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

      3 &amp;#8211; Stock-Based Compensation&lt;/b&gt;&lt;/font&gt;

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

      the second quarter of 2013, the Compensation Committee of our

      Board of Directors approved equity-based compensation to

      executive officers and other key employees. These awards

      included a grant of 714,879 shares of time-vesting restricted

      stock and restricted stock units, which vest equally over a

      three-year period. Non-employee directors received shares of

      restricted stock totaling 67,365 shares, which will vest in

      full on the first anniversary of the grant date. The fair

      value on the date of grant for both of these awards was

      $11.43 per share.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt; MARGIN: 0pt" id="PARA1457"&gt;

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

      497,658 stock options were granted to executive officers and

      other key employees at an exercise price of $11.43, which

      provides for equal vesting over a three-year period with a

      term of ten years. The estimated fair value of the stock

      options on the grant date using the Black-Scholes

      option-pricing model was $5.42. The assumptions used in the

      Black-Scholes model included a risk free interest rate of

      1.02%, expected life of 5.22 years and expected volatility of

      53.7%.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt; MARGIN: 0pt" id="PARA1459"&gt;

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

      Compensation Committee also approved performance-based awards

      during the second quarter of 2013 to executive officers. The

      performance-based restricted stock units will be settled in

      shares of common stock and will be based on the relative

      ranking of the Company&amp;#8217;s total shareholder return

      (&amp;#8220;TSR&amp;#8221;) as compared to the TSR of the

      Company&amp;#8217;s designated peer group for 2013. The

      performance period began May 3, 2013 and ends June 1, 2016,

      with the ending TSR price being equal to the average closing

      price of our shares over the 30-calendar days ending June 1,

      2016. A total of 149,532 performance restricted stock units

      were granted with the payout of shares for each executive

      ranging from 0%-150% of target. The estimated fair value of

      each restricted stock unit at the date of grant using the

      Monte Carlo valuation model was $13.11. The valuation was

      done as of June 3, 2013, which included a risk free interest

      rate of 0.52%, the average closing price of our shares over

      the 30-calendar days ending June 3, 2013 of $11.33 and

      expected volatility of 53.58%.&lt;/font&gt;

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