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<SEC-DOCUMENT>0001206774-08-000945.txt : 20080502
<SEC-HEADER>0001206774-08-000945.hdr.sgml : 20080502
<ACCEPTANCE-DATETIME>20080502173033
ACCESSION NUMBER:		0001206774-08-000945
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20080612
FILED AS OF DATE:		20080502
DATE AS OF CHANGE:		20080502
EFFECTIVENESS DATE:		20080502

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SHOE CARNIVAL INC
		CENTRAL INDEX KEY:			0000895447
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-SHOE STORES [5661]
		IRS NUMBER:				351736614
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			0202

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21360
		FILM NUMBER:		08800209

	BUSINESS ADDRESS:	
		STREET 1:		7500 EAST COLUMBIA STREET
		CITY:			EVANSVILLE
		STATE:			IN
		ZIP:			47715
		BUSINESS PHONE:		8128676471

	MAIL ADDRESS:	
		STREET 1:		7500 EAST COLUMBIA STREET
		CITY:			EVANSVILLE
		STATE:			IN
		ZIP:			47715
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>shoecarnival_nps.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>

<HTML>
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   <TITLE></TITLE>
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<P align=center><B><FONT face=sans-serif size=2>SCHEDULE 14A
INFORMATION<BR></FONT></B><B><FONT face=sans-serif size=2>Proxy Statement
Pursuant to Section 14(a) of the Securities Exchange Act of 1934<BR>(Amendment
No. ___)</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"><FONT face=sans-serif size=2>Filed by the
      Registrant</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%"><FONT face=sans-serif size=2>[</FONT>&nbsp; <FONT face=sans-serif size=2>X<FONT face="Times New Roman" size=3>&nbsp; </FONT>]</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%"><FONT face=sans-serif size=2>Filed by a Party
      other than the Registrant</FONT>&nbsp; </TD>
    <TD noWrap align=center width="2%"><FONT face=sans-serif size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=sans-serif size=2>]</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="99%" colSpan=3><FONT face=sans-serif size=2>Check the appropriate box:</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="2%"><FONT face=sans-serif size=2>[<FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=sans-serif size=2>]</FONT></FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="96%"><FONT face=sans-serif size=2>Preliminary
      Proxy Statement</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="2%"><FONT face=sans-serif size=2>[<FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=sans-serif size=2>]</FONT></FONT></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="96%"><FONT face=sans-serif size=2>Confidential,
      for Use of the Commission Only (as permitted by Rule
      14a-6(e)(2))</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="2%"><FONT face=sans-serif size=2>[<FONT face="Times New Roman" size=3>&nbsp; </FONT><FONT face=sans-serif size=2>X<FONT face="Times New Roman" size=3>&nbsp; </FONT>]</FONT></FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;
</TD>
    <TD noWrap align=left width="96%"><FONT face=sans-serif size=2>Definitive Proxy
      Statement</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="2%"><FONT face=sans-serif size=2>[<FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=sans-serif size=2>]</FONT></FONT></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="96%"><FONT face=sans-serif size=2>Definitive
      Additional Materials</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="2%"><FONT face=sans-serif size=2>[<FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=sans-serif size=2>]</FONT></FONT></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="96%"><FONT face=sans-serif size=2>Soliciting
      Material Pursuant to &#167;240.14a-12</FONT>&nbsp; </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="99%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>SHOE CARNIVAL, INC.</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>(Name of Registrant as Specified In Its
      Charter)</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="99%">&nbsp; </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" width="99%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="99%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>(Name of Person(s) Filing Proxy
      Statement if other than the
Registrant)</FONT>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top align=left width="99%" colSpan=5><FONT face=sans-serif size=2>Payment of Filing Fee (Check the appropriate
      box):</FONT>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="96%" colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%"><FONT face=sans-serif size=2>[</FONT><FONT face="Times New Roman" size=3>&nbsp; </FONT><FONT face=sans-serif size=2>X<FONT face="Times New Roman" size=3>&nbsp; </FONT>]</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top align=left width="96%" colSpan=3><FONT face=sans-serif size=2>No fee required.<FONT face="Times New Roman" size=3>&nbsp;</FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%"><FONT face=sans-serif size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=sans-serif size=2>]</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="96%" colSpan=3><FONT face=sans-serif size=2>Fee computed on table below per Exchange Act Rules
      14a-6(i)(1) and 0-11.<FONT face="Times New Roman" size=3>&nbsp;</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=center width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="94%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face=sans-serif size=2>1)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="94%"><FONT face=sans-serif size=2>Title of each class of securities to which
      transaction applies:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=center width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="94%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face=sans-serif size=2>2)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="94%"><FONT face=sans-serif size=2>Aggregate number of securities to which transaction
      applies:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=center width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="94%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT size=2 face=sans-serif>3)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top align=left width="94%"><FONT face=sans-serif size=2>Per unit price or other underlying value of
      transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the
      amount on which the filing fee is calculated and state how it was
      determined):</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="94%"><FONT face=sans-serif size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face=sans-serif size=2>4)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="94%"><FONT face=sans-serif size=2>Proposed maximum aggregate value of
      transaction:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=center width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="94%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT size=2 face=sans-serif>5)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="94%"><FONT face=sans-serif size=2>Total fee paid:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=center width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="94%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%"><FONT face=sans-serif size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=sans-serif size=2>]</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="96%" colSpan=3><FONT face=sans-serif size=2>Fee paid previously with preliminary
      materials.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%"><FONT face=sans-serif size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=sans-serif size=2>]</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="96%" colSpan=3><FONT face=sans-serif size=2>Check box if any part of the fee is offset as
      provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which
      the offsetting fee was paid previously. Identify the previous filing by
      registration statement number, or the Form or Schedule and the date of its
      filing.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="2%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="96%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="2%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT size=2 face=sans-serif>1)</FONT></TD>
    <TD vAlign=top align=left width="1%">&nbsp;</TD>
    <TD vAlign=top align=left width="94%"><FONT face=sans-serif size=2>Amount Previously Paid:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="94%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="2%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT size=2 face=sans-serif>2)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="94%"><FONT face=sans-serif size=2>Form, Schedule or Registration Statement
    No.:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="94%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="2%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT size=2 face=sans-serif>3)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="94%"><FONT face=sans-serif size=2>Filing Party:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="94%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="2%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT size=2 face=sans-serif>4)</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="94%"><FONT face=sans-serif size=2>Date Filed:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="2%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top align=left width="94%">&nbsp;</TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P><IMG src="shoecarnival_nps1x2x1.jpg" border=0> <BR></P>
<P align=left><FONT face=sans-serif size=2>&nbsp;<BR>May 5, 2008</FONT></P>
<P align=left><FONT face=sans-serif size=2>Dear Shareholder:</FONT></P>
<P align=left><FONT face=sans-serif size=2>On behalf of the Board of Directors
and management, we wish to extend an invitation to you to attend our 2008 annual
meeting of shareholders to be held on Thursday, June 12, 2008 at the corporate
headquarters for Shoe Carnival, Inc. located at 7500 East Columbia Street,
Evansville, Indiana. The meeting will begin promptly at 9:00 a.m.
C.D.T.</FONT></P>
<P align=left><FONT face=sans-serif size=2>In addition to the matters described
in the Notice of Annual Meeting of Common Shareholders and Proxy Statement, I
will be providing a report on the financial position of the Company and opening
the floor for questions from shareholders.</FONT></P>
<P align=left><FONT face=sans-serif size=2>The members of the Board and
management look forward to your attendance. However, whether or not you plan to
attend personally, and regardless of the number of shares you own, it is
important that your shares be represented. Please be sure you are represented at
the meeting by signing, dating and mailing your proxy card promptly. A
postage-paid return envelope is enclosed for your convenience.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Thank you for your ongoing support of
and continued interest in Shoe Carnival.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Sincerely,</FONT></P><IMG src="shoecarnival_nps1x2x2.jpg" border=0><BR>
<P align=left><FONT face=sans-serif size=2>Mark L. Lemond<BR></FONT><FONT face=sans-serif size=2>President and Chief Executive Officer</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=sans-serif size=5>SHOE CARNIVAL,
INC.</FONT></B></P>
<P align=center><B><FONT face=sans-serif>NOTICE OF ANNUAL MEETING OF COMMON
SHAREHOLDERS<BR>TO BE HELD ON JUNE 12, 2008</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
annual meeting of common shareholders of Shoe Carnival, Inc. (the "Company")
will be held at the Company's corporate headquarters located at 7500 East
Columbia Street, Evansville, Indiana, on Thursday, June 12, 2008, at 9:00 a.m.,
C.D.T., for the following purposes:</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>(1) To elect two directors to serve until the 2011 annual
meeting of shareholders and until their successors are elected and have
qualified, as set forth in the accompanying proxy statement;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>(2) To ratify the appointment of Deloitte &amp; Touche
LLP as the independent registered public accounting firm for the Company for
fiscal 2008;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>(3) To approve a proposed amendment to the Shoe Carnival,
Inc. 2000 Stock Option and Incentive Plan; and</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(4) To
transact such other business as may properly come before the meeting.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>All common shareholders of record at
the close of business on April 25, 2008 will be eligible to vote.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>It
is important that your stock be represented at this meeting. Whether or not you
expect to be present, please fill in, date, sign and return the enclosed proxy
form in the accompanying addressed, postage-paid envelope. If you attend the
meeting, your proxy will be canceled at your request.</FONT></B></P>
<P align=left><STRONG><FONT face=sans-serif size=2>&nbsp;</FONT></STRONG></P>
<DIV align=right>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="100%"><FONT face=sans-serif size=2>David A. Kapp,
      Secretary</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=sans-serif>TABLE OF CONTENTS</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=left width="91%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right width="8%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Proxy Q &amp; A</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>1</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=sans-serif size=2>Proposal No. 1
      Election of Directors</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>4</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Information Regarding the Board of Directors and
      Committees</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>5</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=sans-serif size=2>Code of Business
      Conduct and Ethics</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>7</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Section 16(a) Beneficial Ownership Reporting
      Compliance</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>7</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=sans-serif size=2>Executive and
      Director Compensation</FONT>&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Compensation Discussion and
      Analysis</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>7</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Compensation Committee
      Report</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>14</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Summary Compensation Table</FONT>&nbsp;
    </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>15</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Grants of Plan-Based
      Awards</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>16</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Outstanding Equity Awards at Fiscal
      Year-End</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>18</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Option Exercises and Stock Vested in
      Fiscal 2007</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>19</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Equity Compensation Plan
      Information</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>19</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Nonqualified Deferred
      Compensation</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>20</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Termination and Change-in-Control
      Arrangements</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>21</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Compensation of Non-Employee
      Directors</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>25</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Proposal No. 2 Ratification of Our Independent
      Registered Public Accounting Firm</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>26</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=sans-serif size=2>Audit Committee
      Matters</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>26</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Transactions with Related Persons</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>27</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=sans-serif size=2>Proposal No. 3
      Approval of Proposed Amendment to the Shoe Carnival, Inc. 2000 Stock
      Option</FONT>&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>and Incentive Plan</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>28</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Principal Shareholders</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>33</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=sans-serif size=2>Shareholder
      Proposals for 2009 Annual Meeting</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>34</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Shareholder Communications</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>34</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=sans-serif size=2>Incorporation by
      Reference</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>35</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Annual Reports</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=2>35</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=sans-serif size=2>Appendix
      A</FONT>&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>A-1</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Proxy Card</FONT>&nbsp; </TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0>&nbsp;
    </TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=sans-serif size=5>SHOE CARNIVAL,
INC.<BR></FONT></B><B><FONT face=sans-serif>7500 East Columbia
Street<BR>Evansville, Indiana 47715</FONT></B></P>
<P align=center><B><FONT face=sans-serif>PROXY STATEMENT<BR></FONT></B><B><FONT face=sans-serif>Annual Meeting of Common Shareholders</FONT></B></P>
<P align=center><B><FONT face=sans-serif>June 12, 2008</FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Why am I receiving these proxy
materials?</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>We are
providing these proxy materials to you in connection with the solicitation by
the Board of Directors of Shoe Carnival, Inc. (the "Company," "we", "us" or
"our") for proxies to be voted at our annual meeting of common shareholders. We
are holding this annual meeting at 9:00 a.m., C.D.T., on Thursday, June 12,
2008, at our corporate headquarters located at 7500 East Columbia Street,
Evansville, Indiana. The approximate date on which these proxy materials are
first being sent to shareholders is on or about May 5, 2008.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>What proposals will be voted on at
the annual meeting?</FONT></B></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>There are three proposals scheduled
to be voted on at the annual meeting:</FONT></P>
<UL>
  <LI><FONT face=sans-serif size=2>To elect two directors to serve until the
  2011 annual meeting of shareholders and until their successors are elected and
  have been qualified;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>To ratify the appointment of Deloitte &amp;
  Touche LLP as our independent registered public accounting firm for fiscal
  2008; and<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>To approve a proposed amendment to the Shoe
  Carnival, Inc. 2000 Stock Option and Incentive Plan.</FONT></LI></UL>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>In
addition, any other business that may properly come before the annual meeting
will be considered and voted on. The Board of Directors currently knows of no
additional business that is to be brought before the meeting. However, if other
matters properly come before the meeting, the persons indicated on the enclosed
proxy will vote that proxy based on their judgment on such matters.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>How does the Board of Directors
recommend that I vote on the proposals? </FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
Board of Directors recommends that you vote your shares "FOR" the election of
Messrs. J. Wayne Weaver and Gerald W. Schoor as directors (Proposal 1), "FOR"
the ratification of the appointment of Deloitte &amp; Touche LLP as our
independent registered public accounting firm for fiscal 2008 (Proposal 2), and
"FOR" the proposed amendment to our 2000 Stock Option and Incentive Plan
(Proposal 3).</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Who may vote?</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>You may
vote at the annual meeting or by proxy if you were a shareholder of record at
the close of business on April 25, 2008, the record date for the meeting. As of
April 25, 2008, there were 12,615,329 shares of our common stock outstanding and
entitled to vote at the meeting. On all matters, including the election of the
directors, each common shareholder will have one vote for each share
held.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-1-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=sans-serif size=2>What constitutes a quorum for the
annual meeting?</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>In
order to constitute a quorum, a majority of the votes entitled to be cast at the
annual meeting must be present either in person or by proxy. Abstentions and
broker non-votes will be considered as present for the purpose of determining a
quorum.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>It is
possible that a proxy would indicate that not all shares represented by it are
being voted for specific proposals. For example, a broker cannot vote shares
held in street name on certain proposals when the owner of those shares has not
provided instructions on how he or she would like them to be voted.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>What vote is required for each of
the proposals to be approved?</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>For
Proposal 1, the directors receiving a plurality of the votes cast "FOR" will be
elected. Neither abstentions nor broker non-votes will affect the outcome of
this proposal.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Proposal 2 will be approved if more shares are voted "FOR" the proposal
than "AGAINST". Neither abstentions nor broker non-votes will affect the outcome
of this proposal.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Proposal 3 will be approved if the number of shares voted "FOR" the
proposal represent a majority of the total votes cast on the proposal. Broker
non-votes will have no effect, but abstentions will have the same effect as a
vote "AGAINST" this proposal.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>How do I vote my
shares?</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=sans-serif size=2>Voting of Shares Registered Directly in the Name of the
Shareholder</FONT></I><FONT face=sans-serif size=2>. If you hold shares of our
common stock in your own name as the holder of record, you may vote your shares
by signing, dating and mailing the proxy card in the postage-paid envelope that
has been provided to you. Shares held directly in your name as the shareholder
of record may also be voted in person at the annual meeting. If you choose to
vote in person at the meeting, please bring proof of identification. Even if you
plan to attend the annual meeting, we recommend that you vote your shares in
advance so that your vote will be counted if you later decide not to attend the
meeting.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=sans-serif size=2>Voting of Shares Registered in the Name of a Brokerage Firm or
Bank</FONT></I><FONT face=sans-serif size=2>. If your shares of our common stock
are held in "street name" through a brokerage account or by a bank or other
nominee, you will receive instructions from your nominee which you must follow
in order to have your shares voted. If you are a "street name" shareholder and
you wish to vote in person at the annual meeting, you must obtain a legal proxy
from your nominee giving you the right to vote the shares. Even if you plan to
attend the annual meeting, we recommend that you vote your shares in advance so
that your vote will be counted if you later decide not to attend the
meeting.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>What if I return my proxy but do
not provide voting instructions?</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Your
shares will be voted in accordance with your instructions as specified on your
proxy card. If you sign and return your proxy card but do not give voting
instructions, your shares will be voted "FOR" the election of both nominees
listed under Proposal 1 and "FOR" Proposals 2 and 3. If any other matters
properly come before the meeting, the persons indicated on the enclosed proxy
will vote that proxy based on their judgment on such matters.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-2-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=sans-serif size=2>May I revoke my
proxy?</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>If you
have executed and submitted your proxy, you may still revoke it at any time as
long as it has not been exercised. Your proxy may be revoked by giving written
notice of revocation to us, executing a subsequently dated proxy that is
delivered to us, or attending the annual meeting and voting in
person.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>How are votes
counted?</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Votes
cast by proxy or in person at the annual meeting will be counted and certified
by representatives of our transfer agent, Computershare Trust Company
N.A.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Where can I find the voting
results of the annual meeting?</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>We will
announce preliminary voting results at the annual meeting and publish final
results in our Quarterly Report on Form 10-Q for the second quarter of fiscal
2008.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Who pays for the cost of proxy
preparation and solicitation?</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
cost of this solicitation of proxies will be borne by us. Proxies may also be
solicited personally or by telephone, facsimile transmission or other electronic
means of communication by our employees acting without additional
compensation.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-3-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=sans-serif>PROPOSAL NO. 1<BR>ELECTION OF
DIRECTORS</FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Nominees and Director
Information</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>We
currently have five directors divided into three classes. Each director holds
office for a three-year term expiring at the annual meeting of shareholders held
in the year that is three years after his election and thereafter until his
successor is elected and qualified.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
shareholders will be asked to elect two directors. J. Wayne Weaver and Gerald W.
Schoor have been nominated by the Board of Directors, upon the recommendation of
the Nominating and Corporate Governance Committee, for election as directors for
a term to expire at the 2011 annual meeting of shareholders and until their
successors are elected and qualified. Mr. Weaver has served as a director since
1988 and Mr. Schoor has served as a director since 1993.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=center width="24%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="30%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>Shares</FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="10%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="24%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="5%">&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="30%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="10%">&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>Beneficially</FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="10%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="24%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="30%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>Present</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="15%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>Owned on</FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="10%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="24%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="30%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>Principal</FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="10%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>Director</FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="15%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>March 18,</FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="10%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>Percent of</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="24%">&nbsp;<FONT face=sans-serif size=2>Name</FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>Age</FONT>
    </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="30%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>Occupation</FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>Since</FONT>
    </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>2008(1)</FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%"><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>Class</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" bgColor=#c0c0c0 colSpan=11><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>NOMINEES FOR
      DIRECTOR</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" bgColor=#c0c0c0 colSpan=11><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>(Nominees
      for a three-year term to expire at the annual meeting of shareholders in
      2011)</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0><FONT face=sans-serif size=2>J. Wayne Weaver</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>73</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Chairman of the Board of the</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>1988</FONT>
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=sans-serif size=2>3,333,230</FONT>
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=2>(2)</FONT> </TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=2>26.4%</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Company and Chairman and Chief</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Executive Officer of Jacksonville</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Jaguars, LTD (professional football</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>franchise) (3)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Gerald W. Schoor</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>73</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Merchant Banker</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>1993</FONT>
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=sans-serif size=2>10,000</FONT>
</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=2>(4)<FONT face="Times New Roman" size=3> </FONT></FONT></TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=2>*</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>(self-employed) (5)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" bgColor=#c0c0c0 colSpan=11><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>DIRECTORS
      CONTINUING IN OFFICE</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" bgColor=#c0c0c0 colSpan=11><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>(Term
      expiring at the annual meeting of shareholders in 2009)</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0><FONT face=sans-serif size=2>William E. Bindley</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>67</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Chairman of the Board of Bindley</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>1993</FONT>
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=sans-serif size=2>8,000</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=2>(6)<FONT face="Times New Roman" size=3> </FONT></FONT></TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=2>*</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Capital Partners, LLC (private equity</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>investment fund) (7)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Kent A. Kleeberger</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>56</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Chief Financial Officer and Treasurer</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>2003</FONT>
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=sans-serif size=2>3,000</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=2>(8)<FONT face="Times New Roman" size=3> </FONT></FONT></TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=2>*</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>of Chico's FAS Inc. (specialty apparel</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>retailer) (9)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" bgColor=#c0c0c0 colSpan=11><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>DIRECTOR
      CONTINUING IN OFFICE</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" bgColor=#c0c0c0 colSpan=11><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>(Term
      expiring at the annual meeting of shareholders in 2010)</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Mark L. Lemond</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>53</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>President and Chief Executive Officer</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT>1988</FONT>
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=sans-serif size=2>675,767</FONT>
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=2>&nbsp;(10)</FONT> </TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=2>5.2%</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=sans-serif size=2>of the Company</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=center><FONT face=sans-serif size=2>-4-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<BR>____________________<BR>&nbsp;<BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>*</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=2>Less than
    1%</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD noWrap></TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>(1)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=2>Includes shares subject to
      options that are presently exercisable (i.e., within 60 days after March
      18, 2008).</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>(2)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=2>Includes 1,666,615 shares
      directly owned by Mr. Weaver's spouse.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>(3)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=2>Mr. Weaver also serves as
      the managing member of LC Footwear, LLC, a footwear distributor. From 1978
      until February 2, 1993, Mr. Weaver's principal occupation was as president
      and chief executive officer of Nine West Group, Inc., a designer,
      developer and marketer of women's footwear. From November 2000 until April
      2008, Mr. Weaver also served on the Board of Directors of Stein Mart,
      Inc., a chain of off-price retail stores.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>(4)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=2>Includes 3,000 shares held
      as co-trustee for the benefit of Mr. Schoor's spouse and 6,000 shares
      issuable upon the exercise of presently exercisable options granted under
      our Outside Directors Stock Option Plan.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>(5)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=2>Prior to January 1997, Mr.
      Schoor was employed as president of Corporate Finance Associates, St.
      Louis, a financial intermediary, and as executive vice president of
      National Industrial Services, Inc., an industrial asset management
      company.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>(6)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=2>Includes 6,000 shares
      issuable upon the exercise of presently exercisable options granted under
      our Outside Directors Stock Option Plan.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>(7)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=2>From 1968 until February
      2001, Mr. Bindley's principal occupation was chairman of the board and
      chief executive officer of Bindley Western Industries, Inc., a
      pharmaceutical wholesale distribution company. From July 1994 until
      October 2005, Mr. Bindley served as chairman of the board for Priority
      Healthcare Corporation, a specialty pharmacy and pharmaceutical
      distributor, and from July 1994 until May 1997, he also served as chief
      executive officer. Mr. Bindley also serves on the board of directors of
      Kite Realty Group Trust, a real estate company.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>(8)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=2>Includes 1,000 shares
      issuable upon the exercise of presently exercisable options granted under
      our Outside Directors Stock Option Plan.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>(9)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=2>Since October 2007, Mr.
      Kleeberger has served as chief financial officer and treasurer of Chico's
      FAS Inc., a specialty apparel retailer. From July 2004 until September
      2007, Mr. Kleeberger served as senior vice president and chief financial
      officer for Dollar Tree Stores, Inc., a single price-point retailer. From
      March 1998 until June 2004, Mr. Kleeberger served in various financial
      positions with Tween Brands, Inc. (formerly Too, Inc.), an apparel
      retailer, most recently as executive vice president, chief financial
      officer, treasurer and secretary.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>(10)</FONT></TD>
    <TD noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face=sans-serif size=2>Includes 11,500 shares
      directly owned by Mr. Lemond's spouse, 41,000 shares of restricted stock
      as to which Mr. Lemond has voting but not dispositive power and 275,000
      shares issuable upon the exercise of presently exercisable options granted
      under our 1993 Stock Option and Incentive Plan ("1993 Stock Option Plan")
      and our 2000 Stock Option and Incentive Plan ("2000 Stock Option
      Plan").</FONT></TD></TR></TABLE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Unless
otherwise indicated in a footnote to the preceding table, the principal
occupation of each director has been the same for the last five years, and each
director possesses sole voting and investment power with respect to the shares
of common stock indicated as beneficially owned by him. There is no family
relationship between any of our directors or executive officers.</FONT></P>
<P align=center><B><FONT face=sans-serif size=2>The Board of Directors
recommends a vote FOR the director nominees listed above.</FONT></B></P>
<P align=center><B><FONT face=sans-serif>INFORMATION REGARDING THE BOARD
OF<BR>DIRECTORS AND COMMITTEES</FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Director
Independence</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>A
majority of the directors are "independent directors" as defined by the listing
standards of The NASDAQ Stock Market LLC ("NASDAQ"), and the Board of Directors
has determined that such independent directors have no relationship with us that
would interfere with the exercise of their independent judgment in carrying out
the responsibilities of a director. The independent directors are Messrs.
Bindley, Kleeberger and Schoor. Mr. Schoor has been designated as the Lead
Director, and presides at all executive sessions of the non-management
directors.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-5-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=sans-serif size=2>Meetings and
Committees</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>During
fiscal 2007, the Board of Directors held four meetings. Each director during
fiscal 2007 attended at least 75% of the total board meetings and the meetings
of the respective committees on which he served. Directors are expected to
attend the annual meeting of shareholders each year, and each of our directors
attended our 2007 annual meeting of shareholders.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
Board of Directors has an Audit Committee, a Compensation Committee, and a
Nominating and Corporate Governance Committee. Each of the committees operates
pursuant to a written charter, which can be viewed on our website at
www.shoecarnival.com under
Investors--Corporate Governance.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Audit Committee</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
Audit Committee is comprised of our three non-employee directors: Messrs.
Kleeberger (Chair), Bindley and Schoor. Our Board of Directors has established
the Audit Committee in accordance with Section 3(a)(58)(A) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). The Board of Directors
and the Audit Committee believe that the Audit Committee's current member
composition satisfies the listing standards of NASDAQ governing audit committee
composition, including the requirement that the audit committee members all be
"independent" directors, as that term for audit committee members is defined in
the listing standards of NASDAQ and Rule 10A-3 of the Exchange Act. The Board of
Directors has also determined that Mr. Kleeberger qualifies as the "audit
committee financial expert" as defined by the Securities and Exchange Commission
rules adopted pursuant to the Sarbanes-Oxley Act of 2002. The Audit Committee
met eight times during fiscal 2007, with four of these meetings being conducted
via teleconference. The Audit Committee is solely responsible for the selection
and hiring of the independent registered public accounting firm to audit our
books and records and preapproves audit and permitted non-audit services
undertaken by the independent registered public accounting firm. The Audit
Committee is also responsible for the review of our (i) financial reports and
other financial information, (ii) systems of internal controls regarding
finance, accounting, legal compliance and ethics, and (iii) auditing, accounting
and financial reporting processes. The Audit Committee also approves all
related-person transactions, including our relationships with LC Footwear, LLC
and PL Footwear, Inc described under "Transactions with Related Persons &#150;
Current Transactions". The Audit Committee meets with management and our
independent registered public accounting firm as necessary.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Compensation
Committee</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
Compensation Committee consists of our three non-employee directors: Messrs.
Bindley (Chair), Kleeberger and Schoor. Each of the members of the Compensation
Committee is "independent", as such term for compensation committee members is
defined in the listing standards of NASDAQ, each is a "Non-Employee Director" as
defined in Rule 16b-3 under the Exchange Act and each is an "Outside Director"
as defined by the regulations under Section 162(m) of the Internal Revenue Code
of 1986, as amended (the "Code"). The </FONT><FONT face=sans-serif size=2>Compensation Committee held three meetings during fiscal 2007. The
Compensation Committee is responsible for reviewing, determining and
establishing the salaries, bonuses and other compensation of our executive
officers and directors. The Compensation Committee also administers our 1993
Stock Option Plan, 2000 Stock Option Plan, Employee Stock Purchase Plan and 2006
Executive Incentive Compensation Plan. For a description of the role of our
management in setting compensation, see "Executive and Director Compensation &#150;
Compensation Discussion and Analysis".</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>During
fiscal 2007, none of the Compensation Committee members were involved in a
relationship requiring disclosure as an interlocking executive officer/director
or as our former officer or employee. In addition, none of the Compensation
Committee members was involved in a relationship requiring disclosure under Item
404(a) of Regulation S-K.</FONT></P>

<P align=center><FONT face=sans-serif size=2>-6-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=sans-serif size=2>Nominating and Corporate
Governance Committee</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
Nominating and Corporate Governance Committee (the "Nominating Committee")
consists of our three non-employee directors: Messrs. Schoor (Chair), Bindley
and Kleeberger. Each member of the Nominating Committee is "independent," as
such term for nominating committee members is defined in the listing standards
of NASDAQ. The Nominating Committee met three
times during fiscal 2007. The Nominating Committee exercises a leadership role
in shaping our corporate governance and recommends to the Board of Directors
corporate governance principles on a number of topics, including (i) Board
organization, membership and function, (ii) committee structure and membership,
and (iii) oversight of evaluation of the Board. As the nominating body of the
Board, the Nominating Committee also interviews, evaluates, nominates and
recommends individuals for membership on the Board and on the various committees
of the Board. The Nominating Committee identifies potential nominees for
director based on specified objectives in terms of the composition of the Board,
taking into account such factors as areas of expertise and geographic,
occupational, gender, race and age diversity. </FONT><FONT face=sans-serif size=2>Nominees will be evaluated on the basis of their experience, judgment,
integrity, ability to make independent inquiries, understanding of the Company
and willingness to devote adequate time to Board duties.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
Nominating Committee also will consider director candidates recommended by
shareholders. A shareholder who wishes to recommend a director candidate for
consideration by the Nominating Committee should send such recommendation to our
Secretary at 7500 East Columbia Street, Evansville, Indiana 47715, who will
forward it to the Nominating Committee. Any such recommendation should include a
description of the candidate's qualifications for board service, the candidate's
written consent to be considered for nomination and to serve if nominated and
elected, and addresses and telephone numbers for contacting the shareholder and
the candidate for more information. A shareholder who wishes to nominate an
individual as a director candidate at an annual meeting of shareholders, rather
than recommend the individual to the Nominating Committee as a nominee, must
comply with the advance notice requirements set forth in our by-laws, a copy of
which may be obtained from our Secretary. A summary of such requirements is
provided in this proxy statement under "Shareholder Proposals for 2009 Annual
Meeting".</FONT></P>
<P align=center><B><FONT face=sans-serif>CODE OF BUSINESS CONDUCT AND
ETHICS</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>We have
adopted a Code of Business Conduct and Ethics (the "Ethics Code") that applies
to all of our directors, officers and employees, including our principal
executive officer, principal financial and accounting officer, and controller.
The Ethics Code is posted on our website at www.shoecarnival.com under Investors--Corporate Governance. We intend to disclose any
amendments to the Ethics Code by posting such amendments on our website. In
addition, any waivers of the Ethics Code for our directors or executive officers
will be disclosed in a report on Form 8-K.</FONT></P>
<P align=center><B><FONT face=sans-serif>SECTION 16(A) BENEFICIAL OWNERSHIP
REPORTING COMPLIANCE</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Section
16(a) of the Exchange Act requires our executive officers and directors, and
persons who own more than 10% of our common stock, to file initial reports of
ownership and reports of changes in ownership with the Securities and Exchange
Commission. Such persons are required by Securities and Exchange Commission
regulations to furnish us with copies of all Section 16(a) forms they
file.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Based
solely on a review of the copies of such forms furnished to us and written
representations from certain reporting persons, we believe that during fiscal
2007 all filing requirements applicable to our executive officers, directors and
greater than 10% shareholders were timely satisfied, except that Messrs. Baker,
Jackson and Sifford each did not report the 1,011 shares withheld by us to cover
the associated tax liability of restricted shares that vested on March 31, 2007
until March 20, 2008 due to administrative error.</FONT></P>
<P align=center><B><FONT face=sans-serif>EXECUTIVE AND DIRECTOR
COMPENSATION</FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Compensation Discussion and
Analysis</FONT></B></P>
<P align=left><U><FONT face=sans-serif size=2>Overview</FONT></U></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We are one of the nation&#146;s largest
family footwear retailers, offering customers a broad assortment of moderately
priced dress, casual and athletic footwear for men, women and children with
emphasis on national and regional name brands. We differentiate ourself from our
competitors by our distinctive, highly promotional in-store marketing effort and
large stores that average 11,300 square feet, generate an average of
approximately $2.4 million in annual sales and
house an average inventory of approximately 29,000 pairs of shoes per location.
As of February 2, 2008, we operated 291 stores in 27 states primarily in the
Midwest, South and Southeast regions of the United States.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-7-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>This
Compensation Discussion and Analysis is intended to supplement the more detailed
information concerning executive compensation that appears in the tables and the
narrative discussion that follows the tables. Our goal is to provide
shareholders with a better understanding of our compensation policies and
programs and the material decisions made under those policies and programs that
affect the compensation payable to our executive officers, including our Chief
Executive Officer, Chief Financial Officer, Chairman of the Board and two
additional executive officers named in the Summary Compensation Table (our
"Executives").</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our Compensation Committee is
responsible for establishing our compensation philosophy and strategies and has
overall responsibility for approving and evaluating the director and officer
compensation plans, policies and programs. Annually, the Compensation Committee
reviews and approves corporate goals and objectives relevant to Executive
compensation, evaluates each Executive&#146;s individual performance as well as their
collective performance in light of these goals and objectives, and sets
compensation levels based on its evaluation. The Compensation Committee believes
that its obligation is to structure programs that best serve our interests and
the interests of our shareholders. The Compensation Committee currently consists
of three directors, none of whom is a current or former employee and each of who
are deemed independent as defined in the listing standards of NASDAQ. The report
of the Compensation Committee immediately follows this discussion.</FONT></P>
<P align=left><U><FONT face=sans-serif size=2>Compensation Philosophy and
Objectives of the Overall Compensation Program</FONT></U></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our compensation philosophy is to
design programs to attract, retain and motivate the finest talent possible for
all levels of the organization. In addition, the programs are designed to
maintain a performance and achievement-oriented environment, to be
cost-competitive, to treat all employees fairly and to maximize the tax
deductibility of employee compensation. All programs have the following
characteristics:</FONT></P>
<UL>
  <LI><FONT face=sans-serif size=2>Compensation is based on the level of job
  responsibility, the individual's level of performance and the Company's
  overall performance. As employees assume greater responsibility, a larger
  portion of their total compensation should be "at risk" incentive compensation
  (both annual and long-term), subject to corporate and individual performance
  metrics.<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>A combination of short-term compensation in the
  form of base salaries and annual cash incentives and long-term equity based
  compensation in the form of restricted stock awards and stock option grants
  are utilized to provide incentive to Executives to create shareholder value
  through the attainment of both short and long-term goals.<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>Compensation also takes into consideration the
  value of the job in the marketplace. To retain our highly skilled work force,
  we strive to remain competitive with the pay of employers who compete with us
  for talent.</FONT></LI></UL>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Compensation Committee, along
with management, recognizes that the challenges faced by an entrepreneurial and
growth orientated retail organization requires that compensation programs remain
flexible to meet the prevailing market conditions for key management roles.
Determination of appropriate compensation for our Executives is based on the
Compensation Committee's in-depth knowledge of our operations and the
competitive environment in which we operate, along with their accumulated
business expertise. While this process is inherently subjective, we do not
believe that a purely formulaic driven approach to compensation can adequately
take into account all of the various aspects that will lead to our long-term
success.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Regarding most compensation matters,
including Executive and director compensation, management provides
recommendations to the Compensation Committee; however, the Compensation
Committee does not delegate any of its functions to others in setting
compensation. We do not currently utilize external consultants in Executive or
director compensation matters; however, we do review comparisons to other
retailers. Details of our review process are contained in "Determination of
Compensation Amounts" on page 10.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-8-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><U><FONT face=sans-serif size=2>What The Compensation Program is
Designed to Reward</FONT></U></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Compensation Committee
emphasizes the relationship of compensation to performance. In evaluating the
Company's performance and the contribution of the Executives, the Compensation
Committee considers increases in store growth, sales, operating income, net
earnings and earnings per share as compared to both the financial plan for the
year and prior year performance. The Compensation Committee also evaluates free
cash flow generated by the Company, management's success in managing merchandise
inventories and prevailing economic conditions.</FONT></P>
<P align=left><U><FONT face=sans-serif size=2>Compensation Program Components,
Why Each Component Is Chosen and How Each Component Relates To Our Compensation
Philosophy and Objectives</FONT></U></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The basic components of our
Executive compensation program consist of base salary, annual cash incentives,
long-term equity based incentives, and other benefits, which include retirement
plans, health and welfare benefits, limited perquisites and other fringe
benefits.</FONT></P>
<P align=left><I><FONT face=sans-serif size=2>Base Salary</FONT></I></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The base salary component provides
for fixed compensation and rewards the core competencies of each Executive
relative to skill set, experience, tenure and individual performance.</FONT></P>
<P align=left><I><FONT face=sans-serif size=2>Annual Cash
Incentives</FONT></I></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We utilize a performance-based cash
incentive program, which is designed to reward the Executives&#146; focus on meeting
annual financial goals that will lead to our long-term success. Under our 2006
Executive Incentive Compensation Plan, performance targets may be based on one
or more of the following business criteria: annual return to shareholders, net
income, net income before nonrecurring items, net sales, operating income,
return on assets, return on equity, EPS, EBITDA, or EBITDA before nonrecurring
items. Each of the foregoing business criteria may also be calculated before
bonus expense.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Compensation Committee annually
selects the business criteria that performance targets will be based on,
determines the minimum threshold, target and maximum performance target levels
and sets the percentage of salary each Executive can earn for our achievement of
the performance target levels. The Compensation </FONT><FONT face=sans-serif size=2>Committee utilizes financial projections prepared by management in
setting the performance targets. These projections incorporate various
assumptions related to attainable comparative store sales increases, merchandise
gross margin, new store openings, and selling, general and administrative
expense levels. These projections attempt to incorporate the known risk factors
inherent with the current economic retail climate and present both the
challenges and opportunities facing the Company. The parameters under which the
program will be administered are established by the Compensation Committee,
typically within the first 60 days of each fiscal year. Mr. Weaver, Chairman of
our Board of Directors, did not participate in the 2006 Executive Incentive
Compensation Plan in fiscal 2007 and will not participate in fiscal 2008.
</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We may also award discretionary cash
bonuses to Executives for their work on special projects, for promotions or when
the Compensation Committee seeks to align compensation levels more closely to
market conditions.</FONT></P>
<P align=left><I><FONT face=sans-serif size=2>Long-Term Equity Based
Incentives</FONT></I></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We consider equity compensation, in
the form of restricted stock or stock options, to be an important element in the
overall compensation of our Executives and other key employees. Equity based
incentive awards that typically vest over time, or upon the achievement of
long-term goals, help to retain Executives and encourage them to improve our
long-term performance. This philosophy serves to more closely align the
interests of our Executives with the interests of our shareholders.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-9-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>We
currently utilize performance-based restricted stock awards as our primary form
of equity based incentive compensation. The vesting of these awards is tied to
the attainment of defined increases in earnings per diluted share and rewards
each Executive for the creation of shareholder value. Up to 100% of the number
of shares of restricted stock may be forfeited if the performance goals are not
achieved within a six-year window of time. These awards are issued pursuant to
the terms and conditions of the 2000 Stock Option Plan.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Prior to fiscal 2005, we utilized
time-based stock option awards as our primary form of equity based incentive
compensation. Stock options currently outstanding typically were granted such
that one-third of the shares underlying the stock options granted would vest and
become fully exercisable on each of the first three anniversaries of the date of
the grant and were assigned a 10-year term from the date of grant.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Mr. Weaver does not receive
long-term equity based incentive awards.</FONT></P>
<P align=left><I><FONT face=sans-serif size=2>Other Benefits</FONT></I></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>We provide the Executives with
health and welfare programs, a 401(k) retirement plan, and employee benefit
plans, programs and arrangements generally available to all employees. We also
provide the Executives, along with all of our other officers, other executive
benefit programs and perquisites in order to provide a competitive executive
compensation program and to foster executive retention.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The additional levels of benefits
available to the Executives (other than Mr. Weaver, who does not participate in
any of our sponsored benefit plans) include an executive life insurance program,
an executive long-term disability program, additional medical benefits and a
nonqualified deferred compensation plan. The life insurance and long-term
disability programs provide the Executives with life and disability benefits
greater than the benefits available under our standard broad-based life
insurance and long-term disability programs. The additional medical benefits
serve to supplement our standard health benefits program and provide additional
reimbursement of out-of-pocket expenses including co-payments and deductibles.
The nonqualified deferred compensation plan is offered to the Executives due to
the federally mandated maximum deferral limitation under our 401(k) plan. The
nonqualified deferred compensation plan provides benefits comparable to those
which would be available under our 401(k) plan if the federal regulations did
not include limits on covered compensation and benefits. Further details on the
nonqualified deferred compensation plan can be found under "Non-Equity Based
Compensation &#150; Narrative Discussion" on page 20. In addition, we currently offer
limited perquisites to each Executive other than Mr. Weaver.</FONT></P>
<P align=left><U><FONT face=sans-serif size=2>Determination of Compensation
Amounts</FONT></U></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>It is the Compensation Committee&#146;s
intention to set total Executive compensation at a level to attract and retain a
talented and motivated leadership team and balance the perception of other
stakeholders that Executive compensation is reasonably competitive. In making
compensation decisions, the Compensation Committee reviews executive
compensation practices within the retail and footwear industries with
consideration given to, among other factors, differences in sales, growth rates
and total market capitalization. Our retail peer group consists of leading
apparel retailers with sales greater than $300 million and less than $1.7
billion. Our footwear peer group consists of leading footwear retailers. We do
not limit our comparisons to only footwear retailers as our competition for
talent falls within a wide range of companies and industries.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Compensation Committee also
utilizes a tally sheet to review the total compensation package provided to the
Executives for the current and prior three fiscal years. The tally sheet sets
forth the dollar amounts of all components including base salary, annual cash
incentives, long-term equity based incentives, the incremental expense related
to the additional level of benefits provided to Executives and perquisites. The
tally sheet is supplemented by a summary of stock ownership and other equity
interests (both vested and unvested) in the Company as well as a summary of
accumulated wealth for each Executive derived from the vesting or exercise of
equity incentives. The stock ownership and accumulated wealth of the Executives
did not impact the equity-based compensation awarded to the Executives in fiscal
2007.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Executives are compensated through a
combination of short-term compensation components (base salary and annual cash
incentives) and long-term equity based incentives. The Compensation Committee
does not have a specific policy for the allocation of compensation between short
and long-term components or cash and equity based compensation. The Compensation
Committee establishes all performance targets associated with compensation
program components in a manner to encourage achievement of increases in
shareholder value.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-10-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=sans-serif size=2>In setting total compensation, the
Compensation Committee applies a consistent approach for all Executives and
applies appropriate business judgement in how it applies the standard approaches
to the facts and circumstances associated with each Executive. Although the
Compensation Committee reviews compensation data of peer group companies, it
does not benchmark the compensation of the Executives utilizing the peer group
data. Peer group data is only utilized by the Compensation Committee to
determine whether the compensation of the Executives is reasonable and
competitive in view of the peer group data.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
peer group information is compiled by our management and provided to the
Compensation Committee for its use. Amounts earned by each Executive in fiscal
2005, 2006 and 2007 are detailed in the Summary </FONT><FONT face=sans-serif size=2>Compensation Table following this section.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our current peer groups are
comprised of the following companies:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" align=center width="99%" colSpan=3><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;</FONT><STRONG>Retail Companies With Sales Greater Than $300
      Million and Less Than $1.7 Billion</STRONG></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>Aeropostale
      Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>Hot Topic,
      Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>The Gymboree
      Corporation</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>Casual Male
      Retail Group, Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>Mothers Work,
      Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>The Wet Seal,
      Inc.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>Charlotte Russe
      Holding, Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>Stage Stores,
      Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>Tween Brands,
      Inc.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>Chico&#146;s FAS,
      Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>The Buckle,
      Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>United Retail
      Group, Inc.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>Christopher
      &amp; Banks Corp.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>The Cato
      Corporation</FONT>&nbsp; </TD>
    <TD noWrap align=left width="33%"><FONT face=sans-serif size=2>Urban
      Outfitters, Inc.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="33%"><FONT face=sans-serif size=2>Hibbett Sports, Inc.</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="33%"><FONT face=sans-serif size=2>The Dress Barn, Inc.</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="33%"><FONT face=sans-serif size=2>Wilsons The Leather Experts,
      Inc.</FONT>&nbsp; </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="99%" colSpan=2>&nbsp;<B><FONT face=sans-serif size=2>Footwear Companies</FONT></B>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=sans-serif size=2>Brown Shoe
      Company, Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="50%"><FONT face=sans-serif size=2>Nike,
      Inc.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=sans-serif size=2>Columbia
      Sportswear Company</FONT>&nbsp; </TD>
    <TD noWrap align=left width="50%"><FONT face=sans-serif size=2>Payless
      ShoeSource, Inc.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=sans-serif size=2>Crocs,
      Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="50%"><FONT face=sans-serif size=2>Skechers U.S.A.,
      Inc.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=sans-serif size=2>DSW
      Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="50%"><FONT face=sans-serif size=2>Steven Madden,
      Ltd.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=sans-serif size=2>Foot Locker,
      Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="50%"><FONT face=sans-serif size=2>The Finish Line,
      Inc.</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=sans-serif size=2>Genesco
      Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="50%"><FONT face=sans-serif size=2>The Stride Rite
      Corporation</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=sans-serif size=2>Kenneth Cole
      Productions, Inc.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="50%"><FONT face=sans-serif size=2>The Timberland
      Company</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="49%"><FONT face=sans-serif size=2>K-Swiss Inc.</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="50%"><FONT face=sans-serif size=2>Wolverine World Wide, Inc.</FONT>&nbsp;
    </TD></TR></TABLE><BR>
<P align=left><I><FONT face=sans-serif size=2>Base Salary</FONT></I></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Compensation Committee reviews
and approves salaries for the Chief Executive Officer and other Executives on an
annual basis or at other times as necessary to accommodate the hiring of new
employees, promotions or other considerations. The Chief Executive Officer
provides recommendations to the Compensation Committee for those reporting
directly to him. Recommended base salaries are reviewed and set based on a
number of factors, including job responsibilities, individual industry
experience, individual performance, the Company's overall performance and
industry data for comparable positions. No predetermined weight is given to any
of the above factors.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Salary increases for the Executives
have averaged approximately 6.5% annually for the past three years. Certain
Executives have received greater salary increases corresponding to expanded
responsibilities as a result of our continued growth. In particular, we have
increased Mr. Jackson&#146;s salary significantly in order to make his compensation
more competitive and to reflect his increasing responsibilities. </FONT></P>
<P align=left><I><FONT face=sans-serif size=2>Annual Cash
Incentives</FONT></I></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>A portion of the annual cash
compensation the Executives could have earned for fiscal 2007 consisted of a
performance-based bonus payment pursuant to the 2006 Executive Incentive
Compensation Plan. The Executives could also have been awarded discretionary
cash bonuses for their work on special projects, for promotions or as the
Compensation Committee otherwise determines. For fiscal 2007, the Compensation
Committee selected our operating income before officer bonus expense ("Operating
Income") as the business criteria for all officers included in the plan and
established the minimum threshold, target and maximum performance target levels.
The following table reflects the
percentage of salary each Executive could earn based upon the achievement of the
various target levels of Operating Income. The percentages of salary were
increased from the prior year to be more competitive with those provided by our
peer group.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-11-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="66%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="32%" colSpan=5><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Percentage of Annual Salary</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="66%"><FONT face=sans-serif size=1>Name</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="10%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Threshold</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="10%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Target</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="10%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Maximum</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0>&nbsp;<FONT face=sans-serif size=1>Mark L. Lemond</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=1>0%</FONT>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=1>60%</FONT>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=1>100%</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%">&nbsp;<FONT face=sans-serif size=1>Timothy T. Baker</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>0%</FONT>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;
</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>45%</FONT>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;
</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>75%</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0>&nbsp;<FONT face=sans-serif size=1>W. Kerry Jackson</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=1>0%</FONT>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=1>45%</FONT>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=1>75%</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="66%">&nbsp;<FONT face=sans-serif size=1>Clifton E. Sifford</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT face=sans-serif size=1>0%</FONT>&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT face=sans-serif size=1>45%</FONT>&nbsp;&nbsp;
</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT face=sans-serif size=1>75%</FONT>&nbsp;&nbsp;
  </TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
minimum threshold for fiscal 2007 was the Operating Income we achieved in fiscal
2006. As fiscal 2007 Operating Income did not exceed the fiscal 2006 level, the
minimum threshold was not met and therefore, the Executives did not earn a bonus
under the 2006 Executive Incentive Compensation Plan, as a percentage of their
base salary during fiscal 2007. Likewise, no discretionary bonuses were paid to
any Executive in fiscal 2007.</FONT></P>
<P align=left><I><FONT face=sans-serif size=2>Long-Term Equity Based
Incentives</FONT></I></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Incentive awards are granted
pursuant to the 2000 Stock Option Plan at the discretion of our Compensation
Committee. The Compensation Committee relies in large part on the recommendation
of the Chairman and Chief Executive Officer in determining the number of
incentive awards to be granted to Executives. With the exception of new
employees and promotions, incentive awards are typically granted on an annual
basis at the Compensation Committee&#146;s regularly scheduled meeting in March of
each year. This meeting is scheduled in advance and occurs before the release of
our fourth quarter and annual earnings.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Based on the recommendation of the
Chairman and the Chief Executive Officer, the Compensation Committee granted an
aggregate of 56,000 shares of performance-based restricted stock to the
Executives, excluding Mr. Weaver, at the regularly scheduled meeting on March
13, 2007. An additional 42,000 shares were granted to other members of
management. One-third of these restricted shares will vest upon the achievement
of annual earnings per diluted share of $1.80, or a 4% increase over fiscal 2006
earnings per diluted share; one-third vest upon the achievement of annual
earnings per diluted share of $2.00, an 11% increase over the prior tier; and
one-third vest upon the achievement of annual earnings per diluted share of
$2.30, a 15% increase over the prior tier. Two or three of the tranches of these
restricted shares may vest in a given year if earnings per diluted share exceed
$2.00 or $2.30, respectively. The Chairman and Chief Executive Officer based
their recommendation for the fiscal 2007 restricted stock awards on a total of
approximately 1% of our then outstanding shares, with consideration given to the
dilutive effect of the proposed grant. Recommendation of the allocation of
shares amongst members of management was made based on the individual&#146;s
potential for making significant contributions in the future and the relative
importance of the individual&#146;s position to others in our organization. It should
be noted that fiscal 2006 consisted of 53 weeks, as opposed to the normal 52
weeks, due to the Company following the retail calendar. We estimate that the
53<SUP>rd</SUP></FONT><FONT face=sans-serif size=2> week resulted in an increase
in diluted earnings per share of approximately $0.05. Taking this adjustment
into consideration, the increase to earnings per diluted share of $1.80 would be
a 7% increase over the normalized 52-week period.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>No shares have vested from this
award. Any restricted shares that are unvested after six fiscal years will be
forfeited. No other forms of equity-based compensation were recommended or
awarded to the Executives during fiscal 2007.</FONT></P>
<P align=left><U><FONT face=sans-serif size=2>Deductibility of Compensation and
Other Related Issues</FONT></U></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Section 162(m) of the Internal
Revenue Code generally provides that publicly held companies may not deduct
compensation paid to an Executive to the extent such compensation exceeds $1
million per officer in any fiscal year. However, pursuant to regulations issued
by the Treasury Department, certain limited exceptions to Section 162(m) apply
with respect to "qualified performance-based compensation." Our Compensation
Committee believes that tax deductibility is an important factor when evaluating
executive compensation and has taken steps to provide that these exceptions will
generally apply to incentive compensation paid to the Executives. However, our
Compensation Committee may exercise its discretion to provide base salaries or
other compensation that may not be fully tax deductible to us.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-12-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Sarbanes-Oxley Act of 2002
subjects our Chief Executive Officer and our Chief Financial Officer to
forfeiture of incentive compensation and profits from the sale of stock in the
event of an accounting restatement associated with non-compliance, as a result
of misconduct, with any financial reporting requirement under the securities
laws. Our Compensation Committee has not adopted at this time any additional
forfeiture provisions for incentive compensation.</FONT></P>
<P align=left><U><FONT face=sans-serif size=2>Termination and Change-in-Control
Arrangements</FONT></U></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>During December 2006, we entered
into negotiations with Messrs. Lemond, Baker and Sifford to replace their then
existing employment and noncompetition agreements with new agreements. Our
objective was to bring the agreements more in line with general industry
practices. We also entered into negotiations with Mr. Jackson to arrive at an
agreement covering his employment. We believe that employment and noncompetition
agreements serve to ensure the continued dedication of the Executive team and
minimize the likelihood of the transfer of trade secrets to our direct
competitors.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each Executive was covered by an
employment and noncompetition agreement at February 2, 2008, which specifies
various payments to be made to the Executive in the event his employment is
terminated. The type and amount of payments vary by Executive and the nature of
the termination. We believe these severance benefits are competitive with
general industry practices.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Mr. Lemond&#146;s employment and
noncompetition agreement does not contain a specific change-in-control
provision; however, it does contain an assignment clause which requires any
successor company to assume the agreement. Therefore, upon a change-in-control
of the Company, the terms of the triggering events would still apply upon Mr.
Lemond&#146;s termination from the Company. Messrs. Baker, Jackson and Sifford&#146;s
individual employment and noncompetition agreements do contain specific types
and amounts of payment in the event of a change-in-control.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Further information on termination
and change-in-control arrangements is contained herein, beginning on page
21.</FONT></P>
<P align=left><U><FONT face=sans-serif size=2>Fiscal 2008 Executive
Compensation</FONT></U></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Compensation Committee met on
March 18, 2008 and completed its review and approval of the fiscal 2008
corporate goals and objectives relevant to Executive compensation, evaluated
each Executive&#146;s individual performance as well as their collective performance
in light of the prior year goals and objectives, and set Executive compensation
levels for fiscal 2008 based on this evaluation. This process was consistent
with that performed in fiscal 2007. In view of our financial performance in
fiscal 2007, the Compensation Committee did not increase the base salary of any
Executive other than Mr. Jackson. His salary was increased by $25,000 to make it
more competitive based on the peer group data.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>For
fiscal 2008, the Compensation Committee again selected Operating Income as the
business criteria for all officers included in the 2006 Executive Incentive
Compensation Plan and established the minimum threshold, target and maximum
performance target levels. These plans attempt to incorporate the known risk
factors inherent with the current economic retail climate and present both the
challenges and opportunities facing the Company. The following table reflects
the percentage of salary each Executive could earn based upon the achievement of
the various target levels of Operating Income. These percentages remained
unchanged from the prior year.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-13-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="66%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="32%" colSpan=5><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Percentage of Annual Salary</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="66%"><FONT face=sans-serif size=1>Name</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="10%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Threshold</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="10%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Target</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="10%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Maximum</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Mark L. Lemond</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT size=1 face=sans-serif>0%</FONT>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT size=1 face=sans-serif>60%</FONT>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT size=1 face=sans-serif>100%</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><FONT face=sans-serif size=1>Timothy T.
      Baker</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>0%</FONT>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;
</TD>
    <TD noWrap align=right width="10%"><FONT size=1 face=sans-serif>45%</FONT>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;
</TD>
    <TD noWrap align=right width="10%"><FONT size=1 face=sans-serif>75%</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=sans-serif size=1>W. Kerry Jackson</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=1>0%</FONT>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT size=1 face=sans-serif>45%</FONT>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT size=1 face=sans-serif>75%</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="66%"><FONT face=sans-serif size=1>Clifton E. Sifford</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT face=sans-serif size=1>0%</FONT>&nbsp;&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT size=1 face=sans-serif>45%</FONT>&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT size=1 face=sans-serif>75%</FONT>&nbsp;&nbsp;
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The minimum threshold for fiscal
2008 was selected as the Operating Income achieved in fiscal 2007, or
$19,132,000. If the minimum threshold is met, the Executives will earn an
incremental bonus, as a percentage of their base salary, as the fiscal 2008
Operating Income exceeds the fiscal 2007 level. Upon achievement of the target
Operating Income for fiscal 2008, or $27,569,000 which is a 44% increase over
Operating Income recorded in fiscal 2007, each Executive would earn his target
bonus. With the achievement of 120% of the target Operating Income, or
$33,699,000, which is a 76% increase over Operating Income recorded for fiscal
2007, each Executive would earn his maximum allowable bonus under the 2006
Executive Incentive Compensation Plan. Achievement of these goals will be
reviewed by the Compensation Committee at the March 2009 Board
meeting.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Based on the recommendation of the
Chairman and the Chief Executive Officer, the Compensation Committee granted an
aggregate of 48,000 shares of performance-based restricted stock to the
Executives, excluding Mr. Weaver, as follows: Mr. Lemond 16,000 shares; Mr.
Baker 8,000 shares; Mr. Jackson 12,000 shares; and Mr. Sifford 12,000 shares. An
additional 72,000 shares were granted to other members of management. One-third
of these restricted shares vest upon the achievement of annual earnings per
diluted share of $1.12, a 15% increase over fiscal 2007 earnings per diluted
share; one-third vest upon the achievement of annual earnings per diluted share
of $1.30, a 16% increase over the prior tier; and one-third vest upon the
achievement of annual earnings per diluted share of $1.50, a 15% increase over
the prior tier. Two or three of the tranches of these restricted shares may vest
in a given year if earnings per diluted share exceed $1.30 or $1.50,
respectively. Any restricted shares that are unvested after six fiscal years
will be forfeited. The Chairman and Chief Executive Officer based their
recommendation for the fiscal 2008 restricted stock awards on a total of
approximately 1% of our then outstanding shares, with consideration given to the
dilutive effect of the proposed grant. Recommendation of the allocation of
shares amongst members of management was made based on the individual&#146;s
potential for making significant contributions in the future and the relative
importance of the individual&#146;s position to others in our organization. No other
forms of equity based compensation were recommended or awarded to the
Executives.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The above actions of the
Compensation Committee were reported in a Current Report on Form 8-K filed on
March 20, 2008 with the Securities and Exchange Commission.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Compensation Committee
Report</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>We have
reviewed and discussed with Company management the Compensation Discussion and
Analysis required by Item 402(b) of Regulation S-K under the Exchange Act. Based
on the review and discussion referred to above, we recommended to the Board of
Directors that the Compensation Discussion and Analysis be included in our
Annual Report on Form 10-K for the fiscal year ended February 2, 2008 and in our
proxy statement for the 2008 annual meeting of shareholders for filing under the
Exchange Act.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Compensation Committee</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>William E. Bindley (Chair)<BR><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Kent A.
Kleeberger<BR><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Gerald W. Schoor</FONT></P>
<P align=center><FONT face=sans-serif size=2>-14-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=sans-serif size=2>Summary Compensation Table
</FONT></B></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following table sets forth a
summary of the compensation paid by us for services rendered in all capacities
to us during each of the three most recent fiscal years to our Chief Executive
Officer, Chief Financial Officer, and to each of our three other most highly
compensated executive officers (the Executives), based on total compensation
earned in fiscal 2007.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=center width="55%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Non-Equity</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="55%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Fiscal</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Incentive
      Plan</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>All
    Other</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="55%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Year</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Stock
      Awards<FONT face="Times New Roman" size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Option</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Compensation<FONT face="Times New Roman" size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Compensation</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="55%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Name and Principal Position</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>(1)</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="5%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Salary</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="4%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Bonus (2)</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="4%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>(3)</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="4%" colSpan=2><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Awards (4)</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="6%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>(5)</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="4%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>(6)</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Total</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Mark L. Lemond,</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2007</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>&nbsp;
      701,568</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>&nbsp;
      235,369</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>&nbsp;
      68,964</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>&nbsp;
      1,005,901</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>President and Chief Executive Officer</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2006</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>669,231</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>221,034</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>&nbsp;
      109,570</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>221,516</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>1,221,351</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2005</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>639,962</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>107,198</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>308,605</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>99,875</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>1,155,640</FONT>
    </TD></TR>
  <TR>
    <TD noWrap width="99%" colSpan=24>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>J. Wayne Weaver,</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2007</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>300,000</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>300,000</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Chairman of the Board</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2006</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>300,000</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>300,000</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2005</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>300,000</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>300,000</FONT>
    </TD></TR>
  <TR>
    <TD noWrap width="99%" colSpan=24>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Timothy T. Baker,</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2007</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>424,135</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>137,862</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>53,996</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>615,993</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Executive Vice President - Store</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2006</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>409,519</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>110,718</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>45,440</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>56,112</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>621,789</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Operations</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2005</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>395,891</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>51,460</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>141,543</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>59,186</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>648,080</FONT>
    </TD></TR>
  <TR>
    <TD noWrap width="99%" colSpan=24>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>W. Kerry Jackson,</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2007</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>371,539</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>137,862</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>7,472</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>44,722</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>561,595</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Executive Vice President - Chief Financial</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2006</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>313,462</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>&nbsp;
      40,000</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>110,718</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>20,283</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>34,911</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>35,331</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>554,705</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Officer and Treasurer</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2005</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>257,154</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>51,460</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>97,923</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>34,289</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>440,826</FONT>
    </TD></TR>
  <TR>
    <TD noWrap width="99%" colSpan=24>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Clifton E. Sifford,</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2007</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>424,135</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>137,862</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>53,019</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>615,016</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Executive Vice President - General</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2006</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>409,519</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>110,718</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>45,440</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>47,681</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>613,358</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Merchandise Manager</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2005</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>395,891</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>51,460</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>141,543</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>42,247</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>631,141</FONT>
    </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="99%" colSpan=24>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(1)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>Our fiscal year is a 52/53
      week year ending on the Saturday closest to January 31. Fiscal years 2005
      and 2007 were each 52-week years. Fiscal 2006 was 53 weeks.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(2)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>Represents discretionary
      cash bonuses earned during the fiscal year indicated and paid in the
      subsequent fiscal year.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(3)</FONT></TD>
    <TD noWrap>&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face=sans-serif size=1>For fiscal years 2007 and
      2006, the amounts reported above were computed under the requirements of
      Statement of Financial Accounting Standard No. 123 (revised 2004),
      "Share-Based Payment" ("SFAS No. 123R") as adopted by us on January 29,
      2006 and represent the amount of equity compensation expense recorded for
      the shares held by each Executive (except disregarding the estimated
      forfeitures related to service-based vesting conditions). The above
      amounts include compensation expense for stock awards granted in the
      previous fiscal years as well as those granted during the current fiscal
      year. As these stock awards were performance based, expense is recognized
      over the applicable vesting period as determined by management&#146;s
      assessment of the probability of achieving the designated performance
      criteria.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>For fiscal 2005, the amounts
      reported above were computed in accordance with the provisions of SFAS No.
      123, "Accounting for Stock-Based Compensation" ("SFAS No. 123") and
      represent the amount of equity compensation expense recorded during fiscal
      2005 for the shares held by each Executive. Under SFAS No. 123, we elected
      to follow the recognition and measurement principles of Accounting
      Principles Board Opinion No. 25 ("APB No. 25"), "Accounting for Stock
      Issued to Employees", and related interpretations. As these stock awards
      were performance based, they qualified as a variable arrangement for
      accounting purposes and, as such, expense is recognized over the
      applicable vesting period as determined by management&#146;s assessment of the
      probability of achieving the designated performance criteria.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>No shares of restricted
      stock were granted prior to fiscal 2005.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>Disclosure of the relevant
      assumptions related to the valuation of awards is provided in the Notes to
      the Consolidated Financial Statements as contained in Part II, Item 8 of
      our Annual Report on Form 10-K for the year ended February 2,
    2008.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(4)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>For fiscal years 2007 and
      2006, the amounts reported above were computed under the requirements of
      SFAS No. 123R and represent the amount of equity compensation expense
      recorded for unvested stock options (except disregarding the estimated
      forfeitures related to service-based vesting conditions). The above amount
      includes compensation expense for such options granted in previous fiscal
      years.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>For fiscal years prior to
      2006, accounting for stock options was performed in accordance with the
      provisions of SFAS No. 123. Under SFAS No. 123, we elected to follow the
      recognition and measurement principles of APB No. 25 and related
      interpretations. Under APB No. 25, because the exercise price of employee
      stock options was at least equal to the market price of the underlying
      stock on the date of the grant, no compensation expense was
      recognized.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>Disclosure of the relevant
      assumptions related to the valuation of option awards is provided Note 2
      and Note 9 to the Consolidated Financial Statements as contained in Part
      II, Item 8 of our Annual Report on Form 10-K for the year ended February
      2, 2008.</FONT></TD></TR></TABLE>
<P align=center><FONT face=sans-serif size=2>-15-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(5)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>Operating Income for fiscal
      2007 did not exceed that which we achieved in fiscal 2006. Therefore, no
      non-equity incentive plan compensation was earned in fiscal 2007 under our
      2006 Executive Incentive Compensation Plan.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap>&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face=sans-serif size=1>Operating Income for fiscal
      2006 exceeded that which we achieved in fiscal 2005 by 19.1%. Under the
      provisions of our 2006 Executive Incentive Compensation Plan, this
      achievement entitled Mr. Lemond to receive a bonus of approximately 16.4%
      of his base salary and Messrs. Baker, Jackson and Sifford to receive a
      bonus of approximately 11.1% of each of their respective base
      salaries.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>Operating Income for fiscal
      2005 exceeded that which we achieved in fiscal 2004 by 52.4%. Under the
      provisions of our Executive Incentive Compensation Plan as was then in
      effect, this achievement entitled Mr. Lemond to receive a bonus of
      approximately 47.5% of his base salary and Messrs. Baker, Jackson and
      Sifford to receive a bonus of approximately 35.6% of each of their
      respective base salaries.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>For a further discussion of
      our 2006 Executive Incentive Compensation Plan, see "Compensation
      Discussion and Analysis &#150; Determination of Compensation Amounts &#150; Annual
      Cash Incentives" on page 11.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(6)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>We provide Executives with
      health and welfare programs, a 401(k) retirement plan, and employee
      benefit plans, programs and arrangements generally available to all
      employees. We also provide Executives with other executive benefit
      programs and perquisites. In fiscal 2007, no Executive received an
      individual perquisite in excess of $25,000. Perquisites and personal
      benefits received by the Executives in fiscal 2007 included:</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD noWrap></TD>
    <TD width="100%">
      <UL style="MARGIN-BOTTOM: 1pt">
        <LI><FONT face=sans-serif size=1>Reimbursements under our Executive
        medical plan;</FONT>
        <LI><FONT face=sans-serif size=1>The cost of the Executive&#146;s leased
        automobile; and</FONT>
        <LI><FONT face=sans-serif size=1>The cost of the Executive&#146;s country club
        membership.</FONT></LI></UL></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>The amounts in this
      column for fiscal 2007 also include matching contributions made by us
      under our 401(k) and deferred compensation plans, the discount on the
      Executive&#146;s purchases under the Employee Stock Purchase Plan ("ESPP") and
      premiums on the Executive&#146;s life and long-term disability insurance. These
      amounts are detailed in the following
table.</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="5%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="5%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="5%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Long-term</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="7%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Deferred</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="5%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="5%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Disability</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="7%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Compensation</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Discount
      under</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Life Insurance</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Insurance</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="61%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>401(k) Match</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Plan Match</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>the ESPP</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Premiums</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Premiums</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Mark L. Lemond</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>5,028</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>25,000</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>882</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>594</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>983</FONT>
</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif size=1>J. Wayne
      Weaver</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=sans-serif size=1>$</FONT>&nbsp;
    </TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="2%"><FONT face=sans-serif size=1>$</FONT>&nbsp;
    </TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=sans-serif size=1>$</FONT>&nbsp;
    </TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=sans-serif size=1>-</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Timothy T. Baker</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4,681</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>16,989</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>594</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>983</FONT>
</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%"><FONT face=sans-serif size=1>W. Kerry
      Jackson</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=sans-serif size=1>$</FONT>&nbsp;
    </TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>3,172</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="2%"><FONT face=sans-serif size=1>$</FONT>&nbsp;
    </TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>17,950</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=sans-serif size=1>$</FONT>&nbsp;
    </TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>594</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=sans-serif size=1>922</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="61%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Clifton E. Sifford</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4,681</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
    </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>16,989</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>882</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>594</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>983</FONT>
  </TD></TR></TABLE><BR>
<P align=left><B><FONT face=sans-serif size=2>Grants of Plan-Based
Awards</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
following table sets forth information with respect to the non-equity and equity
grants of plan-based awards made during the last fiscal year to each Executive.
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>All Other</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>All Other</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="13%" colSpan=5><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Estimated Future
      Payouts</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Stock</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Option</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="13%" colSpan=8>&nbsp;<FONT face=sans-serif size=1>Estimated Possible Payouts Under</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="13%" colSpan=5><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Under Equity
      Incentive Plan</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Awards:</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Awards:</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=8><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Non-Equity Incentive Plan Awards (1)</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=5>&nbsp;<FONT face=sans-serif size=1>Awards (2)</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Number of</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Number of</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%" colSpan=2><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Exercise
    or</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%" colSpan=2><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Grant Date
      Fair</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Shares of</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Securities</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%" colSpan=2><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Base
    Price</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%" colSpan=2><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Value of
      Stock</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%">&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Stock or</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Underlying</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%" colSpan=2><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>of
    Option</FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>and Option</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="49%"><FONT face=sans-serif size=1>Name</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Grant Date<FONT face="Times New Roman" size=3>&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Threshold</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Target</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Maximum</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Threshold<FONT face="Times New Roman" size=3>&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Target</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Maximum</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Units</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Options</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=2><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>Awards</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=2>&nbsp;<FONT face=sans-serif size=1>Awards (3)</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Mark L.</FONT> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>3/13/2007</FONT>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>20,000</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>588,400</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Lemond</FONT> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>3/13/2007</FONT>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>&nbsp;&nbsp; 422,100</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>&nbsp;&nbsp; 703,500</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=sans-serif size=1>J.
      Wayne</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=sans-serif size=1>Weaver</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>-<FONT face="Times New Roman" size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%"><FONT face=Arial size=1>-</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Timothy T.</FONT> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>3/13/2007</FONT>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12,000</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-<FONT face="Times New Roman" size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>353,040</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Baker</FONT> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>3/13/2007</FONT>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>191,250</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>318,750</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=sans-serif size=1>W.
      Kerry</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>3/13/2007</FONT>&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>12,000</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%"><FONT face=sans-serif size=1>353,040</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=sans-serif size=1>Jackson</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>3/13/2007</FONT>&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=sans-serif size=1>-</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=sans-serif size=1>168,750</FONT> </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%"><FONT face=sans-serif size=1>281,250</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="2%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Clifton E.</FONT> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>3/13/2007</FONT>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12,000</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>353,040</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="49%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Sifford</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1><FONT face="Times New Roman" size=3>&nbsp;</FONT>3/13/2007</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>191,250</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1>318,750</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD></TR></TABLE>
<BR>
<P align=center><FONT face=sans-serif size=2>-16-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(1)</FONT></TD>
    <TD noWrap>&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face=sans-serif size=1>Represents the amount each
      Executive could have earned based upon the achievement of various target
      levels of Operating Income under the 2006 Executive Incentive Compensation
      Plan. The material terms of the Executives' bonus awards under the 2006
      Executive Incentive Compensation Plan are described in "Compensation
      Discussion and Analysis&#151;Determination of Compensation Amounts&#151;Annual Cash
      Incentives" on page 11. No Executive earned a bonus in fiscal 2007 under
      the Executive Incentive Compensation Plan.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(2)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>Represents shares of
      performance-based restricted stock granted to the Executives on March 13,
      2007 under the 2000 Stock Option Plan. The material terms of these
      restricted stock grants are described in "Compensation Discussion and
      Analysis&#151;Determination of Compensation Amounts&#151;Long-Term Equity Based
      Incentives" on page 12. There was no minimum threshold or maximum amount
      of shares of restricted stock associated with this grant.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(3)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>The grant date fair value
      assigned to these shares was calculated using the closing market price of
      our common stock on March 13, 2007, which was
$29.42.</FONT></TD></TR></TABLE>
<P align=left><U><FONT face=sans-serif size=2>Equity Based Compensation &#150;
Narrative Discussion</FONT></U></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our Board of Directors and
shareholders approved the 1993 Stock Option Plan, effective January 15, 1993,
and amended it at our 1997 annual meeting of shareholders. The 1993 Stock Option
Plan reserved </FONT><FONT face=sans-serif size=2>1,500,000 shares of our common
stock for stock option grants (subject to adjustment for subsequent stock
splits, stock dividends and certain other changes in the common stock). On
January 14, 2003, the 1993 Stock Option Plan expired. Previously issued stock
options can be exercised for up to 10 years from their date of grant.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Our Board of Directors and
shareholders approved the 2000 Stock Option Plan, effective June 8, 2000. The
2000 Stock Option Plan initially reserved 1,000,000 shares of our common stock
for stock option and restricted stock grants, but on June 11, 2004, the 2000
Stock Option Plan was amended to increase the number of shares reserved for
issuance to 1,500,000 (subject to adjustment for subsequent stock splits, stock
dividends and certain other changes in the common stock). On June 14, 2005, the
2000 Stock Option Plan was further amended to include our non-employee directors
as individuals eligible to receive awards; to stipulate that the exercise price
of all options granted may not be less than the fair market value of our common
stock on the date that the option is granted; and to delete the provision
permitting loans to participants. On March 18, 2008, the Board of Directors
adopted an amendment to the 2000 Stock Option Plan and directed that the
amendment be submitted to our shareholders for consideration and approval at our
2008 annual meeting. The amendment would increase the number of shares of our
common stock subject to issuance under the 2000 Stock Option Plan from 1,500,000
to 2,000,000 and would extend the term of the 2000 Stock Option Plan until the
later of ten years from the date of adoption of the plan by our shareholders or
the approval of any amendment of the plan by our shareholders.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Compensation Committee
administers and grants incentive awards under the 2000 Stock Option Plan. The
2000 Stock Option Plan provides for the grant to our officers, other key
employees, and non-employee directors of incentive awards in the form of stock
options or restricted stock. Stock options granted under the plan may be either
options intended to qualify for federal income tax purposes as "incentive stock
options" or options not qualifying for favorable tax treatment ("nonqualified
stock options").</FONT></P>
<P align=center><FONT face=sans-serif size=2>-17-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=sans-serif size=2>Outstanding Equity Awards at
Fiscal Year-End</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
following table sets forth information with respect to the outstanding equity
awards for each Executive at the most recent fiscal year ended February 2,
2008.</FONT></P>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="28%" colSpan=8><FONT face=sans-serif size=1>Option </FONT><FONT face=sans-serif size=1>Awards</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="16%" colSpan=4><FONT face=sans-serif size=1>Stock A</FONT><FONT face=sans-serif size=1>ward</FONT><FONT face=sans-serif size=1>s</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=1>Equity Incentive</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=1>Plan
      Awards:</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%" colSpan=2><FONT face=sans-serif size=1>Equity Incentive</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=sans-serif size=1>Number
    of</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=1>Number
    of</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=1>Number
    of</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%" colSpan=2><FONT face=sans-serif size=1>Plan
      Awards:</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=sans-serif size=1>Securities</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=1>Securities</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=1>Unearned</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%" colSpan=2><FONT face=sans-serif size=1>Market or Payout</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=sans-serif size=1>Underlying</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=1>Underlying</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=1>Shares, Units or</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%" colSpan=2><FONT face=sans-serif size=1>Value of Unearned</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=sans-serif size=1>Unexercised</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=1>Unexercised</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"><FONT face=sans-serif size=1>Option</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=1>Other
      Rights</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%" colSpan=2><FONT face=sans-serif size=1>Shares, Units or</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"><FONT face=sans-serif size=1>Grant</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=sans-serif size=1>Options
    -</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=1>Options
    &#150;</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>Option
      Exercise</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"><FONT face=sans-serif size=1>Expiration</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=1>That Have
      Not</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%" colSpan=2><FONT face=sans-serif size=1>Other Rights That</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="47%"><FONT face=sans-serif size=1>Name</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=sans-serif size=1>Date</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=sans-serif size=1>Exercisable</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%"><FONT face=sans-serif size=1>Unexercisable</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>Price</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=sans-serif size=1>Date</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%"><FONT face=sans-serif size=1>Vested (1)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=2><FONT face=sans-serif size=1>Ha</FONT><FONT face=sans-serif size=1>v</FONT><FONT face=sans-serif size=1>e Not Vested (2)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Mark L. Lemond</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/13/2006</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=sans-serif size=1>5,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=sans-serif size=1>74,750</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/13/2007</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=sans-serif size=1>20,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=sans-serif size=1>299,000</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4/10/1998</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>16,874</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>11.0000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4/9/2008</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/4/1999</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>75,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>11.1250</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/3/2009</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/7/2000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>20,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>8.5625</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/6/2010</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12/11/2000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>30,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4.3800</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12/10/2010</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4/4/2002</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>75,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>17.1200</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4/3/2012</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/12/2003</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>75,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12.6700</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/11/2013</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="47%"><FONT face=sans-serif size=1>J. Wayne
    Weaver</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="5%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face=sans-serif size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Timothy T. Baker</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/13/2006</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2,667</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=sans-serif size=1>39,872</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/13/2007</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=sans-serif size=1>179,400</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/4/1999</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>20,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>11.1250</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/3/2009</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/7/2000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>317</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>8.5625</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/6/2010</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12/11/2000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>6,395</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4.3800</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12/10/2010</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4/4/2002</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>20,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>17.1200</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4/3/2012</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/12/2003</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>20,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12.6700</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/11/2013</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=1>W. Kerry
      Jackson</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="7%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="7%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="7%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>3/13/2006</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="7%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>2,667</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>39,872</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>3/13/2007</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="7%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="6%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>12,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>179,400</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>4/4/2002</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>15,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="7%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>17.1200</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>4/3/2012</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="7%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="7%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>3/12/2003</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>15,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="7%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>12.6700</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>3/11/2013</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="7%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="7%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="47%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=sans-serif size=1>8/25/2004</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=sans-serif size=1>10,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%"><FONT face=sans-serif size=1>12.1400</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=sans-serif size=1>8/24/2014</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Clifton E. Sifford</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/13/2006</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2,667</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=sans-serif size=1>39,872</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/13/2007</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=sans-serif size=1>179,400</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/7/2000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>10,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>8.5625</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/6/2010</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4/4/2002</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>20,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>17.1200</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4/3/2012</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="7%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/12/2003</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>20,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12.6700</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3/11/2013</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="7%" bgColor=#c0c0c0>&nbsp; </TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(1)</FONT></TD>
    <TD noWrap>&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face=sans-serif size=1>On March 13, 2006, 55,250
      shares of restricted stock were awarded under the 2000 Stock Option Plan
      and of these restricted shares, 19,500 were awarded to the Executives and
      the balance was awarded to other key employees. One-third of these
      restricted shares vest upon the achievement of each of three different
      levels of annual earnings per diluted share. Annual earnings per share
      achieved for fiscal 2006 resulted in the vesting of one-third of the
      shares on March 31, 2007. This vesting included 2,500 of the 7,500 shares
      held by Mr. Lemond and 1,333 of the 4,000 shares held individually by
      Messrs. Baker, Jackson and Sifford that are included in this column. The
      remaining annual earnings per share targets were not achieved during
      fiscal 2007, therefore no shares vested on March 31, 2008. Any restricted
      shares that are unvested after six years will be forfeited and returned to
      us.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>On March 13, 2007, 98,000
      shares of restricted stock were awarded under the 2000 Stock Option Plan
      and of these restricted shares, 56,000 were awarded to the Executives and
      the balance was awarded to other key employees. One-third of these
      restricted shares vest upon the achievement of each of three different
      levels of annual earnings per diluted share. None of the annual earnings
      per share targets were achieved during fiscal 2007, therefore no shares
      vested on March 31, 2008. Any restricted shares that are unvested after
      six years will be forfeited and returned to us.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(2)</FONT></TD>
    <TD noWrap></TD>
    <TD vAlign=top width="100%"><FONT face=sans-serif size=1>The value of the
      shares that have not vested was computed utilizing $14.95, the closing
      price of our common stock on Friday, February 1,
2008.</FONT></TD></TR></TABLE>
<P align=center><FONT face=sans-serif size=2>-18-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=sans-serif size=2>Option Exercises and Stock Vested
in Fiscal 2007 </FONT></B></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following table sets forth for
each Executive information with respect to the value realized upon the exercise
of options or the vesting of stock during the fiscal year ended February 2,
2008.</FONT></P>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="12%" colSpan=4><FONT face=sans-serif size=1>Optio</FONT><FONT face=sans-serif size=1>n
      Aw</FONT><FONT face=sans-serif size=1>ards</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=4><FONT face=sans-serif size=1>Stoc</FONT><FONT face=sans-serif size=1>k Aw</FONT><FONT face=sans-serif size=1>ards</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"></TD>
    <TD noWrap align=center width="6%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=sans-serif size=1>Number
    of</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"></TD>
    <TD noWrap align=center width="6%"><FONT face=sans-serif size=1>Number
    of</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=sans-serif size=1>Shares</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"></TD>
    <TD noWrap align=center width="6%"><FONT face=sans-serif size=1>Shares Acquired</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Value Realized on</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=sans-serif size=1>Acquired
      on</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=sans-serif size=1>Value Realized on</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="75%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=sans-serif size=1>on Exercise</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Exercise</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=sans-serif size=1>Vesting</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=sans-serif size=1>Vesting (1)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Mark L. Lemond</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>6,667</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>221,944</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face=sans-serif size=1>J. Wayne
      Weaver</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=sans-serif size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Timothy T. Baker</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3,333</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>110,956</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="75%"><FONT face=sans-serif size=1>W. Kerry
      Jackson</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>3,333</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=sans-serif size=1>110,956</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="75%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Clifton E. Sifford</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3,333</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>110,956</FONT></TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=1>(1)&nbsp;&nbsp;&nbsp;&nbsp; Amounts
are calculated by multiplying the number of shares vesting by the market value
of our common stock on the vesting date.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Equity Compensation Plan
Information</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
following table sets forth information regarding outstanding grants and shares
available for grant under our existing equity compensation plans, including our
1993 Stock Option Plan, 2000 Stock Option Plan, Outside Directors Stock Option
Plan and the Employee Stock Purchase Plan. All information is as of February 2,
2008.</FONT></P>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=center width="65%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=2></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=2><FONT face=sans-serif size=1>Number of
      Securities</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="65%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=2><FONT face=sans-serif size=1>Number of
      Securities</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=2><FONT face=sans-serif size=1>Remaining
      Available</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="65%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=2><FONT face=sans-serif size=1>To be Issued
      Upon</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=3><FONT face=sans-serif size=1>Weighted
      Average</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=2><FONT face=sans-serif size=1>for Future
      Issuance</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="65%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=2><FONT face=sans-serif size=1>Exercise of
      Outstanding</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=3><FONT face=sans-serif size=1>Exercise Price
      of</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=2><FONT face=sans-serif size=1>(Excluding
      Securities</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="65%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=2><FONT face=sans-serif size=1>Options,
      Warrants and</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=3><FONT face=sans-serif size=1>Outstanding
      Options,</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=2><FONT face=sans-serif size=1>Reflected in
      the</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="65%"><FONT face=sans-serif size=1>Plan Category</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=2><FONT face=sans-serif size=1>Rights</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=3><FONT face=sans-serif size=1>Warrants and Rights</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=2><FONT face=sans-serif size=1>First Column)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Equity compensation plans approved by
    security</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0 colSpan=2></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="10%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT face=sans-serif size=1>holders (1)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=1>624,709</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12.38</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=1>511,677</FONT></TD>
    <TD style="PADDING-BOTTOM: 2pt" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>(2)&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"><FONT face=sans-serif size=1>Equity
      compensation plans not approved by</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="10%" colSpan=2></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="10%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"><FONT face=sans-serif size=1>security holders
      (3)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT size=1><FONT face=sans-serif>13,000<FONT></FONT></FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>13.16</FONT></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT face=sans-serif size=1>9,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=11>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="65%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Total</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%" bgColor=#c0c0c0><FONT face=sans-serif size=1>637,709</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=1></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=sans-serif size=1>12.40</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%" bgColor=#c0c0c0><FONT face=sans-serif size=1>520,677</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(1)</FONT></TD>
    <TD noWrap></TD>
    <TD valign=top width="100%"><FONT face=sans-serif size=1>Includes the 1993 Stock
      Option Plan, 2000 Stock Option Plan and the Employee Stock Purchase
      Plan.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(2)</FONT></TD>
    <TD noWrap>&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face=sans-serif size=1>Includes 367,947 shares
      available for future issuance as stock options or restricted stock under
      the 2000 Stock Option Plan and 143,730 shares available for future
      issuance under the Employee Stock Purchase Plan. No additional grants will
      be made from the 1993 Stock Option Plan.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(3)</FONT></TD>
    <TD noWrap></TD>
    <TD width="100%"><FONT face=sans-serif size=1>Represents our Outside
      Directors Stock Option Plan, which has been approved by our Board of
      Directors but was not required to be approved by our shareholders. The
      plan called for each non-employee director to be granted on April 1 of
      each year an option to purchase 1,000 shares of our common stock at the
      market value on the date of the grant. The options vest six months from
      the date of grant and expire ten years from the date of grant. No grants
      have been made since fiscal 2004 under this plan and it is currently the
      intention of the Board of Directors not to grant stock options under this
      plan in the future.</FONT></TD></TR></TABLE>
<P align=center><FONT face=sans-serif size=2>-19-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=sans-serif size=2>Nonqualified Deferred
Compensation</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
following table sets forth for each Executive information on the nonqualified
deferred compensation plan with respect to deferrals, our match, earnings and
distributions made during fiscal 2007 along with the ending account balance at
February 2, 2008. </FONT></P>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>Executive</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>Registrant</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>Contributions
      in</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>Contributions in
      Last</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>Aggregate
      Earnings in</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>Aggregate
      Withdrawals</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>Aggregate
      Balance at</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="59%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>La</FONT><FONT face=sans-serif size=1>st Fiscal Year
      (1)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>Fiscal Year (2)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>Last Fiscal Year (3)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>and Distributions</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=2><FONT face=sans-serif size=1>Last Fiscal Year End</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Mark L. Lemond</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>50,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>25,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4,661</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>50,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>569,284</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif size=1>J. Wayne
      Weaver</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Timothy T. Baker</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>50,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>16,989</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>4,529</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>340,255</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="59%"><FONT face=sans-serif size=1>W. Kerry
      Jackson</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>35,901</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>17,950</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>4,435</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>311,997</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="59%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Clifton E. Sifford</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>50,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>16,989</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>21,896</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=sans-serif size=1>410,559</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(1)</FONT></TD>
    <TD noWrap>&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%"><FONT face=sans-serif size=1>The amounts are included in
      the Salary column in the Summary Compensation Table for 2007.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(2)</FONT></TD>
    <TD noWrap></TD>
    <TD vAlign=top width="100%"><FONT face=sans-serif size=1>The amounts are included in
      the All Other Compensation column in the Summary Compensation Table for
      2007.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(3)</FONT></TD>
    <TD noWrap></TD>
    <TD vAlign=top width="100%"><FONT face=sans-serif size=1>The amounts shown in this
      column are not reported as compensation in the Summary Compensation Table,
      as they do not represent above-market or preferential earnings on deferred
      compensation.</FONT></TD></TR></TABLE>
<P align=left><FONT face=sans-serif size=2><U>Non-Equity Based Compensation &#150;
Narrative Discussion</U></FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Pension Benefits Table has been
excluded, as we do not have a defined benefit plan. On February 24, 1994, our
Board of Directors approved the Shoe Carnival Retirement Savings Plan. The
primary savings mechanism is a 401(k) plan. Further information regarding the
Shoe Carnival Retirement Savings Plan can be found in Note 8 of the Notes to
Consolidated Financial Statements included in Part II, Item 8 of our Annual
Report on Form 10-K for the fiscal year ended February 2, 2008.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In fiscal 2000, we established a
nonqualified deferred compensation plan for certain key employees who, due to
Internal Revenue Service limitations, cannot defer an adequate level of
replacement income for their retirement planning.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Features of the plan
include:</FONT></P>
<UL>
  <LI><FONT face=sans-serif size=2>Participants elect on a calendar year basis to
  defer, on a pre-tax basis, portions of their current base salary and bonus
  until retirement, or earlier if so elected, up to a maximum of $50,000 per
  calendar year.<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>The compensation deferred under this plan is
  credited with earnings or losses on a daily basis and measured by the mirrored
  rate of return on investments elected by plan participants similar to those
  available under our 401(k) plan. These services are provided by a third-party
  provider.<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>While not required to, we can match a portion of
  the participant&#146;s contributions, which are then subject to immediate, one or
  two year vesting requirements depending on the length of service of the
  participant.<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>Benefits are paid out upon death, disability,
  retirement, financial hardship or termination of employment based on each
  participant&#146;s pre-selected pay-out schedule.<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>Designated future in-service distributions may be
  taken two years after the year of deferral and must be requested at a minimum
  of two years in advance. The amount of the distribution is restricted to the
  maximum of the actual deferral amount for the specific year, reduced by any
  investment loss.<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>The plan is currently unfunded.</FONT></LI></UL>
<P align=center><FONT face=sans-serif size=2>-20-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=sans-serif size=2>Termination and Change-in-Control
Arrangements</FONT></B></P>
<P align=left><U><FONT face=sans-serif size=2>Mark L. Lemond</FONT></U></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>On December 31, 2006, we entered
into a new Employment and Noncompetition Agreement (the "Agreement") with Mr.
Lemond. The term of the Agreement is through January 31, 2010. The term of the
</FONT><FONT face=sans-serif size=2>Agreement will be automatically extended one
year on each February 1<SUP>st</SUP></FONT><FONT face=sans-serif size=2>
beginning February 1, 2008, unless either party gives written notification not
more than 90 and not less than 30 days prior to February 1, in which case the
Agreement will terminate three years after such February
1<SUP>st</SUP></FONT><FONT face=sans-serif size=2> (such term, including any
extension is referred to as the "Term"). No such notification was given by
either party prior to February 1, 2008.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Agreement provides for an annual
base salary equivalent to Mr. Lemond&#146;s salary for fiscal 2007, subject to
increase by the Compensation Committee. Mr. Lemond is entitled to participate in
our 2006 Executive Incentive Compensation Plan, and in any successor plan
adopted by us from time to time. Mr. Lemond is also entitled to participate in
any and all welfare and health benefit plans and other employee benefit plans.
Under the Agreement, employment will terminate upon Mr. Lemond's death and, may
be terminated by us upon Mr. Lemond's disability, or by us for cause or without
cause. Mr. Lemond may terminate employment with good reason, without good reason
or for voluntary retirement. Under the Agreement, "cause" is defined as any one
or more of the following actions by Mr. Lemond:</FONT></P>
<UL>
  <LI><FONT face=sans-serif size=2>conviction for a felony or other crime involving
  moral turpitude;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>willfully engaging in illegal conduct or gross
  misconduct which is injurious to us;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>willfully engaging in any fraudulent or dishonest
  conduct in his dealings with, or on behalf of, us;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>willful failure or refusal to follow the lawful
  and reasonable instructions of our Chairman of the Board or the Board of
  Directors;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>willful material breach of any of his obligations
  under the Agreement;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>material breach of our policies;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>use of alcohol or drugs which substantially
  interferes with the performance of his duties for us or which compromises our
  integrity or reputation; or<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>willfully engaging in any conduct, which as a
  result of such conduct, our integrity or reputation is substantially
  compromised.</FONT></LI></UL>
<P align=left><FONT face=sans-serif size=2>In addition, "good reason" is defined
as (i) the assignment to Mr. Lemond of any duties inconsistent in any material
respect with his position, authority, duties or responsibilities or any other
action by us which results in a significant diminution in such position,
authority, duties or responsibilities; (ii) any reduction in his base salary;
(iii) any requirement that he relocate outside of the metropolitan area of his
current residence or any relocation of our principal executive office outside of
Evansville, Indiana; (iv) any failure by us to have any successor assume the
Agreement; (v) any breach by us of any other material provision of the
Agreement; or (vi) notice from us that the Term will not be automatically
extended, but only if Mr. Lemond terminates his employment within six months
after the date of such notice.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The total benefits payable to Mr.
Lemond under the new Agreement are less than those previously provided by his
July 1, 2002 agreement.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-21-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<PAGE>

<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=sans-serif size=2>The
following table sets forth the estimated payout Mr. Lemond would receive from us
under each of the specific triggering events and assumes that the triggering
event took place on February 2, 2008, the last day of our most recently
completed fiscal year. </FONT></P>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" align=left width="76%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=center width="1%" ></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Death,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=center width="1%" ></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Without Cause or</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=center width="1%" ></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>For Cause or by</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=center width="1%" ></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="76%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Retirement
      or</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>by Employee
      for</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Employee
      Without</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Change-in-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="76%"><FONT face=sans-serif size=1>Description of Payout and/or
      Accelerated Vesting</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Disability</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Good Reason</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Good Reason</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Control (1)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="76%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Bonus for year of separation (2)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>422,100</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>422,100</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>422,100</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="76%"><FONT face=sans-serif size=1>Cash severance
      (3)</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>3,376,800</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>3,376,800</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="76%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Medical and dental benefits (4)</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>75,000</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>75,000</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="76%"><FONT face=sans-serif size=1>Restricted
      stock, accelerated vesting (5)</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>373,800</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="76%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Gross up on excise tax (6)</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>984,500</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="76%"><FONT face=sans-serif size=1>Excise tax (6)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%"><FONT face=sans-serif size=1>646,800</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="76%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Total</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>422,100</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>3,873,900</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>5,879,000</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(1)</FONT></TD>
    <TD noWrap >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face=sans-serif size=1>The Agreement does not
      contain a specific change-in-control provision for Mr. Lemond. However,
      the Agreement does contain an assignment clause which requires any
      successor company to assume and agree to perform the Agreement in the same
      manner and to the same extent that we would be required to perform it if
      no such succession had taken place. Therefore, upon a change-in-control of
      the Company, the terms of the triggering events would still apply upon Mr.
      Lemond&#146;s termination from the Company. This example assumes both a
      change-in-control of the Company and termination of Mr. Lemond without
      cause or by him for good reason as of February 2, 2008.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(2)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>The bonus for year of
      separation is computed as a prorated amount of the Target Bonus (the
      target bonus payable under the 2006 Executive Incentive Compensation Plan
      or any successor plan) to be paid in a lump sum within 15 days of
      termination. In this table, the amount represents 100% of his Target Bonus
      for fiscal 2007.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(3)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>The cash severance would be
      paid in a lump sum within 15 days of termination in an amount equal to
      three times the sum of his current base salary plus Target Bonus for the
      fiscal year in which the termination occurs. In this example, Mr. Lemond&#146;s
      Target Bonus for fiscal 2007 was utilized.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(4)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>Upon a termination without
      cause or by employee for good reason, Mr. Lemond would qualify for medical
      and dental benefits for the remainder of the Term or until Mr. Lemond is
      re-employed and is covered under that employer&#146;s medical benefit plan. The
      table assumes three years of estimated benefits.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(5)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>The 2000 Stock Option Plan
      under which our restricted shares were issued includes a change-in-control
      provision providing for the immediate vesting of any currently unvested
      shares of restricted stock. In this example, the value was calculated by
      multiplying $14.95, the closing price of our common stock on February 1,
      2008, by the number of unvested shares of restricted stock held by Mr.
      Lemond on February 2, 2008.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(6)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>If any payment under the
      Agreement would be subject to the excise tax under Section 4999 of the
      Code, Mr. Lemond would be entitled to receive additional compensation from
      us to cover the excise taxes, interest and penalties (if applicable) and
      other taxes arising from the additional compensation. In this example,
      under the "Change-in-Control" triggering event, Mr. Lemond would have
      qualified to receive additional compensation from us to cover excise taxes
      at February 2, 2008. The taxes have been computed in accordance with
      Section 280G of the Code.</FONT></TD></TR></TABLE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=sans-serif size=2>Other
factors material to the Agreement include the following: </FONT></P>
<UL>
  <LI><FONT face=sans-serif size=2>The
  benefits granted to Mr. Lemond under the Agreement are subject to certain
  employment and post-employment conditions. This includes, but is not limited
  to, Mr. Lemond&#146;s agreement not to contribute his knowledge and abilities to
  any business or entity in competition with us for a period of two years
  following the termination of his employment.<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>Notwithstanding any other provision of the Agreement, upon
  termination of Mr. Lemond&#146;s employment for any reason, he shall be entitled to
  receive all accrued but unpaid compensation, bonuses and benefits under all of
  our compensation, bonus and benefit plans in which he is a participant, all in
  accordance with the terms of such plans. These plans include, without
  limitation, our 401(k) plan, deferred compensation plan and bonus plans which
  are earned in a fiscal year, but paid in the following year.<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>In the
  event we terminate Mr. Lemond without cause or he terminates with good reason,
  stock options issued to Mr. Lemond prior to December 31, 2006 could be
  exercised within 90 days of termination. Any stock options issued after
  December 31, 2006 would immediately vest and will be exercisable during the
  remainder of the Term. Stock options held by Mr. Lemond at February 2, 2008
  are set forth in the "Outstanding Equity Awards at Fiscal Year-End" table on
  page 18.</FONT></LI></UL>
<P align=left><FONT face=sans-serif size=2><U>Timothy Baker, Kerry Jackson and
Clifton Sifford</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=sans-serif size=2>On December
31, 2006, we entered into Employment and Noncompetition Agreements (the
"Agreements") with Timothy Baker, Kerry Jackson and Clifton Sifford. The terms
of the Agreements are through January 31, 2009, for
Mr. Baker and Mr. Jackson and February 1, 2009, for Mr. Sifford (such terms,
including any extension are referred to as the "Terms"). The Agreements are
subject to early termination as provided in the Agreements. The Agreements
automatically extend for successive one-year periods unless either party gives
notification of non-renewal at least 60 days prior to the end of the then
current Term. For Mr. Baker and Mr. Sifford, this form of Agreement replaces
their August 1, 2001 agreements. Mr. Jackson did not have a previous employment
and noncompetition agreement. The new Agreements standardize the benefits
payable to such Executives and better reflect current competitive conditions.
</FONT></P>
<P align=center><FONT face=sans-serif size=2>-22-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Agreements provide for an annual
base salary equivalent to each such Executive&#146;s salary for fiscal 2007, subject
to increase by the Compensation Committee. Messrs. Baker, Jackson and Sifford
are each entitled to participate in our 2006 Executive Incentive Compensation
Plan, and in any successor plan adopted by us from time to time. Such Executives
are also entitled to participate in any and all welfare and health benefit plans
and other employee benefit plans. Under each of the Agreements, employment will
terminate upon death and, may be terminated by us upon the disability of such
Executive, or by us for cause or without cause. Each such Executive may
terminate employment voluntarily or with good reason.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Under
the Agreements, "cause" is defined as any one or more of the following actions
by the respective Executive: </FONT></P>
<UL>
  <LI><FONT face=sans-serif size=2>conviction
  for a felony or other crime involving moral turpitude;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>engaging
  in illegal conduct or gross misconduct which is injurious to
  us;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>engaging
  in any fraudulent or dishonest conduct in his dealings with, or on behalf of,
  us;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>failure or
  refusal to follow the lawful and reasonable instructions of our Chief
  Executive Officer, President, or other executive officer to whom the Executive
  reports;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>material
  breach of any of his obligations under the Agreements;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>material
  breach of our policies;<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>use of
  alcohol or drugs which substantially interferes with the performance of his
  duties for us or which compromises our integrity or reputation;
  or<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>engaging
  in any conduct tending to bring us into public disgrace or
  disrepute.</FONT></LI></UL>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In addition, "good reason" is
defined as a reduction in the Executive's position, responsibilities or base
salary. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following tables set forth the
estimated payout each such Executive would receive from us under each of the
specific triggering events and assumes that the triggering event took place on
February 2, 2008, the last day our most recently completed fiscal
year.</FONT></P>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="76%"><I><FONT face=sans-serif size=2>Timothy Baker</FONT></I></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="4%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="76%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" ></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Without Cause or</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>For Cause or by</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="76%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Death or</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>by Employee for</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Employee Without</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Change-in-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="76%"><FONT face=sans-serif size=1>Description of Payout and/or Accelerated
      Vesting</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Disability</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Good Reason</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Good Reason</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Control</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="76%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Bonus for year of separation
      (1)</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%"  bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>191,300</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp;
    </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="76%"><FONT face=sans-serif size=1>Cash severance (2)</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%" ><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>637,500</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>1,232,500</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="76%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Out-placement services
    (3)</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%"  bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2,500</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="76%"><FONT face=sans-serif size=1>Medical and dental benefits (4)</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%" ><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>22,900</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>22,900</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="76%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Restricted stock, accelerated vesting (5)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%"  bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>219,300</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="76%"><FONT face=sans-serif size=1>Total</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%" ><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%"><FONT face=sans-serif size=1>851,700</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%"><FONT face=sans-serif size=1>1,477,200</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face=sans-serif size=2>-23-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="75%"><I><FONT face=sans-serif size=2>Kerry Jackson</FONT></I></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=right width="4%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Without Cause or</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>For Cause or by</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Death or</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>by Employee for</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Employee Without</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Change-in-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="75%"><FONT face=sans-serif size=1>Description of Payout and/or Accelerated
      Vesting</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Disability</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Good Reason</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Good Reason</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Control</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Bonus for year of separation (1)</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>168,800</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%"><FONT face=sans-serif size=1>Cash severance
      (2)</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>562,500</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>1,087,500</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Out-placement services (3)</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2,500</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%"><FONT face=sans-serif size=1>Medical and dental
      benefits (4)</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>22,900</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>22,900</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Restricted stock, accelerated vesting (5)</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>219,300</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%"><FONT face=sans-serif size=1>Gross up on excise
      tax (6)</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>292,700</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="75%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Excise tax (6)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>192,300</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="75%"><FONT face=sans-serif size=1>Total</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%"><FONT face=sans-serif size=1>754,200</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%"><FONT face=sans-serif size=1>1,817,200</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=13>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="75%"><I><FONT face=sans-serif size=2>Clifton Sifford</FONT></I></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=center width="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="4%"></TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Without
      Cause or</FONT></TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="5%" colSpan=2><FONT face=sans-serif size=1>For
      Cause or by</FONT></TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%"></TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Death
      or</FONT></TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="5%" colSpan=2><FONT face=sans-serif size=1>by
      Employee for</FONT></TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Employee Without</FONT></TD>
    <TD align=center width="1%"></TD>
    <TD align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Change-in-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="75%"><FONT face=sans-serif size=1>Description of Payout and/or Accelerated
      Vesting</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Disability</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Good Reason</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Good Reason</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Control</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Bonus for year of separation (1)</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>191,300</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%"><FONT face=sans-serif size=1>Cash severance
      (2)</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>637,500</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>1,232,500</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Out-placement services (3)</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>2,500</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="75%"><FONT face=sans-serif size=1>Medical and dental
      benefits (4)</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>22,900</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD align=left width="1%"></TD>
    <TD align=left width="1%"></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>22,900</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="75%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Restricted stock, accelerated
      vesting (5)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>219,300</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="75%"><FONT face=sans-serif size=1>Total</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%"><FONT face=sans-serif size=1>851,700</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%"><FONT face=Arial size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" align=right width="4%"><FONT face=sans-serif size=1>1,477,200</FONT></TD></TR></TABLE>
<BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(1)</FONT></TD>
    <TD noWrap >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face=sans-serif size=1>The bonus for year of
      separation is computed as a prorated amount of the Target Bonus (the
      target bonus payable under the 2006 Executive Incentive Compensation Plan
      or any successor plan) to be paid in a lump sum within 30 days of
      termination. In these examples, the amount represents 100% of each
      Executive&#146;s Target Bonus for fiscal 2007.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(2)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>The cash severance for
      termination without cause or by employee for good reason would be paid in
      a lump sum within 30 days of termination in an amount equal to 150% of
      each Executive&#146;s current base salary for the fiscal year in which the
      termination occurs. Upon a change-in-control, a lump sum cash severance
      would be paid within 30 days of termination in an amount equal to 200% of
      each Executive&#146;s current base salary plus Target Bonus for the fiscal year
      in which the termination occurs. In these examples, each Executive&#146;s
      Target Bonus for fiscal 2007 was utilized.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(3)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>We will provide
      out-placement services at a cost not to exceed $2,500 in the event of a
      change-in-control.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(4)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>Upon a termination without
      cause, by employee for good reason or a change-in-control, each Executive
      would qualify for reimbursement of COBRA payments for up to 18 months from
      the date of termination or until the Executive is re-employed and is
      covered under that employer&#146;s medical benefit plan. The tables assume 18
      months of benefits.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(5)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>The 2000 Stock Option Plan,
      under which our restricted shares were issued, includes a
      change-in-control provision providing for the immediate vesting of any
      currently unvested shares of restricted stock. In this example, the value
      was calculated by multiplying $14.95, the closing price of our common
      stock on February 1, 2008, by the number of unvested shares of restricted
      stock held by each Executive on February 2, 2008.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(6)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>If any payment under the
      Agreement would be subject to the excise tax under Section 4999 of the
      Code, each Executive would be entitled to receive additional compensation
      from us to cover the excise taxes, interest and penalties (if applicable)
      and other taxes arising from the additional compensation. In this example,
      under a change-in-control Mr. Jackson would have qualified to receive
      additional compensation from us to cover excise taxes at February 2, 2008.
      The taxes have been computed in accordance with Section 280G of the
      Code.</FONT></TD></TR></TABLE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=sans-serif size=2>Other
factors material to the Agreements are as follows: </FONT></P>
<UL>
  <LI><FONT face=sans-serif size=2>The
  benefits granted to each Executive under the Agreements are subject to certain
  employment and post-employment conditions. This includes, but is not limited
  to, the agreement by each Executive not to contribute knowledge and abilities
  to any business or entity in competition with us for a period of one year
  following termination of the Executive&#146;s employment.<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>Notwithstanding any other provision of the Agreements, upon
  termination of employment for any reason, the Executive shall be entitled to
  receive all accrued but unpaid compensation, bonuses and benefits under all of
  our compensation, bonus and benefit plans in which the Executive is a
  participant, all in accordance with the terms of such plans.<BR>&nbsp;</FONT>
  <LI><FONT face=sans-serif size=2>In the
  event we terminate any of the three Executives without cause or they terminate
  with good reason, any stock options issued after December 31, 2006 that would
  have vested within 12 months of termination would immediately vest. Under the
  same conditions but within two years of a change-incontrol, all stock options
  issued to each Executive prior to December 31, 2006 would be exercisable
  within 90 days of termination.</FONT></LI></UL>
<P align=center><FONT face=sans-serif size=2>-24-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><U><FONT face=sans-serif size=2>J. Wayne Weaver</FONT></U><FONT face=sans-serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=sans-serif size=2>On January
15, 1993, we entered into a noncompetition agreement with J. Wayne Weaver. As
long as Mr. Weaver is our executive officer or director he may not engage
directly or indirectly through any other company or entity in the retail shoe
business without the prior approval of our Audit Committee. The Audit Committee
has approved Mr. Weaver's association with LC Footwear, LLC and PL Footwear,
Inc. Effective February 1, 1993, Mr. Weaver became our employee at an annual
salary of $300,000. Although Mr. Weaver will continue to be involved in other
business activities and will not devote his full time to the Company, he will
devote such time to the Company as he deems necessary or appropriate to perform
his duties as Chairman of the Board. </FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Compensation of Non-Employee
Directors </FONT></B></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>The following table sets forth
information with respect to non-employee director compensation paid during the
fiscal year ended February 2, 2008. The compensation paid during the fiscal year
ended February 2, 2008 to J. Wayne Weaver and Mark L. Lemond is included in the
Summary Compensation Table on page 15. </FONT></P>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=left width="81%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Fees Earned
      or</FONT></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="81%"><FONT face=sans-serif size=1>Name (1)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Paid in Cash</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Stock Awards (2)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>Total</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="81%" bgColor=#c0c0c0><FONT face=sans-serif size=1>William E. Bindley</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>28,250</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>14,413</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>42,663</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="81%"><FONT face=sans-serif size=1>Kent A.
      Kleeberger</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>32,000</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>14,413</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>46,413</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="81%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Gerald W. Schoor</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>31,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>14,413</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>45,413</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(1)</FONT></TD>
    <TD noWrap >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face=sans-serif size=1>Information on our
      non-employee directors can be found in "Proposal No. 1 Election of
      Directors - Nominees and Director Information" on page 4 as well as in
      "Information Regarding the Board of Directors and Committees" on page
      5.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(2)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>The amounts reported above
      were computed under the requirements of SFAS No. 123R as adopted by us on
      January 29, 2006 and represent the amount of equity compensation expense
      recorded during fiscal 2007 for the shares held by each director. The
      above amounts include compensation expense for stock awards granted in the
      previous fiscal year.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>Disclosure of the relevant
      assumptions related to the valuation of awards is provided in Note 2 and
      Note 9 of the Notes to the Consolidated Financial Statements contained in
      Part II, Item 8 of our Annual Report on Form 10-K for the year ended
      February 2, 2008.</FONT></TD></TR></TABLE>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>The annual retainer for each non-employee
director is $20,000. In addition to the annual retainer, the Chairman of the
Audit Committee receives additional annual compensation of $5,000, while the
Chairman of the Compensation Committee, Chairman of the Nominating and Corporate
Governance Committee and the Lead Director each receive additional annual
compensation of $2,000. Other fees payable include a fee of $1,000 for each
meeting of the Board with accompanying Committee meetings attended and a fee of
$1,000 for each Committee meeting in which the full Board does not meet or $750
if attendance is by conference call. All directors receive reimbursement of
reasonable out-of-pocket expenses incurred in connection with meetings of the
Board. No director who is our officer or employee receives compensation for
services rendered as a director. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>During 2007, the Board of Directors met
four times, one of which was held in Jacksonville, Florida, and spouses of our
directors and executive officers were invited at our expense. This offsite
meeting and related social gatherings provided directors with an opportunity to
learn more about their fellow directors and our executive officers. The
incremental cost to us for the travel and other expenses in fiscal 2007 related
to spouses of outside directors was less than $1,000. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>On March 4, 1999, the Board of Directors
approved the Outside Directors Stock Option Plan. The plan reserves for issuance
25,000 shares of our common stock (subject to adjustment for stock splits, stock
dividends and certain other changes to the common stock). No grants have been
made under this plan since fiscal 2004 and it is currently the intention of the
Board not to grant stock options under this plan in the future. As of February
2, 2008, each non-employee director held shares issuable upon the exercise of
presently exercisable options granted under the Outside Directors Stock Option
Plan. Both Mr. Bindley and Mr. Schoor held 6,000 options each and Mr. Kleeberger
held 1,000 options under this plan.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-25-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=sans-serif size=2>The Board
adopted, and the shareholders approved on June 14, 2005, amendments to the 2000
Stock Option Plan to allow non-employee directors to participate. No grants have
been awarded to any non-employee director since each non-employee director was
awarded 500 shares of restricted stock under the 2000 Stock Option Plan on
January 2, 2007, with a grant date fair value of $15,800 based on the closing
market price of our common stock on that day. The restrictions on these shares
lapsed on January 2, 2008. No shares of restricted stock were held by any of the
non-employee directors at February 2, 2008. </FONT></P>
<P align=center><B><FONT face=sans-serif>PROPOSAL NO. 2<BR></FONT></B><B><FONT face=sans-serif>RATIFICATION OF OUR INDEPENDENT<BR>REGISTERED PUBLIC ACCOUNTING
FIRM</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
ratification of the appointment of Deloitte &amp; Touche LLP as our independent
registered public accounting firm for fiscal 2008 is recommended by the Audit
Committee and will be submitted to a vote at the meeting in order to permit our
shareholders to express their approval or disapproval. In the event of a
negative vote, a selection of another independent registered public accounting
firm will be made by the Audit Committee. A representative of Deloitte &amp;
Touche LLP is expected to be present at the meeting, will be given an
opportunity to make a statement if desired and will respond to appropriate
questions. Notwithstanding approval by our shareholders, the Audit </FONT><FONT face=sans-serif size=2>Committee reserves the right to replace the independent
registered public accounting firm at any time. </FONT></P>
<P align=center><B><FONT face=sans-serif size=2>The Board of Directors and the
Audit Committee recommend a vote FOR the ratification of Deloitte &amp;
Touche<BR>LLP as our independent registered public accounting firm for fiscal
2008.</FONT></B></P>
<P align=center><B><FONT face=sans-serif>AUDIT COMMITTEE MATTERS </FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Principal Accountant Fees And
Services </FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
following represents fees for professional audit services rendered by Deloitte
&amp; Touche LLP for the audit of our financial statements for fiscal 2007 and
2006 and fees billed for other services rendered by Deloitte &amp; Touche LLP.
</FONT></P>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=left width="87%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=5><FONT face=sans-serif size=1>Fiscal Year</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="87%"><FONT face=sans-serif size=1>Fee Category</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>2007</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=sans-serif size=1>2006</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Audit fees (1)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>435,200</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>438,000</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%"><FONT face=sans-serif size=1>Audit-related
      fees (2)</FONT></TD>
    <TD align=right width="1%" ></TD>
    <TD align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>20,047</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD align=right width="4%"><FONT face=sans-serif size=1>16,000</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=1>Tax fees</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="1%" bgColor=#c0c0c0><FONT face=sans-serif size=1>$</FONT></TD>
    <TD align=right width="4%" bgColor=#c0c0c0><FONT face=sans-serif size=1>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="87%"><FONT face=sans-serif size=1>All other fees (3)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%"><FONT face=sans-serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" ></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%"><FONT face=sans-serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="4%"><FONT face=sans-serif size=1>4,000</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(1)</FONT></TD>
    <TD noWrap >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face=sans-serif size=1>Audit fees consist of fees
      relating to the audit of our annual financial statements and the reviews
      of the financial statements filed on Form 10-Q; and fees for professional
      services rendered for the audits of (a) in fiscal 2006 management&#146;s
      assessment of the effectiveness of internal control over financial
      reporting and (b) in fiscal 2006 and fiscal 2007, the effectiveness of
      internal control over financial reporting.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(2)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>Audit-related fees consist
      of fees related to employee benefit plan audits.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>(3)</FONT></TD>
    <TD noWrap ></TD>
    <TD width="100%"><FONT face=sans-serif size=1>All other fees represent
      expenses related to consultation provided by Deloitte &amp; Touche LLP on
      various items.</FONT></TD></TR></TABLE>
<P align=left><B><FONT face=sans-serif size=2>Audit Committee Pre-Approval
Policy </FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
Audit Committee's policy is to pre-approve all audit and permissible non-audit
services provided by our independent registered public accounting firm. These
services may include audit services, audit-related services, tax services and
other services. Pre-approval is generally provided for up to one year and any
pre-approval is detailed as to the particular service or category of services,
the Audit Committee is informed of each service and the pre-approval is
generally subject to a specific budget. The Audit Committee may also pre-approve
particular services on a case-by-case basis. In addition, the Chairman of the
Audit Committee may act to pre-approve services in interim periods and request
ratification by the full Audit Committee at the next regularly scheduled
committee meeting. </FONT></P>
<P align=center><FONT face=sans-serif size=2>-26-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>For
fiscal 2007, pre-approved non-audit services included those services described
above under "Audit-related fees". The aggregate amount of all such non-audit
services constituted approximately 4.5% of the total amount of fees paid by us
to Deloitte &amp; Touche LLP. </FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Report of the Audit Committee
</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Management of the Company is responsible for the financial reporting
process, including the system of internal control over financial reporting, and
for the preparation of consolidated financial statements in conformity with
accounting principles generally accepted in the United States. The Company's
independent registered public accounting firm, Deloitte &amp; Touche LLP, is
responsible for performing the audit of the Company's consolidated financial
statements and expressing an opinion on those statements, as well as auditing
the effectiveness of the Company's internal control over financial reporting.
The Audit Committee is responsible for oversight of all aspects of the Company's
financial reporting, internal control over financial reporting and audit
processes.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>In
fulfillment of its responsibilities, the Audit Committee on a regular basis
discusses with both management and Deloitte &amp; Touche LLP the adequacy and
effectiveness of the Company's internal control over financial reporting. The
Audit Committee has reviewed and discussed the audited financial statements with
the Company's management and Deloitte &amp; Touche LLP. In addition, the Audit
Committee has discussed with Deloitte &amp; Touche LLP all matters required to
be discussed with audit committees by Statement on Auditing Standards No. 61,
"Communication with Audit Committees". Deloitte &amp; Touche LLP also provided
the Audit Committee the written disclosures and the letter required by the
Independence Standards Board Standard No. 1, "Independence Discussions with
Audit Committees". The Audit Committee has discussed with Deloitte &amp; Touche
LLP any relationships or services that might impact their objectivity and
independence. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Based
on the Audit Committee's review and discussions referenced in this report, the
Audit Committee recommended to the Board that the Company's audited financial
statements be included in the Company's Annual Report on Form 10-K for the
fiscal year ended February 2, 2008, as filed with the Securities and Exchange
Commission. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Audit Committee<BR><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT><FONT face=sans-serif size=2>Kent A. Kleeberger (Chair)<BR><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>William
E. Bindley<BR><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Gerald
W. Schoor</FONT></P>
<P align=center><B><FONT face=sans-serif>TRANSACTIONS WITH RELATED PERSONS
</FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Conflicts of Interest and Related
Person Transaction Policies </FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Under
our Ethics Code, our directors, officers and employees are not permitted to
conduct business on our behalf with a member of his or her family, or a business
organization with which he or she or a family member has an interest or
employment relationship that could be considered significant in terms of
potential conflict of interest unless such business dealings have been disclosed
to, and approved by, the Audit Committee (in the case of directors or executive
officers), the Chief Financial Officer (in the case of officers) or the
employee&#146;s Department Vice President (in the case of other employees).
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Further, under our Audit Committee&#146;s charter, the Audit Committee must
review and approve all related person transactions in which any executive
officer, director, director nominee or more than 5% shareholder, or any of their
immediate family members, has a direct or indirect material interest. The Audit
Committee may not approve a related person transaction unless it is in, or not
inconsistent with, our best interests and, where applicable, the terms of such
transaction are at least as favorable to us as could be obtained from an
unrelated party. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Each of
the related person transactions that occurred during fiscal 2007, as described
below, were reviewed and approved by the Audit Committee in accordance with
these policies. </FONT></P>
<P align=center><FONT face=sans-serif size=2>-27-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=sans-serif size=2>Current Transactions
</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Mr. J.
Wayne Weaver, along with Bradley W. Weaver, his son, and collectively the owners
of approximately 28.4% of the outstanding shares of our common stock, are
members of LC Footwear, LLC with Mr. J. Wayne Weaver serving as the managing
member. Both gentlemen were shareholders of PL Footwear, Inc., which during
December 2007 became a wholly owned subsidiary of LC Footwear, LLC. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>We have
historically made purchases of women's footwear from LC Footwear, LLC in the
ordinary course of business. During fiscal 2007, $56,000 in purchases were made.
Our management believes that purchases from LC Footwear, LLC historically have
been and will continue to be on terms that are not less favorable to us than
could be obtained from unrelated third parties for comparable merchandise.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>PL
Footwear, Inc., along with others, serve as import agents for us. Import agents
represent us on a commission basis in dealings with shoe factories primarily in
mainland China where most of our private label shoes are manufactured. As agents
for us, PL Footwear, Inc. and others visit shoe manufacturers, collect shoe
samples, submit these samples to us and advise us of market conditions and
availability of merchandise. They also help select materials, assist in
detailing and quality control and coordinate the production and delivery
schedule of a portion of our private label merchandise. We paid PL Footwear,
Inc. 10% of the gross purchase price of shoes bought through that company.
Commissions paid to PL Footwear, Inc. were approximately $892,000 in fiscal
2007. Our management believes that the arrangements with PL Footwear, Inc. were
on terms that were no less favorable to us than could be obtained from unrelated
parties.</FONT><B><FONT face=sans-serif size=2> </FONT></B></P>
<P align=center><B><FONT face=sans-serif>PROPOSAL NO. 3<BR>APPROVAL OF THE PROPOSED AMENDMENT TO
THE<BR>SHOE CARNIVAL, INC. 2000 STOCK OPTION AND INCENTIVE PLAN</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>On May
1, 2000, our Board of Directors adopted the 2000 Stock Option and Incentive Plan
(the "2000 Stock Option Plan") and our Board of Directors and shareholders
approved the 2000 Stock Option Plan, effective June 8, 2000. On March 10, 2004,
the Board of Directors adopted, and on June 11, 2004, the shareholders approved,
an amendment to the 2000 Stock Option Plan that increased the number of shares
of our common stock subject to issuance under the 2000 Stock Option Plan from
1,000,000 to 1,500,000.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>On
March 25, 2005, the Board of Directors adopted, and on June 14, 2005, the
shareholders approved, an amendment to the 2000 Stock Option Plan that (1)
included our directors as individuals eligible to receive awards under the 2000
Stock Option Plan; (2) provided that the exercise price of all options granted
under the 2000 Stock Option Plan may not be less than the fair market value of
our common stock on the date that the option is granted; and (3) deleted the
provision permitting loans to participants in the 2000 Stock Option
Plan.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>On
March 18, 2008, the Board of Directors adopted an amendment to the 2000 Stock
Option Plan and directed that the amendment be submitted to our shareholders for
consideration and approval at the 2008 annual meeting. The amendment would (1)
increase the number of shares of our common stock subject to issuance under the
2000 Stock Option Plan from 1,500,000 to 2,000,000, and (2) extend the term of
the 2000 Stock Option Plan until the later of ten years from the date of
adoption of the plan by our shareholders or the approval of any amendment of the
plan by our shareholders. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
following is a summary of the principal features of the 2000 Stock Option Plan
and is qualified in its entirety by reference to the complete text of the 2000
Stock Option Plan, as proposed to be amended, as set forth as Appendix A to this
proxy statement. Shareholders are urged to read the actual text of the 2000
Stock Option Plan as proposed to be amended. Capitalized terms used but not
defined herein have the meanings assigned to them in the 2000 Stock Option Plan.
</FONT></P>
<P align=center><FONT face=sans-serif size=2>-28-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=sans-serif size=2>Purpose</FONT></B><FONT face=sans-serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
purpose of the 2000 Stock Option Plan is to promote the long-term interests of
both the Company and shareholders by providing a means for attracting and
retaining officers, key employees and directors. We believe that employees and
directors who own shares of our common stock will have a closer identification
with the Company and greater motivation to work for our success by reason of
their ability as shareholders to participate in our growth and earnings.
</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Eligible Persons</FONT></B><FONT face=sans-serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Currently, recipients of awards under the 2000 Stock Option Plan must be,
or have been at the time of grant, officers, key employees (as determined by the
Compensation Committee) or non-employee directors. We presently have
approximately</FONT><B><FONT face=sans-serif size=2> </FONT></B><FONT face=sans-serif size=2>400 officers, employees who fall within the category of
key employees and non-employee directors who have or may be considered for
awards under the 2000 Stock Option Plan.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Shares Subject to the 2000 Stock
Option Plan </FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
2000 Stock Option Plan permits the granting of awards of stock options and
restricted stock. The total number of shares with respect to which awards may be
made under the 2000 Stock Option Plan is 1,500,000. Under the proposed
amendment, 2,000,000 shares would be available for issuance under the 2000 Stock
Option Plan. The number of shares subject to the 2000 Stock Option Plan is
subject to antidilution adjustments.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
number of shares covered by an award under the 2000 Stock Option Plan reduces
the number of shares available for future awards under the 2000 Stock Option
Plan; however, any shares of restricted stock that ultimately are forfeited to
the Company by the grantee will become available for further awards under the
2000 Stock Option Plan. Similarly, if any stock option granted under the 2000
Stock Option Plan expires, terminates, or is surrendered or cancelled without
having been exercised in full, the number of shares then subject thereto is
added back to the number of remaining available shares under the 2000 Stock
Option Plan. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
total number of shares that may be granted to any individual during any calendar
year under all forms of awards may not exceed 300,000 shares. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>As of
March 18, 2008, options to purchase 323,918 shares were outstanding and 250,154
shares of restricted stock were outstanding under the 2000 Stock Option Plan.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
closing sale price of our common stock on March 18, 2008, as quoted on The
NASDAQ Stock Market LLC and reported in The Wall Street Journal, was $12.50 per
share.</FONT><B><FONT face=sans-serif size=2> </FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Administration of the Plan
</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
2000 Stock Option Plan is administered by the Compensation Committee (the
"Committee"). Subject to the terms of the 2000 Stock Option Plan, the Committee
has the sole authority and discretion to determine those officers, key employees
and non-employee directors who are to be granted awards under the 2000 Stock
Option Plan and the nature and terms of the awards to be granted, including the
number of shares covered by such awards. </FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Grant of Stock Options
</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>With
respect to the grant of stock options under the 2000 Stock Option Plan that are
intended to qualify as "incentive stock options" under Section 422 of the Code,
the exercise price will be at least 100% (or 110% in the case of any holder of
more than 10% of our voting power) of the fair market value of our common stock
on the date of the grant of the stock option. The aggregate fair market value
(determined on the date of grant) of the shares of stock subject to incentive
stock options that become exercisable for the first time by a grantee in any
calendar year may not exceed $100,000. The exercise price of options that do not
qualify as incentive stock options </FONT><FONT face=sans-serif size=2>("nonqualified stock options") may not be less than 100% of the fair
market value of our common stock on the date of the grant of the stock
option.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
exercise price of, and the number of shares subject to, an option will be
adjusted by the Committee in the event of stock splits, stock dividends,
recapitalizations and certain other events involving a change in our capital.
</FONT></P>
<P align=center><FONT face=sans-serif size=2>-29-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>During
the time that the 2000 Stock Option Plan has been in effect, the Executives have
received options to purchase the indicated numbers of shares of common stock
under the 2000 Stock Option Plan as follows: Mr. Lemond -- 105,000 shares; Mr.
Weaver -- 0 shares; Mr. Baker --</FONT><B><FONT face=sans-serif size=2>
</FONT></B><FONT face=sans-serif size=2>45,000 shares; Mr. Sifford -- 45,000
shares; and Mr. Jackson -- 35,000 shares. All current executive officers as a
group have been granted options under the 2000 Stock Option Plan to purchase
230,000 shares of common stock. Additionally, options totaling 831,667 shares
have been received by all our employees as a group, other than executive
officers, pursuant to the 2000 Stock Option Plan. The preceding numbers
represent option grants pursuant to the 2000 Stock Option Plan up to March 18,
2008, excluding any options which have been canceled or forfeited. None of our
current non-employee directors have been granted any options to purchase shares
of common stock under the 2000 Stock Option Plan, but such directors are
eligible for such grants. </FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Exercise of Stock
Options</FONT></B><FONT face=sans-serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>No
incentive stock option granted under the 2000 Stock Option Plan may be exercised
more than ten years (or, in the case of any holder of more than 10% of our
voting power, five years) or such shorter period as the Committee may determine
from the date it is granted. Nonqualified stock options may be exercised during
such period as the Committee determines at the time of grant. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>If a
grantee's employment with us or one of our subsidiaries is terminated for cause
or voluntarily by the grantee for any reason other than death, disability or
retirement, such grantee's options expire at the date of termination, and the
grantee must (unless waived by the Committee) repay to us the amount of any gain
realized by the grantee upon any exercise within the 90-day period prior to the
date of termination of any options granted to the grantee under the 2000 Stock
Option Plan. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Stock
options granted under the 2000 Stock Option Plan will become exercisable in one
or more installments in the manner and at the time or times specified by the
Committee at the time of grant.</FONT><B><FONT face=sans-serif size=2>
</FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Restricted Stock</FONT></B><FONT face=sans-serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Awards
under the 2000 Stock Option Plan may be made in the form of restricted stock, in
which case the participant would be granted shares of our common stock, which
shares would be subject to such forfeiture provisions and transfer restrictions
as the Committee determined at the time of grant. Pending the lapse of such
forfeiture provisions and transfer restrictions, certificates representing
restricted stock would be held by us, but the grantee generally would have all
of the rights of a shareholder, including the right to vote the shares and the
right to receive all dividends thereon. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>While
restricted stock would be subject to forfeiture provisions and transfer
restrictions for a period or periods of time, the 2000 Stock Option Plan does
not set forth any minimum or maximum duration for such provisions and
restrictions. It is expected that the terms of restricted stock awards
ordinarily will provide that the restricted stock will be forfeited to the
Company if the grantee ceases to be employed by us prior to the lapse of the
forfeiture provisions and transfer restrictions, subject to exceptions for
death, disability or retirement while employed. The Committee has the discretion
to determine whether an award of restricted stock will vest upon the lapse of
certain time period(s) or upon the achievement of specified performance targets
during a performance period. Performance targets may be based on
one or more of the following business criteria: annual return to shareholders;
total net sales; net earnings; net earnings before nonrecurring expenses; return
on equity; return on assets; diluted earnings per share; earnings before
interest, taxes, depreciation and amortization ("EBITDA"); and EBITDA before
nonrecurring expenses. In the case of grants of restricted stock that are
intended to qualify as "performance-based compensation" under Section 162(m) of
the Code, no shares of restricted stock will become vested, except in limited
circumstances, unless the performance targets shall have been
satisfied and the Committee has certified, by resolution or other appropriate action in
writing, that the performance targets previously established by the Committee
have been satisfied. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>During
the time that the 2000 Stock Option Plan has been in effect, the Executives have
received the indicated numbers of shares of restricted stock under the 2000
Stock Option Plan as follows: Mr. Lemond &#150; 56,000 shares; Mr. Weaver -- 0
shares; Mr. Baker &#150; 30,000 shares; Mr. Sifford &#150; 34,000 shares; and Mr. Jackson
&#150; 34,000 shares. All current executive officers as a group have been granted
154,000 shares of restricted stock under the 2000 Stock Option Plan. A total of
196,550 shares of restricted stock have been received by all other employees.
Our non-employee directors have received 3,000
shares. The preceding numbers represent restricted stock grants pursuant to the
2000 Stock Option Plan up to March 18, 2008. All of such grants have occurred
since the beginning of fiscal 2005.</FONT></P>
<P align=center><FONT face=sans-serif size=2>-30-</FONT></P>
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<PAGE>
<P align=left><B><FONT face=sans-serif size=2>Payment for Shares</FONT></B><FONT face=sans-serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
Committee may permit payment of the exercise price of stock options to be made
in cash, by the surrender of common stock valued at its then fair market value,
through a cashless exercise, or by such other means (including a combination of
stock and cash) as it deems appropriate. </FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Miscellaneous
Provisions</FONT></B><FONT face=sans-serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
Committee may accelerate the period of exercise or vesting of any award made
under the 2000 Stock Option Plan, either absolutely or contingently, for such
reasons as the Committee may deem appropriate, except to the extent inconsistent
with qualification under Section 162(m) of the Code, when such qualification is
intended. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>In
general, if the employment of a recipient of restricted stock is involuntarily
terminated within 18 months following a change in control of the Company, the
forfeiture provisions and transfer restrictions applicable to such stock lapse.
In addition, in the event of a tender offer or exchange offer for our common
stock or upon the occurrence of certain other events, all options granted under
the 2000 Stock Option Plan shall become exercisable in full, unless otherwise
provided by the Committee.</FONT><B><FONT face=sans-serif size=2>
</FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Amendment and Termination of the
Plan</FONT></B><FONT face=sans-serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Our
Board of Directors may at any time terminate or amend the 2000 Stock Option
Plan. No amendments to the 2000 Stock Option Plan will require shareholder
approval unless such approval is required to comply with Section 422 of the
Code, the requirements of NASDAQ or any other applicable law or regulation.
Unless previously terminated by the Board of Directors, no further awards may be
made under the 2000 Stock Option Plan after the later of ten years from the date
of its adoption by our shareholders or the approval of any amendment of the plan
by our shareholders.</FONT><B><FONT face=sans-serif size=2> </FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Federal Income Tax Consequences
</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
following is a brief summary of the principal federal income tax consequences of
awards under the 2000 Stock Option Plan. The summary is based on current federal
income tax laws and interpretations thereof, all of which are subject to change
at any time, possibly with retroactive effect. The summary is not intended to be
exhaustive. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=sans-serif size=2>Limitation on Amount of Deduction. </FONT></I><FONT face=sans-serif size=2>We generally will be entitled to a tax deduction for awards under the
2000 Stock Option Plan only to the extent that the participants recognize
ordinary income from the award. Section 162(m) of the Code contains special
rules regarding the federal income tax deductibility of compensation paid to our
principal executive officer and each of our other three most highly compensated
executive officers (other than our principal executive officer or our principal
financial officer). The general rule is that annual compensation paid to any of
these specified executives will be deductible only to the extent that it does
not exceed $1,000,000 or it qualifies as "performance-based compensation" under
Section 162(m). The 2000 Stock Option Plan has been designed to permit the
Committee to grant awards, which qualify for deductibility under Section 162(m).
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=sans-serif size=2>Taxation of Ordinary Income and Capital Gains</FONT></I><FONT face=sans-serif size=2>. Subject to certain exceptions, the maximum federal rate
of tax on "net capital gains" from the sale or exchange of capital assets is
15%. "Net capital gain" is the excess of net long-term capital gain over net
short-term capital loss. Short-term capital gains are taxed at the same rates
applicable to ordinary income. Gains or losses from the sale or exchange of
capital assets will be "long-term" if the capital asset was held for more than
one year and "short-term" if the capital asset was held for one year or less.
For taxpayers with certain income levels, the marginal tax rate applicable to
ordinary income can range up to 35%. The classification of income as ordinary
compensation income or capital gain is also relevant for income tax purposes for
taxpayers who have capital losses and investment interest. </FONT></P>
<P align=center><FONT face=sans-serif size=2>-31-</FONT></P>
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<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2><I><FONT face=sans-serif size=2>Nonqualified Stock Options.
</FONT></I><FONT face=sans-serif size=2>An employee who is granted a
nonqualified option does not recognize taxable income upon the grant of the
option, and we are not entitled to a tax deduction. The employee will recognize
ordinary income upon the exercise of the option in an amount equal to the excess
of the fair market value of the </FONT>option shares on the exercise date over
the option price. Such income will be treated as compensation to the employee
subject to applicable reporting and withholding requirements. We are generally
entitled to a tax deduction in an amount equal to the amount taxable to the
employee as compensation in the year the income is taxable to the employee. Any
appreciation in value after the time of exercise will be taxable to the employee
as capital gain and we will not be entitled to a deduction. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
employee will also be required to recognize gain or loss upon the sale of the
option shares. If the selling price of the option shares exceeds the employee's
basis in the shares, the employee will recognize long-term capital gain if the
option shares were held for more than one year, and short-term capital gain if
the shares were held for one year or less. If the selling price of the option
shares is less than the employee's basis in the shares, the employee will
recognize long-term or short-term capital loss depending on how long the shares
were held. The employee's basis in the option shares will equal the amount of
ordinary income recognized by the employee upon exercise of the option, plus any
cash paid to exercise the option. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=sans-serif size=2>Incentive Stock Options. </FONT></I><FONT face=sans-serif size=2>An
employee who receives an incentive stock option does not recognize taxable
income upon the grant or exercise of the option, and we are not entitled to a
tax deduction. The difference between the option price and the fair market value
of the option shares on the date of exercise, however, will be treated as a tax
preference item for purposes of determining the alternative minimum tax
liability, if any, of the employee in the year of exercise. We will not be
entitled to a deduction with respect to any item of tax preference. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>An
employee will recognize gain or loss upon the disposition of shares acquired
from the exercise of incentive stock options. The nature of the gain or loss
depends on how long the option shares were held. If the option shares are not
disposed of pursuant to a "disqualifying disposition", a disposition that occurs
within two years from the date the option was granted or within one year from
the date of exercise, the employee will recognize long-term capital gain or
capital loss depending on the selling price of the shares. If option shares are
sold or disposed of as part of a disqualifying disposition, the employee
must</FONT><FONT face=sans-serif size=2> </FONT><FONT face=sans-serif size=2>recognize ordinary income in an amount equal to the lesser of the amount
of gain recognized on the sale, or the difference between the fair market value
of the option shares on the date of exercise and the option price. Any
additional gain will be taxable to the employee as a long-term or short-term
capital gain, depending on how long the option shares were held. We are
generally entitled to a deduction in computing our federal income taxes for the
year of disposition in an amount equal to any amount taxable to the employee as
ordinary income. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=sans-serif size=2>Restricted Stock. </FONT></I><FONT face=sans-serif size=2>An employee who
receives an award of restricted stock generally will not recognize taxable
income at the time of the award, nor will we be entitled to a tax deduction at
that time, unless the employee makes an election under Section 83(b) of the Code
to recognize the income upon the receipt of the restricted stock. If the
election is not made, the employee will recognize ordinary income when the
restricted stock becomes vested (</FONT><I><FONT face=sans-serif size=2>i.e.</FONT></I><FONT face=sans-serif size=2>, when the restrictions lapse
through attainment of specified performance goals or otherwise) in an amount
equal to the fair market value of the shares at that time less any amount paid
by the employee. We may claim a deduction when the employee recognizes income,
in an amount equal to the income recognized by the employee. Dividends paid to
the employee with respect to restricted stock prior to vesting constitute
compensation taxable to the employee and a tax deduction to us. Upon disposition
of the shares, any amount received in excess of the fair market value of the
shares on the date such restrictions lapsed would be treated as long-term or
short-term capital gain, depending upon the employee's holding period following
such lapse. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Pursuant to the provisions of Section 83(b) of the Code, an employee who
receives restricted stock may elect to be taxed at the time of the award. If the
employee so elects, the full value of the shares (without regard to
restrictions) at the time of the grant, less any amount paid by the employee,
will be taxed to the employee as taxable compensation and will be deductible by
us. Dividends paid with respect to the shares during the period of restriction
will be taxable as dividends to the employee and not deductible by us. If, after
making an election pursuant to Section 83(b), any shares are subsequently
forfeited, the employee will be entitled to an ordinary deduction equal to the
amount, if any, that was paid for the restricted stock, less the amount, if any,
that the employee receives as a result of the forfeiture. The amount of the
income recognized by the employee as a result of the Section 83(b) election will
not be deductible if the restricted stock is forfeited. We may be required to
recognize income up to the amount of the deduction
we received as a result of the employee's Section 83(b) election, less the
amount, if any, that the employee receives as a result of the forfeiture.
</FONT></P>
<P align=center><FONT face=sans-serif size=2><B>The Board of Directors
recommends a vote FOR adoption of the proposed amendment to the 2000<BR>Stock
Option Plan.</B></FONT></P>
<P align=center><FONT face=sans-serif size=2>-32-</FONT></P>
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<PAGE>
<P align=center><B><FONT face=sans-serif>PRINCIPAL SHAREHOLDERS</FONT></B><FONT face=sans-serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
following table sets forth, as of March 18, 2008, certain information with
respect to beneficial ownership of our common stock by each person (or group of
affiliated persons) who is known by management to own beneficially more than 5%
of our common stock, by each Executive who is not a director, and by all
directors and current Executives as a group. For information with respect to
beneficial ownership of our common stock by our directors and our Chief
Executive Officer, see "Proposal No. 1 Election of Directors - Nominees and
Director Information". Except as otherwise noted, the persons named in the table
have sole voting and investment power with respect to all shares of common stock
shown as beneficially owned by them. </FONT></P>
<TABLE style="FONT-SIZE: 12pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=left width="87%"></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=sans-serif size=2>Number of Shares</FONT></B></TD>
    <TD noWrap align=center width="1%" ></TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=sans-serif size=2>Percent of</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="87%"><B><FONT face=sans-serif size=2>Name</FONT></B></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=sans-serif size=2>Beneficially Owned (1)</FONT></B></TD>
    <TD noWrap align=center width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=center width="5%" colSpan=2><B><FONT face=sans-serif size=2>Class</FONT></B></TD></TR>
  <TR style="LINE-HEIGHT: 3pt">
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="99%"  colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>J. Wayne Weaver and Delores B. Weaver(2)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>3,333,230</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>&nbsp;(3)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0>&nbsp;</TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>26.4</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>%</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Mark L. Lemond (4)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>675,767</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>&nbsp;(5)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>5.2</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>%</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Timothy T. Baker</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>102,418</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>&nbsp;(6)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>*</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>W. Kerry Jackson</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>86,789</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>&nbsp;(7)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>*</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Clifton E. Sifford</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>85,042</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>&nbsp;(8)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>*</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>All current executive officers and directors as a group (8
      persons)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>4,304,246</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>&nbsp;(9)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>33.0</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%"><FONT face=sans-serif size=2>&nbsp;</FONT></TD>
    <TD align=left width="1%" ></TD>
    <TD align=right width="3%"></TD>
    <TD align=left width="2%"></TD>
    <TD align=left width="1%" ></TD>
    <TD align=left width="3%"></TD>
    <TD align=left width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>FMR, LLC</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>82 Devonshire Street</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Boston, MA 02109**</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>1,900,244</FONT></TD>
    <TD align=left width="2%"  bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;(10)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>15.0</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>%</FONT></TD></TR>
  <TR>
    <TD align=left width="87%" >&nbsp;</TD>
    <TD align=right width="1%" ></TD>
    <TD align=right width="3%" ></TD>
    <TD align=left width="2%" ></TD>
    <TD align=right width="1%" ></TD>
    <TD align=right width="3%" ></TD>
    <TD align=left width="2%" ></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>AXA Financial, Inc.</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>1290 Avenue of the Americas</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>New York, NY 10104**</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>1,019,115</FONT></TD>
    <TD align=left width="2%"  bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;(11)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>8.0</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>%</FONT></TD></TR>
  <TR>
    <TD align=left width="87%" >&nbsp;</TD>
    <TD align=right width="1%" ></TD>
    <TD align=right width="3%" ></TD>
    <TD align=left width="2%" ></TD>
    <TD align=right width="1%" ></TD>
    <TD align=right width="3%" ></TD>
    <TD align=left width="2%" ></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Entrust Capital Inc.</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>717 Fifth Avenue</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>New York, NY 10022**</FONT></TD>
    <TD align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>739,419</FONT></TD>
    <TD align=left width="2%"  bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;(12)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>5.8</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>%</FONT></TD></TR>
  <TR>
    <TD align=left width="87%" >&nbsp; </TD>
    <TD align=center width="1%" ></TD>
    <TD align=right width="3%" ></TD>
    <TD align=left width="2%" ></TD>
    <TD align=right width="1%" ></TD>
    <TD align=right width="3%" ></TD>
    <TD align=left width="2%" ></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Barclays Global Investors, NA</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>Barclays Global Fund Advisors</FONT></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD>
    <TD align=left width="1%"  bgColor=#c0c0c0></TD>
    <TD align=left width="3%" bgColor=#c0c0c0></TD>
    <TD align=left width="2%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD align=left width="87%"  bgColor=#c0c0c0><FONT face=Arial size=2>45 Fremont Street</FONT></TD>
    <TD align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%"  bgColor=#c0c0c0></TD>
    <TD align=left width="2%"  bgColor=#c0c0c0></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%"  bgColor=#c0c0c0></TD>
    <TD align=left width="2%"  bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="87%" bgColor=#c0c0c0><FONT face=sans-serif size=2>San Francisco, CA 94105**</FONT></TD>
    <TD align=center width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>667,180</FONT></TD>
    <TD align=left width="2%"  bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;(13)</FONT></TD>
    <TD align=right width="1%"  bgColor=#c0c0c0></TD>
    <TD align=right width="3%" bgColor=#c0c0c0><FONT face=sans-serif size=2>5.3</FONT></TD>
    <TD align=left width="2%" bgColor=#c0c0c0><FONT face=sans-serif size=2>%</FONT></TD></TR>
  <TR style="LINE-HEIGHT: 5pt" vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="99%" bgColor=#c0c0c0 colSpan=7><FONT face=sans-serif size=2>&nbsp;</FONT></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top align=left width="1%"><FONT face=sans-serif size=2>*</FONT></TD>
    <TD vAlign=top align=left width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top align=left width="97%"><FONT face=sans-serif size=2>Less than 1%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="1%"><FONT face=sans-serif size=2>**</FONT></TD>
    <TD vAlign=top align=left width="1%" ></TD>
    <TD vAlign=top align=left width="97%"><FONT face=sans-serif size=2>Information is based solely on reports filed by such
      shareholder under Section 13(d) or Section 13(g) of the Exchange
      Act.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="1%"><FONT face=sans-serif size=2>(1)</FONT></TD>
    <TD vAlign=top align=left width="1%" ></TD>
    <TD vAlign=top align=left width="97%"><FONT face=sans-serif size=2>Includes shares subject to options that are presently
      exercisable (i.e., within 60 days after March 18, 2008).</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="1%"><FONT face=sans-serif size=2>(2)</FONT></TD>
    <TD vAlign=top align=left width="1%" ></TD>
    <TD vAlign=top align=left width="97%"><FONT face=sans-serif size=2>J. Wayne and Delores B. Weaver are husband and wife. Their
      address is 7500 East Columbia Street, Evansville, Indiana
  47715.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="1%"><FONT face=sans-serif size=2>(3)</FONT></TD>
    <TD vAlign=top align=left width="1%" ></TD>
    <TD vAlign=top align=left width="97%"><FONT face=sans-serif size=2>Mr. and Mrs. Weaver each individually own 1,666,615
      shares.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="1%"><FONT face=sans-serif size=2>(4)</FONT></TD>
    <TD vAlign=top align=left width="1%" ></TD>
    <TD vAlign=top align=left width="97%"><FONT face=sans-serif size=2>Mr. Lemond's address is 7500 East Columbia Street,
      Evansville, Indiana 47715.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="1%"><FONT face=sans-serif size=2>(5)</FONT></TD>
    <TD vAlign=top align=left width="1%" ></TD>
    <TD vAlign=top align=left width="97%"><FONT face=sans-serif size=2>Includes 275,000 shares issuable upon the exercise of
      presently exercisable options, 41,000 shares of restricted stock as to
      which Mr. Lemond has voting but not dispositive power and 11,500 shares
      directly owned by Mr. Lemond's spouse.</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="1%"><FONT face=sans-serif size=2>(6)</FONT></TD>
    <TD vAlign=top align=left width="1%" ></TD>
    <TD vAlign=top align=left width="97%"><FONT face=sans-serif size=2>Includes 66,712 shares issuable upon the exercise of
      presently exercisable options and 22,667 shares of restricted stock as to
      which Mr. Baker has voting but not dispositive power.</FONT></TD></TR></table>
<P align=center><FONT face=sans-serif size=2>-33-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top noWrap width="1%"><FONT face=sans-serif size=2>(7)</FONT></TD>
    <TD noWrap width="1%" >&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="97%"><FONT face=sans-serif size=2>Includes 40,000 shares
      issuable upon the exercise of presently exercisable options and 26,667
      shares of restricted stock as to which Mr. Jackson has voting but not
      dispositive power.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%"><FONT face=sans-serif size=2>(8)</FONT></TD>
    <TD noWrap width="1%" ></TD>
    <TD width="97%"><FONT face=sans-serif size=2>Includes 50,000 shares
      issuable upon the exercise of presently exercisable options and 26,667
      shares of restricted stock as to which Mr. Sifford has voting but not
      dispositive power.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%"><FONT face=sans-serif size=2>(9)</FONT></TD>
    <TD noWrap width="1%" ></TD>
    <TD width="97%"><FONT face=sans-serif size=2>Includes 444,712 shares
      issuable upon the exercise of presently exercisable options and 117,001
      shares of restricted stock as to which the individuals have voting but not
      dispositive power.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%"><FONT face=sans-serif size=2>(10)</FONT></TD>
    <TD noWrap width="1%" ></TD>
    <TD width="97%"><FONT face=sans-serif size=2>The shareholder is a parent
      holding company and shares voting and/or dispositive power in varying
      amounts over the shares reported as beneficially owned with the following
      subsidiaries, individuals and other entities: Fidelity Management &amp;
      Research Company (investment advisor), Edward C. Johnson III (Chairman of
      the Board and significant shareholder of FMR Corp.), Fidelity Small Cap
      Stock Fund (investment company), Pyramis Global Advisors Trust Company
      (bank) and Fidelity International Limited (provider of investment advisory
      and management services).</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%"><FONT face=sans-serif size=2>(11)</FONT></TD>
    <TD noWrap width="1%" ></TD>
    <TD width="97%"><FONT face=sans-serif size=2>The shareholder is a parent
      holding company and shares voting and/or dispositive power in varying
      amounts over the shares reported as beneficially owned with the following
      affiliates: AXA Assurances I.A.R.D. Mutuelle, AXA Assurances Vie Mutuelle,
      AXA Courtage Assurance Mutuelle, AXA, AXA Rosenberg Investment Management
      LLC and AllianceBernstein L.P. AXA Financial, Inc. has sole voting power
      with respect to 971,990 shares, shared voting power with respect to 14,175
      shares and sole dispositive power with respect to 1,018,715
    shares</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%"><FONT face=sans-serif size=2>(12)</FONT></TD>
    <TD noWrap width="1%" ></TD>
    <TD width="97%"><FONT face=sans-serif size=2>EnTrust Capital Inc., EnTrust
      Partners LLC and EnTrust Partners Offshore LLC, each registered investment
      advisers, and Gregg Hymowitz, Mark Fife and Michael Horowitz, each control
      persons of the investment advisers, are the beneficial owners and share
      jointly the power to vote and dispose or direct the disposition of 739,419
      shares of our common stock.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%"><FONT face=sans-serif size=2>(13)</FONT></TD>
    <TD noWrap width="1%" ></TD>
    <TD width="97%"><FONT face=sans-serif size=2>Each of Barclays Global
      Investors, NA and Barclays Global Fund Advisors are investment advisors
      that manage various accounts which have the right to receive or the power
      to direct the receipt of dividends from and the proceeds from the sale of
      the shares of our common stock. The Barclays entities collectively have
      the sole power to vote 638,752 shares of our common stock and sole power
      to dispose or direct the disposition of 667,180 shares of our common
      stock.</FONT></TD></TR></TABLE>
<P align=center><B><FONT face=sans-serif>SHAREHOLDER PROPOSALS FOR 2009 ANNUAL
MEETING </FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
date by which shareholder proposals must be received by us for inclusion in
proxy materials relating to the 2009 annual meeting of common shareholders is
January 5, 2009. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>In
order to be considered at the 2009 annual meeting, shareholder proposals must
comply with the advance notice and eligibility requirements contained in our
by-laws. Our by-laws provide that shareholders are required to give advance
notice to us of any nomination by a shareholder of candidates for election as
directors and of any business to be brought by a shareholder before an annual
shareholders' meeting. Specifically, the by-laws provide that for a shareholder
to nominate a person for election to our Board of Directors, the shareholder
must be entitled to vote for the election of directors at the meeting and must
give timely written notice of the nomination to our Secretary. The by-laws also
provide that for business to be properly brought before an annual meeting by a
shareholder, the shareholder must have the legal right and authority to make the
proposal for consideration at the meeting and the shareholder must give timely
written notice thereof to our Secretary. In order to be timely, a shareholder's
notice must be delivered to or mailed and received at our principal executive
offices not less than 30 days nor more than 60 days prior to the meeting. In the
event that less than 40 days' notice or prior public disclosure of the date of
the meeting is given or made to shareholders, notice by the shareholder must be
received not later than the close of business on the tenth day following the day
on which notice of the date of the meeting was mailed or public disclosure was
made. The notice must contain specified information about each nominee or the
proposed business and the shareholder making the nomination or proposal.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>The
specific requirements of these advance notice and eligibility provisions are set
forth in Article II and Article III of our by-laws, a copy of which is available
upon request. Such request and any shareholder proposals should be sent to our
Secretary at our principal executive offices. </FONT></P>
<P align=center><B><FONT face=sans-serif>SHAREHOLDER COMMUNICATIONS
</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Our
Board of Directors has implemented a process whereby shareholders may send
communications to the Board's attention. Any shareholder desiring to communicate
with the Board, or one or more specific members thereof, should communicate in a
writing addressed to Shoe Carnival, Inc., Board of Directors, c/o Lead Director,
7500 East Columbia Street, Evansville, Indiana 47715. </FONT></P>
<P align=center><FONT face=sans-serif size=2>-34-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=sans-serif>INCORPORATION BY
REFERENCE</FONT></B><FONT face=sans-serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Notwithstanding anything to the contrary set forth in any of our previous
filings under the Securities Act of 1933, as amended, or the Exchange Act that
may incorporate future filings (including this proxy statement, in whole or in
part), the Compensation Committee Report and the Report of the Audit Committee
shall not be incorporated by reference in any such filings. </FONT></P>
<P align=center><B><FONT face=sans-serif>ANNUAL REPORTS</FONT></B><FONT face=sans-serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Our
Annual Report to Shareholders for fiscal 2007 accompanies this proxy statement.
The Annual Report is not used as part of this solicitation material and no
action will be taken with respect to it at the annual meeting. </FONT><B><FONT face=sans-serif size=2>Additional copies of our Annual Report on Form 10-K for
fiscal 2007 as filed with the Securities and Exchange Commission, including
financial statements but excluding exhibits, may be obtained without charge upon
written request to David A. Kapp, Secretary, Shoe Carnival, Inc., 7500 East
Columbia Street, Evansville, Indiana 47715.</FONT></B><FONT face=sans-serif size=2> </FONT></P>
<P align=center><FONT face=sans-serif size=2>-35-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=sans-serif size=2>APPENDIX A</FONT></B></P>
<P align=center><B><FONT face=sans-serif size=2>SHOE CARNIVAL,
INC.<BR></FONT></B><B><FONT face=sans-serif size=2>2000 STOCK OPTION AND
INCENTIVE PLAN<BR>(AS PROPOSED TO BE AMENDED)</FONT></B></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><STRONG>1.</STRONG></FONT><FONT face=sans-serif size=2> </FONT><B><U><FONT face=sans-serif size=2>Plan
Purpose</FONT></U></B><FONT face=sans-serif size=2>. The purpose of the Plan is
to promote the long-term interests of the </FONT><FONT face=sans-serif size=2>Company and its shareholders by providing a means for attracting and
retaining Directors and officers and key employees of the Company and its
Affiliates. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><STRONG>2.</STRONG></FONT><FONT face=sans-serif size=2> </FONT><B><U><FONT face=sans-serif size=2>Definitions</FONT></U></B><FONT face=sans-serif size=2>. The following
definitions are applicable to the Plan: </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Affiliate" -- means any "parent corporation" or "subsidiary corporation"
of the Company as such terms are defined in Section 424(e) and (f),
respectively, of the Code. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Annual
Return To Shareholders" -- means the Company's return to shareholders as
represented by share price appreciation plus dividends paid on one share of
stock during any Year during a Restricted Period. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Award"
- -- means the grant by the Committee of an Incentive Stock Option, a
Non-Qualified Stock Option, or Restricted Stock, or any combination thereof, as
provided in the Plan. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>"Board" -- means the Board of Directors
of the Company. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Business Criteria" -- means any one or any combination of Annual Return
to Shareholders, Total Net Sales, Net Earnings, Net Earnings before Nonrecurring
Items, Return on Equity, Return on Assets, EPS, EBITDA or EBITDA before
Nonrecurring Items, in each case during any Year during a Restricted Period.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Change
in Control" -- means each of the events specified in the following clauses (i)
through (iii): (i) any third person, including a "group" as defined in Section
13(d)(3) of the Exchange Act shall, after the date of the adoption of the Plan
by the Board, first become the beneficial owner of shares of the Company with
respect to which 25% or more of the total number of votes for the election of
the Board of Directors of the Company may be cast, (ii) as a result of, or in
connection with, any cash tender offer, exchange offer, merger or other business
combination, sale of assets or contested election, or combination of the
foregoing, the persons who were directors of the Company shall cease to
constitute a majority of the Board of Directors of the Company or (iii) the
stockholders of the Company shall approve an agreement providing either for a
transaction in which the Company will cease to be an independent publicly owned
entity or for a sale or other disposition of all or substantially all the assets
of the Company; provided, however, that the occurrence of any of such events
shall not be deemed a Change in Control if, prior to such occurrence, a
resolution specifically providing that such occurrence shall not constitute a
Change in Control under the Plan shall have been adopted by at least a majority
of the Board of Directors of the Company. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>"Code" -- means the Internal Revenue Code
of 1986, as amended.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>"Committee" -- means the Committee
referred to in Section 3 hereof.</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>"Company" -- means Shoe Carnival, Inc.,
an Indiana corporation. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Continuous Service" -- means the absence of any interruption or
termination of service as a Director or an employee of the Company or an
Affiliate. Service shall not be considered interrupted in the case of sick
leave, military leave or any other leave of absence approved by the Company or
in the case of any transfer between the Company and an Affiliate or any
successor to the Company. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>"Director" -- means any person who serves
as a member of the Board. </FONT></P>
<P align=center><FONT face=sans-serif size=2>A-1</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"EBITDA" for any Year means -- the consolidated earnings before interest,
taxes, depreciation and amortization of the Company as reflected in the
Company's audited consolidated financial statements for the Year. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"EBITDA
before Nonrecurring Items" means -- for any Year EBITDA of the Company before
any extraordinary or unusual one-time nonrecurring expenses or other charges as
reflected in the Company's audited consolidated financial statements for the
Year. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Employee" -- means any person, including an officer or Director, who is
employed by the Company or any Affiliate. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"EPS"
for any Year means -- diluted earnings per share of the Company, as reported in
the Company's audited consolidated financial statements for the Year.
</FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>"Exchange Act" -- means the Securities
Exchange Act of 1934, as amended. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Exercise Price" -- means the price per Share at which the Shares subject
to an Option may be purchased upon exercise of such Option. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Incentive Stock Option" -- means an option to purchase Shares granted by
the Committee pursuant to the terms of the Plan which is intended to qualify
under Section 422 of the Code. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Market
Value" -- means the last reported sale price on the date in question (or, if
there is no reported sale on such date, on the last preceding date on which any
reported sale occurred) of one Share on the principal exchange on which the
Shares are listed for trading, or if the Shares are not listed for trading on
any exchange, on the NASDAQ National Market System or any similar system then in
use, or, if the Shares are not listed on the NASDAQ National Market System, the
mean between the closing high bid and low asked quotations of one Share on the
date in question as reported by NASDAQ or any similar system then in use, or, if
no such quotations are available, the fair market value on such date of one
Share as the Committee shall determine. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Net
Earnings" for any Year means -- the consolidated net earnings of the Company, as
reported in the Company's audited consolidated financial statements for the
Year. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Net
Earnings before Nonrecurring Items" means -- for any Year the Net Earnings of
the Company before any extraordinary or unusual one-time nonrecurring expenses
or other charges as reflected in the Company's audited consolidated financial
statements for the Year. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Non-Qualified Stock Option" -- means an option to purchase Shares
granted by the Committee pursuant to the terms of the Plan, which option is not
intended to qualify under Section 422 of the Code. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>"Option" -- means an Incentive Stock
Option or a Non-Qualified Stock Option. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Participant" -- means any Director or any officer or key employee of the
Company or any Affiliate who is selected by the Committee to receive an Award.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Performance Target(s)" -- means the specific objective goal or goals
(which may be cumulative and/or alternative) that are timely set forth in
writing by the Committee for each Employee for the Restricted Period in respect
of any one or more of the Business Criteria. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>"Plan" -- means this 2000 Stock Option
and Incentive Plan of the Company. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Reorganization" -- means the liquidation or dissolution of the Company
or any merger, consolidation or combination of the Company (other than a merger,
consolidation or combination in which the Company is the continuing entity and
which does not result in the outstanding Shares being converted into or
exchanged for different securities, cash or other property or any combination
thereof). </FONT></P>
<P align=center><FONT face=sans-serif size=2>A-2</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Restricted Period" -- means the period of time selected by the Committee
for the purpose of determining when restrictions are in effect under Section 9
hereof with respect to Restricted Stock awarded under the Plan. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Restricted Stock" -- means Shares which have been contingently awarded
to a Participant by the Committee subject to the restrictions referred to in
Section 9 hereof, so long as such restrictions are in effect. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Return
on Assets" for any Year means -- Net Earnings (as reported in the Company's
audited consolidated financial statements for the Year) divided by the average
of the total assets of the Company at the end of the fiscal quarters of the
Year. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Return
on Equity" for any Year means -- the Net Earnings (as reported in the Company's
audited consolidated financial statements for the Year) divided by the
shareholders equity of the Company at the beginning of each Year. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>"Securities Act" -- means the Securities
Act of 1933, as amended. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>"Shares" -- means the Common Stock, $.01
par value, of the Company. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Total
Net Sales" for any Year -- means the Company's total net sales as reported in
the Company's consolidated audited financial statements for the Year.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>"Year"
- -- means any one or more fiscal years of the Company commencing on or after
January 30, 2000 that represent(s) the applicable Restricted Period. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>3.
</FONT></B><B><U><FONT face=sans-serif size=2>Administration</FONT></U></B><B><FONT face=sans-serif size=2>.
</FONT></B><FONT face=sans-serif size=2>The Plan shall be administered by the
Committee, which shall consist of two or more members of the Board, each of whom
shall be a "non-employee director" as provided under Rule 16b-3 of the Exchange
Act, and an "outside director" as provided under Code Section 162(m). The
members of the Committee shall be appointed by the Board. Except as limited by
the express provisions of the Plan, the Committee shall have sole and complete
authority and discretion to (a) select Participants and grant Awards; (b)
determine the number of Shares to be subject to types of Awards generally, as
well as to individual Awards granted under the Plan; (c) determine the terms and
conditions upon which Awards shall be granted under the Plan; (d) prescribe the
form and terms of instruments evidencing such grants; (e) establish procedures
and regulations for the administration of the Plan; (f) interpret the Plan; and
(g) make all determinations deemed necessary or advisable for the administration
of the Plan. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>A
majority of the Committee shall constitute a quorum, and the acts of a majority
of the members present at any meeting at which a quorum is present, or acts
approved in writing by all members of the Committee without a meeting, shall be
acts of the Committee. All determinations and decisions made by the Committee
pursuant to the provisions of the Plan shall be final, conclusive and binding on
all persons, and shall be given the maximum deference permitted by law.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>4.</FONT></B><FONT face=sans-serif size=2> </FONT><B><U><FONT face=sans-serif size=2>Participants</FONT></U></B><FONT face=sans-serif size=2>.
The Committee may select from time to time Participants in the Plan from those
Directors and officers and key employees of the Company or its Affiliates who,
in the opinion of the Committee, have the capacity for contributing in a
substantial measure to the successful performance of the Company or its
Affiliates. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>5.</FONT></B><FONT face=sans-serif size=2> </FONT><B><U><FONT face=sans-serif size=2>Shares Subject to Plan</FONT></U></B><FONT face=sans-serif size=2>. Subject to adjustment by the operation of Section 10
hereof, the maximum number of Shares with respect to which Awards may be made
under the Plan is 2,000,000 Shares. The number of Shares which may be granted
under the Plan to any Participant during any calendar year of the Plan under all
forms of Awards shall not exceed 300,000 Shares. The Shares with respect to
which Awards may be made under the Plan may either be authorized and unissued
shares or issued shares heretofore or hereafter reacquired and held as treasury
shares. With respect to any Option which terminates or is surrendered for
cancellation or with respect to Restricted Stock which is forfeited, new Awards
may be granted under the Plan with respect to the number of Shares as to which
such termination or forfeiture has occurred. </FONT></P>
<P align=center><FONT face=sans-serif size=2>A-3</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>6.</FONT></B><FONT face=sans-serif size=2> </FONT><B><U><FONT face=sans-serif size=2>General Terms and Conditions of
Options</FONT></U></B><B><FONT face=sans-serif size=2>. </FONT></B><FONT face=sans-serif size=2>The Committee shall have full and complete authority and
discretion, except as expressly limited by the Plan, to grant Options and to
provide the terms and conditions (which need not be identical among
Participants) thereof. In particular, the </FONT><FONT face=sans-serif size=2>Committee shall prescribe the following terms and conditions: (i) the
Exercise Price (which shall not be less than the Market Value per Share on the
date the Option is granted), (ii) the number of Shares subject to, and the
expiration date of, any Option, (iii) the manner, time and rate (cumulative or
otherwise) of exercise of such Option, and (iv) the restrictions, if any, to be
placed upon such Option or upon Shares which may be issued upon exercise of such
Option. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>7.</STRONG></FONT><FONT face=sans-serif size=2> </FONT><B><U><FONT face=sans-serif size=2>Exercise of
Options</FONT></U></B><FONT face=sans-serif size=2>. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(a) Except
as provided in Section 13, an Option granted under the Plan shall be exercisable
during the lifetime of the Participant to whom such Option was granted only by
such Participant, and except as provided in paragraphs (c), (d) and (e) of this
Section 7, no such Option may be exercised unless at the time such Participant
exercises such Option, such Participant has maintained Continuous Service since
the date of the grant of such Option.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(b) To
exercise an Option under the Plan, the Participant must give written notice to
the Company specifying the number of Shares with respect to which such
Participant elects to exercise such Option together with full payment of the
Exercise Price. The date of exercise shall be the date on which such notice is
received by the Company. Payment may be made either (i) in cash (including
check, bank draft or money order), (ii) by tendering Shares already owned by the
Participant and having a Market Value on the date of exercise equal to the
Exercise Price, or (iii) by any other means determined by the Committee in its
sole discretion, including permitting a Participant to elect to pay the Exercise
Price upon the exercise of an Option by authorizing a third party to sell the
Shares (or a sufficient portion of the Shares) acquired upon exercise of the
Option and remit to the Company a sufficient portion of the sale proceeds to pay
the Exercise Price and any tax withholding resulting from such
exercise.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(c) If the
Continuous Service of a Participant is terminated for cause, or voluntarily by
the Participant for any reason other than death, disability or retirement, all
rights under any Options granted to such Participant shall terminate immediately
upon such Participant's cessation of Continuous Service, and the Participant
shall (unless the Committee in its sole discretion waives this requirement)
repay to the Company within 10 days the amount of any gain realized by the
Participant upon any exercise within the 90-day period prior to the cessation of
Continuous Service of any Options granted to such Participant under the Plan. If
the Continuous Service of a Participant is terminated by reason of death,
disability or retirement, such Participant may exercise such Option, but only to
the extent such Participant was entitled to exercise such Option at the date of
such cessation, at any time during the remaining term of such Option, or, in the
case of Incentive Stock Options, during such shorter period as the Committee may
determine and so provide in the applicable instrument or instruments evidencing
the grant of such Option. If a Participant shall cease to maintain Continuous
Service for any reason other than those set forth above in this paragraph (c) of
this Section 7, such Participant may exercise such Option to the extent that
such Participant was entitled to exercise such Option at the date of such
cessation but only within 90 days immediately succeeding such cessation of
Continuous Service, and in no event after the expiration date of the subject
Option; provided, however, that such right of exercise after cessation of
Continuous Service shall not be available to a Participant if the Company
otherwise determines and so provides in the applicable instrument or instruments
evidencing the grant of such Option.</FONT></P>
<P align=center><FONT face=sans-serif size=2>A-4</FONT></P>
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<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(d) In the
event of the death of a Participant while in the Continuous Service of the
Company or an Affiliate, the person to whom any Option held by the Participant
at the time of his death is transferred by will or by the laws of descent and
distribution may exercise such Option on the same terms and conditions that such
Participant was entitled to exercise such Option. At the time of the
death of the Participant, all Options theretofore granted to the Participant and
not fully exercisable shall terminate. Following the death of any Participant to
whom an Option was granted under the Plan, the Committee, as an alternative
means of settlement of such Option, may elect to pay to the person to whom such
Option is transferred the amount by which the Market Value per Share on the date
of exercise of such Option shall exceed the Exercise Price of such Option,
multiplied by the number of Shares with respect to which such Option is properly
exercised. Any such settlement of an Option shall be considered an exercise of
such Option for all purposes of the Plan.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(e)
Notwithstanding the provisions of the foregoing paragraphs of this Section 7,
the Committee may, in its sole discretion, establish different terms and
conditions pertaining to the effect of the cessation of Continuous Service, to
the extent permitted by applicable federal and state law. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2><B>8. <U>Incentive Stock Options</U>. </B>Incentive Stock
Options may be granted only to Participants who are Employees. Any provisions of
the Plan to the contrary notwithstanding, (i) no Incentive Stock Option shall be
exercisable more than ten years from the date such Incentive Stock Option is
granted, (ii) the Exercise Price of any Incentive Stock Option shall not be less
than the Market Value per Share on the date such Incentive Stock Option is
granted, (iii) any Incentive Stock Option shall not be transferable by the
Participant to whom such Incentive Stock Option is granted other than by will or
the laws of descent and distribution and shall be exercisable during such
Participant's lifetime only by such Participant, and (iv) no Incentive Stock
Option shall be granted which would permit a Participant to acquire, through the
exercise of Incentive Stock Options in any calendar year, Shares or shares of
any capital stock of the Company or any Affiliate thereof having an aggregate
Market Value (determined as of the time any Incentive Stock Option is granted)
in excess of $100,000. The foregoing limitation shall be determined by assuming
that the Participant will exercise each Incentive Stock Option on the date that
such Option first becomes exercisable. Notwithstanding the foregoing, in the
case of any Participant who, at the date of grant, owns stock possessing more
than 10% of the total combined voting power of all classes of capital stock of
the Company or any Affiliate, the Exercise Price of any Incentive Stock Option
shall not be less than 110% of the Market Value per Share on the date such
Incentive Stock Option is granted and such Incentive Stock Option shall not be
exercisable more than five years from the date such Incentive Stock Option is
granted. Notwithstanding any other provisions of this Plan, if for any reason
any Option granted under this Plan that is intended to be an Incentive Stock
Option shall fail to qualify as an Incentive Stock Option, such Option shall be
deemed to be a Non-Qualified Stock Option, and such Option shall be deemed to be
fully authorized and validly issued under this Plan. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>9.</FONT></B><FONT face=sans-serif size=2> </FONT><B><U><FONT face=sans-serif size=2>Terms and Conditions of Restricted
Stock</FONT></U></B><B><FONT face=sans-serif size=2>. </FONT></B><FONT face=sans-serif size=2>The Committee shall have full and complete authority,
subject to the limitations of the Plan, to grant awards of Restricted Stock and,
in addition to the terms and conditions contained in paragraphs (a) through (g)
of this Section 9, to provide such other terms and conditions (which need not be
identical among Participants) in respect of such Awards, and the vesting
thereof, as the Committee shall determine and provide in the agreement referred
to in paragraph (d) of this Section 9. Notwithstanding any other provisions of
this Plan, the Committee shall have full and complete discretion, at the time of
the grant of an award of Restricted Stock, to determine whether or not the grant
of Restricted Stock is intended to qualify as "performance-based compensation"
under Section 162(m) of the Code. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(a) At the time of an award of
Restricted Stock, the Committee shall establish for each Participant a
Restricted Period during which or at the expiration of which, the Shares of
Restricted Stock shall vest. The Committee may also restrict or prohibit the
sale, assignment, transfer, pledge or other encumbrance of the Shares of
Restricted Stock by the Participant during the Restricted Period. Except for
such restrictions, and subject to paragraphs (c), (d) and (e) of this Section 9
and Section 10 hereof, the Participant as owner of such Shares shall have all
the rights of a stockholder, including but not limited to, the right to receive
all dividends paid on such Shares and the right to vote such Shares. Except in
the case of grants of Restricted Stock which are intended to qualify as
"performance-based compensation" under Section 162(m) of the Code, the Committee
shall have the authority, in its discretion, to accelerate the time at which any
or all of the restrictions shall lapse with respect to any Shares of Restricted
Stock prior to the expiration of the Restricted
Period with respect thereto, or to remove any or all of such restrictions,
whenever it may determine that such action is appropriate by reason of changes
in applicable tax or other laws or other changes in circumstances occurring
after the commencement of such Restricted Period. </FONT></P>
<P align=center><FONT face=sans-serif size=2>A-5</FONT></P>
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<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(b)
Except as provided in Section 12 hereof, if a Participant ceases to maintain
Continuous Service for any reason (other than death, total or partial disability
or retirement) unless the Committee shall otherwise determine, all Shares of
Restricted Stock theretofore awarded to such Participant and which at the time
of such termination of Continuous Service are subject to the restrictions
imposed by paragraph (a) of this Section 9 shall upon such termination of
Continuous Service be forfeited and returned to the Company. If a Participant
ceases to maintain Continuous Service by reason of death or total or partial
disability, then the restrictions with respect to the Ratable Portion of the
Shares of Restricted Stock shall lapse and such Shares shall be free of
restrictions and shall not be forfeited. The Ratable Portion shall be determined
with respect to each separate Award of Restricted Stock issued and shall be
equal to (i) the number of Shares of Restricted Stock awarded to the Participant
multiplied by the portion of the Restricted Period that expired at the date of
the Participant's death or total or partial disability reduced by (ii) the
number of Shares of Restricted Stock awarded with respect to which the
restrictions had lapsed as of the date of the death or total or partial
disability of the Participant.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(c)
Each certificate issued in respect of Shares of Restricted Stock awarded under
the Plan shall be registered in the name of the Participant and deposited by the
Participant, together with a stock power endorsed in blank, with the Company and
shall bear the following (or a similar) legend:</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>"The
transferability of this certificate and the shares of stock represented hereby
are subject to the terms and conditions (including forfeiture) contained in the
2000 Stock Option and Incentive Plan of Shoe Carnival, Inc., and an Agreement
entered into between the registered owner and Shoe Carnival, Inc. Copies of such
Plan and Agreement are on file in the office of the Secretary of Shoe Carnival,
Inc.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(d) At the
time of an award of Shares of Restricted Stock, the Participant shall enter into
an Agreement with the Company in a form specified by the Committee, agreeing to
the terms and conditions of the award and to such other matters as the Committee
shall in its sole discretion determine.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(e) At the
time of an award of Shares of Restricted Stock, the Committee may, in its
discretion, determine that the payment to the Participant of dividends declared
or paid on such Shares by the Company or a specified portion thereof, shall be
deferred until the earlier to occur of (i) the lapsing of the restrictions
imposed under paragraph (a) of this Section 9 or (ii) the forfeiture of such
Shares under paragraph (b) of this Section 9, and shall be held by the Company
for the account of the Participant until such time. In the event of such
deferral, there shall be credited at the end of each year (or portion thereof)
interest on the amount of the account at the beginning of the year at a rate per
annum as the Committee, in its discretion, may determine. Payment of deferred
dividends, together with interest accrued thereon as aforesaid, shall be made
upon the earlier to occur of the events specified in (i) and (ii) of the first
sentence of this paragraph (e).</FONT></P>
<P align=center><FONT face=sans-serif size=2>A-6</FONT></P>
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<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(f) At the
expiration of the restrictions imposed by paragraph (a) of this Section 9, the
Company shall redeliver to the Participant (or where the relevant provision of
paragraph (b) of this Section 9 applies in the case of a deceased Participant,
to his legal representative, beneficiary or heir) the certificate(s) and stock
power deposited with it pursuant to paragraph (c) of this Section 9 and the
Shares represented by such certificate(s) shall be free of the restrictions
referred to in paragraph (a) of this Section 9. Notwithstanding any other
provision of this Section 9 and Section 11 to the contrary, in the case of
grants of Restricted Stock that are intended to qualify as "performance-based
compensation" under Section 162(m) of the Code, no Shares of Restricted Stock
shall become vested unless the Performance Targets with respect to such
Restricted Stock shall have been satisfied and unless the Committee has
certified, by resolution or other appropriate action in writing, that the
Performance Targets previously established by the Committee have been satisfied.
If the vesting of Shares of Restricted Stock is accelerated after the applicable
Performance Targets have been met, the
amount of Restricted Stock distributed shall be discounted by the Committee to
reasonably reflect the time value of money in connection with such early
vesting.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(g)
Notwithstanding any other provision of this Section 9 to the contrary, for
purposes of qualifying grants of Restricted Stock as "performance-based
compensation" under Section 162(m) of the Code, the Committee shall establish
restrictions based upon the achievement of Performance Targets. The specific
goal or goals under the Performance Targets that must be satisfied for the
Restricted Period to lapse or terminate shall be set by the Committee on or
before the latest date permissible to enable the Restricted Stock to qualify as
"performance-based compensation" under Section 162(m) of the Code. The Business
Criteria for Performance Targets under this Section 9 shall be any one or any
combination of Annual Return to Shareholders, Total Net Sales, Net Earnings, Net
Earnings before Nonrecurring Items, Return on Equity, Return on Assets, EPS,
EBITDA or EBITDA before Nonrecurring Items. In granting Restricted Stock that is
intended to qualify under Section 162(m), the Committee shall follow any
procedures determined by it in its sole discretion from time to time to be
necessary, advisable or appropriate to ensure qualification of the Restricted
Stock under Section 162(m) of the Code. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>10.
</FONT></B><B><U><FONT face=sans-serif size=2>Adjustments Upon Changes in
Capitalization</FONT></U></B><FONT face=sans-serif size=2>. In the event of any
change in the outstanding Shares subsequent to the effective date of the Plan by
reason of any reorganization, recapitalization, stock split, stock dividend,
combination or exchange of shares, merger, consolidation or any change in the
corporate structure or Shares of the Company, the maximum aggregate number and
class of shares as to which Awards may be granted under the Plan and the number
and class of shares with respect to which Awards theretofore have been granted
under the Plan shall be appropriately adjusted by the Committee, whose
determination shall be conclusive. Any shares of stock or other securities
received, as a result of any of the foregoing, by a Participant with respect to
Restricted Stock shall be subject to the same restrictions and the
certificate(s) or other instruments representing or evidencing such shares or
securities shall be legended and deposited with the Company in the manner
provided in Section 9 hereof. </FONT></P>
<P align=left><FONT face=sans-serif size=2><FONT face="Times New Roman" size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>11.
</STRONG></FONT><STRONG><U><FONT face=sans-serif size=2>Effect of
Reorganization.</FONT></U><FONT face=sans-serif size=2> </FONT></STRONG></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Awards will be affected by a
Reorganization as follows: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(a)
If the Reorganization is a dissolution or liquidation of the Company then (i)
the restrictions of Section 9(a) on Shares of Restricted Stock shall lapse and
(ii) each outstanding Option shall terminate, but each Participant to whom the
Option was granted shall have the right, immediately prior to such dissolution
or liquidation to exercise his Option in full, notwithstanding the provisions of
Section 8, and the Company shall notify each Participant of such right within a
reasonable period of time prior to any such dissolution or liquidation.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>(b)
If the Reorganization is a merger or consolidation, upon the effective date of
such Reorganization (i) each Optionee shall
be entitled, upon exercise of his Option in accordance with all of the terms and
conditions of the Plan, to receive in lieu of Shares, shares of such stock or
other securities or consideration as the holders of Shares shall be entitled to
receive pursuant to the terms of the Reorganization; and (ii) each holder of
Restricted Stock shall receive shares of such stock or other securities as the
holders of Shares received and the certificate(s) or other instruments
representing or evidencing such shares or securities shall be legended and
deposited with the Company in the manner provided in Section 9
hereof.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left><FONT face=sans-serif size=2>The
adjustments contained in this Section and the manner of application of such
provisions shall be determined solely by the Committee. </FONT></P>
<P align=center><FONT face=sans-serif size=2>A-7</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>12.</FONT></B><FONT face=sans-serif size=2> </FONT><B><FONT face=sans-serif size=2></FONT></B><B><U><FONT face=sans-serif size=2>Effect of
Change of Control</FONT></U></B><B><FONT face=sans-serif size=2>.
</FONT></B><FONT face=sans-serif size=2>If the Continuous Service of any
Participant of the Company or any Affiliate is involuntarily terminated, for
whatever reason, at any time within eighteen months after a Change in Control,
unless the Committee shall have otherwise provided in the agreement referred to
in paragraph (d) of Section 9 hereof, any Restricted Period with respect to
Restricted Stock theretofore awarded to such Participant shall lapse upon such
termination and all Shares awarded as Restricted Stock shall become fully vested
in the Participant to whom such Shares were awarded. If a tender offer or
exchange offer for Shares (other than such an offer by the Company) is
commenced, or if an event specified in clause (ii) or clause (iii) of the
definition of a Change in Control contained in Section 2 shall occur, unless the
Committee shall have otherwise provided in the instrument evidencing the grant
of an Option, all Options theretofore granted and not fully exercisable shall
become exercisable in full upon the happening of such event and shall remain so
exercisable in accordance with their terms; provided, however, that no Option
which has previously been exercised or otherwise terminated shall become
exercisable. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>13.</FONT></B><FONT face=sans-serif size=2> </FONT><B><FONT face=sans-serif size=2></FONT></B><B><U><FONT face=sans-serif size=2>Assignments
and Transfers</FONT></U></B><FONT face=sans-serif size=2>. Except as otherwise
determined by the Committee, no Award nor any right or interest of a Participant
under the Plan in any instrument evidencing any Award under the Plan may be
assigned, encumbered or transferred except, in the event of the death of a
Participant, by will or the laws of descent and distribution. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>14.</FONT></B><FONT face=sans-serif size=2> </FONT><B><FONT face=sans-serif size=2></FONT></B><B><U><FONT face=sans-serif size=2>Employee
Rights Under the Plan</FONT></U></B><FONT face=sans-serif size=2>. No Director,
officer, employee or other person shall have a right to be selected as a
Participant nor, having been so selected, to be selected again as a Participant
and no Director, officer, employee or other person shall have any claim or right
to be granted an Award under the Plan or under any other incentive or similar
plan of the Company or any Affiliate. Neither the Plan nor any action taken
thereunder shall be construed as giving any employee any right to be retained in
the employ of the Company or any Affiliate. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>15.</FONT></B><FONT face=sans-serif size=2> </FONT><B><FONT face=sans-serif size=2></FONT></B><B><U><FONT face=sans-serif size=2>Delivery
and Registration of Stock</FONT></U></B><FONT face=sans-serif size=2>. The
Company's obligation to deliver Shares with respect to an Award shall, if the
Committee so requests, be conditioned upon the receipt of a representation as to
the investment intention of the Participant to whom such Shares are to be
delivered, in such form as the Company shall determine to be necessary or
advisable to comply with the provisions of the Securities Act or any other
applicable federal or state securities legislation. It may be provided that any
representation requirement shall become inoperative upon a registration of the
Shares or other action eliminating the necessity of such representation under
the Securities Act or other securities legislation. The Company shall not be
required to deliver any Shares under the Plan prior to (i) the admission of such
shares to listing on any stock exchange or system on which Shares may then be
listed, and (ii) the completion of such registration or other qualification of
such Shares under any state or federal law, rule or regulation, as the Company
shall determine to be necessary or advisable. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>16.</FONT></B><FONT face=sans-serif size=2> </FONT><B><FONT face=sans-serif size=2></FONT></B><B><U><FONT face=sans-serif size=2>Withholding
Tax</FONT></U></B><FONT face=sans-serif size=2>. Upon the termination of the
Restricted Period with respect to any Shares of Restricted Stock (or at any such
earlier time, if any, that an election is made by the Participant under Section
83(b) of the Code, or any successor provision thereto, to include the value of
such Shares in taxable income), the Company may, in lieu of requiring the
Participant or other person receiving such Shares to pay the Company the amount
of any taxes which the Company is required to withhold with respect to such
Shares, retain a sufficient number of Shares held by it to cover the amount
required to be withheld. The Company shall have the right to deduct from all
dividends paid with respect to Shares of Restricted Stock the amount of any
taxes which the Company is required to withhold with respect to such dividend
payments. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2>Where a
Participant or other person is entitled to receive Shares pursuant to the
exercise of an Option pursuant to the Plan, the Company may, in lieu of
requiring the Participant or such other person to pay the Company the amount of
any taxes which the Company is required to withhold with respect to such Shares,
retain a number of such Shares sufficient to cover the amount required to be
withheld. </FONT></P>
<P align=center><FONT face=sans-serif size=2>A-8</FONT></P>
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<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=sans-serif size=2><B>17. <U>Termination, Amendment and Modification of
Plan</U></B>. The Board may at any time
terminate, and may at any time and from time to time and in any respect amend or
modify, the Plan; provided however, that to the extent necessary and desirable
to comply with Section 422 of the Code (or any other applicable law or
regulation, including requirements of any stock exchange or Nasdaq system
on which the Shares are listed or quoted) shareholder approval of any
Plan amendment shall be obtained in such a manner and to such a degree as is
required by the applicable law or regulation; and provided further, that no
termination, amendment or modification of the Plan shall in any manner affect
any Award theretofore granted pursuant to the Plan without the consent of the
Participant to whom the Award was granted or transferee of the Award.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>18.</FONT></B><FONT face=sans-serif size=2> </FONT><B><U><FONT face=sans-serif size=2>Section 162(m) Conditions; Bifurcation of
Plan</FONT></U></B><B><FONT face=sans-serif size=2>. </FONT></B><FONT face=sans-serif size=2>It is the intent of the Company that the Plan and certain
of the Awards granted hereunder satisfy and be interpreted in a manner that, in
the case of Participants who are or may be persons whose compensation is subject
to Section 162(m), satisfies any applicable requirements as performance-based
compensation. Any provision, application or interpretation of the Plan
inconsistent with this intent to satisfy the standards in Section 162(m) of the
Code shall be disregarded. Notwithstanding anything to the contrary in the Plan,
the provisions of the Plan may at any time be bifurcated by the Board of
Directors of the Company or the Committee in any manner so that certain
provision of the Plan or any Award intended (or required in order) to satisfy
the applicable requirements of Section 162(m) are only applicable to persons
whose compensation is subject to Section 162(m). </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=sans-serif size=2>19.</FONT></B><FONT face=sans-serif size=2> </FONT><B><FONT face=sans-serif size=2></FONT></B><B><U><FONT face=sans-serif size=2>Effective
Date and Term of Plan</FONT></U></B><B><FONT face=sans-serif size=2>.
</FONT></B><FONT face=sans-serif size=2>The Plan shall become effective upon its
adoption by the Board of Directors and shareholders of the Company. Unless
sooner terminated under Section 17 hereof, no further Awards may be made under
the Plan after the later of ten years from the date of (a) adoption of the Plan
by the shareholders of the Company, or (b) the approval of any amendment of the
Plan by the shareholders of the Company. </FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Adopted by the Board of
Directors<BR>of Shoe Carnival, Inc. as of May 1, 2000 and by the shareholders
of<BR>Shoe Carnival, Inc. as of June 8, 2000 </FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Amended by the Board of Directors
of Shoe Carnival, Inc.<BR>as of March 10, 2004 and by the shareholders of Shoe
Carnival, Inc.<BR>as of June 11, 2004. </FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Amended by the Board of Directors
of Shoe Carnival, Inc.<BR>as of March 25, 2005 and by the shareholders of Shoe
Carnival, Inc.<BR>as of June 14, 2005. </FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Amended by the Board of Directors
of Shoe Carnival, Inc.<BR>as of March 18, 2008 and by the shareholders of Shoe
Carnival, Inc.<BR>as of June ___, 2008.</FONT></B></P>
<P align=center><FONT face=sans-serif size=2>A-9</FONT></P>
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<PAGE>
<P align=left><B><FONT face=sans-serif>Proxy - Shoe Carnival, Inc.
</FONT></B></P>
<P align=left><B><FONT face=sans-serif>Proxy Solicited on Behalf of The Board of
Directors<BR>For The Annual Meeting of Shareholders - June 12, 2008
</FONT></B></P>
<P align=left><FONT face=sans-serif size=2>The undersigned appoints Mark L.
Lemond and J. Wayne Weaver, and each of them, as proxies, with full power of
substitution and revocation, to vote, as designated on the reverse side hereof,
all the common stock of Shoe Carnival, Inc. which the undersigned has power to
vote, with all powers which the undersigned would possess if personally present,
at the annual meeting of shareholders thereof to be held at the corporate
headquarters for Shoe Carnival, Inc. located at 7500 East Columbia Street,
Evansville, Indiana on June 12, 2008, at 9:00 a.m., C.D.T., or at any
adjournment thereof. </FONT></P>
<P align=left><B><FONT face=sans-serif size=2>This proxy when properly executed
will be voted in the manner directed herein by the undersigned shareholder.
Unless otherwise marked, this proxy will be voted FOR the election as Director
of the nominees listed under Proposal 1 and FOR Proposals 2 and 3.
</FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>YOUR VOTE IS IMPORTANT!
</FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>PLEASE VOTE, SIGN, DATE AND RETURN
THIS PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE. </FONT></B></P>
<P align=left><FONT face=sans-serif size=2>(Continued and to be signed on
reverse side.) </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=sans-serif>Shoe Carnival, Inc.
<BR></FONT></B><B><FONT face=sans-serif>Annual Meeting Proxy Card
</FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>A. Proposals &#150; The Board of
Directors recommends a vote <U>FOR</U> the listed nominees and <U>FOR</U>
Proposals 2 and 3</FONT></B><B><FONT face=sans-serif size=2>. </FONT></B></P>
<P align=left><FONT face=sans-serif size=2>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Election of Directors: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp; </TD>
    <TD noWrap align=center width="13%"><FONT face=Arial size=2>For</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"></TD>
    <TD noWrap align=center width="16%"><FONT face=sans-serif size=2>Withhold</FONT>&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>01
      &#150;&nbsp;J. Wayne Weaver</FONT>&nbsp; </TD>
    <TD noWrap align=center width="13%"><FONT face=sans-serif size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=Arial size=2>]&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="16%"></TD>
    <TD noWrap align=center width="16%"><FONT face=sans-serif size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=Arial size=2>]</FONT></TD>
    <TD noWrap align=right width="7%"></TD></TR>
  <TR>
    <TD noWrap align=left width="47%"><FONT face=Arial size=2>02 &#150;&nbsp;Gerald
      W. Schoor</FONT>&nbsp; </TD>
    <TD noWrap align=center width="13%"><FONT face=Arial size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=Arial size=2>]&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="16%"></TD>
    <TD noWrap align=center width="16%"><FONT face=Arial size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=Arial size=2>]</FONT></TD>
    <TD noWrap align=right width="7%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="64%">&nbsp; </TD>
    <TD noWrap align=center width="11%"><FONT face=sans-serif size=2>For</FONT>&nbsp; </TD>
    <TD noWrap align=center width="12%"><FONT face=sans-serif size=2>Against</FONT>&nbsp; </TD>
    <TD noWrap align=center width="9%"><FONT face=sans-serif size=2>Abstain</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face=sans-serif size=2>2.</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="64%"><FONT face=sans-serif size=2>Proposal to ratify the
      appointment of Deloitte &amp; Touche LLP,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; &nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="64%"><FONT face=sans-serif size=2>as the independent
      registered public accounting firm for the</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; &nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; &nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD noWrap align=left width="64%"><FONT face=sans-serif size=2>Company for fiscal
      2008.</FONT>&nbsp; </TD>
    <TD noWrap align=center width="11%"><FONT face=Arial size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=Arial size=2>]&nbsp; </FONT></TD>
    <TD noWrap align=center width="12%"><FONT face=Arial size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=Arial size=2>]&nbsp; </FONT></TD>
    <TD noWrap align=center width="9%"><FONT face=Arial size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=Arial size=2>]&nbsp; </FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="64%">&nbsp;</TD>
    <TD noWrap align=center width="11%"></TD>
    <TD noWrap align=center width="12%"></TD>
    <TD noWrap align=center width="9%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="64%"></TD>
    <TD noWrap align=center width="11%"><FONT face=Arial size=2>For</FONT>&nbsp; </TD>
    <TD noWrap align=center width="12%"><FONT face=Arial size=2>Against</FONT>&nbsp; </TD>
    <TD noWrap align=center width="9%"><FONT face=Arial size=2>Abstain</FONT>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="1%"><FONT face=Arial size=2>3. </FONT></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="64%">
      <P align=left><FONT face=sans-serif size=2>Proposal to approve the
      proposed amendment to&nbsp;</FONT></P></TD>
    <TD noWrap align=center width="11%"></TD>
    <TD noWrap align=center width="12%"></TD>
    <TD noWrap align=center width="9%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="64%"><FONT face=Arial size=2>the Shoe Carnival, Inc. 2000
      Stock Option and Incentive Plan. </FONT></TD>
    <TD noWrap align=center width="11%"><FONT face=Arial size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=Arial size=2>]&nbsp; </FONT></TD>
    <TD noWrap align=center width="12%"><FONT face=Arial size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=Arial size=2>]&nbsp; </FONT></TD>
    <TD noWrap align=center width="9%"><FONT face=Arial size=2>[</FONT>&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=Arial size=2>]&nbsp; </FONT></TD></TR></TABLE><BR>
<P align=left><B><FONT face=sans-serif size=2>B. Non-Voting Items
</FONT></B></P>
<P align=left><B><FONT face=sans-serif size=2>Change of Address</FONT></B><FONT face=sans-serif size=2> &#150; Please print new address below. </FONT></P>
<P align=left>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" width="100%">&nbsp;<BR>&nbsp;<BR>&nbsp;</TD></TR></TABLE>
<P align=left><B><FONT face=sans-serif size=2>C. Authorized Signatures -- This
section must be completed for your vote to be counted. &#150; Date and Sign
Below</FONT></B><FONT face=sans-serif size=2> </FONT></P>
<P align=left><FONT face=sans-serif size=2>NOTE: When signing as attorney,
executor, administrator, trustee or guardian, please give full title. If more
than one trustee, all should sign. All joint owners must sign. </FONT></P>
<P align=left><FONT face=sans-serif size=2>Date (mm/dd/yyyy) &#150; Please print date
below. </FONT><BR>
<TABLE cellSpacing=0 cellPadding=0 width="25%" border=0>

  <TR>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" width="100%"><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD></TR></TABLE>
<P align=left><FONT face=sans-serif size=2>Signature 1 - Please keep signature
within the box. </FONT><BR>
<TABLE cellSpacing=0 cellPadding=0 width="25%" border=0>

  <TR>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" width="100%"><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD></TR></TABLE>
<P align=left><FONT face=sans-serif size=2>Signature 2 - Please keep signature
within the box. </FONT><BR>
<TABLE cellSpacing=0 cellPadding=0 width="25%" border=0>

  <TR>
    <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" width="100%"><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD></TR></TABLE><BR>
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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
