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<SEC-DOCUMENT>0001206774-09-000436.txt : 20090309
<SEC-HEADER>0001206774-09-000436.hdr.sgml : 20090309
<ACCEPTANCE-DATETIME>20090309165851
ACCESSION NUMBER:		0001206774-09-000436
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		20
CONFORMED PERIOD OF REPORT:	20081231
FILED AS OF DATE:		20090309
DATE AS OF CHANGE:		20090309

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INVESTORS TITLE CO
		CENTRAL INDEX KEY:			0000720858
		STANDARD INDUSTRIAL CLASSIFICATION:	TITLE INSURANCE [6361]
		IRS NUMBER:				561110199
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11774
		FILM NUMBER:		09666816

	BUSINESS ADDRESS:	
		STREET 1:		121 N COLUMBIA ST
		STREET 2:		P O DRAWER 2687
		CITY:			CHAPEL HILL
		STATE:			NC
		ZIP:			27514
		BUSINESS PHONE:		9199682200

	MAIL ADDRESS:	
		STREET 1:		121 NORTH COLUMBIA STREET
		CITY:			CHAPEL HILL
		STATE:			NC
		ZIP:			27514
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>investors_10k.htm
<DESCRIPTION>ANNUAL REPORT
<TEXT>

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<P align=center><FONT face=serif size=2>UNITED STATES<BR></FONT><FONT face=serif size=2>SECURITIES AND EXCHANGE COMMISSION<BR>Washington, D.C. 20549</FONT></P>
<P align=center><B><FONT face=serif size=2>FORM 10-K</FONT></B></P>
<P align=center><FONT face=serif size=2>[X] ANNUAL REPORT PURSUANT TO SECTION 13
OR 15(d) OF<BR>THE SECURITIES EXCHANGE ACT OF 1934<BR>for the fiscal year ended
December 31, 2008</FONT></P>
<P align=center><FONT face=serif size=2>[&nbsp; ] TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d)<BR>OF THE SECURITIES EXCHANGE ACT OF 1934<BR>for the
transition period from __to __</FONT></P>
<P align=center><FONT face=serif size=2>Commission file number
0-11774</FONT></P>
<P align=center><B><FONT face=serif size=2>INVESTORS TITLE
COMPANY<BR></FONT></B><FONT face=serif size=2>(Exact name of registrant as
specified in its charter)</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=center width="49%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>North Carolina</STRONG></FONT>&nbsp;</TD>
    <TD noWrap align=center width="50%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>56-1110199</STRONG></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="49%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>(State or other jurisdiction of</FONT>&nbsp;</TD>
    <TD noWrap align=center width="50%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>(I.R.S. Employer</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="49%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>incorporation or organization)</FONT>&nbsp;</TD>
    <TD noWrap align=center width="50%"><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>Identification
No.)</FONT>&nbsp;</TD></TR></TABLE><BR>
<P align=center><B><FONT face=serif size=2>121 North Columbia Street<BR>Chapel
Hill, North Carolina 27514<BR>(919) 968-2200<BR></FONT></B><FONT face=serif size=2>(Address and telephone number of principal executive office)</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=serif size=2>Securities
      registered pursuant to section 12(b) of the Act:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="50%"><FONT face=serif size=2>Name of each
      exchange on which registered:</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><B><FONT face=serif size=2>Common Stock,
      no par value</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="50%"><FONT face=serif size=2>NASDAQ Global
      Market</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=serif size=2>Rights to
      Purchase Series A Junior Participating Preferred Stock</FONT>&nbsp; </TD>
    <TD noWrap align=left width="50%"><FONT face=serif size=2>NASDAQ Global
      Market</FONT>&nbsp; </TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>Securities registered pursuant to
section 12(g) of the Act:<BR>None</FONT></P>
<DIV align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Indicate by check mark whether the
registrant is a well-known seasoned issuer, as defined in Rule 405 of the
Securities Act.</FONT></DIV>
<DIV align=center><FONT face=serif size=2>Yes [&nbsp;&nbsp;
]&nbsp;&nbsp;&nbsp;&nbsp; No [X]<BR>&nbsp;</FONT></DIV>
<DIV align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Indicate by check mark if the
registrant is not required to file reports pursuant to Section 13 or Section
15(d) of the Exchange Act.</FONT></DIV>
<DIV align=center><FONT face=serif size=2>Yes [&nbsp;&nbsp;
]&nbsp;&nbsp;&nbsp;&nbsp; No [X]</FONT><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Indicate by
check mark whether the registrant (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes [X]&nbsp;&nbsp;&nbsp;&nbsp; No [&nbsp;&nbsp; ]</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Indicate by check mark if disclosure
of delinquent filers pursuant to Item 405 of Regulation S-K is not contained
herein, and will not be contained, to the best of registrant&#146;s knowledge, in
definitive proxy or information statements incorporated by reference in Part III
of this Form 10-K or any amendment to this Form 10-K. [X]</FONT></P>
<DIV align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company. See the definitions of &#147;large accelerated
filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the
Exchange Act. (Check one): Large accelerated filer [&nbsp;&nbsp;
]&nbsp;&nbsp;&nbsp;&nbsp; Accelerated filer [X]&nbsp;&nbsp;&nbsp;&nbsp;
Non-accelerated filer [&nbsp;&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp; Smaller reporting
company</FONT></DIV>
<DIV align=right><FONT face=serif size=2>(Do not check if a smaller reporting
company)<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT></DIV>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes
[&nbsp;&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp; No [X]</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The aggregate market value of the
common shares held by non-affiliates was $82,336,510 based on the closing sales
price on the NASDAQ Global Market on the last business day of the registrant&#146;s
most recently completed second fiscal quarter (June 30, 2008).</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>As of February 20, 2009, there were
2,294,118 common shares of the registrant outstanding</FONT></P>
<P align=center><B><FONT face=serif size=2>DOCUMENTS INCORPORATED BY
REFERENCE</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Portions of
Investors Title Company&#146;s definitive proxy statement for the Annual Meeting of
Shareholders to be held May 20, 2009 are incorporated by reference in Part III
hereof.</FONT></P></DIV>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>SAFE HARBOR FOR FORWARD-LOOKING
STATEMENTS</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>This Annual
Report on Form 10-K, as well as information included in future filings by the
Company with the Securities and Exchange Commission and information contained in
written material, press releases and oral statements issued by or on behalf of
the Company, contains, or may contain, &#147;forward-looking statements&#148; within the
meaning of the Private Securities Litigation Reform Act of 1995 that reflect
management&#146;s current outlook for future periods. These statements may be
identified by the use of words such as &#147;plan,&#148; &#147;expect,&#148; &#147;aim,&#148; &#147;believe,&#148;
&#147;project,&#148; &#147;anticipate,&#148; &#147;intend,&#148; &#147;estimate,&#148; &#147;should,&#148; &#147;could&#148; and other
expressions that indicate future events and trends. All statements that address
expectations or projections about the future, including statements about the
Company&#146;s strategy for growth, product and service development, market share
position, claims, expenditures, financial results and cash requirements, are
forward-looking statements. Forward-looking statements are based on certain
assumptions and expectations of future events that are subject to a number of
risks and uncertainties. Actual future results and trends may differ materially
from historical results or those projected in any such forward-looking
statements depending on a variety of factors, including, but not limited to, the
following:</FONT></P>
<UL style="FONT-SIZE: 10pt">
  <LI><FONT face=serif size=2>the level of real estate transactions, the level
  of mortgage origination volumes (including refinancing)</FONT> <FONT face=serif size=2>and changes to the insurance requirements of the
  participants in the secondary mortgage market, and the</FONT> <FONT face=serif size=2>effect of these factors on the demand for title
  insurance;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>changes in general economic conditions, including
  the performance of the credit and real estate markets;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>significant changes to applicable government
  regulations;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>the possible inadequacy of provisions for claims
  to cover actual claim losses;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>the incidence of fraud-related
  losses;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>heightened regulatory scrutiny;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>unanticipated adverse changes in securities
  markets, including interest rates, could result in material</FONT> <FONT face=serif size=2>losses on the Company&#146;s investments;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>the Company&#146;s dependence on key management
  personnel, the loss of whom could have a material</FONT> <FONT face=serif size=2>adverse affect on the Company&#146;s business;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>the Company&#146;s ability to develop and offer
  products and services that meet changing industry standards in</FONT> <FONT face=serif size=2>a timely and cost-effective manner;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>statutory requirements applicable to the Company&#146;s
  insurance subsidiaries which require them to maintain</FONT> <FONT face=serif size=2>minimum levels of capital, surplus and reserves and restrict the amount
  of dividends that they may pay to</FONT> <FONT face=serif size=2>the Company
  without prior regulatory approval and<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>the concentration of key accounting and
  information systems in a few locations.</FONT></LI></UL>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>For a
description of factors that may cause actual results to differ materially from
such forward-looking statements, see Item 1A, &#147;Risk Factors&#148; of this Annual
Report on Form 10-K.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>These and
other risks and uncertainties may be described from time to time in the
Company&#146;s other reports and filings with the Securities and Exchange Commission.
The Company does not undertake to update any forward-looking statements to
reflect circumstances or events that occur after the date the forward-looking
statements are made.</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>INVESTORS TITLE COMPANY AND
SUBSIDIARIES</FONT></B></P>
<P align=center><FONT face=serif size=2>TABLE OF CONTENTS</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>PART I</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>ITEM 1.</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>BUSINESS</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>4</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>ITEM 1A.</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>RISK FACTORS</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>ITEM 1B.</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>UNRESOLVED STAFF
      COMMENTS</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>13</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>ITEM 2.</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>PROPERTIES</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>13</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>ITEM 3.</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>LEGAL
      PROCEEDINGS</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>13</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>ITEM 4.</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>14</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>EXECUTIVE
      OFFICERS OF THE COMPANY</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>14</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>PART II</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>15</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>ITEM 5.</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>MARKET FOR
      REGISTRANT&#146;S COMMON EQUITY; RELATED STOCKHOLDER</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>MATTERS AND
      ISSUER PURCHASES OF EQUITY SECURITIES</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>15</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>ITEM 6.</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>SELECTED FINANCIAL DATA</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>16</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>ITEM 7.</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>MANAGEMENT&#146;S
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>RESULTS OF
      OPERATIONS</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>17</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>ITEM 7A.</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</FONT>
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>29</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>ITEM 8.</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>FINANCIAL
      STATEMENTS AND SUPPLEMENTARY DATA</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>31</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>ITEM 9.</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
      AND</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>FINANCIAL DISCLOSURE</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>60</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>ITEM 9A.</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>CONTROLS AND
      PROCEDURES</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>60</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>ITEM 9B.</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>OTHER INFORMATION</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>60</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>PART III</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>61</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>ITEM 10.</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>DIRECTORS,
      EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>61</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>ITEM 11.</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>EXECUTIVE COMPENSATION</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>61</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>ITEM 12.</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>SECURITY
      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>AND RELATED
      STOCKHOLDER MATTERS</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>61</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>ITEM 13.</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>INDEPENDENCE</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>61</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>ITEM 14.</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>PRINCIPAL
      ACCOUNTANT FEES AND SERVICES</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>61</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face=serif size=2>PART IV</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>62</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=serif size=2>ITEM 15.</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>EXHIBITS AND
      FINANCIAL STATEMENT SCHEDULES</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>62</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="96%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>SIGNATURES</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>63</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="96%" colSpan=3><FONT face=serif size=2>INVESTORS TITLE COMPANY INDEX TO EXHIBITS</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>72</FONT>
  </TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>3</FONT></P>
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<P align=center><B><FONT face=serif size=2>PART I</FONT></B></P>
<P align=left><B><FONT face=serif size=2>ITEM 1. BUSINESS</FONT></B></P>
<P align=left><U><FONT face=serif size=2>GENERAL</FONT></U></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Investors
Title Company (the &#147;Company&#148;) is a holding company that operates through its
subsidiaries and was incorporated in the state of North Carolina in February
1973. The Company became operational on June 24, 1976, when it acquired
Investors Title Insurance Company (&#147;ITIC&#148;) as a wholly owned subsidiary under a
plan of exchange of shares of common stock. On September 30, 1983, the Company
acquired Northeast Investors Title Insurance Company (&#147;NE-ITIC&#148;), formerly
Investors Title Insurance Company of South Carolina, as a wholly owned
subsidiary under a plan of exchange of shares of common stock. The Company&#146;s
executive offices are located at 121 North Columbia Street, Chapel Hill, North
Carolina 27514 and its telephone number is (919) 968-2200. The Company maintains
a website at </FONT><U><FONT face=serif size=2>www.invtitle.com</FONT></U><FONT face=serif size=2>.</FONT></P>
<P align=left><U><FONT face=serif size=2>OVERVIEW OF THE BUSINESS</FONT></U></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
engages in several lines of business. Its primary business activity is the
issuance of residential and commercial title insurance through ITIC and NE-ITIC.
The second line of business provides tax-deferred real property exchange
services through its subsidiaries, Investors Title Exchange Corporation (&#147;ITEC&#148;)
and Investors Title Accommodation Corporation (&#147;ITAC&#148;). The Company entered into
the business of providing investment management and trust services to
individuals, trusts and other entities in 2003. The Company has two reportable
operating segments. The title insurance segment consists of the operations of
ITIC and NE-ITIC. The exchange services segment consists of the operations of
ITEC and ITAC. The Company&#146;s remaining lines of business are not currently
material enough to constitute reportable segments. See Item 7. &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations,&#148; and
Note 13 of Notes to Consolidated Financial Statements in this Form 10-K Annual
Report for additional information related to the revenues, income and assets
attributable to the Company&#146;s primary operating segments.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Title Insurance</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Through its
two wholly owned title underwriting subsidiaries, ITIC and NE-ITIC, the Company
underwrites land title insurance for owners and mortgagees as a primary insurer.
ITIC and NE-ITIC offer primary title insurance coverage to both owners and
mortgagees of real estate and also offers the reinsurance of title insurance
risks to other title insurance companies. Title insurance protects against loss
or damage resulting from title defects that affect real property. The commitment
and policies issued are predominantly the standard American Land Title
Association (&#147;ALTA&#148;) approved forms.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Upon a real
estate closing, the seller executes a deed to the new owner. When real property
is conveyed from one party to another, occasionally there is an undisclosed
defect in the title or a mistake or omission in a prior deed, will or mortgage
that may give a third party a legal claim against such property. If a claim is
made against real property, title insurance provides indemnification against
insured defects.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>A title
defect is one of any number of things that could jeopardize the property owner&#146;s
or mortgagee&#146;s interest in the property defined in the title policy. Such risks
include title being vested in someone or some entity other than the insured,
unmarketable title, lack of a right of access to the property, invalidity or
unenforceability of the insured mortgage, or other defects, liens, or
encumbrances against the property. Examples of common types of covered risks
include defects arising from prior unsatisfied mortgages, tax liens or confirmed
assessments, judgments against the property or encumbrances against the property
arising through easements, restrictions or other existing covenants. Title
insurance also generally protects against deeds or mortgages that contain
inaccurate legal descriptions, that were forged or improperly acknowledged or
delivered, that were executed by spouses without the other spouse&#146;s signature or
release of marital interest or that were conveyed by minors or
incompetents.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Title
Insurance Policies</FONT></I><FONT face=serif size=2>. There are two basic types
of title insurance policies - one for the mortgage lender and one for the real
estate owner. A lender often requires property owners to purchase title
insurance to protect its position as a holder of a mortgage loan, but the
lender&#146;s title insurance policy does not protect the property owner. The
property owner has to purchase a separate owner&#146;s title insurance policy to
protect their investment. The Company issues title insurance policies on the
basis of a title report. The title report documents the current status of title
to the property.</FONT></P>
<P align=center><FONT face=serif size=2>4</FONT></P>
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<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Insured
Risk on Policies in Force</FONT></I><FONT face=serif size=2>. Generally, the
amount of the insured risk or &#147;face amount&#148; of insurance on a title insurance
policy is equal to the lesser of the purchase price of the insured property or
the fair market value of the property. In the event that a claim is made against
the property, the insurer is responsible for paying the legal costs associated
with eliminating covered title defects or defending the insured party against
covered title defects affecting the property. The insurer may choose to pay the
policy limits to the insured or, if the loss is less than policy limits, the
amount of the insured&#146;s actual loss due to the title defect, at which time the
insurer&#146;s duty to defend the claim and all other obligations of the insurer with
respect to the claim are satisfied.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>At any given
time, the insurer&#146;s actual risk of monetary loss under outstanding policies is
only a portion of the aggregate insured risk, or total face amount, of all
policies in force. The lower risk results primarily from the reissuance of title
insurance policies by other underwriters over time when the property is conveyed
or refinanced. The coverage on a lender&#146;s title insurance policy is reduced and
eventually terminated as the mortgage loan it secures is paid. An owner&#146;s policy
is effective as long as the insured has an ownership interest in the property or
has liability under warranties of title. Due to the variability of these
factors, the aggregate contingent liability of a title underwriter on
outstanding policies of the Company and its subsidiaries cannot be determined
with any precision.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Losses
and Reserves</FONT></I><FONT face=serif size=2>. While most other forms of
insurance provide for the assumption of risk of loss arising out of unforeseen
events, title insurance is based upon a process of loss avoidance. Title
insurance generally serves to protect the policyholder from the risk of loss
from events that predate the issuance of the policy. Losses on policies
typically occur when a title defect is not discovered during the examination and
settlement process or the occurrence of certain hidden risks which cannot be
determined from an accurate search of public land records. The maximum amount of
liability under a title insurance policy is generally the face amount of the
policy plus the cost of defending the insured&#146;s title against an adverse claim.
Reserves for claim losses are established based upon known claims, as well as
estimated losses incurred but not yet reported to the Company, based upon
historical experience and other factors. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Title claims
can often be complex, vary greatly in dollar amounts, are affected by economic
and market conditions and may involve uncertainties as to ultimate exposure, and
therefore, reserve estimates are subject to variability. For a more complete
description of the Company&#146;s reserves for claims, see Item 7. &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations&#148; in this
Form 10-K Annual Report.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Geographic Operations</FONT></I><FONT face=serif size=2>. ITIC was
incorporated in the State of North Carolina on January 28, 1972, and became
licensed to write title insurance in the State of North Carolina on February 1,
1972. At present, ITIC primarily writes land title insurance in 23 states,
mostly in the eastern half of the United States. ITIC is licensed to write
title insurance in 44 states and the District of Columbia. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>NE-ITIC was
incorporated in the State of South Carolina on February 23, 1973, and became
licensed to write title insurance in that state on November 1, 1973. It
currently writes title insurance as a primary insurer and as a reinsurer in the
State of New York. NE-ITIC is also licensed to write title insurance in 19
additional states and the District of Columbia. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Premiums
from title insurance written in the state of North Carolina represent the
largest source of revenue for the title insurance segment. In the state of North
Carolina, ITIC primarily issues title insurance commitments and policies through
branch offices. Title policies are primarily issued through issuing agents in
other states. For a description of the level of net premiums written
geographically by state, refer to Item 7 &#147;Management&#146;s Discussion and Analysis
of Financial Condition and Results of Operations&#148; in this Annual Report on Form 10-K. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Each state
license authorizing ITIC or NE-ITIC to write title insurance must be renewed
annually. These licenses are necessary for the companies to operate as a title
insurer in each state in which they write premiums. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Ratings.</FONT></I><FONT face=serif size=2> The Company&#146;s title insurance
subsidiaries are regularly assigned ratings by independent agencies designed to
indicate their financial condition and/or their claims paying ability. The
rating agencies determine ratings primarily by analyzing financial data. ITIC
has been rated by two independent Fannie Mae-approved financial analysis firms,
Demotech, Inc. and LACE Financial Corporation (&#147;LACE&#148;), with financial stability
ratings of A&#148; (A Double Prime) and B, respectively. NE-ITIC&#146;s financial
stability also has been recognized by Demotech, Inc. and LACE with ratings of A&#148;
(A Double Prime) and A, respectively. According to Demotech, title underwriters
earning a Financial Stability Rating of A&#146;&#146; (A Double Prime) possess
</FONT><I><FONT face=serif size=2>Unsurpassed</FONT></I><FONT face=serif size=2>
financial stability related to maintaining positive surplus as regards
policyholders, regardless of the severity of a general economic downturn or
deterioration </FONT></P>
<P align=center><FONT face=serif size=2>5</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>in the title insurance cycle. A LACE
rating of &#147;A&#148; or &#147;B&#148; indicates that a title insurance company has a strong
overall financial condition that will allow it to meet its future claims, and
that, generally, the company has good operating earnings, is well capitalized
and has adequate reserves.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Reinsurance</FONT></I><FONT face=serif size=2>. The Company assumes and
cedes reinsurance with other insurance companies in the normal course of
business. Reinsurance is a contractual arrangement whereby one insurer assumes
some or all of the risk exposure written by another insurer. Ceded reinsurance
is comprised of excess of loss treaties, which protects against losses over
certain amounts.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In the
ordinary course of business, ITIC and NE-ITIC reinsure certain risks with other
title insurers for the purpose of limiting their risk exposure and to comply
with state insurance regulations. They also assume reinsurance for certain risks
of other title insurers for which they receive additional income. For the last
three years, revenues from reinsurance activities accounted for less than 1% of
total premium volume.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Exchange Services</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In 1988, the
Company established Investors Title Exchange Corporation, a wholly owned
subsidiary (&#147;ITEC&#148;), to provide services in connection with tax-deferred
exchanges of like-kind property pursuant to Section 1031 of the Internal Revenue
Code. ITEC acts as an intermediary in tax-deferred exchanges of property held
for productive use in a trade or business or for investments, and its income is
derived from fees for handling exchange transactions and interest earned on
client deposits held by the Company.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Investors
Title Accommodation Corporation (&#147;ITAC&#148;) provides services for accomplishing
reverse exchanges when taxpayers decide to acquire replacement property before
selling the relinquished property.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The services
provided by the Company&#146;s exchange segment are pursuant to provisions in the
Internal Revenue Code. From time to time, these laws are subject to review and
changes, which may negatively affect the demand for tax-deferred exchanges in
general, and consequently the revenues and profitability of the Company&#146;s
exchange segment.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In July
2008, the Internal Revenue Service (&#147;IRS&#148;) finalized its proposed regulations
regarding treatment of funds held by qualified intermediaries. As originally
proposed, the rules would have negatively affected the ability of qualified
intermediaries to retain a portion of the interest earned on exchange funds held
during exchange transactions, which could have had a material adverse effect
upon the profitability of the Company&#146;s exchange segment. As adopted however,
the new regulations apply only to individual exchange account balances over $2
million.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In addition,
the final regulations clarify that qualified intermediaries may earn marketing
fees from financial institutions. The Company currently believes that any
marketing fees earned on deposits in the future would at least partially offset
the loss of interest spread retained on exchange deposits under prior business
practices. Consequently, the Company currently believes that the final
regulations should not have a material impact on the earnings of the exchange
services segment. The regulations however have only recently been adopted, and
therefore the Company has had only limited experience under this new regime; it
is possible that these new regulations may have unanticipated consequences that
will negatively affect tax-deferred exchanges, which could have an adverse
effect on the revenues and profitability of the Company&#146;s exchange services
segment. In addition, refer to Item 7. Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations in this Form 10-K Annual Report
for additional information regarding IRS regulations.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Investment Management and Trust
Services</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other
services provided include those offered by Investors Trust Company (&#147;Investors
Trust&#148;), Investors Capital Management Company (&#147;ICMC&#148;), and Investors Title
Management Services, Inc. (&#147;ITMS&#148;), all wholly owned subsidiaries of the
Company. Investors Trust and ICMC work together to provide investment management
and trust services to individuals, companies, banks and trusts. ITMS offers
various consulting services to provide clients with the technical expertise to
start and successfully operate a title insurance agency. These subsidiaries are
not currently a reportable segment for which financial information is presented
in the Company&#146;s financial statements and are included and reported in the
category All Other.</FONT></P>
<P align=center><FONT face=serif size=2>6</FONT></P>
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<PAGE>
<P align=left><U><FONT face=serif size=2>OPERATIONS OF
SUBSIDIARIES</FONT></U></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Title Insurance</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>ITIC and
NE-ITIC issue title insurance coverage through direct operations or through
partially owned or independent title insurance agents who issue title policies
on behalf of ITIC or NE-ITIC. Title insurance premiums written reflect a
one-time premium payment, with no recurring premiums.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Generally,
premiums are recorded and recognized as revenue at the time of closing of the
related transaction as the earnings process is considered complete. Where the
policy is issued directly through a branch office, the premiums collected are
retained by the Company. Where the policy is issued through a title insurance
agent, the agent retains a majority of the premium as a commission. Title
insurance commissions earned by the Company&#146;s agents are recognized as expense
concurrently with premium recognition. The percentage of the premium retained by
agents varies by region to region and is sometimes regulated by the
states.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>For a
description of the level of net premiums written by direct and agency
operations, refer to Item 7, &#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations.&#148;</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Exchange Services</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>ITEC and
ITAC provide customer services in connection with tax-deferred exchanges
pursuant to Section 1031 of the Internal Revenue Code. Acting as a qualified
intermediary, ITEC holds the proceeds from sales of relinquished properties
until the acquisition of identified replacement properties occurs. ITAC
facilitates reverse tax-deferred exchanges pursuant to IRS Revenue Procedure
2000-37.</FONT></P>
<P align=left><U><FONT face=serif size=2>CYCLICALITY AND
SEASONALITY</FONT></U></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Title Insurance</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Real estate
activity is cyclical in nature. Title insurance premiums are closely related to
the level of real estate activity and the volume of mortgage origination. A
number of general and economic factors influence demand for title insurance,
including changes in mortgage interest rates and the availability of mortgage
financing, consumer confidence, economic conditions, supply and demand and
family income levels.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The title
insurance business tends to be seasonal as well as cyclical. Historically, the
winter months have the least real estate activity because fewer real estate
transactions occur, while the remaining quarters are more active. Refinance
activity is generally less seasonal, but it is subject to interest rate
fluctuations. The Company anticipates that current market conditions, including
weakening home sales and falling home prices, rising foreclosures and the sub
prime lending crisis, will be the primary influences on the Company&#146;s operations
until some stabilization occurs.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Exchange Services</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Seasonal and
other factors affecting the level of real estate activity and the volume of
title premiums written will also generally affect the demand for exchange
services.</FONT></P>
<P align=left><U><FONT face=serif size=2>MARKETING</FONT></U></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Title Insurance</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
markets its title insurance services to a broad range of customers in the
residential and commercial market sectors of the real estate industry. Issuing
agents are typically real estate attorneys or subsidiaries of community and
regional mortgage lending institutions, depending on local customs and
regulations and the Company&#146;s marketing strategy in a particular
territory.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>ITIC and
NE-ITIC strive to provide superior service to their customers and consider this
an important factor in attracting and retaining customers. Branch and corporate
personnel strive to develop new business and agency relationships to increase
market share and ITIC&#146;s Commercial Services Division provides services to
commercial clients.</FONT></P>
<P align=center><FONT face=serif size=2>7</FONT></P>
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<PAGE>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Exchange Services</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Marketing of
tax-deferred exchange services offered by ITEC and ITAC has been incorporated
into the marketing of the core title products offered by ITIC and NE-ITIC. The
Commercial Services Division of ITIC also markets the services offered by ITEC
and ITAC to its commercial clients.</FONT></P>
<P align=left><U><FONT face=serif size=2>REGULATION</FONT></U></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Title Insurance</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
is an insurance holding company and therefore it is subject to regulation in the
states in which its insurance subsidiaries do business. These regulations, among
other things, require insurance holding companies to register and file certain
reports and require prior regulatory approval of the payment of dividends and
other intercompany distributions or transfers.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Title
insurance companies are extensively regulated under applicable state laws. All
states have requirements for admission to do business as an insurance company,
including minimum levels of capital and surplus and establishing reserves. State
regulatory authorities monitor the stability and service of insurance companies
and possess broad powers with respect to the licensing of title insurers and
agents, approving rate schedules and policy forms, financial reporting and
accounting practices, reserve requirements, investments and dividend
restrictions, as well as examinations and audits of title insurers. Both ITIC
and NE-ITIC meet the statutory premium reserve requirements and the minimum
capital and surplus requirements of the states in which they are licensed. A
substantial portion of the assets of the Company&#146;s title insurance subsidiaries
consists of their portfolios of investment securities. Both of these
subsidiaries are required by various states&#146; laws to maintain assets of a
defined quality and amount.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s two insurance subsidiaries are subject to examination at any time by
the insurance regulators in the states where they are licensed. These and other
governmental authorities have the power to enforce state and federal laws to
which the title insurance subsidiaries are subject, including but not limited
to, the Real Estate Settlement Procedures Act (&#147;RESPA&#148;).</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The United
States Department of Housing and Urban Development (&#147;HUD&#148;) published final rules
regarding RESPA on November 17, 2008. The new rules became effective on January
16, 2009. Among other reforms, these new rules require lenders and mortgage
brokers to provide consumers with a standard good faith estimate that more
clearly discloses loan terms and closing costs, including title insurance
premiums and charges, and facilitates comparison shopping by home buyers. HUD
has also indicated that it intends to seek legislative changes to RESPA that
will complement the rules and provide HUD with enforcement mechanisms for some
of the most important consumer disclosures and protections.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Proposals to
change the laws and regulations governing insurance holding companies and the
title insurance industry are often introduced in Congress, in the state
legislatures and before the various insurance regulatory agencies. The Company
regularly monitors such proposals and legislation, although the likelihood and
timing of them and the impact they may have on the Company and its subsidiaries
cannot be determined at this time.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Any material change in the Company&#146;s
regulatory environment may have an adverse effect on its business.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Exchange Services</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Intermediary
services are not federally regulated by any regulatory commissions, and neither
ITEC nor ITAC operate in any states that regulate this industry. ITEC and ITAC
both provide services to taxpayers pursuant to IRS regulations that provide
taxpayers a safe harbor by using a qualified intermediary to structure
tax-deferred exchanges of property and using an exchange accommodation
titleholder to hold property in reverse exchange transactions.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Investment Management and Trust
Services</U></FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Investors Trust is regulated by the
North Carolina Commissioner of Banks.</FONT></P>
<P align=center><FONT face=serif size=2>8</FONT></P>
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<PAGE>
<P align=left><U><FONT face=serif size=2>COMPETITION</FONT></U></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Title Insurance</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The title
insurance industry is highly competitive. ITIC&#146;s and NE-ITIC&#146;s major competitors
together comprise a majority of the title insurance market on a national level.
The number and size of competing companies varies in the different geographic
areas in which the Company conducts business. Key factors that affect
competition in the title insurance industry are timeliness and quality of
service, price, expertise and the financial strength and size of the insurer.
Title insurance underwriters also compete for agents based upon service and
commission levels. Some title insurers currently have greater financial
resources, larger distribution networks and more extensive computerized
databases of property records and related information than the
Company.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In addition,
there are numerous industry-related regulations and statutes that set out
conditions and requirements to conduct business. Changes to or the removal of
such regulations and statutes could result in additional competition from
alternative title insurance products or new entrants into the industry that
could materially affect the Company&#146;s business operations and financial
condition.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Exchange Services</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Competition
for ITEC and ITAC comes from other title insurance companies and agents, banks,
attorneys, and other independently-owned qualified intermediaries that offer
exchange services. Key elements that affect competition are price, expertise,
timeliness and quality of service and the financial strength and size of the
company. Exchange services are not a regulated industry; there is no market data
available regarding the Company&#146;s market position in this industry.</FONT></P>
<P align=left><U><FONT face=serif size=2>CUSTOMERS</FONT></U></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
is not dependent upon any single customer or a few customers, and the loss of
any single customer would not have a material adverse effect on the
Company.</FONT></P>
<P align=left><U><FONT face=serif size=2>INVESTMENT POLICIES</FONT></U></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
and its subsidiaries derive a substantial portion of their income from
investments in bonds (municipal and corporate) and equity securities. The
Company&#146;s investment policy is designed to maintain a high quality portfolio and
maximize income. The Company invests primarily in short-term investments,
federal and municipal governmental securities and investment grade debt
securities and equity securities. Some state laws impose restrictions upon the
types and amounts of investments that can be made by the Company&#146;s insurance
subsidiaries. The Company manages its investment portfolio and does not utilize
third party investment managers. The securities in the Company&#146;s portfolio are
subject to economic conditions and normal market risks.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>See Note 3
of Notes to Consolidated Financial Statements in this Annual Report on Form 10-K
for the major categories of investments, scheduled maturities, amortized cost,
market values of investment securities and earnings by category.</FONT></P>
<P align=left><U><FONT face=serif size=2>ENVIRONMENTAL MATTERS</FONT></U></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The title
insurance policies ITIC and NE-ITIC currently issue exclude any liability for
environmental risks and contamination. Although policies issued prior to 1992
may not specifically exclude such environmental risks, they generally do not
provide affirmative coverage for such risks. As a result, the Company has not
experienced and does not anticipate that it or its subsidiaries will incur any
significant expenses related to environmental claims.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In
connection with effecting tax-deferred exchanges of like-kind property, ITEC and
ITAC may temporarily hold title to property pursuant to an accommodation
titleholder agreement. In such situations, the person or entity for which title
is being held must execute an indemnification agreement pursuant to which it
agrees to indemnify ITEC or ITAC, as appropriate, for any environmental or other
claims which may arise as a result of the arrangement.</FONT></P>
<P align=center><FONT face=serif size=2>9</FONT></P>
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<PAGE>
<P align=left><U><FONT face=serif size=2>EMPLOYEES</FONT></U></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
has no paid employees. Officers of the Company are full-time paid employees of
ITIC. The Company&#146;s subsidiaries had 218 full-time employees and 21 part-time
employees as of December 31, 2008. None of the employees are covered by any
collective bargaining agreements. Management considers its relationship with its
employees to be favorable.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>ADDITIONAL
INFORMATION</U></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s internet address is </FONT><U><FONT face=serif size=2>www.invtitle.com</FONT></U><FONT face=serif size=2>, the contents of
which are not and shall not be deemed a part of this document or any other
Securities and Exchange Commission filing. The Company makes available free of
charge through its internet website its annual reports on Form 10-K, its
quarterly reports on Form 10-Q, its current reports on Form 8-K, and all
amendments to those reports filed or furnished pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable
after such materials are electronically filed with, or furnished to, the
Securities and Exchange Commission (&#147;SEC&#148;), and also makes available the Section
16 reports on Forms 3, 4 and 5 of its insiders no later than the end of the
business day following such filings. The information is free of charge and may
be reviewed and downloaded from the website at any time. The public may read any
material it has filed with the SEC at the SEC&#146;s Public Reference Room at 100 F.
Street, N.E., Washington, D.C. 20549. The Investors section of the Company&#146;s
website also includes its code of business conduct and ethics and the charters
of the Audit, Compensation and Nominating Committees of its Board of
Directors.</FONT></P>
<P align=left><B><FONT face=serif size=2>ITEM 1A. RISK FACTORS</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The risk
factors listed in this section and other factors noted herein could cause actual
results to differ materially from those contained in any forward-looking
statements.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>The
Company&#146;s results of operations and financial condition are subject to cyclical
demand for title insurance, which depends upon the volume of residential and
commercial real estate transactions and mortgage refinancing transactions and
economic factors.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The demand
for the Company&#146;s title insurance and other real estate transaction products and
services varies over time and from year to year and is dependent upon, among
other things, the volume of commercial and residential real estate transactions
and mortgage refinancing transactions. The volume of these transactions has
historically been influenced by factors such as the state of the overall
economy, the availability of mortgage financing and mortgage interest rates.
During an economic downturn or recession, such as current conditions in the
United States, or when the availability of mortgage financing is limited or
mortgage interest rates are increasing, real estate activity typically declines.
The cyclical nature of the Company&#146;s business has caused fluctuations in revenue
and profitability in the past and is expected to do so in the future.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The real
estate and credit markets have been experiencing significant volatility and
disruption for more than 12 months. The value of residential real estate
property and the volume of new and existing home sales have significantly
declined since the market peak in 2005. If the current levels of real estate and
credit market disruption and volatility continue or worsen, there can be no
assurance that the Company will not experience adverse effects, which may be
material, to its results of operations.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The overall
demand for title insurance also depends in part upon the requirement by mortgage
lenders and participants in the secondary mortgage market that title insurance
policies be obtained on residential and commercial real property.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>The Company may experience
material losses resulting from fraud, defalcation or
misconduct.</STRONG></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Fraud,
defalcation, regulatory noncompliance and other misconduct by the Company&#146;s
agents, approved attorneys and employees are risks inherent in the Company&#146;s
business. Agents and approved attorneys typically handle large sums of money in
trust pursuant to the closing of real estate transactions and misappropriation
of funds by any of these parties could result in large title claims.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
has recently experienced an increase in its level of fraud-related losses. If
current economic conditions remain poor or deteriorate further, the Company may
continue to experience increases in the incidence of fraud, defalcation and
misconduct, which may have a material adverse effect on it.</FONT></P>
<P align=center><FONT face=serif size=2>10</FONT></P>
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<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Differences between actual claims experience and underwriting and
reserving assumptions may adversely affect the Company&#146;s financial
results.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s net income is affected by the extent to which its actual claims
experience is consistent with the assumptions used in establishing reserves for
claims. Reserves for claims are established based on actuarial estimates of how
much the Company will need to pay for reported as well as incurred, but not yet
reported claims. In addition, management considers factors such as the Company&#146;s
historical claims experience, case reserve estimates on reported claims, large
claims and other relevant factors in determining loss provision rates and the
aggregate recorded expected liability for claims. Due to the nature of the
underlying risks and the high degree of uncertainty associated with the
determination of reserves for claims, the Company cannot determine precisely the
amounts which it will ultimately pay to settle its claims. Such amounts may vary
from the estimated amounts, particularly when those payments may not occur until
well into the future. To the extent that actual claims experience is less
favorable than the underlying assumptions used in establishing such liabilities,
the Company could be required to increase reserves. Title claims can often be
complex, vary greatly in dollar amounts and are affected by economic and market
conditions and may involve uncertainties as to ultimate exposure, and therefore,
reserve estimates are subject to variability. In addition, the Company may
experience unexpected large losses periodically which require it to increase its
title loss reserves.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Poor
economic conditions can lead to increased incidences of title insurance claims,
and consequently losses, due to increases in defaults and foreclosures upon
insured properties. The Company has experienced an increase in the incidence of
title claims and losses during the recent economic downturn. If the current
environment continues or deteriorates further, the Company may continue to
experience increased levels of claims and losses, which may have a material
negative effect on its financial condition and results of operations.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>Exposure to mechanic lien
claims increases during periods of declining home sales.</STRONG></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The ongoing
and significant decline in new home sales has led to an increase in mechanic
liens being filed for unpaid construction work. Frequently, these liens do not
appear in the public record until significant time has lapsed from when the work
was performed. In many jurisdictions, these liens have priority as of the date
work commenced, therefore, making it difficult for title insurance companies to
underwrite. This &#147;hidden&#148; risk can cause significant increases in claims during
periods of declining new home sales. In the recent economic downturn, the
Company has experienced increased claims and losses related to this particular
risk. Although it has implemented procedures to mitigate against this risk in
the future, claims and losses related to this risk under existing policies may
continue to increase if current economic conditions continue or deteriorate
further.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>A decline
in the performance of the Company&#146;s investments could materially adversely
affect net income and cash flows.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Changes in
general economic conditions, interest rates, activities in securities markets
and other external factors could adversely affect the value of the Company&#146;s
investment portfolio and, in turn, the Company&#146;s operating results and financial
condition. Recent declines in the capital markets have adversely affected the
Company&#146;s investment portfolio, resulting in declines in the sale value and
liquidity of securities.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>The Company and its
subsidiaries are subject to complex government regulations.</STRONG></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s title insurance businesses are subject to extensive state laws and
regulations by state insurance authorities in each state in which they operate.
These laws and regulations are primarily intended for the protection of
policyholders and consumers. The nature and extent of these laws and regulations
typically involve, among other matters, licensing and renewal requirements and
trade and marketing practices, including, but not limited to:</FONT></P>
<UL style="FONT-SIZE: 10pt">
  <LI><FONT face=serif size=2>licensing of insurers and agents;<BR>&nbsp;</FONT>

  <LI><FONT face=serif size=2>capital and surplus requirements;<BR>&nbsp;</FONT>

  <LI><FONT face=serif size=2>approval of premium rates for
  insurance;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>limitations on types and amounts of
  investments;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>restrictions on the size of risks that may be
  insured by a single company;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>deposits of securities for the benefit of policy
  holders;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>filing of annual and other reports with respect to
  financial condition;<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>approval of policy forms; and<BR>&nbsp;</FONT>
  <LI><FONT face=serif size=2>regulations regarding the use of personal
  information.</FONT></LI></UL>
<P align=center><FONT face=serif size=2>11</FONT></P>
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<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>These laws
and regulations are subject to change and may restrict the Company&#146;s ability to
implement rate increases or other actions that it may want to take to enhance
its operating results or have a negative impact on its ability to generate
revenue and earnings.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Some of the
Company&#146;s other businesses operate within state and federal guidelines. Any
changes in the applicable regulatory environment or changes in existing
regulations could restrict its existing or future operations. Revenues from the
Company&#146;s exchange services segment are closely related to the tax rate on
capital gains and other provisions in the Internal Revenue Code. The Company&#146;s
revenues in future periods will continue to be subject to these and other
factors which are beyond its control.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In addition,
the investment management and trust services division is regulated by the North
Carolina Commissioner of Banks.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>Competition in the Company&#146;s
business affects its revenues.</STRONG></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The title
insurance industry is highly competitive. Key factors that affect competition in
the title insurance business are quality of service, price within regulatory
parameters, expertise, timeliness and the financial strength and size of the
insurer. Title companies compete for premiums by choosing various distribution
channels which may include company-owned operations and issuing agency
relationships with attorneys, lenders, realtors, builders and other settlement
service providers. Title insurance underwriters compete for agents on the basis
of service and commission levels. Some title insurers currently have greater
financial resources, larger distribution networks and more extensive
computerized databases of property records and information than the Company. The
number and size of competing companies varies in the different geographic areas
in which the Company operates. Competition among the major providers of title
insurance or the acceptance of new alternatives to traditional title products by
the marketplace could adversely affect the Company&#146;s operations and financial
condition.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>The Company&#146;s success relies
on its ability to attract and retain key personnel and
agents.</STRONG></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Competition
for skilled and experienced personnel and agents in the Company&#146;s industry is
high. The Company may have difficulty hiring the necessary marketing and
management personnel to support any future growth. The loss of any key employee
or the failure of any key employee to perform in their current position could
prevent the Company from realizing future growth. Also, the Company cannot
provide assurance that it will succeed in attracting or retaining new agents.
Its results of operations and financial condition could be adversely affected if
it is unsuccessful in attracting and retaining agents.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>A
downgrade or a potential downgrade in one of the Company&#146;s financial strength
ratings could result in a loss of business.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
competitive positions of insurance companies rely in part on the independent
ratings of their financial strength and claims-paying ability. The Company&#146;s
financial strength is subject to continued periodic review by rating agencies. A
significant downgrade in the ratings of either of the Company&#146;s policy-issuing
subsidiaries could negatively impact its ability to compete for new business and
retain existing business and maintain licenses necessary to operate as title
insurance companies in various states. </FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>Insurance regulations limit
the ability of the Company&#146;s insurance subsidiaries to pay dividends to
it.</STRONG></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
is an insurance holding company and has no substantial operations of its own.
The Company&#146;s ability to pay dividends and meet its obligations is dependent,
among other things, on the ability of its subsidiaries to pay dividends or repay
funds to it. The Company&#146;s insurance subsidiaries are subject to insurance and
other regulations that limit the amount of dividends, loans or advances to it
based on the amount of adjusted unassigned surplus and net income and require
these subsidiaries to maintain minimum amounts of capital, surplus and reserves.
In general, dividends in excess of prescribed limits are deemed &#147;extraordinary&#148;
and require prior state insurance regulatory approval. These dividend
restrictions could limit the Company&#146;s ability to pay dividends to its
shareholders or grow its business. For further discussion of the regulation of
dividend payments and other transactions between affiliates, see &#147;Liquidity and
Capital Resources&#148; under &#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#148; in Item 7 of this report.</FONT></P>
<P align=center><FONT face=serif size=2>12</FONT></P>
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<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>The
Company may encounter difficulties managing growth or technology changes, which
could adversely affect its results.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
has historically achieved revenue growth in part through a combination of
developing related new products or services and increasing its market share for
existing products. A portion of the Company&#146;s growth may be in services or
geographic areas with which management is less familiar than with its core
business and geographic areas. The expansion of the Company&#146;s business,
particularly in new services or geographic areas, or significant changes in
technology may subject it to associated risks, such as the diversion of
management&#146;s attention, lack of substantial experience in operating such
businesses and a change in competitive position resulting from technology
changes.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>The Company relies upon
North Carolina for about 48% of its title insurance
premiums.</STRONG></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>North
Carolina is the largest source of revenue for the title insurance segment and,
in 2008, North Carolina-based premiums accounted for approximately 48% of
premiums earned by the Company. A decrease in North Carolina business would
negatively impact financial results.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>Key accounting and
information systems are concentrated in a few locations. </STRONG></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s corporate headquarters, accounting and technology operations are
concentrated in North Carolina. These critical business operations are subject
to interruption by natural disasters, fire, power shortages and other events
beyond the Company&#146;s control. A catastrophic event that results in the
destruction or disruption of any of the Company&#146;s critical business operations
or systems could severely affect its ability to conduct normal business
operations and, as a result, there could be a material and adverse effect on the
Company&#146;s business, operating results and financial condition.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Failures
at financial institutions at which the Company deposits funds could adversely
affect the Company.</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
deposits substantial funds in financial institutions. These funds include
amounts owned by third parties, such as escrow deposits. Should one or more of
the financial institutions at which the Company maintains deposits fail, there
is no guarantee that the Company would recover the funds it has deposited,
whether through Federal Deposit Insurance Corporation coverage or
otherwise.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>Certain provisions of the
Company&#146;s shareholder rights plan may make a takeover of the Company difficult.
</STRONG></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
has a shareholders rights plan which could discourage transactions involving
actual or potential changes of control, including transactions that otherwise
could involve payment of a premium over prevailing market prices to the
Company&#146;s shareholders for their common shares.</FONT></P>
<P align=left><B><FONT face=serif size=2>ITEM 1B. UNRESOLVED STAFF
COMMENTS</FONT></B></P>
<P align=left><FONT face=serif size=2>None</FONT></P>
<P align=left><B><FONT face=serif size=2>ITEM 2. PROPERTIES</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
owns two adjacent office buildings and property located on the corner of North
Columbia and West Rosemary Streets in Chapel Hill, North Carolina, which serve
as the Company&#146;s corporate headquarters. The main building contains
approximately 23,000 square feet and has on-site parking facilities. The
Company&#146;s principal subsidiary, ITIC, leases office space in 32 locations
throughout North Carolina, South Carolina, Michigan and Nebraska. NE-ITIC leases
office space in one location in New York. Each of the office facilities occupied
by the Company and its subsidiaries are in good condition and adequate for
present operations. In November 2005, the Company purchased approximately 7,000
square feet of additional office space in Chapel Hill, North Carolina that was
previously leased for ITEC, ITAC, ITIC&#146;s Commercial Services Division and ITIC&#146;s
Settlement Services Division.</FONT></P>
<P align=left><B><FONT face=serif size=2>ITEM 3. LEGAL
PROCEEDINGS</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
and its subsidiaries are involved in various legal proceedings that are
incidental to their business. In the Company&#146;s opinion, based on the present
status of these proceedings, any potential liability of the Company or its
subsidiaries with respect to these legal proceedings will not, in the aggregate,
be material to the Company&#146;s consolidated financial condition or results of
operations. </FONT></P>
<P align=center><FONT face=serif size=2>13</FONT></P>
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<PAGE>
<P align=left><B><FONT face=serif size=2>ITEM 4. SUBMISSION OF MATTERS TO A VOTE
OF SECURITY HOLDERS</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>No matters
were submitted to a vote of security holders during the fourth quarter of the
fiscal year ended December 31, 2008. </FONT></P>
<P align=left><B><FONT face=serif size=2>EXECUTIVE OFFICERS OF THE COMPANY
</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Following is
information regarding the executive officers of the Company as of February 28,
2009. Each officer is appointed at the annual meeting of the Board of Directors
to serve until the next annual meeting of the Board or until his or her
respective successor has been elected and qualified.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="19%"><FONT face=serif size=2>&nbsp;&nbsp; Name</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%"><FONT face=serif size=2>Age</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="70%"><FONT face=serif size=2>Position with Registrant</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="19%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; J. Allen Fine</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="9%" bgColor=#c0c0c0><FONT face=serif size=2>74</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="70%" bgColor=#c0c0c0><FONT face=serif size=2>Chief Executive Officer and Chairman of the Board</FONT>&nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="19%"><FONT face=serif size=2>&nbsp;&nbsp;
      James A. Fine, Jr.</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="9%"><FONT face=serif size=2>46</FONT>&nbsp;
    </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=left width="70%"><FONT face=serif size=2>President,
      Treasurer, Chief Financial Officer, Chief Accounting</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="30%" colSpan=4></TD>
    <TD align=left width="70%"><FONT size=2>Officer and Director</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="19%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; W. Morris Fine</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="9%" bgColor=#c0c0c0><FONT face=serif size=2>42</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="70%" bgColor=#c0c0c0><FONT face=serif size=2>Executive Vice President, Secretary and Director</FONT>&nbsp;
  </TD></TR></TABLE><BR>
<P align=left><U><FONT face=serif size=2>J. Allen Fine</FONT></U><FONT face=serif size=2> has been Chief Executive Officer and Chairman of the Board of
the Company since its incorporation in 1973. Mr. Fine also served as President
of the Company until May 1997. Mr. Fine is the father of James A. Fine, Jr.,
President, Treasurer and Director of the Company, and W. Morris Fine, Executive
Vice President, Secretary and Director of the Company.</FONT></P>
<P align=left><U><FONT face=serif size=2>James A. Fine, Jr.</FONT></U><FONT face=serif size=2> was named Vice President of the Company in 1987. In 1997, he
was named President and Treasurer and appointed as a Director of the Company. In
2002, he was appointed as Chief Financial Officer and Chief Accounting Officer.
He is the son of J. Allen Fine, Chief Executive Officer and Chairman of the
Board of the Company, and the brother of W. Morris Fine, Executive Vice
President, Secretary and Director of the Company.</FONT></P>
<P align=left><U><FONT face=serif size=2>W. Morris Fine</FONT></U><FONT face=serif size=2> was named Vice President of the Company in 1992. In 1993, he
was named Treasurer of the Company and served in that capacity until 1997. In
1997, he was named Executive Vice President and Secretary of the Company. In
1999, he was appointed as a Director of the Company. W. Morris Fine is the son
of J. Allen Fine, Chief Executive Officer and Chairman of the Board of the
Company, and the brother of James A. Fine, Jr., President, Treasurer and
Director of the Company. </FONT></P>
<P align=center><FONT face=serif size=2>14</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>PART II</FONT></B></P>
<P align=left>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><B><FONT face=serif size=2>ITEM 5.</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="1%"><STRONG><FONT size=2>&nbsp;&nbsp;</FONT></STRONG></TD>
    <TD vAlign=top align=left width="98%"><B><FONT face=serif size=2>MARKET
      FOR REGISTRANT&#146;S COMMON EQUITY; RELATED STOCKHOLDER MATTERS AND ISSUER
      PURCHASES OF EQUITY SECURITIES</FONT></B></TD></TR></TABLE>
<P align=center><B><FONT face=serif size=2>Common Stock Data</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Common
Stock of the Company is traded under the symbol &#147;ITIC&#148; on the NASDAQ Global
Market. The number of record holders of common stock at December 31, 2008 was
435. The number of record holders is based upon the actual number of holders
registered on the books of the Company at such date and does not include holders
of shares in &#147;street names&#148; or persons, partnerships, associations, corporations
or other entities identified in security position listings maintained by
depository trust companies. The following table shows the high and low sales
prices reported on the NASDAQ Global Market.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"></TD>
    <TD noWrap align=center width="16%" colSpan=7><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%" colSpan=7><FONT face=serif size=2>2007</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=3><B><FONT face=serif size=2>High</FONT></B> </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=3><B><FONT face=serif size=2>Low</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><FONT face=serif size=2>High</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=3><FONT face=serif size=2>Low</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp; First Quarter</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;&nbsp;
      </FONT><STRONG>$</STRONG></FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; 49.25</FONT></B> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;&nbsp;
      </FONT><STRONG>$</STRONG></FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; 35.75</FONT></B> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp;&nbsp; <FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; 55.73</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;&nbsp;
      </FONT>$</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; 49.13</FONT> </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"><FONT face=serif size=2>&nbsp; Second
      Quarter</FONT> </TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>$</FONT></B>
    </TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>50.88</FONT></B> </TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>$</FONT></B>
    </TD>
    <TD noWrap align=right width="2%"><B><FONT face=serif size=2>44.76</FONT></B> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>50.58</FONT> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>47.02</FONT> </TD>
    <TD noWrap align=center width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp; Third Quarter</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>49.50</FONT></B> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>39.76</FONT></B> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>50.58</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>37.92</FONT> </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"><FONT face=serif size=2>&nbsp; Fourth
      Quarter</FONT> </TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>$</FONT></B>
    </TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>41.30</FONT></B> </TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>$</FONT></B>
    </TD>
    <TD noWrap align=right width="2%"><B><FONT face=serif size=2>28.35</FONT></B> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>42.21</FONT> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>35.50</FONT> </TD>
    <TD noWrap align=center width="2%"></TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
paid cash dividends of $0.07 and $0.06 per share in each of the four quarters in
2008 and 2007, respectively. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s current dividend policy anticipates the payment of quarterly dividends
in the future. The declaration and payment of dividends will be in the
discretion of the Board of Directors and will be dependent upon the Company&#146;s
future earnings, financial condition and capital requirements. The payment of
dividends is subject to the restrictions described in Management&#146;s Discussion
and Analysis of Financial Condition and Results of Operations, &#147;Liquidity and
Capital Resources.&#148;</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following table provides
information about purchases by the Company (and all affiliated purchasers)
during the quarter ended December 31, 2008 of equity securities that are
registered by the Company pursuant to Section 12 of the Exchange Act:
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center width="100%" colSpan=10><U><FONT face=serif size=2>Issuer
      Purchases of Equity Securities</FONT></U> </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" width="100%" colSpan=10>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="15%"></TD>
    <TD noWrap align=left width="33%"></TD>
    <TD noWrap align=center width="11%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="13%"><FONT face=serif size=2>Total Number
      of</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>Maximum Number
      of</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="15%"></TD>
    <TD noWrap align=right width="33%"></TD>
    <TD noWrap align=center width="11%"><FONT face=serif size=2>Total
      Number</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=2><FONT face=serif size=2>Average Price</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="13%"><FONT face=serif size=2>Shares
      Purchased as</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>Shares that
      May Yet Be</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="15%"></TD>
    <TD noWrap align=center width="33%"></TD>
    <TD noWrap align=center width="11%"><FONT face=serif size=2>of
      Shares</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=2><FONT face=serif size=2>Paid</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="13%"><FONT face=serif size=2>Part of
      Publicly</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="15%"><FONT face=serif size=2>Purchased
      Under the</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%"><FONT face=serif size=2>Period</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="33%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%"><FONT face=serif size=2>Purchased</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=serif size=2>per S</FONT><FONT face=serif size=2>har</FONT><FONT face=serif size=2>e</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="13%"><FONT face=serif size=2>Announced Plan</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="15%"><FONT face=serif size=2>Plan</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp; Beginning of period</FONT> </TD>
    <TD noWrap align=left width="33%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="11%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="13%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2>111,244<FONT size=3>&nbsp;</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="15%"><FONT face=serif size=2>&nbsp; 10/01/08
      &#150; 10/31/08</FONT> </TD>
    <TD noWrap align=right width="33%"></TD>
    <TD noWrap align=right width="11%"><FONT face=serif size=2>5,826</FONT>
</TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="6%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>33.05</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="13%"><FONT face=serif size=2>5,826</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="15%"><FONT face=serif size=2>105,418<FONT size=3>&nbsp;</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp; 11/01/08 &#150; 11/30/08</FONT> </TD>
    <TD noWrap align=right width="33%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="11%" bgColor=#c0c0c0><FONT face=serif size=2>532</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>36.83</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="13%" bgColor=#c0c0c0><FONT face=serif size=2>532</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2>499,468<FONT size=3>&nbsp;</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="15%"><FONT face=serif size=2>&nbsp; 12/01/08
      &#150; 12/31/08</FONT> </TD>
    <TD noWrap align=right width="33%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="6%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%"><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face=serif size=2>499,468<FONT size=3>&nbsp;</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="15%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp; Total</FONT> </TD>
    <TD noWrap align=right width="33%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%" bgColor=#c0c0c0><B><FONT face=serif size=2>6,358</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="6%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;
      <STRONG>33.37</STRONG></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="13%" bgColor=#c0c0c0><B><FONT face=serif size=2>6,358</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>499,468</STRONG><FONT size=3>&nbsp;</FONT></FONT> </TD></TR></TABLE>
<BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>For the
quarter ended December 31, 2008, the Company purchased an aggregate of 6,358
shares of the Company&#146;s common stock pursuant to the purchase plan (the &#147;Plan&#148;)
that was publicly announced on June 5, 2000. On November 10, 2008, the Board of
Directors of the Company approved the purchase of an additional 394,582 shares
pursuant to the Plan, such that there was authority remaining under the Plan to
purchase up to an aggregate of 500,000 shares of the Company&#146;s common stock
pursuant to the Plan immediately after this approval. Unless terminated earlier
by resolution of the Board of Directors, the Plan will expire when all shares
authorized for purchase under the Plan have been purchased. The Company intends
to make further purchases under this Plan.</FONT></P>
<P align=center><FONT face=serif size=2>15</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2><B>ITEM 6. SELECTED FINANCIAL
DATA</B><BR>
(dollars in thousands except per share data)</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="64%"><B><FONT face=serif size=2>&nbsp; For the Year</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </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%" colSpan=2><FONT face=serif size=2>2007</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%" colSpan=2><FONT face=serif size=2>2006</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%" colSpan=2><FONT face=serif size=2>2005</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%" colSpan=2><FONT face=serif size=2>2004</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp; </STRONG>Net premiums written</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>63,662</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>69,984</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>70,196</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>76,522</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>71,843</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=serif size=2><STRONG>&nbsp;
      </STRONG>Revenues</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>71,123</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>84,942</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>84,662</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>87,864</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>79,841</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp; </STRONG>Investment income</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,559</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>5,197</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>4,326</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>3,336</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,753</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=serif size=2><STRONG>&nbsp;
      </STRONG>Net (loss) income</FONT> </TD>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B>
    </TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>(1,183)</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>8,402</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>13,185</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>13,293</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>10,719</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="99%" colSpan=16>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; Per Share Data</FONT></B> </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="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="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="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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=serif size=2><STRONG>&nbsp;
      </STRONG>Basic (loss) earnings per common share</FONT> </TD>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B>
    </TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>(0.50)</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>3.39</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>5.22</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>5.19</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>4.29</FONT> </TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><STRONG><FONT size=2>&nbsp;&nbsp;</FONT></STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Weighted average shares outstanding&#151;Basic</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,364</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,479</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,528</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,560</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,497</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=serif size=2><STRONG>&nbsp;
      </STRONG>Diluted (loss)&nbsp;earnings per common share</FONT> </TD>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B>
    </TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>(0.50)</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>3.35</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>5.14</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>5.10</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>4.09</FONT> </TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><STRONG><FONT size=2>&nbsp;&nbsp;</FONT></STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Weighted average shares outstanding&#151;Diluted</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,364</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,509</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,564</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,608</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,621</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=serif size=2><STRONG>&nbsp;
      </STRONG>Cash dividends per share</FONT> </TD>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B>
    </TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>.28</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>.24</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>.24</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>.16</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>.15</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=16>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; At Year End</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=serif size=2><STRONG>&nbsp;
      </STRONG>Assets</FONT> </TD>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B>
    </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp; 139,858</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif><FONT size=2><STRONG>&nbsp;&nbsp; </STRONG>149,642</FONT></FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif><FONT size=2><STRONG>&nbsp;&nbsp; </STRONG>143,516</FONT></FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif><FONT size=2><STRONG>&nbsp;&nbsp; </STRONG>128,472</FONT></FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT size=2><STRONG>&nbsp;&nbsp;
      </STRONG><FONT face=serif>113,187</FONT></FONT> </TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp; </STRONG>Investments in securities</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>115,892</FONT></B> </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="5%" bgColor=#c0c0c0><FONT face=serif size=2>129,026</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>121,580</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>95,153</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>93,261</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=serif size=2><STRONG>&nbsp;
      </STRONG>Stockholders&#146; equity</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>89,858</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>99,276</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>95,276</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>84,297</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>72,507</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp; </STRONG>Book value/share</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>39.18</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>41.17</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>38.00</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>33.07</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>29.22</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="99%" colSpan=16>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; Performance Ratios</FONT></B> </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="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="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="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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=serif size=2><STRONG>&nbsp;
      </STRONG>Net (loss) income to:</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="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></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="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><STRONG><FONT size=2>&nbsp;&nbsp;</FONT></STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Average stockholders&#146; equity</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>(1.25%)</FONT></B> </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="5%" bgColor=#c0c0c0><FONT face=serif size=2>8.64%</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="5%" bgColor=#c0c0c0><FONT face=serif size=2>14.69%</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="5%" bgColor=#c0c0c0><FONT face=serif size=2>16.95%</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="5%" bgColor=#c0c0c0><FONT face=serif size=2>15.80%</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="64%"><STRONG><FONT size=2>&nbsp;&nbsp;</FONT></STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total revenues - (loss)&nbsp;profit margin</FONT>&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="5%"><B><FONT face=serif size=2>(1.66%)</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="5%"><FONT face=serif size=2>9.89%</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="5%"><FONT face=serif size=2>15.57%</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="5%"><FONT face=serif size=2>15.13%</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="5%"><FONT face=serif size=2>13.43%</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR></TABLE>
<BR>
<P align=center><FONT face=serif size=2>16</FONT></P>
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<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><B><FONT face=serif size=2>ITEM 7.</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="1%"><STRONG><FONT size=2>&nbsp;&nbsp;</FONT></STRONG></TD>
    <TD vAlign=top align=left width="98%"><B><FONT face=serif size=2>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
      RESULTS OF OPERATIONS</FONT></B></TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
following discussion should be read in conjunction with the consolidated
financial statements and the related notes in this report.</FONT></P>
<P align=left><FONT face=serif size=2>Overview</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Title
Insurance:</FONT></I><FONT face=serif size=2> Investors Title Company (the
&#147;Company&#148;) is a holding company that engages primarily in two segments of
business: title insurance and exchange services. Its primary business activity
is the issuance of title insurance through two subsidiaries, Investors Title
Insurance Company (&#147;ITIC&#148;) and Northeast Investors Title Insurance Company
(&#147;NE-ITIC&#148;), which accounted for 94.3% of the Company&#146;s operating revenues in
2008. Through ITIC and NE-ITIC, the Company underwrites land title insurance for
owners and mortgagees as a primary insurer. Title insurance protects against
loss or damage resulting from title defects that affect real property.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>There are
two basic types of title insurance policies - one for the mortgage lender and
one for the real estate owner. A lender often requires property owners to
purchase title insurance to protect its position as a holder of a mortgage loan,
but the lender&#146;s title insurance policy does not protect the property owner. The
property owner has to purchase a separate owner&#146;s title insurance policy to
protect their investment. When real property is conveyed from one party to
another, occasionally there is an undisclosed defect in the title or a mistake
or omission in a prior deed, will or mortgage that may give a third party a
legal claim against such property. If a claim is made against real property,
title insurance provides indemnification against insured defects. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>ITIC issues
title insurance policies through issuing agencies and also directly through home
and branch offices. Issuing agents are typically real estate attorneys or
subsidiaries of community and regional mortgage lending institutions, depending
on local customs and regulations and the Company&#146;s marketing strategy in a
particular territory. The ability to attract and retain issuing agents is a key
determinant of the Company&#146;s growth in premiums written.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Revenues for
this segment result from purchases of new and existing residential and
commercial real estate, refinance activity and certain other types of mortgage
lending such as home equity lines of credit. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Volume is a
factor in the Company&#146;s profitability due to the existence of fixed operating
costs. These expenses will be incurred by the Company regardless of the level of
premiums written. The resulting operating leverage has historically tended to
amplify the impact of changes in volume on the Company&#146;s profitability. The
Company&#146;s profitability also depends, in part, upon its ability to manage its
investment portfolio to maximize investment returns and minimize risks such as
interest rate changes or defaults or impairments of assets.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s volume of title insurance premiums is affected by the overall level of
residential and commercial real estate activity. In turn, real estate activity
is generally affected by a number of factors, including the availability of
mortgage credit, the cost of real estate, consumer confidence, employment and
family income levels and general United States economic conditions. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Another
important factor in the level of residential and commercial real estate activity
is the effect of changes in interest rates. According to data published by
Freddie Mac, the annual average 30-year fixed mortgage interest rates in the
United States were reported to be 6.03%, 6.34% and 6.41% for the years 2008,
2007 and 2006, respectively.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The cyclical
nature of the residential and commercial real estate markets &#150; and consequently,
the land title insurance industry - has historically caused fluctuations in
revenues and profitability, and it is expected to continue to do so in the
future. Additionally, there are seasonal influences in real estate activity and
accordingly in revenue levels for title insurers. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Exchange
Services:</FONT></I><FONT face=serif size=2> The Company&#146;s second business
segment provides customer services in connection with tax-deferred real property
exchanges through its subsidiaries, Investors Title Exchange Corporation
(&#147;ITEC&#148;) and Investors Title Accommodation Corporation (&#147;ITAC&#148;). ITEC serves as
a qualified intermediary in like-kind exchanges of real or personal property
under Section 1031 of the Internal Revenue Code of 1986, as amended. In its role
as qualified intermediary, ITEC coordinates the exchange aspects of the real
estate transaction, and its duties include drafting standard exchange documents,
holding the exchange funds between the sale of the old property and the purchase
of the new property, and accepting the formal identification of the replacement
property within </FONT></P>
<P align=center><FONT face=serif size=2>17</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>the required identification period. ITAC
serves as exchange accommodation titleholder in reverse exchanges. As exchange
accommodation titleholder, ITAC offers a vehicle for accommodating a reverse
exchange when the taxpayer must acquire replacement property before selling the
relinquished property.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Factors that
influence the title insurance industry will also generally affect the exchange
services industry. In addition, the services provided by the Company&#146;s exchange
services segment are pursuant to provisions in the Internal Revenue Code. From
time to time, these exchange provisions are subject to review and changes, which
may negatively affect the demand for tax-deferred exchanges in general, and
consequently the revenues and profitability of the Company&#146;s exchange segment.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Other
Services:</FONT></I><FONT face=serif size=2> Other operating business segments
not required to be reported separately are reported in a category called All
Other. Other services include those offered by the parent holding company and by
its wholly owned subsidiaries, Investors Trust Company (&#147;Investors Trust&#148;),
Investors Capital Management Company (&#147;ICMC&#148;) and Investors Title Management
Services, Inc. (&#147;ITMS&#148;). In conjunction with Investors Trust, ICMC provides
investment management and trust services to individuals, companies, banks and
trusts. ITMS offers consulting services to clients. </FONT></P>
<P align=left><B><FONT face=serif size=2>Business Trends and Recent
Conditions</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
continued downturn in U.S. economic activity and the ongoing decline in real
estate transactions were primary drivers behind the lower premiums written in
the title industry in 2008. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>During the
real estate boom, many lenders loosened their underwriting guidelines,
particularly in the sub prime loan market. These lower underwriting standards,
when combined with new methods of financing loans created a supply of
inexpensive credit which led to a build up in mortgage loans to high risk
borrowers. As a result, there has been a substantial increase in loan defaults
and mortgage foreclosures. Lenders are now returning to stricter loan
underwriting standards, which results in lower overall loan volume. This lower
loan volume has, in turn, resulted in a lower level of title premiums generated
in the marketplace. In addition, the downturn in housing and related mortgage
finance industries has contributed to higher claims costs. An increase in
property foreclosures tends to reveal title defects. A slowing pace of real
estate activity also triggers the likelihood of certain types of title claims,
such as mechanics&#146; liens on newly constructed property. These factors have
historically caused title claims to increase in past real estate market cyclical
downturns and the Company has experienced such increases during the current
downturn. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Historically, activity in real estate markets has varied over the course
of market cycles in response to evolving economic factors. The Company
anticipates that current market conditions, including the sub prime lending
crisis, rising foreclosures, weakening home sales and falling home prices, will
be primary influences on the Company&#146;s operations until some stabilization
occurs. Operating results can vary from year to year based on cyclical market
conditions and do not necessarily indicate the Company&#146;s future operating
results and cash flows.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In addition,
the credit market disruptions in 2008 resulted in an increase in the Company&#146;s
realized capital losses, which are reflected in net income, and unrealized
capital losses, which are reflected in accumulated other comprehensive income.
The carrying amount, which approximates fair value, of investments at December
31, 2008 and 2007 was approximately $115.9 million and $129.0 million,
respectively. </FONT></P>
<P align=left><B><FONT face=serif size=2>Credit Ratings</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>ITIC has
been rated by two independent Fannie Mae-approved financial analysis firms,
Demotech, Inc. and LACE Financial Corporation (&#147;LACE&#148;), with financial stability
ratings of A&#148; (A Double Prime) and B, respectively. NE-ITIC&#146;s financial
stability also has been recognized by Demotech, Inc. and LACE with ratings of A&#148;
(A Double Prime) and A, respectively. According to Demotech, title underwriters
earning a Financial Stability Rating of A&#148; (A Double Prime) possess
</FONT><I><FONT face=serif size=2>Unsurpassed</FONT></I><U><FONT face=serif size=2> </FONT></U><FONT face=serif size=2>financial stability related to
maintaining positive surplus as regards policyholders, regardless of the
severity of a general economic downturn or deterioration in the title insurance
cycle. A LACE rating of &#147;A&#148; or &#147;B&#148; indicates that a title insurance company has
a strong overall financial condition that will allow it to meet its future
claims, and that, generally, the company has good operating earnings, is
well-capitalized and has adequate reserves. </FONT></P>
<P align=center><FONT face=serif size=2>18</FONT></P>
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<PAGE>
<P align=left><B><FONT face=serif size=2>Critical Accounting Estimates and
Policies</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>This
discussion and analysis of the Company&#146;s financial condition and results of
operations is based upon the Company&#146;s accompanying Consolidated Financial
Statements, which have been prepared in accordance with accounting principles
generally accepted in the United States. The Company&#146;s management makes various
estimates and judgments when applying policies affecting the preparation of the
Consolidated Financial Statements. Actual results could differ from those
estimates. Significant accounting policies of the Company are discussed in Note
1 to the accompanying Consolidated Financial Statements. Following are those
accounting estimates and policies considered critical to the Company.
</FONT></P>
<P align=left><I><FONT face=serif size=2>Reserves for Claim
Losses</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The total
reserve for all reported and unreported losses the Company incurred through
December 31, 2008 is represented by the reserve for claims of $39,238,000 on the
accompanying consolidated balance sheet. Of that total, $6,447,345 was reserved
for specific claims, and $32,790,655 was reserved for claims for which the
Company had no notice. The Company&#146;s reserves for claims are established using
estimated amounts required to settle claims for which notice has been received
(reported) and the amount estimated to be required to satisfy incurred claims of
policyholders which may be reported in the future (incurred but not reported,
&#147;IBNR&#148;). </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In
accordance with the requirements of paragraph 17 of Statement of Financial
Accounting Standards No. 60, a provision for estimated future claims payments is
recorded at the time policy revenue is recorded. The Company records the claims
provision as a percentage of premium income. By their nature, title claims can
often be complex, vary greatly in dollar amounts, vary in number due to economic
and market conditions such as an increase in mortgage foreclosures and involve
uncertainties as to ultimate exposure. In addition, some claims may require a
number of years to settle and determine the final liability for indemnity and
loss adjustment expense. The payment experience may extend for more than twenty
years after the issuance of a policy. Events such as fraud, defalcation and
multiple property defects can substantially and unexpectedly cause increases in
estimates of losses. Due to the length of time over which claim payments are
made and regularly occurring changes in underlying economic and market
conditions, these estimates are subject to variability. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Management
considers factors such as the Company&#146;s historical claims experience, case
reserve estimates on reported claims, large claims, actuarial projections and
other relevant factors in determining loss provision rates and the aggregate
recorded expected liability for claims. In establishing reserves, actuarial
projections are compared with recorded reserves to evaluate the adequacy of such
recorded claims reserves and any necessary adjustments are then recorded in
current operations. As the most recent claims experience develops and new
information becomes available, the loss reserve estimate related to prior
periods will change to more accurately reflect updated and improved emerging
data. The Company reflects any adjustments to reserves in the results of
operations in the period in which new information (principally claims
experience) becomes available.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
initially reserves for each known claim based upon an assessment of specific
facts and updates the reserve amount as necessary over the course of
administering each claim. Loss ratios for earlier years tend to be more reliable
than recent policy years as they are more fully developed. In making loss
estimates, management determines a loss provision rate, which it then applies to
net premiums written. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>There are
key assumptions that materially affect the reserve estimates. The Company
assumes the aggregate reported liability for known claims and IBNR, in the
aggregate, will be comparable to its historical claims experience unless
factors, such as loss experience, change significantly. The factors the Company
considered for the recently completed fiscal year did not cause any of its key
assumptions to change from assumptions used in the immediately preceding period.
Also affecting the Company&#146;s assumptions are large losses related to fraud and
defalcation, as these can cause significant variances in loss emergence
patterns. Management defines a large loss as one where incurred losses exceed
$250,000. Due to the small volume of large claims, the long-tail nature of title
insurance claims and the inherent uncertainty in loss emergence patterns, large
claim activity can vary significantly between policy years. The estimated
development of large claims by policy year is therefore subject to significant
changes as experience develops. The Company has generally followed the same
methodology for estimating loss reserves. The loss provision rate is set to
provide for losses on current year policies and to provide for estimated
positive or negative development on prior year loss estimates. </FONT></P>
<P align=center><FONT face=serif size=2>19</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Management
also considers actuarial analyses in evaluating claims reserves. The actuarial
methods used to evaluate reserves are loss development methods, expected loss
methods and Cape Cod methods, all of which are accepted actuarial methods for
estimating ultimate losses and, therefore, loss reserves. In the loss
development method, each policy year&#146;s paid or incurred losses are projected to
an &#147;ultimate&#148; level using loss development factors. In the Cape Cod method,
expected losses for one policy year are estimated based on the loss results for
the other policy years, trended to the level of the policy year being estimated.
Expected loss methods produce more stable ultimate loss estimates than do loss
development methods, which are more responsive to the current loss data. The
Cape Cod method, a special case of the Bornhuetter-Ferguson method, blends the
results of the loss development and expected loss methods. For more recent
policy years, more weight is given to the results of the expected loss methods;
for older policy years, more weight is given to the loss development method
results.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The key
actuarial assumptions are principally loss development factors and expected loss
ratios. The selected loss development factors are based on a combination of the
Company&#146;s historical loss experience and title industry loss experience.
Expected loss ratios are estimated for each policy year based on the Company&#146;s
own experience and title industry loss ratios. When updated data is incorporated
into the actuarial models, the resulting loss development factors and expected
loss ratios will likely change from the prior values. Changes in these values
from 2006 through 2008 have been the result of actual Company and industry
experience during the calendar year and not changes in assumptions.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>If one or
more of the variables or assumptions used changed such that the Company&#146;s
recorded loss ratio, or loss provision as a percentage of net title premiums,
increased or decreased two loss ratio percentage points, the impact on after-tax
income for the year ended December 31, 2008, would be as follows. Company
management believes that using a sensitivity of two loss percentage points for
the loss ratio provides a reasonable benchmark for analysis of the calendar year
loss provision of the Company based on historical loss ratios by
year.</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>Increase in Loss Ratio of two percentage points</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(840,000</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>Decrease in Loss
      Ratio of two percentage points</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>840,000</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Despite the
variability of such estimates, management believes based on historical claims
experience and actuarial analysis that the reserves are adequate to cover claim
losses resulting from pending and future claims for policies issued through
December 31, 2008. The ultimate settlement of policy and contract claims will
likely vary from the reserve estimates included in the Company&#146;s consolidated
financial statements. The Company continually reviews and adjusts its reserve
estimates to reflect its loss experience and any new information that becomes
available. There are no known claims that are expected to have a materially
adverse effect on the Company&#146;s financial position or operating results.
</FONT></P>
<P align=left><I><FONT face=serif size=2>Premiums Written and Commissions to
Agents</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Generally,
title insurance premiums are recorded and recognized as revenue at the time of
closing of the related transaction as the earnings process is then considered
complete. Policies or commitments are issued upon receipt of final certificates
or preliminary reports with respect to titles. Title insurance commissions
earned by the Company&#146;s agents are recognized as expense concurrently with
premium recognition.</FONT></P>
<P align=left><I><FONT face=serif size=2>Valuation and Impairment of Investments
in Securities</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Securities
for which the Company has the intent and ability to hold to maturity are
classified as held-to-maturity and are reported at cost, adjusted for
amortization of premiums or accretion of discounts and other-than-temporary
declines in fair value. Securities held principally for resale in the near term
are classified as trading securities and recorded at fair values. Realized and
unrealized gains and losses on trading securities are included in other income.
Securities not classified as either trading or held-to-maturity are classified
as available-for-sale and reported at fair value, adjusted for
other-than-temporary declines in fair value, with unrealized gains and losses
reported as accumulated other comprehensive income. Securities are regularly
reviewed for differences between the cost and estimated fair value of each
security for factors that may indicate that a decline in fair value is
other-than-temporary. Some factors considered in evaluating whether or not a
decline in fair value is other-than-temporary include the duration and extent to
which the fair value has been less than cost and the Company&#146;s ability and
intent to retain the investment for a period of time sufficient to allow for a
recovery in value. These factors are reviewed quarterly and any material
degradation in the prospect for recovery will be considered in the
other-than-temporary impairment </FONT></P>
<P align=center><FONT face=serif size=2>20</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>analysis. Such reviews are inherently
uncertain and the value of the investment may not fully recover or may decline
in future periods resulting in a realized loss. The fair values of the majority
of the Company&#146;s investments are based on quoted market prices from independent
pricing services. Over the past several months, the Company has seen credit
market disruption as the result of illiquid markets and widening spreads.
Auction rate securities, where quoted market prices are not available and the
Company relies on discounted cash flow models for valuation purposes, have been
particularly affected due to their thinly traded markets. All of the Company&#146;s
auction rate securities are rated investment grade and are substantially
guaranteed by government-sponsored enterprises. Management believes these values
reasonably reflect the fair value of these securities, but the key assumptions
do involve qualitative inputs. Realized gains and losses are determined on the
specific identification method. </FONT></P>
<P align=left><I><FONT face=serif size=2>Deferred Tax Asset</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
recorded net deferred tax assets at December 31, 2008 and 2007 related primarily
to reserves for claims, allowance for doubtful accounts and employee benefits.
Based upon the Company&#146;s historical results of operations, the existing
financial condition of the Company and management&#146;s assessment of all other
available information, management believes that it is more likely than not that
the benefit of these assets will be realized. </FONT></P>
<P align=left><B><FONT face=serif size=2>Results of Operations</FONT></B></P>
<P align=left><B><FONT face=serif size=2>Operating Revenues</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Operating
revenues include net premiums written plus other fee income and exchange
services segment income. Investment income and realized investment gains and
losses are not included in operating revenues and are discussed separately
following operating revenues. Following is a summary of the Company&#146;s operating
revenues. Intersegment eliminations have been netted with each segment;
therefore, the individual segment amounts will not agree to Note 13 in the
accompanying Consolidated Financial Statements.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="46%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="17%" colSpan=5><B><FONT face=serif size=2>2008</FONT></B> </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="17%" colSpan=5><FONT face=serif size=2>2007</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="17%" colSpan=5><FONT face=serif size=2>2006</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="46%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; Title Insurance</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><B><FONT face=serif size=2>65,507,644</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>94.3</FONT></B> </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>%</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>71,827,793</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>91.1</FONT> </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>71,733,763</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>89.9</FONT> </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="46%"><B><FONT face=serif size=2>&nbsp;
      Exchange Services</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="7%"><B><FONT face=serif size=2>1,163,569</FONT></B> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>1.7</FONT></B> </TD>
    <TD noWrap align=left width="3%"><B><FONT face=serif size=2>%</FONT></B>
    </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>4,340,062</FONT>
    </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>5.5</FONT> </TD>
    <TD noWrap align=left width="3%"><FONT face=serif size=2>%</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>5,980,027</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>7.5</FONT> </TD>
    <TD noWrap align=left width="3%"><FONT face=serif size=2>%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="46%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; All Other</FONT></B> </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=right width="7%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,815,689</FONT></B> </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="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>4.0</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>%</FONT></B> </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;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>2,655,383</FONT> </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="5%" bgColor=#c0c0c0><FONT face=serif size=2>3.4</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>%</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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>2,070,533</FONT> </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="5%" bgColor=#c0c0c0><FONT face=serif size=2>2.6</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="46%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="7%"><FONT face=serif size=2><B>&nbsp;&nbsp; 69,486,902</B></FONT>
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>100</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="3%"><B><FONT face=serif size=2>%</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="7%"><FONT face=serif><FONT size=2><STRONG>&nbsp;&nbsp;
      </STRONG>78,823,238</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><FONT face=serif size=2>100</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="3%"><FONT face=serif size=2>%</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="7%"><FONT face=serif><FONT size=2><STRONG>&nbsp;&nbsp;
      </STRONG>79,784,323</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><FONT face=serif size=2>100</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="3%"><FONT face=serif size=2>%</FONT>&nbsp;&nbsp;
</TD></TR></TABLE><BR>
<P align=left><I><FONT face=serif size=2>Title Insurance</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Net
Premiums: </FONT></I><FONT face=serif size=2>Net premiums written decreased 9.0%
in 2008 from 2007 and decreased 0.3% in 2007 from 2006. During 2008, the
decrease was primarily due to the weak housing market and ongoing general
declines in real estate activity and volatility and disruption of financial
markets. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Policies
and Commitments:</FONT></I><FONT face=serif size=2> The volume of business
decreased in 2008, as 200,791 policies and commitments were issued in 2008,
which is a decrease of 12.4% compared with 229,329 policies and commitments
issued in 2007. In 2007, policies and commitments issued declined 7.7% compared
with 248,341 policies and commitments issued in 2006.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Following is a breakdown between
branch and agency premiums for the years ended December 31:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="14%"></TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=center width="83%" colSpan=14><FONT face=serif size=2>Twelve Months Ended December, 31</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="14%">&nbsp;</TD>
    <TD noWrap align=left width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%"><B><FONT face=serif size=2>%</FONT></B> </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="14%" colSpan=2><FONT face=serif size=2>2007</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%"><FONT face=serif size=2>%</FONT> </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%"><FONT face=serif size=2>%</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="14%" bgColor=#c0c0c0><FONT face=serif size=2>Branch</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="11%" bgColor=#c0c0c0><B><FONT face=serif size=2>24,312,013</FONT></B> </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="11%" bgColor=#c0c0c0><B><FONT face=serif size=2>38</FONT></B> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="12%" bgColor=#c0c0c0><FONT face=serif size=2>30,144,691</FONT> </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="11%" bgColor=#c0c0c0><FONT face=serif size=2>43</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="11%" bgColor=#c0c0c0><FONT face=serif size=2>32,396,798</FONT> </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="11%" bgColor=#c0c0c0><FONT face=serif size=2>46</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="14%"><FONT face=serif size=2>Agency</FONT>
</TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><B><FONT face=serif size=2>39,350,174</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%"><B><FONT face=serif size=2>62</FONT></B> </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="12%"><FONT face=serif size=2>39,839,298</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%"><FONT face=serif size=2>57</FONT> </TD>
    <TD noWrap align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face=serif size=2>37,799,669</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%"><FONT face=serif size=2>54</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="14%" bgColor=#c0c0c0><FONT face=serif size=2>Total</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;
      <STRONG>$</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp;
      63,662,187</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="11%" bgColor=#c0c0c0><B><FONT face=serif size=2>100</FONT></B> </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; $</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="12%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp;&nbsp;
      </STRONG>69,983,989</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="11%" bgColor=#c0c0c0><FONT face=serif size=2>100</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; $</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp;&nbsp;
      </STRONG>70,196,467</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="11%" bgColor=#c0c0c0><FONT face=serif size=2>100</FONT>&nbsp;
  </TD></TR></TABLE></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Title
insurance premiums decreased 9.0% to $63,662,187 in 2008 compared with 2007. The
decrease in 2008 was made up of a $5,832,678 decrease in branch premiums and a
$489,124 decrease in premiums from agency operations.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Branch
Office Net Premiums:</FONT></I><FONT face=serif size=2> Branch office net
premiums written as a percentage of total net premiums written were 38.2%,
43.1%, and 46.1% in 2008, 2007 and 2006, respectively. The decreases since 2006
are due to an expansion of the Company&#146;s agency relationships. Net premiums
written from branch operations decreased 19.3% </FONT></P>
<P align=center><FONT face=serif size=2>21</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>in 2008 compared with 2007 and 7.0% in
2007 compared with 2006. The decrease in 2008 reflects the economic downturn. Of
the Company&#146;s 29 branch locations that underwrite title insurance policies, 27
are located in North Carolina, and as a result, branch premiums written
primarily represent North Carolina business. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Agency
Net Premiums:</FONT></I><FONT face=serif size=2> Agency net premiums written as
a percentage of total net premiums written were 61.8%, 56.9% and 53.9% in 2008,
2007 and 2006, respectively. Net premiums written from agency operations
slightly decreased 1.2% in 2008 compared with 2007 and increased 5.4% in 2007
compared with 2006. The increase in 2007 is primarily due to additional business
written by the Company&#146;s agencies. The decrease in agency net premiums written
in 2008 can be attributed to the general slowdown in real estate activity,
offset by increasing agency relationships.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Following is
a schedule of net premiums written in all states where the Company&#146;s two
insurance subsidiaries ITIC and NE-ITIC currently underwrite title
insurance:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="55%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="66%"><FONT face=serif size=2>State</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </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=serif size=2>2007</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=serif size=2>2006</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>Illinois</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,140,440</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><FONT face=serif size=2>1,653,518</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><FONT face=serif size=2>1,115,890</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><FONT face=serif size=2>Kentucky</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=serif size=2>2,957,744</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>2,563,039</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>2,292,194</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>Michigan</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,326,904</FONT></B> </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="9%" bgColor=#c0c0c0><FONT face=serif size=2>3,073,006</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="9%" bgColor=#c0c0c0><FONT face=serif size=2>3,488,984</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><FONT face=serif size=2>New
      York</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=serif size=2>2,106,033</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>2,412,625</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>2,436,563</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>North Carolina</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><B><FONT face=serif size=2>30,527,923</FONT></B> </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="9%" bgColor=#c0c0c0><FONT face=serif size=2>34,544,366</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="9%" bgColor=#c0c0c0><FONT face=serif size=2>35,200,769</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><FONT face=serif size=2>Pennsylvania</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=serif size=2>1,762,444</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>1,512,745</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>1,472,615</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>South Carolina</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><B><FONT face=serif size=2>7,556,153</FONT></B> </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="9%" bgColor=#c0c0c0><FONT face=serif size=2>7,637,330</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="9%" bgColor=#c0c0c0><FONT face=serif size=2>7,177,871</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><FONT face=serif size=2>Tennessee</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=serif size=2>2,063,411</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>2,599,686</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>2,466,956</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>Virginia</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><B><FONT face=serif size=2>5,789,337</FONT></B> </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="9%" bgColor=#c0c0c0><FONT face=serif size=2>6,121,746</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="9%" bgColor=#c0c0c0><FONT face=serif size=2>6,734,698</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><FONT face=serif size=2>West
      Virginia</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=serif size=2>2,077,603</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>2,029,885</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>2,132,330</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>Other</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=right width="9%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,462,391</FONT></B> </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; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="9%" bgColor=#c0c0c0><FONT face=serif size=2>6,057,404</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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="9%" bgColor=#c0c0c0><FONT face=serif size=2>6,097,021</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%"><FONT face=serif size=2>Direct
      Premiums</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=serif size=2>63,770,383</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>70,205,350</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>70,615,891</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>Reinsurance Assumed</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><B><FONT face=serif size=2>166,893</FONT></B> </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="9%" bgColor=#c0c0c0><FONT face=serif size=2>42,816</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="9%" bgColor=#c0c0c0><FONT face=serif size=2>22,158</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="66%"><FONT face=serif size=2>Reinsurance Ceded</FONT>&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="9%"><B><FONT face=serif size=2>(275,089)</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="9%"><FONT face=serif size=2>(264,177)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="9%"><FONT face=serif size=2>(441,582)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="66%" bgColor=#c0c0c0><FONT face=serif size=2>Net Premiums Written</FONT>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="9%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;<STRONG>63,662,187</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="9%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;69,983,989</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="9%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;70,196,467</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR></TABLE><BR>
<P align=left><I><FONT face=serif size=2>Exchange Services</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Operating
revenues from the Company&#146;s two subsidiaries that provide tax-deferred exchange
services (ITEC and ITAC) decreased 73.2% from 2007 to 2008 and 27.4% from 2006
to 2007. Demand for tax-deferred exchange services has declined significantly
due to weak appreciation or actual declines in value for many types of
investment property. The decline in 2008 and 2007 revenues compared with 2006
resulted primarily from decreases in transaction volume and related lower levels
of interest-spread income earned on exchange fund deposits held by the Company
due to declines in the average balances of deposits held during 2008.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In July
2008, the IRS finalized its proposed regulations regarding treatment of funds
held by qualified intermediaries. As originally proposed, these rules would have
negatively affected the ability of qualified intermediaries to retain a portion
of the interest income earned on exchange fund deposits held by the Company
during exchange transactions, which could have had a material adverse effect
upon the profitability of the Company&#146;s exchange segment. As adopted however,
the new regulations apply only to individual exchange account balances over $2
million. The regulations have only recently been adopted, and therefore the
Company has had only limited experience under this new regime; it is possible
that these new regulations may have unanticipated consequences on the revenues
and profitability of the Company&#146;s exchange services segment. </FONT></P>
<P align=center><FONT face=serif size=2>22</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><I><FONT face=serif size=2>Other Revenues</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other
revenues primarily include investment management fee income, income related to
the Company&#146;s equity method investments and agency service fees, as well as
search fee and other ancillary fees. Other revenues increased in 2008 and 2007
compared with 2006 primarily due to increases from investment management fee
income generated by the Company&#146;s trust division and equity in earnings of
unconsolidated affiliates. Other revenues also increased in 2007 compared with
2006 due to increases in search fee income. </FONT></P>
<P align=left><B><FONT face=serif size=2>Cyclicality and
Seasonality</FONT></B></P>
<P align=left><I><FONT face=serif size=2>Title Insurance</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Title
insurance premiums are closely related to the level of real estate activity and
the average price of real estate sales. The availability of funds to finance
purchases directly affects real estate sales. Home sales and mortgage lending
are highly cyclical businesses. Other factors include mortgage interest rates,
consumer confidence, economic conditions, supply and demand, and family income
levels. Historically, residential real estate activity has been generally slower
in the winter because fewer real estate transactions occur, while the spring and
summer are more active. Refinance activity is generally less seasonal, but it is
subject to interest rate volatility. Fluctuations in mortgage interest rates, as
well as other economic factors, can cause shifts in real estate activity outside
of the normal seasonal pattern. </FONT></P>
<P align=left><I><FONT face=serif size=2>Exchange Services</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Seasonal
factors affecting the level of real estate activity and the volume of title
premiums written will also affect the demand for exchange services. Slowing real
estate sales led to a decline in average balances of deposits held during the
year.</FONT></P>
<P align=left><B><FONT face=serif size=2>Nonoperating Revenues</FONT></B></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Investment income and realized gains
and losses from investments are included in nonoperating revenues.</FONT></P>
<P align=left><B><FONT face=serif size=2>Investment Income</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
derives a substantial portion of its income from investments in bonds (municipal
and corporate) and equity securities. The Company&#146;s title insurance subsidiaries
are required by statute to maintain minimum levels of investments in order to
protect the interests of policyholders. Bonds totaling approximately $6,540,000
and $6,471,000 at December 31, 2008 and 2007, respectively, are deposited with
the insurance departments of the states in which business is conducted. In
formulating its investment strategy, the Company has emphasized after-tax
income. Investments in marketable securities have increased from Company
profits. The investments are primarily in fixed maturity securities and, to a
lesser extent, equity securities. The effective maturity of the majority of the
fixed income investments is within 15 years.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As new funds
become available, they are invested in accordance with the Company&#146;s investment
policy and corporate goals. Securities purchased may include a combination of
taxable fixed-income securities, tax-exempt securities and equities. The Company
strives to maintain a high quality investment portfolio. Interest and investment
income levels are primarily a function of general market performance, interest
rates and the amount of cash available for investment. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Investment
income was $4,558,735 in 2008 compared with $5,197,178 in 2007 and $4,326,335 in
2006. Investment income decreased 12.3% from 2007 to 2008 and increased 20.1%
from 2006 to 2007. The decline in investment income in 2008 was due to a decline
in the average investment portfolio and lower levels of interest earned on
short-term funds, as the capital markets experienced significant distress in the
second half of 2008. The increase in 2007 was primarily attributable to
increases in the average investment portfolio balance and higher rates of
interest earned on short-term investments. See Note 3 in the accompanying
Consolidated Financial Statements for the major categories of investments,
scheduled maturities, amortized cost, fair values of investment securities and
earnings by security category.</FONT></P>
<P align=center><FONT face=serif size=2>23</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>Net Realized Gain (Loss) on
Investments</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s investment policies have been designed to balance multiple investment
goals, including, to assure a stable source of income from interest and
dividends, protect capital, provide sufficient liquidity to meet insurance
underwriting and other obligations as they become payable in the future and
capital appreciation. Dispositions of equity securities at a realized gain or
loss reflect such factors as industry sector allocation decisions, ongoing
assessments of issuers&#146; business prospects and tax planning considerations.
Additionally, the amount of net realized investment gains and losses are
affected by assessments of securities&#146; valuation for other-than-temporary
impairment. As a result of the interaction of these factors and considerations,
net realized investment gains or losses can vary significantly from period to
period. The Company generally intends to hold securities in unrealized loss
positions until they mature or recover. However, the Company does sell
securities under certain circumstances, such as when it has evidence of a
significant deterioration in the issuer&#146;s creditworthiness.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net realized
loss on investments totaled $2,922,376 in 2008. Net realized gain on the sales
of investment securities totaled $921,871 and $551,058 in 2007 and 2006,
respectively. The 2008 net loss included impairment charges totaling $1,226,932
on certain equity and fixed income securities in the Company&#146;s portfolio that
were deemed to be other than temporarily impaired and net realized losses on
sales of investments of $1,695,444. Management has determined that the
unrealized losses from remaining fixed income and equity securities at December
31, 2008 are temporary in nature. The net realized gains in 2007 and 2006
resulted primarily from the sale of equity securities and other investments in
the Company&#146;s investment portfolio.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
securities in the Company&#146;s portfolio are subject to economic conditions and
market risks. The Company considers relevant facts and circumstances in
evaluating whether a credit or interest-rate related impairment of a security is
other than temporary. Relevant facts and circumstances include the extent and
length of time the fair value of an investment has been below cost. Factors
considered in determining whether a loss is temporary include the length of time
and extent to which fair value has been below cost, the financial condition and
prospects of the issuer (including credit ratings and analyst reports) and
macro-economic changes. Reviews of the values of securities are inherently
uncertain and the value of the investment may not fully recover, or may decline
in future periods resulting in a realized loss.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>There are a
number of risks and uncertainties inherent in the process of monitoring
impairments and determining if an impairment is other than temporary. These
risks and uncertainties include the risk that the economic outlook will be worse
than expected or have more of an impact on the issuer than anticipated, the risk
that the Company&#146;s assessment of an issuer&#146;s ability to meet all of its
contractual obligations will change based on changes in the characteristics of
that issuer, the risk that information obtained by the Company or changes in
other facts and circumstances leads management to change its intent to hold the
security to maturity or until it recovers in value and the risk that management
is making decisions based on misstated information in the financial statements
provided by issuers.</FONT></P>
<P align=left><B><FONT face=serif size=2>Expenses</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s operating expenses consist primarily of commissions to agents,
salaries, employee benefits and payroll taxes, provisions for claims and office
occupancy and operations. Operating expenses in 2008 increased 1.7% compared
with 2007 and 2007 increased 8.6% compared with 2006 primarily due to increases
in the provision for claims. Partially offsetting these increases in 2008 were
decreases in professional and contract labor fees, commissions to agents and
salaries, employee benefits and payroll taxes. Following is a summary of the
Company&#146;s operating expenses. Intersegment eliminations have been netted with
each segment; therefore, the individual segment amounts will not agree to Note
13 in the accompanying Consolidated Financial Statements.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="47%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="17%" colSpan=5><B><FONT face=serif size=2>2008</FONT></B> </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="17%" colSpan=5><FONT face=serif size=2>2007</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="17%" colSpan=5><FONT face=serif size=2>2006</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0>&nbsp;&nbsp;<B><FONT face=serif size=2>Title Insurance</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><B><FONT face=serif size=2>69,226,504</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>93.1</FONT></B> </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>%</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>68,168,856</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>93.2</FONT> </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>62,962,703</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>93.5</FONT> </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp;&nbsp;<B><FONT face=serif size=2>Exchange Services</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><B><FONT face=serif size=2>1,160,070</FONT></B> </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>1.6</FONT></B> </TD>
    <TD noWrap align=left width="3%"><B><FONT face=serif size=2>%</FONT></B>&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>1,480,094</FONT>
    </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>2.0</FONT> </TD>
    <TD noWrap align=left width="3%"><FONT face=serif size=2>%</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=serif size=2>1,346,743</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>2.0</FONT> </TD>
    <TD noWrap align=left width="3%"><FONT face=serif size=2>%</FONT>&nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="47%" bgColor=#c0c0c0>&nbsp;&nbsp;<B><FONT face=serif size=2>All
      Other</FONT></B>&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=right width="7%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,953,486</FONT></B> </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="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>5.3</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>%</FONT></B>&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; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>3,469,002</FONT> </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="5%" bgColor=#c0c0c0><FONT face=serif size=2>4.8</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>%</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>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" bgColor=#c0c0c0><FONT face=serif size=2>3,022,836</FONT> </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="5%" bgColor=#c0c0c0><FONT face=serif size=2>4.5</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>%</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="47%">&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="7%"><B><FONT face=serif size=2>&nbsp;&nbsp; 74,340,060</FONT></B>
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>100</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="3%"><B><FONT face=serif size=2>%</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="7%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp;
      </STRONG>73,117,952</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><FONT face=serif size=2>100</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="3%"><FONT face=serif size=2>%</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="7%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp;
      </STRONG>67,332,282</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><FONT face=serif size=2>100</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="3%"><FONT face=serif size=2>%</FONT>&nbsp;&nbsp;
</TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>On a
combined basis, loss margin was (1.7%) in 2008 and profit margins were 9.9% and
15.6% in 2007 and 2006, respectively.</FONT></P>
<P align=center><FONT face=serif size=2>24</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><I><FONT face=serif size=2>Title Insurance</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>(Loss)
Profit Margin: </FONT></I><FONT face=serif size=2>The Company&#146;s title insurance
profit margin varies according to a number of factors, including the volume and
type of real estate activity. (Loss) profit margins for the title insurance
segment were (1.4%), 8.6% and 12.7% in 2008, 2007 and 2006, respectively. The net
margins for 2008 and 2007 were primarily affected by the increase in the
provision for claims.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Commissions:</FONT></I><FONT face=serif size=2> Agent commissions
represent the portion of premiums retained by agents pursuant to the terms of
their respective agency contracts. Commissions to agents decreased 2.5% from
2007 to 2008 primarily due to decreased premiums from agency operations in 2008
and increased 6.4% from 2006 to 2007 primarily due to an increasing percentage
of premiums originating from agency operations in 2007. Commission expense as a
percentage of net premiums written by agents was 70.4%, 71.3% and 70.6% in 2008,
2007 and 2006, respectively. Commission rates vary geographically.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Provisions for Claims:</FONT></I><FONT face=serif size=2> The provision
for claims as a percentage of net premiums written was 23.9% in 2008, 14.5% in
2007 and 10.5% in 2006. The change in the loss provision estimate for calendar
year 2008 compared with 2007 resulted from unfavorable experience for policy
year 2008 primarily due to two large claims related to fraud and one large
mechanic&#146;s lien claim totaling in the aggregate approximately $6.8 million. In
addition, the Company incurred unfavorable experience during 2008 for claims
related to policy year 2006 totaling approximately $1.9 million. Partially
offsetting the change in the loss provision estimate for calendar year 2008 was
favorable experience for policy year 2007 because of a reduction in large claim
activity. The change in estimate for calendar year 2007 compared with 2006
resulted primarily from policy year 2006, which incurred two large claims
resulting from mortgage fraud and theft. The additional loss provision as a
result of these two claims, in addition to the Company&#146;s expected loss
provision, was approximately $2.3 million. The increase in the loss provision in
2008 from the 2007 level resulted in approximately $6.0 million more in reserves
than would have been recorded at the lower 2007 level. If material occurrences
of mortgage-related fraud, mechanic lien claims and other similar types of
claims continue, the Company&#146;s ultimate loss estimates for recent policy years
could increase.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Lower than
expected loss payment experience was the primary reason for the Company&#146;s loss
provision rate in 2006. In 2006, there was favorable experience primarily
because of a reduction in large claim activity for policy year 2005. Calendar
year 2006 also included an increase for policy year 2006 due to claims activity
late in the calendar year. Management considers the loss provision ratios for
2008, 2007 and 2006 to be appropriate given the small volume of large claims,
the long-tail nature of title insurance claims and the inherent uncertainty in
title insurance loss emergence patterns.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
provision for claims reflects actual payments of claims, net of recovery
amounts, plus adjustments to the specific and incurred but not reported claims
reserves, the latter of which are actuarially determined based on historical
claims experience. Payments of claims, net of recoveries, were $12,943,637,
$10,065,719 and $5,356,211 in 2008, 2007 and 2006, respectively.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Reserves
for Claims:</FONT></I><FONT face=serif size=2> At December 31, 2008, the total
reserves for claims were $39,238,000. Of that total, $6,447,345 was reserved for
specific claims, and $32,790,655 was reserved for claims for which the Company
had no notice. Because of the uncertainty of future claims, changes in economic
conditions, and the fact that many claims do not materialize for several years,
reserve estimates are subject to variability. Changes in the expected liability
for claims for prior periods reflect the uncertainty of the claim environment,
as well as the limited predicting power of historical data. The Company
continually updates and refines its reserve estimates as current experience
develops and credible data emerges. Adjustments may be required as new
information develops which often varies from past experience.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Movements in
the reserves related to prior periods were primarily the result of changes to
estimates to better reflect the latest reported loss data, rather than as a
result of material changes to underlying key actuarial assumptions or
methodologies. Such changes include payments on claims closing during the year,
new details that emerge on still-open cases that cause claims adjusters to
increase or decrease the case reserve and the impact that these types of changes
have on the Company&#146;s total loss provision.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Salaries,
Employee Benefits and Payroll Taxes:</FONT></I><FONT face=serif size=2>
Salaries, employee benefits and payroll taxes were $19,605,500, $20,819,094 and
$20,036,079 for 2008, 2007 and 2006, respectively. Salaries and related costs
decreased $1.2 million, or 5.8% in 2008 compared with 2007. The decrease in 2008
was primarily due to a decline in bonuses and amounts accrued under employment
agreements. The increase in these costs in 2007 was primarily attributable
to</FONT></P>
<P align=center><FONT face=serif size=2>25</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>salary increases and additional personnel
costs related to staff hired by Investors Trust Company. On a consolidated
basis, salaries and employee benefits as a percentage of total revenues were
27.6%, 24.5% and 23.7% in 2008, 2007 and 2006, respectively. The increase in
salaries and employee benefits as a percentage of total revenues in 2008 was
primarily due to declining revenues outpacing cost reductions. The title
insurance segment&#146;s total salaries and employee benefits accounted for 83.8%,
84.9% and 85.3% of total salaries for 2008, 2007, and 2006,
respectively.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><EM>Office Occupancy and
Operations:</EM></FONT><FONT face=serif size=2> Overall office occupancy and
operations as a percentage of total revenues was 7.2%, 6.6% and 6.6% in 2008,
2007 and 2006, respectively. The title insurance segment&#146;s total office
occupancy and operations expense accounted for 88.6%, 90.2% and 90.9% in 2008,
2007 and 2006, respectively, of total office occupancy and operations
expense.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Premium
and Retaliatory Taxes:</FONT></I><FONT face=serif size=2> Title insurance
companies are generally not subject to state income or franchise taxes. However,
in most states they are subject to premium and retaliatory taxes, as defined by
statute. Tax rates and bases vary from state to state. Premium and retaliatory
taxes as a percentage of net premiums written were 2.0%, 2.1% and 1.9% for the
years ended December 31, 2008, 2007 and 2006, respectively.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Professional and Contract Labor Fees:</FONT></I><FONT face=serif size=2>
Professional and contract labor fees for 2008 decreased $1.1 million compared
with 2007 primarily due to decreases in contract labor fees incurred, associated
with investments in infrastructure and technology in 2007.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Other
Expenses: </FONT></I><FONT face=serif size=2>Other operating expenses primarily
include miscellaneous operating expenses of the trust division and other
miscellaneous expenses of the title segment. These amounts typically fluctuate
in relation with transaction volume of the title segment and the trust
division.</FONT></P>
<P align=left><I><FONT face=serif size=2>Exchange Services</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The exchange
services segment&#146;s total operating expenses as a percentage of the Company&#146;s
total expenses were 1.6%, 2.0% and 2.0% for 2008, 2007 and 2006, respectively.
The principal operating expenses of this segment are salaries, employee benefits
and payroll taxes.</FONT></P>
<P align=left><B><FONT face=serif size=2>Income Taxes</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The benefit
for income taxes was $2,034,000 for the year ended December 31, 2008. The income
tax benefit in 2008 was a result of reflecting a lower effective tax rate,
primarily due to an increase in the proportion of tax-exempt investment income
to pre-tax loss. Income tax (benefit) expense as a percentage of (loss) earnings
before income taxes was 63.2%, 28.9% and 23.9% for the years ended December 31,
2008, 2007 and 2006, respectively.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>During the
fourth quarter of 2007, management discovered certain understatements in the
provision for income taxes in its financial statements in 2006 and the first
three quarters of 2007 as a result of certain taxable municipal bonds that had
been previously misclassified as tax-exempt by the Company&#146;s custodian bank. The
additional amount of the increase in income taxes in the fourth quarter related
to the misclassification was approximately $425,000 related to the 2006 tax year
and approximately $325,000 related to the first three quarters of
2007.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
monitors the realizability of recognized, impairment and unrecognized losses
recorded through December 31, 2008. The Company believes it is more likely than
not that the tax benefits associated with those losses will be realized.
However, this determination is a judgment and could be impacted by further
market fluctuations. Information regarding the components of the income tax
expense and items included in the reconciliation of the effective rate with the
federal statutory rate can be found in Note 8 to the accompanying Consolidated
Financial Statements.</FONT></P>
<P align=left><B><FONT face=serif size=2>Net (Loss) Income</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
reported net loss for 2008 of $1,182,799, or $0.50 per share on a diluted basis.
The Company reported net income for 2007 of $8,402,335, or $3.35 per share on a
diluted basis, compared to $13,185,434, or $5.14 per share on a diluted basis,
for 2006.</FONT></P>
<P align=center><FONT face=serif size=2>26</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>Liquidity and Capital
Resources</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Liquidity:</FONT></I><FONT face=serif size=2> Although cash flow
generated from operating activities declined from 2007 to 2008, primarily due to
the decrease in net income between periods, cash and cash equivalents at year
end increased 72% to approximately $5.2 million, due mainly to significant cash
provided by investing activities for 2008. The net increase in cash provided by
investing activities for 2008 was, in turn, due primarily to significantly
reduced purchases of investment securities. The Company&#146;s ability to offset
reductions in cash provided by operations by reducing securities investments,
however, is limited by the need to maintain adequate financial condition,
capital and claims-paying ability.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Due to the
Company&#146;s historical consistent ability to generate positive cash flows from its
consolidated operations and investment income, management believes that funds
generated from operations will enable the Company to adequately meet its current
operating needs for the foreseeable future. However, there can be no assurance
that future experience will be similar to historic experience, since they are
influenced by such factors as the interest rate environment, the Company&#146;s
claims-paying ability and its financial strength ratings. The Company is unaware
of any trend that is likely to result in material adverse liquidity changes, but
continually assesses its capital allocation strategy. The Company&#146;s cash
requirements include general operating expenses, income taxes, capital
expenditures, dividends on its common stock declared by the Board of Directors
and share repurchases. In addition to operational liquidity, the Company
maintains a high degree of liquidity within its investment portfolio in the form
of short-term investments and other readily marketable securities.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The majority
of the Company&#146;s investment portfolio is considered as available-for-sale. The
Company reviews the status of each of its securities quarterly to determine
whether an other-than-temporary impairment has occurred. The Company&#146;s criteria
generally includes the degree to which the fair value of a security is less than
80% of its amortized cost and the investment grade of the security, as well as
how long the security has been in an unrealized loss position. The Company&#146;s
securities that have had an unrealized loss in excess of one year are primarily
investment-grade, long-term bonds and equities that the Company has the ability
and intent to hold until a recovery of fair value, which may be until maturity
for fixed income securities.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Cash
Flows:</FONT></I><FONT face=serif size=2> Net cash flows provided by operating
activities were $1,309,473, $10,354,960 and $18,554,831 in 2008, 2007 and 2006,
respectively. Cash flows from operations have been the primary source of
financing for expanding operations, additions to property and equipment,
dividends to shareholders, and other requirements. The net decrease in cash flow
from operations in 2008 and 2007 was primarily the result of the decrease in net
income.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
principal non-operating use of cash and cash equivalents in 2008 was for
repurchases of common stock. The principal non-operating uses of cash and cash
equivalents for the two-year period ended December 31, 2007 were primarily for
additions to the investment portfolio and, to a lesser extent, repurchases of
common stock and capital expenditures. The net effect of all activities on total
cash and cash equivalents was an increase of $2,154,284 for 2008, and decreases
of $457,670 for 2007 and $11,150,049 for 2006. As of December 31, 2008, the
Company held cash and cash equivalents of $5,155,046, short-term investments of
$15,725,513 and fixed maturities securities of $88,160,181.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As noted
previously, the Company&#146;s operating results and cash flows are heavily dependent
on the real estate market, particularly in the title insurance segment. The
Company&#146;s business has certain fixed costs such as personnel, and changes in the
real estate market are monitored closely and operating expenses such as staffing
levels are managed and adjusted accordingly. The Company believes that its
significant working capital position and management of operating expenses, along
with its product diversification efforts will aid its ability to manage cash
resources through declines in the real estate market.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Payment
of Dividends:</FONT></I><FONT face=serif size=2> The Company believes that all
anticipated cash requirements for current operations will be met from internally
generated funds, through cash dividends and distributions from subsidiaries and
cash generated by investment securities. The Company&#146;s significant sources of
funds are dividends and distributions from its subsidiaries. The holding company
receives cash from its subsidiaries in the form of dividends and as
reimbursements for operating and other administrative expenses. The
reimbursements are executed within the guidelines of management agreements
between the holding company and its subsidiaries. The Company&#146;s ability to pay
dividends and operating expenses is dependent on funds received from the
insurance subsidiaries, which are subject to regulation in the states in which
they do business. As of December 31, 2008, approximately $55,987,000 of the
consolidated stockholders&#146; equity represented net assets of the Company&#146;s
subsidiaries that cannot be transferred in the form of dividends, loans or
advances to the parent company under statutory regulations without prior
insurance</FONT></P>
<P align=center><FONT face=serif size=2>27</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>department approval. These regulations,
among other things, require prior regulatory approval of the payment of
dividends and other intercompany transfers. The Company believes, however, that
amounts available for transfer from the insurance and other subsidiaries are
adequate to meet the Company&#146;s operating needs.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT face=serif size=2>Purchase
of Company Stock:</FONT></I><FONT face=serif size=2> On November 10, 2008, the
Board of Directors of the Company approved the purchase of an additional 394,582
shares pursuant to the Plan, such that there was authority remaining under the
Plan to purchase up to an aggregate of 500,000 shares of the Company&#146;s common
stock pursuant to the Plan immediately after the approval. Pursuant to this
approval, the Company purchased 130,450 shares in the twelve months ended
December 31, 2008, 111,437 shares in the twelve months ended December 31, 2007
and 51,949 shares in the twelve months ended December 31, 2006 at an average per
share price of $45.78, $41.82 and $43.85, respectively.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><EM>Capital
Expenditures:</EM></FONT><FONT face=serif size=2> During 2009, the Company has
plans for various capital improvement projects, including hardware purchases and
several software development projects and are anticipated to be funded via cash
flows from operations. All material anticipated capital expenditures are subject
to periodic review and revision and may vary depending on a number of
factors.</FONT></P>
<P align=left><B><FONT face=serif size=2>Off-Balance Sheet Arrangements and
Contractual Obligations</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As a service
to its customers, the Company, through ITIC, administers escrow and trust
deposits representing earnest money received under real estate contracts,
undisbursed amounts received for settlement of mortgage loans and indemnities
against specific title risks. Cash held by the Company for these purposes was
approximately $14,492,000 and $23,665,000 as of December 31, 2008 and 2007,
respectively. These amounts are not considered assets of the Company and,
therefore, are excluded from the accompanying consolidated balance sheets.
However, the Company remains contingently liable for the disposition of these
deposits.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In addition,
in administering tax-deferred property exchanges, ITEC serves as a qualified
intermediary for exchanges, holding the net sales proceeds from relinquished
property to be used for purchase of replacement property. ITAC serves as
exchange accommodation titleholder and, through limited liability companies that
are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse
exchange transactions. Like-kind exchange deposits and reverse exchange property
held by the Company for the purpose of completing such transactions totaled
$88,124,000 and $115,515,000 as of December 31, 2008 and 2007, respectively.
These amounts are not considered assets of the Company for accounting purposes
and, therefore, are excluded from the accompanying consolidated balance sheets.
Exchange services revenues include earnings on these deposits; therefore,
investment income is shown as exchange services revenue, rather than investment
income. The Company remains contingently liable to customers for the transfers
of property, disbursements of proceeds, and the return on the proceeds at the
agreed upon rate.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>External
assets managed by the Investors Trust Company totaled over $500,000,000 for the
years ended December 31, 2008 and 2007. These amounts are not considered assets
of the Company and, therefore, are excluded from the accompanying consolidated
balance sheets. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>It is not
the general practice of the Company to enter into off-balance sheet
arrangements; nor is it the policy of the Company to issue guarantees to third
parties. Off-balance sheet arrangements are generally limited to the future
payments under noncancelable operating leases, payments due under various
agreements with third party service providers, and unaccrued obligations
pursuant to certain executive employment agreements. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
following table summarizes the Company&#146;s future estimated cash payments under
existing contractual obligations at December 31, 2008, including payments due by
period:</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="69%"><FONT size=2><U>Contractual
      Obligations</U></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="17%" colSpan=8><FONT style="BORDER-BOTTOM: #000000 1pt solid" face=serif size=2>Payments due by
      period</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="69%"><FONT style="BORDER-BOTTOM: #000000 1pt solid" face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=2>Less
      than 1</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><FONT face=serif size=2>More
      than 5</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="69%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT size=2>Total</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=serif size=2>year</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 size=2>1 - 3 years</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 size=2>3 - 5 years</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%" colSpan=3><FONT face=serif size=2>years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="69%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; Operating lease obligations</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>1,376,412</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>710,419</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>607,115</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>58,878</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="69%"><FONT face=serif size=2>&nbsp;&nbsp;
      Reserves for claims</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>39,238,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>7,613,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>12,275,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>9,625,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>9,725,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="69%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; Other obligations</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>588,775</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>438,300</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>150,475</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="69%"><FONT face=serif size=2>&nbsp;&nbsp;
      Obligations under executive</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="69%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; employment
      plans and agreements</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>6,574,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>2,455,701</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>4,118,299</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="69%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; FIN48
      Liability</FONT></TD>
    <TD 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>86,502</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>87,646</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(1,144)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></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="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="69%"><FONT face=serif size=2>&nbsp;&nbsp;
      Total</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>&nbsp; 47,863,689</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>&nbsp;&nbsp; 11,305,066</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>&nbsp;&nbsp; 13,031,446</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>&nbsp;&nbsp; 9,683,878</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>13,843,299</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>28</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As of
December 31, 2008, the Company had a claims reserve of $39,238,000. The amounts
and timing of these obligations are estimated and are not set contractually.
Nonetheless, based on historical insurance claim experience, the Company
anticipates the above payment patterns.</FONT></P>
<P align=left><B><FONT face=serif size=2>Recent Accounting
Standards</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In December
2007, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Statement of
Financial Accounting Standards (&#147;SFAS&#148;) No. 160, &#147;Noncontrolling Interests in
Consolidated Financial Statements &#150; an amendment of ARB No. 51&#148; (&#147;SFAS 160&#148;).
SFAS 160 amends Accounting Research Bulletin No. 51 to establish accounting and
reporting standards for the noncontrolling interest in a subsidiary and for the
deconsolidation of a subsidiary. SFAS 160 is effective for fiscal years, and
interim periods within those fiscal years, beginning on or after December 15,
2008, with earlier adoption prohibited. The Company is currently evaluating the
effect of adopting this new Statement and anticipates that the Statement will
not have a significant impact on the reporting of the Company&#146;s results of
operations.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In May 2008,
the FASB issued SFAS No. 162, &#147;The Hierarchy of Generally Accepted Accounting
Principles&#148; (&#147;SFAS 162&#148;). This Statement identifies the sources of accounting
principles and the framework for selecting the principles used in the
preparation of financial statements of nongovernmental entities that are
presented in accordance with GAAP. With the issuance of this Statement, the FASB
concluded that the GAAP hierarchy should be directed toward the entity and not
its auditor, and reside in the accounting literature established by the FASB.
This Statement is effective 60 days following the SEC&#146;s approval of the Public
Company Accounting Oversight Board amendments to Audit Standards AU Section 411,
&#147;The Meaning of Present Fairly in Conformity With Generally Accepted Accounting
Principles.&#148; The Company is currently evaluating the effect of adopting this new
Statement and anticipates that the Statement will not have a significant impact
on the reporting of the Company&#146;s results of operations.</FONT></P>
<P align=left><B><FONT face=serif size=2>ITEM 7A. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In the
context of Item 7A, market risk refers to the risk of loss arising from adverse
changes in financial instrument market rates and prices, such as fluctuations in
interest rates and prices. The Company&#146;s primary exposure to market risk relates
to the impact of adverse changes in the fair value of financial instruments as a
result of changes in interest rates and equity market prices of its investment
portfolio. Increases in interest rates diminish the value of fixed income
securities and preferred stock, and decreases in stock market values diminish
the value of common stocks held. The fair value of the majority of marketable
securities is determined based on quoted market prices for those
securities.</FONT></P>
<P align=left><I><FONT face=serif size=2>Corporate Oversight</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
generates substantial investable funds from its two insurance subsidiaries. In
formulating and implementing policies for investing new and existing funds, the
Company has emphasized maximizing total after-tax return on capital and earnings
while ensuring the safety of funds under management and adequate liquidity. The
Company&#146;s Board of Directors oversees investment risk management processes. The
Company seeks to invest premiums and other income to create future cash flows
that will fund future claims, employee benefits and expenses, and earn stable
margins across a wide variety of interest rate and economic scenarios. The Board
of Directors has established specific investment policies that define the
overall framework for managing market and other investment risks, including the
accountabilities and controls over these activities. The Company may rebalance
its existing asset portfolios or change the character of future investments from
time to time to manage its exposure to market risk within defined tolerance
ranges. The Company also discusses risk management in various places throughout
this Annual Report on Form 10-K, including in Item 7.</FONT></P>
<P align=center><FONT face=serif size=2>29</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><I><FONT face=serif size=2>Interest Rate Risk</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Interest
rate risk is the risk that the Company will incur economic losses due to adverse
changes in interest rates. This risk arises from the Company&#146;s investments in
interest-sensitive debt securities. These securities are primarily fixed rate
municipal bonds and corporate bonds. The Company does not purchase such
securities for trading purposes. At December 31, 2008, the Company had
approximately $76 million in fixed rate bonds. The Company manages the interest
rate risk inherent in its assets by monitoring its liquidity needs and by
targeting a specific range for the portfolio&#146;s duration or weighted-average
maturity.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>To determine
the potential effect of interest rate risk on interest-sensitive assets, the
Company calculates the effect of a 10% change in prevailing interest rates
(&#147;rate shock&#148;) on the fair market value of these securities considering stated
interest rates and time to maturity. Based upon the information and assumptions
the Company uses in its calculation, management estimates that a 10% immediate,
parallel increase in prevailing interest rates would decrease the net fair
market value of its fixed rate debt securities by approximately $1.6 million.
The selection of a 10% immediate parallel increase in prevailing interest rates
should not be construed as a prediction by the Company&#146;s management of future
market events, but rather, to illustrate the potential impact of such an event.
To the extent that actual results differ from the assumptions utilized, the
Company&#146;s rate shock measures could be significantly impacted. Additionally, the
Company&#146;s calculation assumes that the current relationship between short-term
and long-term interest rates (the term structure of interest rates) will remain
constant over time. As a result, these calculations may not fully capture the
impact of nonparallel changes in the term structure of interest rates and/or large changes in interest rates.</FONT></P>
<P align=left><I><FONT face=serif size=2>Equity Price Risk</FONT></I></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
also holds investments in marketable equity securities, which exposes it to
market volatility, as discussed in Note 3 to the accompanying consolidated
financial statements. The sensitivity analysis presented does not consider the
effects that such adverse changes may have on overall economic activity, nor
does it consider additional actions the Company may take to mitigate its
exposure. Equity price risk is the risk that the Company will incur economic
losses due to adverse changes in a particular common stock or stock index. At
December 31, 2008, the Company had approximately $9.5 million in common stocks.
Equity price risk is addressed in part by varying the specific allocation of
equity investments over time pursuant to management&#146;s assessment of market and
business conditions and ongoing liquidity needs analysis. The Company&#146;s largest
equity exposure is a decline in the S&amp;P 500; its portfolio of equity
instruments is similar to those that comprise this index. Based upon the
information and assumptions the Company used in its calculation, management
estimates that an immediate decrease in the S&amp;P 500 of 10% would decrease
the net fair value of the Company&#146;s assets identified above by approximately
$950,000.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
selection of a 10% immediate decrease in the S&amp;P 500 should not be construed
as a prediction by the Company&#146;s management of future market events, but rather,
to illustrate the potential impact of such an event. The Company&#146;s exposure will
change as a result of changes in its mix of common stocks. Since this
calculation is based on historical performance, projecting future price
volatility using this method involves an inherent assumption that historical
volatility and correlation relationships will remain stable. Therefore, the
results noted above may not reflect the Company&#146;s actual experience if future
volatility and correlation relationships differ from such historical
relationships.</FONT></P>
<P align=center><FONT face=serif size=2>30</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>ITEM 8. FINANCIAL STATEMENTS AND
SUPPLEMENTARY DATA</FONT></B></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=right width="1%" bgColor=#ffffff><FONT face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1.</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Report of Independent Registered Public Accounting Firm </FONT></TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><FONT face=serif size=2>32</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>2.</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="87%"><FONT face=serif size=2>Management&#146;s
      Report on Internal Control Over Financial Reporting</FONT></TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>33</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3.</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Report of Independent Registered Public Accounting</FONT></TD>
    <TD noWrap align=left width="9%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Firm on
      Internal Control Over Financial Reporting</FONT></FONT></TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><FONT face=serif size=2>34</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>4.</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="87%"><FONT face=serif size=2>Consolidated
      Balance Sheets</FONT></TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>35</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>5.</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Consolidated Statements of Income (Loss)</FONT></TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><FONT face=serif size=2>36</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>6.</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="87%"><FONT face=serif size=2>Consolidated
      Statements of Stockholders&#146; Equity</FONT></TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>37</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>7.</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Consolidated Statements of Comprehensive Income (Loss)</FONT></TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><FONT face=serif size=2>38</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>8.</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="87%"><FONT face=serif size=2>Consolidated
      Statements of Cash Flows</FONT></TD>
    <TD noWrap align=right width="9%"><FONT face=serif size=2>39</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>9.</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="87%" bgColor=#c0c0c0><FONT face=serif size=2>Notes to Consolidated Financial Statements</FONT></TD>
    <TD noWrap align=right width="9%" bgColor=#c0c0c0><FONT face=serif size=2>41</FONT></TD></TR></TABLE>
<BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
financial statements schedules meeting the requirements of Regulation S-X are
attached hereto as Schedules I, II, III, IV and V.</FONT></P>
<P align=left><B><FONT face=serif size=2>Selected Quarterly Financial
Data</FONT></B></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 1pt solid" noWrap align=left width="71%"><B><FONT face=serif size=2>&nbsp;&nbsp; 2008</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>March 31</FONT></B></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%" colSpan=2><B><FONT face=serif size=2>June 30</FONT></B></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%" colSpan=2><B><FONT face=serif size=2>September 30</FONT></B></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%" colSpan=2><B><FONT face=serif size=2>De</FONT></B><B><FONT face=serif size=2>cember 31</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><STRONG><FONT size=2>&nbsp;&nbsp; </FONT></STRONG></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp;&nbsp; </STRONG>Net premiums written</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; 17,813,360</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp; 18,127,982</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>15,331,820</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>12,389,025</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp; </STRONG>Net income (loss)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>2,124,380</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>(273,934)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>917,033</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>(3,950,275)</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2></FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp;&nbsp; </STRONG>Basic earnings (loss) per common
      share</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>.88</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>(.11)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>.39</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>(1.72)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2></FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp; </STRONG>Diluted earnings (loss) per common
      share</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>.87</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>(.11)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>.39</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>(1.72)</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2></FONT></B></TD></TR>
  <TR>
    <TD width="100%" colSpan=14>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="71%"><B><FONT face=serif size=2>&nbsp;&nbsp; 2007</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>March 31</FONT></B></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="6%" colSpan=2><B><FONT face=serif size=2>June 30</FONT></B></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="6%" colSpan=2><B><FONT face=serif size=2>September 30</FONT></B></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="6%" colSpan=2><B><FONT face=serif size=2>De</FONT></B><B><FONT face=serif size=2>cember 31</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp;&nbsp; </STRONG>Net premiums written</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>16,792,542</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>18,626,179</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>18,994,453</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>15,570,815</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp; </STRONG>Net income </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>2,322,214</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>1,154,149</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>3,857,892</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>1,068,080</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp;&nbsp; </STRONG>Basic earnings per common
    share</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>.93</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>.46</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>1.56</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>.44</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="71%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp; </STRONG>Diluted earnings per common
      share</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>.92</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>.46</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>1.54</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>.43</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>31</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>Report of Independent Registered Public
Accounting Firm</FONT></P>
<P align=left><FONT face=serif size=2>To the Board of Directors and
Stockholders<BR>Investors Title Company<BR>Chapel Hill, North
Carolina</FONT></P>
<P align=left><FONT face=serif size=2>We have audited the accompanying
consolidated balance sheets of Investors Title Company and Subsidiaries as of
December 31, 2008 and 2007, and the related consolidated statements of income
(loss), comprehensive income (loss), stockholders&#146; equity and cash flows for
each of the years in the three-year period ended December 31, 2008. These
consolidated financial statements are the responsibility of the Company&#146;s
management. Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.</FONT></P>
<P align=left><FONT face=serif size=2>We conducted our audits in accordance with
the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our
opinion.</FONT></P>
<P align=left><FONT face=serif size=2>In our opinion, the consolidated financial
statements referred to above present fairly, in all material respects, the
financial position of Investors Title Company and Subsidiaries as of December
31, 2008 and 2007, and the results of their operations and their cash flows for
each of the years in the three-year period ended December 31, 2008 in conformity
with accounting principles generally accepted in the United States of
America.</FONT></P>
<P align=left><FONT face=serif size=2>We have also audited, in accordance with
the standards of the Public Company Accounting Oversight Board (United States),
Investors Title Company&#146;s internal control over financial reporting as of
December 31, 2008, based on the criteria established in Internal
Control-Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission, and our report dated March 6, 2009 expressed an
unqualified opinion.</FONT></P>
<P align=left><FONT face=serif size=2><IMG src="signaturex2x1.jpg" border=0><BR></FONT><FONT face=serif

size=2>March 6, 2009<BR></FONT><FONT face=serif size=2>High Point, North Carolina</FONT></P>
<P align=center><FONT face=serif size=2>32</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>Management&#146;s Report on Internal Control
over Financial Reporting</FONT></P>
<P align=left><FONT face=serif size=2>Management of Investors Title Company is
responsible for establishing and maintaining adequate internal control over
financial reporting, as such term is defined in the Exchange Act Rules 13a-15(f)
and 15(d)-15-(f). The Company&#146;s internal control over financial reporting has
been designed to provide reasonable assurance regarding the reliability of the
Company&#146;s financial reporting and the preparation of published financial
statements in accordance with generally accepted accounting
principles.</FONT></P>
<P align=left><FONT face=serif size=2>The Company&#146;s internal control over
financial reporting includes policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect
transactions and dispositions of assets of the Company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with accounting principles generally accepted
in the United States of America, and that receipts and expenditures are being
made only in accordance with authorization of management and directors of the
Company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of the Company&#146;s
assets that could have a material effect on the Company&#146;s consolidated financial
statements.</FONT></P>
<P align=left><FONT face=serif size=2>Because of its inherent limitation,
internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of
changes in conditions, or that the degree of compliance with policies or
procedures may deteriorate.</FONT></P>
<P align=left><FONT face=serif size=2>Management conducted an evaluation of the
effectiveness of the Company&#146;s internal control over financial reporting based
on the framework in &#147;Internal Control-Integrated Framework&#148; issued by the
Committee of Sponsoring Organizations of the Treadway Commission (&#147;COSO&#148;) and
concluded that internal controls over financial reporting are effective as of
December 31, 2008.</FONT></P>
<P align=left><FONT face=serif size=2>Management&#146;s assessment of the
effectiveness of the Company&#146;s internal control over financial reporting as of
December 31, 2008 has been audited by Dixon Hughes PLLC as independent
registered public accounting firm, as stated in their report which
follows.</FONT></P>
<P align=center><FONT face=serif size=2>33</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</FONT></B></P>
<P align=left><FONT face=serif size=2>To the Board of Directors and
Stockholders<BR>Investors Title Company<BR>Chapel Hill, North
Carolina</FONT></P>
<P align=left><FONT face=serif size=2>We have audited Investors Title Company
and Subsidiaries&#146; (&#147;the Company&#148;) internal control over financial reporting as
of December 31, 2008, based on criteria established in <I>Internal
Control&#151;Integrated Framework</I> issued by the Committee of Sponsoring Organizations
of the Treadway Commission. The Company&#146;s management is responsible for
maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting
included in the accompanying Management&#146;s Report on Internal Controls over
Financial Reporting. Our responsibility is to express an opinion on the
Company&#146;s internal control over financial reporting based on our
audit.</FONT></P>
<P align=left><FONT face=serif size=2>We conducted our audit in accordance with
the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether effective internal control over financial reporting was
maintained in all material respects. Our audit included obtaining an
understanding of internal control over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk. Our
audit also included performing such other procedures as we considered necessary
in the circumstances. We believe that our audit provides a reasonable basis for
our opinion.</FONT></P>
<P align=left><FONT face=serif size=2>A company&#146;s internal control over
financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted
accounting principles. A company&#146;s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of
the company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company&#146;s
assets that could have a material effect on the financial statements.</FONT></P>
<P align=left><FONT face=serif size=2>Because of its inherent limitations,
internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of
changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.</FONT></P>
<P align=left><FONT face=serif size=2>In our opinion, Investors Title Company
and Subsidiaries maintained, in all material respects, effective internal
control over financial reporting as of December 31, 2008, based on criteria
established in </FONT><FONT face=serif size=2>Internal Control&#151;Integrated
Framework</FONT><FONT face=serif size=2> issued by the Committee of
Sponsoring Organizations of the Treadway Commission.</FONT></P>
<P align=left><FONT face=serif size=2>We also have audited, in accordance with
the standards of the Public Company Accounting Oversight Board (United States),
the consolidated balance sheets of Investors Title Company and Subsidiaries as
of December 31, 2008 and the related consolidated statements of income
(loss), comprehensive income (loss), stockholders&#146; equity, and cash flows for
the year then ended and our report dated March 6, 2009, expressed an unqualified opinion on those
consolidated financial statements.</FONT></P>
<P align=left><FONT face=serif size=2><IMG src="signaturex2x1.jpg" border=0><BR></FONT><FONT face=serif

size=2>March 6, 2009<BR></FONT><FONT face=serif size=2>High Point, North Carolina</FONT></P>
<P align=center><FONT face=serif size=2>34</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<PAGE>
<P align=left><B><FONT face=serif size=2>Investors Title Company and
Subsidiaries</FONT></B></P>
<P align=left><B><FONT face=serif size=2>Consolidated Balance
Sheets</FONT></B></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 1pt solid" noWrap align=left width="84%"><B><FONT face=serif size=2>&nbsp;&nbsp; As of December
      31,</FONT></B></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%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></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%" colSpan=2><FONT face=serif size=2>2007</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"><STRONG><FONT size=2>&nbsp;&nbsp; </FONT></STRONG></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; Assets</FONT></B></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Investments in securities (Notes 2 and 3):</FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Fixed maturities</FONT></FONT></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Held-to-maturity, at amortized cost (fair value: 2008:
      $462,580; 2007: $1,078,229)</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>451,681</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>1,052,535</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Available-for-sale, at fair value (amortized cost: 2008:
      $85,923,583; 2007: $89,228,010)</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>87,708,500</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>90,530,946</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Equity securities, available-for-sale at fair value
      (cost: 2008: $9,158,785; 2007: $10,283,458)</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>9,965,297</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>14,431,866</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Short-term investments</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>15,725,513</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>21,222,533</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Other investments (Note 16)</FONT></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>2,040,962</FONT></B></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>1,788,501</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&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;
      Total investments</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>115,891,953</FONT></B></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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>129,026,381</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="98%" colSpan=7>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Cash and cash equivalents (Note 15)</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>5,155,046</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>3,000,762</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Premium and fees receivable (less allowance for doubtful
      accounts:</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>2008: $1,297,000; 2007: $2,170,000) (Note
      16)</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>4,933,797</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>6,900,968</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Accrued interest and dividends</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,225,070</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>1,254,641</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Prepaid expenses and other assets</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>1,215,146</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>1,276,806</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Property acquired in settlement of
claims</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>395,734</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>278,476</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Property, net (Note 4)</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>4,422,318</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>5,278,891</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Current income taxes receivable (Note 8)</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,777,829</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Deferred income taxes, net (Note 8)</FONT></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>3,841,295</FONT></B></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>2,625,495</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; Total
      Assets</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>139,858,188</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>149,642,420</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="98%" colSpan=7>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; Liabilities and Stockholders&#146; Equity</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#ffffff><B><FONT face=serif size=2>&nbsp;&nbsp; Liabilities</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Reserves for claims (Note 6)</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>39,238,000</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>36,975,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Accounts payable and accrued liabilities (Note
      10)</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>10,294,912</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>11,236,781</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Commissions and reinsurance payable (Note
    5)</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>467,388</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>406,922</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Current income taxes payable (Note 8)</FONT></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>-</FONT></B></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>1,747,877</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Total liabilities</FONT></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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>50,000,300</FONT></B></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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>50,366,580</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="98%" colSpan=7>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; Commitments and Contingencies (Notes 5, 9, 10 and
      11)</FONT></B></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><B><FONT face=serif size=2>&nbsp;&nbsp;
      Stockholders&#146; Equity (Notes 2, 3, 7, 12 and 14)</FONT></B></TD>
    <TD noWrap align=left width="1%"></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="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Class A Junior Participating preferred stock (shares
      authorized 100,000; no shares issued)</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Common stock-no par value (shares authorized 10,000,000;
      2,293,268 and 2,411,318</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>shares issued and outstanding 2008 and 2007,
      respectively, excluding 291,676 shares</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>for 2008 and 2007, respectively of common stock held by
      the Company&#146;s subsidiary)</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>1</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>1</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Retained earnings</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>88,248,452</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>95,739,827</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Accumulated other comprehensive income (net unrealized
      gain on investments, Note 8;</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>net unrealized loss on postretirement benefits, Note
      10)</FONT></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>1,609,435</FONT></B></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>3,536,012</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Total stockholders&#146; equity</FONT></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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>89,857,888</FONT></B></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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>99,275,840</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="84%"><B><FONT face=serif size=2>&nbsp;&nbsp; Total Liabilities and
      Stockholders&#146; Equity</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>&nbsp; 139,858,188</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><FONT face=serif size=2>&nbsp; 149,642,420</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"></TD></TR></TABLE>
<BR>
<P align=left><FONT face=serif size=2>See notes to the Consolidated Financial
Statements.</FONT></P>
<P align=center><FONT face=serif size=2>35</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>Investors Title Company and
Subsidiaries</FONT></B></P>
<P align=left><B><FONT face=serif size=2>Consolidated Statements of Income
(Loss)</FONT></B></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 1pt solid" noWrap align=left width="77%"><B><FONT face=serif size=2>&nbsp;&nbsp; For the Years Ended
      December 31,</FONT></B></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%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B></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%" colSpan=2><FONT face=serif size=2>2007</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%" colSpan=2><FONT face=serif size=2>2006</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"><STRONG><FONT size=2>&nbsp;&nbsp; </FONT></STRONG></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; Revenues</FONT></B></TD>
    <TD noWrap align=left width="1%" 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="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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Underwriting income</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</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="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Premiums written (Note 5)</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; <STRONG>63,937,276</STRONG></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; 70,248,166</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; 70,638,049</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="77%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Less-premiums for reinsurance ceded (Note
    5)</FONT></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>275,089</FONT></B></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="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>264,177</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>441,582</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Net premiums written</FONT></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><B><FONT face=serif size=2>63,662,187</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>69,983,989</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>70,196,467</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Investment income-interest and dividends (Note
      3)</FONT></FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>4,558,735</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>5,197,178</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>4,326,335</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Net realized (loss) gain on investments (Note
      3)</FONT></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><B><FONT face=serif size=2>(2,922,376)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2></FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>921,871</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>551,058</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Exchange services revenue</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>1,166,141</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>4,340,062</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>5,980,027</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="77%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Other (Note 16)</FONT></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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,658,574</FONT></B></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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>4,499,187</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>3,607,829</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="77%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Total Revenues</FONT></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>71,123,261</FONT></B></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>84,942,287</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>84,661,716</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR>
    <TD width="98%" colSpan=10>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; Operating Expenses</FONT></B></TD>
    <TD noWrap align=left width="1%" 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="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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Commissions to agents</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>27,717,807</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>28,424,960</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>26,714,784</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Provision for claims (Note 6)</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>15,206,637</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>10,134,719</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>7,405,211</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Salaries, employee benefits and payroll taxes (Notes 7
      and 10)</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>19,605,500</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>20,819,094</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>20,036,079</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Office occupancy and operations (Note 9)</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>5,107,843</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>5,598,576</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>5,599,382</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Business development</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>2,104,935</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>2,183,853</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>2,247,826</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Filing fees and taxes, other than payroll and
      income</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>587,235</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>531,777</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>573,395</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Premium and retaliatory taxes</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>1,281,297</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>1,496,448</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>1,348,850</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Professional and contract labor fees</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,684,208</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,789,878</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,659,238</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="77%"><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Other</FONT></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>1,044,598</FONT></B></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>1,138,647</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>747,517</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="77%" bgColor=#c0c0c0><FONT size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Total Operating Expenses</FONT></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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>74,340,060</FONT></B></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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>73,117,952</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>67,332,282</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="77%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp; </STRONG>(Loss) Income before Income
      Taxes</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><B><FONT face=serif size=2>(3,216,799)</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2></FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>11,824,335</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>17,329,434</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="77%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>&nbsp;&nbsp;
      </STRONG>(Benefit) Provision for Income Taxes (Note 8)</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>(2,034,000)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2></FONT></B></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="5%" bgColor=#c0c0c0><FONT face=serif size=2>3,422,000</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="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>4,144,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="77%"><B><FONT face=serif size=2>&nbsp;&nbsp; Net (Loss)
      Income</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>(1,182,799)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2></FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><FONT face=serif size=2>8,402,335</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><FONT face=serif size=2>13,185,434</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="77%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; Basic (Loss)
      Earnings per Common Share (Note 7)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>(0.50)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2></FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>3.39</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>5.22</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="77%"><B><FONT face=serif size=2>&nbsp;&nbsp; Weighted Average
      Shares Outstanding &#150; Basic</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>2,364,361</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><FONT face=serif size=2>2,479,321</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><FONT face=serif size=2>2,527,927</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="77%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; Diluted (Loss)
      Earnings per Common Share (Note 7)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>(0.50)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2></FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>3.35</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>5.14</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="77%"><B><FONT face=serif size=2>&nbsp;&nbsp; Weighted Average
      Shares Outstanding &#150; Diluted</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><B><FONT face=serif size=2>2,364,361</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><FONT face=serif size=2>2,508,609</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%"><FONT face=serif size=2>2,564,216</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="77%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;&nbsp; Cash Dividends
      Paid per Common Share</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>0.28</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>0.24</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>0.24</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=left><FONT face=serif size=2>See notes to the Consolidated Financial
Statements.</FONT></P>
<P align=center><FONT face=serif size=2>36</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>Investors Title Company and
Subsidiaries </FONT></B></P>
<P align=left><B><FONT face=serif size=2>Consolidated Statements of
Stockholders&#146; Equity</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>Accumulated</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>Other</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>Total</FONT> </TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=center width="6%" colSpan=4><FONT face=serif size=2><U>Common Stock</U></FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>Retained</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>Comprehensive</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>Stockholders&#146;</FONT> </TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>For
      the Years Ended December 31, 2006, 2007 and 2008</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>Shares</FONT> </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="2%" colSpan=2><FONT face=serif size=2>Amount</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>Earnings</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>Income</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=serif size=2>Equity</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Balance, January 1, 2006</STRONG></FONT>
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,549,434</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>81,477,022</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=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,820,233</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>84,297,256</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net income</FONT> </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>13,185,434</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>13,185,434</FONT> </TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Dividends ($.24 per share)</FONT> </TD>
    <TD noWrap align=left width="3%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(606,423)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(606,423)</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Shares of common stock repurchased</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(500)</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(22,445)</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(22,445)</FONT>
    </TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Shares of common stock repurchased and retired</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(51,449)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(2,255,735)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(2,255,735)</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Issuance of common stock in payment of bonuses and
      fees</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>500</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>21,826</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>21,826</FONT>
</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Stock options exercised</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>9,340</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>219,342</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>219,342</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Share-based compensation expense</FONT> </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>91,209</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>91,209</FONT>
</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Change in investment accounting method</FONT> </TD>
    <TD noWrap align=left width="3%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>24,378</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>24,378</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Adjustment to initially apply FASB Statement No.
      158,</FONT> </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>net
      of tax</FONT> </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(40,810)</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(40,810)</FONT>
    </TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net
      unrealized gain on investments</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" 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;</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;</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;</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;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>361,631</FONT> </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=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>361,631</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Balance, December 31,
      2006</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2,507,325</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=serif size=2>1</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>92,134,608</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>3,141,054</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>95,275,663</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net
      income</FONT> </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>8,402,335</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>8,402,335</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Dividends ($.24 per share)</FONT> </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(595,808)</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(595,808)</FONT>
    </TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Shares of common stock repurchased and retired</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(111,437)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(4,660,259)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(4,660,259)</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Issuance of common stock in payment of bonuses and
      fees</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>40</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,998</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,998</FONT> </TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Stock options exercised</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>15,390</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>365,284</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>365,284</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Share-based compensation expense</FONT> </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>91,669</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>91,669</FONT>
</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Amortization related to FASB Statement No. 158</FONT> </TD>
    <TD noWrap align=left width="3%" 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="1%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>11,736</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>11,736</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accumulated post-retirement benefit obligation
      adjustment</FONT> </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(31,734)</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(31,734)</FONT>
    </TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net
      unrealized gain on investments</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" 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;</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;</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; </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;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>414,956</FONT> </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=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>414,956</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Balance, December 31,
      2007</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>2,411,318</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>1</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><STRONG>$</STRONG></FONT><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>95,739,827</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>3,536,012</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=2><STRONG>$</STRONG></FONT>&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>99,275,840</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net
      loss</FONT> </TD>
    <TD noWrap align=left width="3%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(1,182,799)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(1,182,799)</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Dividends ($.28 per share)</FONT> </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(661,862)</FONT>
    </TD>
    <TD noWrap align=left width="1%"></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=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(661,862)</FONT>
    </TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Shares of common stock repurchased and retired</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(130,450)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(5,972,043)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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=serif size=2>(5,972,043)</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Issuance of common stock in payment of bonuses and
      fees</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>40</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,946</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,946</FONT> </TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Stock options exercised</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>12,360</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>230,801</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>230,801</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Share-based compensation expense</FONT> </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>92,582</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>92,582</FONT>
</TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Amortization related to FASB Statement No. 158</FONT> </TD>
    <TD noWrap align=left width="3%" 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="1%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>13,456</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>13,456</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accumulated post retirement benefit obligation
      adjustment</FONT> </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(67,221)</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(67,221)</FONT>
    </TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net
      unrealized loss on investments</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" 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;</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;</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;</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;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(1,872,812)</FONT> </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=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(1,872,812)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Balance, December 31,
      2008</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>2,293,268</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>1</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><STRONG><FONT size=2>$</FONT> </STRONG></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>88,248,452</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>1,609,435</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT> </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>89,857,888</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp;</TD></TR></TABLE>
<P align=left><FONT face=serif size=2>See notes to the Consolidated Financial
Statements.</FONT></P>
<P align=center><FONT face=serif size=2>37</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>Investors Title Company and
Subsidiaries</FONT></B></P>
<P align=left><B><FONT face=serif size=2>Consolidated Statements of
Comprehensive Income (Loss)</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>For the Years Ended December
      31,</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </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=serif size=2>2007</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=serif size=2>2006</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Net (loss) income</FONT> </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="1%" bgColor=#c0c0c0><FONT size=2><STRONG>$</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>(1,182,799)</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>8,402,335</FONT> </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="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>13,185,434</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Other comprehensive (loss) income, before
      tax:</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Amortization related to prior year service cost</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>20,388</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>20,388</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Amortization of unrecognized gain</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>-</FONT></B>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(2,604)</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accumulated post retirement benefit obligation adjustment</FONT>
</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(101,850)</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(48,082)</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Unrealized (losses) gains on investments arising during
      the year</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>(5,782,291)</FONT></B> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,555,828</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,098,165</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Less: reclassification adjustment for losses (gains) realized in
      net</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(loss) income</FONT>&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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,922,376</FONT></B> </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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(921,871)</FONT> </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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(551,058)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Other
      comprehensive (loss) income, before tax</FONT> </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="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(2,941,377)</FONT></B> </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="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>603,659</FONT> </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="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>547,107</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Income tax benefit related to FASB Statement No. 158</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(27,696)</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(10,300)</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Income tax (benefit) expense related to unrealized
      (losses) gains on</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>investments
      arising during the tax year</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>(1,992,602)</FONT></B> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>551,029</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>372,836</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Income tax (benefit) expense related to reclassification adjustment
      for</FONT> </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></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(losses) gains realized in net (loss) income</FONT> </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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,005,498</FONT></B> </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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(332,028)</FONT> </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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(187,360)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net
      income tax (benefit) expense on other comprehensive (loss) income</FONT>
    </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="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(1,014,800)</FONT></B> </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="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>208,701</FONT> </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="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>185,476</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Other comprehensive (loss) income</FONT>&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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(1,926,577)</FONT></B> </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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>394,958</FONT> </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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>361,631</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Comprehensive (loss)
      income</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2><STRONG>$</STRONG></FONT><FONT size=3> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(3,109,376)</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>8,797,293</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>13,547,065</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD></TR></TABLE>
<P align=left><FONT face=serif size=2>See notes to the Consolidated Financial
Statements.</FONT></P>
<P align=center><FONT face=serif size=2>38</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>Investors Title Company and
Subsidiaries</FONT></B></P>
<P align=left><B><FONT face=serif size=2>Consolidated Statements of Cash
Flows</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>For the Years Ended December
      31,</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=2><STRONG>2008</STRONG></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 size=2>2007</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=serif size=2>2006</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Operating
      Activities</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Net (loss) income</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=2><STRONG>$</STRONG></FONT>
    </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2><STRONG>(1,182,799)</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$<FONT size=3>&nbsp;&nbsp;&nbsp;</FONT></FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>8,402,335</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>13,185,434</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Adjustments to reconcile net (loss)
      income to net cash provided by</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>operating activities:</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Depreciation</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>920,840</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,183,155</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,146,509</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Amortization, net</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>313,377</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>274,944</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>197,972</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Amortization related to FASB Statement No. 158</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>20,388</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>17,784</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Issuance of common stock in payment of bonuses and fees</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,946</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,998</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>21,826</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Share-based compensation expense related to stock
      options</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>92,582</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>91,669</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>91,209</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Allowance for doubtful accounts on premiums receivable</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(873,000)</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>42,000</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(316,000)</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net loss (gain) on disposals of property</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>221,148</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(15,264)</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>22,650</FONT>
</TD>
    <TD noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other property transactions</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>200,000</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net realized loss&nbsp;(gain) on investments</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>2,922,376</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(921,871)</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(551,058)</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net
      earnings from other investments</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(694,570)</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(556,082)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(299,982)</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Provision for claims</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>15,206,637</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>10,134,719</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>7,405,211</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Benefit for deferred income taxes</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(201,000)</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(304,000)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(232,000)</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Changes in assets and
      liabilities:</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2>Decrease<FONT face=serif> in receivables and other assets</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,761,823</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>60,509</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,283,662</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(Increase) in current income taxes receivable</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>(2,777,829)</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(<FONT size=2>Decrease)
      <FONT face=serif>increase&nbsp;in accounts payable and accrued
      liabilities</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(991,398)</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>650,707</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>2,547,774</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Increase <FONT size=3>(</FONT>decrease) in commissions and
      reinsurance payable</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>60,466</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>(63,546)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>28,370</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(<FONT size=2>Decrease)
      <FONT face=serif>increase in current income taxes payable</FONT></FONT>
</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(1,747,877)</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,421,622</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(620,535)</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Payments of claims, net of recoveries</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2><STRONG>(12,943,637)</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>(10,065,719)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>(5,356,211)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net cash provided by operating activities</FONT> </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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,309,473</FONT></B> </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;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10,354,960</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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>18,554,831</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR>
    <TD width="98%" colSpan=10>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Investing
      Activities</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Purchases of available-for-sale securities</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>(17,461,053)</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(53,409,065)</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(55,092,700)</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Purchases of short-term securities</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(2,396,338)</FONT></B> </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=serif size=2>(17,073,905)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(1,934,879)</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Purchases of other investments</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>(565,271)</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(443,084)</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(480,291)</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Proceeds from sales and maturities of available-for-sale
      securities</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>18,764,347</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>63,607,086</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>26,428,538</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Proceeds from maturities of held-to-maturity
      securities</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>611,000</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>149,000</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>461,000</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Proceeds from sales and maturities of short-term securities</FONT>
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>7,893,358</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>312,282</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,731,702</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Proceeds from sales and distributions of other
      investments</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>887,287</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,248,317</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>749,331</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other investment transactions</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>-</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(65,622)</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Purchases of property</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>(493,681)</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(463,828)</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(1,902,619)</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Proceeds from disposals of property</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>8,266</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>151,350</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>42,236</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other
      property transactions</FONT> </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="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>-</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>23,685</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net cash provided by (used in) investing
      activities</FONT> </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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>7,247,915</FONT></B> </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;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>(5,921,847)</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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>(27,039,619)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR>
    <TD width="98%" colSpan=10>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Financing
      Activities</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Repurchases of common stock</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>(5,972,043)</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(4,660,259)</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(2,278,180)</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Exercise of options</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>230,801</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>365,284</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>219,342</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Dividends paid</FONT> </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="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(661,862)</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>(595,808)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>(606,423)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net cash used in financing activities</FONT> </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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(6,403,104)</FONT></B> </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;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(4,890,783)</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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(2,665,261)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR></TABLE>
<BR>
<P align=center><FONT face=serif size=2>39</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 style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="84%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Consolidated Statements of Cash Flows,
      continued</STRONG></FONT> </TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="3%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="3%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="3%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>For the Years Ended December
      31,</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </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=serif size=2>2007</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=serif size=2>2006</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Net Increase (Decrease) in
      Cash and Cash Equivalents</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>$</FONT></STRONG> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,154,284</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(457,670)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>(11,150,049)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Cash and Cash Equivalents, Beginning of
      Year</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>3,000,762</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>3,458,432</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>14,608,481</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Cash and Cash Equivalents, End of
      Year</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>5,155,046</FONT></B> </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=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,000,762</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,458,432</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Supplemental Disclosures</STRONG></FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>Cash Paid During the Year
      for</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Income
      Taxes (net of refunds)</FONT> </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="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>2,775,000</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>2,288,000</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>4,989,000</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Non
      cash net unrealized (gain) loss on investments, net of deferred tax</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>benefit (provision) of $987,103, ($219,001) and
      ($185,475) for 2008, 2007 and</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>2006, respectively</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,872,812</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(414,956)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(361,631)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Adjustments to apply FASB Statement No. 158, net of
      deferred tax</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>provision of ($34,629), ($16,348) and ($21,024) for
      2008, 2007 and</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>2006, respectively</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>101,850</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>48,082</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>61,834</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;</TD></TR></TABLE><BR>
<P align=left><FONT face=serif size=2>See notes to the Consolidated Financial
Statements.</FONT></P>
<P align=center><FONT face=serif size=2>40</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>Investors Title Company and
Subsidiaries<BR>Notes to Consolidated Financial Statements</FONT></B></P>
<P align=left><B><FONT face=serif size=2>1. Basis of Presentation and Summary of
Significant Accounting Policies</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><FONT face=serif size=2>Description of Business</FONT></U><FONT face=serif size=2>&#151;Investors
Title Company&#146;s (the &#147;Company&#148;) two primary business segments are title
insurance and exchange services. The Company&#146;s title insurance segment, through
its two subsidiaries, Investors Title Insurance Company (&#147;ITIC&#148;) and Northeast
Investors Title Insurance Company (&#147;NE-ITIC&#148;), is licensed to insure titles to
residential, institutional, commercial and industrial properties. The Company
issues title insurance policies primarily through approved attorneys from
underwriting offices and through independent issuing agents in 23 states and the
District of Columbia primarily in the eastern half of the United States. The
majority of the Company&#146;s business is concentrated in Illinois, Kentucky,
Michigan, New York, North Carolina, Pennsylvania, South Carolina, Tennessee,
Virginia and West Virginia. Investors Title Exchange Corporation (&#147;ITEC&#148;) acts
as an intermediary in tax-deferred exchanges of property held for productive use
in a trade or business or for investments, while Investors Title Accommodation
Corporation (&#147;ITAC&#148;) provides services for accomplishing reverse exchanges when
taxpayers decide to acquire replacement property before selling the relinquished
property. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><FONT face=serif size=2>Principles of Consolidation and Basis of Presentation</FONT></U><FONT face=serif size=2>&#151;The accompanying consolidated financial statements include
the accounts of the Company and its wholly owned subsidiaries. All significant
intercompany balances and transactions have been eliminated.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U><FONT face=serif size=2>Reclassification</FONT></U><FONT face=serif size=2>&#151;Certain 2007 and 2006
amounts in the accompanying consolidated financial statements have been
reclassified to conform to the 2008 classifications. These reclassifications had
no effect on stockholders&#146; equity or net income as previously
reported.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Significant Accounting
Policies</U></FONT><FONT face=serif size=2>&#151;The significant accounting policies
of the Company are summarized below.</FONT></P>
<P align=left><B><I><FONT face=serif size=2>Cash and Cash
Equivalents</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>For the
purpose of presentation in the Company&#146;s statements of cash flows, cash
equivalents are highly liquid instruments with original maturities of three
months or less. The carrying amount of cash and cash equivalents is a reasonable
estimate of fair value due to the short-term maturity of these
instruments.</FONT></P>
<P align=left><B><I><FONT face=serif size=2>Investments in
Securities</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Securities
for which the Company has the intent and ability to hold to maturity are
classified as held-to-maturity and reported at cost, adjusted for amortization
of premiums or accretion of discounts, and other-than-temporary declines in fair
value. Securities held principally for resale in the near term are classified as
trading securities and recorded at fair values. Realized and unrealized gains
and losses on trading securities are included in other income. Securities not
classified as either trading or held-to-maturity are classified as
available-for-sale and reported at fair value, adjusted for other-than-temporary
declines in fair value, with unrealized gains and losses, net of tax, reported
as accumulated other comprehensive income. Securities are regularly reviewed for
differences between the cost and estimated fair value of each security for
factors that may indicate that a decline in fair value is other-than-temporary.
Some factors considered in evaluating whether or not a decline in fair value is
other-than-temporary include the duration and extent to which the fair value has
been less than cost and the Company&#146;s ability and intent to retain the
investment for a period of time sufficient to allow for a recovery in value.
Such reviews are inherently uncertain and the value of the investment may not
fully recover or may decline in future periods resulting in a realized loss.
Fair values of the majority of investments are based on quoted market prices.
Realized gains and losses are determined on the specific identification method.
Refer to Note 3. </FONT></P>
<P align=left><B><I><FONT face=serif size=2>Short-term
Investments</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Short-term
investments comprise money market accounts which are invested in short-term
funds, time deposits with banks and savings and loan associations, and other
investments expected to have maturities or redemptions greater than three months
and less than twelve months. The Company monitors any events or changes in
circumstances that may have a significant adverse effect on the fair value of
these investments. </FONT></P>
<P align=center><FONT face=serif size=2>41</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><I><FONT face=serif size=2>Other Investments</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other
investments consist primarily of investments through LLC structures, which are
accounted for under the equity or cost method of accounting. The aggregate cost
of the Company&#146;s cost method investments totaled $821,617 at December 31, 2008.
The Company monitors any events or changes in circumstances that may have had a
significant adverse effect on the fair value of these investments and makes any
necessary adjustments.</FONT></P>
<P align=left><B><I><FONT face=serif size=2>Property Acquired in Settlement of
Claims</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Property
acquired in settlement of claims is held for sale and valued at the lower of
cost or market. Adjustments to reported estimated realizable values and realized
gains or losses on dispositions are recorded as increases or decreases in claim
costs.</FONT></P>
<P align=left><B><I><FONT face=serif size=2>Property and
Equipment</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Property and
equipment are recorded at cost and are depreciated principally under the
straight-line method over the estimated useful lives (three to twenty-five
years) of the respective assets. Maintenance and repairs are charged to
operating expenses and improvements are capitalized.</FONT></P>
<P align=left><B><I><FONT face=serif size=2>Reserves for
Claims</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The total
reserve for all reported and unreported losses the Company incurred through
December 31, 2008 is represented by the reserves for claims. The Company&#146;s
reserves for unpaid losses and loss adjustment expenses are established using
estimated amounts required to settle claims for which notice has been received
(reported) and the amount estimated to be required to satisfy incurred claims of
policyholders which may be reported in the future. Despite the variability of
such estimates, management believes that the reserves are adequate to cover
claim losses resulting from pending and future claims for policies issued
through December 31, 2008. The Company continually reviews and adjusts its
reserve estimates as necessary to reflect its loss experience and any new
information that becomes available. Adjustments resulting from such reviews may
be significant.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Claims and
losses paid are charged to the reserves for claims. Although claims losses are
typically paid in cash, occasionally claims are settled by purchasing the
interest of the insured or the claimant in the real property. When this event
occurs, the acquiring company carries assets at the lower of cost or estimated
realizable value, net of any indebtedness on the property.</FONT></P>
<P align=left><B><I><FONT face=serif size=2>Income Taxes</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
makes certain estimates and judgments in determining income tax expense for
financial statement purposes. These estimates and judgments occur in the
calculation of certain tax assets and liabilities which arise from differences
in the timing of recognition of revenue and expense for tax and financial
statement purposes. The Company provides for deferred income taxes (benefits)
for the tax consequences on future years on temporary differences between the
financial statements&#146; carrying values and the tax bases of assets and
liabilities using currently enacted tax rates. The Company establishes valuation
allowances if it believes that it is more likely than not that some or all of
its deferred tax assets will not be realized. Refer to Note 8.</FONT></P>
<P align=left><B><I><FONT face=serif size=2>Premiums Written and Commissions to
Agents</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Premiums are
generally recorded and recognized as revenue at the time of closing of the
related transaction as the earnings process is considered complete. Title
insurance commissions earned by the Company&#146;s agents are recognized as expense
concurrently with premium recognition.</FONT></P>
<P align=left><B><I><FONT face=serif size=2>Exchange Services
Revenue</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Fees are
recognized at the signing of a binding agreement and investment earnings are
recognized as they are earned.</FONT></P>
<P align=center><FONT face=serif size=2>42</FONT></P>
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<PAGE>
<P align=left><B><I><FONT face=serif size=2>Fair Values of Financial
Instruments</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The carrying
amounts reported in the consolidated balance sheets for cash and cash
equivalents, short-term investments, premiums receivable, accrued interest and
dividends, accounts payable, commissions and reinsurance payable and current
income taxes payable approximate cost, which is what is reflected on the
consolidated balance sheets due to the short-term nature of these assets and
liabilities. Fair values for the majority of investment securities are based on
quoted market prices. Auction Rate Securities, (&#147;ARS&#148;) are valued using
discounted cash flow models to determine the estimated fair value of these
investments. Some of the inputs to ARS model are unobservable in the market and
are significant.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In September
2006, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Statement of Financial Accounting Standards (&#147;SFAS&#148;)
No. 157, &#147;Fair Value Measurements,&#148; (&#147;SFAS 157&#148;), which was effective for fiscal years beginning
after November 15, 2007 and for interim periods within those years. This
Statement defines fair value, establishes a framework for measuring fair value
and expands the related disclosure requirements. Relative to SFAS 157, the FASB
recently issued Financial Staff Position (&#147;FSP&#148;) 157-1, 157-2 and 157-3. FSP 157-1 amends SFAS 157 to exclude
SFAS No. 13, &#147;Accounting for Leases,&#148; and its related interpretive accounting
pronouncements that address leasing transactions, while FSP 157-2 delays the
effective date of the application of SFAS 157 to fiscal years beginning after
November 15, 2008 for all nonfinancial assets and nonfinancial liabilities,
except those that are recognized or disclosed at fair value in the financial
statements on a recurring basis. FSP 157-3 clarifies the application of SFAS 157
as it relates to the valuation of financial assets in a market that is not
active for those financial assets. This FSP is effective immediately and
includes those periods for which financial statements have not been issued. The
Company adopted SFAS 157 as of January 1, 2008.</FONT></P>
<P align=left><B><I><FONT face=serif size=2>Comprehensive
Income</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s accumulated other comprehensive income is comprised of unrealized
holding gains on available-for-sale securities, net of tax, and unrecognized
prior service cost and unrealized gains/losses associated with FASB Statement
No. 158 related to postretirement benefit liabilities, net of tax.</FONT></P>
<P align=left><B><I><FONT face=serif size=2>Stock-Based Compensation
</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
adopted the provisions of Statement of Financial Accounting Standards No. 123R
(&#147;SFAS 123R&#148;) on January 1, 2006, the first day of the Company&#146;s fiscal year
2006, using a modified prospective application, which provides for certain
changes to the method for valuing share-based compensation. Under the modified
prospective application, prior periods are not revised for comparative purposes.
The valuation provisions of SFAS 123R apply to new awards and to awards that are
outstanding on the effective date and subsequently modified or cancelled.
Estimated compensation expense for awards outstanding at the effective date are
recognized over their remaining service period using the compensation cost
calculated under FASB Statement No. 123, &#147;Accounting for Stock-Based
Compensation&#148; (&#147;SFAS 123&#148;). Under SFAS 123R, share-based compensation cost is
generally measured at the grant date, based on the estimated fair value of the
award, and is recognized as expense over the employee&#146;s requisite service
period. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As
share-based compensation expense recognized in the consolidated statements of
income is based on awards ultimately expected to vest, it has been reduced for
estimated forfeitures. SFAS 123R requires forfeitures to be estimated at the
time of grant and revised, if necessary, in subsequent periods if actual
forfeitures differ from those estimates.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Prior to
adopting the provisions of SFAS 123R, the Company recorded estimated
compensation expense for employee stock options based upon their intrinsic value
on the date of grant pursuant to Accounting Principles Board Opinion No. 25,
(&#147;APB 25&#148;), &#147;Accounting for Stock Issued to Employees,&#148; and provided the
required pro forma disclosures of SFAS 123. Because the Company established the
exercise price based on the fair market value of the Company&#146;s stock at the date
of grant, the stock options had no intrinsic value upon grant, and therefore no
estimated expense was recorded prior to adopting SFAS 123R. Each accounting
period, the Company reported the potential dilutive impact of stock options in
its diluted earnings per common share using the treasury-stock method.
Out-of-the-money stock options (i.e., the average stock price during the period
was below the exercise price of the stock option) were not included in diluted
earnings per common share as their effect was anti-dilutive. </FONT></P>
<P align=center><FONT face=serif size=2>43</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><I><FONT face=serif size=2>Recent Accounting
Standards</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In December
2007, the FASB issued SFAS No. 160, &#147;Noncontrolling Interests in Consolidated
Financial Statements&#151;an amendment of Accounting Research Bulletin (&#147;ARB&#148;) No. 51&#148; (&#147;SFAS 160&#148;). SFAS 160 amends
ARB 51 to establish accounting and reporting standards for the noncontrolling
interest in a subsidiary and for the deconsolidation of a subsidiary. This
Statement requires the recognition of a noncontrolling interest (minority
interest) as equity in the consolidated financial statements and separate from
the parent&#146;s equity. The amount of net income attributable to the noncontrolling
interest will be included in consolidated net income on the face of the income
statement. It also amends certain of ARB No. 51&#146;s consolidation procedures for
consistency with the requirements of SFAS 141(R). SFAS 160 is effective for
fiscal years, and interim periods within those fiscal years, beginning on or
after December 15, 2008, with earlier adoption prohibited. The Company is
currently evaluating the effect of adopting this new Statement and anticipates
that the Statement will not have a significant impact on the reporting of the
Company&#146;s results of operations. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In May 2008,
the FASB issued SFAS No. 162, &#147;The Hierarchy of Generally Accepted Accounting
Principles&#148; (&#147;SFAS 162&#148;). This Statement identifies the sources of accounting
principles and the framework for selecting the principles used in the
preparation of financial statements of nongovernmental entities that are
presented in accordance with GAAP. With the issuance of this statement, the FASB
concluded that the GAAP hierarchy should be directed toward the entity and not
its auditor, and, reside in the accounting literature established by the FASB,
as opposed to the American Institute of Certified Public Accountants (&#147;AICPA&#148;)
Statement on Auditing Standards No. 69, &#147;The Meaning of Present Fairly in
Conformity With Generally Accepted Accounting Principles.&#148; This Statement is
effective 60 days following the SEC&#146;s approval of the Public Company Accounting
Oversight Board amendments to Audit Standards AU Section 411, &#147;The Meaning of
Present Fairly in Conformity With Generally Accepted Accounting Principles.&#148; The
Company is currently evaluating the effect of adopting this new Statement and
anticipates that the Statement will not have a significant impact on the
reporting of the Company&#146;s results of operations.</FONT></P>
<P align=left><B><I><FONT face=serif size=2>Use of Estimates and
Assumptions</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities, and disclosures of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenues and expenses
during the reporting period and accompanying notes. Actual results could differ
materially from those estimates and assumptions used.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><i>Claims</i></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s reserves for claims are established using estimated amounts required
to settle claims for which notice has been received (reported) and the amount
estimated to be required to satisfy incurred claims of policyholders which may
be reported in the future (incurred but not reported, &#147;(IBNR)&#148;). In accordance
with the requirements of paragraph 17 of Statement of Financial Accounting
Standards No. 60, a provision for estimated future claims payments is recorded
at the time policy revenue is recorded. The Company records the claims provision
as a percentage of premium income. By their nature, title claims can often be
complex, vary greatly in dollar amounts, vary in number due to economic and
market conditions such as an increase in mortgage foreclosures; and involve
uncertainties as to ultimate exposure. In addition, some claims may require a
number of years to settle and determine the final liability for indemnity and
loss adjustment expense. The payment experience may extend for more than twenty
years after the issuance of a policy. Events such as fraud, defalcation and
multiple property defects can substantially and unexpectedly cause increases in
estimates of losses. Due to the length of time over which claim payments are
made and regularly occurring changes in underlying economic and market
conditions, these estimates are subject to variability. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Management
considers factors such as the Company&#146;s historical claims experience, case
reserve estimates on reported claims, large claims, actuarial projections and
other relevant factors in determining loss provision rates and the aggregate
recorded expected liability for claims. In establishing reserves, actuarial
projections are compared with recorded reserves to evaluate the adequacy of such
recorded claims reserves and any necessary adjustments are then recorded in
current operations. As the most recent claims experience develops and new
information becomes </FONT></P>
<P align=center><FONT face=serif size=2>44</FONT></P>
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<PAGE>
<P align=left><FONT face=serif size=2>available, the loss reserve estimate
related to prior periods will change to more accurately reflect updated and
improved emerging data. The Company reflects any adjustments to reserves in the
results of operations in the period in which new information (principally claims
experience) becomes available.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><i>Impairments</i></FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
considers relevant facts and circumstances in evaluating whether a credit or
interest-rate related impairment of a security is other than temporary. Relevant
facts and circumstances include the extent and length of time the fair value of
an investment has been below cost.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>There are a
number of risks and uncertainties inherent in the process of monitoring
impairments and determining if an impairment is other than temporary. These
risks and uncertainties include the risk that the economic outlook will be worse
than expected or have more of an impact on the issuer than anticipated, the risk
that the Company&#146;s assessment of an issuer&#146;s ability to meet all of its
contractual obligations will change based on changes in the characteristics of
that issuer, the risk that information obtained by the Company or changes in
other facts and circumstances leads management to change its intent to hold the
security to maturity or until it recovers in value and the risk that management
is making decisions based on misstated information in the financial statements
provided by issuers.</FONT></P>
<P align=left><B><FONT face=serif size=2>2. Statutory Restrictions on
Consolidated Stockholders&#146; Equity and Investments</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
has designated approximately $40,638,016 and $39,879,000 of retained earnings as
of December 31, 2008 and 2007, respectively, as appropriated to reflect the
required statutory premium reserve. See Note 8 for the tax treatment of the
statutory premium reserve.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As of
December 31, 2008 and 2007 approximately $55,987,000 and $63,219,000,
respectively, of consolidated stockholders&#146; equity represents net assets of the
Company&#146;s subsidiaries that cannot be transferred in the form of dividends,
loans or advances to the parent company under statutory regulations without
prior insurance department approval.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Bonds
totaling approximately $6,540,000 and $6,471,000 at December 31, 2008 and 2007
respectively, are on deposit with the insurance departments of the states in
which business is conducted. </FONT></P>
<P align=center><FONT face=serif size=2>45</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>3. Investments in
Securities</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
aggregate fair value, gross unrealized holding gains, gross unrealized holding
losses, and amortized cost for securities by major security type at December 31
were as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Gross</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Gross</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Estimated</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Amortized</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Unrealized</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Unrealized</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Fair</FONT> </TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>December 31, 2008</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Cost</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=serif size=2>Gains</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=serif size=2>Losses</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=serif size=2>Value</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Fixed Maturities-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Held-to-maturity, at amortized cost-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Obligations of states and political subdivisions</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 size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>451,681</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>10,899</FONT></B> </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 size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>-</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>462,580</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>451,681</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>10,899</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>&nbsp;-</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>462,580</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Fixed Maturities-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Available-for-sale, at fair value:</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Obligations of states and political subdivisions</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>72,818,413</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>2,178,686</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>986,503</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>74,010,596</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Corporate debt securities</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>13,105,170</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>606,001</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>13,267</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>13,697,904</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>85,923,583</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,784,687</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>999,770</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>87,708,500</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Equity Securities, available-for-sale at fair
      value-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Common stocks and nonredeemable preferred stocks</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 size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>9,158,785</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,446,389</FONT></B> </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 size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>639,877</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>9,965,297</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>9,158,785</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>1,446,389</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>639,877</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>9,965,297</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Short-term investments-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Certificates of deposit and other</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>15,725,513</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>-</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>-</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>15,725,513</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>15,725,513</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>-</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>&nbsp;-</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>15,725,513</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR>
    <TD width="98%" colSpan=13>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Gross</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Gross</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Estimated</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Amortized</FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Unrealized</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Unrealized</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Fair</FONT> </TD>
    <TD noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>December 31, 2007</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Cost</FONT> </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="4%" colSpan=2><FONT face=serif size=2>Gains</FONT> </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="4%" colSpan=2><FONT face=serif size=2>Losses</FONT> </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="4%" colSpan=2><FONT face=serif size=2>Value</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Fixed Maturities-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Held-to-maturity, at amortized cost-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Obligations of states and political subdivisions</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 size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,052,535</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>25,694</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 size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,078,229</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,052,535</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>25,694</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>1,078,229</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Fixed Maturities-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Available-for-sale, at fair value:</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Obligations of states and political subdivisions</FONT>
    </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>85,019,914</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,158,282</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>38,824</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>86,139,372</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Corporate debt securities</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>4,208,096</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>183,478</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>4,391,574</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>89,228,010</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,341,760</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>38,824</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>90,530,946</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Equity Securities, available-for sale at fair
      value-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Common stocks and nonredeemable preferred stocks</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 size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10,283,458</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,610,111</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 size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>461,703</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>14,431,866</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>10,283,458</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>4,610,111</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>461,703</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=serif size=2>14,431,866</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Short-term investments-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Certificates of deposit and other</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>21,222,533</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>21,222,533</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>21,222,533</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>21,222,533</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR>
    <TD width="98%" colSpan=13>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" colSpan=10>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
      scheduled maturities of fixed maturity securities at December 31, 2008
      were as follows:</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="98%" colSpan=13>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=5><FONT face=serif size=2>Available-for-Sale</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=5><FONT face=serif size=2>Held-to-Maturity</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Amortized</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Fair</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Amortized</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>Fair</FONT> </TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%">&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=center width="4%" colSpan=2><FONT face=serif size=2>Cost</FONT> </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="4%" colSpan=2><FONT face=serif size=2>Value</FONT> </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="4%" colSpan=2><FONT face=serif size=2>Cost</FONT> </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="4%" colSpan=2><FONT face=serif size=2>Value</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Due in one year or less</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,956,056</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,985,818</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Due after one year through five years</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>24,670,000</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>25,447,610</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>7,000</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>7,294</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Due five years through ten
      years</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=serif size=2>37,521,273</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=serif size=2>38,916,390</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>444,681</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=serif size=2>455,286</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Due
      after ten years</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>18,776,254</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>18,358,682</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>85,923,583</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>87,708,500</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>451,681</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>462,580</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>46</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Earnings on investments for the
years ended December 31 were as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </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=serif size=2>2007</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=serif size=2>2006</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp; <FONT face=serif size=2>Fixed maturities</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,415,009</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,241,522</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,784,337</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%">&nbsp; <FONT face=serif size=2>Equity
      securities</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>266,860</FONT></B> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>255,467</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>254,110</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp; <FONT face=serif size=2>Invested cash and other short-term investments</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>779,468</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>643,654</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>277,006</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%">&nbsp; <FONT face=serif size=2>Miscellaneous interest</FONT>
    </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="3%"><B><FONT face=serif size=2>97,398</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&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="3%"><FONT face=serif size=2>56,535</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>10,882</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Investment income</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>4,558,735</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,197,178</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>4,326,335</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=9>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="100%" colSpan=10>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Gross realized gains and losses on sales of
      available-for-sale securities for the years ended December 31 are
      summarized as follows:</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=9>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%">&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=center width="3%"><B><FONT face=serif size=2>2008</FONT></B> </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="4%" colSpan=2><FONT face=serif size=2>2007</FONT> </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="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face=serif size=2>2006</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp;&nbsp;<FONT face=serif size=2>Gross realized gains:</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Obligations of states and political subdivisions</FONT>
    </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2><STRONG>$</STRONG><FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>25,203</FONT></B> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>23,926</FONT>
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>20,380</FONT>
</TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Common stocks and nonredeemable preferred stocks</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=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>295,992</FONT></B> </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=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>900,855</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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>611,906</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT> </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="3%"><B><FONT face=serif size=2>321,195</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&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="3%"><FONT face=serif size=2>924,781</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>632,286</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp;&nbsp;<FONT face=serif size=2>Gross realized losses:</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Obligations of states and political subdivisions</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>(363,633)</FONT></B> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Common stocks and nonredeemable preferred stocks</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=right width="3%" bgColor=#c0c0c0><STRONG><FONT size=2>(2,759,845)</FONT></STRONG> </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=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(413,058)</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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(97,478)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</FONT> </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="3%"><STRONG><FONT size=2>(3,123,478)</FONT></STRONG> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&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="3%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>(413,058)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>(97,478)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%" bgColor=#c0c0c0>&nbsp;&nbsp;<FONT face=serif size=2>Net realized (loss)
      gain</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2><STRONG>$</STRONG><FONT size=3>
      </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>(2,802,283)</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>511,723</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>534,808</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Also
included in net realized (loss) gain on sales of investments in the Consolidated
Statements of Income for the years ended December 31, 2008, 2007 and 2006 is
($120,093), $410,148 and $16,250, respectively, of gains (losses) from the sale
of other investments.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
following table presents the gross unrealized losses on investment securities
and the fair value of the related securities, aggregated by investment category
and length of time that individual securities have been in a continuous loss
position at December 31, 2008 and 2007.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="68%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=5><FONT face=serif size=2>Less tha</FONT><FONT face=serif size=2>n
      12 M</FONT><FONT face=serif size=2>onths</FONT> </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="9%" colSpan=5><FONT face=serif size=2>12 Mon</FONT><FONT face=serif size=2>ths
      or Lo</FONT><FONT face=serif size=2>nger</FONT> </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="10%" colSpan=5><FONT face=serif size=2>T</FONT><FONT face=serif size=2>ot</FONT><FONT face=serif size=2>al</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="68%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>December 31, 2008</STRONG></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=serif size=2>Fair Value</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=serif size=2>Unrealized loss</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=serif size=2>Fair Value</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=serif size=2>Unreal</FONT><FONT face=serif size=2>ized loss</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=serif size=2>Fair Value</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=serif size=2>Unrealized loss</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Obligations of states and</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" 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="3%" 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="3%" 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="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="68%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>political subdivisions</FONT> </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=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>$</STRONG></FONT><FONT size=3>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>15,380,629</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(984,180)</FONT></B> </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=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>$</STRONG></FONT><FONT size=3>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>777,257</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(15,590)</FONT></B> </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=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>$</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>16,157,886</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face=serif size=2>(999,770)</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#ffffff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Total Fixed Maturity</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="4%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Securities</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>$</FONT></STRONG> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>15,380,629</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(984,180)</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>$</STRONG></FONT><FONT size=3> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>777,257</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(15,590)</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>$</STRONG></FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>16,157,886</STRONG></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face=serif size=2>(999,770)</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="68%" bgColor=#ffffff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Equity Securities</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>3,002,004</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>(559,410)</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>337,970</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>(80,467)</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><B><FONT face=serif size=2>3,339,974</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff><B><FONT face=serif size=2>(639,877)</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Total temporarily</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" 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="3%" 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="3%" 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="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="68%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>impaired securities</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>$</FONT></STRONG> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>18,382,633</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;</FONT><STRONG>(1,543,590)</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>$</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>1,115,227</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(96,057)</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><STRONG>$</STRONG></FONT><FONT size=3>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>19,497,860</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3></FONT><STRONG>(1,639,647)</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" bgColor=#ffffff colSpan=19>&nbsp;</TD>
    <TD width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="68%" bgColor=#ffffff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>December 31, 2007</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Obligations of states and</FONT>
</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" 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="3%" 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="3%" 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="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="68%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>political subdivisions</FONT> </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=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,798,040</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(20,164)</FONT> </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=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;</FONT><FONT face=serif size=2>5,460,380</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(18,660)</FONT> </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=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>11,258,420</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(38,824)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#ffffff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Total Fixed Maturity</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2></FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="4%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Securities</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5,798,040</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(20,164)</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;5,460,380</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(18,660)</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>11,258,420</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(38,824)</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="68%" bgColor=#ffffff><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Equity Securities</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>2,652,452</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>(425,176)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>174,927</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>(36,527)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=serif size=2>2,827,379</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>(461,703)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Total temporarily</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="68%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>impaired securities</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>8,450,492</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(445,340)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;</FONT><FONT face=serif size=2>5,635,307</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(55,187)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>14,085,799</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(500,527)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As of
December 31, 2008, the Company held $16,157,886 in fixed maturity securities
with unrealized losses of $999,770. Due to the disruption in 2008 which reduced
liquidity and led to wider spreads, the Company saw an increase in unrealized
losses in its securities portfolio. The maturity duration of the debt securities
range from less than one to more than ten years. The decline in fair value of
the fixed maturity securities can be attributed primarily to changes in market
interest rates and changes in spreads over treasury securities. Because the
Company has the intent and ability to hold these securities until a recovery of
fair value, which may be maturity, the Company does not consider these
investments to be other-than-temporarily impaired. </FONT></P>
<P align=center><FONT face=serif size=2>47</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
unrealized losses related to holdings of equity securities were caused by market
changes that the Company considers to be temporary. Since the Company has the
intent and ability to hold these equity securities until a recovery of fair
value, the Company does not consider these investments other-than-temporarily
impaired at December 31, 2008. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Factors
considered in determining whether a loss is temporary include the length of time
and extent to which fair value has been below cost, the financial condition and
prospects of the issuer (including credit ratings and analyst reports) and
macro-economic changes. A total of 67 and 57 securities had unrealized losses at
December 31, 2008 and December 31, 2007, respectively. Reviews of the values of
securities are inherently uncertain and the value of the investment may not
fully recover, or may decline in future periods resulting in a realized loss.
During 2008, the Company recorded an other-than-temporary impairment charge in
the amount of approximately $1.2 million related to securities. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2><EM>Valuation Hierarchy</EM>. SFAS 157 establishes a valuation hierarchy
for disclosure of the inputs to valuation used to measure fair value. This
hierarchy prioritizes the inputs into three broad levels as follows. Level 1
inputs to the valuation methodology are quoted prices (unadjusted) in active
markets for identical assets or liabilities. Level 2 inputs to the valuation
methodology are quoted prices for similar assets and liabilities in active
markets or inputs that are observable for the asset or liability, either
directly or indirectly through market corroboration, for substantially the full
term of the financial instrument. Level 3 inputs are unobservable inputs based
on the Company&#146;s own assumptions used to measure assets and liabilities at fair
value. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
following table presents, by level, the financial assets carried at fair value
measured on a recurring basis as of December 31, 2008. The table does not
include cash on hand and also does not include assets which are measured at
historical cost or any basis other than fair value.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="76%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Available-for-sale securities</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&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="4%" colSpan=2><FONT face=serif size=2>Car</FONT><FONT face=serif size=2>rying
      Balance</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=serif size=2>Level 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="4%" colSpan=2><FONT face=serif size=2>Level 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="4%" colSpan=2><FONT face=serif size=2>Level 3</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="76%" bgColor=#c0c0c0><FONT face=serif size=2>Fixed maturities</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>87,708,500</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>80,111,580</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>7,596,920</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="76%"><FONT face=serif size=2>Equity</FONT>
    </TD>
    <TD noWrap align=left width="1%">&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=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>9,965,297</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>9,965,297</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>-</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #c0c0c0 2pt solid" noWrap align=right width="76%" bgColor=#c0c0c0><FONT face=serif size=2>Total</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>97,673,797</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>9,965,297</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>80,111,580</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>7,596,920</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
following table presents a reconciliation of the Company&#146;s assets measured at
fair value using significant unobservable inputs (Level 3) as defined in SFAS
157 for the year ended December 31, 2008: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="45%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="94%"><FONT face=serif size=2>Changes in fair value during the year
      ended December 31, 2008:</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%" colSpan=2><FONT face=serif size=2>Level 3</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Beginning balance at January 1, 2008</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="94%"><FONT face=serif size=2>Transfers into
      Level 3</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>8,087,630</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="94%" bgColor=#c0c0c0><FONT face=serif size=2>Unrealized loss - included in other comprehensive income</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(490,710)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #ffffff 2pt solid" noWrap align=right width="94%"><FONT face=serif size=2>Ending balance at December 31,
      2008</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT face=serif size=2>7,596,920</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%">&nbsp;</TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2><EM>Valuation Techniques</EM>. A financial instrument&#146;s classification
within the valuation hierarchy is based upon the lowest level of input that is
significant to the fair value measurement.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Equity
securities are measured at fair value using quoted active market prices and are
classified within Level 1 of the valuation hierarchy. The fair value of fixed
maturity investments included in the Level 2 category was based on the market
values obtained from pricing services. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Level 2
category generally includes corporate bonds, agency bonds and municipal bonds. A
number of the Company&#146;s investment grade corporate bonds are frequently traded
in markets that are not active or use valuation models, which use observable
market inputs, in addition to traded prices. Substantially all of these model
input assumptions are directly observable in the marketplace or can be derived
or supported by observable market data. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s investments in student loan auction rate securities (&#147;ARS&#148;) are its
only Level 3 assets, and were transferred from Level 2 because quoted prices
from broker-dealers were unavailable due to the failure of auctions. Valuations
using discounted cash flow models were used to determine the estimated fair
value of these investments as of December 31, 2008. Some of the inputs to this
model are unobservable in the market and are significant. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>ARS were
structured to provide purchase and sale liquidity through a Dutch auction
process. Due to the increasingly stressed and liquidity-constrained environment
in money markets, the auction process for ARS began failing in February 2008 as
broker-dealers ceased supporting auctions with their own capital. All of the Company&#146;s
ARS are rated investment grade, comprised entirely of student loan ARS and are
substantially guaranteed by government-sponsored enterprises, and the Company
continues to receive interest income.</FONT></P>
<P align=center><FONT face=serif size=2>48</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>4. Property and
Equipment</FONT></B></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Property and equipment and estimated
useful lives at December 31 are summarized as follows: </FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </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=serif size=2>2007</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Land</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,107,582</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>1,107,582</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Title plant</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>-</FONT></B>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>200,000</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Office buildings and improvements (25
      years)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3,173,432</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3,178,632</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Furniture, fixtures and equipment (3 to 10
      years)</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>5,476,101</FONT></B> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>6,129,659</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Automobiles (3 years)</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><B><FONT face=serif size=2>667,659</FONT></B> </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=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>586,297</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Total</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>10,424,774</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>11,202,170</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Less
      accumulated depreciation</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><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;(6,002,456</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </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=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(5,923,279</FONT><FONT size=2>)</FONT><FONT size=3>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="90%"><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Property
      and equipment, net</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>&nbsp;4,422,318</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%"><FONT face=serif size=2>5,278,891</FONT>&nbsp;&nbsp;
  </TD></TR></TABLE><BR>
<P align=left><B><FONT face=serif size=2>5. Reinsurance</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
assumes and cedes reinsurance with other insurance companies in the normal
course of business. Premiums assumed and ceded were approximately $167,000 and
$275,000, respectively, for 2008, $43,000 and $264,000, respectively, for 2007
and $22,000 and $442,000, respectively, for 2006. Ceded reinsurance is comprised
of excess of loss treaties, which protects against losses over certain amounts.
The Company remains liable to the insured for claims under ceded insurance
policies in the event that the assuming insurance companies are unable to meet
their obligations under these contracts. The Company has not paid or recovered
any reinsured losses during the three years ended December 31, 2008.</FONT></P>
<P align=left><B><FONT face=serif size=2>6. Reserves for Claims</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Changes in
the reserves for claims for the years ended December 31 are summarized as
follows based on the year in which the policies were written:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%" colSpan=2><FONT size=+0><B><FONT face=serif size=2>2008</FONT></B>
    </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="2%" colSpan=2><FONT size=+0><FONT face=serif size=2>2007</FONT> </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 size=+0><FONT face=serif size=2>2006</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Balance, beginning of
      year</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>36,975,000</FONT></B> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>36,906,000</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>34,857,000</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Provisions related to:</FONT>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=+0><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face=serif>Current year</FONT></FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>15,564,722</FONT></B> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>9,787,529</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>9,845,776<FONT size=3>&nbsp;&nbsp;</FONT></FONT>
    </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Prior years</FONT>&nbsp; </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 size=+0><B><FONT face=serif size=2>(358,085</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>
</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>347,190</FONT> </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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>(2,440,565</FONT><FONT size=2>)</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total provision charged to operations</FONT>&nbsp;
      </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="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>15,206,637</FONT></B> </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>10,134,719</FONT>
      </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>7,405,211</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Claims paid, net of recoveries,
      related to:</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Current year</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>(5,937,616</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(624,484</FONT><FONT size=2>)</FONT> </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="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(618,965</FONT><FONT size=2>)</FONT>&nbsp;&nbsp;
    </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Prior years</FONT>&nbsp; </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 size=+0><B><FONT face=serif size=2>(7,006,021</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>
    </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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>(9,441,235</FONT><FONT size=2>)</FONT> </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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2><STRONG>&nbsp;</STRONG>(4,737,246</FONT><FONT size=2>)</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total claims paid, net of recoveries</FONT>&nbsp;
    </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="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;(12,943,637</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><STRONG>&nbsp;&nbsp;&nbsp;</STRONG>(10,065,719</FONT><FONT size=2>)</FONT> </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(5,356,211</FONT><FONT size=2>)</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="90%"><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Balance, end of year</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"><FONT size=+0><B><FONT face=serif size=2>39,238,000</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>36,975,000</FONT>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>36,906,000</FONT>&nbsp;&nbsp; </FONT></TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
continually refines its reserve estimates as current loss experience develops
and credible data emerges. Movements in the reserves related to prior periods
were primarily the result of changes to estimates to better reflect the latest
reported loss data. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
provision for claims as a percentage of net premiums written was 23.9%, 14.5%
and 10.5% in 2008, 2007 and 2006, respectively. The change in estimate for
calendar year 2008 resulted primarily from policy year 2008, which incurred
three large claims totaling approximately $6,800,000. In addition, the Company incurred
unfavorable experience during 2008 for claims related to policy year 2006. The change in estimate for
calendar year 2007 resulted primarily from policy year 2006, which incurred two
large fraud-related claims. The change in estimate for calendar year 2006
resulted primarily from lower than expected large claims payments for 2005. Due
to variances between actual and expected loss payments, loss development is
subject to significant variability. A large claim is defined as a claim with
incurred losses exceeding $250,000. Due to the small volume of large claims, the
long-tail nature of title insurance claims and the
inherent uncertainty in loss emergence patterns, large claim activity can vary
significantly between policy years. The estimated development of large claims by
policy year is therefore subject to significant changes as experience
develops.</FONT></P>
<P align=center><FONT face=serif size=2>49</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>

<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In
management&#146;s opinion, the reserves are adequate to cover claim losses which
might result from pending and future claims.</FONT></P>
<P align=left><B><FONT face=serif size=2>7. Earnings (Loss) Per Share and Stock
Options</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Basic
earnings per common share is computed by dividing net income by the
weighted-average number of common shares outstanding during the reporting
period. Diluted earnings per common share is computed by dividing net income by
the combination of dilutive potential common stock, comprised of shares issuable
under the Company&#146;s share-based compensation plans and the weighted-average
number of common shares outstanding during the reporting period. Dilutive common
share equivalents includes the dilutive effect of in-the-money share-based
awards, which are calculated based on the average share price for each period
using the treasury stock method. Under the treasury stock method, the exercise
price of a share-based award, the amount of compensation cost, if any, for
future service that the Company has not yet recognized, and the amount of
estimated tax benefits that would be recorded in additional paid-in capital, if
any, when the share-based awards are exercised are assumed to be used to
repurchase shares in the current period. The incremental dilutive potential
common shares, calculated using the treasury stock method were 29,288, and
36,289 for 2007 and 2006, respectively.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
following table sets forth the computation of basic and diluted earnings per
share for the years ended December 31:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT><STRONG>For the Years Ended December 31,</STRONG></FONT>&nbsp;
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><B><FONT face=serif size=2>2008</FONT></B>
    </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 size=+0><FONT face=serif size=2>2007</FONT> </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 size=+0><FONT face=serif size=2>2006</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Net (loss) income</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT><STRONG>(1,182,799</STRONG></FONT><FONT size=2><STRONG>)</STRONG></FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>8,402,335</FONT> </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 size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>13,185,434</FONT>&nbsp;&nbsp;
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Weighted average common shares
      outstanding - Basic</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>2,364,361</FONT></B> </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>2,479,321</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>2,527,927</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Incremental shares
      outstanding assuming</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=+0>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>the exercise of dilutive stock options and SARS (share
      settled)</FONT> </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 size=+0><B><FONT face=serif size=2>-</FONT></B>
      </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 size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>29,288</FONT>
    </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 size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>36,289</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Weighted average common shares outstanding - Diluted</FONT>
    </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="3%"><FONT size=+0><B><FONT face=serif size=2>2,364,361</FONT></B>
      </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="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>2,508,609</FONT>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>2,564,216</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Basic earnings per common share</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>(0.50</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>3.39</FONT>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>5.22</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="85%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Diluted earnings per common share</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(0.50</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>3.35</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>5.14</FONT>&nbsp;&nbsp;
      </FONT></TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Due to a net
loss in 2008, the treasury stock method for the calculation of diluted shares is
not appropriate. In 2007, 3,000&nbsp;Stock Appreciation Rights
(&#147;SARS&#148;)&nbsp;were excluded from the computation of diluted earnings per share
because their exercise price was greater than the stock price and therefore
considered anti-dilutive. All outstanding options and SARS during 2006 were
included in the computation of diluted earnings per share because the options&#146;
exercise prices were less than or equal to the average market price of the
common shares.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
has adopted Employee Stock Option Purchase Plans (the &#147;Plans&#148;) under which
options or SARS to purchase shares (not to exceed 500,000 shares) of the
Company&#146;s stock may be granted to key employees or directors of the Company at a
price not less than the market value on the date of grant. SARS and options,
which are predominantly incentive stock options, are exercisable and vest
immediately or within one year or at 10% to 20% per year beginning on the date
of grant and generally expire in five to ten years. All SARS issued to date have
been share settled only. There were not any shares issued from SARS exercised in
2008, 2007 or 2006. </FONT></P>
<P align=center><FONT face=serif size=2>50</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>A summary of share-based award
transactions for all share-based award plans follows:</FONT></P>

<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Weighted</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="1%"><FONT face=serif size=2><STRONG>Average</STRONG><FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp; </TD>
    <TD noWrap align=center width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Average</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"><B><FONT face=serif size=2>Remaining</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Aggregate</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp; </TD>
    <TD noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>Number</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Exercise</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"><B><FONT face=serif size=2>Contractual</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Intrinsic</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><B><FONT face=serif size=2>of Shares</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Pr</FONT></B><B><FONT face=serif size=2>ice</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"><B><FONT face=serif size=2>Term (years)</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Value</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Outstanding as of January 1, 2006</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>82,001</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>20.50</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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>SARS
      granted</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>3,000</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>43.78</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Options exercised</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>(9,340</FONT><FONT size=2>)</FONT> </TD>
    <TD noWrap align=right width="1%" 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=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>17.21</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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>Options
      cancelled/forfeited/expired</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>(1,610</FONT><FONT size=2>)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></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="3%"><FONT face=serif size=2>22.12</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></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="3%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Outstanding as of December 31, 2006</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>74,051</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>21.82</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>4.34</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>$</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp;&nbsp;<B><FONT face=serif size=2>2,338,246</FONT></B>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>SARS
      granted</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>3,000</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>49.04</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Options exercised</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>(15,390</FONT><FONT size=2>)</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</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=serif size=2>23.74</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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>Options
      cancelled/forfeited/expired</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>(1,181</FONT><FONT size=2>)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></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="3%"><FONT face=serif size=2>17.38</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;</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="3%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Outstanding as of December 31, 2007</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>60,480</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>22.77</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>4.11</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp;<B><FONT face=serif size=2>1,377,390</FONT></B>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>SARS
      granted</FONT> </TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>3,000</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>47.88</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><FONT face=serif size=2>Options exercised</FONT> </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (12,360</FONT><FONT size=2>)</FONT> </TD>
    <TD noWrap align=right width="1%" 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=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>18.67</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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%"><FONT face=serif size=2>Options
      cancelled/forfeited/expired</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>(4,050</FONT><FONT size=2>)</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></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="3%"><FONT face=serif size=2>29.96</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD 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=right width="3%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><B><FONT face=serif size=2>Outstanding as of December 31, 2008</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>47,070</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>24.83</STRONG></FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>3.67</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp;<B><FONT face=serif size=2>666,079</FONT></B>&nbsp;&nbsp; </TD></TR>
  <TR>
    <TD noWrap width="100%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><B><FONT face=serif size=2>Exercisable as of December 31, 2008</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>33,475</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>26.29</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>3.72</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp;<B><FONT face=serif size=2>439,377</FONT></B>&nbsp;&nbsp; </TD></TR>
  <TR>
    <TD noWrap width="100%" colSpan=11>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="82%" bgColor=#c0c0c0><B><FONT face=serif size=2>Unvested as of December 31, 2008</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><B><FONT face=serif size=2>13,595</FONT></B> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; &nbsp;<FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>21.26</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>3.53</STRONG></FONT>&nbsp;
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp;<B><FONT face=serif size=2>226,702</FONT></B>&nbsp;&nbsp;
</TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
aggregate intrinsic value is calculated as the difference between the exercise
price of the underlying awards and the quoted price of the Company&#146;s common
stock at December 31, 2008. In 2006 and 2007, there were no options or SARS excluded from the
calculation as all options and SARS were in the money. The intrinsic value of
options exercised during 2008 was approximately $327,000.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following tables summarize
information about fixed stock options outstanding at December 31, 2008:
</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="70%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="12%" colSpan=6><FONT size=+0><FONT face=serif size=2>O</FONT><FONT face=serif size=2>ptions
      Outstanding at Yea</FONT><FONT face=serif size=2>r-End</FONT> </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=5><FONT size=+0><FONT face=serif size=2>Options Exercisable at Year-En</FONT><FONT face=serif size=2>d</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="70%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="3%"><FONT size=+0><FONT face=serif size=2>Weighted</FONT>
      </FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Weighted</FONT>
      </FONT></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="2%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="3%" colSpan=3><FONT size=+0><FONT face=serif size=2>Weighted</FONT>
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="70%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0><FONT face=serif size=2>Average</FONT>
      </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Average</FONT>
      </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="2%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%" colSpan=3><FONT size=+0><FONT face=serif size=2>Average</FONT>
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="70%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0><FONT face=serif size=2>Number</FONT>
      </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0><FONT face=serif size=2>Remaining</FONT>
      </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Exercise</FONT>
      </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="2%"><FONT size=+0><FONT face=serif size=2>Number</FONT>
      </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%" colSpan=3><FONT size=+0><FONT face=serif size=2>Exercise</FONT>
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=7><FONT size=+0><FONT face=serif size=2>Range of Exercise Price</FONT><FONT face=serif size=2>s</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="70%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT size=+0><FONT face=serif size=2>Outstanding</FONT> </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="3%"><FONT size=+0><FONT face=serif size=2>Contractual Life</FONT> </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="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Price</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%"><FONT size=+0><FONT face=serif size=2>Exercisable</FONT> </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="3%" colSpan=3><FONT size=+0><FONT face=serif size=2>Price</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;<FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>10.00</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$<FONT size=3> </FONT></FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>12.00</FONT> </FONT></TD>
    <TD noWrap align=right width="70%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>8,870</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1.4</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>11.29</FONT> </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>6,155</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>11.19</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>13.06</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>15.58</FONT>
    </FONT></TD>
    <TD noWrap align=right width="70%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>5,350</FONT>
    </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>2.2</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>14.93</FONT>
    </FONT></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="2%"><FONT size=+0><FONT face=serif size=2>3,750</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>14.90</FONT>
    </FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>17.25</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>19.35</FONT> </FONT></TD>
    <TD noWrap align=right width="70%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>2,150</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>3.2</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>18.96</FONT> </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,100</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>18.93</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>20.00</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>22.75</FONT>
    </FONT></TD>
    <TD noWrap align=right width="70%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>13,500</FONT>
      </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>3.5</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>21.24</FONT>
    </FONT></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="2%"><FONT size=+0><FONT face=serif size=2>7,750</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>20.99</FONT>
    </FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>25.28</FONT> </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 size=2>-</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 size=+0></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>36.79</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="70%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>9,200</FONT> </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="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>5.5</FONT> </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 size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>31.05</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>7,470</FONT> </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>31.05</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp;&nbsp;<FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>10.00</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$<FONT size=3>
      </FONT></FONT></FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>36.79</FONT>
    </FONT></TD>
    <TD noWrap align=right width="70%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>39,070</FONT> </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>3.3</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>20.30</FONT>
    </FONT></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT size=+0><FONT face=serif size=2>26,225</FONT> </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>20.60</FONT>
    </FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR>
    <TD width="98%" colSpan=19><FONT size=+0>&nbsp; </FONT></TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="70%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="12%" colSpan=6><FONT size=+0><FONT face=serif size=2>SARS Outstanding at Year</FONT><FONT face=serif size=2>-End</FONT> </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=5><FONT size=+0><FONT face=serif size=2>SARS Exer</FONT><FONT face=serif size=2>cisable at Year-End</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="70%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0><FONT face=serif size=2>Weighted</FONT>
      </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Weighted</FONT>
      </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="2%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%" colSpan=3><FONT size=+0><FONT face=serif size=2>Weighted</FONT>
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="70%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0><FONT face=serif size=2>Average</FONT>
      </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Average</FONT>
      </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="2%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%" colSpan=3><FONT size=+0><FONT face=serif size=2>Average</FONT>
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="70%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0><FONT face=serif size=2>Number</FONT>
      </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0><FONT face=serif size=2>Remaining</FONT>
      </FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Exercise</FONT>
      </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="2%"><FONT size=+0><FONT face=serif size=2>Number</FONT>
      </FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="3%" colSpan=3><FONT size=+0><FONT face=serif size=2>Exercise</FONT>
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="9%" colSpan=7><FONT size=+0><FONT face=serif size=2>Range of Exercise Prices</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="70%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT size=+0><FONT face=serif size=2>Outstanding</FONT> </FONT></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="3%"><FONT size=+0><FONT face=serif size=2>Contractual Life</FONT> </FONT></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="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Price</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%"><FONT size=+0><FONT face=serif size=2>Exercisable</FONT> </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="3%" colSpan=3><FONT size=+0><FONT face=serif size=2>Price</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;<FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>43.78</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>-</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>49.04</FONT>
      </FONT></TD>
    <TD noWrap align=right width="70%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>8,000</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>5.4</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>46.96</FONT> </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>7,250</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp; </FONT>46.87</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR></TABLE>
<BR>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In 2008, 9,365 options and SARS
vested with a fair value of approximately $91,000.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>During the
second quarter of 2008, the Company issued 3,000 share settled SARS to the
directors of the Company. SARS give the holder the right to receive stock in the
appreciation in the value of shares of stock from the grant date for a specified
period of time, and as a result, are accounted for as equity instruments. As
such, these were valued using the Black-Scholes option valuation model. The fair
value of each award is estimated on the date of grant </FONT></P>
<P align=center><FONT face=serif size=2>51</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>using the Black-Scholes option valuation
model with the weighted-average assumptions noted in the following table.
Expected volatilities are based on both the implied and historical volatility of
the Company&#146;s stock. The Company uses historical data to estimate option
exercise and employee termination within the valuation model. The expected term
of awards represents the period of time that options granted are expected to be
outstanding. The interest rate for periods during the expected life of the award
is based on the U.S. Treasury yield curve in effect at the time of the grant.
The weighted-average fair value for the SARS issued was $12.263 and was
estimated using the following weighted-average assumptions:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="50%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="97%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT><STRONG>2008</STRONG></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0><FONT face=serif size=2>Expected Life in Years</FONT> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>5.0</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="97%"><FONT face=serif size=2>Volatility</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"><B><FONT face=serif size=2>24.17</FONT></B><STRONG><FONT size=2>%</FONT></STRONG> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0><FONT face=serif size=2>Interest Rate</FONT> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>3.09</FONT></B><STRONG><FONT size=2>%</FONT></STRONG> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="97%"><FONT face=serif size=2>Yield
      Rate</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"><B><FONT face=serif size=2>0.60</FONT></B><STRONG><FONT size=2>%</FONT></STRONG>
</TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The fair
value of each SAR granted is estimated on the date of grant using the
Black-Scholes option pricing method with the following weighted-average
assumptions:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="85%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="85%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face=serif size=2>2007</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face=serif size=2>2006</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Expected Life in Years</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>5.0</FONT></B> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5.0</FONT> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5.0</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="85%"><FONT face=serif size=2>Volatility</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=center width="3%"><B><FONT face=serif size=2>24</FONT></B><STRONG><FONT size=2>%</FONT></STRONG> </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>25</FONT><FONT size=2>%</FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>27</FONT><FONT size=2>%</FONT> </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Interest Rate</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>3.1</FONT></B><STRONG><FONT size=2>%</FONT></STRONG> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4.6</FONT><FONT size=2>%</FONT> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="3%" bgColor=#c0c0c0><FONT face=serif size=2>5.0</FONT><FONT size=2>%</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="85%"><FONT face=serif size=2>Yield
      Rate</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=center width="3%"><B><FONT face=serif size=2>0.6</FONT></B><STRONG><FONT size=2>%</FONT></STRONG> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>0.5</FONT><FONT size=2>%</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"><FONT face=serif size=2>0.6</FONT><FONT size=2>%</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>There was
approximately $93,000 of compensation expense relating to shares vesting on or
before December 31, 2008 included in salaries, employee benefits and payroll
taxes of the consolidated statements of income (loss). As of December 31, 2008,
there was approximately $155,000 of total unrecognized compensation cost related
to unvested share-based compensation arrangements granted under the Company&#146;s
stock awards plans. That cost is expected to be recognized over a
weighted-average period of 1.2 years.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
estimated weighted-average grant-date fair value of SARS granted for the years
ended December 31 was as follows:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><FONT face=serif size=2><FONT size=3>&nbsp; </FONT><STRONG>For
      the Years Ended December 31,</STRONG></FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2007</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Exercise price equal to market price on
      date of grant:</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" 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="1%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif size=2>Weighted-average market price</FONT> </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B>
    </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp; </FONT><STRONG>47.88</STRONG></FONT> </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp; </FONT>49.04</FONT> </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp; </FONT>43.78</FONT> </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Weighted-average grant-date fair value</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>12.26</FONT></B> </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=serif size=2>14.68</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>13.96</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>There are no
stock options or SARS granted where the exercise price is less than the market
price on the date of grant.</FONT></P>
<P align=left><B><FONT face=serif size=2>8. Income Taxes </FONT></B></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The components of income tax
(benefit) expense for the years ended December 31 are summarized as
follows:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT><STRONG>For the Years Ended December 31,</STRONG></FONT>&nbsp;
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><B><FONT face=serif size=2>2008</FONT></B>
    </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 size=+0><FONT face=serif size=2>2007</FONT> </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 size=+0><FONT face=serif size=2>2006</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Current:</FONT> </FONT></TD>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="3%" 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="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Federal</FONT> </FONT></TD>
    <TD noWrap align=right width="84%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(1,857,000</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>
    </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>3,489,000</FONT> </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>4,042,000</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>State</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" bgColor=#c0c0c0></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=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>24,000</FONT></B>
      </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>237,000</FONT>
      </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>334,000</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Total</FONT> </FONT></TD>
    <TD noWrap align=left width="84%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(1,833,000</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>
    </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>3,726,000</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>4,376,000</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Deferred (benefit)
      expense:</FONT> </FONT></TD>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Federal</FONT> </FONT></TD>
    <TD noWrap align=left width="84%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(147,097</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>
</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>(315,518</FONT><FONT size=2>)</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>(210,552</FONT><FONT size=2>)</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>State</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%" 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="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>(53,903</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>11,518</FONT>
    </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(21,448</FONT><FONT size=2>)</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT>Total</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"></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="3%"><FONT size=+0><B><FONT face=serif size=2>(201,000</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>
</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>(304,000</FONT><FONT size=2>)</FONT> </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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>(232,000</FONT><FONT size=2>)</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Total</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="84%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp; </FONT><STRONG>(2,034,000</STRONG></FONT><FONT size=2><STRONG>)</STRONG></FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp; </FONT>3,422,000</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp; </FONT>4,144,000</FONT>&nbsp;&nbsp;
  </FONT></TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>For state
income tax purposes, ITIC and NE-ITIC generally pay only a gross premium tax
found in premium and retaliatory taxes in the consolidated statements of income
(loss).</FONT></P>
<P align=center><FONT face=serif size=2>52</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>At December
31, the approximate tax effect of each component of deferred income tax assets
and liabilities is summarized as follows:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>For
      the Years Ended December 31,</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </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=serif size=2>2007</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Deferred income tax assets:</FONT>
    </TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Recorded reserves for claims, net of statutory premium
      reserves</FONT> </TD>
    <TD noWrap align=right width="1%"><B><FONT face=serif size=2>$</FONT></B>
    </TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>847,755</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>1,209,018</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accrued benefits and retirement services</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,568,958</FONT></B> </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=serif size=2>2,359,699</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>FASB Statement No. 158</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>59,022</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>31,325</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other-than-temporary impairment of assets</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>428,609</FONT></B> </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=serif size=2>-</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Reinsurance and commissions payable</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>18,263</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>32,829</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Allowance for doubtful accounts</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>440,980</FONT></B> </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=serif size=2>737,800</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net operating loss carryforward</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>83,000</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>64,000</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Excess of book over tax depreciation</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>73,594</FONT></B> </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=serif size=2>10,125</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other</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="3%"><B><FONT face=serif size=2>260,205</FONT></B> </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="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>221,784</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</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><B><FONT face=serif size=2>4,780,386</FONT></B> </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>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4,666,580</FONT>&nbsp;&nbsp;
</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Deferred income tax liabilities:</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net unrealized gain on investments</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>867,044</FONT></B> </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=serif size=2>1,854,147</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Discount accretion on tax-exempt obligations</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>18,984</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>24,515</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other</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><B><FONT face=serif size=2>53,063</FONT></B> </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>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>162,423</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Total</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="3%"><B><FONT face=serif size=2>939,091</FONT></B> </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="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>2,041,085</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Net deferred income tax assets</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>3,841,295</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>2,625,495</FONT>&nbsp;&nbsp;
</TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>At December
31, 2008 and 2007, no valuation allowance was recorded. Based upon the Company&#146;s
historical results of operations, the existing financial condition of the
Company and management&#146;s assessment of all other available information,
management believes that it is more likely than not that the benefit of these
net deferred income tax assets will be realized.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>A
reconciliation of income tax as computed for the years ended December 31 at the
U.S. federal statutory income tax rate (34%) to income tax expense
follows:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>For the Years Ended December
      31,</STRONG></FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><B><FONT face=serif size=2>2008</FONT></B>
    </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 size=+0><FONT face=serif size=2>2007</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>2006</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Anticipated income tax
      (benefit) expense</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>(1,093,712</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>4,020,274</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>5,892,008</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT>Increase (reduction) related
      to:</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>State income taxes, net of federal income tax benefit</FONT>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>15,840</FONT></B> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>156,420</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>220,400</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Tax-exempt interest income (net of amortization)</FONT>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(970,303</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>
</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>(1,247,536</FONT><FONT size=2>)</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>(2,044,576</FONT><FONT size=2>)</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Misclassified tax-exempt interest related to prior
      years</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>-</FONT></B> </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 size=+0><FONT face=serif size=2>425,000</FONT> </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 size=+0><FONT face=serif size=2>-</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Other, net</FONT>&nbsp; </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="3%"><FONT size=+0><B><FONT face=serif size=2>14,175</FONT></B>
      </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="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>67,842</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>76,168</FONT>&nbsp;&nbsp;
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="86%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>(Benefit) provision for income taxes</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>(2,034,000</STRONG></FONT><FONT size=2><STRONG>)</STRONG></FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT>&nbsp;
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>3,422,000</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT>&nbsp;
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>4,144,000</FONT>&nbsp;&nbsp; </FONT></TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>During the
fourth quarter of 2007, the Company discovered certain understatements in the
provision for income taxes in its financial statements in 2006 and the first
three quarters of 2007 relating to taxable municipal bonds that had been
previously misclassified as tax exempt by the Company&#146;s custodian
bank.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
adopted the provisions of FASB Interpretation No. 48, &#147;Accounting for
Uncertainty in Income Taxes &#150; an interpretation of FASB Statement No. 109,&#148;
(&#147;FIN 48&#148;) on January 1, 2007. This interpretation requires that the Company
recognize in its financial statements the impact of a tax position if that
position is more likely than not of being sustained on an audit, based on the
technical merits of the position. As a result of the implementation of FIN 48,
the Company made a comprehensive review of its uncertain tax positions in
accordance with recognition standards established by FIN 48. In this regard, an
uncertain tax position represents the Company&#146;s expected treatment of a tax
position taken in a filed tax return, or planned to be taken in a future tax
return, that has not been reflected in measuring income tax expense for
financial reporting purposes.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The amount
of unrecognized tax benefit or liability may increase or decrease in the future
for various reasons, including adding amounts for current tax year positions,
expiration of open income tax returns due to the statute of limitation, changes
in management&#146;s judgment about the level of uncertainty, status of examinations,
litigation and legislative activity and the additions or eliminations of
uncertain tax positions.</FONT></P>
<P align=center><FONT face=serif size=2>53</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company&#146;s policy is to report interest and penalties related to unrecognized tax
benefits or liabilities in the Consolidated Statements of Income. As of December
31, 2008, there was $14,710 related to interest and $10,258 related to penalties
recorded in other operating expenses.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company,
or one of its subsidiaries, files income tax returns in the U.S. federal
jurisdiction and various states. With few exceptions, the Company is no longer
subject to U.S. federal or state and local examinations by taxing authorities
for years before 2005.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following table sets forth the
total amounts of unrecognized tax benefits.</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="55%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Balance as of January 1,
      2008</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>123,605 </FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%"><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Additions related to prior years</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>10,437
      </FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Reductions related to prior
      years</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(47,540)&nbsp;<FONT size=3>&nbsp; </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%"><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Settlements</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>- </FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Balance&nbsp;as of&nbsp;December 31,
      2008</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>86,502 </FONT>&nbsp; </TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In the
balance of unrecognized tax benefits at December 31, 2008, approximately $87,000
relates to tax positions and interest for which the statute of limitations will
expire within the next 12 months. Of the total unrecognized tax benefits,
approximately $62,000 represents the amount that if recognized, would favorably
affect the effective tax rate in future periods. Included in the $87,000 are
penalties and interest in the amount of approximately $25,000.</FONT></P>
<P align=left><B><FONT face=serif size=2>9. Leases</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
leases certain office facilities and equipment under operating leases. Rental
expense also includes occasional rental of automobiles. Rent expense totaled
approximately $964,000, $930,000 and $889,000 in 2008, 2007 and 2006,
respectively. The future minimum lease payments under operating leases that have
initial or remaining noncancelable lease terms in excess of one year as of
December 31, 2008, are summarized as follows:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="60%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Year Ended:</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>2009</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>710,419 </FONT><FONT style="BACKGROUND-COLOR: #c0c0c0">&nbsp; </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>2010</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>422,292 </FONT>&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>2011</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>184,823 </FONT><FONT style="BACKGROUND-COLOR: #c0c0c0">&nbsp; </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="95%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>2012</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>58,878 </FONT>&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>2013</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>- </FONT><FONT style="BACKGROUND-COLOR: #c0c0c0">&nbsp; </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="95%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Total</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>1,376,412 </FONT>&nbsp;
  </FONT></TD></TR></TABLE><BR>
<P align=left><B><FONT face=serif size=2>10. Retirement Agreements and Other
Postretirement Benefit Plan</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In 2008, the
Company adopted a 401(k) savings plan. To participate, individuals must be
employed for one full year and work at least 1,000 hours annually. The Company
makes a 3% Safe Harbor contribution and also has the option annually to make a
discretionary profit share contribution. Individuals may elect to make
contributions up to the maximum deductible amount as determined by the Internal
Revenue Code. Expenses related to the 401(k) for 2008 were approximately
$513,000. Prior to 2008, the company had a Simplified Employee Pension Plan,
where after three years of service, employees were eligible to participate.
Contributions, which were made at the discretion of the Company, were based on
the employee&#146;s salary, but in no case did such contribution exceed $45,000
annually per employee. All contributions were deposited in Individual Retirement
Accounts for participants. Contributions expensed under this plan were
approximately $878,000, $712,000 for 2007 and 2006, respectively.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In November
2003, ITIC, a wholly owned subsidiary of the Company, entered into employment
agreements with the Chief Executive Officer, Chief Financial Officer and the
Chief Operating Officer of ITIC. These individuals also serve as the Chief
Executive Officer, President and Executive Vice President, respectively, of the
Company. The agreements provide compensation and life, health, dental and vision
benefits upon the occurrence of specific events, including death, disability,
retirement, termination without cause or upon a change in control. The
agreements provide for annual salaries to be fixed by the Compensation Committee
and, among other benefits, ITIC shall make quarterly contributions pursuant to a
supplemental executive retirement account on behalf of each executive equal to
22% of the base salary and bonus paid to each during such quarter through
September 30, 2008. The obligation to make contributions to the</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>supplemental executive
retirement agreements has expired and has been removed from </FONT></P>
<P align=center><FONT face=serif size=2>54</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>the amended and restated employment
agreement effective January 1, 2009. The employment agreements also prohibit each
of these executives from competing with ITIC and its parent, subsidiaries and
affiliates in the state of North Carolina while employed by ITIC and for a
period of two years following termination of their employment. In addition,
during the second quarter of 2004, ITIC entered into nonqualified deferred
compensation plan agreements with these executives. The amount accrued for these
agreements at December 31, 2008 and 2007 was approximately $6,574,000 and
$5,496,000, respectively, which includes postretirement compensation and health
benefits, and was calculated based on the terms of the contract. These executive
contracts are accounted for on an individual contract basis. On December 24,
2008, the executive contracts were amended effective January, 1, 2009 to bring
them into compliance with Section 409A of the Internal Revenue Code, and to
permit a special 2008 distribution election as permitted under Section 409A. The
special distribution election provided that each participant may elect, no later
than December 31, 2008, to receive a one-time lump sum distribution on January
15, 2009 of all amounts in the participant&#146;s account. Payouts in January 2009
associated with this distribution were approximately $2,456,000. In addition,
the nonqualified deferred compensation agreement was amended and restated to
terminate all company contributions to this plan beginning January 1, 2009. In
connection with such termination, the employment agreements were amended and
restated to provide for an annual cash payment to the officers equal to the
amounts the Company would have contributed to their accounts under its 401(k)
Plan if such contributions were not limited by the federal tax laws, less the
amount of any contributions that the Company actually make to their accounts
under the Company&#146;s 401(k) Plan. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>On November
17, 2003, ITIC entered into employment agreements with key executives that
provide for the continuation of certain employee benefits upon retirement. The
executive employee benefits include health insurance, dental insurance, vision
insurance and life insurance. The plan is unfunded. Estimated future benefit
payouts expected to be paid for each of the next five years are $3,226 in 2009,
$3,441 in 2010, $3,646 in 2011, $4,530 in 2012, $5,600 in 2013 and $53,481 in
the next five years thereafter.</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Cost of the Company&#146;s postretirement
benefit plan included the following components:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><B><FONT face=serif size=2>2008</FONT></B>
    </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 size=+0><FONT face=serif size=2>2007</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>2006</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT><STRONG>Net periodic benefit
      cost</STRONG></FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Service cost &#150; benefits earned during the year</FONT>&nbsp;
    </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>17,335</FONT></B> </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>13,974</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>14,227</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Interest cost on projected benefit obligation</FONT>&nbsp;
    </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>19,044</FONT></B> </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="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>14,646</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>14,061</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="86%"><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Amortization of unrecognized prior service cost</FONT>&nbsp;
    </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>20,388</FONT></B> </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>20,388</FONT> </FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>20,388</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Amortization of unrecognized gains</FONT>&nbsp; </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 size=+0><B><FONT face=serif size=2>-</FONT></B>
      </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>(2,604</FONT><FONT size=2>)</FONT> </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>(1,665</FONT><FONT size=2>)</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Net periodic benefit cost at end of year</FONT>&nbsp;
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT><STRONG>56,767</STRONG></FONT> </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 size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>46,404</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>47,011</FONT>&nbsp;&nbsp;
      </FONT></TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Under the
disclosure provisions of SFAS 158, the Company is required to recognize the
funded status (i.e., the difference between the fair value of the plan assets
and the accumulated postretirement benefit obligations of its benefit plan in
its consolidated balance sheet, with a corresponding adjustment to accumulated
other comprehensive income, net of tax. The net amount in accumulated other
comprehensive income is $ 173,594 ($114,573 net of tax) and $92,132 ($60,808 net
of tax) for December 31 2008 and 2007, respectively, and represents the net
unrecognized actuarial losses and unrecognized prior service costs. The effects
of adopting the provisions of SFAS 158 on the Company&#146;s consolidated balance
sheets at December 31, 2008 and 2007 are presented in the following
table:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </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=serif size=2>2007</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT><STRONG>Funded
      status</STRONG></FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" 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="3%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Actuarial present value of future
      benefits:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Fully eligible active employee</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(41,001</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(34,622</FONT><FONT size=2>)</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Non-eligible active employees</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2><FONT size=3>&nbsp; </FONT><STRONG>(429,648</STRONG></FONT><FONT size=2><STRONG>)</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>(297,798</FONT><FONT size=2>)</FONT>&nbsp;&nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Plan assets</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=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>-</FONT></B> </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>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT>&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Funded status of accumulated postretirement benefit
      obligation, recognized in</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>other liabilities</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>(470,649</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>(332,420</FONT><FONT size=2>)</FONT>&nbsp;&nbsp;
</TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>55</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Development
of the accumulated postretirement benefit obligation for the years ended
December 31, 2008 and 2007 includes the following:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT size=+0>&nbsp;
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><B><FONT face=serif size=2>2008</FONT></B> </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 size=+0><FONT face=serif size=2>2007</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Accrued postretirement benefit
      obligation at beginning of year</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT><STRONG>(240,288</STRONG></FONT><FONT size=2><STRONG>)</STRONG></FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(193,884</FONT><FONT size=2>)</FONT>&nbsp;&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Service cost &#150; benefits earned during the year</FONT>&nbsp;
    </FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(17,335</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>(13,974</FONT><FONT size=2>)</FONT>&nbsp;&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Interest cost on projected benefit
      obligation</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>(19,044</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(14,646</FONT><FONT size=2>)</FONT>&nbsp;&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Amortization cost, net</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(20,388</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>(17,784</FONT><FONT size=2>)</FONT>&nbsp;&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Unrecognized prior service
      cost</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>(93,963</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(114,351</FONT><FONT size=2>)</FONT>&nbsp;&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Unrecognized loss
      (gain)</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp;
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(79,631</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>
      </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="1%"><FONT size=+0>&nbsp;
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>22,219</FONT>&nbsp;&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Funded status
      of accumulated postretirement benefit obligation at end of
      year</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>(470,649</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>(332,420</FONT><FONT size=2>)</FONT>&nbsp;&nbsp;</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="90%">&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD></TR>
  <TR>
    <TD align=left width="99%" colSpan=6><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The changes in amounts related
      to accumulated other comprehensive income, pre-tax, is as
    follows:</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="90%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </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=serif size=2>2007</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Balance at beginning of year</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>92,132</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>61,834</FONT>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Components of Accumulated Other Comprehensive Income</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Unrecognized prior service cost</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp; </FONT><STRONG>(20,388</STRONG></FONT><FONT size=2><STRONG>)</STRONG></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="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp; </FONT>(20,388</FONT><FONT size=2>)</FONT>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%">&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=serif size=2>Unrecognized gain</FONT>&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="3%"><B><FONT face=serif size=2>101,850</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&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="3%"><FONT face=serif size=2>50,686</FONT>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Balance at end of
      year</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>173,594</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>92,132</FONT>&nbsp;&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=left width="90%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD></TR>
  <TR>
    <TD align=left width="99%" colSpan=6><FONT size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>For 2009, the amounts in
      accumulated other comprehensive income, pre-tax, to be recognized as
      components of net periodic benefit costs are:</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="90%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Projected</FONT></B> </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="90%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2009</FONT></B> </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="90%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Amortization of unrecognized prior service
      cost</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>20,388</FONT></B> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Amortization of unrecognized
      loss</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>2,014</FONT></B> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Net periodic benefit cost at
      end of year</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>22,402</FONT></B> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD></TR></TABLE>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Weighted-average
actuarial assumptions used to determine benefit obligations at December 31 were:
</FONT></P>
<P><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Assumed health care cost trend rates
do have an effect on the amounts reported for the postretirement benefit plan.
The following illustrates the effects on the net periodic postretirement benefit
cost and the accumulated postretirement benefit obligation of a one percentage
point increase and one percentage point decrease in the assumed health care cost
trend rate as of December 31, 2008:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="95%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="90%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>One-</FONT></B> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>One-</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="90%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Percentage</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Percentage</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="90%">&nbsp; </TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Point</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>Point</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>In</FONT></B><B><FONT face=serif size=2>crease</FONT></B> </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="4%" colSpan=2><B><FONT face=serif size=2>D</FONT></B><B><FONT face=serif size=2>ecrease</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;</FONT>1.&nbsp; </FONT></TD>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Net periodic postretirement benefit cost</FONT>&nbsp; </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></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="90%"><FONT face=serif size=2>Effect on the
      service cost component</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>6,084</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>(4,651</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <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="90%" bgColor=#c0c0c0><FONT face=serif size=2>Effect on interest
      cost</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=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>6,328</FONT></B> </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>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>(4,869</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face=serif size=2>Total effect on the net periodic
      postretirement benefit cost</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>12,412</FONT></B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(9,520</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2><FONT size=3>&nbsp;&nbsp;</FONT>2.</FONT></TD>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Accumulated postretirement benefit obligation (including
      active</FONT>&nbsp; </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></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>employees who are not fully eligible)</FONT>&nbsp; </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></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="90%"><FONT face=serif size=2>Effect on those
      currently receiving benefits (retirees and spouses)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>-</FONT></B>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>-</FONT></B>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Effect on active fully eligible</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>2,896</FONT></B> </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><B><FONT face=serif size=2>(2,629</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face=serif size=2>Effect on actives not yet
      eligible</FONT>&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="3%"><B><FONT face=serif size=2>107,156</FONT></B> </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="1%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><B><FONT face=serif size=2>(82,044</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <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="90%" bgColor=#c0c0c0><FONT face=serif size=2>Total effect on the accumulated
      postretirement benefit obligation</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;
      </FONT><STRONG>110,052</STRONG></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;
      </FONT><STRONG>(84,673</STRONG></FONT><FONT size=2><STRONG>)</STRONG></FONT>&nbsp;&nbsp;</TD></TR></TABLE><BR>
<P align=left><B><FONT face=serif size=2>1</FONT></B><B><FONT face=serif size=2>1. Commitments and Contingencies</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
and its subsidiaries are involved in various routine legal proceedings that are
incidental to their business. In the Company&#146;s opinion, based on the present
status of these proceedings, any potential liability of the Company or its
subsidiaries with respect to these legal proceedings, will not, in the
aggregate, be material to the Company&#146;s consolidated financial condition or
operations. </FONT></P>
<P align=center><FONT face=serif size=2>56</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><I><FONT face=serif size=2>Escrows and Like-Kind
Exchanges</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>As a service
to its customers, the Company, through ITIC, administers escrow and trust
deposits representing earnest money received under real estate contracts,
undisbursed amounts received for settlement of mortgage loans and indemnities
against specific title risks. Cash held by the Company for these purposes was
approximately $14,492,000 and $23,665,000 as of December 31, 2008 and 2007,
respectively. In administering tax-deferred property exchanges, the Company&#146;s
subsidiary, ITEC, serves as a qualified intermediary for exchanges, holding the
net proceeds from sales transactions from relinquished property to be used for
purchase of replacement property. Another Company subsidiary, ITAC, serves as
exchange accommodation titleholder and, through&nbsp;limited liability companies
</FONT><FONT face=serif size=2>that are wholly owned subsidiaries of ITAC, holds
property for exchangers in reverse exchange transactions. Like-kind exchange
deposits and reverse exchange property totaled approximately $88,124,000 and
$115,515,000 as of December 31, 2008 and 2007, respectively. These amounts are
not considered assets of the Company and, therefore, are excluded from the
accompanying consolidated balance sheets. Exchange services revenues include
earnings on these deposits; therefore, investment income is shown as exchange
services revenue, rather than investment income. The Company remains
contingently liable for the disposition of these deposits and for the transfers
of property, disbursements of proceeds and the return on the proceeds at the
agreed upon rate. These like-kind exchange funds are primarily invested in money
market and other short-term investments, including $4.4 million of auction rate
securities (&#147;ARS&#148;), at December 31, 2008. At December 31, 2008, ITEC had
recorded a liability of approximately $209,000 as a result of impairment of
assets specifically related to funds held. The Company does not believe the
current illiquidity of these securities will impact its operations, as it
believes it has sufficient capital to provide continuous and immediate liquidity
as necessary.</FONT></P>
<P align=left><B><FONT face=serif size=2>12. Statutory Accounting</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
consolidated financial statements have been prepared in conformity with
accounting principles generally accepted in the United States of America which
differ in some respects from statutory accounting practices prescribed or
permitted in the preparation of financial statements for submission to insurance
regulatory authorities.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Consolidated
stockholders&#146; equity on a statutory basis was $82,305,151 and $93,079,819 as of
December 31, 2008 and 2007, respectively. Net (loss) income on a statutory basis
was $(3,148,117), $7,980,954 and $11,684,065 for the twelve months ended
December 31, 2008, 2007 and 2006. </FONT></P>
<P align=left><B><FONT face=serif size=2>13. Segment Information</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Consistent
with SFAS No. 131, &#147;Disclosures about Segments of an Enterprise and Related
Information</FONT><I><FONT face=serif size=2>,</FONT></I><FONT face=serif size=2>&#148; the Company has aggregated its operating segments into two reportable
segments: 1) title insurance services; and 2) tax-deferred exchange services.
The remaining immaterial segments have been combined into a group called All
Other.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The title
insurance segment primarily issues title insurance policies through approved
attorneys from underwriting offices and through independent issuing agents.
Title insurance policies insure titles to residential, institutional, commercial
and industrial properties. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
tax-deferred exchange services segment acts as an intermediary in tax-deferred
exchanges of property held for productive use in a trade or business or for
investments and serves as exchange accommodation titleholder, holding property
for exchangers in reverse exchange transactions. Revenues are derived from fees
for handling exchange transactions.</FONT></P>
<P align=center><FONT face=serif size=2>57</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Provided
below is selected financial information about the Company&#146;s operations by
segment for the three years ended December 31, 2008, 2007 and 2006:</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Title</FONT> </FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Exchange</FONT> </FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>All</FONT> </FONT></TD>
    <TD noWrap align=center width="1%"><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Intersegment</FONT> </FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT><STRONG>2008</STRONG></FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Insurance</FONT>
</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="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Services</FONT> </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="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Other</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Elimination</FONT>
    </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="4%" colSpan=2><FONT size=+0><FONT face=serif size=2>Total</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Operating
      revenues</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>65,507,644</FONT></B> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>1,163,569</FONT></B> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>3,594,694</FONT></B> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>(779,005</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>69,486,902</FONT></B>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Investment income</FONT>&nbsp;
</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>3,576,758</FONT></B> </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>37,839</FONT></B> </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>1,025,807</FONT></B> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(81,669</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>4,558,735</FONT></B>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Net realized loss on investments</FONT>&nbsp; </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 size=+0><B><FONT face=serif size=2>(2,661,018</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>
    </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>-</FONT></B>
      </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 size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>(261,358</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></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 size=+0><B><FONT face=serif size=2>-</FONT></B>
      </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>(2,922,376</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT size=+0>&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=serif size=2>Total revenues</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>66,423,384</FONT></B> </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>1,201,408</STRONG></FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>4,359,143</FONT></B> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(860,674</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>
</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>71,123,261</FONT></B>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Operating expenses</FONT>&nbsp; </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 size=+0><B><FONT face=serif size=2>69,901,591</FONT></B> </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>1,214,363</FONT></B> </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 size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>4,003,111</FONT></B> </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>(779,005</STRONG></FONT><FONT size=2><STRONG>)</STRONG></FONT> </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>74,340,060</FONT></B>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%"><FONT size=+0>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>(Loss) income before taxes</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(3,478,207</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(12,955</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </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="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>356,032</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(81,669</FONT></B><STRONG><FONT size=2>)</FONT></STRONG> </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 size=+0><B><FONT face=serif size=2>$</FONT></B>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><B><FONT face=serif size=2>(3,216,799</FONT></B><STRONG><FONT size=2>)</FONT></STRONG>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Assets</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>102,408,285</STRONG></FONT>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>480,159</FONT></B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>36,969,744</STRONG></FONT>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>$</FONT></STRONG> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>&nbsp;-</FONT></B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>$</FONT></B>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;</FONT><STRONG>139,858,188</STRONG></FONT>&nbsp;&nbsp;
      </FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=15>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>2007</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Operating
      revenues</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>71,827,793</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>4,340,062</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>3,485,281</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(829,898</FONT><FONT size=2>)</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>78,823,238</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Investment
      income</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>4,024,900</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>29,501</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>1,212,779</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(70,002</FONT><FONT size=2>)</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>5,197,178</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Net realized gain on investments</FONT>&nbsp; </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 size=+0><FONT face=serif size=2>513,252</FONT>
      </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>-</FONT> </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 size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>408,619</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </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 size=+0><FONT face=serif size=2>-</FONT> </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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>921,871</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#ffffff><FONT size=+0>&nbsp;
      &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Total revenues</FONT>&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>76,365,945</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>4,369,563</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>5,106,679</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(899,900</FONT><FONT size=2>)</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>84,942,287</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Operating expenses</FONT>&nbsp; </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 size=+0><FONT face=serif size=2>68,896,939</FONT>
      </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,546,437</FONT>
      </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 size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>3,504,474</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </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 size=+0><FONT face=serif size=2>(829,898</FONT><FONT size=2>)</FONT> </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>73,117,952</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#ffffff><FONT size=+0>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Income before taxes</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>7,469,006</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>2,823,126</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>1,602,205</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(70,002</FONT><FONT size=2>)</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>11,824,335</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Assets</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>111,384,663</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,210,438</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>37,047,319</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;-</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>149,642,420</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR>
    <TD width="100%" bgColor=#ffffff colSpan=15>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>2006</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Operating
      revenues</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>71,733,764</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>5,980,027</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>2,915,065</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(844,533</FONT><FONT size=2>)</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>79,784,323</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp; </FONT>Investment
      income</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>3,759,367</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>18,138</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>619,231</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(70,401</FONT><FONT size=2>)</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>4,326,335</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Net realized gain on investments</FONT>&nbsp; </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 size=+0><FONT face=serif size=2>551,058</FONT>
      </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>-</FONT> </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 size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>-</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </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 size=+0><FONT face=serif size=2>-</FONT> </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>551,058</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#ffffff><FONT size=+0>&nbsp;
      &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Total revenues</FONT>&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>76,044,189</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>5,998,165</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>3,534,296</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(914,934</FONT><FONT size=2>)</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>84,661,716</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Operating expenses</FONT>&nbsp; </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 size=+0><FONT face=serif size=2>63,667,391</FONT>
      </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,419,923</FONT>
      </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 size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>3,089,501</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </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=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(844,533</FONT><FONT size=2>)</FONT> </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></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>67,332,282</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%" bgColor=#ffffff><FONT size=+0>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Income before taxes</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>12,376,798</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>4,578,242</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>444,795</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(70,401</FONT><FONT size=2>)</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>17,329,434</FONT>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2><FONT size=3>&nbsp;
      </FONT>Assets</FONT>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>114,599,621</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,087,383</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>27,829,374</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;-</FONT>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>143,516,378</FONT>&nbsp;&nbsp; </FONT></TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>For 2008,
operating revenues in the Exchange Services Segment includes a loss of $2,572
related to the disposal of assets.</FONT></P>
<P align=left><B><FONT face=serif size=2>14. Stockholders&#146; Equity</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>On November
12, 2002, the Company&#146;s Board of Directors amended the Company&#146;s Articles of
Incorporation, creating a series of Class A Junior Participating Preferred Stock
(the &#147;Class A Preferred Stock&#148;). There are 1,000,000 shares of Preferred Stock
authorized and 100,000 of these shares have been designated Class A Junior
Participating Preferred Stock. The Class A Junior Participating Preferred Stock
is senior to common stock in dividends or distributions of assets upon
liquidations, dissolutions or winding up of the Company. Dividends on the Class
A Preferred Stock are cumulative and accrue from the quarterly dividend payment
date. Each share of Class A Preferred Stock entitles the holder thereof to 100
votes on all matters submitted to a vote of shareholders of the Company. These
shares were reserved for issuance under the Shareholder Rights Plan (the
&#147;Plan&#148;), which was adopted on November 21, 2002, by the Company&#146;s Board of
Directors. Under the terms of the Plan, the Company&#146;s common stock acquired by a
person or a group buying 15% or more of the Company&#146;s common stock would be
diluted, except in transactions approved by the Board of Directors.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In
connection with the Plan, the Company&#146;s Board of Directors declared a dividend
distribution of one right (a &#147;Right&#148;) for each outstanding share of the
Company&#146;s common stock paid on December 16, 2002, to shareholders of record at
the close of business on December 2, 2002. Each Right entitles the registered
holder to purchase from the Company a unit (a &#147;Unit&#148;) consisting of one
one-hundredth of a share of Class A Preferred Stock at a purchase price of $80
per Unit. Under the Plan, the Rights detach and become exercisable upon the
earlier of (a) ten (10) days following public announcement that a person or
group of affiliated or associated persons has acquired, or obtained the right to
acquire, beneficial ownership of 15% or more of the outstanding shares of the
Company&#146;s common stock, or (b) ten (10) business days following the commencement
of, or first public announcement of the intent of a person or </FONT></P>
<P align=center><FONT face=serif size=2>58</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>group to commence, a tender offer or
exchange offer that would result in a person or group beneficially owning 15% or
more of such outstanding shares of the Company&#146;s common stock. The exercise
price, the kind and the number of shares covered by each right are subject to
adjustment upon the occurrence of certain events described in the
Plan.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>If the
Company is acquired in a merger or consolidation in which the Company is not the
surviving corporation, or the Company engages in a merger or consolidation in
which the Company is the surviving corporation and the Company&#146;s common stock is
changed or exchanged, or more than 50% of the Company&#146;s assets or earning power
is sold or transferred, the Rights entitle a holder (other than the acquiring
person or group) to buy, at the exercise price, stock of the acquiring company
having a market value equal to twice the exercise price. Following an
acquisition by such person or group of 50% or more of the outstanding common
stock, the Company&#146;s Board of Directors may exchange the Rights (other than the
Rights owned by such person or group), in whole or in part, at an exchange ratio
of one share of the Company&#146;s common stock, or one one-hundredth of a share of
Preferred Stock, per Right.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Rights
expire on November 11, 2012, and are redeemable upon action by the Board of
Directors at a price of $0.01 per right at any time before they become
exercisable. Until the Rights become exercisable, they are evidenced only by the
common stock certificates and are transferred with and only with such
certificates.</FONT></P>
<P align=left><B><FONT face=serif size=2>15. Concentration of
Risk</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Financial
instruments that potentially subject the Company to concentrations of credit
risk consist primarily of cash and cash equivalents. The Company invests its
cash and cash equivalents into high credit quality security instruments.
Deposits which exceed $250,000 at each institution are not insured by the
Federal Deposit Insurance Corporation. Of the $5.2 million in cash and cash
equivalents on the Consolidated Balance Sheets at December 31, 2008, $5.4
million was not insured by the Federal Deposit Insurance Corporation. The total
amount not insured is higher than cash and cash equivalents due to larger bank
than book balances.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
generates a significant amount of title insurance premiums in North Carolina. In
2008, 2007 and 2006, North Carolina accounted for 47.9%, 49.2% and 49.8% of
total direct title premiums, respectively.</FONT></P>
<P align=left><B><FONT face=serif size=2>16. Related Party
Transactions</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>During 2008,
the Company repurchased 106,000 shares of common stock at a value of
approximately $4,922,000 from a non-employee director and family member of that
director. The shares were repurchased in three separate transactions pursuant to
the purchase plan that was publicly announced on June 5, 2000. The shares were
purchased at the current bid price on the day of each transaction.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Company
has investments in unconsolidated affiliates in limited liability companies that
are accounted for under the equity method of accounting. The following table
sets forth the approximate values by year found within each financial statement
classification: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="70%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face=serif size=2>Financial
      Statement Classification,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=serif size=2>Consolidated Balance
      Sheets</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2007</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Other investments</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=serif size=2>1,146,000</FONT></B> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>841,000</FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face=serif size=2>Premium and fees
      receivable</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><B><FONT face=serif size=2>432,000</FONT></B> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>401,000</FONT>
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="3%">&nbsp; </TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face=serif size=2>Financial
      Statement Classification,</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="3%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=serif size=2>Consolidated Statements of Income
      (Loss)</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=2>2008</FONT></B> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2007</FONT> </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=2>2006</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=serif size=2>Other income</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=serif size=2>$</FONT></B>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT><STRONG>1,175,000</STRONG></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; <FONT face=serif size=2>953,000</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;</FONT>633,000</FONT>
</TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>59</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 vAlign=top noWrap align=left width="1%"><B><FONT face=serif size=2>ITEM 9.</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=top align=left width="97%"><B><FONT face=serif size=2>CHANGES
      IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
      DISCLOSURE</FONT></B></TD></TR></TABLE><BR>
<P align=left><FONT face=serif size=2>None</FONT></P>
<P align=left><B><FONT face=serif size=2>ITEM 9A. CONTROLS AND
PROCEDURES</FONT></B></P>
<P align=left><B><FONT face=serif size=2>Disclosure Controls and
Procedures</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>An
evaluation was performed by the Company&#146;s management, including its Chief
Executive Officer and Chief Financial Officer, of the effectiveness of the
design and operation of the Company&#146;s disclosure controls and procedures. Based
on that evaluation, the Company&#146;s Chief Executive Officer and Chief Financial
Officer concluded that the Company&#146;s disclosure controls and procedures were
effective as of December 31, 2008 for the purpose of providing reasonable
assurance that the information required to be disclosed in the reports the
Company files or submits under the Securities Exchange Act of 1934 (the &#147;Act&#148;)
(i) is recorded, processed, summarized and reported within the time periods
specified in the SEC&#146;s rules and forms and (ii) is accumulated and communicated
to the Company&#146;s management, including its Chief Executive Officer and Chief
Financial Officer, as appropriate to allow timely decisions regarding required
disclosures.</FONT></P>
<P align=left><B><FONT face=serif size=2>Changes in Internal Control Over
Financial Reporting</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>During the
quarter ended December 31, 2008, there were no changes in the Company&#146;s internal
control over financial reporting that have materially affected, or are
reasonably likely to materially affect, the Company&#146;s internal control over
financial reporting. </FONT></P>
<P align=left><B><FONT face=serif size=2>Reports of Management and Independent
Registered Public Accounting Firm on Internal Control Over Financial
Reporting</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Management
has assessed, and the Company&#146;s independent registered public accounting firm,
Dixon Hughes PLLC, has audited, the Company&#146;s internal control over financial
reporting as of December 31, 2008. The unqualified reports of management and
Dixon Hughes PLLC thereon are included in Item 8 of this Annual Report on Form
10-K and are incorporated by reference herein.</FONT></P>
<P align=left><B><FONT face=serif size=2>ITEM 9B. OTHER
INFORMATION</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>There was no
information required to be disclosed in a report on Form 8-K during the fourth
quarter of the year that has not been reported.</FONT></P>
<P align=center><FONT face=serif size=2>60</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>PART III</FONT></B></P>
<P align=left><B><FONT face=serif size=2>ITEM 10. DIRECTORS, EXECUTIVE OFFICERS
AND CORPORATE GOVERNANCE</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
information called for by this item is incorporated by reference to the material
under the captions &#147;Proposals Requiring Your Vote,&#148; &#147;General Information -
Section 16(a) Beneficial Ownership Reporting Compliance,&#148; &#147;Corporate Governance
&#150; Board of Directors and Committees &#150; The Audit Committee&#148; and &#147;Corporate
Governance &#150; Code of Business Conduct and Ethics&#148; in the Company&#146;s definitive
Proxy Statement for the Annual Meeting of Shareholders to be held on May 20,
2009. Other information with respect to the executive officers of the Company is
included at the end of Part I of this Form 10-K Annual Report under the separate
caption &#147;Executive Officers of the Company.&#148;</FONT></P>
<P align=left><B><FONT face=serif size=2>ITEM 11. EXECUTIVE
COMPENSATION</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
information called for by this item is set forth under the captions &#147;Executive
Compensation,&#148; &#147;Compensation of Directors,&#148; &#147;Corporate Governance &#150; Compensation
Committee Interlocks and Insider Participation&#148; and &#147;Compensation Committee
Report&#148; in the Company&#146;s definitive Proxy Statement relating to the Annual
Meeting of Shareholders to be held on May 20, 2009 and is incorporated by
reference in this Form 10-K Annual Report.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="3%"><B><FONT face=serif size=2>ITEM 12.</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="1%"><STRONG><FONT size=2>&nbsp;</FONT></STRONG></TD>
    <TD vAlign=top align=left width="96%"><B><FONT face=serif size=2>SECURITY
      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
      STOCKHOLDER MATTERS</FONT></B></TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
information pertaining to securities ownership of certain beneficial owners and
management is set forth under the caption &#147;Stock Ownership of Certain Beneficial
Owners and Management&#148; in the Company&#146;s definitive Proxy Statement relating to
the Annual Meeting of Shareholders to be held on May 20, 2009 and is
incorporated by reference in this Form 10-K Annual Report.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
following table provides information about the Company&#146;s compensation plans
under which equity securities are authorized for issuance as of December 31,
2008. The Company does not have any equity compensation plans that have not been
approved by its shareholders.</FONT></P>
<P align=center><B><FONT face=serif size=2>Equity Compensation Plan
Information</FONT></B></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="64%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=3><B><FONT face=serif size=2>Number of Securities</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=3><B><FONT face=serif size=2>Number of Securities to</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=3><B><FONT face=serif size=2>Weighted-Average</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=3><B><FONT face=serif size=2>Remaining Available</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=3><B><FONT face=serif size=2>be Issued Upon Exercise</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=3><B><FONT face=serif size=2>Exercise Price of</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=3><B><FONT face=serif size=2>for Future Issuance</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=3><B><FONT face=serif size=2>of Outstanding Options,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%" colSpan=3><B><FONT face=serif size=2>Outstanding Options,</FONT></B></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="11%" colSpan=3><B><FONT face=serif size=2>Under Equity</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="64%"><B><FONT face=serif size=2>Plan Category</FONT></B></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><B><FONT face=serif size=2>Warrants and Rights</FONT></B></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=3><B><FONT face=serif size=2>Warrants and R</FONT></B><B><FONT face=serif size=2>ights</FONT></B></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><B><FONT face=serif size=2>Compensation Plans</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; Equity compensation plans approved by</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      shareholders</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>47,070</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>24.83</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>237,701</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=serif size=2>&nbsp;&nbsp;
      Equity compensation plans not approved by</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=right width="2%"></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=right width="3%">&nbsp;</TD>
    <TD noWrap align=right width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="64%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>shareholders</FONT></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="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%"></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="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"></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="4%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; Total</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>47,070</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>24.83</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>237,701</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="3%"><B><FONT face=serif size=2>ITEM 13.</FONT></B></TD>
    <TD vAlign=top noWrap align=left width="1%"><STRONG><FONT size=2>&nbsp;</FONT></STRONG></TD>
    <TD vAlign=top align=left width="95%"><B><FONT face=serif size=2>CERTAIN
      RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
      INDEPENDENCE</FONT></B></TD></TR></TABLE><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
information called for by this item is set forth under the captions &#147;Certain
Relationships and Related Transactions&#148; and &#147;Corporate Governance &#150; Independent
Directors&#148; set forth in the Company&#146;s definitive Proxy Statement relating to the
Annual Meeting of Shareholders to be held on May 20, 2009 and is incorporated by
reference in this Form 10-K Annual Report.</FONT></P>
<P align=left><B><FONT face=serif size=2>ITEM 14. PRINCIPAL ACCOUNTANT FEES AND
SERVICES</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
information pertaining to principal accountant fees and services is set forth
under the caption &#147;Independent Registered Public Accounting Firm&#148; in the
Company&#146;s definitive Proxy Statement relating to the Annual Meeting of
Shareholders to be held on May 20, 2009 is incorporated by reference in this
Form 10-K Annual Report.</FONT></P>
<P align=center><FONT face=serif size=2>61</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>PART IV</FONT></B></P>
<P align=left><B><FONT face=serif size=2>ITEM 15. EXHIBITS AND FINANCIAL
STATEMENT SCHEDULES</FONT></B></P>
<P align=left><FONT face=serif size=2>(a)(1) </FONT><U><FONT face=serif size=2>Financial Statements</FONT></U><FONT face=serif size=2>.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
following financial statements are filed under Item 8 of this Form 10-K Annual
Report:<BR></FONT><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Report of Independent Registered
Public Accounting Firm<BR></FONT><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Management&#146;s
Report on Internal Control Over Financial Reporting&nbsp;<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Report of Independent Registered
Public Accounting Firm on Internal Control Over Financial Reporting<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Consolidated Balance Sheets as of
December 31, 2008 and 2007<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Consolidated Statements of Income
(Loss) for the Years Ended December 31, 2008, 2007 and 2006<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Consolidated Statements of
Stockholders&#146; Equity for the Years Ended December 31, 2008, 2007 and
2006<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Consolidated
Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2008,
2007 and 2006<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Consolidated
Statements of Cash Flows for the Years Ended December 31, 2008, 2007 and
2006<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Notes to Consolidated
Financial Statements</FONT></P>
<P align=left><FONT face=serif size=2>(a)(2) </FONT><U><FONT face=serif size=2>Financial Statement Schedules.</FONT></U></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Following is a list of financial
statement schedules filed as part of this Form 10-K Annual Report:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="8%"><U><FONT face=serif size=2>Schedule
      Number</FONT></U> </TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</TD>
    <TD noWrap align=left width="90%"><U><FONT face=serif size=2>Description</FONT></U>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="8%"><FONT face=serif size=2>I</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="90%"><FONT face=serif size=2>Summary of
      Investments - Other Than Investments in Related Parties</FONT>&nbsp;
</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="8%"><FONT face=serif size=2>II</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="90%"><FONT face=serif size=2>Condensed
      Financial Information of Registrant</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="8%"><FONT face=serif size=2>III</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="90%"><FONT face=serif size=2>Supplementary
      Insurance Information</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="8%"><FONT face=serif size=2>IV</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="90%"><FONT face=serif size=2>Reinsurance</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="8%"><FONT face=serif size=2>V</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="90%"><FONT face=serif size=2>Valuation and
      Qualifying Accounts</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>All other
schedules are omitted, as the required information either is not applicable, is
not required, or is presented in the consolidated financial statements or the
notes thereto.</FONT></P>
<P align=left><FONT face=serif size=2>(a)(3) </FONT><U><FONT face=serif size=2>Exhibits.</FONT></U></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The exhibits
filed as a part of this report and incorporated herein by reference to other
documents are listed in the Index to Exhibits to this Annual Report on Form
10-K.</FONT></P>
<P align=center><FONT face=serif size=2>62</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>SIGNATURES</FONT></B></P>
<P align=left><FONT face=serif size=2>Pursuant to the requirements of Section 13
or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.</FONT></P>
<DIV align=right>
<TABLE cellSpacing=0 cellPadding=0 width="65%" border=0>

  <TR>
    <TD width="100%" colSpan=2><STRONG><FONT size=2>INVESTORS TITLE
      COMPANY</FONT></STRONG></TD></TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD align=left width="85%">
      <P align=left><FONT face=serif size=2>(Registrant)</FONT></P></TD></TR></TABLE></DIV><BR>
<DIV align=right>
<TABLE cellSpacing=0 cellPadding=0 width="65%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT size=2>By:</FONT><FONT size=3>
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="58%"><FONT face=serif size=2>&nbsp;&nbsp;/s/ J. Allen
      Fine</FONT>&nbsp; </TD>
    <TD noWrap align=left width="40%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>J.
      Allen Fine, Chairman and Chief Executive</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%" colSpan=3><FONT face=serif size=2>Officer </FONT><I><FONT face=serif size=2>(Principal Executive
      Officer)</FONT></I>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=left><FONT face=serif size=2>March 9, 2009</FONT></P>
<P align=left><FONT face=serif size=2>Pursuant to the requirements of the
Securities Exchange Act of 1934, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities indicated on
the 9th day of March, 2009.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>/s/ J.
      Allen Fine</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="35%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>/s/ James R.
      Morton</FONT>&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>J. Allen Fine,
      Chairman of the Board and Chief</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD noWrap align=left width="35%"><FONT face=serif size=2>James R. Morton,
      Director</FONT>&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>Executive
      Officer</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD noWrap align=left width="35%">&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><I><FONT face=serif size=2>(Principal
      Executive Officer)</FONT></I>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD noWrap align=left width="35%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp;</TD></TR>
  <TR>
    <TD width="86%" colSpan=3>&nbsp; </TD>
    <TD width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>/s/
      James A. Fine, Jr.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="35%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>/s/ A.
      Scott Parker III</FONT>&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>James A. Fine,
      Jr., President, Treasurer and</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD noWrap align=left width="35%"><FONT face=serif size=2>A. Scott Parker
      III, Director</FONT>&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>Director
      </FONT><I><FONT face=serif size=2>(Principal Financial Officer
      and</FONT></I>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD noWrap align=left width="35%">&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><I><FONT face=serif size=2>Principal
      Accounting Officer)</FONT></I>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD noWrap align=left width="35%">&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR>
  <TR>
    <TD width="86%" colSpan=3>&nbsp; </TD>
    <TD width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>/s/ W.
      Morris Fine</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="35%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>/s/ H.
      Joe King, Jr.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>W. Morris Fine,
      Executive Vice President,</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD noWrap align=left width="35%"><FONT face=serif size=2>H. Joe King,
      Jr., Director</FONT>&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>Secretary and
      Director</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD noWrap align=left width="35%">&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR>
  <TR>
    <TD width="86%" colSpan=3>&nbsp; </TD>
    <TD width="14%"></TD></TR>
  <TR>
    <TD width="86%" colSpan=3>&nbsp; </TD>
    <TD width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>/s/
      David L. Francis</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="35%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>/s/ R.
      Horace Johnson</FONT>&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>David L.
      Francis, Director</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD noWrap align=left width="35%"><FONT face=serif size=2>R. Horace
      Johnson, Director</FONT>&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR>
  <TR>
    <TD width="86%" colSpan=3>&nbsp; </TD>
    <TD width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>/s/
      Richard M. Hutson, II</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD noWrap align=left width="35%">&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>Richard M.
      Hutson, II, Director</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%"></TD>
    <TD noWrap align=left width="35%">&nbsp; </TD>
    <TD noWrap align=left width="14%"></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>63</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=right><B><FONT face=serif size=2><U>SCHEDULE I</U></FONT></B></P>
<P align=center><B><FONT face=serif size=2>INVESTORS TITLE COMPANY AND
SUBSIDIARIES<BR></FONT></B><B><FONT face=serif size=2>SUMMARY OF INVESTMENTS &#150;
OTHER THAN INVESTMENTS IN RELATED PARTIES<BR>AS OF DECEMBER 31,
2008</FONT></B></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 1pt solid" noWrap align=left width="76%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="5%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="5%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><FONT face=serif size=2>Amount at</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=center width="1%"></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="1%"></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="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=3><FONT face=serif size=2>which
      shown in</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"></TD>
    <TD noWrap align=center width="1%"></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="1%"></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="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=3><FONT face=serif size=2>the
      Balance</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="76%"><FONT face=serif size=2>&nbsp;&nbsp; Type of
    Investment</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=3><FONT face=serif size=2>Cost (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=3><FONT face=serif size=2>Market Value</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=3><FONT face=serif size=2>Sheet (2)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; Fixed Maturities:</FONT></TD>
    <TD noWrap align=left width="1%" 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="1%" 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>&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="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Bonds:</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></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="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>States, municipalities &amp; political
    subs</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>73,270,094</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>74,473,176</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>74,462,277</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>All other corporate bonds</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>13,105,170</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>13,697,904</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>13,697,904</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Short-term investments</FONT></FONT></TD>
    <TD noWrap align=right 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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>15,725,513</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>15,725,513</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD 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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>15,725,513</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Total fixed maturities</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>102,100,777</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>103,896,593</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>103,885,694</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=13>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; Equity Securities:</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Common Stocks:</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Public utilities</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>540,630</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>529,741</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>529,741</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Banks, trust and insurance companies</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>34,884</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>86,100</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>86,100</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Industrial, miscellaneous and all other</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>8,165,246</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>8,886,081</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>8,886,081</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>&nbsp;&nbsp;
      Nonredeemable preferred stocks</FONT></TD>
    <TD noWrap align=right 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=right width="5%"><FONT face=serif size=2>418,025</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right 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=right width="5%"><FONT face=serif size=2>463,375</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD 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=right width="5%"><FONT face=serif size=2>463,375</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Total equity securities</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>9,158,785</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>9,965,297</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>9,965,297</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=13>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; Other Investments</FONT></TD>
    <TD noWrap align=right 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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>895,173</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>895,173</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD 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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>895,173</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="76%"><FONT face=serif size=2>&nbsp;&nbsp;
      Total investments per the consolidated balance sheet (3)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      112,154,735</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      114,757,063</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      114,746,164</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(1)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%"><FONT face=serif size=2>Fixed maturities are
      shown at amortized cost and equity securities are shown at original
      cost</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(2)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%"><FONT face=serif size=2>Bonds of states,
      municipalities and political subdivisions are shown at amortized cost for
      held-to-maturity bonds and fair value for available-for-sale bonds. Equity
      securities are shown at fair value</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap ><FONT size=2>(3)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top width="100%" ><FONT size=2>The above summary
      of investments does not include investments in related parties accounted
      for under the equity method of accounting in the amount of
      $1,145,789.</FONT></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>64</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=right><B><FONT face=serif size=2><U>SCHEDULE II</U></FONT></B></P>
<P align=center><B><FONT face=serif size=2>INVESTORS TITLE COMPANY (PARENT
COMPANY)<BR>CONDENSED FINANCIAL INFORMATION OF REGISTRANT<BR></FONT></B><B><FONT face=serif size=2>BALANCE SHEETS<BR></FONT></B><B><FONT face=serif size=2>AS OF
DECEMBER 31, 2008 AND 2007</FONT></B></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="83%"></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=2>2007</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><B><FONT face=serif size=2>Assets</FONT></B></TD>
    <TD noWrap align=left width="1%" 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>&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="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT size=2>&nbsp;&nbsp; </FONT></STRONG></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash
      equivalents</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp; </STRONG>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>1,476,574</FONT></TD>
    <TD noWrap align=right width="1%"><STRONG><FONT size=2>&nbsp;&nbsp;
      </FONT></STRONG></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2><STRONG>&nbsp;&nbsp; </STRONG>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>207,436</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Investments
      in fixed maturities, available-for-sale</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>13,975,353</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>17,707,623</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Investments
      in equity securities, available-for-sale</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>89,100</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>250,950</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Short-term
      investments</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>14,391,860</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>13,122,076</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Investments
      in affiliated companies</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>55,363,938</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>63,628,499</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Other
      investments</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>470,481</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>461,835</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Other
      receivables</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>710,860</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>291,391</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Income taxes
      receivable</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>1,054,569</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>1,255,157</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Accrued
      interest and dividends</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>218,070</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>214,068</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Property,
      net</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,914,630</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>3,038,964</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Deferred
      income taxes, net</FONT></FONT></TD>
    <TD noWrap align=right 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=right width="5%"><FONT face=serif size=2>243,298</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD noWrap align=right 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=right width="5%"><FONT face=serif size=2>22,288</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><B><FONT face=serif size=2>Total Assets</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      90,908,733</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      100,200,287</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="98%" colSpan=8>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><B><FONT face=serif size=2>Liabilities and Stockholders&#146; Equity</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><B><FONT face=serif size=2>Liabilities:</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Accounts
      payable and accrued liabilities</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>1,050,845</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>924,447</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Total liabilities</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></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="5%"><FONT face=serif size=2>1,050,845</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></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="5%"><FONT face=serif size=2>924,447</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR>
    <TD width="98%" colSpan=8>&nbsp;</TD>
    <TD width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><B><FONT face=serif size=2>Stockholders&#146; Equity:</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Class A
      Junior Participating preferred stock - no par value</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>(shares authorized 100,000; no shares
      issued)</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Common
      stock-no par (shares authorized 10,000,000; 2,293,268</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>and 2,411,318 shares issued and outstanding 2008 and
      2007,</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>respectively, excluding 291,676 shares for 2008
      and</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>2007 of common stock held by the Company&#146;s
      subsidiary)</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Retained
      earnings</FONT></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>88,248,452</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>95,739,827</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Accumulated
      other comprehensive income</FONT></FONT></TD>
    <TD noWrap align=right 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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>1,609,435</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>3,536,012</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Total stockholders&#146; equity</FONT></FONT></TD>
    <TD noWrap align=right 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=right width="5%"><FONT face=serif size=2>89,857,888</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD noWrap align=right 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=right width="5%"><FONT face=serif size=2>99,275,840</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><B><FONT face=serif size=2>Total Liabilities and Stockholders&#146; Equity</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>90,908,733</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>100,200,287</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR></TABLE>
<P align=left><FONT face=serif size=2>See notes to condensed financial
statements.</FONT></P>
<P align=center><FONT face=serif size=2>65</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=right><B><FONT face=serif size=2><U>SCHEDULE II</U></FONT></B></P>
<P align=center><B><FONT face=serif size=2>INVESTORS TITLE COMPANY (PARENT
COMPANY)<BR>CONDENSED FINANCIAL INFORMATION OF REGISTRANT<BR></FONT><FONT face=serif size=2>STATEMENTS OF INCOME (LOSS)<BR></FONT></B><B><FONT face=serif size=2>FOR THE YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006</FONT></B></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="79%"></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>2007</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>2006</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=serif size=2>Revenues:</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>Investment
      income-interest and dividends</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp;&nbsp;
      $</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>985,277</FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp;&nbsp;
      $</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>1,146,168</FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp;&nbsp;
      $</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>561,400</FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>Net realized (loss) gain on investments</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(120,093)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>406,623</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>Rental
      income</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>717,044</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>736,713</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>735,431</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>Miscellaneous income (loss)</FONT></TD>
    <TD noWrap align=right 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>37,139</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>81,938</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(115,883)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total</FONT></TD>
    <TD noWrap align=right 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=right width="4%"><FONT face=serif size=2>1,619,367</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right 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=right width="4%"><FONT face=serif size=2>2,371,442</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right 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=right width="4%"><FONT face=serif size=2>1,180,948</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=serif size=2>Operating Expenses:</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>Salaries,
      employee benefits, and payroll taxes</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>320,258</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>Office occupancy and operations</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>356,072</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>345,389</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>345,859</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>Business
      development</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>46,130</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>64,278</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>69,372</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>Taxes-other than payroll and income</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>155,510</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>138,687</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>79,871</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>Professional
      fees</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>243,394</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>141,297</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>141,500</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=serif size=2>Other expenses</FONT></TD>
    <TD noWrap align=right 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>98,236</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>105,873</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>114,240</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total</FONT></TD>
    <TD noWrap align=right 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=right width="4%"><FONT face=serif size=2>1,219,600</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right 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=right width="4%"><FONT face=serif size=2>795,524</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right 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=right width="4%"><FONT face=serif size=2>750,842</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=13>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=serif size=2>Equity in Net (Loss) Income of Affiliated Cos.</FONT></B></TD>
    <TD noWrap align=right 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(1,634,566)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=right 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>7,336,417</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>12,710,328</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><B><FONT face=serif size=2>(Loss) Income
      Before Income Taxes</FONT></B></TD>
    <TD noWrap align=right 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=right width="4%"><FONT face=serif size=2>(1,234,799)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=right 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=right width="4%"><FONT face=serif size=2>8,912,335</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=right 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=right width="4%"><FONT face=serif size=2>13,140,434</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=serif size=2>(Benefit) Provision for Income Taxes</FONT></B></TD>
    <TD noWrap align=right 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(52,000)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=right 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>510,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(45,000)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><B><FONT face=serif size=2>Net (Loss)
      Income</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;
(1,182,799)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>&nbsp; &nbsp;&nbsp; 8,402,335</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp; 13,185,434</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=serif size=2>Basic (Loss) Earnings per Common Share</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(0.50)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>3.39</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>5.22</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><B><FONT face=serif size=2>Weighted
      Average Shares Outstanding-Basic</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>2,364,361</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>2,479,321</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>2,527,927</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=serif size=2>Diluted (Loss) Earnings Per Common Share</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(0.50)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>3.35</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>5.14</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><B><FONT face=serif size=2>Weighted
      Average Shares Outstanding-Diluted</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>2,364,361</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>2,508,609</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>2,564,216</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"></TD></TR></TABLE>
<BR>
<P align=left><FONT face=serif size=2>See notes to condensed financial
statements.</FONT></P>
<P align=center><FONT face=serif size=2>66</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=right><B><FONT face=serif size=2><U>SCHEDULE II</U></FONT></B></P>
<P align=center><B><FONT face=serif size=2>INVESTORS TITLE COMPANY (PARENT
COMPANY)<BR>CONDENSED FINANCIAL INFORMATION OF REGISTRANT<BR></FONT></B><B><FONT face=serif size=2>STATEMENTS OF CASH FLOWS<BR></FONT></B><B><FONT face=serif size=2>FOR THE YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006</FONT></B></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="79%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>2007</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>2006</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=serif size=2>Operating Activities:</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (loss) income</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp;&nbsp;$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(1,182,799)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp;&nbsp;$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>8,402,335</FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp;&nbsp;$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>13,185,434</FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Adjustments
      to reconcile net (loss) income to net cash provided</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>by operating activities:</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Equity in net loss (earnings) of
      subsidiaries</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>1,634,566</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(7,336,417)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(12,710,328)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Depreciation</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>124,334</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>124,686</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>124,030</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Amortization, net</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>12,582</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>15,946</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(820)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Issuance of common stock in payment of bonuses and
      fees</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>1,946</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>1,998</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>5,013</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Net realized loss (gain) on investments</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>120,093</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(406,623)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>(Benefit) provision for deferred income
      taxes</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(119,000)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>5,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(55,000)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>(Increase) decrease in receivables</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(419,469)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>118,627</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(205,760)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Decrease (increase) in income taxes
      receivable-current</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>200,588</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(378,491)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>356,796</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>(Increase) decrease in other assets</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(4,002)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>47,725</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(153,593)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Increase in accounts payable and accrued
      liabilities</FONT></FONT></TD>
    <TD 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>126,398</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>30,572</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>260,468</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT face=serif size=2>&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;
      Net cash provided by operating activities</FONT></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=2>495,237</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=2>625,358</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=2>806,240</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=13>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=serif size=2>Investing Activities:</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Capital
      contribution to subsidiaries</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(125,000)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(115,000)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Return of
      capital contributions from subsidiaries</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>80,000</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Dividends
      received from subsidiaries</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>5,083,607</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>13,122,720</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>9,446,950</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Purchases of
      available-for-sale securities</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (7,437,280)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (31,721,740)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; (21,310,774)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Purchases of
      short-term securities</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(2,006,477)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(11,658,044)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>(1,459,550)</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Purchases of
      and net earnings from other investments</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(15,789)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(94,737)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Proceeds from
      sales and maturities of available-for-sale securities</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>10,900,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>33,900,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>13,600,000</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Proceeds from
      sales of short-term securities</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>736,694</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Proceeds from
      sales and distributions from other investments</FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>41,250</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>742,822</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>216,190</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Purchases of
      property</FONT></FONT></TD>
    <TD 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(12,551)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(18,151)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#ffffff><FONT face=serif size=2>&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;
      Net cash provided by investing activities</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>7,177,005</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>4,278,470</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>439,665</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR>
    <TD width="100%" bgColor=#ffffff colSpan=13>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=serif size=2>Financing Activities:</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#ffffff><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Retirement of
      common stock</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>(5,972,043)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>(4,660,259)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>(2,255,735)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Exercise of
      options</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>230,801</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>365,284</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>55,272</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#ffffff><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Dividends
      paid (net dividends paid to subsidiary of $81,669,</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="4%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="4%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="4%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#ffffff><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>$70,002 and $70,401 in 2008, 2007 and 2006,
      respectively)</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>(661,862)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>(595,808)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff><FONT face=serif size=2>(606,423)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>Net cash used in financing activities</FONT></FONT></TD>
    <TD 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(6,403,104)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(4,890,783)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD 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=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(2,806,886)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=13>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=serif size=2>Net Increase (Decrease) in Cash and Cash Equivalents</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>1,269,138</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>13,045</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(1,560,981)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><B><FONT face=serif size=2>Cash and Cash
      Equivalents, Beginning of Year</FONT></B></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=2>207,436</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=2>194,391</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=2>1,755,372</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=serif size=2>Cash and Cash Equivalents, End of Year</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>1,476,574</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>207,436</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>194,391</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=13>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=serif size=2>Supplemental Disclosures:</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%"><B><FONT face=serif size=2>Cash Paid
      (Refunded) During the Year For</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Income Taxes
      (net of refunds)</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(473,000)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>889,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>343,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=13>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Non cash net
      unrealized loss (gain) on investments, net of deferred</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>tax (benefit) provision of $987,103, ($219,001) and
      ($185,475) for 2008,</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <FONT face=serif>2007 and 2006, respectively</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>1,872,812</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(414,956)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(361,631)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2></FONT></TD></TR></TABLE>
<BR>
<P align=left><FONT face=serif size=2>See notes to condensed financial
statements.</FONT></P>
<P align=center><FONT face=serif size=2>67</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=right><B><FONT face=serif size=2><U>SCHEDULE II</U></FONT></B></P>
<P align=center><B><FONT face=serif size=2>INVESTORS TITLE COMPANY AND
SUBSIDIARIES<BR></FONT></B><B><FONT face=serif size=2>CONDENSED FINANCIAL
INFORMATION OF REGISTRANT<BR>NOTES TO THE CONDENSED FINANCIAL
STATEMENTS</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top width="100%"><FONT face=serif size=2>The accompanying
      condensed financial statements should be read in conjunction with the
      consolidated financial statements and notes thereto of Investors Title
      Company and Subsidiaries.</FONT></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>2.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%"><FONT face=serif size=2>Cash dividends paid to
      Investors Title Company by its wholly owned subsidiaries were as
      follows:</FONT></TD></TR></TABLE><BR>
<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="78%"><FONT face=serif size=2>Subsidiaries</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="6%" colSpan=3><B><FONT face=serif size=2>2008</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>2007</FONT></B></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=2>2006</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>Investors Title Insurance Company, net*</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>4,928,607</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>10,662,720</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>4,976,950</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=serif size=2>Investors Title
      Exchange Corporation</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>2,250,000</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>4,125,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>Investors Title Accommodation Corporation</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>5,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>25,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>170,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=serif size=2>Investors Title
      Management Services, Inc.</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>60,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>Investors Title Capital Management Corporation</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>35,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>60,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=serif size=2>Investors Title
      Commercial Agency</FONT></TD>
    <TD noWrap align=right 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=right width="4%"><FONT face=serif size=2>115,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD noWrap align=right 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=right width="4%"><FONT face=serif size=2>125,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD noWrap align=right 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=right width="4%"><FONT face=serif size=2>115,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      5,083,607</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;
      13,122,720</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; &nbsp;
      9,446,950</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>*</FONT></TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face=serif size=2>Total dividends of $5,010,276,
      $10,732,722 and $5,047,351 paid to the Parent Company in 2008, 2007 and
      2006, respectively, netted with dividends of $81,669, $70,002 and $70,401
      received from the Parent in 2008, 2007 and 2006,
  respectively.</FONT></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>68</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=right><B><FONT face=serif size=2><U>SCHEDULE III</U></FONT></B></P>
<P align=center><B><FONT face=serif size=2>INVESTORS TITLE COMPANY AND
SUBSIDIARIES<BR></FONT></B><B><FONT face=serif size=2>SUPPLEMENTARY INSURANCE
INFORMATION<BR>FOR THE YEARS ENDED DECEMBER 31, 2008, 2007 AND
2006</FONT></B></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 1pt solid" noWrap align=left width="30%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="6%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><FONT face=serif size=1>Future</FONT></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="6%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="4%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="4%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="4%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="8%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="4%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="5%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%"></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="6%" colSpan=3><FONT face=serif size=1>Policy</FONT></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%" colSpan=3><FONT face=serif size=1>Other</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="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="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="8%"></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="5%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%"></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="6%" colSpan=3><FONT face=serif size=1>Benefits</FONT></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%" colSpan=3><FONT face=serif size=1>Policy</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="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="6%" colSpan=3><FONT face=serif size=1>Benefit</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%"></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="5%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=1>Deferred</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><FONT face=serif size=1>Losses,</FONT></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%" colSpan=3><FONT face=serif size=1>Claims</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="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="6%" colSpan=3><FONT face=serif size=1>Claims,</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%"><FONT face=serif size=1>Amortization 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="1%"></TD>
    <TD noWrap align=center width="5%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=1>Policy</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><FONT face=serif size=1>Claims and</FONT></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%" colSpan=3><FONT face=serif size=1>and</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="6%" colSpan=3><FONT face=serif size=1>Net</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><FONT face=serif size=1>Losses and</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%"><FONT size=1>Deferred Policy</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><FONT face=serif size=1>Other</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=1>Acquisition</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><FONT face=serif size=1>Loss</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=1>Unearned</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><FONT size=1>Benefits</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><FONT face=serif size=1>Premium</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><FONT face=serif size=1>Investment</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><FONT face=serif size=1>Settlement</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%"><FONT face=serif size=1>Acquisition</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><FONT face=serif size=1>Operating</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"><FONT size=1>Premiums</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="30%"><FONT face=serif size=1>Segment</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="6%"><FONT face=serif size=1>Cost</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="6%" colSpan=3><FONT face=serif size=1>Expenses</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="6%"><FONT size=1>Premiums</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="5%" colSpan=3><FONT size=1>Payable</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="6%" colSpan=3><FONT face=serif size=1>Revenue</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="6%" colSpan=3><FONT face=serif size=1>Income</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="6%" colSpan=3><FONT face=serif size=1>Expenses</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="8%"><FONT face=serif size=1>Costs</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="6%" colSpan=3><FONT face=serif size=1>Expenses</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="5%"><FONT face=serif size=1>Written</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="37%" bgColor=#c0c0c0 colSpan=3><B><FONT face=serif size=1><U>Year Ended
      December 31, 2008</U></FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" 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="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="8%" 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="4%" 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="5%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%"><FONT face=serif size=1>Title Insurance</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>&nbsp; 39,238,000</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=1>&nbsp; 467,388</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>&nbsp; 63,662,187</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>&nbsp; 3,495,088</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>&nbsp; 15,206,637</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>&nbsp; 54,019,867</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=1>N/A</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=serif size=1>Exchange
      Services</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="6%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="6%" bgColor=#c0c0c0><FONT face=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="3%" bgColor=#c0c0c0><FONT face=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=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>37,840</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="8%" bgColor=#c0c0c0><FONT face=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="4%" bgColor=#c0c0c0><FONT face=serif size=1>1,160,070</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=1>N/A</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%"><FONT face=serif size=1>All Other</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></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="3%"><FONT face=serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>1,025,807</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>3,953,486</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=serif size=1>N/A</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="6%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>39,238,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="6%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>467,388</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>63,662,187</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>4,558,735</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>15,206,637</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="8%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>59,133,423</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="5%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=33>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="37%" bgColor=#c0c0c0 colSpan=3><B><FONT face=serif size=1><U>Year Ended
      December 31, 2007</U></FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="6%" 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="3%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="8%" 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="4%" 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="5%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%"><FONT face=serif size=1>Title Insurance</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>36,975,000</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=1>406,922</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>69,983,989</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>3,954,898</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>10,134,719</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>58,034,137</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=1>N/A</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=serif size=1>Exchange
      Services</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="6%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="6%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>29,501</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="8%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>1,480,094</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=1>N/A</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%"><FONT face=serif size=1>All Other</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></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="3%"><FONT face=serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>1,212,779</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>3,469,002</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=serif size=1>N/A</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="6%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>36,975,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="6%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>406,922</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>69,983,989</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>5,197,178</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>10,134,719</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="8%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>62,983,233</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="5%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=33>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="37%" bgColor=#c0c0c0 colSpan=3><B><FONT face=serif size=1><U>Year Ended
      December 31, 2006</U></FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="6%" 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="3%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="8%" 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="4%" 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="5%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%"><FONT face=serif size=1>Title Insurance</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>36,906,000</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=1>470,468</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>70,196,467</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>3,688,966</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>7,405,211</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="8%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=1>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=1>55,557,492</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%"><FONT face=serif size=1>N/A</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0><FONT face=serif size=1>Exchange
      Services</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="6%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="6%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>18,138</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="8%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>1,346,743</FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="5%" bgColor=#c0c0c0><FONT face=serif size=1>N/A</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%"><FONT face=serif size=1>All Other</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></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="3%"><FONT face=serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>619,231</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%"><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></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="4%"><FONT face=serif size=1>3,022,836</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=serif size=1>N/A</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="30%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="6%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>36,906,000</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="6%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>470,648</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>70,196,467</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>4,326,335</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>7,405,211</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="8%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>59,927,071</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="5%" bgColor=#c0c0c0></TD></TR></TABLE>
<BR>
<P align=center><FONT face=serif size=2>69</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=right><B><FONT face=serif size=2><U>SCHEDULE IV</U></FONT></B></P>
<P align=center><B><FONT face=serif size=2>INVESTORS TITLE COMPANY AND
SUBSIDIARIES<BR></FONT></B><B><FONT face=serif size=2>REINSURANCE<BR></FONT></B><B><FONT face=serif size=2>FOR THE YEARS ENDED
DECEMBER 31, 2008, 2007 AND 2006</FONT></B></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 1pt solid" noWrap align=left width="63%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="4%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="3%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>Assumed</FONT></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="5%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="10%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"></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="5%" colSpan=3><FONT face=serif size=2>Ceded
      to</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>from</FONT></TD>
    <TD noWrap align=center width="1%"></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="10%"><FONT face=serif size=2>Percentage
      of</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"></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="5%" colSpan=3><FONT face=serif size=2>Other</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="5%" colSpan=3><FONT face=serif size=2>Other</FONT></TD>
    <TD noWrap align=center width="1%"></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="10%"><FONT face=serif size=2>Amount
      Assumed</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="63%"></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%" colSpan=3><FONT face=serif size=2>Gross Amoun</FONT><FONT face=serif size=2>t</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=3><FONT face=serif size=2>Co</FONT><FONT face=serif size=2>mpanies</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=3><FONT face=serif size=2>Companies</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%" colSpan=2><FONT face=serif size=2>Net Amount</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%"><FONT face=serif size=2>to Net</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%" bgColor=#c0c0c0><B><FONT face=serif size=2><U>Year Ended December 31, 2008</U></FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" 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="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="10%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=serif size=2>Title
      Insurance</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp;&nbsp;
      $</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>&nbsp;&nbsp;
      63,770,383</FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=2>&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp;&nbsp;
      $</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&nbsp;
      275,089</FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=2>&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp;&nbsp;
      $</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>&nbsp;&nbsp;
      166,893</FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>&nbsp;&nbsp;
      63,662,187</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%"><FONT face=serif size=2>0.26%</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=18>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%" bgColor=#c0c0c0><B><FONT face=serif size=2><U>Year Ended December 31, 2007</U></FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" 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="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=serif size=2>Title
      Insurance</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>70,205,350</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>264,177</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>42,816</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>69,983,989</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%"><FONT face=serif size=2>0.06%</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=18>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%" bgColor=#c0c0c0><B><FONT face=serif size=2><U>Year Ended December 31, 2006</U></FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" 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="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="63%"><FONT face=serif size=2>Title
      Insurance</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>70,615,891</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>441,582</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>22,158</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>70,196,467</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%"><FONT face=serif size=2>0.03%</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>70</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=right><B><U><FONT face=serif size=2>SCHEDULE V</FONT></U></B></P>
<P align=center><B><FONT face=serif size=2>INVESTORS TITLE COMPANY AND
SUBSIDIARIES<BR></FONT></B><B><FONT face=serif size=2>VALUATION AND QUALIFYING
ACCOUNTS<BR></FONT></B><B><FONT face=serif size=2>FOR THE YEARS ENDED DECEMBER
31, 2008, 2007 AND 2006</FONT></B></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 1pt solid" noWrap align=left width="60%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="5%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Additions</FONT></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="10%"><FONT face=serif size=2>Additions</FONT></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="5%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="4%"></TD>
    <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Balance at</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Charged to</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%"><FONT face=serif size=2>Charged
      to</FONT></TD>
    <TD noWrap align=center width="1%"></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="1%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="4%"></TD>
    <TD noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Beginning of</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=2>Costs
      and</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="10%"><FONT face=serif size=2>Other Accounts
      &#150;</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="7%" colSpan=3><FONT face=serif size=2>Deductions &#150;</FONT></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="6%" colSpan=3><FONT face=serif size=2>Balance at End</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="60%"><FONT face=serif size=2>Description</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%" colSpan=2><FONT face=serif size=2>Period</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%" colSpan=2><FONT face=serif size=2>Expenses</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%"><FONT face=serif size=2>De</FONT><FONT face=serif size=2>scr</FONT><FONT face=serif size=2>ibe</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=3><FONT face=serif size=2>Describe*</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%" colSpan=3><FONT face=serif size=2>of Period</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%" bgColor=#c0c0c0><B><U><FONT face=serif size=2>2008</FONT></U></B></TD>
    <TD noWrap align=left width="1%" 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="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="10%" 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="5%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"><FONT face=serif size=2>Premium
      Receivable</FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="10%"></TD>
    <TD noWrap align=left width="1%"></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="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation Provision</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,170,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>7,397,511</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>(8,270,511)&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(a)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>1,297,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"><FONT face=serif size=2>Reserves for
      Claims</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>&nbsp;&nbsp;
      36,975,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>&nbsp;&nbsp;
      15,206,637</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="10%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>&nbsp;&nbsp;
      (12,943,637)&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%"><FONT face=serif size=2>(b)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp;&nbsp;
      $</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;39,238,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR>
    <TD noWrap width="99%" colSpan=16>&nbsp;</TD>
    <TD noWrap width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%" bgColor=#c0c0c0><B><U><FONT face=serif size=2>2007</FONT></U></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" 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="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"><FONT face=serif size=2>Premium
      Receivable</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="10%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Valuation
      Provision</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,128,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>5,298,809</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>(5,256,809)&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(a)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>2,170,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"><FONT face=serif size=2>Reserves for
      Claims</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>36,906,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>10,134,719</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="10%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>(10,065,719)&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%"><FONT face=serif size=2>(b)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp;&nbsp;
      $</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>36,975,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR>
    <TD noWrap width="99%" colSpan=16>&nbsp;</TD>
    <TD noWrap width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%" bgColor=#c0c0c0><B><U><FONT face=serif size=2>2006</FONT></U></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" 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="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"><FONT face=serif size=2>Premium
      Receivable</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="5%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="10%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="5%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif>Valuation
      Provision</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>2,444,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>4,927,691</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="10%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>(5,243,691)&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(a)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>&nbsp;&nbsp; $</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>2,128,000</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="60%"><FONT face=serif size=2>Reserves for
      Claims</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>34,857,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>7,405,211</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=center width="10%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$</FONT></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>(5,356,211)&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=center width="1%"><FONT face=serif size=2>(b)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&nbsp;&nbsp;
      $</FONT></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>36,906,000</FONT></TD>
    <TD noWrap align=right width="1%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top width="100%"><FONT face=serif size=2>Cancelled
      premiums</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top width="100%"><FONT face=serif size=2>Payments of claims,
      net of recoveries</FONT></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>71</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>INDEX TO EXHIBITS</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="3%"><FONT face=serif size=2>Exhibit</FONT>
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="95%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"><FONT face=serif size=2>Number</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="5%"><FONT face=serif size=2>Description</FONT> </TD>
    <TD noWrap align=left width="90%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3(i)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Articles of Incorporation dated January 22, 1973,
      incorporated by reference to Exhibit 1 to Form 10 dated June 12,
      1984</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="95%" colSpan=2><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>3(ii)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Bylaws &#150; (amended and restated November 12, 2007),
      incorporated by reference to Exhibit 3.1 to the Registrant&#146;s Current
      Report on Form 8-K dated November 12, 2007, File No. 0-11774</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="95%" colSpan=2><FONT face=serif size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>4</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Rights Agreement, dated as of November 12, 2002, between
      Investors Title Company and Central Carolina Bank, a division of National
      Bank of Commerce, incorporated by reference to Exhibit 1 to Form 8-A filed
      November 15, 2002</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(i)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>1997 Stock Option and Restricted Stock Plan,
      incorporated by reference to Exhibit 10(viii) to Form 10-K for the year
      ended December 31, 1996</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(ii)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Form of Nonqualified Stock Option Agreement to
      Non-employee Directors dated May 13, 1997 under the 1997 Stock Option and
      Restricted Stock Plan, incorporated by reference to Exhibit 10(ix) to Form
      10-Q for the quarter ended June 30, 1997</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(iii)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Form of Nonqualified Stock Option Agreement under 1997
      Stock Option and Restricted Stock Plan, incorporated by reference to
      Exhibit 10(x) to Form 10-K for the year ended December 31,
  1997</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(iv)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Form of Incentive Stock Option Agreement under 1997
      Stock Option and Restricted Stock Plan, incorporated by reference to
      Exhibit 10(xi) to Form 10-K for the year ended December 31,
  1997</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(v)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Form of Amendment to Incentive Stock Option Agreement
      between Investors Title Company and George Abbitt Snead incorporated by
      reference to Exhibit 10(xii) to Form 10-Q for the quarter ended June 30,
      2000</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(vi)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>2001 Stock Option and Restricted Stock Plan,
      incorporated by reference to Exhibit 10(xiii) to Form 10-K for the year
      ended December 31, 2000</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(vii)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Amended and Restated Employment Agreement&nbsp;effective
      January 1, 2009 for J. Allen Fine</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%"></TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(viii)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Amended and Restated Employment Agreement effective
      January 1, 2009 for James A. Fine, Jr.</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%"></TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(ix)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Amended and Restated Employment Agreement effective
      January 1, 2009 for W. Morris Fine</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%"></TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(x)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Amended and Restated Death Benefit Plan Agreement
      effective January 1, 2009 for J. Allen Fine</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%"></TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(xi)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Amended and Restated Death Benefit Plan Agreement
      effective January 1, 2009 for James A. Fine, Jr.</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%"></TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(xii)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Death Benefit Plan Agreement effective January 1, 2009
      for W. Morris Fine</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%"></TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(xiii)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Amended and Restated Nonqualified Deferred Compensation
      Plan effective January 1, 2009</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%"></TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>10(xiv)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Amended and Restated Nonqualified Supplemental
      Retirement Benefit Plan effective January 1, 2009</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%"></TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>21</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Subsidiaries of Registrant, incorporated by reference to
      Exhibit 21 to Form 10-K for the year ended December 31, 2003</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%">&nbsp; </TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>23</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Consent of Independent Registered Public Accounting
      Firm</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%"></TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>31(i)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Certification of Chief Executive Officer pursuant to
      Section 302 of the Sarbanes-Oxley Act of 2002</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%"></TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>31(ii)</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Certification of Chief Financial Officer pursuant to
      Section 302 of the Sarbanes-Oxley Act of 2002</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="3%"></TD>
    <TD vAlign=top align=left width="1%"></TD>
    <TD vAlign=top align=left width="95%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="3%" bgColor=#c0c0c0><FONT face=serif size=2>32</FONT></TD>
    <TD vAlign=top align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD vAlign=top align=left width="95%" bgColor=#c0c0c0 colSpan=2><FONT face=serif size=2>Certification of Chief Executive Officer and Chief
      Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
      2002</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>72</FONT></P>
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end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.VII
<SEQUENCE>3
<FILENAME>exhibit10-vii.htm
<DESCRIPTION>AMENDED AND RESTATED EMPLOYMENT AGREEMENT EFFECTIVE JANUARY 1, 2009
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
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<BODY bgcolor="#ffffff">

<P align=center><B><FONT face=serif><FONT face=serif size=2>AMENDED AND RESTATED
EMPLOYMENT AGREEMENT</FONT></FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (&#147;<U><FONT face=serif>Agreement</FONT></U>&#148;) effective as of January 1, 2009 (the &#147;<U><FONT face=serif>Effective Date</FONT></U>&#148;), is between Investors Title Insurance
Company, a North Carolina corporation (the &#147;<U><FONT face=serif>Company</FONT></U>&#148;), and J. Allen Fine (&#147;<U><FONT face=serif>Executive</FONT></U>&#148;).</FONT></P>
<P align=center><B><FONT face=serif><FONT face=serif size=2>RECITALS:</FONT></FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
Executive is presently the Chief Executive Officer of the Company and has made
and is expected to continue to make major contributions to the profitability,
growth and financial strength of the Company;</FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WHEREAS, the Company desired to
secure the services of the Executive for the future;</FONT></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the parties hereto previously entered into that certain Employment Agreement
effective as of November 17, 2003, as amended June 1, 2004 (the &#147;Existing
Employment Agreement&#148;);</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
pursuant to Section 16 of the Existing Employment Agreement, the Existing
Employment Agreement may be amended by the parties hereto; and</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the parties hereto deem it appropriate to amend and restate the Existing
Employment Agreement;</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>NOW,
THEREFORE, in consideration of the mutual covenants contained herein the parties
hereto agree as follows:</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.<FONT face=serif></FONT> <U>Employment</U>. The Company shall employ Executive, and
Executive accepts continued employment with the Company, upon the terms and
conditions set forth in this Agreement. The term of this Agreement shall be for
a period of five (5) years beginning on the date hereof, and shall on the first
day of each calendar month, unless either party gives written notice to the
other party at least thirty (30) days prior to such date of intent not to extend
this Agreement, be extended one (1) additional month so that at all times the
term of this Agreement shall be for a period of five (5) years unless earlier
terminated as provided in paragraph 4 hereof (the &#147;Employment
Period&#148;).</FONT><FONT face=serif></FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>2.<FONT face=serif></FONT>
<U>Position and Duties</U>.</FONT></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)<FONT face=serif></FONT> During the Employment Period, Executive shall serve as the
Chief Executive Officer of the Company or in such other similar position as the
Executive and the Board shall agree upon and, subject to the management of the
business and affairs of the Company at the direction of the Board of Directors
of the Company, shall have the normal duties, responsibilities and authority of
an executive serving in such position.</FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(b)<FONT face=serif></FONT>
Executive shall report to the Board of Directors.</FONT></FONT><FONT face=serif></FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2><FONT face=serif><FONT face=serif size=2>(c)<FONT face=serif></FONT> During the
Employment Period, Executive shall devote his best efforts and his full business
time and attention (except for participation in charitable and civic endeavors
and </FONT>management of Executive&#146;s personal investments and business
interests, provided such activities do not have more than a <U><FONT face=serif>de minimis</FONT></U> effect on
Executive&#146;s performance of his duties under this Agreement) to the business and
affairs of the Company, its parent, subsidiaries and affiliates. Executive shall
perform his duties and responsibilities to the best of his abilities in a
diligent, trustworthy, businesslike and efficient manner.</FONT></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)<FONT face=serif></FONT> Executive shall perform his duties and responsibilities
principally in the Chapel Hill, North Carolina area and shall not be required to
travel outside that area any more extensively than Executive has done in the
recent past in the ordinary course of the business of the Company.</FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>3.<FONT face=serif></FONT>
<U>Compensation and Benefits</U>.</FONT></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)<FONT face=serif></FONT> <U>Salary</U>. The Company agrees to pay Executive a salary
during the Employment Period in installments based on the Company&#146;s practices as
may be in effect from time to time. Executive&#146;s initial salary shall be at the
rate of Three Hundred Three Thousand Three Hundred Sixty and No/100 Dollars
($303,360) per year, as may be increased from time to time (the &#147;<U><FONT face=serif>Base Salary</font></U>&#148;), provided,
however, that if there is a Change in Control (as hereafter defined), the
Executive&#146;s Base Salary as then in effect shall double effective at the time the
Change in Control becomes effective. Executive&#146;s Base Salary shall be reviewed
by the Compensation Committee of the Board (the &#147;<U><FONT face=serif>Compensation Committee</FONT></U>&#148;) and shall be increased, but not
decreased, from time to time at least in an amount as shall be substantially
consistent with increases in base salary generally awarded in the ordinary
course of business to other peer executives of the Company and its affiliated
companies. As used in this Agreement, the term &#147;affiliated companies&#148; shall
include any company controlled by, controlling or under common control with the
Company.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)<FONT face=serif></FONT> <U>Bonuses</U>. Executive will be entitled to such cash
bonuses as the Board may determine, in its sole discretion, from time to time
(&#147;<U><FONT face=serif>Bonus Compensation</FONT></U>&#148;). Any Bonus Compensation
payable hereunder shall be paid no later than March 15 of the calendar year
following the calendar year in which such cash bonus shall cease to be subject
to a substantial risk of forfeiture under Section 409A of the Internal Revenue
Code of 1986, as amended (the &#147;Code&#148;).</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)<FONT face=serif></FONT> <U>Expense Reimbursement</U>. The Company shall reimburse
Executive for all reasonable expenses incurred by Executive during the
Employment Period in the course of performing his duties under this Agreement
that are consistent with the Company&#146;s policies in effect from time to time with
respect to travel, entertainment and other business expenses, subject to the
Company&#146;s requirements applicable generally with respect to reporting and
documentation of such expenses.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d) <U>Supplemental Retirement Cash Payment</U>. During the
portion of the Employment Period following December 31, 2008, on an annual basis
(and in no event later than March 15 of each calendar year), the Company shall
make a cash payment equal to the amount that the Company would have contributed
to such Executive&#146;s account under the Section 401(k) Plan as Non-Elective
Company Contributions during such calendar year if Non-Elective Company
Contributions to the Section 401(k) Plan for such calendar year had not been
limited by Code Sections 401(a)(17), 401(k)(3), 401(m), 402(g), and 415(c) less
the Non-Elective Company Contributions
actually contributed to such Executive&#146;s account under the Section 401(k) Plan
during such calendar year. Such amounts shall constitute Compensation within the
meaning of the Investors Title Insurance Company Nonqualified Deferred
Compensation Plan.</FONT></P>
<P align=center><FONT face=serif size=2>2</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(e)<FONT face=serif></FONT> <U>Compensation for Serving on Board</U>. Executive shall be
entitled to no extra compensation for serving on the Company&#146;s or its affiliated
companies&#146; Boards of Directors.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(f)<FONT face=serif></FONT> <U>Vacation and Sick Leave</U>. Executive shall be entitled
annually to thirty (30) days of paid vacation and to unlimited sick leave,
provided the Employment Period is subject to termination for disability as
provided under paragraph 4(b). The vacation leave shall be cumulative; provided,
however, that Executive shall not be compensated for any unused vacation
leave.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(g)<FONT face=serif></FONT> <U>Other Benefits</U>. Executive shall be entitled during the
Employment Period to participate, on the same basis as other executives of the
Company, in such other benefits for which substantially all of the executives of
the Company are from time to time generally eligible, as determined from time to
time by the Board.</FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>4.<FONT face=serif></FONT>
<U>Employment Period</U>.</FONT></FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)<FONT face=serif></FONT> The Employment Period shall continue until terminated as
provided in subsection (b) below. Notwithstanding anything herein to the
contrary, whether a termination of employment has occurred for purposes of any
deferred compensation payable hereunder and subject to Code Section 409A shall
be determined in a manner consistent with Section 409A of the Internal Revenue
Code of 1986, as amended (the &#147;Code&#148;) and the Company&#146;s 409A Policy, if
any.</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)<FONT face=serif></FONT> <FONT face=serif color=#0c0c0c>The Employment</FONT> Period
shall end upon the first to occur of any of the following events:</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(i)<FONT face=serif></FONT> Executive&#146;s death;</FONT></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(ii)<FONT face=serif></FONT> the
Company&#146;s termination of Executive&#146;s employment on account of Executive&#146;s having
become unable (as determined by the Board in good faith) to perform regularly
Executive&#146;s duties hereunder by reason of illness or incapacity for a period of
more than one hundred eighty (180) consecutive days, plus accrued vacation days
</FONT><FONT face=serif><FONT face=serif size=2>(&#147;<U><FONT face=serif>Termination for Disability</FONT></U>&#148;);</FONT></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iii)<FONT face=serif></FONT> the Company&#146;s termination of Executive&#146;s employment for
Cause</FONT></FONT><FONT face=serif></FONT> <FONT face=serif><FONT face=serif size=2>(&#147;<U><FONT face=serif>Termination for
Cause</FONT></U>&#148;);</FONT></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iv)<FONT face=serif></FONT> the
Company&#146;s termination of Executive&#146;s employment other than pursuant to
subsections (b)(ii) or (iii) above (<FONT face=serif>&#147;<U>Termination without
Cause</U></FONT>&#148;) by means of advance written notice of at least sixty (60)
days;</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(v)<FONT face=serif></FONT>
Executive&#146;s termination of his employment for Good Reason by means of advance
written notice to the Company at least thirty (30) days prior to the effective
date of such termination (&#147;<U><FONT face=serif>Termination by Executive for Good
Reason</FONT></U>&#148;);</FONT></P>
<P align=center><FONT face=serif size=2>3</FONT></P>
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<PAGE>

<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(vi) Executive&#146;s retirement at any time following his 70<SUP>th</SUP> birthday, upon written notice to the Company of at
least six (6) months (&#147;<U>Retirement</U>&#148;);</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(vii) Executive&#146;s termination of his
employment within thirty (30) days following a Change in Control by written
notice to the Company.</FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(c)<FONT face=serif></FONT> For
purposes of this Agreement, &#147;<U><FONT face=serif>Cause</FONT></U>&#148; shall
mean:</FONT></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(i)<FONT face=serif></FONT> <FONT face=serif color=#191919>the Executive&#146;s conviction of,
or plea of guilty or</FONT> <U><FONT face=serif color=#191919>nolo
contendere</FONT></U> <FONT face=serif color=#191919>to, any</FONT> crime
involving dishonesty or moral turpitude;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(ii)<FONT face=serif></FONT> the commission by Executive of a fraud against the Company or
any of its parent, subsidiaries or affiliates for which he is
convicted;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(iii)<FONT face=sans-serif></FONT> gross negligence or willful misconduct
by Executive with respect to the Company or any of its parent, subsidiaries or
affiliates which causes material detriment to the Company or any of its parent,
subsidiaries or affiliates;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(iv)<FONT face=serif></FONT> the falsification or manipulation of any records of the
Company or any of its parent, subsidiaries or affiliates;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(v)<FONT face=serif></FONT> repudiation of this Agreement by Executive or Executive&#146;s
abandonment of employment with the Company or any of its parent, subsidiaries or
affiliates;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(vi)<FONT face=serif></FONT> breach by Executive of any of the &#145;agreements in paragraphs 6
and 7 hereof prior to the end of the Employment Period;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(vii)<FONT face=sans-serif></FONT> failure or refusal of Executive to
perform his duties with the Company or any of its parent, subsidiaries or
affiliates or to implement or follow the policies or directions of the Board
within thirty (30) days after a written demand for performance is delivered to
Executive by the Board that specifically identifies the manner in which the
Board believes that Executive has not performed his duties or failed to
implement or follow the policies or directions of the Board.</FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(d)<FONT face=serif></FONT> For
purposes of this Agreement,</FONT></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(i)<FONT face=serif></FONT> &#147;Good Reason&#148; shall mean any breach by the Company of this
Agreement that is material and that is not cured within thirty (30) days after
written notice thereof to the Company from Executive;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(ii)<FONT face=serif></FONT> &#147;Change in Control&#148; shall be deemed to have occurred upon the
occurrence of any of the following events:</FONT></P>

<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(A) Any &#147;person&#148; (as such term is used in Sections 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended (the &#147;Exchange
Act&#148;)), other than Executive or his affiliates or immediate family members, is
or becomes the &#147;beneficial owner&#148; (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company, or its parent,
Investors Title Company, representing
50% or more of the combined voting power of the Company&#146;s or Investors Title
Company&#146;s outstanding securities then entitled ordinarily (and apart from rights
accruing under special circumstances) to vote for the election of directors;
or</FONT></P>
<P align=center><FONT face=serif size=2>4</FONT></P>
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<PAGE>

<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(B)<FONT face=serif></FONT> Individuals who are &#147;Continuing Directors&#148; (as hereinafter
defined) of Investors Title Company cease for any reason to constitute at least
a majority of its Board of Directors; or</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(C)<FONT face=serif></FONT> A sale of more than 50% of the assets (measured in terms of
monetary value) of the Company or Investors Title Company is consummated;
or</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(D)<FONT face=serif></FONT> Any merger, consolidation, or like business combination or
reorganization of the Company or Investors Title Company is consummated that
results in the occurrence of any event described in subparagraph (A), (B) or (C)
above.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iii)<FONT face=serif></FONT> &#147;Continuing Directors&#148; shall mean:</FONT></FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(A)<FONT face=serif></FONT> <FONT face=serif color=#262626>the directors of Investors
Title Company in office on the date of this</FONT> Agreement; or</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(B)<FONT face=serif></FONT> any successor to any such director (and any additional
director) who after the date of this Agreement (i) was nominated or selected by
a majority of the Continuing Directors in the office at the time of his or her
nomination or selection and (ii) who is not an &#147;affiliate&#148; or &#147;associate&#148; (as
defined in Regulation 12B under the Exchange Act) of any person who is the
beneficial owner, directly or indirectly, of securities representing 50% or more
of the combined voting power of the Company&#146;s outstanding securities then
entitled ordinarily to vote for the election of directors.</FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>5.<FONT face=serif></FONT>
<U>Post-Employment Period Payments</U>.</FONT></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)<FONT face=serif></FONT> If the Employment Period ends pursuant to paragraph 4 hereof
for any reason, Executive shall cease to have any rights to salary, options,
expense reimbursements or other benefits other than: (i) any salary which has
accrued but is unpaid, a prorated Bonus Compensation for the year of
termination, not less than the Executive&#146;s pro rata share of his average bonus
paid over the prior three years, and any reimbursable expenses which have been
incurred but are unpaid as of the end of the Employment Period (all of which
shall be paid within thirty (30) days of termination), (ii) any option rights or
plan benefits which by their terms extend beyond termination of Executive&#146;s
employment (but only to the extent provided in any option theretofore granted to
Executive or any other benefit plan in which Executive has participated as an
employee of the Company), (iii) any benefits to which Executive is entitled
under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security
Act of 1974, as amended (&#147;COBRA&#148;), (iv) any accumulations and benefits to which
employee is entitled under the Nonqualified Supplemental Retirement Benefit Plan
and a Nonqualified Deferred Compensation Plan, and (v) any other amount(s)
payable pursuant to the succeeding provisions of this paragraph 5.</FONT></P>
<P align=center><FONT face=serif size=2>5</FONT></P>
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<PAGE>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)<FONT face=serif></FONT> If the Employment Period ends pursuant to paragraph 4 hereof
on account of Executive&#146;s death, Termination for Disability or Retirement, the
Executive or, in the event of death, his beneficiary (as identified to the
Company in writing) shall be entitled to receive the following: (i) except in
the case of the Executive&#146;s death, a lump sum payment of three times the
Executive&#146;s then current base salary, but in no event less than $910,000 (ii)
except in the case of the Executive&#146;s death, a lump sum payment of three times
the average of the Bonus Compensation paid to the Executive during the three (3)
years prior to Executive&#146;s death, Disability or Retirement, but in no event less
than $1,055,000 (iii) continued participation by Executive and his spouse in the
Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until Executive dies or, if later, until his surviving spouse dies, (iv) any
accumulations and benefits to which Employee is entitled under the Nonqualified
Supplemental Retirement Benefit Plan and a Nonqualified Deferred Compensation
Plan, (v) continued participation by each of Executive&#146;s dependent children in
the Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until each child is no longer a dependent, as defined by the applicable plan,
(vi) at the Executive&#146;s option, the Company shall transfer to the Executive the
ownership of any and all life insurance policies insuring the Executive&#146;s life
that the Company has purchased and the Executive shall thereafter be liable for
all payments due on such policies, and (vii) immediate vesting of Executive&#146;s
existing stock options.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)<FONT face=serif></FONT> If the Employment Period ends pursuant to paragraph 4 hereof
on account of Termination for Cause, the Company shall pay Executive (i) an
amount equal to that amount Executive would have received as salary (based on
Executive&#146;s Base Salary then in effect) had the Employment Period remained in
effect until the later of the effective date of the Company&#146;s termination of
Executive&#146;s employment or the date thirty (30) days after the Company&#146;s notice
to Executive of such termination, and (ii) any accumulations and benefits to
which Employee is entitled under the Nonqualified Supplemental Retirement
Benefit Plan and a Nonqualified Deferred Compensation Plan. The Company shall
make no further payments to Executive, except as provided in Section 5(a)
hereof.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)<FONT face=serif></FONT> If the Employment Period ends pursuant to paragraph 4 hereof
on account of a Termination without Cause or a Termination by Executive for Good
Reason, the Executive shall be entitled to receive the following: (i) a lump sum
payment equal to five times that of the Executive&#146;s then current Base Salary,
but in no event less than $1,516,800, (ii) a lump sum payment equal to five
times the average of the Bonus Compensation paid to the Executive during the
three (3) years prior to the termination date, but in not event less than
$1,758,335, (iii) any accumulations and benefits to which Employee is entitled
under the Nonqualified Supplemental Retirement Benefit Plan and a Nonqualified
Deferred Compensation Plan, (iv) continued participation by Executive and his
spouse in the Company&#146;s medical, dental and vision health plan, at the Company&#146;s
expense, until Executive dies or, if later, until his surviving spouse dies, (v)
continued participation by each of Executive&#146;s dependent children in the
Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until each child is no longer a dependent, as defined by the applicable plan,
(vi) immediate vesting of Executive&#146;s existing stock options, and (vii) at the
Executive&#146;s option, the Company shall transfer to the Executive the ownership of
any and all life insurance policies insuring the Executive&#146;s life that the
Company has purchased and the Executive shall thereafter be liable for all
payments due on such policies.</FONT></P>
<P align=center><FONT face=serif size=2>6</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(e)<FONT face=serif></FONT> If the Executive terminates his employment because of a
Change in Control, the Executive shall be entitled to receive the following: (i)
a lump sum payment equal to 2.99 times the sum of the Executive&#146;s then current
Base Salary, but in no event less than $907,046 (ii) a lump sum payment equal to
2.99 times the amount equal to the average of the Bonus Compensation paid to the
Executive during the three (3) years prior to the termination date, but in no
event less than $1,051,484, (iii) continued participation by Executive and his
spouse in the Company&#146;s medical, dental and vision health plan, at the Company&#146;s
expense, until Executive dies or, if later, until his surviving spouse dies,
(iv) continued participation by each of Executive&#146;s dependent children in the
Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until each child is no longer a dependent, as defined by the applicable plan,
(v) immediate vesting of Executive&#146;s existing stock options, (vi) any
accumulations and benefits to which Employee is entitled under the Nonqualified
Supplemental Retirement Benefit Plan and a Nonqualified Deferred Compensation
Plan, and (vii) at the Executive&#146;s option, the Company shall transfer to the
Executive the ownership of any and all life insurance policies insuring the
Executive&#146;s life that the Company has purchased and the Executive shall
thereafter be liable for all payments due on such policies. Upon entitlement,
all sums due hereunder will be payable in cash or by official bank check within
thirty (30) days following termination of the Executive&#146;s employment.
Notwithstanding anything to the contrary contained herein, in the event that any
portion of the payments or benefits received or to be received by the Executive,
together with any other payments received by him, whether paid or payable
pursuant to the terms of this Agreement or any other plan, arrangement or
agreement with the Company or any other person or entity, would cause, either
directly or indirectly, an &#147;excess parachute payment&#148; to exist within the
meaning of said Section 280G of the Internal Revenue Code, the payments
hereunder shall be reduced until no portion of the payments would fail to be
deductible by reason of being an &#147;excess parachute payment&#148;. In the event that
any dispute arises as to whether an &#147;excess parachute payment&#148; exists, the
appropriate calculations shall be made by the Company&#146;s regularly employed
independent public auditors and delivered to the Executive in writing within
thirty (30) days following the date for payment of such severance payment, and
the Company will warrant to the Executive the accuracy of the calculations and
the information on which they are based.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(f)<FONT face=serif></FONT> Executive shall not be required to mitigate the amount of any
payment or benefit provided for in this Agreement by seeking other employment or
otherwise.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(g)<FONT face=serif></FONT> Notwithstanding anything herein to the contrary, with respect
to any right to a payment that constitutes a &#147;nonqualified deferred compensation
plan&#148; subject to Section 409A of the Code, any payment to be made upon the
Executive&#146;s termination of employment shall be delayed until the first day of
the seventh month following the Participant&#146;s termination of employment if the
Participant is a &#147;specified employee&#148; within the meaning of Section 409A of the
Code and the Company&#146;s 409A Policy, if any.</FONT></P>
<P align=center><FONT face=serif size=2>7</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2><FONT face=serif><FONT face=serif size=2>(h)<FONT face=serif></FONT> Notwithstanding
anything herein to the contrary, with respect to any right to a payment that (i)
is to be made under this Section 5 based on the continued participation by
Executive, his spouse and each of Executive&#146;s dependent children in the
Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense, and
(ii) constitutes a &#147;nonqualified deferred compensation plan&#148; subject to Section
409A of the Code, any such payment shall be made in accordance with Treasury
Regulation &#167;1.409A-3(i)(1)(iv). Expenses eligible for</FONT><FONT face=serif></FONT> reimbursements and in-kind benefits shall be determined based
on the coverage provided by the relevant plan maintained by the Company for
eligible employees, and any payments shall be made only for the period or
periods specified in this Section 5. Any amount of expenses eligible for
reimbursement or in-kind benefit provided during a taxable year shall not affect
the expenses eligible for reimbursement or in-kind benefits to be provided in
any other taxable year. The reimbursement of any eligible expense shall be made
on or before the last day of Executive&#146;s taxable year following the taxable year
in which the expense was incurred. The right to reimbursement or in-kind
benefits shall not be subject to liquidation or exchange for another
benefit.</FONT></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>6.<FONT face=serif></FONT> <U>Confidential Information</U>. Executive acknowledges that
the information, observations and data obtained by Executive while employed by
the Company pursuant to this Agreement, as well as those obtained by Executive
while employed by the Company or any of its subsidiaries or affiliates or any
predecessor thereof prior to the date of this Agreement, concerning the business
or affairs of the Company or any of its subsidiaries or affiliates or any
predecessor thereof (unless and except to the extent the foregoing become
generally known to and available for use by the public other than as a result of
Executive&#146;s acts or omissions to act, &#147;<U><FONT face=serif>Confidential
Information</FONT></U>&#148;) are the property of the Company or such parent,
subsidiary or affiliate. Therefore, Executive agrees that during the Employment
Period and thereafter Executive shall not disclose any Confidential Information
without the prior written consent of the Board unless and except to the extent
that such disclosure is (i) made in the ordinary course of Executive&#146;s
performance of Executive&#146;s duties under this Agreement or (ii) required by any
subpoena or other legal process (in which event Executive will give the Company
prompt notice of such subpoena or other legal process in order to permit the
Company to seek appropriate protective orders), and that Executive shall not use
any Confidential Information for Executive&#146;s own account without the prior
written consent of the Board. Executive shall deliver to the Company at the
termination of the Employment Period, or at any other time the Company may
reasonably request, all memoranda, notes, plans, records, reports, computer
tapes and software and other documents and data (and copies thereof) relating to
the Confidential Information, or to the work product or the business of the
Company or any of its parent, subsidiaries or affiliates that Executive may then
possess or have under his control.</FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>7.<FONT face=serif></FONT>
<U>Noncompetition; Nonsolicitation</U>.</FONT></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)<FONT face=serif></FONT> Executive acknowledges that in the course of his employment
with the Company pursuant to this Agreement, Executive will become familiar, and
during the course of Executive&#146;s employment by the Company or any of its parent,
subsidiaries or affiliates or any predecessor thereof prior to the date of this
Agreement, Executive has become familiar with trade secrets and customer lists
of and other confidential information concerning the Company and its parent,
subsidiaries and affiliates and predecessors thereof and that Executive&#146;s
services have been and will be of special, unique and extraordinary value to the
Company.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b) Executive agrees that during the Employment Period and, as a
condition to the receipt of payments as provided under paragraph 4, for a period
of two (2) years after termination of Executive&#146;s employment with the Company,
in the State of North Carolina Executive shall not in any manner, directly or
indirectly, through any person, firm or corporation, alone or as a member of a
partnership or as an officer, director, shareholder, investor or employee of or in any other corporation or
enterprise or otherwise, engage or be engaged in, or assist any other person,
firm, corporation or enterprise in engaging or being engaged in, any business
then actively being conducted by the Company or any of its parent, subsidiaries
or affiliates.</FONT></P>
<P align=center><FONT face=serif size=2>8</FONT></P>
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<PAGE>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)<FONT face=serif></FONT> Executive further agrees that, during the Employment Period
and, as a condition to the receipt of payments as provided under paragraph
4,<B><FONT face=serif></FONT></B> for a period of two (2) years after
termination of Executive&#146;s employment with the Company, Executive shall not in
any manner, directly or indirectly, induce or attempt to induce any employee of
the Company or of any of its parent, subsidiaries or affiliates (other than his
spouse, if applicable) to quit or abandon his or her employ.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)<FONT face=serif></FONT> Nothing in this paragraph 7 shall prohibit Executive from
being: (1) a shareholder in a mutual fund or a diversified investment company or
(ii) a passive owner of not more than 5% of the outstanding equity securities of
any class of a corporation or other entity which is publicly traded, so long as
Executive has no active participation in the business of such corporation or
other entity.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(e)<FONT face=serif></FONT> In the event Executive violates any legally enforceable
provision of this Agreement as to which there is a specific time period during
which Executive is prohibited from taking certain actions or from engaging in
certain activities, as set forth in this Agreement, then, in such event, the
violation shall toll the running of such time period from the date of such
violation until the violation ceases.</FONT><B><FONT face=serif></FONT></B>
<FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(f)<FONT face=serif></FONT> Executive acknowledges that he has carefully considered the
nature and extent of the restrictions on him and the rights and remedies
conferred on the Company under this Agreement. Executive further acknowledges
and agrees that the same are reasonable in time and territory, are designed to
eliminate competition which would otherwise be unfair to the Company, do not
stifle Executive&#146;s inherent skill and experience, would not operate as a bar to
Executive&#146;s sole means of support, are fully required to protect the legitimate
interests of the Company and do not confer a benefit upon the Company
disproportionate to Executive&#146;s detriment.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(g)<FONT face=serif></FONT> If, at the time of enforcement of this paragraph, a court
holds that the restrictions stated herein are unreasonable under circumstances
then existing, the parties hereto agree that the maximum period, scope or
geographical area reasonable under such circumstances shall be substituted for
the stated period, scope or area and that the court shall be allowed to revise
the restrictions contained herein to cover the maximum period, scope and area
permitted by law.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8. <U>Enforcement</U>. Because Executive&#146;s services are unique
and because Executive has access to Confidential Information and work product,
the parties hereto agree that the Company would be damaged irreparably in the
event any of the provisions of paragraph 7 hereof were not performed in
accordance with their specific terms or were otherwise breached and that money
damages would be an inadequate remedy for any such non-performance or breach.
Therefore, the Company or its successors or assigns shall be entitled, in
addition to other rights and remedies existing in their favor, to an injunction
or injunctions to prevent any breach or threatened breach of any of such provisions and to enforce such
provisions specifically (without posting a bond or other
security).</FONT></P>
<P align=center><FONT face=serif size=2>9</FONT></P>
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<PAGE>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>9.<FONT face=serif></FONT> <U>Consulting and Advice</U>. During the time period that the
Executive receives post-employment payments under paragraph 5, other than by
reason of death or disability, the Executive agrees that when and as requested,
he will consult with the Company concerning policies, procedures and operations.
The requests by the Company for consultation (1) shall comply with applicable
requirements of Section 409A of the Code and the Company&#146;s 409A Policy, if any,
regarding the determination of whether a termination of employment has occurred;
(2) shall be at reasonable times, with appropriate notice, not more frequent
than three (3) times a month; and (3) may, at the Executive&#146;s election, be
through telephone communication.</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.<FONT face=serif></FONT> <U>Survival</U>. Subject to any limits on applicability
contained therein, paragraphs 5, 6, 7 and 9 hereof shall survive and continue in
full force in accordance with their terms notwithstanding any termination of the
Employment Period.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>11.<FONT face=serif></FONT> <U>Notices</U>. Any notice provided for in this Agreement
shall be in writing and shall be either personally delivered, sent by reputable
overnight carrier or mailed by first class mail, return receipt requested. Any
notice to Executive will be delivered to the last home address on file with the
Company and any notice to the Company should be delivered to:</FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Investors
Title Insurance Company<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Attention:
Secretary<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>P. O.
Drawer 2687<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Chapel
Hill, NC 27515-2687</FONT></FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2>or such other address
or to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party. Any notice under this
Agreement will be deemed to have been given when so delivered, sent or
mailed.</FONT></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>12.<FONT face=serif></FONT> <U>Severability</U>. Whenever possible, each provision of
this Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision or any other jurisdiction, but this Agreement
shall be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained
herein.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>13.<FONT face=serif></FONT> <U>Complete Agreement</U>. This Agreement embodies the
complete agreement and understanding between the parties with respect to the
subject matter hereof and effective as of its date supersedes and preempts any
prior understandings, agreements or representations by or between the parties,
written or oral, which may have related to the subject matter hereof in any
way.</FONT></P>
<P align=center><FONT face=serif size=2>10</FONT></P>
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<PAGE>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>14.<FONT face=serif></FONT> <U>Counterparts</U>. This Agreement may be executed in
separate counterparts, each of which shall be deemed to be an original and both
of which taken together shall constitute one and the same agreement.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>15.<FONT face=serif></FONT> <U>Successors and Assigns</U>. This Agreement shall bind and
inure to the benefit of and be enforceable by Executive, the Company and their
respective heirs, executors, personal representatives, successors and assigns,
except that neither party may assign any rights or delegate any obligations
hereunder without the prior written consent of the other party. Executive hereby
consents to the assignment by the Company of all of its rights and obligations
hereunder to any successor to the Company by merger or consolidation or purchase
of all or substantially all of the Company&#146;s assets, provided such transferee or
successor assumes the liabilities of the Company hereunder.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>16.<FONT face=serif></FONT> <U>Choice of Law</U>. This Agreement shall be governed by the
internal law, and not the laws of conflicts, of the State of North
Carolina.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>17.<FONT face=serif></FONT> <U>Amendment and Waiver</U>. The provisions of this Agreement
may be amended or waived only with the prior written consent of the Company and
Executive, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>18.<FONT face=serif></FONT> <U>Mediation</U>. If a dispute arises out of or relates to
this Agreement, or the breach thereof, and if the dispute cannot be settled
through negotiation, the parties agree to submit such controversy to mediation
for resolution. The parties may use the procedures set forth in the North
Carolina General Statutes&#146; Rules Implementing Court Ordered Mediated Settlement
Conferences, where and if applicable. Provided, however, if any controversy
between the parties is not resolved by mediation within sixty (60) days after
the date the controversy has arisen (hereinafter &#147;controversy date&#148;), the
parties shall settle such controversy by arbitration in accordance with the
terms of the Uniform Arbitration Act, currently codified in North Carolina
General Statute, Article 45A, &#167;1-567.1, <U><FONT face=serif>et seq</FONT></U>.,
or any successor statutes thereto, and as provided in Section 19
below.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>19.<FONT face=serif></FONT> <U>Arbitration</U>. Any dispute or controversy arising under
this Agreement which is not resolved by mediation pursuant to Section 18 shall
be determined and settled by an independent disinterested person agreed upon by
the parties to the dispute. If the parties are unable to mutually agree upon an
independent arbitrator within thirty (30) days, then each party shall appoint an
independent arbitrator within thirty (30) days, and the said two (2) independent
arbitrators shall appoint a third independent arbitrator within thirty (30)
days, and the three (3) independent arbitrators will resolve the dispute in
controversy by majority vote in accordance with the terms of the Uniform
Arbitration Act currently codified in North Carolina General Statute, Article
45A, &#167;1-567.1, <U><FONT face=serif>et seq</FONT></U>. or any successor statutes. The expenses of arbitration shall be
shared equally by each party hereto, except that each party will pay the costs
of his own legal counsel and all other incidental expenses. The parties hereto
agree to be bound by the results of the arbitration. The place of arbitration
shall be Orange County, North Carolina.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>20. <U>Compliance with Section 409A of the Code</U>. This
Agreement is intended to comply with Section 409A of the Code. Notwithstanding
any provision of this Agreement to the contrary,
this Agreement shall be interpreted, operated and administered in a manner
consistent with this intent.</FONT></P>
<P align=center><FONT face=serif size=2>11</FONT></P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2><FONT face=serif>IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
written below.</FONT></FONT></P>
<DIV align=right>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>

  <TR vAlign=bottom>
    <TD align=left width="100%" colSpan=4><FONT face=serif><FONT size=2>INVESTORS
      TITLE INSURANCE COMPANY&nbsp;</FONT></FONT></TD></TR>
  <TR>
    <TD align=left width="100%"  colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="100%"  colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face=serif><FONT size=2>By:&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="99%"  colSpan=3><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="100%"  colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face=serif><FONT size=2>Its:&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="99%"  colSpan=3><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="100%"  colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face=serif><FONT size=2>Date:&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="50%" ><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="25%" ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="24%" ><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="100%"  colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="100%"  colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="100%" colSpan=4><FONT face=serif><FONT size=2>J. ALLEN
      FINE&nbsp;</FONT></FONT></TD></TR>
  <TR>
    <TD align=left width="100%"  colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="100%"  colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="100%"  colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face=serif><FONT size=2>Date:&nbsp;</FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="50%" ><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="25%" ><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="24%" ><FONT size=2>&nbsp;</FONT></TD></TR></TABLE></DIV><BR>
<P align=center><FONT face=serif size=2>12</FONT></P>
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<DOCUMENT>
<TYPE>EX-10.VIII
<SEQUENCE>4
<FILENAME>exhibit10-viii.htm
<DESCRIPTION>AMENDED AND RESTATED EMPLOYMENT AGREEMENT EFFECTIVE JANUARY 1, 2009
<TEXT>

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<P align=center><B><FONT face=serif size=2>AMENDED AND RESTATED EMPLOYMENT
AGREEMENT </FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (&#147;</FONT><U><FONT face=serif size=2>Agreement</FONT></U><FONT face=serif size=2>&#148;) effective as of January 1,
2009 (the &#147;</FONT><U><FONT face=serif size=2>Effective Date</FONT></U><FONT face=serif size=2>&#148;), is between Investors Title Insurance Company, a North
Carolina corporation (the &#147;</FONT><U><FONT face=serif size=2>Company</FONT></U><FONT face=serif size=2>&#148;), and James A. Fine,
Jr.&nbsp;(&#147;</FONT><U><FONT face=serif size=2>Executive</FONT></U><FONT face=serif size=2>&#148;).</FONT></P>
<P align=center><B><FONT face=serif size=2>RECITALS: </FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
Executive is presently the Executive Vice President and Chief Financial Officer
of the Company and has made and is expected to continue to make major
contributions to the profitability, growth and financial strength of the
Company;</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WHEREAS, the Company desired to
secure the services of the Executive for the future;</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the parties hereto previously entered into that certain Employment Agreement
effective as of November 17, 2003, as amended June 1, 2004 (the &#147;Existing
Employment Agreement&#148;); </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
pursuant to Section 16 of the Existing Employment Agreement, the Existing
Employment Agreement may be amended by the parties hereto; and </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the parties hereto deem it appropriate to amend and restate the Existing
Employment Agreement; </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>NOW,
THEREFORE, in consideration of the mutual covenants contained herein the parties
hereto agree as follows:</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Employment</FONT></U><FONT face=serif size=2>. The Company shall employ
Executive, and Executive accepts continued employment with the Company, upon the
terms and conditions set forth in this Agreement. The term of this Agreement
shall be for a period of five (5) years beginning on the date hereof, and shall
on the first day of each calendar month, unless either party gives written
notice to the other party at least thirty (30) days prior to such date of intent
not to extend this Agreement, be extended one (1) additional month so that at
all times the term of this Agreement shall be for a period of five (5) years
unless earlier terminated as provided in paragraph 4 hereof (the &#147;Employment
Period&#148;). </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>2.</FONT><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>Position and Duties</FONT></U><FONT face=serif size=2>.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>During
the Employment Period, Executive shall serve as the Executive Vice President and
Chief Financial Officer of the Company or in such other similar position as the
Executive and the Chief Executive Officer shall agree upon and, subject to the
management of the business and affairs of the Company at the direction of the
Chief Executive Officer of the Company, shall have the normal duties,
responsibilities and authority of an executive serving in such
position.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(b)</FONT><FONT face=serif size=2>
</FONT><FONT face=serif size=2>Executive shall report to the Chief Executive
Officer.</FONT></P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>During
the Employment Period, Executive shall devote his best efforts and his full
business time and attention (except for participation in charitable and civic
endeavors and management of Executive&#146;s personal
investments and business interests, provided such activities do not have more
than a <U>de minimis</U>
effect on Executive&#146;s performance of his duties under this Agreement) to the
business and affairs of the Company, its parent, subsidiaries and affiliates.
Executive shall perform his duties and responsibilities to the best of his
abilities in a diligent, trustworthy, businesslike and efficient
manner.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive shall perform his duties and responsibilities principally in
the Chapel Hill, North Carolina area and shall not be required to travel outside
that area any more extensively than Executive has done in the recent past in the
ordinary course of the business of the Company.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>3.</FONT><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>Compensation and Benefits</FONT></U><FONT face=serif size=2>.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Salary</FONT></U><FONT face=serif size=2>. The Company agrees to pay
Executive a salary during the Employment Period in installments based on the
Company&#146;s practices as may be in effect from time to time. Executive&#146;s initial
salary shall be at the rate of Two Hundred Fifty Five Thousand Five Hundred
Sixty and No/100 Dollars ($255,560) per year, as may be increased from time to
time (the &#147;<U>Base
Salary</U>&#148;),
provided, however, that if there is a Change in Control (as hereafter defined),
the Executive&#146;s Base Salary as then in effect shall double effective at the time
the Change in Control becomes effective. Executive&#146;s Base Salary shall be
reviewed by the Compensation Committee of the Board (the &#147;</FONT><U><FONT face=serif size=2>Compensation Committee</FONT></U><FONT face=serif size=2>&#148;)
and shall be increased, but not decreased, from time to time at least in an
amount as shall be substantially consistent with increases in base salary
generally awarded in the ordinary course of business to other peer executives of
the Company and its affiliated companies. As used in this Agreement, the term
&#147;affiliated companies&#148; shall include any company controlled by, controlling or
under common control with the Company.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Bonuses</FONT></U><FONT face=serif size=2>. Executive will be entitled to
such cash bonuses as the Board may determine, in its sole discretion, from time
to time (&#147;</FONT><U><FONT face=serif size=2>Bonus Compensation</FONT></U><FONT face=serif size=2>&#148;). Any Bonus Compensation payable hereunder shall be paid no
later than March 15 of the calendar year following the calendar year in which
such cash bonus shall cease to be subject to a substantial risk of forfeiture
under Section 409A of the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;). </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Expense Reimbursement</FONT></U><FONT face=serif size=2>. The Company
shall reimburse Executive for all reasonable expenses incurred by Executive
during the Employment Period in the course of performing his duties under this
Agreement that are consistent with the Company&#146;s policies in effect from time to
time with respect to travel, entertainment and other business expenses, subject
to the Company&#146;s requirements applicable generally with respect to reporting and
documentation of such expenses.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Supplemental Retirement Cash Payment</FONT></U><FONT face=serif size=2>.
During the portion of the Employment Period following December 31, 2008, on an
annual basis (and in no event later than March 15 of each calendar year), the
Company shall make a cash payment equal to the amount that the Company would
have contributed to such Executive&#146;s account under the Section 401(k) Plan as
Non-Elective Company Contributions during such calendar year if Non-Elective
Company Contributions to the Section 401(k) Plan for such calendar year had not
been limited by Code Sections 401(a)(17), 401(k)(3), 401(m), 402(g), and 415(c)
less the Non-Elective Company </FONT><FONT face=serif size=2>Contributions
actually contributed to such Executive&#146;s account under the Section 401(k) Plan
during such calendar year. Such amounts shall constitute Compensation within the
meaning of the Investors Title Insurance Company Nonqualified Deferred
Compensation Plan.</FONT></P>
<P align=center><FONT face=serif size=2>2 </FONT></P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(e)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Compensation for Serving on Board</FONT></U><FONT face=serif size=2>.
Executive shall be entitled to no extra compensation for serving on the
Company&#146;s or its affiliated companies&#146; Boards of Directors.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(f)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Vacation and Sick Leave</FONT></U><FONT face=serif size=2>. Executive
shall be entitled annually to thirty (30) days of paid vacation and to unlimited
sick leave, provided the Employment Period is subject to termination for
disability as provided under paragraph 4(b). The vacation leave shall be
cumulative; provided, however, that Executive shall not be compensated for any
unused vacation leave.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(g)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Other Benefits</FONT></U><FONT face=serif size=2>. Executive shall be
entitled during the Employment Period to participate, on the same basis as other
executives of the Company, in such other benefits for which substantially all of
the executives of the Company are from time to time generally eligible, as
determined from time to time by the Board.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>4.</FONT><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>Employment Period</FONT></U><FONT face=serif size=2>. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>The
Employment Period shall continue until terminated as provided in subsection (b)
below. Notwithstanding anything herein to the contrary, whether a termination of
employment has occurred for purposes of any deferred compensation payable
hereunder and subject to Code Section 409A shall be determined in a manner
consistent with Section 409A of the Internal Revenue Code of 1986, as amended
(the &#147;Code&#148;) and the Company&#146;s 409A Policy, if any. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>The
Employment</FONT><FONT face=serif size=2> Period shall end upon the first to
occur of any of the following events: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(i)</FONT><FONT face=serif size=2>
</FONT><FONT face=serif size=2>Executive&#146;s death;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(ii)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>the Company&#146;s termination of Executive&#146;s employment on account of
Executive&#146;s having become unable (as determined by the Board in good faith) to
perform regularly Executive&#146;s duties hereunder by reason of illness or
incapacity for a period of more than one hundred eighty (180) consecutive days,
plus accrued vacation days </FONT><FONT face=serif size=2>(&#147;</FONT><U><FONT face=serif size=2>Termination for Disability</FONT></U><FONT face=serif size=2>&#148;);</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iii)</FONT><FONT face=serif size=2>
</FONT><FONT face=serif size=2>the Company&#146;s termination of Executive&#146;s
employment for Cause </FONT><FONT face=serif size=2>(&#147;</FONT><U><FONT face=serif size=2>Termination for Cause</FONT></U><FONT face=serif size=2>&#148;);</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(iv)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>the Company&#146;s termination of Executive&#146;s employment other than pursuant
to subsections (b)(ii) or (iii) above (</FONT><FONT face=serif size=2>&#147;<U>Termination without Cause</U></FONT><FONT face=serif size=2>&#148;) by
means of advance written notice of at least sixty (60) days;&nbsp;</FONT></P>
<P align=center><FONT face=serif size=2>3</FONT></P>
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<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(v)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive&#146;s termination of his employment for Good Reason by means of
advance written notice to the Company at least thirty (30) days prior to the
effective date of such termination (&#147;</FONT><U><FONT face=serif size=2>Termination by Executive for Good Reason</FONT></U><FONT face=serif size=2>&#148;);</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(vi)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive&#146;s retirement at any time following his
50<SUP>th</SUP></FONT><FONT face=serif size=2> birthday, upon written notice to
the Company of at least six (6) months (&#147;</FONT><U><FONT face=serif size=2>Retirement</FONT></U><FONT face=serif size=2>&#148;);</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(vii)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive&#146;s termination of his employment within thirty (30) days
following a Change in Control by written notice to the Company. </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(c)</FONT><FONT face=serif size=2>
</FONT><FONT face=serif size=2>For purposes of this Agreement, &#147;</FONT><U><FONT face=serif size=2>Cause</FONT></U><FONT face=serif size=2>&#148; shall
mean:</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(i)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>the Executive&#146;s conviction of, or plea of guilty or </FONT><U><FONT face=serif size=2>nolo contendere</FONT></U><FONT face=serif size=2> to, any
</FONT><FONT face=serif size=2>crime involving dishonesty or moral
turpitude;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(ii)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>the commission by Executive of a fraud against the Company or any of its
parent, subsidiaries or affiliates for which he is convicted;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(iii)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>gross negligence or willful misconduct by Executive with respect to the
Company or any of its parent, subsidiaries or affiliates which causes material
detriment to the Company or any of its parent, subsidiaries or
affiliates;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(iv)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>the falsification or manipulation of any records of the Company or any of
its parent, subsidiaries or affiliates;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(v)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>repudiation of this Agreement by Executive or Executive&#146;s abandonment of
employment with the Company or any of its parent, subsidiaries or
affiliates;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(vi)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>breach by Executive of any of the &#145;agreements in paragraphs 6 and 7
hereof prior to the end of the Employment Period;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(vii)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>failure or refusal of Executive to perform his duties with the Company or
any of its parent, subsidiaries or affiliates or to implement or follow the
policies or directions of the Board within thirty (30) days after a written
demand for performance is delivered to Executive by the Board that specifically
identifies the manner in which the Board believes that Executive has not
performed his duties or failed to implement or follow the policies or directions
of the Board.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(d)</FONT><FONT face=serif size=2>
</FONT><FONT face=serif size=2>For purposes of this Agreement,</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(i)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>&#147;Good Reason&#148; shall mean any breach by the Company of this Agreement that
is material and that is not cured within thirty (30) days after written notice
thereof to the Company from Executive;</FONT></P>
<P align=center><FONT face=serif size=2>4 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(ii)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>&#147;Change in Control&#148; shall be deemed to have occurred upon the occurrence
of any of the following events:</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(A)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Any &#147;person&#148; (as such term is used in Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)), other than
Executive or his affiliates or immediate family members, is or becomes the
&#147;beneficial owner&#148; (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company, or its parent, Investors Title
Company, </FONT><FONT face=serif size=2>representing 50% or more of the combined
voting power of the Company&#146;s or Investors Title Company&#146;s outstanding
securities then entitled ordinarily (and apart from rights accruing under
special circumstances) to vote for the election of directors;
or&nbsp;</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(B)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Individuals who are &#147;Continuing Directors&#148; (as hereinafter defined) of
Investors Title Company cease for any reason to constitute at least a majority
of its Board of Directors; or</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(C)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>A sale of more than 50% of the assets (measured in terms of monetary
value) of the Company or Investors Title Company is consummated; or</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(D)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Any merger, consolidation, or like business combination or reorganization
of the Company or Investors Title Company is consummated that results in the
occurrence of any event described in subparagraph (A), (B) or (C)
above.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iii)</FONT><FONT face=serif size=2>
</FONT><FONT face=serif size=2>&#147;Continuing Directors&#148; shall mean:</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(A)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>the directors of Investors Title Company in office on the date of this
</FONT><FONT face=serif size=2>Agreement; or</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(B)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>any successor to any such director (and any additional director) who
after the date of this Agreement (i) was nominated or selected by a majority of
the Continuing Directors in the office at the time of his or her nomination or
selection and (ii) who is not an &#147;affiliate&#148; or &#147;associate&#148; (as defined in
Regulation 12B under the Exchange Act) of any person who is the beneficial
owner, directly or indirectly, of securities representing 50% or more of the
combined voting power of the Company&#146;s outstanding securities then entitled
ordinarily to vote for the election of directors.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>5.</FONT><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>Post-Employment Period
Payments</FONT></U><FONT face=serif size=2>.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>If the
Employment Period ends pursuant to paragraph 4 hereof for any reason, Executive
shall cease to have any rights to salary, options, expense reimbursements or
other benefits other than: (i) any salary which has accrued but is unpaid, a
prorated Bonus Compensation for the year of termination, not less than the
Executive&#146;s pro rata share of his average bonus paid over the prior three years,
and any reimbursable expenses which have been incurred but are unpaid as of the
end of the Employment Period (all of which shall be paid within thirty (30) days
of termination), (ii) any option rights or plan benefits which by their terms
extend beyond termination of Executive&#146;s employment (but only to the extent
provided in any option theretofore granted to Executive or any other benefit
plan in which Executive has participated as an employee of the Company), (iii)
any benefits to which Executive is entitled under Part 6 of Subtitle B of Title
I of the Employee Retirement Income Security Act of 1974, as amended (&#147;COBRA&#148;),
(iv) any accumulations and benefits to which employee is entitled under the
Nonqualified Supplemental Retirement Benefit Plan and a Nonqualified Deferred
Compensation Plan, and (v) any other amount(s) payable pursuant to the
succeeding provisions of this paragraph 5.</FONT></P>
<P align=center><FONT face=serif size=2>5 </FONT></P>
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<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>If
the Employment Period ends pursuant to paragraph 4 hereof on account of
Executive&#146;s death, Termination for Disability or Retirement, the Executive or,
in the event of death, his beneficiary (as identified to the Company in writing)
shall be entitled to receive the following: (i) except in the case of the
Executive&#146;s death, a lump sum payment of three times the Executive&#146;s then
current base salary, but in no event less than $766,680 (ii) except in the case
of the Executive&#146;s death, a lump sum payment of three times the average of the
Bonus Compensation paid to the Executive during the three (3) years prior to
Executive&#146;s death, Disability or Retirement, but in no event less than
$1,030,000 (iii) continued participation by Executive and his spouse in the
Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until Executive dies or, if later, until his surviving spouse dies, (iv) any
accumulations and benefits to which Employee is entitled under the Nonqualified
Supplemental Retirement Benefit Plan and a Nonqualified Deferred Compensation
Plan, (v) continued participation by each of Executive&#146;s dependent children in
the Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until each child is no longer a dependent, as defined by the applicable plan,
(vi) at the Executive&#146;s option, the Company shall transfer to the Executive the
ownership of any and all life insurance policies insuring the Executive&#146;s life
that the Company has purchased and the Executive shall thereafter be liable for
all payments due on such policies, and (vii) immediate vesting of Executive&#146;s
existing stock options.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>If
the Employment Period ends pursuant to paragraph 4 hereof on account of
Termination for Cause, the Company shall pay Executive (i) an amount equal to
that amount Executive would have received as salary (based on Executive&#146;s Base
Salary then in effect) had the Employment Period remained in effect until the
later of the effective date of the Company&#146;s termination of Executive&#146;s
employment or the date thirty (30) days after the Company&#146;s notice to Executive
of such termination, and (ii) any accumulations and benefits to which Employee
is entitled under the Nonqualified Supplemental Retirement Benefit Plan and a
Nonqualified Deferred Compensation Plan. The Company shall make no further
payments to Executive, except as provided in Section 5(a) hereof.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>If
the Employment Period ends pursuant to paragraph 4 hereof on account of a
Termination without Cause or a Termination by Executive for Good Reason, the
Executive shall be entitled to receive the following: (i) a lump sum payment
equal to five times that of the Executive&#146;s then current Base Salary, but in no
event less than $1,277,800, (ii) a lump sum payment equal to five times the
average of the Bonus Compensation paid to the Executive during the three (3)
years prior to the termination date, but in not event less than $1,716,665,
(iii) any accumulations and benefits to which Employee is entitled under the
Nonqualified Supplemental Retirement Benefit Plan and a Nonqualified Deferred
Compensation Plan, (iv) continued participation by Executive and his spouse in
the Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until Executive dies or, if later, until his surviving spouse dies, (v)
continued participation by each of Executive&#146;s dependent children in the
Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until each child is no longer a dependent, as defined by the applicable plan,
(vi) immediate vesting of Executive&#146;s existing stock options, and (vii) at the
Executive&#146;s option, the Company shall transfer to the Executive the ownership of
any and all life insurance policies insuring the Executive&#146;s life that the
Company has purchased and the Executive shall thereafter be liable for all
payments due on such policies.</FONT></P>
<P align=center><FONT face=serif size=2>6 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(e)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>If the
Executive terminates his employment because of a Change in Control, the
Executive shall be entitled to receive the following: (i) a lump sum payment
equal to 2.99 times the sum of the Executive&#146;s then current Base Salary, but in
no event less than $764,124 (ii) a lump sum payment equal to 2.99 times the
amount equal to the average of the Bonus Compensation paid to the Executive
during the three (3) years prior to the termination date, but in no event less
than $1,026,565, (iii) continued participation by Executive and his spouse in
the Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until Executive dies or, if later, until his surviving spouse dies, (iv)
continued participation by each of Executive&#146;s dependent children in the
Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until each child is no longer a dependent, as defined by the applicable plan,
(v) immediate vesting of Executive&#146;s existing stock options, (vi) any
accumulations and benefits to which Employee is entitled under the Nonqualified
Supplemental Retirement Benefit Plan and a Nonqualified Deferred Compensation
Plan, and (vii) at the Executive&#146;s option, the Company shall transfer to the
Executive the ownership of any and all life insurance policies insuring the
Executive&#146;s life that the Company has purchased and the Executive shall
thereafter be liable for all payments due on such policies. Upon entitlement,
all sums due hereunder will be payable in cash or by official bank check within
thirty (30) days following termination of the Executive&#146;s employment.
Notwithstanding anything to the contrary contained herein, in the event that any
portion of the payments or benefits received or to be received by the Executive,
together with any other payments received by him, whether paid or payable
pursuant to the terms of this Agreement or any other plan, arrangement or
agreement with the Company or any other person or entity, would cause, either
directly or indirectly, an &#147;excess parachute payment&#148; to exist within the
meaning of said Section 280G of the Internal Revenue Code, the payments
hereunder shall be reduced until no portion of the payments would fail to be
deductible by reason of being an &#147;excess parachute payment&#148;. In the event that
any dispute arises as to whether an &#147;excess parachute payment&#148; exists, the
appropriate calculations shall be made by the Company&#146;s regularly employed
independent public auditors and delivered to the Executive in writing within
thirty (30) days following the date for payment of such severance payment, and
the Company will warrant to the Executive the accuracy of the calculations and
the information on which they are based.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(f)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive shall not be required to mitigate the amount of any payment or
benefit provided for in this Agreement by seeking other employment or
otherwise.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(g)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Notwithstanding anything herein to the contrary, with respect to any
right to a payment that constitutes a &#147;nonqualified deferred compensation plan&#148;
subject to Section 409A of the Code, any payment to be made upon the Executive&#146;s
termination of employment shall be delayed until the first day of the seventh
month following the Participant&#146;s termination of employment if the Participant
is a &#147;specified employee&#148; within the meaning of Section 409A of the Code and the
Company&#146;s 409A Policy, if any.</FONT></P>
<P align=center><FONT face=serif size=2>7 </FONT></P>
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<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(h)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Notwithstanding anything herein to the contrary, with respect to any
right to a payment that (i) is to be made under this Section 5 based on the
continued participation by Executive, his spouse and each of Executive&#146;s
dependent children in the Company&#146;s medical, dental and vision health plan, at
the Company&#146;s expense, and (ii) constitutes a &#147;nonqualified deferred
compensation plan&#148; subject to Section 409A of the Code, any such payment shall
be made in accordance with Treasury Regulation &#167;1.409A-3(i)(1)(iv). Expenses
eligible for </FONT><FONT face=serif size=2>reimbursements and in-kind benefits
shall be determined based on the coverage provided by the relevant plan
maintained by the Company for eligible employees, and any payments shall be made
only for the period or periods specified in this Section 5. Any amount of
expenses eligible for reimbursement or in-kind benefit provided during a taxable
year shall not affect the expenses eligible for reimbursement or in-kind
benefits to be provided in any other taxable year. The reimbursement of any
eligible expense shall be made on or before the last day of Executive&#146;s taxable
year following the taxable year in which the expense was incurred. The right to
reimbursement or in-kind benefits shall not be subject to liquidation or
exchange for another benefit.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>6.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Confidential Information</FONT></U><FONT face=serif size=2>. Executive
acknowledges that the information, observations and data obtained by Executive
while employed by the Company pursuant to this Agreement, as well as those
obtained by Executive while employed by the Company or any of its subsidiaries
or affiliates or any predecessor thereof prior to the date of this Agreement,
concerning the business or affairs of the Company or any of its subsidiaries or
affiliates or any predecessor thereof (unless and except to the extent the
foregoing become generally known to and available for use by the public other
than as a result of Executive&#146;s acts or omissions to act, &#147;</FONT><U><FONT face=serif size=2>Confidential Information</FONT></U><FONT face=serif size=2>&#148;)
are the property of the Company or such parent, subsidiary or affiliate.
Therefore, Executive agrees that during the Employment Period and thereafter
Executive shall not disclose any Confidential Information without the prior
written consent of the Board unless and except to the extent that such
disclosure is (i) made in the ordinary course of Executive&#146;s performance of
Executive&#146;s duties under this Agreement or (ii) required by any subpoena or
other legal process (in which event Executive will give the Company prompt
notice of such subpoena or other legal process in order to permit the Company to
seek appropriate protective orders), and that Executive shall not use any
Confidential Information for Executive&#146;s own account without the prior written
consent of the Board. Executive shall deliver to the Company at the termination
of the Employment Period, or at any other time the Company may reasonably
request, all memoranda, notes, plans, records, reports, computer tapes and
software and other documents and data (and copies thereof) relating to the
Confidential Information, or to the work product or the business of the Company
or any of its parent, subsidiaries or affiliates that Executive may then possess
or have under his control.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>7.</FONT><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>Noncompetition;
Nonsolicitation</FONT></U><FONT face=serif size=2>.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive acknowledges that in the course of his employment with the
Company pursuant to this Agreement, Executive will become familiar, and during
the course of Executive&#146;s employment by the Company or any of its parent,
subsidiaries or affiliates or any predecessor thereof prior to the date of this
Agreement, Executive has become familiar with trade secrets and customer lists
of and other confidential information concerning the Company and its parent,
subsidiaries and affiliates and predecessors thereof and that Executive&#146;s
services have been and will be of special, unique and extraordinary value to the
Company.</FONT></P>
<P align=center><FONT face=serif size=2>8 </FONT></P>
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<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive agrees that during the Employment Period and, as a condition to
the receipt of payments as provided under paragraph 4, for a period of two (2)
years after termination of Executive&#146;s employment with the Company, in the State
of North Carolina Executive shall not in any manner, directly or indirectly,
through any person, firm or corporation, alone or as a member of a partnership
or as an officer, director, shareholder, investor or </FONT><FONT face=serif size=2>employee of or in any other corporation or enterprise or otherwise,
engage or be engaged in, or assist any other person, firm, corporation or
enterprise in engaging or being engaged in, any business then actively being
conducted by the Company or any of its parent, subsidiaries or
affiliates.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive further agrees that, during the Employment Period and, as a
condition to the receipt of payments as provided under paragraph
4,</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>for a
period of two (2) years after termination of Executive&#146;s employment with the
Company, Executive shall not in any manner, directly or indirectly, induce or
attempt to induce any employee of the Company or of any of its parent,
subsidiaries or affiliates (other than his spouse, if applicable) to quit or
abandon his or her employ.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Nothing
in this paragraph 7 shall prohibit Executive from being: (1) a shareholder in a
mutual fund or a diversified investment company or (ii) a passive owner of not
more than 5% of the outstanding equity securities of any class of a corporation
or other entity which is publicly traded, so long as Executive has no active
participation in the business of such corporation or other entity.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(e)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>In the
event Executive violates any legally enforceable provision of this Agreement as
to which there is a specific time period during which Executive is prohibited
from taking certain actions or from engaging in certain activities, as set forth
in this Agreement, then, in such event, the violation shall toll the running of
such time period from the date of such violation until the violation
ceases.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(f)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive acknowledges that he has carefully considered the nature and
extent of the restrictions on him and the rights and remedies conferred on the
Company under this Agreement. Executive further acknowledges and agrees that the
same are reasonable in time and territory, are designed to eliminate competition
which would otherwise be unfair to the Company, do not stifle Executive&#146;s
inherent skill and experience, would not operate as a bar to Executive&#146;s sole
means of support, are fully required to protect the legitimate interests of the
Company and do not confer a benefit upon the Company disproportionate to
Executive&#146;s detriment.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(g)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>If, at
the time of enforcement of this paragraph, a court holds that the restrictions
stated herein are unreasonable under circumstances then existing, the parties
hereto agree that the maximum period, scope or geographical area reasonable
under such circumstances shall be substituted for the stated period, scope or
area and that the court shall be allowed to revise the restrictions contained
herein to cover the maximum period, scope and area permitted by law.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Enforcement</FONT></U><FONT face=serif size=2>. Because Executive&#146;s
services are unique and because Executive has access to Confidential Information
and work product, the parties hereto agree that the Company would be damaged
irreparably in the event any of the provisions of paragraph 7 hereof were not
performed in accordance with their specific terms or were otherwise breached and
that money damages would be an inadequate remedy for any such non-performance or
breach. Therefore, the Company or its successors or assigns shall be entitled,
in addition to other rights and remedies existing in their favor, to an
injunction or injunctions to prevent any breach or </FONT><FONT face=serif size=2>threatened breach of any of such provisions and to enforce such
provisions specifically (without posting a bond or other security).</FONT></P>
<P align=center><FONT face=serif size=2>9 </FONT></P>
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<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>9.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Consulting and Advice</FONT></U><FONT face=serif size=2>. During the time
period that the Executive receives post-employment payments under paragraph 5,
other than by reason of death or disability, the Executive agrees that when and
as requested, he will consult with the Company concerning policies, procedures
and operations. The requests by the Company for consultation (1) shall comply
with applicable requirements of Section 409A of the Code and the Company&#146;s 409A
Policy, if any, regarding the determination of whether a termination of
employment has occurred; (2) shall be at reasonable times, with appropriate
notice, not more frequent than three (3) times a month; and (3) may, at the
Executive&#146;s election, be through telephone communication. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Survival</FONT></U><FONT face=serif size=2>. Subject to any limits on
applicability contained therein, paragraphs 5, 6, 7 and 9 hereof shall survive
and continue in full force in accordance with their terms notwithstanding any
termination of the Employment Period.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>11.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Notices</FONT></U><FONT face=serif size=2>. Any notice provided for in
this Agreement shall be in writing and shall be either personally delivered,
sent by reputable overnight carrier or mailed by first class mail, return
receipt requested. Any notice to Executive will be delivered to the last home
address on file with the Company and any notice to the Company should be
delivered to:</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif size=2>Investors
Title Insurance Company<BR>Attention: Secretary<BR>P. O. Drawer 2687<BR>Chapel
Hill, NC 27515-2687</FONT></P>
<P align=justify><FONT face=serif size=2>or such other address or to the
attention of such other person as the recipient party shall have specified by
prior written notice to the sending party. Any notice under this Agreement will
be deemed to have been given when so delivered, sent or mailed.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>12.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Severability</FONT></U><FONT face=serif size=2>. Whenever possible, each
provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Agreement
is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or any other jurisdiction,
but this Agreement shall be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision had never
been contained herein.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>13.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Complete Agreement</FONT></U><FONT face=serif size=2>. This Agreement
embodies the complete agreement and understanding between the parties with
respect to the subject matter hereof and effective as of its date supersedes and
preempts any prior understandings, agreements or representations by or between
the parties, written or oral, which may have related to the subject matter
hereof in any way.</FONT></P>
<P align=center><FONT face=serif size=2>10 </FONT></P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>14.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Counterparts</FONT></U><FONT face=serif size=2>. This Agreement may be
executed in separate counterparts, each of which shall be deemed to be an
original and both of which taken together shall constitute one and the same
agreement.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>15.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Successors and Assigns</FONT></U><FONT face=serif size=2>. This Agreement
shall bind and inure to the benefit of and be enforceable by Executive, the
Company and their respective heirs, executors, personal representatives,
successors and assigns, except that neither party may assign any rights or
delegate any obligations hereunder without the prior written consent of the
other party. Executive hereby consents to the assignment by the Company of all
of its rights and obligations hereunder to any successor to the Company by
merger or consolidation or purchase of all or substantially all of the Company&#146;s
assets, provided such transferee or successor assumes the liabilities of the
Company hereunder.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>16.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Choice of Law</FONT></U><FONT face=serif size=2>. This Agreement shall be
governed by the internal law, and not the laws of conflicts, of the State of
North Carolina.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>17.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Amendment and Waiver</FONT></U><FONT face=serif size=2>. The provisions
of this Agreement may be amended or waived only with the prior written consent
of the Company and Executive, and no course of conduct or failure or delay in
enforcing the provisions of this Agreement shall affect the validity, binding
effect or enforceability of this Agreement.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>18.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Mediation</FONT></U><FONT face=serif size=2>. If a dispute arises out of
or relates to this Agreement, or the breach thereof, and if the dispute cannot
be settled through negotiation, the parties agree to submit such controversy to
mediation for resolution. The parties may use the procedures set forth in the
North Carolina General Statutes&#146; Rules Implementing Court Ordered Mediated
Settlement Conferences, where and if applicable. Provided, however, if any
controversy between the parties is not resolved by mediation within sixty (60)
days after the date the controversy has arisen (hereinafter &#147;controversy date&#148;),
the parties shall settle such controversy by arbitration in accordance with the
terms of the Uniform Arbitration Act, currently codified in North Carolina
General Statute, Article 45A, &#167;1-567.1, </FONT><U><FONT face=serif size=2>et
seq</FONT></U><FONT face=serif size=2>., or any successor statutes thereto, and
as provided in Section 19 below.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>19.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Arbitration</FONT></U><FONT face=serif size=2>. Any dispute or
controversy arising under this Agreement which is not resolved by mediation
pursuant to Section 18 shall be determined and settled by an independent
disinterested person agreed upon by the parties to the dispute. If the parties
are unable to mutually agree upon an independent arbitrator within thirty (30)
days, then each party shall appoint an independent arbitrator within thirty (30)
days, and the said two (2) independent arbitrators shall appoint a third
independent arbitrator within thirty (30) days, and the three (3) independent
arbitrators will resolve the dispute in controversy by majority vote in
accordance with the terms of the Uniform Arbitration Act currently codified in
North Carolina General Statute, Article 45A, &#167;1-567.1, </FONT><U><FONT face=serif size=2>et</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>seq</FONT></U><FONT face=serif size=2>. or any successor statutes. The
expenses of arbitration shall be shared equally by each party hereto, except
that each party will pay the costs of his own legal counsel and all other
incidental expenses. The parties hereto agree to be bound by the results of the
arbitration. The place of arbitration shall be Orange County, North
Carolina.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>20.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Compliance with Section 409A of the Code</FONT></U><FONT face=serif size=2>. This Agreement is intended to comply with Section 409A of the Code.
Notwithstanding any provision of this Agreement to the </FONT><FONT face=serif size=2>contrary, this Agreement shall be interpreted, operated and administered
in a manner consistent with this intent. </FONT></P>
<P align=center><FONT face=serif size=2>11</FONT></P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
written below.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="50%" colSpan=3><FONT face=serif size=2>INVESTORS TITLE INSURANCE COMPANY</FONT>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="50%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="50%" colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>By:</FONT>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="34%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="15%">&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="50%" colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>Its:</FONT>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="34%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="15%">&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="50%" colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>Date:</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="34%">&nbsp;</TD>
    <TD noWrap align=left width="15%">&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="50%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=left width="50%"></TD>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="50%" colSpan=3><FONT face=serif size=2>JAMES
      A. FINE, JR.</FONT>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="50%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=left width="50%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="50%" colSpan=3>&nbsp;</TD></TR>
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    <TD noWrap align=left width="50%" colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>Date:</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="34%">&nbsp;</TD>
    <TD noWrap align=left width="15%">&nbsp;</TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>12 </FONT></P>
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<DOCUMENT>
<TYPE>EX-10.IX
<SEQUENCE>5
<FILENAME>exhibit10-ix.htm
<DESCRIPTION>AMENDED AND RESTATED EMPLOYMENT AGREEMENT EFFECTIVE JANUARY 1, 2009
<TEXT>

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<P align=center><B><FONT face=serif size=2>AMENDED AND RESTATED EMPLOYMENT
AGREEMENT </FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (&#147;</FONT><U><FONT face=serif size=2>Agreement</FONT></U><FONT face=serif size=2>&#148;) effective as of January 1,
2009 (the &#147;</FONT><U><FONT face=serif size=2>Effective Date</FONT></U><FONT face=serif size=2>&#148;), is between Investors Title Insurance Company, a North
Carolina corporation (the &#147;</FONT><U><FONT face=serif size=2>Company</FONT></U><FONT face=serif size=2>&#148;), and W. Morris Fine
(&#147;</FONT><U><FONT face=serif size=2>Executive</FONT></U><FONT face=serif size=2>&#148;).</FONT></P>
<P align=center><B><FONT face=serif size=2>RECITALS: </FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
Executive is presently the President and Chief Operating Officer of the Company
and has made and is expected to continue to make major contributions to the
profitability, growth and financial strength of the Company;</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WHEREAS, the Company desired to
secure the services of the Executive for the future;</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the parties hereto previously entered into that certain Employment Agreement
effective as of November 17, 2003, as amended June 1, 2004 (the &#147;Existing
Employment Agreement&#148;); </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
pursuant to Section 16 of the Existing Employment Agreement, the Existing
Employment Agreement may be amended by the parties hereto; and </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the parties hereto deem it appropriate to amend and restate the Existing
Employment Agreement; </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>NOW,
THEREFORE, in consideration of the mutual covenants contained herein the parties
hereto agree as follows:</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Employment</FONT></U><FONT face=serif size=2>. The Company shall employ
Executive, and Executive accepts continued employment with the Company, upon the
terms and conditions set forth in this Agreement. The term of this Agreement
shall be for a period of five (5) years beginning on the date hereof, and shall
on the first day of each calendar month, unless either party gives written
notice to the other party at least thirty (30) days prior to such date of intent
not to extend this Agreement, be extended one (1) additional month so that at
all times the term of this Agreement shall be for a period of five (5) years
unless earlier terminated as provided in paragraph 4 hereof (the &#147;Employment
Period&#148;). </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>2.</FONT><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>Position and Duties</FONT></U><FONT face=serif size=2>.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>During
the Employment Period, Executive shall serve as the President and Chief
Operating Officer of the Company or in such other similar position as the
Executive and the Chief Executive Officer shall agree upon and, subject to the
management of the business and affairs of the Company at the direction of the
Chief Executive Officer of the Company, shall have the normal duties,
responsibilities and authority of an executive serving in such
position.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(b)</FONT><FONT face=serif size=2>
</FONT><FONT face=serif size=2>Executive shall report to the Chief Executive
Officer.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>During
the Employment Period, Executive shall devote his best efforts and his full
business time and attention (except for participation in charitable and civic
endeavors and management of Executive&#146;s personal
investments and business interests, provided such activities do not have more
than a <U>de minimis</U>
effect on Executive&#146;s performance of his duties under this Agreement) to the
business and affairs of the Company, its parent, subsidiaries and affiliates.
Executive shall perform his duties and responsibilities to the best of his
abilities in a diligent, trustworthy, businesslike and efficient
manner.</FONT></P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive shall perform his duties and responsibilities principally in
the Chapel Hill, North Carolina area and shall not be required to travel outside
that area any more extensively than Executive has done in the recent past in the
ordinary course of the business of the Company.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>3.</FONT><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>Compensation and Benefits</FONT></U><FONT face=serif size=2>.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Salary</FONT></U><FONT face=serif size=2>. The Company agrees to pay
Executive a salary during the Employment Period in installments based on the
Company&#146;s practices as may be in effect from time to time. Executive&#146;s initial
salary shall be at the rate of Two Hundred Fifty Five Thousand Five Hundred
Sixty and No/100 Dollars ($255,560) per year, as may be increased from time to
time (the &#147;</FONT><U><FONT face=serif size=2>Base Salary</FONT></U><FONT face=serif size=2>&#148;), provided, however, that if there is a Change in Control (as hereafter
defined), the Executive&#146;s Base Salary as then in effect shall double effective
at the time the Change in Control becomes effective. Executive&#146;s Base Salary
shall be reviewed by the Compensation Committee of the Board (the
&#147;</FONT><U><FONT face=serif size=2>Compensation Committee</FONT></U><FONT face=serif size=2>&#148;) and shall be increased, but not decreased, from time to
time at least in an amount as shall be substantially consistent with increases
in base salary generally awarded in the ordinary course of business to other
peer executives of the Company and its affiliated companies. As used in this
Agreement, the term &#147;affiliated companies&#148; shall include any company controlled
by, controlling or under common control with the Company.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Bonuses</FONT></U><FONT face=serif size=2>. Executive will be entitled to
such cash bonuses as the Board may determine, in its sole discretion, from time
to time (&#147;</FONT><U><FONT face=serif size=2>Bonus Compensation</FONT></U><FONT face=serif size=2>&#148;). Any Bonus Compensation payable hereunder shall be paid no
later than March 15 of the calendar year following the calendar year in which
such cash bonus shall cease to be subject to a substantial risk of forfeiture
under Section 409A of the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;). </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Expense Reimbursement</FONT></U><FONT face=serif size=2>. The Company
shall reimburse Executive for all reasonable expenses incurred by Executive
during the Employment Period in the course of performing his duties under this
Agreement that are consistent with the Company&#146;s policies in effect from time to
time with respect to travel, entertainment and other business expenses, subject
to the Company&#146;s requirements applicable generally with respect to reporting and
documentation of such expenses.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Supplemental Retirement Cash Payment</FONT></U><FONT face=serif size=2>.
During the portion of the Employment Period following December 31, 2008, on an
annual basis (and in no event later than March 15 of each calendar year), the
Company shall make a cash payment equal to the amount that the Company would
have contributed to such Executive&#146;s account under the Section 401(k) Plan as
Non-Elective Company Contributions during such calendar year if Non-Elective
Company Contributions to the Section 401(k) Plan for such calendar year had not
been limited by Code Sections 401(a)(17), 401(k)(3), 401(m), 402(g), and 415(c)
less the Non-Elective Company </FONT><FONT face=serif size=2>Contributions
actually contributed to such Executive&#146;s account under the Section 401(k) Plan
during such calendar year. Such amounts shall constitute Compensation within the
meaning of the Investors Title Insurance Company Nonqualified Deferred
Compensation Plan.</FONT></P>
<P align=center><FONT face=serif size=2>2 </FONT></P>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(e)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Compensation for Serving on Board</FONT></U><FONT face=serif size=2>.
Executive shall be entitled to no extra compensation for serving on the
Company&#146;s or its affiliated companies&#146; Boards of Directors.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(f)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Vacation and Sick Leave</FONT></U><FONT face=serif size=2>. Executive
shall be entitled annually to thirty (30) days of paid vacation and to unlimited
sick leave, provided the Employment Period is subject to termination for
disability as provided under paragraph 4(b). The vacation leave shall be
cumulative; provided, however, that Executive shall not be compensated for any
unused vacation leave.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(g)</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Other Benefits</FONT></U><FONT face=serif size=2>. Executive shall be
entitled during the Employment Period to participate, on the same basis as other
executives of the Company, in such other benefits for which substantially all of
the executives of the Company are from time to time generally eligible, as
determined from time to time by the Board.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>4.</FONT><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>Employment Period</FONT></U><FONT face=serif size=2>. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>The
Employment Period shall continue until terminated as provided in subsection (b)
below. Notwithstanding anything herein to the contrary, whether a termination of
employment has occurred for purposes of any deferred compensation payable
hereunder and subject to Code Section 409A shall be determined in a manner
consistent with Section 409A of the Internal Revenue Code of 1986, as amended
(the &#147;Code&#148;) and the Company&#146;s 409A Policy, if any. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>The
Employment</FONT><FONT face=serif size=2> Period shall end upon the first to
occur of any of the following events: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(i)</FONT><FONT face=serif size=2>
</FONT><FONT face=serif size=2>Executive&#146;s death;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(ii)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>the Company&#146;s termination of Executive&#146;s employment on account of
Executive&#146;s having become unable (as determined by the Board in good faith) to
perform regularly Executive&#146;s duties hereunder by reason of illness or
incapacity for a period of more than one hundred eighty (180) consecutive days,
plus accrued vacation days </FONT><FONT face=serif size=2>(&#147;</FONT><U><FONT face=serif size=2>Termination for Disability</FONT></U><FONT face=serif size=2>&#148;);</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iii)</FONT><FONT face=serif size=2>
</FONT><FONT face=serif size=2>the Company&#146;s termination of Executive&#146;s
employment for Cause </FONT><FONT face=serif size=2>(&#147;</FONT><U><FONT face=serif size=2>Termination for Cause</FONT></U><FONT face=serif size=2>&#148;);</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(iv) the Company&#146;s termination of Executive&#146;s employment other than pursuant
to subsections (b)(ii) or (iii) above (&#147;<U>Termination without Cause</U>&#148;) by means
of advance written notice of at least sixty (60) days;&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(v)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive&#146;s termination of his employment for Good Reason by means of
advance written notice to the Company at least thirty (30) days prior to the
effective date of such termination (&#147;</FONT><U><FONT face=serif size=2>Termination by Executive for Good Reason</FONT></U><FONT face=serif size=2>&#148;);</FONT></P>
<P align=center><FONT face=serif size=2>3 </FONT></P>
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<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(vi)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive&#146;s retirement at any time following his
50<SUP>th</SUP></FONT><FONT face=serif size=2> birthday, upon written notice to
the Company of at least six (6) months (&#147;</FONT><U><FONT face=serif size=2>Retirement</FONT></U><FONT face=serif size=2>&#148;);</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(vii)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive&#146;s termination of his employment within thirty (30) days
following a Change in Control by written notice to the Company. </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(c)</FONT><FONT face=serif size=2>
</FONT><FONT face=serif size=2>For purposes of this Agreement, &#147;</FONT><U><FONT face=serif size=2>Cause</FONT></U><FONT face=serif size=2>&#148; shall
mean:</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(i)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>the Executive&#146;s conviction of, or plea of guilty or </FONT><U><FONT face=serif size=2>nolo contendere</FONT></U><FONT face=serif size=2> to, any
</FONT><FONT face=serif size=2>crime involving dishonesty or moral
turpitude;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(ii)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>the commission by Executive of a fraud against the Company or any of its
parent, subsidiaries or affiliates for which he is convicted;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(iii)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>gross negligence or willful misconduct by Executive with respect to the
Company or any of its parent, subsidiaries or affiliates which causes material
detriment to the Company or any of its parent, subsidiaries or
affiliates;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(iv)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>the falsification or manipulation of any records of the Company or any of
its parent, subsidiaries or affiliates;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(v)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>repudiation of this Agreement by Executive or Executive&#146;s abandonment of
employment with the Company or any of its parent, subsidiaries or
affiliates;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(vi)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>breach by Executive of any of the &#145;agreements in paragraphs 6 and 7
hereof prior to the end of the Employment Period;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(vii)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>failure or refusal of Executive to perform his duties with the Company or
any of its parent, subsidiaries or affiliates or to implement or follow the
policies or directions of the Board within thirty (30) days after a written
demand for performance is delivered to Executive by the Board that specifically
identifies the manner in which the Board believes that Executive has not
performed his duties or failed to implement or follow the policies or directions
of the Board.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(d)</FONT><FONT face=serif size=2>
</FONT><FONT face=serif size=2>For purposes of this Agreement,</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(i)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>&#147;Good Reason&#148; shall mean any breach by the Company of this Agreement that
is material and that is not cured within thirty (30) days after written notice
thereof to the Company from Executive;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(ii)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>&#147;Change in Control&#148; shall be deemed to have occurred upon the occurrence
of any of the following events:</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(A)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Any &#147;person&#148; (as such term is used in Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)), other than
Executive or his affiliates or immediate family members, is or becomes the
&#147;beneficial owner&#148; (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company, or its parent, Investors Title
Company, </FONT><FONT face=serif size=2>representing 50% or more of the combined
voting power of the Company&#146;s or Investors Title Company&#146;s outstanding
securities then entitled ordinarily (and apart from rights accruing under
special circumstances) to vote for the election of directors; or </FONT></P>
<P align=center><FONT face=serif size=2>4 </FONT></P>
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<PAGE>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(B)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Individuals who are &#147;Continuing Directors&#148; (as hereinafter defined) of
Investors Title Company cease for any reason to constitute at least a majority
of its Board of Directors; or</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(C)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>A sale of more than 50% of the assets (measured in terms of monetary
value) of the Company or Investors Title Company is consummated; or</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(D)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Any merger, consolidation, or like business combination or reorganization
of the Company or Investors Title Company is consummated that results in the
occurrence of any event described in subparagraph (A), (B) or (C)
above.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iii)</FONT><FONT face=serif size=2>
</FONT><FONT face=serif size=2>&#147;Continuing Directors&#148; shall mean:</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(A)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>the directors of Investors Title Company in office on the date of this
</FONT><FONT face=serif size=2>Agreement; or</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(B)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>any successor to any such director (and any additional director) who
after the date of this Agreement (i) was nominated or selected by a majority of
the Continuing Directors in the office at the time of his or her nomination or
selection and (ii) who is not an &#147;affiliate&#148; or &#147;associate&#148; (as defined in
Regulation 12B under the Exchange Act) of any person who is the beneficial
owner, directly or indirectly, of securities representing 50% or more of the
combined voting power of the Company&#146;s outstanding securities then entitled
ordinarily to vote for the election of directors.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>5.</FONT><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>Post-Employment Period
Payments</FONT></U><FONT face=serif size=2>.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>If the
Employment Period ends pursuant to paragraph 4 hereof for any reason, Executive
shall cease to have any rights to salary, options, expense reimbursements or
other benefits other than: (i) any salary which has accrued but is unpaid, a
prorated Bonus Compensation for the year of termination, not less than the
Executive&#146;s pro rata share of his average bonus paid over the prior three years,
and any reimbursable expenses which have been incurred but are unpaid as of the
end of the Employment Period (all of which shall be paid within thirty (30) days
of termination), (ii) any option rights or plan benefits which by their terms
extend beyond termination of Executive&#146;s employment (but only to the extent
provided in any option theretofore granted to Executive or any other benefit
plan in which Executive has participated as an employee of the Company), (iii)
any benefits to which Executive is entitled under Part 6 of Subtitle B of Title
I of the Employee Retirement Income Security Act of 1974, as amended (&#147;COBRA&#148;),
(iv) any accumulations and benefits to which employee is entitled under the
Nonqualified Supplemental Retirement Benefit Plan and a Nonqualified Deferred
Compensation Plan, and (v) any other amount(s) payable pursuant to the
succeeding provisions of this paragraph 5.</FONT></P>
<P align=center><FONT face=serif size=2>5 </FONT></P>
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<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>If
the Employment Period ends pursuant to paragraph 4 hereof on account of
Executive&#146;s death, Termination for Disability or Retirement, the Executive or,
in the event of death, his beneficiary (as identified to the Company in writing)
shall be entitled to receive the following: (i) except in the case of the
Executive&#146;s death, a lump sum payment of three times the Executive&#146;s then
current base salary, but in no event less than $766,680 (ii) except in the case
of the Executive&#146;s death, a lump sum payment of three times the average of the
Bonus Compensation paid to the Executive during the three (3) years prior to
Executive&#146;s death, Disability or Retirement, but in no event less than
$1,015,000 (iii) continued participation by Executive and his spouse in the
Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until Executive dies or, if later, until his surviving spouse dies, (iv) any
accumulations and benefits to which Employee is entitled under the Nonqualified
Supplemental Retirement Benefit Plan and a Nonqualified Deferred Compensation
Plan, (v) continued participation by each of Executive&#146;s dependent children in
the Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until each child is no longer a dependent, as defined by the applicable plan,
(vi) at the Executive&#146;s option, the Company shall transfer to the Executive the
ownership of any and all life insurance policies insuring the Executive&#146;s life
that the Company has purchased and the Executive shall thereafter be liable for
all payments due on such policies, and (vii) immediate vesting of Executive&#146;s
existing stock options.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>If
the Employment Period ends pursuant to paragraph 4 hereof on account of
Termination for Cause, the Company shall pay Executive (i) an amount equal to
that amount Executive would have received as salary (based on Executive&#146;s Base
Salary then in effect) had the Employment Period remained in effect until the
later of the effective date of the Company&#146;s termination of Executive&#146;s
employment or the date thirty (30) days after the Company&#146;s notice to Executive
of such termination, and (ii) any accumulations and benefits to which Employee
is entitled under the Nonqualified Supplemental Retirement Benefit Plan and a
Nonqualified Deferred Compensation Plan. The Company shall make no further
payments to Executive, except as provided in Section 5(a) hereof.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>If
the Employment Period ends pursuant to paragraph 4 hereof on account of a
Termination without Cause or a Termination by Executive for Good Reason, the
Executive shall be entitled to receive the following: (i) a lump sum payment
equal to five times that of the Executive&#146;s then current Base Salary, but in no
event less than $1,277,800, (ii) a lump sum payment equal to five times the
average of the Bonus Compensation paid to the Executive during the three (3)
years prior to the termination date, but in not event less than $1,691,665,
(iii) any accumulations and benefits to which Employee is entitled under the
Nonqualified Supplemental Retirement Benefit Plan and a Nonqualified Deferred
Compensation Plan, (iv) continued participation by Executive and his spouse in
the Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until Executive dies or, if later, until his surviving spouse dies, (v)
continued participation by each of Executive&#146;s dependent children in the
Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until each child is no longer a dependent, as defined by the applicable plan,
(vi) immediate vesting of Executive&#146;s existing stock options, and (vii) at the
Executive&#146;s option, the Company shall transfer to the Executive the ownership of
any and all life insurance policies insuring the Executive&#146;s life that the
Company has purchased and the Executive shall thereafter be liable for all
payments due on such policies.</FONT></P>
<P align=center><FONT face=serif size=2>6 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(e)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>If the
Executive terminates his employment because of a Change in Control, the
Executive shall be entitled to receive the following: (i) a lump sum payment
equal to 2.99 times the sum of the Executive&#146;s then current Base Salary, but in
no event less than $764,124 (ii) a lump sum payment equal to 2.99 times the
amount equal to the average of the Bonus Compensation paid to the Executive
during the three (3) years prior to the termination date, but in no event less
than $1,011,615, (iii) continued participation by Executive and his spouse in
the Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until Executive dies or, if later, until his surviving spouse dies, (iv)
continued participation by each of Executive&#146;s dependent children in the
Company&#146;s medical, dental and vision health plan, at the Company&#146;s expense,
until each child is no longer a dependent, as defined by the applicable plan,
(v) immediate vesting of Executive&#146;s existing stock options, (vi) any
accumulations and benefits to which Employee is entitled under the Nonqualified
Supplemental Retirement Benefit Plan and a Nonqualified Deferred Compensation
Plan, and (vii) at the Executive&#146;s option, the Company shall transfer to the
Executive the ownership of any and all life insurance policies insuring the
Executive&#146;s life that the Company has purchased and the Executive shall
thereafter be liable for all payments due on such policies. Upon entitlement,
all sums due hereunder will be payable in cash or by official bank check within
thirty (30) days following termination of the Executive&#146;s employment.
Notwithstanding anything to the contrary contained herein, in the event that any
portion of the payments or benefits received or to be received by the Executive,
together with any other payments received by him, whether paid or payable
pursuant to the terms of this Agreement or any other plan, arrangement or
agreement with the Company or any other person or entity, would cause, either
directly or indirectly, an &#147;excess parachute payment&#148; to exist within the
meaning of said Section 280G of the Internal Revenue Code, the payments
hereunder shall be reduced until no portion of the payments would fail to be
deductible by reason of being an &#147;excess parachute payment&#148;. In the event that
any dispute arises as to whether an &#147;excess parachute payment&#148; exists, the
appropriate calculations shall be made by the Company&#146;s regularly employed
independent public auditors and delivered to the Executive in writing within
thirty (30) days following the date for payment of such severance payment, and
the Company will warrant to the Executive the accuracy of the calculations and
the information on which they are based.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(f)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive shall not be required to mitigate the amount of any payment or
benefit provided for in this Agreement by seeking other employment or
otherwise.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(g)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Notwithstanding anything herein to the contrary, with respect to any
right to a payment that constitutes a &#147;nonqualified deferred compensation plan&#148;
subject to Section 409A of the Code, any payment to be made upon the Executive&#146;s
termination of employment shall be delayed until the first day of the seventh
month following the Participant&#146;s termination of employment if the Participant
is a &#147;specified employee&#148; within the meaning of Section 409A of the Code and the
Company&#146;s 409A Policy, if any.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(h)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Notwithstanding anything herein to the contrary, with respect to any
right to a payment that (i) is to be made under this Section 5 based on the
continued participation by Executive, his spouse and each of Executive&#146;s
dependent children in the Company&#146;s medical, dental and vision health plan, at
the Company&#146;s expense, and (ii) constitutes a &#147;nonqualified deferred
compensation plan&#148; subject to Section 409A of the Code, any such payment shall
be made in accordance with Treasury Regulation &#167;1.409A-3(i)(1)(iv). Expenses
eligible for </FONT><FONT face=serif size=2>reimbursements and in-kind benefits
shall be determined based on the coverage provided by the relevant plan
maintained by the Company for eligible employees, and any payments shall be made
only for the period or periods specified in this Section 5. Any amount of
expenses eligible for reimbursement or in-kind benefit provided during a taxable
year shall not affect the expenses eligible for reimbursement or in-kind
benefits to be provided in any other taxable year. The reimbursement of any
eligible expense shall be made on or before the last day of Executive&#146;s taxable
year following the taxable year in which the expense was incurred. The right to
reimbursement or in-kind benefits shall not be subject to liquidation or
exchange for another benefit.</FONT></P>
<P align=center><FONT face=serif size=2>7 </FONT></P>
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<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>6.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Confidential Information</FONT></U><FONT face=serif size=2>. Executive
acknowledges that the information, observations and data obtained by Executive
while employed by the Company pursuant to this Agreement, as well as those
obtained by Executive while employed by the Company or any of its subsidiaries
or affiliates or any predecessor thereof prior to the date of this Agreement,
concerning the business or affairs of the Company or any of its subsidiaries or
affiliates or any predecessor thereof (unless and except to the extent the
foregoing become generally known to and available for use by the public other
than as a result of Executive&#146;s acts or omissions to act, &#147;</FONT><U><FONT face=serif size=2>Confidential Information</FONT></U><FONT face=serif size=2>&#148;)
are the property of the Company or such parent, subsidiary or affiliate.
Therefore, Executive agrees that during the Employment Period and thereafter
Executive shall not disclose any Confidential Information without the prior
written consent of the Board unless and except to the extent that such
disclosure is (i) made in the ordinary course of Executive&#146;s performance of
Executive&#146;s duties under this Agreement or (ii) required by any subpoena or
other legal process (in which event Executive will give the Company prompt
notice of such subpoena or other legal process in order to permit the Company to
seek appropriate protective orders), and that Executive shall not use any
Confidential Information for Executive&#146;s own account without the prior written
consent of the Board. Executive shall deliver to the Company at the termination
of the Employment Period, or at any other time the Company may reasonably
request, all memoranda, notes, plans, records, reports, computer tapes and
software and other documents and data (and copies thereof) relating to the
Confidential Information, or to the work product or the business of the Company
or any of its parent, subsidiaries or affiliates that Executive may then possess
or have under his control.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>7.</FONT><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>Noncompetition;
Nonsolicitation</FONT></U><FONT face=serif size=2>.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive acknowledges that in the course of his employment with the
Company pursuant to this Agreement, Executive will become familiar, and during
the course of Executive&#146;s employment by the Company or any of its parent,
subsidiaries or affiliates or any predecessor thereof prior to the date of this
Agreement, Executive has become familiar with trade secrets and customer lists
of and other confidential information concerning the Company and its parent,
subsidiaries and affiliates and predecessors thereof and that Executive&#146;s
services have been and will be of special, unique and extraordinary value to the
Company.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive agrees that during the Employment Period and, as a condition to
the receipt of payments as provided under paragraph 4, for a period of two (2)
years after termination of Executive&#146;s employment with the Company, in the State
of North Carolina Executive shall not in any manner, directly or indirectly,
through any person, firm or corporation, alone or as a member of a partnership
or as an officer, director, shareholder, investor or </FONT><FONT face=serif size=2>employee of or in any other corporation or enterprise or otherwise,
engage or be engaged in, or assist any other person, firm, corporation or
enterprise in engaging or being engaged in, any business then actively being
conducted by the Company or any of its parent, subsidiaries or
affiliates.</FONT></P>
<P align=center><FONT face=serif size=2>8 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive further agrees that, during the Employment Period and, as a
condition to the receipt of payments as provided under paragraph
4,</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2>for a
period of two (2) years after termination of Executive&#146;s employment with the
Company, Executive shall not in any manner, directly or indirectly, induce or
attempt to induce any employee of the Company or of any of its parent,
subsidiaries or affiliates (other than his spouse, if applicable) to quit or
abandon his or her employ.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Nothing
in this paragraph 7 shall prohibit Executive from being: (1) a shareholder in a
mutual fund or a diversified investment company or (ii) a passive owner of not
more than 5% of the outstanding equity securities of any class of a corporation
or other entity which is publicly traded, so long as Executive has no active
participation in the business of such corporation or other entity.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(e)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>In the
event Executive violates any legally enforceable provision of this Agreement as
to which there is a specific time period during which Executive is prohibited
from taking certain actions or from engaging in certain activities, as set forth
in this Agreement, then, in such event, the violation shall toll the running of
such time period from the date of such violation until the violation
ceases.</FONT><B><FONT face=serif size=2> </FONT></B><FONT face=serif size=2></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(f)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>Executive acknowledges that he has carefully considered the nature and
extent of the restrictions on him and the rights and remedies conferred on the
Company under this Agreement. Executive further acknowledges and agrees that the
same are reasonable in time and territory, are designed to eliminate competition
which would otherwise be unfair to the Company, do not stifle Executive&#146;s
inherent skill and experience, would not operate as a bar to Executive&#146;s sole
means of support, are fully required to protect the legitimate interests of the
Company and do not confer a benefit upon the Company disproportionate to
Executive&#146;s detriment.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(g)</FONT><FONT face=serif size=2> </FONT><FONT face=serif size=2>If, at
the time of enforcement of this paragraph, a court holds that the restrictions
stated herein are unreasonable under circumstances then existing, the parties
hereto agree that the maximum period, scope or geographical area reasonable
under such circumstances shall be substituted for the stated period, scope or
area and that the court shall be allowed to revise the restrictions contained
herein to cover the maximum period, scope and area permitted by law.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Enforcement</FONT></U><FONT face=serif size=2>. Because Executive&#146;s
services are unique and because Executive has access to Confidential Information
and work product, the parties hereto agree that the Company would be damaged
irreparably in the event any of the provisions of paragraph 7 hereof were not
performed in accordance with their specific terms or were otherwise breached and
that money damages would be an inadequate remedy for any such non-performance or
breach. Therefore, the Company or its successors or assigns shall be entitled,
in addition to other rights and remedies existing in their favor, to an
injunction or injunctions to prevent any breach or </FONT><FONT face=serif size=2>threatened breach of any of such provisions and to enforce such
provisions specifically (without posting a bond or other security).</FONT></P>
<P align=center><FONT face=serif size=2>9 </FONT></P>
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<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>9.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Consulting and Advice</FONT></U><FONT face=serif size=2>. During the time
period that the Executive receives post-employment payments under paragraph 5,
other than by reason of death or disability, the Executive agrees that when and
as requested, he will consult with the Company concerning policies, procedures
and operations. The requests by the Company for consultation (1) shall comply
with applicable requirements of Section 409A of the Code and the Company&#146;s 409A
Policy, if any, regarding the determination of whether a termination of
employment has occurred; (2) shall be at reasonable times, with appropriate
notice, not more frequent than three (3) times a month; and (3) may, at the
Executive&#146;s election, be through telephone communication. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Survival</FONT></U><FONT face=serif size=2>. Subject to any limits on
applicability contained therein, paragraphs 5, 6, 7 and 9 hereof shall survive
and continue in full force in accordance with their terms notwithstanding any
termination of the Employment Period.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>11.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Notices</FONT></U><FONT face=serif size=2>. Any notice provided for in
this Agreement shall be in writing and shall be either personally delivered,
sent by reputable overnight carrier or mailed by first class mail, return
receipt requested. Any notice to Executive will be delivered to the last home
address on file with the Company and any notice to the Company should be
delivered to:</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif size=2>Investors
Title Insurance Company<BR>Attention: Secretary<BR>P. O. Drawer 2687<BR>Chapel
Hill, NC 27515-2687</FONT></P>
<P align=justify><FONT face=serif size=2>or such other address or to the
attention of such other person as the recipient party shall have specified by
prior written notice to the sending party. Any notice under this Agreement will
be deemed to have been given when so delivered, sent or mailed.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>12.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Severability</FONT></U><FONT face=serif size=2>. Whenever possible, each
provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Agreement
is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or any other jurisdiction,
but this Agreement shall be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision had never
been contained herein.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>13.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Complete Agreement</FONT></U><FONT face=serif size=2>. This Agreement
embodies the complete agreement and understanding between the parties with
respect to the subject matter hereof and effective as of its date supersedes and
preempts any prior understandings, agreements or representations by or between
the parties, written or oral, which may have related to the subject matter
hereof in any way.</FONT></P>
<P align=center><FONT face=serif size=2>10 </FONT></P>
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<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>14.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Counterparts</FONT></U><FONT face=serif size=2>. This Agreement may be
executed in separate counterparts, each of which shall be deemed to be an
original and both of which taken together shall constitute one and the same
agreement.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>15.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Successors and Assigns</FONT></U><FONT face=serif size=2>. This Agreement
shall bind and inure to the benefit of and be enforceable by Executive, the
Company and their respective heirs, executors, personal representatives,
successors and assigns, except that neither party may assign any rights or
delegate any obligations hereunder without the prior written consent of the
other party. Executive hereby consents to the assignment by the Company of all
of its rights and obligations hereunder to any successor to the Company by
merger or consolidation or purchase of all or substantially all of the Company&#146;s
assets, provided such transferee or successor assumes the liabilities of the
Company hereunder.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>16.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Choice of Law</FONT></U><FONT face=serif size=2>. This Agreement shall be
governed by the internal law, and not the laws of conflicts, of the State of
North Carolina.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>17.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Amendment and Waiver</FONT></U><FONT face=serif size=2>. The provisions
of this Agreement may be amended or waived only with the prior written consent
of the Company and Executive, and no course of conduct or failure or delay in
enforcing the provisions of this Agreement shall affect the validity, binding
effect or enforceability of this Agreement.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>18.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Mediation</FONT></U><FONT face=serif size=2>. If a dispute arises out of
or relates to this Agreement, or the breach thereof, and if the dispute cannot
be settled through negotiation, the parties agree to submit such controversy to
mediation for resolution. The parties may use the procedures set forth in the
North Carolina General Statutes&#146; Rules Implementing Court Ordered Mediated
Settlement Conferences, where and if applicable. Provided, however, if any
controversy between the parties is not resolved by mediation within sixty (60)
days after the date the controversy has arisen (hereinafter &#147;controversy date&#148;),
the parties shall settle such controversy by arbitration in accordance with the
terms of the Uniform Arbitration Act, currently codified in North Carolina
General Statute, Article 45A, &#167;1-567.1, </FONT><U><FONT face=serif size=2>et
seq</FONT></U><FONT face=serif size=2>., or any successor statutes thereto, and
as provided in Section 19 below.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>19.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Arbitration</FONT></U><FONT face=serif size=2>. Any dispute or
controversy arising under this Agreement which is not resolved by mediation
pursuant to Section 18 shall be determined and settled by an independent
disinterested person agreed upon by the parties to the dispute. If the parties
are unable to mutually agree upon an independent arbitrator within thirty (30)
days, then each party shall appoint an independent arbitrator within thirty (30)
days, and the said two (2) independent arbitrators shall appoint a third
independent arbitrator within thirty (30) days, and the three (3) independent
arbitrators will resolve the dispute in controversy by majority vote in
accordance with the terms of the Uniform Arbitration Act currently codified in
North Carolina General Statute, Article 45A, &#167;1-567.1, </FONT><U><FONT face=serif size=2>et seq</FONT></U><FONT face=serif size=2>. or any successor
statutes. The expenses of arbitration shall be shared equally by each party
hereto, except that each party will pay the costs of his own legal counsel and
all other incidental expenses. The parties hereto agree to be bound by the
results of the arbitration. The place of arbitration shall be Orange County,
North Carolina.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>20.</FONT><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>Compliance with Section 409A of the Code</FONT></U><FONT face=serif size=2>. This Agreement is intended to comply with Section 409A of the Code.
Notwithstanding any provision of this Agreement to the </FONT><FONT face=serif size=2>contrary, this Agreement shall be interpreted, operated and administered
in a manner consistent with this intent. </FONT></P>
<P align=center><FONT face=serif size=2>11 </FONT></P>
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<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
written below.</FONT></P>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"  ></TD>
    <TD noWrap align=left width="50%" colSpan=3><FONT face=serif size=2>INVESTORS TITLE INSURANCE COMPANY</FONT>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="50%"  ></TD>
    <TD noWrap align=left width="50%"   colSpan=3>&nbsp;</TD></TR>
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    <TD noWrap align=left width="50%"   colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"  ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>By:</FONT>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="34%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="15%"  >&nbsp;</TD></TR>
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    <TD noWrap align=left width="50%"  ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>Its:</FONT>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="34%"  >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="15%"  >&nbsp;</TD></TR>
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    <TD noWrap align=left width="50%"   colSpan=3>&nbsp;</TD></TR>
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    <TD noWrap align=left width="50%"  ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>Date:</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="34%"  >&nbsp;</TD>
    <TD noWrap align=left width="15%"  >&nbsp;</TD></TR>
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    <TD noWrap align=left width="50%"  ></TD>
    <TD noWrap align=left width="50%" colSpan=3><FONT face=serif size=2>W.
      MORRIS FINE</FONT>&nbsp; </TD></TR>
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    <TD noWrap align=left width="50%"  ></TD>
    <TD noWrap align=left width="50%"   colSpan=3>&nbsp;</TD></TR>
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    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="50%"   colSpan=3>&nbsp;</TD></TR>
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    <TD noWrap align=left width="50%"  ></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>Date:</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="34%"  >&nbsp;</TD>
    <TD noWrap align=left width="15%"  >&nbsp;</TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>12 </FONT></P>
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<DOCUMENT>
<TYPE>EX-10.X
<SEQUENCE>6
<FILENAME>exhibit10-x.htm
<DESCRIPTION>AMENDED AND RESTATED DEATH BENEFIT PLAN AGREEMENT EFFECTIVE JANUARY 1, 2009
<TEXT>

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<P align=center><B><FONT face=serif><FONT face=serif size=2>AMENDED AND RESTATED
DEATH BENEFIT PLAN AGREEMENT</FONT></FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>THIS
AMENDED AND RESTATED DEATH BENEFIT PLAN AGREEMENT, effective as of January 1,
2009 (the &#147;Agreement&#148;), is by and between Investors Title Insurance Company, a
North Carolina corporation (the &#147;Company&#148;), and J. Allen Fine, an individual
residing in the State of North Carolina (the &#147;Executive&#148;),</FONT><FONT face=serif></FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WITNESSETH THAT:</FONT></FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WHEREAS, the Executive is employed
by the Company under the terms of an Employment Agreement dated November 17,
2003, as amended from time to time (the &#147;Employment Agreement&#148;), and</FONT><FONT face=serif></FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WHEREAS, the Company recognizes the
valuable services heretofore performed for it by the Executive and wishes to
encourage his continued employment; and</FONT><FONT face=serif></FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WHEREAS, the Executive wishes to be
assured that his irrevocably designated beneficiary will be entitled to a
certain benefit in the event of Executive&#146;s death; and</FONT><FONT face=serif></FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WHEREAS, the parties hereto
previously entered into that certain Death Benefit Plan Agreement, dated as of
April 1, 2004 (the &#147;Existing Death Benefit Plan Agreement&#148;), which sets forth
the terms and conditions upon which the Company will pay such death benefit;
and</FONT><FONT face=serif></FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WHEREAS, the parties deem it
appropriate to amend and restate the Existing Death Benefit Plan Agreement;
and</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the parties hereto intend that this Agreement be considered an unfunded
arrangement, maintained primarily to provide deferred compensation benefits for
the Executive, a member of a select group of management or highly compensated
employees of the Company, for purposes of the Employee Retirement Income
Security Act of 1974, as amended;</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>NOW,
THEREFORE, in consideration of the premises and of the mutual promises herein
contained, the parties hereto agree as follows:</FONT><FONT face=serif></FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>1.<FONT face=serif></FONT> <U>DEATH
BENEFIT</U>.</FONT></FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>a. In the event of the death of the
Executive while employed by the Company, the Company shall thereafter pay to the
Executive&#146;s designated beneficiary within sixty (60) days of the death of the
Executive a lump sum amount equal to:</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(i) an amount equal to three (3)
times the sum of the Executive's (i) current Base Salary, but in no event less
than $910,000, plus (ii) average Bonus Compensation for the past three (3) years (as such terms are defined in
the Employment Agreement), but in no event less than
$1,055,000.</FONT></P>
<P align=center><FONT face=serif><FONT face=serif size=2>1</FONT></FONT></P>
<HR align=center width="100%" noShade SIZE=2>
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<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>b. The Executive hereby irrevocably designates The James Allen
Fine Irrevocable Trust dated August 14, 1998 as his beneficiary
hereunder.</FONT><FONT face=serif></FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>2.<FONT face=serif></FONT>
<U>BENEFIT CONTINGENT ON CONTINUED EMPLOYMENT</U>.</FONT></FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>a.<FONT face=serif></FONT> In the event that the employment of
the Executive by the Company is terminated due to Retirement, Disability,
Termination without Cause or Termination by Executive for Good Reason, the
Employment Agreement shall govern.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>b.<FONT face=serif></FONT> In the event that the employment of
the Executive by the Company is terminated due to any reason other than his
death or a reason listed in Section 2(a), this Agreement shall terminate and the
Company shall have no obligation to provide the Executive or his designated
beneficiary with any benefits hereunder.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>c.<FONT face=serif></FONT> Nothing contained herein shall be
construed to be a contract of employment for any term of years, nor as
conferring upon the Executive the right to continue to be employed by the
Company, in any capacity. It is expressly understood by the parties hereto that
this Agreement relates exclusively to a death benefit for the Executive&#146;s
services, and is not intended to alter in any way the rights and
responsibilities under the Employment Agreement, as such may be amended from
time to time.</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>3.<FONT face=serif></FONT> <U>NO TRUST CREATED</U>. Nothing contained in this Agreement,
and no action taken pursuant to its provisions by either party hereto shall
create, or be construed to create, a trust of any kind, or a fiduciary
relationship between the Company and the Executive, his designated beneficiary
or any other person.</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>4.<FONT face=serif></FONT> <U>BENEFITS PAYABLE ONLY FROM GENERAL CORPORATE
ASSETS;</U><FONT face=serif></FONT> <U>UNSECURED GENERAL CREDITOR STATUS OF
EXECUTIVE</U>.</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>a.<FONT face=serif></FONT> The payments to the Executive&#146;s
designated beneficiary hereunder shall be made from assets which shall continue,
for all purposes, to be a part of the general, unrestricted assets of the
Company; no such person shall have nor acquire any interest in any such assets
by virtue of the provisions of this Agreement. The Company&#146;s obligation
hereunder shall be an unfunded and unsecured promise to pay money in the future.
To the extent that any person acquires a right to receive payments from the
Company under the provisions hereof, such right shall be no greater than the
right of any unsecured general creditor of the Company; no such person shall
have nor require any legal or equitable right, interest or claim in or to any
property or assets of the Company.</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>b.<FONT face=serif></FONT> In the event that, in its
discretion, the Company purchases an insurance policy or policies insuring the
life of the Executive (or any other property) to allow the Company to recover,
in whole, or in part, the cost of providing the benefits hereunder, neither the
Executive nor any of his designated beneficiaries shall have or acquire any
right whatsoever therein or in the proceeds therefrom. The Company shall be the
sole owner and beneficiary of any such policy or policies, and, as such, shall
possess and may exercise all incidents of ownership therein. No such policy,
policies or other property shall be held in any trust for the Executive or any
other person nor as collateral security for any obligation of the Company
hereunder.</FONT><FONT face=serif></FONT></P>
<P align=center><FONT face=serif><FONT face=serif size=2>2</FONT></FONT></P>
<HR align=center width="100%" noShade SIZE=2>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.<FONT face=serif></FONT> <U>NON-ASSIGNABILITY OF BENEFITS</U>. Neither the Executive
nor his designated beneficiary under this Agreement shall have any power or
right to transfer, assign, anticipate, hypothecate or otherwise encumber any
part or all of the amounts payable hereunder. Such amounts shall not be subject
to seizure by any creditor of any such beneficiary, by a proceeding at law or in
equity, nor transferable by operation of law in the event of the bankruptcy,
insolvency or death of the Executive, his designated beneficiary, or any other
beneficiary hereunder. Any such attempted assignment or transfer shall be void
and shall terminate this Agreement; the Company shall thereupon have no further
liability hereunder.</FONT><FONT face=serif></FONT></P>
<P align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>6.<FONT face=serif></FONT>
<U>ADMINISTRATION, DETERMINATION OF BENEFITS, AND CLAIMS
</U></FONT></FONT><U><FONT face=serif><FONT face=serif size=2>PROCEDURE<FONT face=serif>.</FONT></FONT></FONT></U><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>a. The Plan shall be administered by the Company&#146;s Board of
Directors, which shall have the authority, duty and power to interpret and
construe the provisions of the Plan as the Board deems appropriate including the
authority to determine eligibility for benefits under the Plan. The Board shall
have the duty and responsibility of maintaining records, making the requisite
calculations and disbursing the payments hereunder. The interpretations,
determinations, regulations and calculations of the Board shall be final and
binding on all persons and parties concerned. Any benefits payable under this
Plan will be paid only if the Plan Administrator decides in its discretion that
the applicant is entitled to them.</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>b. Expenses of administration shall be paid by the Company.
The Board shall be entitled to rely on all tables, valuations, certificates,
opinions, data and reports furnished by any actuary, accountant, controller,
counsel or other person employed or retained by the Company with respect to the
Plan.</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>c. Notwithstanding any provision herein to the contrary,
neither the Company nor any individual acting as an employee or agent of the
Company shall be liable to the Executive, the Executive&#146;s designated
beneficiary, the Executive&#146;s estate or any other person for any claim, loss,
liability or expense incurred in connection with the Plan, unless attributable
to fraud or willful misconduct on the part of the Company or any such employee
or agent of the Company.</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>d. All claims for
benefits shall be handled through the following procedure:</FONT></FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(i)
Claim.</FONT></FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>A person who believes that he is being denied a benefit to
which he is entitled under the Plan (hereinafter referred to as a &#147;Claimant&#148;)
may file a written request for such benefit with the Company, setting forth his
claim. The request must be addressed to the President of the Company at its then
principal place of business.</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(ii) Claim
Decision.</FONT></FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Upon receipt of a claim, the Company shall advise the Claimant
that a reply will be forthcoming within ninety (90) days and shall, in fact,
deliver such reply within such period. The Company may, however, extend the
reply period for an additional ninety (90) days for reasonable
cause.</FONT><FONT face=serif></FONT></P>
<P align=center><FONT face=serif><FONT face=serif size=2>3</FONT></FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>

<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>If the claim is denied in whole or in part, the Company shall
adopt a written opinion, using language calculated to be understood by the
Claimant, setting forth:</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(A) The specific reason
or reasons for such denial;</FONT></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(B) The specific reference to pertinent provisions of this
Agreement on which such denial is based;</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(C) A description of any additional material or information
necessary for the Claimant to perfect his claim and an explanation why such
material or such information is necessary;</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(D) Appropriate information as to the steps to be taken if the
Claimant wishes to submit the claim for review; and</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(E) The time limits for requesting a review under Section
6(e)(iii) and for review under Section 6(e)(iv).</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iii) Request for
Review.</FONT></FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Within sixty (60) days after the receipt by the Claimant of
the written opinion described above, the Claimant may request in writing that
the Assistant Secretary of the Company review the determination of the Company.
Such request must be addressed to the Assistant Secretary of the Company, at its
then principal place of business. The Claimant or his duly authorized
representative may, but need not, review the pertinent documents and submit
issues and comments in writing for consideration by the Company. If the Claimant
does not request a review of the Company&#146;s determination by the Assistant
Secretary of the Company within such sixty (60) day period, he shall be barred
and estopped from challenging the Company&#146;s determination.</FONT><FONT face=serif></FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iv) Review of
Decision.</FONT></FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Within sixty (60) days after the Assistant Secretary&#146;s receipt
of a request for review, he will review the Company&#146;s determination. After
considering all materials presented by the Claimant, the Assistant Secretary
will render a written opinion, written in a manner calculated to be understood
by the Claimant, setting forth the specific reasons for the decision and
containing specific references to the pertinent provisions of this Agreement on
which the decision is based. If special circumstances require that the sixty
(60) day time period be extended, the Assistant Secretary will so notify the
Claimant and will render the decision as soon as possible, but no later than one
hundred twenty (120) days after receipt of the request for review.</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.<FONT face=serif></FONT> <U>AMENDMENT AND TERMINATION</U>. This Agreement may not be
amended, altered, modified, or terminated, except by a written instrument signed
by the parties hereto, or their respective successors or assigns.</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.<FONT face=serif></FONT> <U>CHANGE OF CONTROL</U>. Following a Change of Control (as
that term is defined in the Employment Agreement), the Plan shall be continued
by the surviving entity, and the Executive&#146;s rights under this Agreement shall
not be impaired without the consent of the Executive.</FONT><FONT face=serif></FONT></P>
<P align=center><FONT face=serif><FONT face=serif size=2>4</FONT></FONT></P>
<HR align=center width="100%" noShade SIZE=2>
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<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>9.<FONT face=serif></FONT> <U>INUREMENT</U>. This Agreement shall be binding upon and
inure to the benefit of the Company and its successors and assigns, and the
Executive, his successors, heirs, executors, administrators and
beneficiaries.</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.<FONT face=serif></FONT> <U>NOTICES</U>. Any notice, consent or demand required or
permitted to be given under the provisions of this Agreement shall be in
writing, and shall be signed by the party giving or making the same. If such
notice, consent or demand is mailed to a party hereto, it shall be sent by
United States certified mail, postage prepaid, addressed to such party&#146;s last
known address as shown on the records of the Company. The date of such mailing
shall be deemed the date of notice, consent or demand.</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>11.<FONT face=serif></FONT> <U>GOVERNING LAW</U>. This Agreement, and the rights of the
parties hereunder, shall be governed by and construed in accordance with the
laws of the State of North Carolina.</FONT><FONT face=serif></FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>IN
WITNESS WHEREOF, the parties hereto have executed this Agreement, in duplicate,
as of the day and year first above written.</FONT><FONT face=serif></FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT face=serif><FONT face=serif size=2>Investors Title
      Insurance Company&nbsp;</FONT></FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif><FONT face=serif size=2>By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="49%" colSpan=3><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif>&nbsp;</FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="24%"><FONT size=2>&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>&nbsp;President</FONT></TD>
    <TD align=left width="24%"><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif><FONT face=serif size=2>ATTEST:&nbsp;</FONT></FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT face=serif size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="46%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="4%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif><FONT face=serif size=2>Secretary&nbsp;</FONT></FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT face=serif>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2>&nbsp;</TD>
    <TD align=center width="50%" colSpan=4><FONT face=serif size=2>Executive</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face=serif><FONT face=serif size=2>5</FONT></FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.XI
<SEQUENCE>8
<FILENAME>exhibit10-xi.htm
<DESCRIPTION>AMENDED AND RESTATED DEATH BENEFIT PLAN AGREEMENT EFFECTIVE JANUARY 1, 2009
<TEXT>

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<P align=center><IMG src="exhibit10xix1x1.jpg" border=0> </P>
<P align=center><B><FONT face=serif size=2>AMENDED AND RESTATED DEATH BENEFIT
PLAN AGREEMENT </FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>THIS
AMENDED AND RESTATED DEATH BENEFIT PLAN AGREEMENT, effective as of January 1,
2009 (the &#147;Agreement&#148;), is by and between Investors Title Insurance Company, a
North Carolina corporation (the &#147;Company&#148;), and James A. Fine, Jr., an
individual residing in the State of North Carolina (the &#147;Executive&#148;),
</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WITNESSETH THAT: </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the Executive is employed by the Company under the terms of an Employment
Agreement dated November 17, 2003, as amended from time to time (the &#147;Employment
Agreement&#148;), and </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the Company recognizes the valuable services heretofore performed for it by the
Executive and wishes to encourage his continued employment; and </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the Executive wishes to be assured that his irrevocably designated beneficiary
will be entitled to a certain benefit in the event of Executive&#146;s death; and
</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the parties hereto previously entered into that certain Death Benefit Plan
Agreement, dated as of May 19, 2004 (the &#147;Existing Death Benefit Plan
Agreement&#148;), which sets forth the terms and conditions upon which the Company
will pay such death benefit; and </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the parties deem it appropriate to amend and restate the Existing Death Benefit
Plan Agreement; and</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the parties hereto intend that this Agreement be considered an unfunded
arrangement, maintained primarily to provide deferred compensation benefits for
the Executive, a member of a select group of management or highly compensated
employees of the Company, for purposes of the Employee Retirement Income
Security Act of 1974, as amended; </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>NOW,
THEREFORE, in consideration of the premises and of the mutual promises herein
contained, the parties hereto agree as follows: </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>1.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>DEATH BENEFIT</FONT></U><FONT face=serif size=2>. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>a. In the event of the death of the Executive while employed
by the Company, the Company shall thereafter pay to the Executive&#146;s designated
beneficiary within sixty (60) days of the death of the Executive a lump sum
amount equal to: </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(i) an amount equal to three (3) times the sum of the
Executive's (i) current Base Salary, but in no event less than $766,680, plus
(ii) average Bonus Compensation for the past three (3) years (as such terms are
defined in the Employment Agreement), but in no event less than $1,030,000,
and</FONT></P>
<P align=center><FONT face=serif size=2>1</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(ii) two million dollars ($2,000,000), reduced by the amount
that the Executive's estate will receive under Section 1.a.(i) of this Agreement
and Sections 5(b)(iii) and 5(b)(v) of the Employment Agreement, plus the amount
accrued on the Company's books pursuant to Section 1.a.(i) of this Agreement and
Sections 5(b)(iii) and 5(b)(v) of the Employment Agreement. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>b. The Executive hereby irrevocably designates The James Allen
Fine, Jr. Irrevocable Family Trust dated April 16, 2003 as his beneficiary
hereunder. </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>2.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>BENEFIT CONTINGENT ON CONTINUED
EMPLOYMENT</FONT></U><FONT face=serif size=2>. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>a.</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>In the event that the employment of the Executive by the Company is
terminated due to Retirement, Disability, Termination without Cause or
Termination by Executive for Good Reason, the Employment Agreement shall
govern.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>b.</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>In the event that the employment of the Executive by the Company is
terminated due to any reason other than his death or a reason listed in Section
2(a), this Agreement shall terminate and the Company shall have no obligation to
provide the Executive or his designated beneficiary with any benefits
hereunder.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>c.</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Nothing contained herein shall be construed to be a contract of
employment for any term of years, nor as conferring upon the Executive the right
to continue to be employed by the Company, in any capacity. It is expressly
understood by the parties hereto that this Agreement relates exclusively to a
death benefit for the Executive&#146;s services, and is not intended to alter in any
way the rights and responsibilities under the Employment Agreement, as such may
be amended from time to time. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>3.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>NO
TRUST CREATED</FONT></U><FONT face=serif size=2>. Nothing contained in this
Agreement, and no action taken pursuant to its provisions by either party hereto
shall create, or be construed to create, a trust of any kind, or a fiduciary
relationship between the Company and the Executive, his designated beneficiary
or any other person. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>4.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>BENEFITS PAYABLE ONLY FROM GENERAL CORPORATE ASSETS; </FONT></U><U><FONT face=serif size=2>UNSECURED GENERAL CREDITOR STATUS OF EXECUTIVE</FONT></U><FONT face=serif size=2>. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>a.</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>The payments to the Executive&#146;s designated beneficiary hereunder shall be
made from assets which shall continue, for all purposes, to be a part of the
general, unrestricted assets of the Company; no such person shall have nor
acquire any interest in any such assets by virtue of the provisions of this
Agreement. The Company&#146;s obligation hereunder shall be an unfunded and unsecured
promise to pay money in the future. To the extent that any person acquires a
right to receive payments from the Company under the provisions hereof, such
right shall be no greater than the right of any unsecured general creditor of
the Company; no such person shall have nor require any legal or equitable right,
interest or claim in or to any property or assets of the
Company.&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>b.</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>In the event that, in its discretion, the Company purchases an insurance
policy or policies insuring the life of the Executive (or any other property) to
allow the Company to recover, in whole, or in part, the cost of providing the
benefits hereunder, neither the Executive nor any of his designated
beneficiaries shall have or acquire any 2 right whatsoever therein or in the
proceeds therefrom. The Company shall be the sole owner and beneficiary of any
such policy or policies, and, as such, shall possess and may exercise all
incidents of ownership therein. No such policy, policies or other property shall
be held in any trust for the Executive or any other person nor as collateral
security for any obligation of the Company hereunder.</FONT></P>

<P align=center><FONT face=serif size=2>2</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>NON-ASSIGNABILITY OF BENEFITS</FONT></U><FONT face=serif size=2>. Neither
the Executive nor his designated beneficiary under this Agreement shall have any
power or right to transfer, assign, anticipate, hypothecate or otherwise
encumber any part or all of the amounts payable hereunder. Such amounts shall
not be subject to seizure by any creditor of any such beneficiary, by a
proceeding at law or in equity, nor transferable by operation of law in the
event of the bankruptcy, insolvency or death of the Executive, his designated
beneficiary, or any other beneficiary hereunder. Any such attempted assignment
or transfer shall be void and shall terminate this Agreement; the Company shall
thereupon have no further liability hereunder. </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>6.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>ADMINISTRATION, DETERMINATION OF BENEFITS, AND
CLAIMS </FONT></U><U><FONT face=serif size=2>PROCEDURE</FONT></U><FONT face=serif size=2>. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>a. The Plan shall be administered by the Company&#146;s Board of
Directors, which shall have the authority, duty and power to interpret and
construe the provisions of the Plan as the Board deems appropriate including the
authority to determine eligibility for benefits under the Plan. The Board shall
have the duty and responsibility of maintaining records, making the requisite
calculations and disbursing the payments hereunder. The interpretations,
determinations, regulations and calculations of the Board shall be final and
binding on all persons and parties concerned. Any benefits payable under this
Plan will be paid only if the Plan Administrator decides in its discretion that
the applicant is entitled to them.&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>b. Expenses of administration shall be paid by the Company.
The Board shall be entitled to rely on all tables, valuations, certificates,
opinions, data and reports furnished by any actuary, accountant, controller,
counsel or other person employed or retained by the Company with respect to the
Plan.&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>c. Notwithstanding any provision herein to the contrary,
neither the Company nor any individual acting as an employee or agent of the
Company shall be liable to the Executive, the Executive&#146;s designated
beneficiary, the Executive&#146;s estate or any other person for any claim, loss,
liability or expense incurred in connection with the Plan, unless attributable
to fraud or willful misconduct on the part of the Company or any such employee
or agent of the Company.&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>d. All claims for benefits shall be
handled through the following procedure: </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(i) Claim. </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>A person who believes that he is being denied a benefit to
which he is entitled under the Plan (hereinafter referred to as a &#147;Claimant&#148;)
may file a written request for such benefit with the Company, setting forth his
claim. The request must be addressed to the President of the Company at its then
principal place of business.</FONT></P>
<P align=center><FONT face=serif size=2>3 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>

<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(ii) Claim Decision. </FONT></P>

<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Upon receipt of a claim, the Company shall advise the Claimant
that a reply will be forthcoming within ninety (90) days and shall, in fact,
deliver such reply within such period. The Company may, however, extend the
reply period for an additional ninety (90) days for reasonable cause.
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>If the claim is denied in whole or in part, the Company shall
adopt a written opinion, using language calculated to be understood by the
Claimant, setting forth: </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(A) The specific reason or reasons
for such denial;&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(B) The specific reference to pertinent provisions of this
Agreement on which such denial is based;&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(C) A description of any additional material or information
necessary for the Claimant to perfect his claim and an explanation why such
material or such information is necessary;&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(D) Appropriate information as to the steps to be taken if the
Claimant wishes to submit the claim for review; and&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(E) The time limits for requesting a review under Section
6(e)(iii) and for review under Section 6(e)(iv). </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iii) Request for Review.
</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Within sixty (60) days after the receipt by the Claimant of
the written opinion described above, the Claimant may request in writing that
the Assistant Secretary of the Company review the determination of the Company.
Such request must be addressed to the Assistant Secretary of the Company, at its
then principal place of business. The Claimant or his duly authorized
representative may, but need not, review the pertinent documents and submit
issues and comments in writing for consideration by the Company. If the Claimant
does not request a review of the Company&#146;s determination by the Assistant
Secretary of the Company within such sixty (60) day period, he shall be barred
and estopped from challenging the Company&#146;s determination. </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iv) Review of Decision. </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Within sixty (60) days after the Assistant Secretary&#146;s receipt
of a request for review, he will review the Company&#146;s determination. After
considering all materials presented by the Claimant, the Assistant Secretary
will render a written opinion, written in a manner calculated to be understood
by the Claimant, setting forth the specific reasons for the decision and
containing specific references to the pertinent provisions of this Agreement on
which the decision is based. If special circumstances require that the sixty
(60) day time period be extended, the Assistant Secretary will so notify the
Claimant and will render the decision as soon as possible, but no later than one
hundred twenty (120) days after receipt of the request for review. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>AMENDMENT AND TERMINATION</FONT></U><FONT face=serif size=2>. This
Agreement may not be amended, altered, modified, or terminated, except by a
written instrument signed by the parties hereto, or their respective successors
or assigns. </FONT></P>
<P align=center><FONT face=serif size=2>4 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>CHANGE
OF CONTROL</FONT></U><FONT face=serif size=2>. Following a Change of Control (as
that term is defined in the Employment Agreement), the Plan shall be continued
by the surviving entity, and the Executive&#146;s rights under this Agreement shall
not be impaired without the consent of the Executive. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>9.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>INUREMENT</FONT></U><FONT face=serif size=2>. This Agreement shall be
binding upon and inure to the benefit of the Company and its successors and
assigns, and the Executive, his successors, heirs, executors, administrators and
beneficiaries. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>NOTICES</FONT></U><FONT face=serif size=2>. Any notice, consent or demand
required or permitted to be given under the provisions of this Agreement shall
be in writing, and shall be signed by the party giving or making the same. If
such notice, consent or demand is mailed to a party hereto, it shall be sent by
United States certified mail, postage prepaid, addressed to such party&#146;s last
known address as shown on the records of the Company. The date of such mailing
shall be deemed the date of notice, consent or demand. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>11.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>GOVERNING LAW</FONT></U><FONT face=serif size=2>. This Agreement, and the
rights of the parties hereunder, shall be governed by and construed in
accordance with the laws of the State of North Carolina. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>IN
WITNESS WHEREOF, the parties hereto have executed this Agreement, in duplicate,
as of the day and year first above written. </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT face=serif><FONT face=serif size=2>Investors Title
      Insurance Company&nbsp;</FONT></FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif><FONT face=serif size=2>By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="49%" colSpan=3><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif>&nbsp;</FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="24%"><FONT size=2>&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>&nbsp;President</FONT></TD>
    <TD align=left width="24%"><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif><FONT face=serif size=2>ATTEST:&nbsp;</FONT></FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT face=serif size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="46%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="4%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif><FONT face=serif size=2>Secretary&nbsp;</FONT></FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT face=serif>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2>&nbsp;</TD>
    <TD align=center width="50%" colSpan=4><FONT face=serif size=2>Executive</FONT></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>5</FONT></P>

<HR align=center width="100%" noShade SIZE=2>

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end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.XII
<SEQUENCE>10
<FILENAME>exhibit10-xii.htm
<DESCRIPTION>DEATH BENEFIT PLAN AGREEMENT EFFECTIVE JANUARY 1, 2009 FOR W. MORRIS FINE
<TEXT>

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<P align=center><IMG src="ex10-xiix1x1.jpg" border=0> </P>
<P align=center><B><U><FONT face=serif size=2>DEATH BENEFIT PLAN
AGREEMENT</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>THIS
DEATH BENEFIT PLAN AGREEMENT, effective as of January 1, 2009 (the &#147;Agreement&#148;),
is by and between Investors Title Insurance Company, a North Carolina
corporation (the &#147;Company&#148;), and W. Morris Fine, an individual residing in the
State of North Carolina (the &#147;Executive&#148;), </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WITNESSETH THAT: </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the Executive is employed by the Company under the terms of an Employment
Agreement dated November 17, 2003, as amended from time to time (the &#147;Employment
Agreement&#148;), and </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the Company recognizes the valuable services heretofore performed for it by the
Executive and wishes to encourage his continued employment; and </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the Executive wishes to be assured that his irrevocably designated beneficiary
will be entitled to a certain benefit in the event of Executive&#146;s death; and
</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the parties hereto wish to provide the terms and conditions upon which the
Company shall pay such benefit to the Executive&#146;s beneficiary after the
Executive&#146;s death;</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
the parties hereto intend that this Agreement be considered an unfunded
arrangement, maintained primarily to provide deferred compensation benefits for
the Executive, a member of a select group of management or highly compensated
employees of the Company, for purposes of the Employee Retirement Income
Security Act of 1974, as amended; </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>NOW,
THEREFORE, in consideration of the premises and of the mutual promises herein
contained, the parties hereto agree as follows: </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>1.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>DEATH BENEFIT</FONT></U><FONT face=serif size=2>. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>a. In the event of the death of the Executive while employed
by the Company, the Company shall thereafter pay to the Executive&#146;s designated
beneficiary within sixty (60) days of the death of the Executive a lump sum
amount equal to: </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(i) an amount equal to three (3) times the sum of the
Executive's (i) current Base Salary, but in no event less than $766,680 plus
(ii) average Bonus Compensation for the past three (3) years (as such terms are
defined in the Employment Agreement), but in no event less than $1,015,000,
and&nbsp;</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(ii) two million dollars ($2,000,000), reduced by the amount
that the Executive's estate will receive under Section 1.a.(i) of this Agreement
and Sections 5(b)(iii) and 5(b)(v) of the Employment Agreement, plus the amount accrued on the Company's books pursuant to Section 1.a.(i) of this Agreement
and Sections 5(b)(iii) and 5(b)(v) of the Employment Agreement.</FONT></P>
<P align=center><FONT face=serif size=2>1 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>b. The Executive hereby irrevocably designates The William
Morris Fine Irrevocable Family Trust dated December 30, 2004 as his beneficiary
hereunder. </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>2.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>BENEFIT CONTINGENT ON CONTINUED
EMPLOYMENT</FONT></U><FONT face=serif size=2>. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>a.</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>In the event that the employment of the Executive by the Company is
terminated due to Retirement, Disability, Termination without Cause or
Termination by Executive for Good Reason, the Employment Agreement shall
govern.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>b.</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>In the event that the employment of the Executive by the Company is
terminated due to any reason other than his death or a reason listed in Section
2(a), this Agreement shall terminate and the Company shall have no obligation to
provide the Executive or his designated beneficiary with any benefits
hereunder.</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>c.</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Nothing contained herein shall be construed to be a contract of
employment for any term of years, nor as conferring upon the Executive the right
to continue to be employed by the Company, in any capacity. It is expressly
understood by the parties hereto that this Agreement relates exclusively to a
death benefit for the Executive&#146;s services, and is not intended to alter in any
way the rights and responsibilities under the Employment Agreement, as such may
be amended from time to time. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>3.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>NO
TRUST CREATED</FONT></U><FONT face=serif size=2>. Nothing contained in this
Agreement, and no action taken pursuant to its provisions by either party hereto
shall create, or be construed to create, a trust of any kind, or a fiduciary
relationship between the Company and the Executive, his designated beneficiary
or any other person. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>4.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>BENEFITS PAYABLE ONLY FROM GENERAL CORPORATE ASSETS;</FONT></U><FONT face=serif size=2> </FONT><U><FONT face=serif size=2>UNSECURED GENERAL CREDITOR
STATUS OF EXECUTIVE</FONT></U><FONT face=serif size=2>. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>a.</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>The payments to the Executive&#146;s designated beneficiary hereunder shall be
made from assets which shall continue, for all purposes, to be a part of the
general, unrestricted assets of the Company; no such person shall have nor
acquire any interest in any such assets by virtue of the provisions of this
Agreement. The Company&#146;s obligation hereunder shall be an unfunded and unsecured
promise to pay money in the future. To the extent that any person acquires a
right to receive payments from the Company under the provisions hereof, such
right shall be no greater than the right of any unsecured general creditor of
the Company; no such person shall have nor require any legal or equitable right,
interest or claim in or to any property or assets of the
Company.&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>b.</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>In the event that, in its discretion, the Company purchases an insurance
policy or policies insuring the life of the Executive (or any other property) to
allow the Company to recover, in whole, or in part, the cost of providing the
benefits hereunder, neither the Executive nor any of his designated
beneficiaries shall have or acquire any right whatsoever therein or in the
proceeds therefrom. The Company shall be the sole owner and beneficiary of any
such policy or policies, and, as such, shall possess and may exercise all
incidents of ownership therein. No such policy, policies or other property shall
be held in any trust for the Executive or any other person nor as collateral
security for any obligation of the Company hereunder. </FONT></P>
<P align=center><FONT face=serif size=2>2 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>NON-ASSIGNABILITY OF BENEFITS</FONT></U><FONT face=serif size=2>. Neither
the Executive nor his designated beneficiary under this Agreement shall have any
power or right to transfer, assign, anticipate, hypothecate or otherwise
encumber any part or all of the amounts payable hereunder. Such amounts shall
not be subject to seizure by any creditor of any such beneficiary, by a
proceeding at law or in equity, nor transferable by operation of law in the
event of the bankruptcy, insolvency or death of the Executive, his designated
beneficiary, or any other beneficiary hereunder. Any such attempted assignment
or transfer shall be void and shall terminate this Agreement; the Company shall
thereupon have no further liability hereunder. </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>6.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>ADMINISTRATION, DETERMINATION OF BENEFITS, AND
CLAIMS </FONT></U><U><FONT face=serif size=2>PROCEDURE</FONT></U><FONT face=serif size=2>. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>a. The Plan shall be administered by the Company&#146;s Board of
Directors, which shall have the authority, duty and power to interpret and
construe the provisions of the Plan as the Board deems appropriate including the
authority to determine eligibility for benefits under the Plan. The Board shall
have the duty and responsibility of maintaining records, making the requisite
calculations and disbursing the payments hereunder. The interpretations,
determinations, regulations and calculations of the Board shall be final and
binding on all persons and parties concerned. Any benefits payable under this
Plan will be paid only if the Plan Administrator decides in its discretion that
the applicant is entitled to them.&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>b. Expenses of administration shall be paid by the Company.
The Board shall be entitled to rely on all tables, valuations, certificates,
opinions, data and reports furnished by any actuary, accountant, controller,
counsel or other person employed or retained by the Company with respect to the
Plan.&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>c. Notwithstanding any provision herein to the contrary,
neither the Company nor any individual acting as an employee or agent of the
Company shall be liable to the Executive, the Executive&#146;s designated
beneficiary, the Executive&#146;s estate or any other person for any claim, loss,
liability or expense incurred in connection with the Plan, unless attributable
to fraud or willful misconduct on the part of the Company or any such employee
or agent of the Company. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>d. All claims for benefits shall be
handled through the following procedure: </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(i) Claim.&nbsp;</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>A person who believes that he is being denied a benefit to
which he is entitled under the Plan (hereinafter referred to as a &#147;Claimant&#148;)
may file a written request for such benefit with the Company, setting forth his
claim. The request must be addressed to the President of the Company at its then
principal place of business. </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(ii) Claim
Decision.&nbsp;</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Upon receipt of a claim, the Company shall advise the Claimant
that a reply will be forthcoming within ninety (90) days and shall, in fact,
deliver such reply within such period. The Company may, however, extend the
reply period for an additional ninety (90) days for reasonable cause.
</FONT></P>
<P align=center><FONT face=serif size=2>3 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>If the claim is denied in whole or in part, the Company shall
adopt a written opinion, using language calculated to be understood by the
Claimant, setting forth:&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(A) The specific reason or reasons
for such denial;&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(B) The specific reference to pertinent provisions of this
Agreement on which such denial is based;&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(C) A description of any additional material or information
necessary for the Claimant to perfect his claim and an explanation why such
material or such information is necessary;&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(D) Appropriate information as to the steps to be taken if the
Claimant wishes to submit the claim for review; and&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(E) The time limits for requesting a review under Section
6(e)(iii) and for review under Section 6(e)(iv). </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iii) Request for
Review.&nbsp;</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Within sixty (60) days after the receipt by the Claimant of
the written opinion described above, the Claimant may request in writing that
the Assistant Secretary of the Company review the determination of the Company.
Such request must be addressed to the Assistant Secretary of the Company, at its
then principal place of business. The Claimant or his duly authorized
representative may, but need not, review the pertinent documents and submit
issues and comments in writing for consideration by the Company. If the Claimant
does not request a review of the Company&#146;s determination by the Assistant
Secretary of the Company within such sixty (60) day period, he shall be barred
and estopped from challenging the Company&#146;s determination. </FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iv) Review of
Decision.&nbsp;</FONT></P>
<P style="PADDING-LEFT: 30pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Within sixty (60) days after the Assistant Secretary&#146;s receipt
of a request for review, he will review the Company&#146;s determination. After
considering all materials presented by the Claimant, the Assistant Secretary
will render a written opinion, written in a manner calculated to be understood
by the Claimant, setting forth the specific reasons for the decision and
containing specific references to the pertinent provisions of this Agreement on
which the decision is based. If special circumstances require that the sixty
(60) day time period be extended, the Assistant Secretary will so notify the
Claimant and will render the decision as soon as possible, but no later than one
hundred twenty (120) days after receipt of the request for review. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>AMENDMENT AND TERMINATION</FONT></U><FONT face=serif size=2>. This
Agreement may not be amended, altered, modified, or terminated, except by a
written instrument signed by the parties hereto, or their respective successors
or assigns. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>CHANGE
OF CONTROL</FONT></U><FONT face=serif size=2>. Following a Change of Control (as
that term is defined in the Employment Agreement), the Plan shall be continued
by the surviving entity, and the Executive&#146;s rights under this Agreement shall
not be impaired without the consent of the Executive. </FONT></P>
<P align=center><FONT face=serif size=2>4 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>9.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>INUREMENT</FONT></U><FONT face=serif size=2>. This Agreement shall be
binding upon and inure to the benefit of the Company and its successors and
assigns, and the Executive, his successors, heirs, executors, administrators and
beneficiaries. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>NOTICES</FONT></U><FONT face=serif size=2>. Any notice, consent or demand
required or permitted to be given under the provisions of this Agreement shall
be in writing, and shall be signed by the party giving or making the same. If
such notice, consent or demand is mailed to a party hereto, it shall be sent by
United States certified mail, postage prepaid, addressed to such party&#146;s last
known address as shown on the records of the Company. The date of such mailing
shall be deemed the date of notice, consent or demand. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>11.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>GOVERNING LAW</FONT></U><FONT face=serif size=2>. This Agreement, and the
rights of the parties hereunder, shall be governed by and construed in
accordance with the laws of the State of North Carolina. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>IN
WITNESS WHEREOF, the parties hereto have executed this Agreement, in duplicate,
as of the day and year first above written. </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT face=serif><FONT face=serif size=2>Investors Title
      Insurance Company&nbsp;</FONT></FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=serif><FONT face=serif size=2>By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="49%" colSpan=3><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif>&nbsp;</FONT></TD>
    <TD align=left width="1%"><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="24%"><FONT size=2>&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>&nbsp;President</FONT></TD>
    <TD align=left width="24%"><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif><FONT face=serif size=2>ATTEST:&nbsp;</FONT></FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT face=serif size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="46%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="4%"><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2><FONT face=serif><FONT face=serif size=2>Secretary&nbsp;</FONT></FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT face=serif>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD align=left width="50%" colSpan=2><FONT size=2>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="50%" colSpan=4><FONT size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%" colSpan=2>&nbsp;</TD>
    <TD align=center width="50%" colSpan=4><FONT face=serif size=2>Executive</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>5 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.XIII
<SEQUENCE>12
<FILENAME>exhibit10-xiii.htm
<DESCRIPTION>AMENDED AND RESTATED NONQUALIFIED DEFERRED COMPENSATION PLAN
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">

<P align=center><IMG src="ex10xiiix1x1.jpg" border=0> </P>
<P align=center><B><FONT face=serif size=2>NONQUALIFIED DEFERRED COMPENSATION
PLAN</FONT></B></P>
<P align=center><B><FONT face=serif size=2>As Amended and Restated Effective
January 1, 2009</FONT></B></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>TABLE OF CONTENTS</FONT></B></P>
<TABLE style="FONT-SIZE: 10pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="92%"></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="2%"><B><FONT face=serif size=2>Page</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0><FONT face=serif size=2>PREAMBLE</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>ARTICLE 1 DEFINITIONS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.1</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Account</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>1</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Beneficiary</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.3</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Benefit Commencement Date</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>1</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Board&#148; or &#147;Board of
      Directors</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.5</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Code</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>1</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.6</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Committee</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.7</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Company</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>1</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.8</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Company
      Contributions</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.9</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Compensation</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.10</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Effective Date</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.11</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Elective Deferral</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.12</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Eligible
      Employee</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.13</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Participant</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.14</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Plan</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.15</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Plan Administrator</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.16</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Plan Year</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.17</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Rabbi Trust</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.18</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Schedule</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.19</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>SEP</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.20</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Section 401(k)
      Plan</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.21</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Termination of Employment</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.22</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Valuation Date</FONT></U><FONT face=serif size=2>&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%" colSpan=3>&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>ARTICLE 2 PARTICIPATION</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>2.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="92%" bgColor=#ffffff><U><FONT face=serif size=2>Eligible Class</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>2.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Commencement of Participation</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>3</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>ARTICLE 3 ESTABLISHMENT OF ACCOUNTS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>4</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>3.1</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><U><FONT face=serif size=2>Accounts</FONT></U>&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>4</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>3.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Credits and Debits to Accounts</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>4</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%" colSpan=3>&nbsp;</TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>ARTICLE 4 CONTRIBUTIONS AND BENEFITS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>5</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>4.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="92%" bgColor=#ffffff><U><FONT face=serif size=2>Benefits</FONT></U>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>5</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>4.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Elective Deferrals</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>5</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>4.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="92%" bgColor=#ffffff><U><FONT face=serif size=2>Company Contributions</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>5</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>4.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Crediting Elective Contributions to Accounts</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>6</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>4.5</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="92%" bgColor=#ffffff><U><FONT face=serif size=2>Taxation</FONT></U>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>6</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>4.6</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Investment Funds</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>6</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>4.7</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="92%" bgColor=#ffffff><U><FONT face=serif size=2>Company Investments</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>7</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>i</FONT><FONT face=serif size=1>
</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>TABLE OF CONTENTS<BR></FONT></B><FONT face=serif size=2>(continued) </FONT></P>
<TABLE style="FONT-SIZE: 10pt; LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="4%"></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="92%"></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="2%"><B><FONT face=serif size=2>Page</FONT></B></TD></TR>
  <TR>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>ARTICLE 5 BENEFIT EVENTS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>8</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.1</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><FONT face=serif size=2><U>Benefits Following Termination of Employment</U></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>8</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Death Benefits</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>8</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.3</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><U><FONT face=serif size=2>Payor</FONT></U></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>8</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>One-Time Benefit Event</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>8</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%" colSpan=3>&nbsp;</TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>ARTICLE 6 VALUATION AND DISTRIBUTION OF
    ACCOUNTS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>6.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="92%" bgColor=#ffffff><U><FONT face=serif size=2>Valuation of Accounts</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>6.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Commencement of Benefits</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>6.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="92%" bgColor=#ffffff><U><FONT face=serif size=2>Form and Amount of Payment</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>6.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Deferral of Benefits</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>9</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="92%">&nbsp;</TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>ARTICLE 7 ADMINISTRATION AND CLAIMS PROCEDURE</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>10</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.1</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><U><FONT face=serif size=2>Administration</FONT></U></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>10</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Expenses; Reliance on Third-Parties</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>10</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.3</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><U><FONT face=serif size=2>Annual
      Statements</FONT></U></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>10</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Appointment of a Conservator</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>10</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.5</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><U><FONT face=serif size=2>Limitation of
      Liability</FONT></U></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>10</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.6</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Claims for Benefits</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>11</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%" colSpan=3>&nbsp;</TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>ARTICLE 8 FUNDING</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>12</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="92%" bgColor=#ffffff><U><FONT face=serif size=2>In General</FONT></U>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>12</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Rabbi Trust</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>12</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="92%">&nbsp;</TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>ARTICLE 9 AMENDMENT, TERMINATION AND CHANGE OF
      CONTROL</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>13</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>9.1</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="92%"><U><FONT face=serif size=2>Amendment or
      Termination</FONT></U></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>13</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>9.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Change of Control</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>13</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="97%" colSpan=3>&nbsp;</TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="2%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="97%" bgColor=#c0c0c0 colSpan=3><FONT face=serif size=2>ARTICLE 10 GENERAL PROVISIONS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>14</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="92%" bgColor=#ffffff><U><FONT face=serif size=2>Payment to Minors and Incompetents</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>14</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>No Contract</FONT></U>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>14</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="92%" bgColor=#ffffff><U><FONT face=serif size=2>Use of Masculine and Feminine; Singular and Plural</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>14</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Non-Alienation of Benefits</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>14</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.5</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="92%" bgColor=#ffffff><U><FONT face=serif size=2>Protective Provisions</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>14</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.6</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Governing Law</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.7</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="92%" bgColor=#ffffff><U><FONT face=serif size=2>Captions</FONT></U>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT face=serif size=2>15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>10.8</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><U><FONT face=serif size=2>Compliance with Section 409A of the Code</FONT></U></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>15</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>ii </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>PREAMBLE</FONT></U></B></P>
<P align=justify><FONT face=serif size=2>Investors Title Insurance Company the
(&#147;Company&#148;) previously established a non-qualified deferred compensation plan
referred to as the Investors Title Insurance Company Nonqualified Deferred
Compensation Plan (the &#147;Plan&#148;), originally effective June 1, 2004. The Company
is amending and restating the Plan effective January 1, 2009 as set forth herein
to (i) reflect certain design changes to the Plan, (ii) provide for the Plan&#146;s
documentary compliance with the requirements of Section 409A of the Code, and
(iii) otherwise meet current needs. </FONT></P>
<P align=justify><FONT face=serif size=2>The purpose of this Plan is to permit
selected management employees to set-aside additional retirement benefits on a
pre-tax basis. This Plan shall be unfunded and maintained primarily for the
purpose of providing deferred compensation for a select group of management or
highly compensated employees within the meaning of Sections 201(2), 301(a)(3)
and 401(a)(l) of the Employee Retirement Income Security Act of 1974, as amended
(&#147;ERISA&#148;). The Plan is intended to be effective with respect to Compensation
earned after December 31, 2002. </FONT></P>
<P align=justify><FONT face=serif size=2>Benefits are based upon hypothetical
contributions from a Participant&#146;s Compensation, and from Company Contributions,
in each case which are credited to a Participant&#146;s &#147;Account&#148;. </FONT></P>
<P align=justify><FONT face=serif size=2>It is intended that funds accumulated
under this Plan on a Participant&#146;s behalf will be paid to the Participant at a
specified future date determined under procedures described herein, or upon
disability or Termination of Employment. The Participant may select a lump sum,
or from among other payment options for Plan benefits. Upon the Participant&#146;s
death, the Participant&#146;s remaining Account balance, if any, will be paid to the
Participant&#146;s named Beneficiary. </FONT></P>
<P align=justify><FONT face=serif size=2>Account balances resulting from a
Participant&#146;s deferred compensation may be credited with interest, at a rate
determined by the Company, or with amounts reflecting and corresponding to the
performance (i.e., income, gains, losses, etc.) of a designated security or
index. Further, the Company may choose to set aside assets relating to Plan
obligations in a Rabbi Trust, the corpus of which will be available to the
Company&#146;s creditors in the event of bankruptcy. However, the Company is under no
obligation to invest amounts deemed contributed to the Plan or to set aside
funds in a Rabbi Trust. In all cases, the Company may elect to pay the benefits
promised hereunder from other general assets. Notwithstanding the fact that the
Company may set aside assets in respect of its obligations under the Plan, the
Plan is unfunded and the rights of Participants and Beneficiaries are limited to
those of general, unsecured creditors of the Company. </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE
1</FONT></U></B><BR><B><U><FONT face=serif size=2>DEFINITIONS</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<P align=justify><FONT face=serif size=2>The following words and phrases when
used in the Plan shall have the following meanings, unless a different meaning
is plainly required by the context: </FONT></P>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.1</FONT>&nbsp; &nbsp;
      &nbsp; </TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Account</FONT></U><FONT face=serif size=2>&#148; means the bookkeeping
      account established for the measurement of the Company&#146;s accumulated
      liability to a Participant under the Plan. Each Participant&#146;s Account will
      reflect the undistributed balance to the credit of the Participant,
      representing accumulated Elective Deferrals and Company Contributions, and
      the hypothetical investment earnings, gains and losses credited to the
      Account under the terms of the Plan.</FONT> </P></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD align=left width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.2</FONT>&nbsp; &nbsp;
      &nbsp; </TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Beneficiary</FONT></U><FONT face=serif size=2>&#148; means the person,
      persons or trust designated by the Participant or former Participant to
      receive benefits under the Plan in the event of the Participant&#146;s death
      prior to the full distribution of his Account. A Participant shall
      designate his Beneficiary or Beneficiaries in writing under the specific
      procedures as shall be established by the Plan Administrator. A
      Participant may change his Beneficiaries at any time by delivering written
      instructions to the Plan Administrator. In the event a Participant dies
      without a valid designation of Beneficiary in effect, the Participant&#146;s
      remaining Account shall be payable to his spouse or, if the Participant is
      not married at the time of death, to his estate.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.3</FONT>&nbsp; &nbsp;
      &nbsp; </TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Benefit Commencement Date</FONT></U><FONT face=serif size=2>&#148; means
      the date upon which the Participant&#146;s Termination of Employment occurs or
      is deemed to occur in accordance with the provisions of Article 4 and
      after which the distribution of benefits to the Participant will commence
      in accordance with the provisions of Article 4 and Article 5.</FONT>
    </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.4</FONT>&nbsp; &nbsp;
      &nbsp; </TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Board&#148; or &#147;Board of Directors</FONT></U><FONT face=serif size=2>&#148;
      means the Board of Directors of Investors Title Insurance Company.</FONT>
      </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.5</FONT>&nbsp; &nbsp;
      &nbsp; </TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Code</FONT></U><FONT face=serif size=2>&#148; means the Internal Revenue
      Code of 1986, as amended from time to time, and any regulations issued
      thereunder. Reference to any section of the Code shall include any
      successor provision thereto.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.6</FONT>&nbsp; &nbsp;
      &nbsp; </TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Committee</FONT></U><FONT face=serif size=2>&#148; means the
      Compensation Committee of Investors Title Insurance Company or such other
      person or persons designated by the Company to determine the eligibility
      of employees for participation in the Plan in accordance with the
      provisions of Article 2, and to provide oversight to the administration of
      the plan in accordance with Article 7.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.7</FONT>&nbsp; &nbsp;
      &nbsp; </TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Company</FONT></U><FONT face=serif size=2>&#148; means Investors Title
      Insurance Company, a North Carolina corporation, and its successor or
      successors. The Company is a wholly-owned subsidiary of Investors Title
      Company.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.8</FONT>&nbsp; &nbsp;
      &nbsp; </TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Company Contributions</FONT></U><FONT face=serif size=2>&#148; means the
      amounts which the Company will credit to a Participant&#146;s Account, as
      provided in Section 4.3.</FONT> </P></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.9</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Compensation</FONT></U><FONT face=serif size=2>&#148; means the
      aggregate compensation paid to a participant by the Company for a Plan
      Year, including salary, overtime pay, commissions, bonuses and all other
      items that constitute wages within the meaning of &#167; 3401 (a) of the Code
      or are required to be reported under &#167;&#167; 6041(d), 6051(a)(3) or 6052 of the
      Code. Compensation also includes Elective Deferrals under this Plan and
      any deferrals under cash-or-deferred arrangements or cafeteria plans that
      are not includible in gross income by reason of &#167; 125 or &#167; 402(a)(8) of
      the Code but does not include any other amounts contributed pursuant to,
      or received under, this Plan or any other plan of deferred compensation.
      Compensation excludes all stock option transactions, relocation
      reimbursements, and automobile allowances.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.10</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Effective Date</FONT></U><FONT face=serif size=2>&#148; means June 1,
      2004.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.11</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Elective Deferral</FONT></U><FONT face=serif size=2>&#148; means the
      amounts of Compensation which a Participant may elect to defer receipt
      until a later date, and which will be credited to such Participant&#146;s
      Account, as provided in Section 4.2.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.12</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Eligible Employee</FONT></U><FONT face=serif size=2>&#148; means an
      employee of the Company who is included in the eligible class described in
      Section 2.1, and who is listed on the Schedule.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.13</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Participant</FONT></U><FONT face=serif size=2>&#148; means an Eligible
      Employee for whom an Account is being maintained under the terms of the
      Plan.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.14</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Plan</FONT></U><FONT face=serif size=2>&#148; means the Investors Title
      Insurance Company Non-Qualified Deferred Compensation Plan as set forth in
      this document and as amended from time to time.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.15</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Plan Administrator</FONT></U><FONT face=serif size=2>&#148; means the
      Company.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.16</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Plan Year</FONT></U><FONT face=serif size=2>&#148; means each calendar
      year commencing January 1, 2004 and thereafter.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.17</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Rabbi Trust</FONT></U><FONT face=serif size=2>&#148; means, for the
      purposes of this Plan, a grantor trust under Subpart E of Subchapter J of
      Chapter I of the Code established by an employer in connection with a
      nonqualified deferred compensation or supplemental retirement benefit
      plan, the assets of which may be reached by the employer grantor&#146;s general
      creditors.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.18</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Schedule</FONT></U><FONT face=serif size=2>&#148; means the document
      which lists the Eligible Employees who are Participants in the Plan, as
      such Schedule is amended from time to time.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.19</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>SEP</FONT></U><FONT face=serif size=2>&#148; means the simplified
      employee pension which the Company sponsored and administered prior to
      January 1, 2008, as provided in Code Section 408.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.20</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Section 401(k) Plan</FONT></U><FONT face=serif size=2>&#148; means the
      Investors Title Insurance Company and Affiliates 401(k) Plan, effective
      February 1, 2008, which the Company sponsors and administers, as provided
      in Code Section 401(k).</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.21</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Termination of Employment</FONT></U><FONT face=serif size=2>&#148; means
      any termination of the employee/employer relationship between a
      Participant and the Company for any reason. For purposes of the Plan,
      whether a &#147;Termination of Employment&#148; has occurred shall be determined in
      a manner consistent with the requirements of Section 409A of the Code and
      the Company&#146;s 409A Policy, if any.</FONT> </P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif>1.22</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif>&#147;</FONT><U><FONT face=serif>Valuation
      Date</FONT></U><FONT face=serif>&#148; means the last day of each calendar
      quarter, and is the date on which Participant Account values are
      determined.</FONT> </P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>2</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE
2<BR></FONT></U></B><B><U><FONT face=serif size=2>PARTICIPATION</FONT></U></B></P>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>2.1</FONT></TD>
    <TD width="100%" colSpan=2><U><FONT face=serif size=2>Eligible
      Class</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>Except as provided in (b) and (c)
      below, an individual who is employed by the Company is an Eligible
      Employee with respect to a particular Plan Year only if he is both (i)
      within a select group of management or highly compensated Employees within
      the meaning of Sections 201(2), 301 (a)(3) and 401 (a)(l) of ERISA, as
      determined by the Committee in its sole discretion, and (ii) identified by
      the Company as an Eligible Employee and listed in the Schedule A, attached
      hereto.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>Each Eligible Employee must
      cooperate with the Company by furnishing any and all information requested
      by the Company in order to facilitate the payment of benefits hereunder.
      Notwithstanding any provision in the Plan to the contrary, an individual
      who would otherwise be eligible to receive benefits under the Plan shall
      nevertheless be considered ineligible, and may be barred by the Company
      from participation in the Plan, (i) if he refuses to cooperate with any
      requirement which the Committee or Plan Administrator may reasonably
      impose; or (ii) if the Company chooses, in its discretion, to purchase one
      or more life insurance policies on the life of the individual in
      connection with its obligations under this plan, and the individual fails
      to submit a complete and accurate application in connection with the
      acquisition of the policy(ies), or fails to submit to any physical
      examination that the insurer may require, or fails to provide any other
      information that the insurer or Plan Administrator may reasonably request
      or to comply with any other requirement which the insurer may reasonably
      impose.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>2.2</FONT></TD>
    <TD width="100%" colSpan=2><U><FONT face=serif size=2>Commencement of
      Participation</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Each Eligible Employee shall
      first become a Participant as of the initial pay period for the first Plan
      Year following the date upon which he is first determined by the Committee
      to be an Eligible Employee.</FONT> </P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>3</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE 3</FONT></U></B><B><FONT face=serif size=2><BR></FONT></B><B><U><FONT face=serif size=2>ESTABLISHMENT OF
ACCOUNTS</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>3.1</FONT></TD>
    <TD width="100%" colSpan=2><U><FONT face=serif size=2>Accounts</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="100%" colSpan=2></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>The Plan Administrator will
      establish and maintain separate memorandum Accounts for each Participant,
      for bookkeeping purpose only, which will be used to measure the amount of
      the Company&#146;s liability to each Participant and Beneficiary under this
      Plan.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>3.2</FONT></TD>
    <TD width="100%" colSpan=2><U><FONT face=serif size=2>Credits and Debits
      to Accounts</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>The Plan Administrator will, as
      often and as soon as may be reasonable and practicable, make such
      adjustments to the Accounts, by credit (addition) or debit (reduction), as
      may be necessary and/or appropriate to reflect:</FONT> </P></TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD width="100%"><FONT face=serif size=2>a Participant&#146;s Elective
      Deferrals,</FONT> </TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD width="100%"><FONT face=serif size=2>any Company Contributions,</FONT>
    </TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(c)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>any accrued interest (if Company
      contributions are deemed to be invested at interest), and</FONT>
</P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(d)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>any income and/or expense, and
      any gain or loss (i.e., increase or decrease, whether realized or
      unrealized), associated with any other investment(s) in which the
      contributions are deemed be invested, so that the balance of any portion
      of the Account that is deemed to be invested will be adjusted in the same
      manner and amount that it would have been adjusted had the Account
      investment actually been made (i.e., so as to reflect the net amount
      invested, and any changes in the investment&#146;s market or net asset
      value).</FONT> </P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>4</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE 4</FONT></U></B><B><FONT face=serif size=2><BR></FONT></B><B><U><FONT face=serif size=2>CONTRIBUTIONS AND
BENEFITS</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>4.1</FONT></TD>
    <TD width="100%" colSpan=2><U><FONT face=serif size=2>Benefits</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Participants (or their
      Beneficiaries) will be entitled to benefits from this Plan upon the
      Participant&#146;s Termination of Employment. Benefits will be based upon the
      value of a Participant&#146;s Account, which will reflect credits for (i)
      hypothetical &#147;contributions&#148; made by the Company in an amount equal to a
      Participant&#146;s Elective Deferrals, (ii) hypothetical contributions made by
      the Company in amounts as described in Section 4.3, and</FONT> (iii)
      additional credits (or debits) for the hypothetical investment performance
      of those contributions, as hereinafter described.</P></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="100%" colSpan=2></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>4.2</FONT></TD>
    <TD width="100%" colSpan=2><U><FONT face=serif size=2>Elective
      Deferrals</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>A Participant may file a written
      election with the Company (on a form approved by the Company) to defer
      receipt of any Compensation which the Participant would otherwise be
      entitled to receive from the Company. Except as otherwise provided herein,
      the Participant&#146;s election to defer payment of his Compensation must be
      made at least thirty (30) days before the beginning of the calendar year
      for which the Compensation is payable. If the Participant elects to defer
      any Compensation under this Section 4.2, the election may not be revoked
      during the calendar year in which it was intended to be applicable;
      however, the Participant may revoke and/or re-elect for Compensation that
      may be earned subsequent calendar years.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>4.3</FONT></TD>
    <TD width="100%" colSpan=2><U><FONT face=serif size=2>Company
      Contributions</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><U><FONT face=serif size=2>Initial
      Contribution</FONT></U><FONT face=serif size=2>. On or before December 31,
      2004, the Company credited to the account of each Participant who was
      employed by the Company on January 1, 2004, a sum equal to the aggregate
      amount that the Company would have contributed to such Participant&#146;s SEP
      during the period from January 1 to December 31, 2003 if the Company&#146;s
      contributions to the SEP had not been limited by Code Sections 401(a)(17)
      and 415(c) less the amount actually contributed to such Participant&#146;s SEP
      during such calendar year.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><U><FONT face=serif size=2>Pre-2008 Annual
      Contributions</FONT></U><FONT face=serif size=2>. On or before December 31
      of each calendar year beginning on or after January 1, 2004 but before
      January 1, 2008, the Company credited to the account of each Participant a
      sum equal to the amount that the Company would have contributed to such
      Participant&#146;s SEP during such calendar year if the Company&#146;s contributions
      to the SEP for such calendar year had not been limited by Code Sections
      401(a)(17)and 415(c) less the amount actually contributed to such
      Participant&#146;s SEP during such calendar year.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(c)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><U><FONT face=serif size=2>2008 Annual
      Contributions</FONT></U><FONT face=serif size=2>. On or before March 15,
      2009, the Company will credit to the account of each Participant a sum
      equal to the amount that the Company would have contributed to such
      Participant&#146;s account under the Section 401(k) Plan as Non-Elective
      Company Contributions during such calendar year if Non-Elective Company
      Contributions to the Section 401(k) Plan for such</FONT> calendar year
      2008 had not been limited by Code Sections 401(a)(17), 401(k)(3), 401(m),
      402(g), and 415(c) less the Non-Elective Company Contributions actually
      contributed to such Participant&#146;s account under the Section 401(k) Plan
      during the 2008 calendar year.</P></TD></TR>
  <TR>
    <TD></TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD vAlign=top noWrap>(d)</TD>
    <TD align=left width="100%">
      <P align=justify><U>Cessation of Company Contributions</U><FONT face=serif size=2>. Notwithstanding anything herein to the contrary, no Company
      Contribution shall be made hereunder for calendar years beginning on or
      after January 1, 2009.</FONT> </P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>5</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>4.4</FONT></TD>
    <TD width="100%" colSpan=2><U><FONT face=serif size=2>Crediting Elective
      Contributions to Accounts</FONT></U><FONT face=serif size=2>.</FONT>
</TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Elective Deferrals will be
      credited to a Participant&#146;s Account within fifteen (15) days after the end
      of the month to which the Elective Deferrals relates. No amount shall
      actually be set aside for payment under this Plan, and the existence of
      the Account shall not create and shall not be deemed to create a trust of
      any kind, or fiduciary relationship between the Company and the
      Participant or his Beneficiary.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>4.5</FONT></TD>
    <TD width="100%" colSpan=2><U><FONT face=serif size=2>Taxation</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Amounts credited to a
      Participant&#146;s Account under this Plan are subject to rules of taxation
      (including employment taxes) as may be applicable from time to time. Any
      taxes owing in a year will be deducted from a Participant&#146;s Compensation
      pursuant to rules established by the Committee.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>4.6</FONT></TD>
    <TD width="100%" colSpan=2><U><FONT face=serif size=2>Investment
      Funds</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><U><FONT face=serif size=2>Investment Funds Offered under
      Plan</FONT></U><FONT face=serif size=2>. The Company, in conjunction with
      the advice and recommendations of its investment advisors, shall designate
      one or more investments to be offered under the Plan, and shall provide
      the Participant a list of the mutual funds, stocks, bonds securities or
      other assets into which the Participant&#146;s Account may be deemed
      invested.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><U><FONT face=serif size=2>Change in Investment Funds
      Offered under Plan</FONT></U><FONT face=serif size=2>. In its sole
      discretion, the Company may from time to time, upon advice and
      recommendations by its investment advisors, designate other investment
      funds in addition to or in lieu of the investment funds then being offered
      under the Plan. Any such change in the investment funds offered under the
      Plan may be made without amending the Plan. Any addition or deletion of a
      designated investment fund shall be communicated to the Participant.
      </FONT></P></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="100%"><FONT face=serif size=2></FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(c)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><U><FONT face=serif size=2>Participant&#146;s Choice of
      Funds</FONT></U><FONT face=serif size=2>. The Participant&#146;s choice of the
      investment funds into which an Account is deemed to be invested shall be
      the sole responsibility of the Participant. At the time an individual
      becomes a Participant (or within a short period of time thereafter), he
      may make an initial election regarding such deemed investment funds by
      submitting a completed investment election form to the Plan Administrator
      (in such documents as the Plan Administrator may designate).</FONT>
  </P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>6</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(d)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><U><FONT face=serif size=2>Revised Participant&#146;s
      Elections Regarding Investment Funds</FONT></U><FONT face=serif size=2>.
      The Participant may elect to change the investment funds into which his
      Account is deemed to be invested by completing a new investment election
      form. On such form, the Participant may designate the investment funds
      into which future Elective Deferrals and Company Contributions will be
      deemed to be invested and may change the investment funds into which prior
      Elective Deferrals and Company Contributions are deemed to be invested.
      Such changes shall become effective as soon as administratively feasible
      following the date the investment election form is completed and submitted
      to the Plan Administrator.</FONT> </P></TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(e)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><U><FONT face=serif size=2>Default
      Provision</FONT></U><FONT face=serif size=2>. In the event the Participant
      fails to provide instructions on the investment of his Account, the
      Participant&#146;s Account shall be deemed invested in a money market or
      similar type fund until further instructions are received from the
      Participant.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(f)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><U><FONT face=serif size=2>Investment Performance Not
      Guaranteed</FONT></U><FONT face=serif size=2>. The Participant shall
      assume all risks that the investments attributable to his Account may
      decrease in value when invested in accordance with his investment
      instructions made pursuant to this Section 4.5. Notwithstanding any other
      provision of this Plan to the contrary, the Company shall not be liable to
      the Participant for any decrease in the value of investments attributable
      to the Participant&#146;s Account resulting from his investment selections,
      including, but not be limited to, market value fluctuations,
      administrative fees, sales commissions, and withdrawal or surrender
      penalties/charges.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>4.7</FONT></TD>
    <TD width="100%" colSpan=2><U><FONT face=serif size=2>Company
      Investments</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Any investment the Company may
      actually make in connection with Section 4.5 of the Plan shall at all
      times remain part of the general assets of the Company, within the
      Company&#146;s control and available for any Company purpose, subject to the
      provisions of any Rabbi Trust to which any actual investment is
      transferred; and the rights of Participants and their Beneficiaries will
      remain those of unsecured general creditors of the Company.</FONT>
  </P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>7</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE
5</FONT></U></B><BR><B><U><FONT face=serif size=2>BENEFIT
EVENTS</FONT></U></B></P>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>5.1</FONT></TD>
    <TD width="100%" colSpan=3><U><FONT face=serif size=2>Benefits Following
      Termination of Employment</FONT></U><FONT face=serif size=2>.</FONT>
</TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Upon a Participant&#146;s Termination
      of Employment, the Company will pay benefits to the Participant in the
      amount and manner described in Article 6.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>5.2</FONT></TD>
    <TD width="100%" colSpan=3><U><FONT face=serif size=2>Death
      Benefits</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Prior to his death, a Participant
      shall have the right to designate one or more Beneficiary for the amount
      payable under this Section 5.2.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>If the Participant&#146;s Termination
      of Employment occurs as a result of such Participant&#146;s death, the
      Participant&#146;s Account will be paid to the Participant&#146;s named
      Beneficiary(ies) in a lump sum as described in Section 6.3. Payment will
      occur as soon as may be practicable under procedures established by the
      Plan Administrator.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(c)</FONT></TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Unless the Participant&#146;s
      Beneficiary designation provides to the contrary, the following will apply
      with respect to payments after the Participant&#146;s death:</FONT> </P></TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(i)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>If the primary Beneficiary
      survives the Participant but dies before distribution of the amount
      credited to such Participant&#146;s Account, such amount will be paid to the
      Beneficiary&#146;s estate.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(ii)</FONT></TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>If the primary Beneficiary does
      not survive the Participant, payment will be made to a contingent
      Beneficiary or, if none is named or none survives the Participant, to the
      Participant&#146;s estate.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>5.3</FONT></TD>
    <TD width="100%" colSpan=3><U><FONT face=serif size=2>Payor</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>The Company may pay directly any
      amounts due under the Plan to a Participant or Beneficiary, or it may
      delegate responsibility for payments to a trustee or other third
      party.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>5.4</FONT></TD>
    <TD width="100%" colSpan=3><U><FONT face=serif size=2>One-Time Benefit
      Event</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Notwithstanding any other
      provision to the contrary, a Participant may elect to receive a
      distribution equal to 100% of his Account under the Plan provided that
      such election is (i) in writing; and (ii) received by the Plan
      Administrator no later than December 31, 2008. Such distribution will
      occur on or before January 31, 2009.</FONT> </P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>8</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE 6</FONT></U></B><B><FONT face=serif size=2><BR></FONT></B><B><U><FONT face=serif size=2>VALUATION AND
DISTRIBUTION OF ACCOUNTS</FONT></U></B></P>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>6.1</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Valuation of
      Accounts</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>A Participant&#146;s Account shall be
      valued as of each Valuation Date under procedures established by the Plan
      Administrator.</FONT> </P></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>6.2</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Commencement of
      Benefits</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>Benefits will be paid after the
      Participant&#146;s Benefit Commencement Date, which shall be determined in
      accordance with the terms of Article 5. Notwithstanding any provision
      herein to the contrary, to the extent applicable, in no event shall any
      payment hereunder be made earlier than six months after the date of the
      Participant&#146;s termination of employment with the Company, except in
      connection with the Participant&#146;s death.</FONT> </P></TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>6.3</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Form and Amount of
      Payment</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>A Participant will receive a full
      lump sum payable on or within thirty days after the&nbsp;Participant&#146;s
      Benefit Commencement Date, equal to the Account balance as of the
      Valuation Date immediately preceding the Benefit Commencement Date</FONT>
      </P></TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>6.4</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Deferral of
      Benefits</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>A Participant will have one
      opportunity to postpone the commencement of his benefits for his Account,
      as follows: At least twelve (12) months prior to the date on which
      distribution would otherwise commence, the Participant may elect to
      postpone, but not accelerate, his Benefit Commencement Date to a later
      specified date which may not be earlier than five years after the date on
      which distribution would otherwise commence. Any election which is
      determined, considering the date upon which the Participant terminates or
      is deemed to have terminated under Article 5, to have been made too late,
      and not otherwise in accordance with this Section 6.4 or Section 409A of
      the Code, will be void and without effect.</FONT> </P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>9</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE 7</FONT></U></B><B><FONT face=serif size=2><BR></FONT></B><B><U><FONT face=serif size=2>ADMINISTRATION
AND CLAIMS PROCEDURE</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>7.1</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Administration</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The Plan shall be administered by
      the Board, which shall have the authority, duty and power to interpret and
      construe the provisions of the Plan as the Board deems appropriate
      including the authority to determine eligibility for benefits under the
      Plan. The Board shall have the duty and responsibility of maintaining
      records, making the requisite calculations and disbursing the payments
      hereunder. The interpretations, determinations, regulations and
      calculations of the Board shall be final and binding on all persons and
      parties concerned. Any benefits payable under this Plan will be paid only
      if the Plan Administrator decides in its discretion that the applicant is
      entitled to them.</FONT> </P></TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>7.2</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Expenses; Reliance on
      Third-Parties</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>Expenses of administration shall
      be paid by the Company. The Board shall be entitled to rely on all tables,
      valuations, certificates, opinions, data and reports furnished by any
      actuary, accountant, controller, counsel or other person employed or
      retained by the Company with respect to the Plan.</FONT> </P></TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>7.3</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Annual
      Statements</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The Board shall furnish
      individual annual statements of accrued benefits to each Participant, or
      Beneficiary, in such form as determined by the Board.</FONT> </P></TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>7.4</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Appointment of a
      Conservator</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The Company may from time to time
      establish rules and procedures which it determines to be necessary for the
      proper administration of the Plan and the benefits payable to an
      individual in the event that individual is declared incompetent and a
      conservator or other person legally charged with that individual&#146;s care is
      appointed. Except as otherwise provided herein, when the Company
      determines that such individual is unable to manage his or her financial
      affairs, the Company may pay such individual&#146;s benefits to such
      conservator, person legally charged with such individual&#146;s care, or
      institution then contributing toward or providing for the care and
      maintenance of such individual. Any such payment shall constitute a
      complete discharge of any liability of the Company and the Plan for such
      individual.</FONT> </P></TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>7.5</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Limitation of
      Liability</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>Notwithstanding any provision
      herein to the contrary, neither the Company nor any individual acting as
      an employee or agent of the Company shall be liable to any Participant,
      former Participant, designated Beneficiary, or any other person for any
      claim, loss, liability or expense incurred in connection with the Plan,
      unless attributable to fraud or willful misconduct on the part of the
      Company or any such employee or agent of the Company.</FONT>
  </P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>10</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>7.6</FONT></TD>
    <TD width="100%" colSpan=3><U><FONT face=serif size=2>Claims for
      Benefits</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD noWrap></TD>
    <TD width="100%" colSpan=3><FONT face=serif size=2>All claims for benefits
      shall be handled through the following procedure:</FONT> </TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif size=2>Claim</FONT></U><FONT face=serif size=2>. A person who believes that he is being denied a
      benefit to which he is entitled under the Plan (hereinafter referred to as
      a &#147;Claimant&#148;) may file a written request for such benefit with the
      Company, setting forth his claim. The request must be addressed to the
      Plan Administrator at the Company&#146;s then principal place of
      business.</FONT> </P></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif size=2>Claim Decision</FONT></U><FONT face=serif size=2>. Upon receipt of a claim, the Plan Administrator shall
      advise the Claimant that a reply will be forthcoming within ninety (90)
      days and shall, in fact, deliver such reply within such period. The Plan
      Administrator may, however, extend the reply period for an additional
      ninety (90) days for reasonable cause.</FONT> </P></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD noWrap></TD>
    <TD align=left width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>If the claim is denied in whole
      or in part, the Plan Administrator shall adopt a written opinion, using
      language calculated to be understood by the Claimant, setting
      forth:</FONT> </P></TD></TR>
  <TR>
    <TD noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(i)</FONT></TD>
    <TD vAlign=top align=left width="100%">
      <P align=justify>The specific reason or reasons for such denial;</P></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap>(ii)</TD>
    <TD vAlign=top align=left width="100%">
      <P align=justify>The specific reference to pertinent provisions of this
      Agreement on which such denial is based; </P></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(iii)</FONT></TD>
    <TD vAlign=top align=left width="100%">
      <P align=justify>A description of any additional material or information
      necessary for the Claimant to perfect his claim and an explanation why
      such material or such information is necessary;</P></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(iv)</FONT></TD>
    <TD vAlign=top align=left width="100%">
      <P align=justify>Appropriate information as to the steps to be taken if
      the Claimant wishes to submit the claim for review; and</P></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(v)</FONT></TD>
    <TD vAlign=top align=left width="100%">
      <P align=justify>The time limits for requesting a review under Section
      7.6(c) and for review under Section 7.6(d).</P></TD></TR>
  <TR>
    <TD width="100%" colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(c)</FONT></TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif size=2>Request for
      Review</FONT></U><FONT face=serif size=2>. Within sixty (60) days after
      the receipt by the Claimant of the written opinion described above, the
      Claimant may request in writing that the Assistant Secretary of the
      Company review the determination of the Company. Such request must be
      addressed to the Assistant Secretary of the Company, at its then principal
      place of business. The Claimant or his duly authorized representative may,
      but need not, review the pertinent documents and submit issues and
      comments in writing for consideration by the Company. If the Claimant does
      not request a review of the Company&#146;s determination by the Assistant
      Secretary of the Company within such sixty (60) day period, he shall be
      barred and estopped from challenging the Company&#146;s
      determination.</FONT></P></TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD noWrap>&nbsp;</TD>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(d)</FONT></TD>
    <TD align=left width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif size=2>Review of
      Decision</FONT></U><FONT face=serif size=2>. Within sixty (60) days after
      the Assistant Secretary&#146;s receipt of a request for review, he will review
      the Company&#146;s determination. After considering all materials presented by
      the Claimant, the Assistant Secretary will</FONT> render a written
      opinion, written in a manner calculated to be understood by the Claimant,
      setting forth the specific reasons for the decision and containing
      specific references to the pertinent provisions of this Agreement on which
      the decision is based. If special circumstances require that the sixty
      (60) day time period be extended, the Assistant Secretary will so notify
      the Claimant and will render the decision as soon as possible, but no
      later than one hundred twenty (120) days after receipt of the request for
      review.</P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>11</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE
8</FONT></U></B><BR><B><U><FONT face=serif size=2>FUNDING</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>8.1</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>In General</FONT></U><FONT face=serif size=2>.</FONT></TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="100%">
      <P><FONT face=serif size=2>This Plan is unfunded. The rights of a
      Participant or Beneficiary are those of an unsecured general creditor of
      the Company. In general, benefits will be paid by the Company from its
      general assets when due.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The Company, in its sole
      discretion, shall decide whether or not to underwrite its obligations
      under the Plan by actually investing amounts equal to the Company
      contributions in any investment vehicle. If the Company decides to invest
      its contributions, no Participant or Beneficiary will have any interest in
      those actual investments, even if those actual investments correspond to
      the Plan&#146;s hypothetical investments, and even if the amounts invested
      correspond to the amounts of the Company&#146;s hypothetical Plan
      contributions. Any investment the Company makes in connection with the
      Plan shall at all times remain part of the general assets of the Company,
      subject to the provisions of any Rabbi Trust to which any actual
      investment is transferred; and the rights of Participants and their
      Beneficiaries will remain those of unsecured general creditors of the
      company.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>Participants and their
      Beneficiaries, heirs, successors, and assigns shall have no legal or
      equitable rights, claims, or interests in any specific property or assets
      of the Company, including any investments actually acquired in connection
      with the Company&#146;s obligations under the Plan, except as may be provided
      for in a Rabbi Trust which the Company may choose to establish, as
      provided for in Section 8.2. No life insurance policy(ies) or other
      asset(s) of the Company shall be held by the Company, or by any other
      person or entity, in a fiduciary capacity, under any trust expressed or
      implied, for the benefit of Participants, their Beneficiaries, heirs,
      successors, or assigns (other than under a Rabbi Trust), or shall be held
      as collateral security for the fulfillment of the obligations of the
      Company under this Plan. Any and all of the Company&#146;s assets, including
      such Policies, shall be, and remain, the general, unpledged, unrestricted
      assets of the Company.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>Whether or not the Company sets
      aside assets in a Rabbi Trust in connection with this Plan, the Company&#146;s
      obligation under the Plan shall be merely that of an unfunded and
      unsecured promise of the Company to pay money in the future.</FONT>
  </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>8.2</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Rabbi Trust</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The Company may transfer cash,
      life insurance policies or any other assets to a Rabbi Trust which it may
      establish in connection with the Plan.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>In that event, Plan benefits may
      be paid, in the absolute discretion of the Company, from the Company&#146;s
      other general assets, or from assets held in the Rabbi Trust.</FONT>
    </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>In the event that assets are
      placed in a Rabbi Trust, those assets shall remain available to general
      creditors of the Company in the event of its insolvency.</FONT>
  </P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>12</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE 9</FONT></U></B><B><FONT face=serif size=2><BR></FONT></B><B><U><FONT face=serif size=2>AMENDMENT,
TERMINATION AND CHANGE OF CONTROL</FONT></U></B><B><FONT face=serif size=2>
</FONT></B></P>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>9.1</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Amendment or
      Termination</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The Company reserves the right to
      amend, modify, suspend or terminate this Plan in whole or in part at
      anytime by action of its Board, to the extent permitted under Section 409A
      of the Code. No amendment shall reduce the Account credited to a
      Participant under this Plan as of the amendment date, except to the extent
      that the Participant agrees in writing to such a reduction.</FONT>
  </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>9.2</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Change of
      Control</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>Following a Change of Control (as
      that term is defined in the Employment Agreement), the Plan shall be
      continued by the surviving entity, and the participant&#146;s rights under this
      Plan shall not be impaired without the consent of the Participant.</FONT>
      </P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>13</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE
10</FONT></U></B><BR><B><U><FONT face=serif size=2>GENERAL
PROVISIONS</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.1</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Payment to Minors and
      Incompetents</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>If any Participant or Beneficiary
      entitled to receive any benefits hereunder is a minor or is deemed by the
      Plan Administrator, or adjudged to be, legally incapable of giving valid
      receipt and discharge for benefits received, benefits will be paid to such
      person or institution as the Plan Administrator may designate or to the
      duly appointed guardian of the Participant or Beneficiary, as the case may
      be. Any payment so made shall be deemed to be in complete discharge of the
      Participant or Beneficiary&#146;s right to such payment under the Plan.</FONT>
      </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.2</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>No Contract</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>This Plan shall not be deemed to
      create a contract of employment with any Participant, nor shall any
      provision of the Plan alter in any way the rights and responsibilities of
      the Company or any Participant under any employment agreement entered into
      by the Company and a Participant.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.3</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Use of Masculine and Feminine;
      Singular and Plural</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>Wherever used in this Plan, the
      masculine gender will include the feminine gender and the singular will
      include the plural, unless the context indicates otherwise.</FONT>
  </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.4</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Non-Alienation of
      Benefits</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>No amount payable to, or held
      under the Plan for the account of, any Participant or Beneficiary shall be
      subject in any manner to alienation, sale, transfer, assignment, pledge,
      encumbrance, or charge, and any attempt to so anticipate, alienate, sell,
      transfer, assign, pledge, encumber, or charge the same shall be void. Nor
      shall any amount payable to, or held under the Plan for the account of,
      any Participant or Beneficiary be in any manner liable for his debts,
      contracts, liabilities, engagements, or torts, or be subject to any legal
      process to levy upon or attach.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.5</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Protective
      Provisions</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>Each Participant shall cooperate
      with the Company by furnishing any and all information requested by the
      Company in order to facilitate the payment of benefits hereunder, taking
      such physical examination as the Insurer may require and such other
      relevant action as may be requested by the Plan Administrator. If a
      Participant refuses to cooperate with any requirements reasonably imposed,
      the Company shall have no further obligation to the Participant under the
      Plan, other than payment to the Participant of the cumulative amounts
      previously deferred by the Participant under the Plan.</FONT>
  </P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>14</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE style="FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.6</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Governing Law</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The provisions of the Plan shall
      be interpreted, construed, and administered in accordance with the laws of
      the State of North Carolina, except to the extent federal law (including,
      but not limited to, ERISA) applies. ERISA will govern all issues and
      matters relating to the Plan and shall preempt all state laws relating to
      the Plan.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.7</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Captions</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The captions contained in the
      Plan are inserted only as a matter of convenience and for reference and in
      no way define, limit, enlarge, or describe the scope or intent of the Plan
      nor in any way affect the construction of any provision of the
      Plan.</FONT> </P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.8</FONT></TD>
    <TD width="100%"><U><FONT face=serif size=2>Compliance with Section 409A
      of the Code</FONT></U><FONT face=serif size=2>.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align=left width="100%">
      <P align=justify><FONT face=serif size=2>The Plan is intended to comply
      with Section 409A of the Code. Notwithstanding any provision of the Plan
      to the contrary, the Plan shall be interpreted, operated and administered
      in a manner consistent with this intent.</FONT> </P></TD></TR></TABLE>
<P align=left><B><FONT face=serif size=2>EXECUTED </FONT></B><FONT face=serif size=2>this ______ day of _____________, 2008 by the Company&#146;s duly empowered
officer.</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="5%"></TD>
    <TD vAlign=top width="44%"></TD>
    <TD vAlign=top noWrap width="2%"></TD>
    <TD vAlign=top width="49%" colSpan=2>
      <P align=left><FONT face=serif size=2>INVESTORS TITLE INSURANCE
      COMPANY</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="5%"></TD>
    <TD vAlign=top width="44%"></TD>
    <TD vAlign=top noWrap width="2%"></TD>
    <TD vAlign=top width="49%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><FONT size=2>ATTEST:</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width="44%">&nbsp;</TD>
    <TD style="PADDING-LEFT: 15pt" vAlign=top noWrap width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width="49%" colSpan=2></TD></TR>
  <TR>
    <TD vAlign=top width="49%" colSpan=2></TD>
    <TD style="PADDING-LEFT: 15pt" vAlign=top noWrap width="2%"></TD>
    <TD vAlign=top width="49%" colSpan=2><FONT size=2>Signature</FONT></TD></TR>
  <TR>
    <TD vAlign=top width="49%" colSpan=2></TD>
    <TD vAlign=top noWrap width="2%"></TD>
    <TD vAlign=top width="2%"></TD>
    <TD vAlign=top width="47%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="49%" colSpan=2></TD>
    <TD vAlign=top noWrap width="2%"></TD>
    <TD vAlign=top width="2%"><FONT size=2>Title&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width="47%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="49%" colSpan=2></TD>
    <TD vAlign=top noWrap width="2%"></TD>
    <TD vAlign=top width="2%"></TD>
    <TD vAlign=top width="47%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="49%" colSpan=2></TD>
    <TD style="PADDING-LEFT: 15pt" vAlign=top noWrap width="2%"></TD>
    <TD vAlign=top width="2%"><FONT size=2>Date</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top width="47%">&nbsp;</TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>15</FONT></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.XIV
<SEQUENCE>14
<FILENAME>exhibit10-xiv.htm
<DESCRIPTION>AMENDED AND RESTATED NONQUALIFIED SUPPLEMENTAL RETIREMENT BENEFIT PLAN
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
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<DIV align=center><IMG src="investorstitlex1x1.jpg" border=0></DIV>
<P align=center><B><FONT face=serif size=2>NONQUALIFIED SUPPLEMENTAL RETIREMENT
BENEFIT PLAN </FONT></B></P>
<P align=center><B><FONT face=serif size=2>As Amended and Restated Effective
January 1, 2009 </FONT></B></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=2>TABLE OF CONTENTS </FONT></B></P>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" colSpan=4></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="1%"><B><FONT face=serif size=2>Page</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0 colSpan=4><FONT face=serif size=2>PREAMBLE</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%" colSpan=4>&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0 colSpan=4><FONT face=serif size=2>Article 1 DEFINITIONS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT style="BACKGROUND-COLOR: #c0c0c0" size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>1.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#0c0c0c size=2>&#147;Account&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#0c0c0c size=2>&#147;Base Salary&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>1.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#0c0c0c size=2>&#147;Beneficiary&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#0c0c0c size=2>&#147;Benefit Commencement Date&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>1.5</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#0c0c0c size=2>&#147;Board&#148; </FONT><FONT face=serif size=2>or &#147;Board of
      Directors&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1.6</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#0c0c0c size=2>&#147;Bonus Compensation&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>1.7</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#0c0c0c size=2>&#147;Cause&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1.8</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#0c0c0c size=2>&#147;Code&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>1.9</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#0c0c0c size=2>&#147;Committee&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>2</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1.10</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#0c0c0c size=2>&#147;Company&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>1.11</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#0c0c0c size=2>&#147;Effective Date&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1.12</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#0c0c0c size=2>&#147;Eligible Employee&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>1.13</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#0c0c0c size=2>&#147;Employment Agreement&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1.14</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>&#147;Employment Period&#148;</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>1.15</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#0c0c0c size=2>&#147;Participant&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1.16</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#0c0c0c size=2>&#147;Plan&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>1.17</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#0c0c0c size=2>&#147;Plan Administrator&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1.18</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#0c0c0c size=2>&#147;Plan Year&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>1.19</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#0c0c0c size=2>&#147;Rabbi Trust&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1.20</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#0c0c0c size=2>&#147;Schedule&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>1.21</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#0c0c0c size=2>&#147;Termination of Employment&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>3</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1.22</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#0c0c0c size=2>&#147;Valuation Date&#148;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%" bgColor=#ffffff colSpan=4>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0 colSpan=4><FONT face=serif size=2>Article 2 PARTICIPATION</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>4</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>2.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Eligible Class</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>4</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>2.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Commencement of Participation</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>4</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%" colSpan=4>&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0 colSpan=4><FONT face=serif size=2>Article 3 ESTABLISHMENT OF ACCOUNTS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>5</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>3.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif size=2>Accounts</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>5</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Credits and Debits to Accounts</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>5</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%" bgColor=#ffffff colSpan=4>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0 colSpan=4><FONT face=serif size=2>Article 4 CONTRIBUTIONS AND BENEFITS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>6</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>4.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Benefits</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>6</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>4.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>Contributions</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>6</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>4.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Changes in Base Salary and/or Base
    Compensation</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>6</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>4.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Crediting of Contributions</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>6</FONT></TD></TR></TABLE>
<BR>
<P align=center><FONT face=serif size=2>i </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>4.5</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>Taxation</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>6</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>4.6</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="95%"><FONT face=serif color=#191919 size=2>Deemed Investment of Contributions</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>7</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>4.7</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Company Investments</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>7</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%" colSpan=4>&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0 colSpan=4><FONT face=serif size=2>Article 5 BENEFIT EVENTS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>8</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>5.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Benefits Following Retirement and Certain Other
      Events</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>8</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>5.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Benefits Following a Termination for
    Disability</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>8</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>5.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Death Benefits</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>8</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>5.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>Payor</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>9</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>5.5</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif size=2>One-Time Benefit Event</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>9</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%" colSpan=4>&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0 colSpan=4><FONT face=serif size=2>Article 6 VALUATION AND DISTRIBUTION OF
    ACCOUNTS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>10</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>6.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Valuation of Accounts</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>10</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>6.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Commencement of Benefits</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>10</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>6.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Form and Amount of Payment Options</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>10</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>6.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Election of Payment Options and Deferral of
      Benefits</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>11</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%" bgColor=#ffffff colSpan=4>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0 colSpan=4><FONT face=serif size=2>Article 7 ADMINISTRATION AND CLAIMS PROCEDURE</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>12</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>7.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif size=2>Administration</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>12</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>7.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Expenses; Reliance on Third Parties</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>12</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>7.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Annual Statements</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>12</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>7.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Appointment of a Conservator</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>12</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>7.5</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Limitation of Liability</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>12</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>7.6</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Claims for Benefits</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>13</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%" colSpan=4>&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0 colSpan=4><FONT face=serif size=2>Article 8 FUNDING</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>14</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>8.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>In General</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>14</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>8.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Rabbi Trust</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>14</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%" bgColor=#ffffff colSpan=4>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0 colSpan=4><FONT face=serif size=2>Article 9 AMENDMENT, TERMINATION AND CHANGE OF
      CONTROL</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>9.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Amendment or Termination</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>15</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>9.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Change of Control</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>15</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="98%" colSpan=4>&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0 colSpan=4><FONT face=serif size=2>Article 10 GENERAL PROVISIONS</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>16</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>10.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Payment to Minors and Incompetents</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>16</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>10.2</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>No Contract</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>16</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>10.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Use of Masculine and Feminine; Singular and
      Plural</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>16</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>10.4</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Non-Alienation of Benefits</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>16</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>10.5</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Protective Provisions</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>16</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>10.6</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif color=#191919 size=2>Governing Law</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>16</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=serif size=2>10.7</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#ffffff><FONT face=serif color=#191919 size=2>Captions</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=serif size=2>17</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>10.8</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face=serif size=2>Compliance with Section 409A of the Code</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>17</FONT></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>ii </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>PREAMBLE</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<P align=justify><FONT face=serif size=2>Investors Title Insurance Company (the
&#147;Company&#148;) previously established a non-qualified deferred compensation plan
referred to as the Investors Title Insurance Company Non-qualified Supplemental
Retirement Benefit Plan (the &#147;Plan&#148;), originally effective November 17, 2003.
The Company is amending and restating the Plan effective January 1, 2009 as set
forth herein to (i) reflect certain design changes to the Plan, (ii) provide for
the Plan&#146;s documentary compliance with the requirements of Section 409A of the
Code, and (iii) otherwise meet current needs. </FONT></P>
<P align=justify><FONT face=serif size=2>The purpose of this Plan is to provide
additional retirement benefits to Eligible Employees on a non-qualified,
tax-deferred basis. This Plan shall be unfunded and maintained primarily for the
purpose of providing deferred compensation for a select group of management or
highly compensated employees within the meaning of Sections 201(2), 301(a)(3)
and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended
(&#147;ERISA&#148;). The Plan is intended to be effective with respect to Compensation
earned after October 1, 2003.</FONT></P>
<P align=justify><FONT face=serif size=2>Benefits are based upon hypothetical
Company contributions credited to Participant &#147;Accounts&#148;.</FONT></P>
<P align=justify><FONT face=serif size=2>It is intended that funds accumulated
under this Plan on a Participant&#146;s behalf will be paid to the Participant at a
specified future date determined under procedures described herein, or upon
disability or Termination of Employment. The Participant may select a lump sum,
or from among other payment options for Plan benefits. Upon the Participant&#146;s
death, the Participant&#146;s remaining Account balance, if any, will be paid to the
Participant&#146;s named Beneficiary.</FONT></P>
<P align=justify><FONT face=serif size=2>Account balances resulting from
employer contributions may be credited with interest, at a rate determined by
the Company, or with amounts reflecting and corresponding to the performance
(i.e., income, gains, losses, etc.) of a designated security or index. Further,
the Company may choose to set aside assets relating to Plan obligations in a
Rabbi Trust, the corpus of which will be available to the Company&#146;s creditors in
the event of bankruptcy. However, the Company is under no obligation to invest
amounts deemed contributed to the Plan or to set aside funds in a Rabbi Trust.
In all cases, the Company may elect to pay the benefits promised hereunder from
other general assets. Notwithstanding the fact that the Company may set aside
assets in respect of its obligations under the Plan, the Plan is unfunded and
the rights of Participants and Beneficiaries are limited to those of general,
unsecured creditors of the Company.</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE 1</FONT></U></B><B><FONT face=serif size=2><BR></FONT></B><B><U><FONT face=serif size=2>DEFINITIONS</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<P align=left><FONT face=serif size=2>The following words and phrases when used
in the Plan shall have the following meanings, unless a different meaning is
plainly required by the context:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.1</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Account</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means the
      bookkeeping account established for the measurement of the Company&#146;s
      accumulated liability to a Participant under the Plan. Each Participant&#146;s
      Account will reflect the undistributed balance to the credit of the
      Participant, representing accumulated Company Plan contributions, and the
      hypothetical investment earnings, gains and losses credited to the Account
      under the terms of the Plan.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.2</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Base Salary</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>has the meaning
      given to it in Section 3 of the Employment Agreement.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.3</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Beneficiary</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means the person,
      persons or trust designated by the Participant or former Participant to
      receive benefits under the Plan in the event of the Participant&#146;s death
      prior to the full distribution of his Account. A Participant shall
      designate his Beneficiary or Beneficiaries in writing under the specific
      procedures as shall be established by the Plan Administrator. A
      Participant may change his Beneficiaries at any time by delivering written
      instructions to the Plan Administrator. In the event a Participant dies
      without a valid designation of Beneficiary in effect, the Participant&#146;s
      remaining Account shall be payable to his spouse or, if the Participant is
      not married at the time of death, to his estate.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.4</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Benefit Commencement Date</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means the
      date upon which the Participant&#146;s Termination of Employment occurs or is
      deemed to occur in accordance with the provisions of Article 4 and after
      which the distribution of benefits to the Participant will commence in
      accordance with the provisions of Article 4 and Article
5.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.5</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Board&#148; </FONT></U><U><FONT face=serif size=2>or &#147;Board of Directors</FONT></U><FONT face=serif size=2>&#148; means
      the Board of Directors of Investors Title Insurance
  Company.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.6</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Bonus Compensation</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>has the
      meaning given to it in Section 3 of the Employment
  Agreement.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.7</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Cause</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>has the meaning
      given in Section 4 of the Employment Agreement.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.8</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Code</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means the Internal
      Revenue Code of 1986, as amended from time to time, and any regulations
      issued thereunder. Reference to any section of the Code shall include any
      successor provision thereto.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.9</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Committee</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means the
      Compensation Committee of Investors Title Company or such other person or
      persons designated by the Company to determine the eligibility of
      employees for participation in the Plan in accordance with the provisions
      of Article 2, and to provide oversight to the administration of the plan
      in accordance with Article 7.</FONT></P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>2 </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=serif size=2>1.10</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Company</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means Investors
      Title Insurance Company, a North Carolina corporation, and its successor
      or successors. The Company is a wholly-owned subsidiary of Investors Title
      Company.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.11</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Effective Date</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means November 17,
      2003.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.12</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Eligible Employee</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means an
      employee of the Company who is included in the eligible class described in
      Section 2.1, and who is listed on the Schedule.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.13</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Employment Agreement</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means the
      agreement, as amended from time to time, entered into between an Eligible
      Employee and the Company, which contains the certain defined terms used
      herein along with the general terms and conditions of the Eligible
      Employee&#146;s employment.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.14</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Employment Period</FONT></U><FONT face=serif size=2>&#148; has the
      meaning given to it in Section 1 of the Employment
  Agreement.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.15</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Participant</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means an Eligible
      Employee for whom an Account is being maintained under the terms of the
      Plan.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.16</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Plan</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means the Investors
      Title Insurance Company Non-Qualified Supplemental Retirement Benefit Plan
      as set forth in this document and as amended from time to
    time.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.17</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Plan Administrator</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means the
      Company.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.18</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Plan Year</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means each calendar
      year commencing January 1, 2004 and thereafter.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.19</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Rabbi Trust</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means, for the
      purposes of this Plan, a grantor trust under Subpart E of Subchapter J of
      Chapter I of the Code established by an employer in connection with a
      nonqualified deferred compensation or supplemental retirement benefit
      plan, the assets of which may be reached by the employer grantor&#146;s general
      creditors.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.20</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Schedule</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means the document
      which lists the Eligible Employees who are Participants in the Plan, as
      such Schedule is amended from time to time.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.21</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Termination of Employment</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means any
      termination of the employee/employer relationship between a Participant
      and the Company for </FONT><FONT face=serif size=2><U>any</U> </FONT><FONT face=serif size=2>reason including the Participant&#146;s Retirement, death,
      Termination for Disability, Termination for Cause, Termination without
      Cause, Termination for Good Reason or termination following a Change in
      Control, as such terms are defined in the Employment Agreement. For
      purposes of the Plan, whether a &#147;Termination of Employment&#148; has occurred
      shall be determined in a manner consistent with the requirements of
      Section 409A of the Code and the Company&#146;s 409A Policy, if
    any.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.22</FONT></TD>
    <TD vAlign=top width="100%"><FONT face=serif color=#0c0c0c size=2>&#147;</FONT><U><FONT face=serif color=#0c0c0c size=2>Valuation
      Date</FONT></U><FONT face=serif color=#0c0c0c size=2>&#148; </FONT><FONT face=serif size=2>means the last day of each calendar quarter, and is the
      date on which Participant Account values are
  determined.</FONT></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>3</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<P align=center><B><U><FONT face=serif size=2>ARTICLE 2</FONT></U></B><B><FONT face=serif size=2><BR></FONT></B><B><U><FONT face=serif size=2>PARTICIPATION</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<P align=center>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top width="1%"><FONT size=2>2.1</FONT></TD>
    <TD vAlign=top width="98%" colSpan=2><FONT size=2><U>Eligible
      Class</U><FONT face=serif>.</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="97%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="1%"><FONT size=2>(a)</FONT></TD>
    <TD vAlign=top width="97%">
      <P align=justify><FONT size=2>Except as provided in (b) and (c) below, an
      individual who is employed by the Company is an Eligible Employee with
      respect to a particular Plan Year only if he is both (i) within a select
      group of management or highly compensated Employees within the meaning of
      Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, as determined by the
      Committee in its sole discretion, and (ii) identified by the Company as an
      Eligible Employee and listed in the Schedule A, attached
    hereto.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="97%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="1%">&nbsp;</TD>
    <TD vAlign=top width="1%"><FONT size=2>(b)</FONT></TD>
    <TD vAlign=top width="97%">
      <P align=justify><FONT size=2>Each Eligible Employee must cooperate with
      the Company by furnishing any and all information requested by the Company
      in order to facilitate the payment of benefits hereunder. Notwithstanding
      any provision in the Plan to the contrary, an individual who would
      otherwise be eligible to receive benefits under the Plan shall
      nevertheless be considered ineligible, and may be barred by the Company
      from participation in the Plan, (i) if he refuses to cooperate with any
      requirement which the Committee or Plan Administrator may reasonably
      impose; or (ii) if the Company chooses, in its discretion, to purchase one
      or more life insurance policies on the life of the individual in
      connection with its obligations under this plan, and the individual fails
      to submit a complete and accurate application in connection with the
      acquisition of the policy(ies), or fails to submit to any physical
      examination that the insurer may require, or fails to provide any other
      information that the insurer or Plan Administrator may reasonably request
      or to comply with any other requirement which the insurer may reasonably
      impose.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="97%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="1%"><FONT size=2>2.2</FONT></TD>
    <TD vAlign=top width="98%" colSpan=2><FONT size=2><U><FONT color=#191919>Commencement of Participation</FONT></U><FONT face=serif>.</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top width="1%">&nbsp;</TD>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="97%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="1%"></TD>
    <TD vAlign=top width="98%" colSpan=2>
      <P align=justify><FONT size=2>Each Eligible Employee shall first become a
      Participant as of the initial pay period for the first Plan Year following
      the date upon which he is first determined by the Committee to be an
      Eligible Employee.</FONT></P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>4 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE
3<BR></FONT></U></B><B><U><FONT face=serif size=2>ESTABLISHMENT OF
ACCOUNTS</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap align=left><FONT face=serif size=2>3.1</FONT></TD>
    <TD width="100%" colSpan=2><U><FONT face=serif size=2>Accounts</FONT></U><FONT face=serif size=2>.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD width="100%" colSpan=2></TD></TR>
  <TR>
    <TD align=left>&nbsp;</TD>
    <TD width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>The Plan Administrator will
      establish and maintain separate memorandum Accounts for each Participant,
      for bookkeeping purpose only, which will be used to measure the amount of
      the Company&#146;s liability to each Participant and Beneficiary under this
      Plan.</FONT></P></TD></TR>
  <TR>
    <TD align=left colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left><FONT face=serif size=2>3.2</FONT></TD>
    <TD width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif color=#191919 size=2>Credits and
      Debits to Accounts</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>The Plan Administrator will, as
      often and as soon as may be reasonable and practicable, make such
      adjustments to the Accounts, by credit (addition) or debit (reduction), as
      may be necessary and/or appropriate to reflect:</FONT></P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Company
    contributions,</FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>any accrued interest (if Company
      contributions are deemed to be invested at interest), and</FONT></P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(c)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>any income and/or expense, and
      any gain or loss (i.e., increase or decrease, whether realized or
      unrealized), associated with any other investment(s) in which the
      contributions are deemed be invested, so that the balance of any portion
      of the Account that is deemed to be invested will be adjusted in the same
      manner and amount that it would have been adjusted had the Account
      investment actually been made (i.e., so as to reflect the net amount
      invested, and any changes in the investment&#146;s market or net asset
      value).</FONT></P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR></TABLE>
<P align=center><FONT face=serif size=2>5 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE
4<BR></FONT></U></B><B><U><FONT face=serif size=2>CONTRIBUTIONS AND
BENEFITS</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap align=left><FONT face=serif size=2>4.1</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2><U><FONT face=serif color=#191919 size=2>Benefits</FONT></U><FONT face=serif size=2>.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%" colSpan=2></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left>&nbsp;</TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Participants (or their
      Beneficiaries) will be entitled to benefits from this Plan upon the
      Participant&#146;s Termination of Employment for any reason. Benefits will be
      based upon the value of a Participant&#146;s Account, which will reflect
      credits for hypothetical &#147;contributions&#148; made by the Company, as well as
      additional credits (or debits) for the hypothetical investment performance
      of those Plan contributions, as hereinafter described.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top align=left width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left><FONT face=serif size=2>4.2</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2><U><FONT face=serif size=2>Contributions</FONT></U><FONT face=serif size=2>.</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left>&nbsp;</TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>For each calendar quarter during
      the Employment Period, the Company shall make a contribution on the
      Participant&#146;s behalf to the Plan in an amount equal to twenty-two percent
      (22%) of the Participant&#146;s Base Salary and Bonus Compensation paid during
      such calendar quarter. Notwithstanding the foregoing, however, if the
      Participant has a Termination of Employment before the Company has
      contributed said amount for twenty (20) calendar quarters, then in such
      event the Company shall make a lump sum contribution to the Plan equal to
      the number of calendar quarters less than twenty (20), using as a base for
      determining such amount twenty-two percent (22%) of the Participant&#146;s Base
      Salary and Bonus Compensation for the twelve (12) months preceding the
      Termination of Employment. After the Company has contributed to the Plan
      an amount equal to twenty-two percent (22%) of the Participant&#146;s Base
      Salary and Bonus Compensation paid during the calendar quarter for twenty
      (20) calendar quarters, the Company, in its sole discretion, may determine
      the amount, if any, contributed for subsequent calendar quarters during
      the Employment Period.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top align=left width="100%" colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left><FONT face=serif size=2>4.3</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif color=#191919 size=2>Changes in Base
      Salary and/or Base Compensation</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top align=left width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left>&nbsp;</TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>The rate of Company contribution
      shall continue in effect for the Employment Period to which it applies,
      notwithstanding any change in the Participant&#146;s Base Salary and Bonus
      Compensation which may occur during such year.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top align=left width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left><FONT face=serif size=2>4.4</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2><U><FONT face=serif color=#191919 size=2>Crediting of Contributions</FONT></U><FONT face=serif size=2>.</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left>&nbsp;</TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Company contributions to the Plan
      will be credited to a Participant&#146;s Account within ten (10) days after the
      end of the calendar quarter to which the contribution relates. No amount
      shall actually be set aside for payment under this Plan, and the existence
      of the Account shall not create and shall not be deemed to create a trust
      of any kind, or fiduciary relationship between the Company and the
      Participant or his Beneficiary.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2></FONT></TD>
    <TD vAlign=top width="100%"><FONT face=serif size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left><FONT face=serif size=2>4.5</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2><U><FONT face=serif size=2>Taxation</FONT></U><FONT face=serif size=2>.</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left>&nbsp;</TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Amounts credited to a
      Participant&#146;s account under this Plan are subject to rules of taxation
      (including employment taxes) as may be applicable from time to time. Any
      taxes owing in a year will be deducted from a Participant&#146;s Base Salary
      and/or Bonus Compensation pursuant to rules established by the
      Committee.</FONT></P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>6 </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=serif size=2>4.6</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Deemed
      Investment of Contributions</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%"></TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Solely for the purpose of
      measuring the Company&#146;s liability to a Participant under the Plan, Company
      contributions credited to Participant Accounts will be deemed invested as
      the Participant/Committee shall from time to time determine. Credits to
      Participant Accounts for hypothetical investment performance will, if
      amounts are deemed invested at interest, be based upon a rate of interest
      determined by the Board from time to time. Otherwise, such credits (or
      debits) will be based upon the performance of a security, index or other
      investment (or upon any other method) determined by the Committee and
      specified in an Appendix to this Plan, which will be amended, as
      appropriate, to reflect any change in the investment made by the
      Committee.</FONT> </P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>4.7</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Company
      Investments</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The Company, in its sole
      discretion, shall decide whether or not to underwrite its obligations
      under the Plan by actually investing its hypothetical contributions. If
      the Company decides to invest any amounts, Plan Participants and
      Beneficiaries shall have no interest (other than those of unsecured
      general creditors) in such actual investments even if they correspond to
      the securities, index or other hypothetical investments used for the
      measurement of Plan benefits. Any investment the Company may actually make
      in connection with the Plan shall at all times remain part of the general
      assets of the Company, within the Company&#146;s control and available for any
      Company purpose, subject to the provisions of any Rabbi Trust to which any
      actual investment is transferred; and the rights of Participants and their
      Beneficiaries will remain those of unsecured general creditors of the
      Company.</FONT></P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>7 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE 5</FONT></U></B><B><FONT face=serif size=2><BR></FONT></B><B><U><FONT face=serif size=2>BENEFIT
EVENTS</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap align=left><FONT face=serif size=2>5.1</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif color=#191919 size=2>Benefits
      Following Retirement and Certain Other Events</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%" colSpan=2></TD></TR>
  <TR>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Upon a Participant&#146;s Termination
      of Employment for any reason other than as a result of such Participant&#146;s
      Termination for Disability (as that term is defined in the Employment
      Agreement) or death, the Company will pay benefits to the Participant (or
      his Beneficiary) in the amount and manner described in Article
      6.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top align=left colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left><FONT face=serif size=2>5.2</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif color=#191919 size=2>Benefits
      Following a Termination for Disability</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top align=left colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD vAlign=top width="100%"><P align=justify><FONT face=serif size=2>In the event that a
      Participant&#146;s Termination of Employment is the result of such
      Participant&#146;s Termination for Disability (as that term is defined in the
      Employment Agreement), such Participant&#146;s Termination of Employment will
      be deemed to have occurred on the date specified by the Board in
      accordance with Section 409A of the Code and the Company&#146;s 409A Policy, if
      any, and the Company will pay benefits to the Participant (or his
      Beneficiary) in the amount and manner as described in Article
    6.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top align=left></TD>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD vAlign=top width="100%"><P align=justify><FONT face=serif size=2>For the purpose of
      this Article, subject to Section 409A of the Code and the terms of the
      Company&#146;s 409A Policy, a Participant who is otherwise disabled and absent
      from employment with the Company due to that disability will be considered
      to be employed in the active, full-time service of the Company for as long
      as he remains disabled.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top align=left colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left><FONT face=serif size=2>5.3</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2><U><FONT face=serif color=#191919 size=2>Death
      Benefits</FONT></U><FONT face=serif size=2>.</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD vAlign=top width="100%"><P align=justify><FONT face=serif size=2>Prior to his death,
      a Participant shall have the right to designate a Beneficiary or
      beneficiaries for the amount payable under this Section 5.3, and to select
      a separate payment option for benefits commencing upon death, upon a form
      approved by the Plan Administrator.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top align=left colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD vAlign=top width="100%"><P align=justify><FONT face=serif size=2>If the
      Participant&#146;s Termination of Employment occurs as a result of such
      Participant&#146;s death, the Participant&#146;s Account will be paid to the
      Participant&#146;s named Beneficiary(ies) according to a form of payment option
      described in Section 6.3 (or otherwise permitted by the Plan
      Administrator) and elected by the Participant separately for this
      post-death benefit distribution. Payment of these amounts will commence as
      soon as may be practicable under procedures established by the Plan
      Administrator.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top align=left colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(c)</FONT></TD>
    <TD vAlign=top width="100%"><P align=justify><FONT face=serif size=2>If a Participant
      dies after his Benefit Commencement Date but prior to receiving a
      distribution of his entire Account, and the Participant had not elected a
      single life annuity option for his retirement benefit, the balance
      remaining in his Account (or, in the event that the Participant elected an
      annuity payable over the life of Participant and spouse, the survivor
      annuity) will be paid to the Participant&#146;s named Beneficiary(ies) (or
      surviving annuitant) according to the Participant&#146;s election for
      retirement benefits, for the remainder of the period over which the
      retirement benefits were to be paid.</FONT></P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>8 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(d)</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Unless the Participant&#146;s
      Beneficiary designation provides to the contrary, the following will apply
      with respect to payments after the Participant&#146;s death:</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%" colSpan=2></TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(i)</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>If the primary Beneficiary
      survives the Participant but dies before all amounts due to the
      Beneficiary under the Plan are paid out, the present value of any payments
      due after the death of the primary Beneficiary will be paid to the
      Beneficiary&#146;s estate in a lump sum.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%"></TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(ii)</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>If the primary Beneficiary does
      not survive the Participant, any payments due after the death of the
      Participant will be paid to the contingent Beneficiary or, if none is
      named or none survives the Participant, the present value of all amounts
      not yet paid to the Participant will be paid to the Participant&#146;s estate
      in a lump sum.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(iii)</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>In the case of installment
      payments other than an annuity, the present value of amounts not yet paid
      will be the remaining Account Balance.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(iv)</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>In the case of an annuity, the
      present value will be determined by the Plan Administrator using the
      mortality table set forth in Revenue Ruling 95-6, 1995-1 CB 80 and a
      reasonable interest determined by the Plan Administrator considering the
      type of annuity and prevailing market rates.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top colSpan=3>&nbsp; </TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>5.4</FONT></TD>
    <TD vAlign=top width="100%"><U><FONT face=serif size=2>Payor</FONT></U><FONT face=serif size=2>.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%"></TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The Company may pay directly any
      amounts due under the Plan to a Participant or Beneficiary, or it may
      delegate responsibility for payments to a trustee or other third
      party.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>5.5</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif size=2>One-Time Benefit
      Event</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Notwithstanding any other
      provision to the contrary, a Participant may elect to receive a
      distribution equal to 100% of his Account under the Plan provided that
      such election is (i) in writing; and (ii) received by the Plan
      Administrator no later than December 31, 2008. Such distribution will
      occur on January 15, 2009.</FONT></P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>9 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE
6<BR></FONT></U></B><B><U><FONT face=serif size=2>VALUATION AND DISTRIBUTION OF
ACCOUNTS</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>6.1</FONT></TD>
    <TD width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Valuation of
      Accounts</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>A Participant&#146;s Account shall be
      valued as of each Valuation Date under procedures established by the Plan
      Administrator.</FONT></P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>6.2</FONT></TD>
    <TD width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Commencement of
      Benefits</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Benefits will be paid after the
      Participant&#146;s Benefit Commencement Date, which shall be determined in
      accordance with the terms of Article 5. Notwithstanding any provision
      herein to the contrary, to the extent applicable, in no event shall any
      payment hereunder be made earlier than six months after the date of the
      Participant&#146;s termination of employment with the Company, except in
      connection with the Participant&#146;s death.</FONT></P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>6.3</FONT></TD>
    <TD width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Form and Amount
      of Payment Options</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp; </TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top noWrap align=left width="98%" colSpan=2>
      <P align=justify><FONT face=serif size=2>A Participant may elect the form
      of payment option applicable to his Account. Payment options available
      under the Plan are:</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="98%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(a)</FONT></TD>
    <TD vAlign=top align=left width="97%">
      <P align=justify><U><FONT face=serif size=2>Lump Sum</FONT></U><FONT face=serif size=2>. A full lump sum payable on or within thirty days after
      the Participant&#146;s Benefit Commencement Date, equal to the Account balance
      as of the Valuation Date immediately preceding the Benefit Commencement
      Date; or</FONT></P></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top align=left width="97%"><FONT face=serif size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(b)</FONT></TD>
    <TD vAlign=top align=left width="97%">
      <P align=justify><U><FONT face=serif size=2>Equal Annual
      Installments</FONT></U><FONT face=serif size=2>. For Account balances of
      not less than $10,000, equal annual installments payable over five, ten,
      fifteen or twenty years, beginning on or within thirty days after the
      Participant&#146;s Benefit Commencement Date. Annual installments shall be
      equal to the Account balance on the Valuation Date immediately preceding
      first payment divided by the number of years in the elected installment
      period, plus interest to the date of each payment at such rate as the
      Board may determine from time to time (but not less than five percent
      (5%)); or</FONT></P></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp;&nbsp; </TD>
    <TD vAlign=top noWrap align=left width="97%"><FONT face=serif size=2>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"><FONT face=serif size=2>(c)</FONT></TD>
    <TD vAlign=top align=left width="97%">
      <P align=justify><U><FONT face=serif size=2>Recalculated Annual
      Installments</FONT></U><FONT face=serif size=2>. For Account balances of
      not less than $10,000, annual installments payable over five, ten, fifteen
      or twenty years, beginning on or within thirty days after the
      Participant&#146;s Benefit Commencement Date. Annual installments shall be, for
      the first payment, equal to the Account balance on the Valuation Date
      immediately preceding the first payment divided by the number of years in
      the elected installment period, and for the remaining payments, equal to
      the Account Balance on the Valuation Date immediately preceding the
      payment, divided by the remaining number of installment payments to be
      made. For the purpose of determining the amount of all payments following,
      the first payment, interest shall be credited to the Account Balance
      remaining after the first payment at such rate as the Board may determine
      from time to time (but not less than five percent (5%));
  or</FONT></P></TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>10 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(d)</FONT></TD>
    <TD width="100%">
      <P align=justify><U><FONT face=serif size=2>Life Annuity
      Options</FONT></U><FONT face=serif size=2>. For Account balances of not
      less than $10,000, equal annual installments, beginning on or within
      thirty days after the Participant&#146;s Benefit Commencement Date, payable
      over the life of the Participant, or over the lives of the Participant and
      spouse, with or without a minimum period certain, as elected by the
      Participant at the commencement of his participation in the Plan, or in a
      later change of form of payment made pursuant to Section 6.3. This annuity
      will be the actuarial equivalent of the Account balance on the Valuation
      Date immediately preceding first payment, as determined by the Plan
      Administrator using the mortality table set forth in Revenue Ruling 95-6,
      1995-1 CB 80 and a reasonable interest rate determined by the Plan
      Administrator considering the type of annuity and prevailing market
      rates.</FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left><FONT face=serif size=2>6.4</FONT></TD>
    <TD width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif color=#191919 size=2>Election of
      Payment Options and Deferral of Benefits</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD width="100%" colSpan=2></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>Elections as to the manner of
      distribution of the Participant&#146;s Account will be made upon forms provided
      by and according to procedures established by the Plan Administrator. At
      the commencement of an Eligible Employee&#146;s participation in the Plan, he
      shall be required to make a written election indicating his form of
      payment option. This election will be binding and apply to all amounts
      held for the Participant under the Plan except as provided under (b)
      below.</FONT></P></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face=serif size=2>A Participant will have one
      opportunity to postpone the commencement of his benefits and/or change his
      initial election regarding the form of payment option for his Account, as
      follows: At least twelve (12) months prior to the date on which
      distribution would otherwise commence, the Participant may elect to
      postpone, but not accelerate, his Benefit Commencement Date to a later
      specified date which may not be earlier than five years after the date on
      which distribution would otherwise commence. A Participant may also elect
      to specify a different form of payment, provided, however, that any such
      election will provide for a specified date for distribution which may not
      be earlier than five years after the date on which distribution would
      otherwise commence. Any election which is determined, considering the date
      upon which the Participant terminates or is deemed to have terminated
      under Article 5, to have been made too late, and not otherwise in
      accordance with this Section 6.4 or Section 409A of the Code, will be void
      and without effect.</FONT></P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>11 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE
7<BR></FONT></U></B><B><U><FONT face=serif size=2>ADMINISTRATION AND CLAIMS
PROCEDURE</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>7.1</FONT></TD>
    <TD vAlign=top width="100%"><U><FONT face=serif size=2>Administration</FONT></U><FONT face=serif size=2>.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%"></TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The Plan shall be administered by
      the Board, which shall have the authority, duty and power to interpret and
      construe the provisions of the Plan as the Board deems appropriate
      including the authority to determine eligibility for benefits under the
      Plan. The Board shall have the duty and responsibility of maintaining
      records, making the requisite calculations and disbursing the payments
      hereunder. The interpretations, determinations, regulations and
      calculations of the Board shall be final and binding on all persons and
      parties concerned. Any benefits payable under this Plan will be paid only
      if the Plan Administrator decides in its discretion that the applicant is
      entitled to them.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>7.2</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Expenses;
      Reliance on Third Parties</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Expenses of administration shall
      be paid by the Company. The Board shall be entitled to rely on all tables,
      valuations, certificates, opinions, data and reports furnished by any
      actuary, accountant, controller, counselor other person employed or
      retained by the Company with respect to the Plan.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>7.3</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Annual
      Statements</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The Board shall furnish
      individual annual statements of accrued benefits to each Participant, or
      Beneficiary, in such form as determined by the Board.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>7.4</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Appointment of a
      Conservator</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The Company may from time to time
      establish rules and procedures which it determines to be necessary for the
      proper administration of the Plan and the benefits payable to an
      individual in the event that individual is declared incompetent and a
      conservator or other person legally charged with that individual&#146;s care is
      appointed. Except as otherwise provided herein, when the Company
      determines that such individual is unable to manage his or her financial
      affairs, the Company may pay such individual&#146;s benefits to such
      conservator, person legally charged with such individual&#146;s care, or
      institution then contributing toward or providing for the care and
      maintenance of such individual. Any such payment shall constitute a
      complete discharge of any liability of the Company and the Plan for such
      individual.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>7.5</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Limitation of
      Liability</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Notwithstanding any provision
      herein to the contrary, neither the Company nor any individual acting as
      an employee or agent of the Company shall be liable to any Participant,
      former Participant, designated Beneficiary, or any other person for any
      claim, loss, liability or expense incurred in connection with the Plan,
      unless attributable to fraud or willful misconduct on the part of the
      Company or any such employee or agent of the
  Company.</FONT></P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>12 </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=serif size=2>7.6</FONT></TD>
    <TD vAlign=top width="100%" colSpan=3><U><FONT face=serif color=#191919 size=2>Claims for Benefits</FONT></U><FONT face=serif size=2>.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%" colSpan=3></TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>All claims for benefits shall be
      handled through the following procedure:</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif size=2>Claim</FONT></U><FONT face=serif size=2>. A person who believes that he is being denied a
      benefit to which he is entitled under the Plan (hereinafter referred to as
      a &#147;Claimant&#148;) may file a written request for such benefit with the
      Company, setting forth his claim. The request must be addressed to the
      Plan Administrator at the Company&#146;s then principal place of
      business.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%" colSpan=2></TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif size=2>Claim Decision</FONT></U><FONT face=serif size=2>. Upon receipt of a claim, the Plan Administrator shall
      advise the Claimant that a reply will be forthcoming within ninety (90)
      days and shall, in fact, deliver such reply within such period. The Plan
      Administrator may, however, extend the reply period for an additional
      ninety (90) days for reasonable cause.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><FONT face=serif size=2>If the claim is denied in whole
      or in part, the Plan Administrator shall adopt a written opinion, using
      language calculated to be understood by the Claimant, setting
      forth:</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(i)</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The specific reason or reasons
      for such denial;</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%"></TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(ii)</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The specific reference to
      pertinent provisions of this Agreement on which such denial is
      based;</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(iii)</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>A description of any additional
      material or information necessary for the Claimant to perfect his claim
      and an explanation why such material or such information is
      necessary;</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(iv)</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Appropriate information as to the
      steps to be taken if the Claimant wishes to submit the claim for review;
      and</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(v)</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The time limits for requesting a
      review under Section 7.6(c) and for review under Section
    7.6(d).</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=4>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(c)</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif size=2>Request for
      Review</FONT></U><FONT face=serif size=2>. Within sixty (60) days after
      the receipt by the Claimant of the written opinion described above, the
      Claimant may request in writing that the Assistant Secretary of the
      Company review the determination of the Company. Such request must be
      addressed to the Assistant Secretary of the Company, at its then principal
      place of business. The Claimant or his duly authorized representative may,
      but need not, review the pertinent documents and submit issues and
      comments in writing for consideration by the Company. If the Claimant does
      not request a review of the Company&#146;s determination by the Assistant
      Secretary of the Company within such sixty (60) day period, he shall be
      barred and estopped from challenging the Company&#146;s
      determination.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=4>&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(d)</FONT></TD>
    <TD vAlign=top width="100%" colSpan=2>
      <P align=justify><U><FONT face=serif size=2>Review of
      Decision</FONT></U><FONT face=serif size=2>. Within sixty (60) days after
      the Assistant Secretary&#146;s receipt of a request for review, he will review
      the Company&#146;s determination. After considering all materials presented by
      the Claimant, the Assistant Secretary will render a written opinion,
      written in a manner calculated to be understood by the Claimant, setting
      forth the specific reasons for the decision and containing specific
      references to the pertinent provisions of this Agreement on which the
      decision is based. If special circumstances require that the sixty (60)
      day time period be extended, the Assistant Secretary will so notify the
      Claimant and will render the decision as soon as possible, but no later
      than one hundred twenty (120) days after receipt of the request for
      review.</FONT></P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>13 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE 8</FONT></U></B><B><FONT face=serif size=2><BR></FONT></B><B><U><FONT face=serif size=2>FUNDING</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>8.1</FONT></TD>
    <TD vAlign=top width="100%"><U><FONT face=serif color=#191919 size=2>In
      General</FONT></U><FONT face=serif size=2>.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%"></TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>This Plan is unfunded. The rights
      of a Participant or Beneficiary are those of an unsecured general creditor
      of the Company. In general, benefits will be paid by the Company from its
      general assets when due.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The Company, in its sole
      discretion, shall decide whether or not to underwrite its obligations
      under the Plan by actually investing amounts equal to the Company
      contributions in any investment vehicle. If the Company decides to invest
      its contributions, no Participant or Beneficiary will have any interest in
      those actual investments, even if those actual investments correspond to
      the Plan&#146;s hypothetical investments, and even if the amounts invested
      correspond to the amounts of the Company&#146;s hypothetical Plan
      contributions. Any investment the Company makes in connection with the
      Plan shall at all times remain part of the general assets of the Company,
      subject to the provisions of any Rabbi Trust to which any actual
      investment is transferred; and the rights of Participants and their
      Beneficiaries will remain those of unsecured general creditors of the
      Company.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Participants and their
      Beneficiaries, heirs, successors, and assigns shall have no legal or
      equitable rights, claims, or interests in any specific property or assets
      of the Company, including any investments actually acquired in connection
      with the Company&#146;s obligations under the Plan, except as may be provided
      for in a Rabbi Trust which the Company may choose to establish, as
      provided for in Section 8.2. No life insurance policy(ies) or other
      asset(s) of the Company shall be held by the Company, or by any other
      person or entity, in a fiduciary capacity, under any trust expressed or
      implied, for the benefit of Participants, their Beneficiaries, heirs,
      successors, or assigns (other than under a Rabbi Trust), or shall be held
      as collateral security for the fulfillment of the obligations of the
      Company under this Plan. Any and all of the Company&#146;s assets, including
      such Policies, shall be, and remain, the general, unpledged, unrestricted
      assets of the Company.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Whether or not the Company sets
      aside assets in a Rabbi Trust in connection with this Plan, the Company&#146;s
      obligation under the Plan shall be merely that of an unfunded and
      unsecured promise of the Company to pay money in the
  future.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>8.2</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Rabbi
      Trust</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The Company may transfer cash,
      life insurance policies or any other assets to a Rabbi Trust which it may
      establish in connection with the Plan.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>In that event, Plan benefits may
      be paid, in the absolute discretion of the Company, from the Company&#146;s
      other general assets, or from assets held in the Rabbi
  Trust.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>In the event that assets are
      placed in a Rabbi Trust, those assets shall remain available to general
      creditors of the Company in the event of its
  insolvency.</FONT></P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>14 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE
9<BR></FONT></U></B><B><U><FONT face=serif size=2>AMENDMENT, TERMINATION AND
CHANGE OF CONTROL</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>9.1</FONT></TD>
    <TD vAlign=top width="100%"><U><FONT face=serif color=#191919 size=2>Amendment or Termination</FONT></U><FONT face=serif size=2>.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%"></TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The Company reserves the right to
      amend, modify, suspend or terminate this Plan in whole or in part at
      anytime by action of its Board, to the extent permitted under Section 409A
      of the Code. No amendment shall reduce the Account credited to a
      Participant under this Plan as of the amendment date, except to the extent
      that the Participant agrees in writing to such a
  reduction.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>9.2</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Change of
      Control</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Following a Change of Control (as
      that term is defined in the Employment Agreement), the Plan shall be
      continued by the surviving entity, and the Participant&#146;s rights under this
      Plan shall not be impaired without the consent of the
      Participant.</FONT></P></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>15 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><U><FONT face=serif size=2>ARTICLE 10</FONT></U></B><B><FONT face=serif size=2><BR></FONT></B><B><U><FONT face=serif size=2>GENERAL
PROVISIONS</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.1</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Payment to
      Minors and Incompetents</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%"></TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>If any Participant or Beneficiary
      entitled to receive any benefits hereunder is a minor or is deemed by the
      Plan Administrator, or adjudged to be, legally incapable of giving valid
      receipt and discharge for benefits received, benefits will be paid to such
      person or institution as the Plan Administrator may designate or to the
      duly appointed guardian of the Participant or Beneficiary, as the case may
      be. Any payment so made shall be deemed to be in complete discharge of the
      Participant or Beneficiary&#146;s right to such payment under the
      Plan.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.2</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>No
      Contract</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>This Plan shall not be deemed to
      create a contract of employment with any Participant, nor shall any
      provision of the Plan alter in any way the rights and responsibilities of
      the Company or any Participant under such Participant&#146;s Employment
      Agreement.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.3</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Use of Masculine
      and Feminine; Singular and Plural</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Wherever used in this Plan, the
      masculine gender will include the feminine gender and the singular will
      include the plural, unless the context indicates
  otherwise.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.4</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Non-Alienation
      of Benefits</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>No amount payable to, or held
      under the Plan for the account of, any Participant or Beneficiary shall be
      subject in any manner to alienation, sale, transfer, assignment, pledge,
      encumbrance, or charge, and any attempt to so anticipate, alienate, sell,
      transfer, assign, pledge, encumber, or charge the same shall be void. Nor
      shall any amount payable to, or held under the Plan for the account of,
      any Participant or Beneficiary be in any manner liable for his debts,
      contracts, liabilities, engagements, or torts, or be subject to any legal
      process to levy upon or attach.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.5</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Protective
      Provisions</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Each Participant shall cooperate
      with the Company by furnishing any and all information requested by the
      Company in order to facilitate the payment of benefits hereunder, taking
      such physical examination as the Insurer may require and such other
      relevant action as may be requested by the Plan Administrator. If a
      Participant refuses to cooperate with any requirements reasonably imposed,
      the Company shall have no further obligation to the Participant under the
      Plan, other than payment to the Participant of the cumulative amounts
      previously deferred by the Participant under the Plan.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.6</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Governing
      Law</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The provisions of the Plan shall
      be interpreted, construed, and administered in accordance with the laws of
      the of the State of North Carolina, except to the extent federal law
      (including, but not limited to, ERISA) applies. ERISA will govern all
      issues and matters relating to the Plan and shall preempt all state laws
      relating to the Plan.</FONT></P></TD></TR></TABLE>
<P align=center><FONT face=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=serif size=2>10.7</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif color=#191919 size=2>Captions</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD vAlign=top width="100%"></TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The captions contained in the
      Plan are inserted only as a matter of convenience and for reference and in
      no way define, limit, enlarge, or describe the scope or intent of the Plan
      nor in any way affect the construction of any provision of the
      Plan.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>10.8</FONT></TD>
    <TD vAlign=top width="100%">
      <P align=justify><U><FONT face=serif size=2>Compliance with Section 409A
      of the Code</FONT></U><FONT face=serif size=2>.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>The Plan is intended to comply
      with Section 409A of the Code. Notwithstanding any provision of the Plan
      to the contrary, the Plan shall be interpreted, operated and administered
      in a manner consistent with this intent.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top width="100%">&nbsp;</TD></TR></TABLE>
<P align=left><B><FONT face=serif size=2>EXECUTED</FONT></B><FONT face=serif size=2> this _____ day of ________________, 2008 by the Company&#146;s duly empowered
officer.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD noWrap align=left width="33%" colSpan=2></TD>
    <TD noWrap align=left width="17%"></TD>
    <TD noWrap align=left width="50%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="33%" colSpan=2>&nbsp; </TD>
    <TD noWrap align=left width="17%"></TD>
    <TD noWrap align=left width="50%" colSpan=2><B><FONT face=serif size=2>INVESTORS TITLE INSURANCE COMPANY</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="3%"></TD>
    <TD noWrap align=left width="30%"></TD>
    <TD noWrap align=left width="17%"></TD>
    <TD noWrap align=left width="50%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="3%"><B><FONT face=serif size=2>ATTEST</FONT></B><FONT face=serif size=2>:</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="30%">&nbsp;</TD>
    <TD noWrap align=left width="17%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="50%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="33%" colSpan=2>&nbsp; </TD>
    <TD noWrap align=left width="17%">&nbsp;</TD>
    <TD noWrap align=left width="50%" colSpan=2><FONT face=serif size=2>Signature</FONT>&nbsp; </TD></TR>
  <TR>
    <TD noWrap align=left width="33%" colSpan=2></TD>
    <TD noWrap align=left width="17%"></TD>
    <TD noWrap align=left width="50%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="33%" colSpan=2>&nbsp; </TD>
    <TD noWrap align=left width="17%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>Title</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="49%">&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=left width="33%" colSpan=2></TD>
    <TD noWrap align=left width="17%"></TD>
    <TD noWrap align=left width="50%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="33%" colSpan=2>&nbsp; </TD>
    <TD noWrap align=left width="17%"></TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>Date</FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="49%">&nbsp;</TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>17 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>16
<FILENAME>exhibit23.htm
<DESCRIPTION>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">

<P align=center><FONT face=serif size=2>CONSENT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM </FONT></P>
<P align=justify><FONT face=serif size=2>The Board of Directors and
Stockholders<BR>Investors Title Company<BR>Chapel Hill, North Carolina
</FONT></P>
<P align=justify><FONT face=serif size=2>We consent to the incorporation by
reference in the registration statement No. 333-33903 of Investors Title Company
(the &#147;Company&#148;) and Subsidiaries on Form S-8 of our reports dated March 6, 2009,
with respect to the consolidated financial statements of Investors Title
Company, and the effectiveness of internal control over financial reporting,
which reports appear in Investors Title Company&#146;s 2008 Annual Report on Form
10-K. </FONT></P>
<P align=justify><FONT face=serif size=2>Our audits of the consolidated
financial statements referred to in our aforementioned report also included the
financial statement schedules of the Company, listed in item 15. These financial
statement schedules are the responsibility of the Company&#146;s management. Our
responsibility is to express an opinion based on our audits. In our opinion,
such financial statement schedules, when considered in relation to the basic
consolidated financial statements taken as a whole, present fairly in all
material respects, the information set forth herein.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

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    <TD noWrap align=left width="100%" ><IMG src="exhibit23x1x1.jpg" border=0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%"><FONT face=serif size=2>Dixon Hughes PLLC<BR>High
      Point, North Carolina<BR>March 6, 2009</FONT></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>

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</TEXT>
</DOCUMENT>
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<SEQUENCE>17
<FILENAME>exhibit23x1x1.jpg
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`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.I
<SEQUENCE>18
<FILENAME>exhibit31-i.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">

<P align=center><B><FONT face=serif size=2>Certification </FONT></B></P>
<P align=center><U><FONT face=serif size=2>Exhibit 31(i)</FONT></U><FONT face=serif size=2> </FONT></P>
<P align=left><FONT face=serif size=2>I, J. Allen Fine, certify that:
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>I have reviewed this annual report on Form 10-K
      of Investors Title Company; </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>2.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Based on my knowledge, this report does not
      contain any untrue statement of a material fact or omit to state a
      material fact necessary to make the statements made, in light of the
      circumstances under which such statements were made, not misleading with
      respect to the period covered by this report; </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>3.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Based on my knowledge, the financial
      statements, and other financial information included in this report,
      fairly present in all material respects the financial condition, results
      of operations and cash flows of the registrant as of, and for, the periods
      presented in this report; </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>4.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>The registrant's other certifying officer and I
      are responsible for establishing and maintaining disclosure controls and
      procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
      internal control over financial reporting (as defined in Exchange Act
      Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
    </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>a)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Designed such disclosure controls and
      procedures, or caused such disclosure controls and procedures to be
      designed under our supervision, to ensure that material information
      relating to the registrant, including its consolidated subsidiaries, is
      made known to us by others within those entities, particularly during the
      period in which this report is being prepared; </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>b)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Designed such internal control over financial
      reporting, or caused such internal control over financial reporting to be
      designed under our supervision, to provide reasonable assurance regarding
      the reliability of financial reporting and the preparation of financial
      statements for external purposes in accordance with generally accepted
      accounting principles; </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>c)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Evaluated the effectiveness of the registrant's
      disclosure controls and procedures and presented in this report our
      conclusions about the effectiveness of the disclosure controls and
      procedures, as of the end of the period covered by this report based on
      such evaluation; and </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>d)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Disclosed in this report any change in the
      registrant's internal control over financial reporting that occurred
      during the registrant's most recent fiscal quarter (the registrant&#146;s
      fourth fiscal quarter in the case of this annual report) that has
      materially affected, or is reasonably likely to materially affect, the
      registrant's internal control over financial reporting; and
  </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>5.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>The registrant's other certifying officer and I
      have disclosed, based on our most recent evaluation of internal control
      over financial reporting, to the registrant's auditors and the audit
      committee of the registrant's board of directors: </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>a)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>All significant deficiencies and material
      weaknesses in the design or operation of internal control over financial
      reporting which are reasonably likely to adversely affect the registrant's
      ability to record, process, summarize and report financial information;
      and </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>b)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Any fraud, whether or not material, that
      involves management or other employees who have a significant role in the
      registrant's internal control over financial reporting.
  </FONT></P></TD></TR></TABLE>&nbsp;<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>Date: March 9,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=left width="60%"></TD></TR>
  <TR>
    <TD width="40%">&nbsp; </TD>
    <TD width="60%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;/s/ J. Allen
      Fine</FONT>&nbsp; </TD>
    <TD noWrap align=left width="60%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>J. Allen
      Fine</FONT>&nbsp; </TD>
    <TD noWrap align=left width="60%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>Chief Executive
      Officer</FONT>&nbsp; </TD>
    <TD noWrap align=left width="60%"></TD></TR></TABLE><BR>

<HR align=center width="100%" noShade SIZE=2>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.II
<SEQUENCE>19
<FILENAME>exhibit31-ii.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">

<P align=center><B><FONT face=serif size=2>Certification</FONT></B></P>
<P align=center><U><FONT face=serif size=2>Exhibit 31(ii)</FONT></U></P>
<P align=left><FONT face=serif size=2>I, James A. Fine, Jr., certify that:
</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>1.</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>I have reviewed this annual report on Form 10-K
      of Investors Title Company; </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>2.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Based on my knowledge, this report does not
      contain any untrue statement of a material fact or omit to state a
      material fact necessary to make the statements made, in light of the
      circumstances under which such statements were made, not misleading with
      respect to the period covered by this report; </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>3.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Based on my knowledge, the financial
      statements, and other financial information included in this report,
      fairly present in all material respects the financial condition, results
      of operations and cash flows of the registrant as of, and for, the periods
      presented in this report; </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>4.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>The registrant's other certifying officer and I
      are responsible for establishing and maintaining disclosure controls and
      procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
      internal control over financial reporting (as defined in Exchange Act
      Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
    </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>a)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Designed such disclosure controls and
      procedures, or caused such disclosure controls and procedures to be
      designed under our supervision, to ensure that material information
      relating to the registrant, including its consolidated subsidiaries, is
      made known to us by others within those entities, particularly during the
      period in which this report is being prepared; </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>b)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Designed such internal control over financial
      reporting, or caused such internal control over financial reporting to be
      designed under our supervision, to provide reasonable assurance regarding
      the reliability of financial reporting and the preparation of financial
      statements for external purposes in accordance with generally accepted
      accounting principles; </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>c)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Evaluated the effectiveness of the registrant's
      disclosure controls and procedures and presented in this report our
      conclusions about the effectiveness of the disclosure controls and
      procedures, as of the end of the period covered by this report based on
      such evaluation; and </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>d)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Disclosed in this report any change in the
      registrant's internal control over financial reporting that occurred
      during the registrant's most recent fiscal quarter (the registrant&#146;s
      fourth fiscal quarter in the case of this annual report) that has
      materially affected, or is reasonably likely to materially affect, the
      registrant's internal control over financial reporting; and
  </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>5.</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%" colSpan=3>
      <P align=justify><FONT face=serif size=2>The registrant's other certifying officer and I
      have disclosed, based on our most recent evaluation of internal control
      over financial reporting, to the registrant's auditors and the audit
      committee of the registrant's board of directors: </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>a)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>All significant deficiencies and material
      weaknesses in the design or operation of internal control over financial
      reporting which are reasonably likely to adversely affect the registrant's
      ability to record, process, summarize and report financial information;
      and </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="100%" colSpan=5>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>b)</FONT></TD>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top width="100%">
      <P align=justify><FONT face=serif size=2>Any fraud, whether or not material, that
      involves management or other employees who have a significant role in the
      registrant's internal control over financial reporting.
  </FONT></P></TD></TR></TABLE>&nbsp;<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>Date: March 9,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=left width="60%"></TD></TR>
  <TR>
    <TD width="40%">&nbsp; </TD>
    <TD width="60%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;/s/ James A.
      Fine, Jr.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="60%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>James A. Fine,
      Jr.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="60%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="40%"><FONT face=serif size=2>Chief Financial
      Officer</FONT>&nbsp; </TD>
    <TD noWrap align=left width="60%"></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>

</BODY>

</HTML>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>20
<FILENAME>exhibit32.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">

<P align=right><B><U><FONT face=serif size=2>Exhibit 32</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<P align=center><B><FONT face=serif size=2>Certifications<BR></FONT></B><B><FONT face=serif size=2>Pursuant to 18 U.S.C. Section 1350,<BR>As adopted pursuant
to<BR>Section 906 of the Sarbanes-Oxley Act of 2002</FONT></B></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In connection with the Annual Report
on Form 10-K of Investors Title Company, a North Carolina corporation (the
"Company") for the year ended December 31, 2008 as filed with the Securities and
Exchange Commission on the date hereof (the &#147;Report&#148;), each of the undersigned
officers of the Company does hereby certify, pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(i)The Report fully complies with
the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934 and </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(ii) the
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company. </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="6%"><FONT face=serif size=2>Dated:&nbsp;&nbsp; March 9, 2009<FONT size=3>&nbsp;
    </FONT></FONT></TD>
    <TD noWrap align=left width="28%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ J. Allen Fine</FONT>
    </TD>
    <TD noWrap align=left width="25%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD noWrap align=left width="28%">&nbsp; </TD>
    <TD noWrap align=left width="40%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>J. Allen Fine</FONT>&nbsp; </TD>
    <TD noWrap align=left width="25%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD noWrap align=left width="28%">&nbsp; </TD>
    <TD noWrap align=left width="40%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Chief Executive Officer</FONT>&nbsp; </TD>
    <TD noWrap align=left width="25%">&nbsp;</TD></TR>
  <TR>
    <TD width="74%" colSpan=3>&nbsp; </TD>
    <TD width="25%"></TD></TR>
  <TR>
    <TD width="74%" colSpan=3>&nbsp; </TD>
    <TD width="25%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="6%"><FONT size=2><FONT face=serif>Dated:&nbsp;&nbsp; </FONT>March 9, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=left width="28%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ James A. Fine,
      Jr.</FONT> </TD>
    <TD noWrap align=left width="25%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD noWrap align=left width="28%">&nbsp; </TD>
    <TD noWrap align=left width="40%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>James A. Fine, Jr.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="25%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD noWrap align=left width="28%">&nbsp; </TD>
    <TD noWrap align=left width="40%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=2>Chief Financial Officer</FONT>&nbsp; </TD>
    <TD noWrap align=left width="25%"></TD></TR></TABLE><BR>
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