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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;2. Summary of Significant Accounting Policies&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The condensed consolidated financial statements have been prepared in accordance with
   accounting principles generally accepted in the United States of America, which we refer to as U.S.
   GAAP, and pursuant to the rules and regulations of the Securities and Exchange Commission, which we
   refer to as the SEC. The same accounting policies are followed for preparing the quarterly and
   annual financial information unless otherwise disclosed in the notes below.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The following accounting policies were adopted in the six months ended June&amp;#160;30, 2010:
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;i&gt;Consolidation &amp;#8212; &lt;/i&gt;In June and December&amp;#160;2009, the Financial Accounting Standards Board, which we
   refer to as the FASB, issued new accounting guidance that amends the consolidation guidance
   applicable to variable interest entities. The amendments affect the overall consolidation analysis
   under current accounting guidance. We adopted the new accounting guidance on January&amp;#160;1, 2010. The
   adoption of the new accounting guidance did not have a significant effect on our financial
   condition or results of operations.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;i&gt;Fair Value Measurements &amp;#8212; &lt;/i&gt;In January&amp;#160;2010, the FASB issued new accounting guidance that
   requires new disclosures related to fair value measurements. The new guidance requires separate
   disclosure for transfers between Levels 1 and 2 fair value hierarchies and the activities in the
   Level 3 reconciliation presented on a gross basis rather than as one net number for a particular
   line item. We adopted the new accounting guidance on January&amp;#160;1, 2010, except for the new
   disclosures related to Level 3 activities, which are effective for fiscal years and interim periods
   beginning after December&amp;#160;15, 2010. The new accounting guidance only amended the disclosure
   requirements related to fair value measurements; therefore the adoption did not have any impact on
   our financial condition or results of operations.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;&lt;i&gt;Recent Accounting Pronouncements&lt;/i&gt;&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In October&amp;#160;2009, the FASB issued new accounting guidance that amends the revenue recognition
   for multiple-element arrangements and expands the disclosure requirements related to such
   arrangements. The new guidance amends the criteria for separating consideration in
   multiple-deliverable arrangements, establishes a selling price hierarchy for determining the
   selling price of a deliverable, eliminates the residual method of allocation, and requires the
   application of relative selling price method in allocating the arrangement consideration to all
   deliverables. The new accounting guidance is effective for fiscal years beginning after June&amp;#160;15,
   2010. We are currently evaluating the impact of the new guidance on our financial condition and
   results of operations.
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      <ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef
 -Publisher AICPA
 -Name Accounting Principles Board Opinion (APB)
 -Number 22
 -Paragraph 8

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