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

          &lt;/p&gt;

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        &lt;td style="VERTICAL-ALIGN: top; WIDTH: 6.4%"&gt;

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

          &lt;/p&gt;

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        &lt;td style="VERTICAL-ALIGN: top; WIDTH: 83.6%"&gt;

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

            accompanying unaudited consolidated financial

            statements as of June 30, 2013&amp;#160;and for the six

            months ended June 30, 2013&amp;#160;and 2012&amp;#160;are

            unaudited and reflect all adjustments (consisting only

            of normal recurring adjustments) which are, in the

            opinion of management, necessary for a fair

            presentation of the financial position and operating

            results for the interim periods. The condensed

            consolidated financial statements should be read in

            conjunction with the consolidated financial statements

            and notes thereto, together with management's

            discussion and analysis of the financial condition and

            results of operations, contained in the Company&amp;#8217;s

            Annual Report on Form 10-K for the fiscal year ended

            December 31, 2012. The results of operations for the

            three and six months ended June 30, 2013&amp;#160;are not

            necessarily indicative of the results for the entire

            fiscal year ending December 31, 2013.&lt;/font&gt;

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

          &lt;/p&gt;

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

            significant accounting policies applied in the annual

            financial statements of the Company as of December 31,

            2012 are applied consistently in these financial

            statements. In addition, the following accounting

            policy is applied:&lt;/font&gt;

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          &amp;#160;

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          &amp;#160;

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        &lt;td style="VERTICAL-ALIGN: top; WIDTH: 83.6%"&gt;

          &amp;#160;

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

          &lt;/p&gt;

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

            for stock-based compensation:&lt;/font&gt;

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

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

            Company has several stock-based employee compensation

            plans, which are described more fully in Note 4. The

            Company accounts for stock-based compensation in

            accordance with Accounting Standards Codification

            Statement ("ASC") 718 (formerly SFAS No. 123 (revised

            2004)) "Stock compensation" ("ASC 718").&lt;/font&gt;

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

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

            Company and its subsidiary apply ASC 718 and ASC 505-50

            (formerly EITF 96-18) "Equity-Based Payments to

            Non-Employees" ("ASC 505-50") to options issued to

            non-employees. ASC 718 requires use of an option

            valuation model to measure the fair value of the

            options at the grant date.&lt;/font&gt;

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