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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;&lt;b&gt;10.&lt;/b&gt;&amp;#160;&lt;/font&gt;

      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;&lt;b&gt;STOCK

      BASED COMPENSATION&lt;/b&gt;&amp;#160;&lt;/font&gt;

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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;During

      the first six months of 2013, we granted restricted stock

      awards totaling 308,539 shares valued at a total of $25.0

      million. Of the restricted stock awards granted in the first

      six months of 2013, a total of 264,557 awards vest in four

      equal annual installments beginning in February 2014, 30,314

      awards are performance based awards that may vest in February

      2016 in an amount that will depend on the Company&amp;#8217;s

      achievement of specified performance objectives, 9,880 awards

      vest 100% in May 2014 and 3,500 awards vest 100% in February

      2014. The 2013 performance based awards have a performance

      criteria that will be measured based upon the Company&amp;#8217;s

      achievement levels of average after-tax annual return on

      invested capital for the three year period commencing January

      1, 2013 and ending December 31, 2015. During the six months

      ended June 30, 2013, the Company also granted 71,500 units of

      phantom shares under the Canadian Long-Term Incentive Plan,

      which provides for the granting of units of phantom shares to

      key Canadian employees. These awards vest in three equal

      annual installments beginning in February 2014 and are

      accounted for as a liability until paid. Participants granted

      units of phantom shares are entitled to a lump sum cash

      payment equal to the fair market value of a share of the

      Company&amp;#8217;s common stock on the vesting date. A total of

      149,402 stock options with a ten-year term were awarded in

      the six months ended June 30, 2013 with an average exercise

      price of $80.25, a fair value of $4.2 million and that will

      vest in four equal annual installments starting in February

      2014.&lt;/font&gt;

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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;Stock

      based compensation pre-tax expense recognized in the six

      month periods ended June 30, 2013 and 2012 totaled $13.1

      million and $9.2 million, or $0.17 and $0.12 per diluted

      share after tax, respectively. Stock based compensation

      pre-tax expense recognized in the three month periods ended

      June 30, 2013 and 2012 totaled $6.8 million and $4.8 million,

      or $0.09 and $0.07 per diluted share after tax, respectively.

      The total fair value of restricted stock awards that vested

      during the six months ended June 30, 2013 and 2012 was $14.7

      million and $15.8 million, respectively. At June 30, 2013,

      $55.0 million of compensation cost related to unvested stock

      options and restricted stock awards attributable to future

      performance had not yet been recognized.&lt;/font&gt;

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