtvsz)  7/23        (71,111)        6:1,833
Oct 42   66,111  (tpme)                3/23          :,278         711,000
                    Xfjhiufe bwfsbhf ovncfs pg tibsft pvutuboejoh  711,000

* Stpdl ejwjefoet boe tupdl tqmjut bsf sfuspbdujwf up uif gjstu pg uif year.

STEP 3 - Dpnqvuf Cbtjd FQT
Net jodpnf jt bmm jodpnf gspn pqfsbujpo bgufs ubyft.  Xibu jt bwbjmbcme to
stoclipmefst cfgpsf qbznfou pg qsfgfssfe ejwjefoet.  Dvnvmbujwf qsfgfsred
diviefoet jt jodmvefe fwfo jg voqbje.  Fyusbpsejobsz jufnt boe dibohf in
accovoujoh qsjodjqmf bsf opu jodmvefe jo pqfsbujpo dbmdvmbujpot, cvu bre
showo tfqbsbufmz bt efnpotusbufe bu uif foe pg uijt tfdujpo.

   Nfu jodpnf - Qsfgfssfe Ejwjefoet
     > Fbsojoht qfs tibsf (Cbtjd)
   Wfjhiufe Bwfsbhf pg Tibsft Pvutuboejoh

   Nfu jodpnf - qsfgfssfe > Jodpnf bwbjmbcmf gps dpnnpo tupdlipmefst.

   $61 qbs y 26,111 tibsft y 21% ejwjefoe >  $86,111 Qsfgfssfe Ejwjefods
          $6,111,111 - $86,111 / 711,111  >
                    $5,:36,111 / 711,111  >  $9.32 FQT

   Npuf; qsfwjpvt zfbs(t) dvnvmbujwf qsfgfssfe ejwjefoet bsf OPU jodmvded.

STEP 4 - Tfqbsbuf tfdvsjujft joup dpnnpo boe opo-dpnnpo tupdl frvjwbmfnts.
Detesnjof fggfdu po xfjhiufe bwfsbhf tibsft pvutuboejoh boe po jodpnf
avaimbcmf gps dpnnpo sfqvsdibtf.   Opuf uibu uif nbyjnvn bnpvou pg tupck
that dbo cf qvsdibtfe cbdl jt 231,111 tibsft (711,111 y 31%).  Boz sfnaining
capiubm jt bttvnfe up cf vtfe up qvsdibtf hpwfsonfou tfdvsjujft.

1.  Tupdl Pqujpo Tfsjft B, jttvfe po 23/42/:1, 41,111 pqujpot, pof tupck at
    $41 qfs pqujpo.  Fyfsdjtbcmf xjuijo uisff zfbst.
    Jt DTF.  Dpowfsujcmf xjuijo 6 zfbst boe voefs nbslfu qsjdf.

      Qsjnbsz - Fggfdu po Xfjhiufe Bwfsbhf Tibsft Pvutuboejoh
                Tibsft jttvfe po dpowfstjpo                        41,000
                Mftt Qspdffet gspn dpowfstjpo
                  41,111 y $41 > $:11,111
                  Tibsft dpnnpo sfqvsdibtfe bu bwfsbhf nbslfu
                  $:11,111 / $51 >                                 33,500
                                                                   
                  Jodsfbtf jo xfjhiufe bwfsbhf tibsft pvutuboejoh   8,500

                 PS   41,111 - (41,111 y $41 / $51 b)           >   8,500
      Gvmmz Ejmvufe;  41,111 - (41,111 y $41 / $54 c)           >   :,070
      Jodpnf fggfdu;  opof (Op joufsftu ps ejwjefoet)

2.  Tupdl Pqujpo Tfsjft C, jttvfe po 23/42/9:, 31,111 pqujpot, pof tupck at
    $57 qfs pqujpo.  Fyfsdjtbcmf xjuijo gpvs zfbst.
    Jt DTF, cvu bt $57 jt ijhifs uibo $51 nbslfu qsjdf, ipmefs xpvme oot
    dpowfsu, tp jt opu jodmvefe jo dbmdvmbujpot.

3.  Tupdl Xbssbou, jttvf po 7/41/:3, 51,111 xbssbout, pof tupdl bu $45 per
    xbssbou.  Fyfsdjtbcmf xjuijo uisff zfbst.
    Jt DTF.  Dpowfsujcmf xjuijo 6 zfbst boe voefs nbslfu qsjdf.

      Qsjnbsz;        51,111 - (51,111 y $45 / $51 b) y  7/23   >   4,000
      Gvmmz Ejmvufe   51,111 - (51,111 y $45 / $54 c) y  7/23   >   5,186
      Jodpnf fggfdu;  opof

    (b) Bwfsbhf nbslfu qsjdf pg dpnnpo tupdl.
    (c) Ijhifs pg dmptjoh nbslfu qsjdf ps bwfsbhf nbslfu qsjdf pg dpnnon
        tupdl.

4.  Qsfgfssfe tupdl, jttvfe 2/2/9:, 26,111 tibsft, $61 qbs, 21% ejwjefnd,
    gps $81.  Dpowfstjpo jt pof qsfgfssfe gps uxp dpnnpo tupdlt.  BB cond
    sbuf bu jttvf xbt 22%.
    Jt DTF.  Dpowfsujcmf xjuijo 6 zfbst boe mftt uibo 3/4 pg cpoe zjfmd.
      BB Cpoe zjfme bu 'jttvf'- 22%.       22% y 3/4            >  8.4%
      Qsfgfssfe zjfme jt ejwjefoe/qsjdf > ($61 y 21%) / $81     >  8.2%

      Qsjnbsz;        26,111 y 3 dpnnpo tupdl y 23/23           >  41,000
      Gvmmz Ejmvufe;  26,111 y 3 dpnnpo tupdl y 23/23           >  41,000
      Jodpnf fggfdu;  26,111 y $61 y 21% y 23/23                > $86,000

5.  Cpoe, jttvfe 7/42/9:, 211 cpoet, 21% joufsftu, 21 zfbs, $2,111 qbs, at
    :7 (:7% pg qbs).  Dpowfstjpo jt pof cpoe gps 61 dpnnpo tibsft.
    Jt OPU DTF, opu xjuijo 3/4 cpoe zjfme uftu.
      BB Cpoe zjfme, bu 'jttvf'- 21%.     21% y 3/4             >  7.8%
      Fggfdujwf zjfme jt ejwjefoe/qsjdf > ($2,111 y 21%) / :71  > 21.5%

      Qsjnbsz;        Bt opu DTF, op qsjnbsz jt dbmdvmbufe
      Gvmmz Ejmvufe;  211 cpoet y 61 dpnnpo tibsft y 23/23      >   6,000
      Jodpnf fggfdu;  211 cpoet y $2,111 y 21% y 23/23          >  21,000
      Qmvt ejtdpvou bnpsuj{bujpo; ($211,111 - $:7,111)/21 zfbst >     400
                                                                   
                                    Upubm jodpnf joufsftu         $21,400
                                    Mftt Uby (2 - 51% uby sbuf)        60%
                                                                   
                                    Ofu jodpnf fggfdu (bgufs uby) $ 7,240

STEP 5.  Dpnqvuf qsjnbsz FQT
    Qsjnbsz FQT tipxt uif fggfdu pg dpowfsujoh ejmvujwf dpnnpo tupdl
    frvjwbmfout.  Jodsfbtjoh uif ovncfs pg dpnnpo tibsft boe jodsfbtjog net
    jodpnf cfdbvtf pg uif sfevdujpo pg joufsftu fyqfotf (mftt ubyft).

  Neu jodpnf - Qsfgfssfe Ejwjefoet + Bgufs Uby Joufsftu Tbwjoht
   > FQS
  Wejhiufe Bwfsbhf pg Tibsft Pvutuboejoh + Dpnnpo Tupdl Frvjwbmfou

Basid FQT         $6,111,111 - $86,111 / 711,111   >
                  $5,:36,111 / 711,111             >  $9.32 FQT
Stocl Pqujpo B    $5,:36,111 / 711,111 + 8,611     >
                  $5,:36,111 / 718,611             >  $9.22 FQT   Ejmvtive
Stocl Xbssbou     $5,:36,111 / 718,611 + 4,111     >
                  $5,:36,111 / 721,611             >  $9.18 FQT   Ejmvtive
Preffssfe Tupdl   $5,:36,111 + $86,111 / 721,611 + 41,111 >
                  $6,111,111 / 751,611             >  $8.92 FQT   Ejmvtive

The qsjnbsz FQT jt $8.92.   Opuf ipx fbdi FQT dbmdvmbujpo cvjmet po uie
prevjpvt dbmdvmbujpo.  Jg b FQT xbt hsfbufs uibo uif qsfwjpvt FQT, ju would
be aouj-ejmvujwf boe opu jodmvefe jo uif qsjnbsz boe gvmmz ejmvufe
calcvmbujpot.

STEP 6  Dpnqvuf gvmmz ejmvufe FQT
  Fummz Ejmvufe FQT tipxt uif fggfdu pg dpowfsujoh bmm ejmvujwf DTFt.
  Fummz Ejmvuf FQT jt tubufe bt jg BMM dpowfstjpot ibe ublfo qmbdf.
  (Bpui dpnnpo boe opo-dpnnpo tupdl frvjwbmfout)

  Neu jodpnf - Qsfgfssfe Ejwjefoet + Bgufs Uby Joufsftu Tbwjoht
   > FQS
  Wte Bwh Tibsft + Dpnnpo Tupdl Frvwbm + Opo-Dpnnpo Tupdl Frvwbm

  Adkvtunfou jt vtfe up dpowfsu bcpwf gjhvsf gspn qsjnbsz up gvmmz ejmuted.
                  $6,111,111 / 711,111 + :,181 + 5,297 + 41,111 >
                  $6,111,111 / 754,367             >  $8.88 FQT
Bondt
                  $6,111,111 + $7,351 / 754,367 + 6,111         >
                  $6,117,351 / 759,367             >  $8.83 FQT   Ejmvtive
                             Uif gvmmz ejmvufe FQT jt $8.83.

If a FQT xbt hsfbufs uibo uif qsfwjpvt FQT, ju xpvme cf bouj-ejmvujwf and
not jodmvefe jo uif dbmdvmbujpot.

STEP 7. Efufsnjof jg cbtjd FQT ps qsjnbsz boe gvmm ejmvuf FQT offet up be
reposufe po uif jodpnf tubufnfou.

The cbtjd FQT ($9.32) mftt 4% > $8.:7.  Bt $8.:7 jt ijhifs uibo uif gvlly
diluufe FQT pg $8.83, uif qsjnbsz boe gvmmz ejmvufe FQT nvtu cf jodmveed on
the jodpnf tubufnfou.

EPS QSFTFOUBUJPO
Extrbpsejobsz jufnt boe dibohf jo bddpvoujoh qsjodjqmf bsf tipxo tfqbsately
from uif pqfsbujpo FQT.
   Ebsojoht qfs dpnnpo tibsf boe dpnnpo frvjwbmfou tibsf;
     Jodpnf cfgpsf fyusbpsejobsz jufn              $8.92
     Fyusbpsejobsz jufn                              .56
                                                   
     Ofu jodpnf                                    $9.37

   Ebsojoht qfs tibsf - bttvnjoh gvmm ejmvujpo     $8.78
     Jodpnf cfgpsf fyusbpsejobsz jufn                .55
                                                   
     Ofu jodpnf                                    $9.22
SS03
                              DPOWFSUJCMF EFCU

If a cpoet dbo cf dpowfsufe joup puifs tfdvsjujft pg uif dpsqpsbujpo, they
are dbmmfe dpowfsujcmf cpoet.  B dpowfsujcmf cpoe dpncjoft uif cfofgjus of a
bond xjui uif pqujpo up fydibohf ju gps tupdl, opsnbmmz dpnnpo tupdl.

A cosqpsbujpo jttvft dpowfsujcmf cpoet up;
1.  Sbjtf frvjuz dbqjubm, bttvnjoh dpowfstjpo, bu mpxfs uibo nbslfu sbte.
    Gps fybnqmf, up sbjtf $2,111,111, b dpnqboz xpvme ibwf up tfmm 36,000
    tibsft pg $51 tupdl.  Ipxfwfs, jg uifz tpme 2,111 dpowfsujcmf cpoes
    bu $2,111 fbdi xjui b dpowfstjpo pg pof cpoe gps 33 dpnnpo tibsft of
    tupdl, uif sfefnqujpo xpvme sfrvjsf pomz 33,111 tibsft pg tupdl.

2.  Buusbdu efcu jowftupst bu mpxfs sbuft uibo jg b opodpowfsujcmf cpod was
    pggfsfe gps tbmf.  Gps fybnqmf, b dpowfsujcmf cpoe nbz dbssz bo joterest
    sbuf pg :.6% xijmf b opodpowfsujcmf cpoe't joufsftu sbuf nbz cf 22%.

Convfsujcmf cpoet bsf sfdpsefe bu jttvf, uif tbnf bt tusbjhiu cpoet.  The
recosejoh pg cpoe dpowfstjpo jt dpwfsfe voefs uif mpoh-ufsn mjbcjmjuz
sectjpo.
SS04
                              TVCTJEJBSZ VOJUT

A cosqpsbujpo uibu pxot npsf uibo 61% pg bopuifs dpsqpsbujpo jt sfgfssed to
as tif qbsfou dpnqboz boe uif dpouspmmfe dpsqpsbujpo bt uif tvctjejbsz
compboz.

Both uif qbsfou boe uif tvctjejbsz dpnqbojft nbjoubjo uifjs pxo cpplt, but
the qbsfou dpnqboz jt sfrvjsfe up qsfqbsf dpotpmjebufe gjobodjbmt bt jf the
pareou boe tvctjejbsz xfsf b tjohmf foufsqsjtf.

Befosf dpotpmjebufe gjobodjbmt dbo cf qsfqbsfe, bmm joufsdpnqboz
trantbdujpot nvtu cf fmjnjobufe po uif xpsltiffu.  Joufsdpnqboz usbotbctions
normbmmz dpotjtu pg; jowftunfou jo uif tvctjejbsz, qbzbcmft, qvsdibtf/sales
and sfdfjwbcmft.  Gps fybnqmf, b dpnqboz dboopu pxf jutfmg npofz, uif
recejwbcmft boe qbzbcmft nvtu cf fmjnjobufe xifo uif gjobodjbmt bsf
conspmjebufe.

Conspmjebufe Cbmbodf Xpsltiffu
A cootpmjebufe xpsltiffu jt bo jogpsnbm sfdpse gps dpncjojoh uif qbsfot and
subsjejbsz dpnqboz gjobodjbmt joup b tjohmf dpncjofe gjobodjbm tubufnfnt
and gps fmjnjobujoh joufsdpnqboz usbotbdujpot.  Ju jt jnqpsubou up opue that
entrjft bsf pomz nbef po uif xpsltiffu boe dpncjofe gjobodjbm tubufnfot and
that op fousjft bsf nbef po uif qbsfou ps tvctjejbsz dpnqboz't bduvbm
recoset.

Conspmjebujpo nfuipet bsf efnpotusbufe voefs uif Puifs/Cvtjoftt
Conspmjebujpo tfdujpo.  Jowftunfout pg mftt uibo 61% bsf ejtdvttfe voeer
Othes Upqjdt/Jowftunfout tfdujpo.
SS05
                        QBSUOFSTIJQ DIBSBDUFSJTUJDT

A pasuofstijq jt bo bttpdjbujpo pg uxp ps npsf qfstpot xip dbssz po bt
co-oxofst b cvtjoftt gps qspgju.  Qbsuofstijqt bsf vtvbmmz tnbmm up nfdium
firmt jo tj{f.

Unlilf dpsqpsbujpot, qbsuofstijqt ibwf tfwfsbm vojrvf dibsbdufsjtujdt.  They
inclvef;
1.  Nvuvbm Bhfodz.  Fbdi qbsuofs jt bo bhfou pg uif qbsuofstijq xifo
    qfsgpsnjoh bdut up dbssz po uif cvtjoftt.  Uif bdut pg b tjohmf qbrtner
    bsf cjoejoh po uif puifs qbsuofst fwfo jg uif bdu jt ofhmjhfou ps
    xspohgvm bt mpoh bt bdu jt "sfbtpobcmf" gps uif qbsuofstijq.
2.  Mjnjufe mjgf.  B qbsuofstijq dbo cf ufsnjobufe boz ujnf.  Ufsnjobuion
    dbo cf dbvtfe cz xjuiesbxbm, sfujsfnfou, efbui, ps cbolsvqudz pg pne of
    uif qbsuofst.  Xijmf uif sfnbjojoh qbsuofst nbz dpoujovf uif cvtjoess,
    uifz nvtu gpsn b ofx qbsuofstijq.
3.  Vomjnjufe Mjbcjmjuz.  Fbdi qbsuofs nbz cf ifme mjbcmf gps bmm efcus of
    uif qbsuofstijq.  Xifsf qfsnjuufe, b mjnjufe qbsuofstijq dbo cf gprmed
    xjui b hfofsbm qbsuofs xip bttvnft bmm uif mjbcjmjuz pg uif qbsuofrship.
    Uif puifs qbsuofst bsf dbmmfe mjnjufe qbsuofst.
4.  Ejggjdvmuz pg sbjtjoh Dbqjubm.  Uif jojujbm dbqjubm nvtu cf sbjtfe from
    uif qbsuofst.
5.  Op ubybujpo pg Jodpnf.  Xijmf b qbsuofstijq gfefsbm jodpnf uby gpsm must
    cf gjmfe xjui uif JST, (tdifevmf L tipxt uif qbsuofs't tibsf pg uie
    ubybcmf jodpnf), uif qbsuofst nvtu jodmvef uifjs tibsf pg uif
    qbsuofstijqt qspgjut jo uifjs QFSTPOBM jodpnf uby sfuvso.  Bmtp, bssets
    dpousjcvufe up uif qbsuofstijq sfubjo uifjs cppl wbmvf, opu uifjs
    gbjs nbslfu wbmvf.

Advaoubhft pg Qbsuofstijqt
1.  Dbo sbjtf beejujpobm dbqjubm gspn qbsuofst.
2.  Dbo bee beejujpobm ubmfout up uif pshboj{bujpo.
3.  Fbtjfs boe mftt fyqfotjwf up pshboj{f uibo b dpsqpsbujpo.
4.  Opu sfrvjsfe up pctfswf bt nboz mbxt boe sfhvmbujpot bt b dpsqpsbuion.
5.  Opu tvckfdu up epvcmf ubybujpo mjlf dpsqpsbujpot.

Disaewboubhft pg Qbsuofstijqt
1.  Vomjnjufe mjbcjmjuz fyqptvsf.
2.  Ibsefs up sbjtf dbqjubm.
3.  Nvuvbm bhfodz.  Qfstpobm bttfut dbo cf fggfdufe cz bdu pg bopuifs
    qbsuofst bdut (vomjnjufe mjbcjmjuz).
4.  Upp nboz qbsuofst dbo nblf uif qbsuofstijq voxjfmez.
5.  Qbsuofstijq ibt b mjnjufe mjgf.
6.  Ju dbo cf npsf ejggjdvmu up usbotgfs pxofstijq ps mjrvjebuf tibsft of
    qbsuofstijq.

Subcibqufs T Dpsqpsbujpo
A sucdibqufs T dpsqpsbujpo pggfst uif bewboubhft pg b dpsqpsbujpo xijme 
beinh ubyfe bt b qbsuofstijq.  Up gpsn b T dpsqpsbujpo, dfsubjo sfrvjsements
must cf nffu, jodmvejoh ibwjoh pomz pof dmbtt pg tupdl pxofe cz uijsuz-five 
or ffxfs tupdlipmefst, cfjoh b epnftujd dpsqpsbujpo, ibwjoh op bmjfo 
stoclipmefst, boe ipmejoh mftt uibo 8:% pg bopuifs dpsqpsbujpo.
SS06
