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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000950136-07-002923.txt : 20070430
<SEC-HEADER>0000950136-07-002923.hdr.sgml : 20070430
<ACCEPTANCE-DATETIME>20070430122400
ACCESSION NUMBER:		0000950136-07-002923
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070612
FILED AS OF DATE:		20070430
DATE AS OF CHANGE:		20070430
EFFECTIVENESS DATE:		20070430

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CPI AEROSTRUCTURES INC
		CENTRAL INDEX KEY:			0000889348
		STANDARD INDUSTRIAL CLASSIFICATION:	AIRCRAFT PART & AUXILIARY EQUIPMENT, NEC [3728]
		IRS NUMBER:				112520310
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11398
		FILM NUMBER:		07798755

	BUSINESS ADDRESS:	
		STREET 1:		200A EXECUTIVE DR
		CITY:			EDGEWOOD
		STATE:			NY
		ZIP:			11717
		BUSINESS PHONE:		5165865200
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>file1.htm
<DESCRIPTION>DEF 14A
<TEXT>
<HTML>
<HEAD>
<TITLE>
</TITLE>
</HEAD>
<BODY>


   <PAGE>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">SCHEDULE 14A</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="font-size:10pt">(Rule 14a-101)</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">INFORMATION REQUIRED IN PROXY
		STATEMENT</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">SCHEDULE 14A INFORMATION</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="font-size:10pt">Proxy Statement Pursuant to Section 14(a)
		of the </FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="font-size:10pt">Securities Exchange Act of 1934
		(Amendment No.</FONT></B><FONT
		STYLE="font-size:10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B><FONT
		STYLE="font-size:10pt">)</FONT></B>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">Filed by the Registrant </FONT><FONT
		FACE="Wingdings">x</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">Filed by a Party other than the Registrant
		</FONT><FONT FACE="Wingdings">o</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">Check the appropriate box:</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT FACE="Wingdings">o</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Preliminary Proxy Statement</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0"
		 STYLE=" border-collapse:collapse;" WIDTH="100%">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:8.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT FACE="Wingdings">o</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:8.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Confidential, For Use of the
				  Commission Only (as permitted by Rule 14a-6(e)(2))</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT FACE="Wingdings">x</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Definitive Proxy Statement</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT FACE="Wingdings">o</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Definitive Additional
				  Materials</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT FACE="Wingdings">o</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Soliciting Material Under Rule
				  14a-12</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">CPI AEROSTRUCTURES, INC,</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">(Name of Registrant as Specified in Its
		Charter)</FONT>
	 </P>
	 <P STYLE="margin-top:18pt;margin-bottom:0pt;">
	 </P>
	 <HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="400">
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">(Name of Person(s) Filing Proxy Statement,
		if Other Than the Registrant)</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">Payment of Filing Fee (Check the appropriate
		box):</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT FACE="Wingdings">x</FONT>
				</P>
			 </TD>
			 <TD WIDTH="95%" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">No fee required.</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT FACE="Wingdings">o</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Fee computed on table below per
				  Exchange Act Rules 14a-6(i)(1) and 0-11.</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Title of each class of securities to
				  which transaction applies:</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(2)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Aggregate number of securities to
				  which transaction applies:</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(3)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Per unit price or other underlying
				  value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the
				  amount on which the filing fee is calculated and state how it was
				  determined):</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(4)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Proposed maximum aggregate value of
				  transaction:</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(5)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Total fee paid:</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT FACE="Wingdings">o</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Fee paid previously with preliminary
				  materials:</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD WIDTH="5%" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT FACE="Wingdings">o</FONT>
				</P>
			 </TD>
			 <TD WIDTH="95%" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Check box if any part of the fee is
				  offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for
				  which the offsetting fee was paid previously. Identify the previous filing by
				  registration statement number, or the form or schedule and the date of its
				  filing.</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Amount previously paid:</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(2)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Form, Schedule or Registration
				  Statement No.:</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(3)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Filing Party:</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(4)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Date Filed:</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:15PT">CPI AEROSTRUCTURES, INC.</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="font-size:15pt">60 Heartland Blvd.</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="font-size:15pt">Edgewood, New York 11717</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="font-size:15pt">(631) 586-5200</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="font-size:15pt">Notice of Annual Meeting of
		Shareholders</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="font-size:15pt">to be held on June 12, 2007</FONT></B>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">To the Shareholders of CPI Aerostructures,
		Inc.:</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">You are cordially invited to attend the
		annual meeting of shareholders of CPI Aerostructures, Inc. to be held at the
		offices of Graubard Miller, our general counsel, located at The Chrysler
		Building, 405 Lexington Avenue, 19<SUP>th</SUP> Floor, New York, New York
		10174, on Tuesday, June 12, 2007, at 10:00 a.m., to consider and act upon the
		following matters:</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">To elect one Class III director to
				  serve for the ensuing three-year period until his successor is elected and
				  qualified; and</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(2)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">To transact such other business as
				  may properly come before the meeting and any and all postponements or
				  adjournments thereof.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Only shareholders of record at the close of
		business on April 26, 2007 will be entitled to notice of, and to vote at, the
		meeting and any postponements or adjournments thereof.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<B><FONT STYLE="font-size:10pt">You are urged to read the attached proxy
		statement, which contains information relevant to the actions to be taken at
		the meeting. Whether or not you expect to attend the meeting, you are earnestly
		requested to date, sign and return the accompanying form of proxy in the
		enclosed addressed, postage-prepaid envelope. Returning a proxy will not affect
		your right to vote in person if you attend the meeting. You may revoke your
		proxy if you so desire at any time before it is voted. We would greatly
		appreciate the prompt return of your proxy as this will assist us in preparing
		for the meeting.</FONT></B>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="49%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="44%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">By Order of the Board of
				  Directors</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Edward J. Fred, Secretary</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">Edgewood, New York</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">April 30, 2007</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:14PT">CPI AEROSTRUCTURES, INC.</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:12PT">PROXY STATEMENT</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="font-size:12pt">Annual Meeting of Shareholders</FONT></B>

	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="font-size:12pt">to be held on June 12, 2007</FONT></B>
	 </P>
	 <P STYLE="margin-top:12pt;margin-bottom:0pt;">
	 </P>
	 <HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="120">
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">This proxy statement and the accompanying
		form of proxy is furnished to shareholders of CPI Aerostructures, Inc. in
		connection with the solicitation of proxies by our board of directors for use
		in voting at our annual meeting of shareholders to be held at the offices of
		Graubard Miller, our general counsel, located at The Chrysler Building, 405
		Lexington Avenue, 19<SUP>th</SUP> Floor, New York, New York 10174, on Tuesday,
		June 12, 2007, at 10:00 a.m., and at any and all postponements or
		adjournments.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">This proxy statement, the accompanying
		notice of meeting of shareholders, the proxy and the annual report to
		shareholders for the year ended December 31, 2006 are being mailed on or about
		April 30, 2007 to shareholders of record on April 26, 2007. We are bearing all
		costs of this solicitation.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">What matters am I voting on?</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">You are being asked to vote on the following
		matters:</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">to elect one Class III director to
				  serve for the ensuing three-year period until his successor is elected and
				  qualified; and</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(2)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">any other business that may properly
				  come before the meeting and any and all postponements or adjournments.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Who is entitled to vote?</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Holders of our common stock as of the close
		of business on April 26, 2007, the record date, are entitled to vote at the
		meeting. As of the record date, we had issued and outstanding 5,730,273 shares
		of common stock, our only class of voting securities outstanding. Each holder
		of our common stock is entitled to one vote for each share held on the record
		date.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">What is the effect of giving a
		proxy?</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Proxies in the form enclosed are solicited
		by and on behalf of our board. The persons named in the proxy have been
		designated as proxies by our board. If you sign and return the proxy in
		accordance with the procedures set forth in this proxy statement, the persons
		designated as proxies by the board will vote your shares at the meeting as
		specified in your proxy.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">If you sign and return your proxy in
		accordance with the procedures set forth in this proxy statement but you do not
		provide any instructions as to how your shares should be voted, your shares
		will be voted FOR the election of the nominee listed below under Proposal 1.
		</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">If you give your proxy, your shares also
		will be voted in the discretion of the proxies named on the proxy card with
		respect to any other matters properly brought before the meeting and any
		</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
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	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">postponements or adjournments. If any other
		matters are properly brought before the meeting, the persons named in the proxy
		will vote the proxies in accordance with their best judgment. </FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">May I change my vote after I return my
		proxy card?</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">You may revoke your proxy at any time before
		it is exercised by:</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">delivering written notification of
				  your revocation to our secretary;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">voting in person at the meeting; or
				  </FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">delivering another proxy bearing a
				  later date. </FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Please note that your attendance at the
		meeting will not alone serve to revoke your proxy.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">What is a quorum?</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">A quorum is the minimum number of shares
		required to be present at the meeting for the meeting to be properly held under
		our bylaws and New York law. The presence, in person or by proxy, of a majority
		of the votes entitled to be cast at the meeting will constitute a quorum at the
		meeting. A proxy submitted by a shareholder may indicate that all or a portion
		of the shares represented by the proxy are not being voted (&#147;shareholder
		withholding&#148;) with respect to a particular matter. Similarly, a broker may
		not be permitted to vote stock (&#147;broker non-vote&#148;) held in street
		name on a particular matter in the absence of instructions from the beneficial
		owner of the stock. The shares subject to a proxy which are not being voted on
		a particular matter because of either shareholder withholding or broker
		non-vote will not be considered shares present and entitled to vote on that
		matter. These shares, however, may be considered present and entitled to vote
		on other matters and will count for purposes of determining the presence of a
		quorum if the shares are being voted with respect to any matter at the meeting.
		If the proxy indicates that the shares are not being voted on any matter at the
		meeting, the shares will not be counted for purposes of determining the
		presence of a quorum. Abstentions are voted neither &#147;for&#148; nor
		&#147;against&#148; a matter, but are counted in the determination of a
		quorum.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">How many votes are needed for the
		election of directors?</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The election of directors requires a
		plurality vote of the votes cast at the meeting. &#147;Plurality&#148; means
		that the individuals who receive the largest number of votes cast
		&#147;FOR&#148; are elected as directors. Consequently, any shares not voted
		&#147;FOR&#148; a particular nominee, whether as a result of a direction of the
		shareholder to withhold authority, abstentions or a broker non-vote, will not
		be counted in the nominee&#146;s favor.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">How do I vote?</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">You may vote your shares in one of three
		ways: by mail, facsimile or in person at the meeting. The prompt return of the
		completed proxy card will assist us in preparing for the meeting. Date, sign
		and return the accompanying proxy in the postage-prepaid envelope enclosed for
		that purpose. You can specify your choices by marking the appropriate boxes on
		the proxy card. If you attend the meeting, you may deliver your completed proxy
		card in person or fill out and return a ballot that will be supplied to you. If
		you wish to fax your proxy, please copy both the front and back of the signed
		proxy and fax it to American Stock Transfer &amp; Trust Co. at 718-234-2287
		(phone: 718-921-8278).</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">2</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
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	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
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	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
		OWNERS AND MANAGEMENT</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The table and accompanying footnotes set
		forth certain information as of April 26, 2007 with respect to the ownership of
		our common shares by:</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="10%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">each person or group who
				  beneficially owns more than 5% of our common shares;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="10%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">each of our directors;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="10%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">our chief executive officer and
				  chief financial officer, our only executive officers (collectively, the
				  &#147;Named Executive Officers&#148;); and</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="10%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">all of our directors and executive
				  officers as a group.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">A person is deemed to be the beneficial
		owner of securities that can be acquired by the person within 60 days from the
		record date upon the exercise of options or warrants. Accordingly, common
		shares issuable upon exercise of options and warrants that are currently
		exercisable or exercisable within 60 days of April 26, 2007 have been included
		in the table with respect to the beneficial ownership of the person owning the
		options or warrants, but not with respect to any other persons.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0"
		 STYLE=" border-collapse:collapse;" WIDTH="100%">
		  <TR>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Name and Address</FONT></B><BR>
				  <B><FONT STYLE="font-size:8pt">of Beneficial Owner<SUP>(1)</SUP></FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Shares</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">Beneficially Owned<SUP>(2)</SUP></FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Percent of
				  Class<SUP>(3)</SUP></FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Edward J. Fred</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="13%" VALIGN="top" STYLE="background:white;">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">406,434</FONT>
				</P>
			 </TD>
			 <TD WIDTH="3%" VALIGN="top" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt"><SUP>(4)</SUP></FONT>
				</P>
			 </TD>
			 <TD WIDTH="12%" VALIGN="top" STYLE="background:white;">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">6.6</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="top" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">%</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Vincent Palazzolo</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">51,500</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt"><SUP>(5)</SUP></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">*</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Walter Paulick</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">56,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt"><SUP>(6)</SUP></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">1.0</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt">%</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Kenneth McSweeney</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">59,334</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt"><SUP>(7)</SUP></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">1.0</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt">%</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Harvey J. Bazaar</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">29,333</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt"><SUP>(8)</SUP></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">*</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Eric Rosenfeld</FONT><BR>
				  <FONT STYLE="font-size:10pt">c/o Crescendo Partners</FONT><BR>
				  <FONT STYLE="font-size:10pt">10 East 53<SUP>rd</SUP> Street, 36<SUP>th
				  </SUP>floor</FONT><BR> <FONT STYLE="font-size:10pt">New York, NY 10022</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">1,049,334</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt"><SUP>(9)</SUP></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">17.9</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt">%</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Rutabaga Capital
				  Management</FONT><BR> <FONT STYLE="font-size:10pt">64 Broad Street,
				  3<SUP>rd</SUP> Floor</FONT><BR> <FONT STYLE="font-size:10pt">Boston, MA
				  02109</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">567,100</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt"><SUP>(10)</SUP></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">9.9</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt">%</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Midwood Capital Management,
				  LLC</FONT><BR> <FONT STYLE="font-size:10pt">One Washington Mall, 8<SUP>th</SUP>
				  Floor</FONT><BR> <FONT STYLE="font-size:10pt">Boston, MA 02108</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">494,237</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt"><SUP>(11)</SUP></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">8.6</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt">%</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Royce &amp; Associates,
				  LLC</FONT><BR> <FONT STYLE="font-size:10pt">1414 Avenue of the
				  Americas</FONT><BR> <FONT STYLE="font-size:10pt">New York, NY 10019</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">446,900</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt"><SUP>(12)</SUP></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">7.8</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt">%</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Arthur August</FONT><BR>
				  <FONT STYLE="font-size:10pt">7155 Wainscott Court</FONT><BR>
				  <FONT STYLE="font-size:10pt">Sarasota, FL 34238</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">368,900</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt"><SUP>(13)</SUP></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">6.3</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt">%</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">All directors and executive officers
				  as a group (six persons)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">1,651,935</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt"><SUP>(14)</SUP></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">25.7</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;margin-right:0in;text-indent:0pt;margin-top:6.0pt;margin-bottom:0in;">
				  <FONT STYLE="font-size:10pt">%</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">3</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P>
		<B><FONT STYLE="font-size:10.5pt">______________</FONT></B>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">*</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Less than 1%.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Unless otherwise noted, the business
				  address of each of the following persons is c/o CPI Aerostructures, Inc., 60
				  Heartland Blvd., Edgewood, New York 11717.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(2)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Unless otherwise noted, we believe
				  that all persons named in the table have sole voting and investment power with
				  respect to all common shares beneficially owned by them, subject to community
				  property laws, where applicable. </FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(3)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">There are 5,730,273 shares currently
				  issued and outstanding. Each person beneficially owns a percentage of our
				  outstanding common shares equal to a fraction, the numerator of which is the
				  number of common shares held by such person plus the number of common shares
				  that such person can acquire within 60 days of April 26, 2007 upon the exercise
				  or conversion of options, warrants or convertible securities and the
				  denominator of which is 5,730,273 (the number of common shares currently
				  outstanding) plus the number of shares such person can so acquire during such
				  60-day period.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(4)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Includes 398,334 common shares that
				  Mr.&nbsp;Fred has the right to acquire upon exercise of options.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(5)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Includes 50,000 common shares that
				  Mr.&nbsp;Palazzolo has the right to acquire upon exercise of options. Excludes
				  options to purchase 25,000 common shares that are not exercisable within 60
				  days of the record date.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(6)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Includes 50,000 common shares that
				  Mr.&nbsp;Paulick has the right to acquire upon exercise of options. </FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(7)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Includes 45,000 common shares that
				  Mr.&nbsp;McSweeney has the right to acquire upon exercise of options.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(8)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Includes 28,333 common shares that
				  Mr.&nbsp;Bazaar has the right to acquire upon exercise of options.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(9)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Represents (a) 46,000 common shares
				  beneficially owned as joint tenants by Mr.&nbsp;Rosenfeld and his wife, (b)
				  883,334 shares held by Crescendo Partners II, L.P. Series L (&#147;Crescendo
				  Partners II&#148;) and (c) 120,000 common shares that Mr.&nbsp;Rosenfeld has
				  the right to acquire upon exercise of options. Mr.&nbsp;Rosenfeld is the senior
				  managing member of the sole general partner of Crescendo Partners II.
				  Mr.&nbsp;Rosenfeld disclaims beneficial ownership of the shares held by
				  Crescendo Partners II, except to the extent of his pecuniary interest therein.
				  </FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(10)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">The information with respect to
				  Rutabaga Capital Management is derived from an Amendment to Schedule 13G filed
				  with the Securities and Exchange Commission on January 24, 2007.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(11)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Represents (a) 203,990 common shares
				  held by Midwood Capital Partners, L.P. (&#147;LP&#148;) and (b) 290,247 common
				  shares held by Midwood Capital Partners QP, L.P. (&#147;QP&#148; and together
				  with LP, the &#147;Funds&#148;). Midwood Capital Management LLC
				  (&#147;Capital&#148;) is the sole general partner of the Funds and, as such,
				  has the sole authority to vote and dispose of all of the common shares held by
				  the Funds. David E. Cohen and Ross D. DeMont are the managers of Capital and as
				  such, have </FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">4</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; margin-left:5%;">
		<FONT STYLE="font-size:10pt">shared authority to vote and dispose of all
		of the common shares held by the Funds. The foregoing information was derived
		from an Amendment to Schedule 13G filed with the Securities and Exchange
		Commission on February 13, 2007.</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(12)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">The information with respect to
				  Royce &amp; Associates is derived from an Amendment to Schedule 13G filed with
				  the Securities and Exchange Commission on January 18, 2007.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(13)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Includes 85,000 common shares that
				  Mr.&nbsp;August has the right to acquire upon exercise of options. Excludes
				  3,000 common shares owned by Mr.&nbsp;August&#146;s wife and an aggregate of
				  2,200 common shares owned by Mr.&nbsp;August&#146;s adult children, all of
				  which shares Mr.&nbsp;August disclaims beneficial ownership.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(14)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Includes an aggregate of 691,667
				  common shares that Messrs.&nbsp;Fred, Palazzolo, Paulick, McSweeney, Bazaar and
				  Rosenfeld have the right to acquire upon exercise of outstanding
				  options.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">5</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">PROPOSAL 1</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">ELECTION OF DIRECTORS</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Our board of directors is divided into three
		classes with only one class of directors being elected in each year and each
		class serving a three-year term. The term of office of the first class of
		directors (Class I), consisting of Kenneth McSweeney and Harvey J. Bazaar, will
		expire at our annual meeting in 2008. The term of office of the second class of
		directors (Class II), consisting of Walter Paulick and Eric Rosenfeld, will
		expire at our annual meeting in 2009. The term of office of the third class of
		directors (Class III), consisting of Edward J. Fred, will expire at this
		year&#146;s annual meeting. </FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Unless authority is withheld, the proxies
		solicited by our board of directors will be voted &#147;FOR&#148; the
		reelection of Edward J. Fred. Our management has no reason to believe that
		Mr.&nbsp;Fred will not be a candidate or will be unable to serve. However, if
		he should become unable or unwilling to serve as a director, the proxy will be
		voted for the election of another person as shall be designated by the board of
		directors.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Information About Directors, Nominees,
		Executive Officers and Significant Employees</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Our directors, executive officers and
		significant employees are as follows:</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="26%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Name</FONT></B>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  &nbsp;<U></U>
				</P>
			 </TD>
			 <TD WIDTH="6%" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Age</FONT></B>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  &nbsp;<U></U>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Position</FONT></B>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">&nbsp;</TD>
			 <TD VALIGN="top">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">&nbsp;</TD>
			 <TD VALIGN="top">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Eric Rosenfeld (1)(2)(4)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">49</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Chairman of the Board of Directors
				  (non-executive)</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Edward J. Fred (1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">48</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Chief Executive Officer, President
				  and Director</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Vincent Palazzolo</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">43</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Chief Financial Officer </FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Walter Paulick (2)(3)(4)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">60</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Director</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Kenneth McSweeney (2)(3)(4)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">75</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Director</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Harvey J. Bazaar (3)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">66</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Director</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <U><B><FONT STYLE="font-size:10pt">Significant
				  Employees</FONT></B></U>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Frank Funicelli</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">64</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Senior Vice President, Business
				  Development</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Douglas McCrosson</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">44</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Vice President of Operations</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV> <BR>
	 <P>
		<B><FONT STYLE="font-size:10.5pt">______________</FONT></B>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Member of strategic planning
				  committee.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(2)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Member of compensation
				  committee.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(3)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Member of audit committee.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(4)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Member of nominating
				  committee.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">6</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
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	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<B><FONT STYLE="font-size:10pt">Eric Rosenfeld </FONT></B><FONT
		STYLE="font-size:10pt">has been the non-executive chairman of our board of
		directors since January 2005 and a director and chairman of our strategic
		planning committee since April 2003. Mr.&nbsp;Rosenfeld has been the president
		and chief executive officer of Crescendo Partners, L.P., a New York-based
		investment firm, since its formation in November 1998. Prior to forming
		Crescendo Partners, Mr.&nbsp;Rosenfeld had been managing director at CIBC
		Oppenheimer and its predecessor company, Oppenheimer &amp; Co., Inc., since
		1985. He has served as chairman of the board and chief executive officer of
		Rhapsody Acquisition Corporation, an OTC Bulletin Board-listed blank check
		company formed to effect a merger, capital stock exchange, assets acquisition
		or other similar business combination, since its inception in April 2006. He
		also served as chairman of the board of Spar Aerospace Limited, a company that
		provides repair and overhaul services for aircraft and helicopters used by
		governments and commercial airlines, from May 1999 until its sale to L-3
		Communications in November 2001. Since June 2006, Mr.&nbsp;Rosenfeld has served
		as a director of Hill International, a Nasdaq-listed construction management
		firm that recently went public by merging with Arpeggio Acquisition
		Corporation, an OTC Bulletin Board-listed blank check company of which
		Mr.&nbsp;Rosenfeld served as chairman, president and chief executive officer
		from its inception in April 2004 until June 2006. Since October 2005,
		Mr.&nbsp;Rosenfeld has been chairman of the board of Computer Horizons Corp., a
		Nasdaq-listed information technology services company. Since July 2004, he has
		been a director of Emergis Inc., a Toronto Stock Exchange-listed electronic
		commerce company. Mr.&nbsp;Rosenfeld served as a director of Sierra Systems
		Group Inc., a Toronto Stock Exchange-listed information technology, management
		consulting and systems integration firm, from October 2003 until it was
		acquired by another company in early 2007. He also served as a director of Geac
		Computer Corporation Limited, a Toronto Stock Exchange and Nasdaq-listed
		enterprise software company, from October 2005 until it was acquired by another
		company in March 2006. He served as a director of Hip Interactive, a Toronto
		Stock Exchange-listed company that distributes and develops electronic
		entertainment products, from November 2004 until July 2005. Mr.&nbsp;Rosenfeld
		also served as a director of AD OPT Technologies, Inc., a Toronto Stock
		Exchange-listed company, from April 2003 until November 2004 when it was
		acquired by Kronos Inc. Mr.&nbsp;Rosenfeld also served as a director and head
		of the special committee of Pivotal Corporation, a Vancouver-based customer
		relations management software company that was sold to chinadotcom in February
		2004. Mr.&nbsp;Rosenfeld is a regular guest lecturer at Columbia Business
		School and he is a faculty member at the Directors College. He has served on
		numerous panels at Queen&#146;s University Business Law School Symposia, McGill
		Law School, the World Presidents&#146; Organization, the Canadian Corporate
		Counsel Association Conference and the Canadian Foundation for Investor
		Education. He has also been a regular guest host on CNBC. Mr.&nbsp;Rosenfeld
		received an MBA from Harvard University and an AB degree in economics from
		Brown University.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<B><FONT STYLE="font-size:10pt">Edward J. Fred</FONT></B><FONT
		STYLE="font-size:10pt"> has been an officer since February 1995 and a member of
		our board of directors since January 1999. He was our controller from February
		1995 to April 1998, when he was appointed chief financial officer, a position
		he held until June 2003 and then from January 2004 to May 2004. He was
		executive vice president from May 2000 until December 2001 and was appointed to
		the position of president in January 2002 and to the position of chief
		executive officer in January 2003. For approximately ten years prior to joining
		CPI Aero, Mr.&nbsp;Fred served in various positions for the international
		division of Grumman, where he last held the position of controller.
		Mr.&nbsp;Fred holds a Bachelor of Business Administration in Accounting from
		Dowling College and an Executive MBA from Hofstra University.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<B><FONT STYLE="font-size:10pt">Vincent Palazzolo </FONT></B><FONT
		STYLE="font-size:10pt">has been our chief financial officer since May 2004.
		From December 2003 to May 2004, he was employed by J. H. Cohn LLP as an audit
		partner. From 1988 through November 2003, Mr.&nbsp;Palazzolo was employed by
		Goldstein Golub Kessler LLP (&#147;GGK&#148;), where he was an audit partner
		from September 1999 through November 2003. While employed by GGK, from
		September 1999 to November 2003, Mr.&nbsp;Palazzolo also served as a managing
		director of American Express Tax and </FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">7</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
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	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">Business Services, Inc. Mr.&nbsp;Palazzolo
		holds a Bachelor of Business Administration in Accounting from Hofstra
		University, is a certified public accountant and is a member of the American
		Institute of Certified Public Accountants and the New York State Society of
		Certified Public Accountants.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<B><FONT STYLE="font-size:10pt">Walter Paulick</FONT></B><FONT
		STYLE="font-size:10pt"> has been a director since April 1992 and chairman of
		our nominating committee since March 2004. From June 2006 until April 2007, he
		served as chairman of our audit committee. Mr.&nbsp;Paulick is currently a
		self-employed real estate development consultant. From 1982 to November 1992,
		Mr.&nbsp;Paulick was a vice president of Parr Development Company, Inc., a real
		estate development company. From 1980 to 1982, Mr.&nbsp;Paulick was employed by
		Key Bank, where he last held the position of vice president. From 1971 to 1980,
		Mr.&nbsp;Paulick was a vice president of National Westminster U.S.A.
		Mr.&nbsp;Paulick holds an associate degree in Applied Science from Suffolk
		Community College and Bachelor of Business Administration from Dowling
		College.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<B><FONT STYLE="font-size:10pt">Kenneth McSweeney </FONT></B><FONT
		STYLE="font-size:10pt">has been a director since February 1998 and chairman of
		our compensation committee since April 2003. Mr.&nbsp;McSweeney has been an
		independent consultant to the aerospace industry since January 1995. From 1961
		to 1995, Mr.&nbsp;McSweeney served in various management positions for Northrop
		Grumman Corporation, most recently as the vice president of its Aerostructures
		Division and a director of business development for the Mideast and gulf coast
		region. Mr.&nbsp;McSweeney has extensive experience in aerostructures and
		logistics support products and is a licensed professional engineer in New York
		State. He holds Bachelor and Master of Science degrees in Electrical
		Engineering from the Polytechnic Institute of Brooklyn and a Masters degree in
		Business Management from CW Post College. He also completed the Executive
		Development Program at the Cornell School of Business and Public
		Administration.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<B><FONT STYLE="font-size:10pt">Harvey J. Bazaar</FONT></B><FONT
		STYLE="font-size:10pt"> has been a director since December 2006 and chairman of
		our audit committee since April 2007. A certified public accountant,
		Mr.&nbsp;Bazaar has spent most of his career in public accounting, having
		retired from PricewaterhouseCoopers in 2000 as the Global and Americas Leader
		for the Capital Markets Group. At Coopers &amp; Lybrand, which merged with
		PriceWaterhouse to form PricewaterhouseCoopers, Mr.&nbsp;Bazaar served on the
		firm&#146;s Executive Committee and as Managing Partner of the New York City
		office. In post-retirement, from September 2001 to December 2002,
		Mr.&nbsp;Bazaar served as the chief operating officer of DML Global Services, a
		company providing fund accounting and related services to private investment
		funds and other businesses. Since January 2006, Mr.&nbsp;Bazaar has served on
		the board of directors and audit committee of BKF Capital Group, Inc., an OTC
		Bulletin Board company, and has served as its president and chief executive
		officer since January 2007. Mr.&nbsp;Bazaar holds a Bachelor of Science Degree
		from Kent State University.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<B><FONT STYLE="font-size:10pt">Frank Funicelli</FONT></B><FONT
		STYLE="font-size:10pt"> has been with CPI Aero since March 1988, serving as
		director of operations from 1988 to 1995, vice president of operations from
		1995 to 2002, and vice president of business development from 2002 to December
		2003. In January 2004, he became our senior vice president, business
		development. From 1977 to 1988, Mr.&nbsp;Funicelli was employed by Fairchild
		Republic Company where he served as Chief Industrial Engineer, Manufacturing
		Engineering Manager and Director of Program Planning and Control. From 1966 to
		1977, he was with Grumman Aerospace where he served as Industrial Engineer,
		Manager of Manufacturing Planning and Control and Program Planning and Resource
		Control Manager. Mr.&nbsp;Funicelli holds a Bachelor of Science degree in
		Industrial Engineering from Pratt Institute and a Master of Science in
		Management Engineering from C.W. Post College.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">8</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
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	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<B><FONT STYLE="font-size:10pt">Douglas McCrosson</FONT></B><FONT
		STYLE="font-size:10pt"> has been with CPI Aero since May 2003, serving as
		director of business development from May 2003 to January 2006, vice president
		of business development from February 2006 to January 2007 and as vice
		president of operations since February 2007. From 1997 to May 2003,
		Mr.&nbsp;McCrosson was corporate secretary and vice president of Frisby
		Technologies, Inc. From 1988 to 1997, he was employed by Frisby Aerospace, Inc.
		in various engineering and marketing positions. He started his professional
		career as a mechanical engineer at Grumman Corporation. Mr.&nbsp;McCrosson
		holds a Bachelor of Science degree in mechanical engineering from the State
		University of New York at Buffalo and a Master of Science degree in Management
		from Polytechnic University.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Independence of Directors</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Our common stock is listed on the American
		Stock Exchange. As a result, we follow the rules of the American Stock Exchange
		in determining whether a director is independent. The board of directors also
		consults with our counsel to ensure that the board&#146;s determinations are
		consistent with those rules and all relevant securities and other laws and
		regulations regarding the independence of directors. Consistent with these
		considerations, the board of directors affirmatively has determined that
		Kenneth McSweeney, Walter Paulick, Harvey J. Bazaar and Eric Rosenfeld will be
		independent directors of CPI Aero for the ensuing year. The other remaining
		director, Edward J. Fred, is not independent because he is currently employed
		by us. All members of our audit, compensation and nominating committees are
		independent.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Code of Ethics</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">In March 2004, our board of directors
		adopted a written code of ethics that applies to our directors, officers and
		employees. A copy of our code of ethics was filed as exhibit 14 to our Annual
		Report on Form 10-KSB for the year ended December 31, 2003. Requests for copies
		of our code of ethics should be sent in writing to CPI Aerostructures, Inc., 60
		Heartland Blvd., Edgewood, New York 11717, Attention: Corporate
		Secretary.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Board of Directors Meetings and
		Committees </FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Our board of directors held eight meetings
		in 2006 and acted by unanimous written consent on one occasion. All directors
		attended the 2006 annual shareholder meeting. Although we do not have any
		formal policy regarding director attendance at annual shareholder meetings, we
		attempt to schedule our annual meetings so that all of our directors can
		attend. In addition, we expect our directors to attend all board and committee
		meetings and to spend the time needed and meet as frequently as necessary to
		properly discharge their responsibilities. No member of our board of directors
		attended fewer than 75% of the total number of meetings of the board and
		committees thereof upon which he served during 2006. We have standing
		compensation, audit, nominating and strategic planning committees.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Strategic Planning Committee
		Information</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Our strategic planning committee is
		currently comprised of Eric Rosenfeld (chairman) and Edward J. Fred. Arthur
		August, our former Chairman Emeritus, served on the strategic planning
		committee until his retirement in December 2006. The main role of the strategic
		planning committee is to evaluate and analyze strategic options for the
		company, including potential merger or acquisition partners. The strategic
		planning committee held one meeting during 2006.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">9</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
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	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Nominating Committee Information and
		Report</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">General</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">In March 2004, the board of directors
		established a nominating committee comprised of Walter Paulick (chairman),
		Kenneth McSweeney and Eric Rosenfeld, each an independent director under the
		American Stock Exchange listing standards. The nominating committee held two
		meetings during 2006. The nominating committee is responsible for overseeing
		the selection of persons to be nominated to serve on our board of directors.
		The nominating committee considers persons identified by its members,
		management, shareholders, investment bankers and others. </FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">In June 2004, the board of directors adopted
		a written charter and established guidelines for selecting nominees and a
		method by which shareholders may propose to the nominating committee candidates
		for selection as nominees for directors. A current copy of the nominating
		committee charter and guidelines is included as </FONT><U><FONT
		STYLE="font-size:10pt">Appendix A</FONT></U><FONT STYLE="font-size:10pt"> to
		this Proxy Statement. </FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">Guidelines for Selecting Director
		Nominees</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The guidelines for selecting nominees
		generally provide that persons to be nominated should be actively engaged in
		business endeavors, have an understanding of financial statements, corporate
		budgeting and capital structure, be familiar with the requirements of a
		publicly traded company, be familiar with industries relevant to our business
		endeavors, be willing to devote significant time to the oversight duties of the
		board of directors of a public company, and be able to promote a diversity of
		views based on the person&#146;s education, experience and professional
		employment. The nominating committee evaluates each individual in the context
		of the board as a whole, with the objective of recommending a group of persons
		that can best implement our business plan, perpetuate our business and
		represent shareholder interests. The nominating committee may require certain
		skills or attributes, such as financial or accounting experience, to meet
		specific board needs that arise from time to time. The nominating committee
		does not distinguish among nominees recommended by shareholders and other
		persons.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">Procedure for Shareholders to Recommend
		Director Candidates</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Shareholders and others who wish to
		recommend candidates to the nominating committee for consideration as directors
		must submit their written recommendations to the nominating committee and
		include all of the information described in the section &#147;Shareholder
		Proposals and Recommendations&#148;. </FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The nominating committee recommended to the
		board to nominate Edward J. Fred for re-election as the Class III director. The
		nominating committee did not receive proposals from any shareholders or others
		for suggested director candidates. </FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Audit Committee Information and
		Report</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">General</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Our audit committee is currently comprised
		of Walter Paulick (chairman from June 2006 to April 2007), Harvey J. Bazaar
		(chairman since April 2007) and Kenneth McSweeney. Eric Rosenfeld served as a
		member of the audit committee from May 2006 until December 2006. During the
		year ended December 31, 2006, the audit committee held five meetings. All of
		the members of the audit committee are </FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">10</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">&#147;independent directors&#148; and are
		&#147;financially literate&#148; as defined under the American Stock Exchange
		listing standards. The current American Stock Exchange listing standards define
		an &#147;independent director&#148; generally as a person, other than an
		officer of the company, who does not have a relationship with the company that
		would interfere with the director&#146;s exercise of independent judgment. The
		American Stock Exchange&#146;s listing standards define &#147;financially
		literate&#148; as being able to read and understand fundamental financial
		statements, including a company&#146;s balance sheet, income statement and cash
		flow statement.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">Financial Expert on Audit
		Committee</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">We must certify to the American Stock
		Exchange that the audit committee has, and will continue to have, at least one
		member who has past employment experience in finance or accounting, requisite
		professional certification in accounting, or other comparable experience or
		background that results in the individual&#146;s financial sophistication. The
		board of directors has determined that Harvey J. Bazaar satisfies the American
		Stock Exchange&#146;s definition of financial sophistication and also qualifies
		as an &#147;audit committee financial expert,&#148; as defined under the rules
		and regulations of the SEC. </FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">Principal Accountant Fees</FONT></I>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="center">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="80%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="73%" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">2006</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">2005</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">&nbsp;</TD>
			 <TD WIDTH="1%" VALIGN="bottom">&nbsp;</TD>
			 <TD WIDTH="3%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="6%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="5%" VALIGN="bottom">&nbsp;</TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="2%" VALIGN="bottom">&nbsp;</TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:8.65pt;text-indent:-8.65pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Audit Fees<SUP>(1)</SUP></FONT>
				</P>
			 </TD>
			 <TD WIDTH="1%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="3%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD WIDTH="6%">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">165,000</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">144,000</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:8.65pt;text-indent:-8.65pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Audit Related Fees</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151; </FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:8.65pt;text-indent:-8.65pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Tax Fees<SUP>(2)</SUP></FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">30,490</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">20,600</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:8.65pt;text-indent:-8.65pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">All Other Fees<SUP>(3)</SUP></FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">43,850</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">31,500</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">&nbsp;</TD>
			 <TD WIDTH="1%" VALIGN="bottom">&nbsp;</TD>
			 <TD WIDTH="3%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="6%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="5%" VALIGN="bottom">&nbsp;</TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="2%" VALIGN="bottom">&nbsp;</TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:25.9pt;text-indent:-8.65pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Total</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">239,340</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">177,100</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P>
		<B><FONT STYLE="font-size:10.5pt">______________</FONT></B>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Represents the aggregate fees billed
				  for professional services rendered by our principal accountants for the audits
				  of our annual financial statements for the years ended December 31, 2006 and
				  December 31, 2005 and review of financial statements included in our quarterly
				  reports on Form 10-Q or services that are normally provided by the accountant
				  in connection with statutory and regulatory filings or engagements for those
				  periods. </FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(2)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Represents the aggregate fees billed
				  for professional services rendered by our principal accountants for the
				  preparation of our federal and state income tax returns for the years ended
				  December 31, 2006 and 2005.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(3)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Represents the aggregate fees billed
				  for other professional services rendered by our principal accountants,
				  including the audit of our 401(K) profit sharing plan and out-of-pocket
				  expenses.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">Audit Committee Pre-Approval Policies and
		Procedures</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">In accordance with Section 10A(i) of the
		Securities Exchange Act of 1934, before we engage our independent accountants
		to render audit or non-audit services, the engagement is approved by our audit
		committee. Our audit committee approved all of the fees referred to in the
		sections entitled &#147;Audit Fees,&#148; &#147;Audit-Related Fees,&#148;
		&#147;Tax Fees&#148; and &#147;All Other Fees&#148; above.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">11</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
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	 </P>
	 <PAGE>
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	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">Audit Committee Report</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">On March 30, 2000, the board of directors
		adopted a written audit committee charter, which was amended and restated on
		March 26, 2003. A current copy of our amended and restated audit committee
		charter is included as </FONT><U><FONT STYLE="font-size:10pt">Appendix
		B</FONT></U><FONT STYLE="font-size:10pt"> to this Proxy Statement. According to
		the audit committee charter, our audit committee&#146;s responsibilities
		include, among other things:</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">reviewing and discussing with
				  management and the independent auditor the annual audited financial statements,
				  and recommend to the board whether the audited financial statements should be
				  included in our Form 10-K;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">discussing with management and the
				  independent auditor significant financial reporting issues and judgments made
				  in connection with the preparation of our financial statements;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">discussing with management and the
				  independent auditor the effect on our financial statements of (i) regulatory
				  and accounting initiatives and (ii) off-balance sheet structures;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">discussing with management major
				  financial risk exposures and the steps management has taken to monitor and
				  control such exposures, including our risk assessment and risk management
				  policies;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">reviewing disclosures made to the
				  audit committee by our chief executive officer and chief financial officer
				  during their certification process for our Form 10-Ks and Form 10-Qs about any
				  significant deficiencies in the design or operation of internal controls or
				  material weaknesses therein and any fraud involving management or other
				  employees who have a significant role in our internal controls;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">verifying the rotation of the lead
				  (or coordinating) audit partner having primary responsibility for the audit and
				  the audit partner responsible for reviewing the audit as required by
				  law;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">reviewing and approving all
				  related-party transactions;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">inquiring and discussing with
				  management our compliance with applicable laws and regulations;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">pre-approving all audit services and
				  permitted non-audit services to be performed by our independent auditor,
				  including the fees and terms of the services to be performed;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">appointing or replacing the
				  independent auditor; </FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">determining the compensation and
				  oversight of the work of the independent auditor (including resolution of
				  disagreements between management and the independent auditor regarding
				  financial reporting) for the purpose of preparing or issuing an audit report or
				  related work; and</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">establishing procedures for the
				  receipt, retention and treatment of complaints received by us regarding
				  accounting, internal accounting controls or reports which raise material issues
				  regarding our financial statements or accounting policies.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">12</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
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	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Management has reviewed the audited
		financial statements in the company&#146;s annual report on Form 10-K with the
		audit committee, including a discussion of the quality, not just the
		acceptability, of the accounting principles, the reasonableness of significant
		accounting judgments and estimates, and the clarity of disclosures in the
		financial statements. In addressing the quality of management&#146;s accounting
		judgments, members of the audit committee asked for management&#146;s
		representations and reviewed certifications prepared by the chief executive
		officer and chief financial officer that the unaudited quarterly and audited
		consolidated financial statements of the company fairly present, in all
		material respects, the financial condition and results of operations of the
		company.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">In performing all of these functions, the
		audit committee acts only in an oversight capacity. The committee reviews the
		company&#146;s annual reports and generally reviews its quarterly reports prior
		to filing with the Securities and Exchange Commission. In its oversight role,
		the audit committee relies on the work and assurances of the company&#146;s
		management, which has the responsibility for financial statements and reports,
		and of the independent registered public accounting firm, who, in their report,
		express an opinion on the conformity of the company&#146;s annual financial
		statements to generally accepted accounting principles. The audit committee has
		met and held discussions with management and the company&#146;s independent
		registered public accounting firm. Management represented to the audit
		committee that the company&#146;s consolidated financial statements were
		prepared in accordance with generally accepted accounting principles, and the
		audit committee has reviewed and discussed the consolidated financial
		statements with management and the independent registered public accounting
		firm. The audit committee discussed with the independent registered public
		accounting firm the matters required to be discussed by Statement on Auditing
		Standards No. 61 (Communication with Audit Committees). The company&#146;s
		independent registered public accounting firm also provided the audit committee
		with the written disclosures required by independence Standards Board Standard
		No. 1 (Independence Discussions with Audit Committees) and the audit committee
		discussed with the independent registered public accounting firm and management
		the auditor&#146;s independence, including with regard to fees for services
		rendered during the fiscal year and for all other professional services
		rendered by the company&#146;s independent registered public accounting firm.
		In reliance on these reviews and discussions and the report of the independent
		registered public accounting firm, the audit committee recommended to the board
		of directors, and the board has approved, that the audited consolidated
		financial statements be included in the company&#146;s annual report on Form
		10-K for the fiscal year ended December 31, 2006, for filing with the
		Securities and Exchange Commission.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; margin-left:5%;">
		<B><FONT STYLE="font-size:10pt">Members of the Audit
		Committee:</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:0pt; margin-left:5%;">
		<FONT STYLE="font-size:10pt">Walter Paulick</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:0pt; margin-left:5%;">
		<FONT STYLE="font-size:10pt">Kenneth McSweeney</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:0pt; margin-left:5%;">
		<FONT STYLE="font-size:10pt">Harvey J. Bazaar</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Compensation Discussion and
		Analysis</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; margin-left:5%;">
		<I><FONT STYLE="font-size:10pt">Introduction</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Our compensation committee is currently
		comprised of Kenneth McSweeney (chairman), Walter Paulick and Eric Rosenfeld,
		each an independent director under the American Stock Exchange listing
		standards. The compensation committee held one meeting during 2006 and acted by
		unanimous consent on one occasion. The responsibilities of the compensation
		committee include:</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">establishing the general
				  compensation policy for our executive officers, including the chief executive
				  officer;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">13</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
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	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
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	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">administering our 1992 Employee
				  Stock Option Plan, 1995 Stock Option Plan, 1998 Performance Equity Plan and
				  Performance Equity Plan 2000; and</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">in administering each of these
				  plans, determining who participates in the plans, establishing performance
				  goals, if any, and determining specific grants and bonuses to the
				  participants.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; margin-left:5%;">
		<I><FONT STYLE="font-size:10pt">General Philosophy</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Our compensation committee&#146;s executive
		compensation policies are generally designed to provide competitive levels of
		compensation that integrate pay with our annual performance and long-term
		business objectives, reward above average corporate performance, recognize
		individual initiative and achievements, and assist us in attracting, motivating
		and retaining qualified executives.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The compensation committee makes all final
		determinations with respect to compensation of executive officers and senior
		management, based on our compensation committee&#146;s assessment of the value
		of each executive&#146;s contribution, the results of recent past fiscal years
		in light of prevailing business conditions, our goals for the ensuing fiscal
		year and, to a lesser extent, prevailing levels at companies considered to be
		comparable to, and competitors of, our company. Our chief executive officer may
		make recommendations to the compensation committee relating to the compensation
		of our chief financial officer and senior management, but the compensation
		committee has full autonomy in determining executive compensation. </FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Our compensation committee is charged with
		performing an annual review of compensation of our executive officers and
		senior management to determine whether such compensation provides adequate
		incentives and motivation and whether the executive officers and senior
		management are adequately compensated relative to comparable officers in other
		companies in our industry.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; margin-left:5%;">
		<I><FONT STYLE="font-size:10pt">Compensation Program and Forms of
		Compensation</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">We generally provide our executive officers
		and senior management with a compensation package consisting of a base salary,
		performance-based bonus and participation in benefit plans generally available
		to other employees. We also offer long-term compensation in the form of stock
		options. A full description of the agreements we have with our executive
		officers is set forth below under the caption &#147;Compensation Arrangements
		with Executive Officers.&#148; In setting total compensation, the compensation
		committee considers individual and company performance, as well as market
		information regarding compensation paid by other companies in our
		industry.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">Base Salary</FONT></I><FONT
		STYLE="font-size:10pt">. Generally, we set executive base salaries at levels
		comparable with those of executives in similar positions and with similar
		responsibilities at comparable companies. We seek to maintain base salary
		amounts at or near the industry norms while avoiding paying amounts in excess
		of what we believe is necessary to motivate executives to meet corporate goals.
		Base salaries are generally reviewed annually, subject to terms of employment
		agreements, and our compensation committee and board will seek to adjust base
		salary amounts to realign such salaries with industry norms after taking into
		account individual responsibilities, performance and experience. </FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">Bonuses</FONT></I><FONT
		STYLE="font-size:10pt">. A component of each executive officer&#146;s potential
		annual compensation may take the form of a performance-based bonus.
		Contractually, our chief executive officer and chief financial officer </FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">14</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
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	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
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	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">are entitled to an annual bonus based on
		meeting certain revenue and EBITDA targets as described below under the caption
		&#147;Compensation Arrangements with Executive Officers.&#148; Bonus payments
		to senior management and other employees are determined by the compensation
		committee, in consultation with the chief executive officer, based on our
		financial performance and the achievement of the employee&#146;s individual
		performance objectives. </FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">Long-Term Incentives</FONT></I><FONT
		STYLE="font-size:10pt">. Longer-term incentives are provided through equity
		awards, which reward executives and other employees through the growth in value
		of our stock. The compensation committee believes that employee equity
		ownership provides an incentive for employees to build shareholder value and
		serves to align the interests of employees with those of our shareholders.
		Grants of stock options to executive officers and senior management are based
		upon each officer&#146;s relative position, responsibilities and contributions
		to CPI Aero, with primary weight given to the individual&#146;s relative rank
		and responsibilities. Stock options are generally granted at an exercise price
		equal to the market price of our common stock on the date of grant and will
		provide value only when the price of our common stock increases over the
		exercise price. In order to provide an incentive for continued employment,
		stock options granted under our equity plans generally vest 1/3 on each of the
		first, second and third anniversaries of the date of grant, and generally
		expire five years from the date of grant. This provides a reasonable tie to
		align compensation with the appreciation of our stock price while managing
		potential dilution effectively.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Equity awards are granted through our
		Performance Equity Plan 2000, which was adopted by our shareholders in August
		2000 and most recently amended in June 2005. The 2000 Plan generally provides
		for grants of stock options, stock appreciation rights, restricted stock awards
		and other stock-based awards to our officers, directors, significant employees
		and consultants. Grants may be made to such individuals upon their employment
		or at subsequent dates based on recommendations made by the chief executive
		officer to the compensation committee. The 2000 plan will terminate when no
		further awards may be granted and awards granted are no longer outstanding,
		provided that incentive options may only be granted until March 2010. The plan
		is intended to comply with the regulations issued under Section 162(m) of the
		Internal Revenue Code and is administered by our compensation committee. To the
		extent permitted under the provisions of the plan, the compensation committee
		has authority to determine the selection of participants, allotment of shares,
		price and other conditions of awards. </FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">Other Compensation. </FONT></I><FONT
		STYLE="font-size:10pt">We have established and maintain various employee
		benefit plans, including medical, dental, life insurance and 401(k) plans.
		These plans will be available to all salaried employees and will not
		discriminate in favor of executive officers.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; margin-left:5%;">
		<I><FONT STYLE="font-size:10pt">Executive Equity Ownership </FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">We encourage our executives to hold an
		equity interest in our company. However, we do not have specific share
		retention and ownership guidelines for our executives. </FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; margin-left:5%;">
		<I><FONT STYLE="font-size:10pt">Performance-Based Compensation and
		Financial Restatement </FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">We have not considered or implemented a
		policy regarding retroactive adjustments to any cash or equity-based incentive
		compensation paid to our executives and other employees where such payments
		were predicated upon the achievement of certain financial results that were
		subsequently the subject of a financial restatement. </FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">15</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
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	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
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	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; margin-left:5%;">
		<I><FONT STYLE="font-size:10pt">Tax and Accounting
		Considerations</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt"><I>Compliance with Internal Revenue Code
		Section 162(m)</I>. Section 162(m) of the Internal Revenue Code generally
		disallows a public company&#146;s tax deduction for compensation paid to the
		chief executive officer and the four other most highly compensated officers in
		excess of $1 million in any taxable year. Qualifying performance-based
		compensation is not subject to the deduction limit if certain requirements are
		satisfied. In determining executive compensation, our compensation committee
		considers, among other factors, the possible tax consequences. Tax
		consequences, including tax deductibility, are subject to many factors (such as
		changes in the tax laws) that are beyond our control. In addition, the
		compensation committee believes that it is important to retain maximum
		flexibility in designing compensation programs that meet its stated objectives.
		For these reasons, the compensation committee, while considering tax
		deductibility as one of the factors in determining compensation, does not limit
		compensation to those levels or types of compensation that will be deductible
		by us. </FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt"><I>Accounting for Stock-Based
		Compensation</I>. On January 1, 2006, we began accounting for stock-based
		payments including our stock option program in accordance with the requirements
		of FASB Statement 123(R).</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Compensation Committee Report</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The compensation committee has reviewed and
		discussed with management the information contained in the Compensation
		Discussion and Analysis section of this Proxy Statement and, based upon the
		review and discussions, recommended to the board of directors that the
		Compensation Discussion and Analysis be included in this Proxy Statement.
		</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; margin-left:5%;">
		<B><FONT STYLE="font-size:10pt">Members of the Compensation
		Committee:</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:0pt; margin-left:5%;">
		<FONT STYLE="font-size:10pt">Kenneth McSweeney</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:0pt; margin-left:5%;">
		<FONT STYLE="font-size:10pt">Walter Paulick</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:0pt; margin-left:5%;">
		<FONT STYLE="font-size:10pt">Eric Rosenfeld</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Notwithstanding anything to the contrary set
		forth in our previous filings under the Securities Act or the Exchange Act that
		might incorporate future filings made by us under those statutes, the sections
		set forth above under the captions entitled &#147;Audit Committee Information
		and Report&#148; and &#147;Compensation Committee Report&#148; will not be
		incorporated by reference in any of those prior filings or any future filings
		by us.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Compensation Committee Interlocks and
		Insider Participation</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">No officers who are directors participated
		in deliberations regarding executive officer compensation and there are no
		&#147;interlocks&#148; with respect to any director who serves or for any part
		of 2006 served as a member of the compensation committee.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">16</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
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	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
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	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Summary Compensation Table</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The following table sets forth the
		compensation paid or earned by each of the Named Executive Officers for each of
		the fiscal years ended December 31, 2006, 2005 and 2004.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Name and Principal
				  Position</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Year</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Salary</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">($)(1)</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Bonus</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">($)</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Option Awards</FONT></B><BR>
				  <B><FONT STYLE="font-size:8pt">($)</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">All Other
				  Compensation</FONT></B><BR> <B><FONT STYLE="font-size:8pt">($)</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Total</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">($)</FONT></B>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="2%" VALIGN="bottom">&nbsp;</TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="3%" VALIGN="bottom">&nbsp;</TD>
			 <TD WIDTH="1%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="3%" VALIGN="bottom">&nbsp;</TD>
			 <TD WIDTH="1%" VALIGN="bottom">
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			 <TD WIDTH="8%" VALIGN="bottom">
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			 <TD WIDTH="3%" VALIGN="bottom">&nbsp;</TD>
			 <TD WIDTH="1%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="3%" VALIGN="bottom">&nbsp;</TD>
			 <TD WIDTH="1%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD WIDTH="3%" VALIGN="bottom">&nbsp;</TD>
			 <TD WIDTH="1%" VALIGN="bottom">
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			 <TD WIDTH="8%" VALIGN="bottom">
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:8.65pt;text-indent:-8.65pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Edward J. Fred</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">2006</FONT>
				</P>
			 </TD>
			 <TD WIDTH="3%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="1%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">267,120</FONT>
				</P>
			 </TD>
			 <TD WIDTH="3%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="1%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="3%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="1%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="3%" VALIGN="bottom">
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				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="1%" VALIGN="bottom">
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				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">12,963</FONT>
				</P>
			 </TD>
			 <TD WIDTH="3%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(2)</FONT>
				</P>
			 </TD>
			 <TD WIDTH="1%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">280,083</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top" ROWSPAN="2">
				<P ALIGN="left"
				 STYLE=" margin-left:17.3pt;text-indent:-8.65pt;margin-top:2pt;margin-bottom:0pt;">
				  <I><FONT STYLE="font-size:10pt">Chief Executive Officer
				  and</FONT></I><BR> <I><FONT STYLE="font-size:10pt">President</FONT></I>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">2005</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">252,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
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			 </TD>
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				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
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			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
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			 </TD>
			 <TD VALIGN="bottom">
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				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">12,754</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">264,754</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">2004</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">233,280</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
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				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">203,041</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(3)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
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				</P>
			 </TD>
			 <TD VALIGN="bottom">
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				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">436,321</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:8.65pt;text-indent:-8.65pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Vincent Palazzolo(4)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">2006</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">183,750</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
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				</P>
			 </TD>
			 <TD VALIGN="bottom">
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				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">30,741</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(5)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
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				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">214,491</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:17.3pt;text-indent:-8.65pt;margin-top:2pt;margin-bottom:0pt;">
				  <I><FONT STYLE="font-size:10pt">Chief Financial
				  Officer</FONT></I>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">2005</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">178,646</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
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				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
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				</P>
			 </TD>
			 <TD VALIGN="bottom">
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				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">178,646</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:8.65pt;text-indent:-8.65pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">2004</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">110,048</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">31,725</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(6)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">141,773</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P>
		<B><FONT STYLE="font-size:10.5pt">______________</FONT></B>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Reflects actual base salary amounts
				  paid for each of the years indicated.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(2)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Represents (a) $12,290 for a portion
				  of an automobile lease, insurance and maintenance attributable to personal use
				  and (b) $673 for life insurance premiums paid by us for the benefit of
				  Mr.&nbsp;Fred.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(3)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Represents 4% of our consolidated
				  net income for the year ended December 31, 2004.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(4)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Mr.&nbsp;Palazzolo became employed
				  as our chief financial officer on May 17, 2004 at an annual base salary of
				  $175,000.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(5)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">The assumptions related to the
				  valuation of our stock options are disclosed in Note 9 of our audited financial
				  statements for the year ended December 31, 2006 included in our annual report
				  on Form 10-K filed with the SEC on April 2, 2007.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(6)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Represents 1% of our consolidated
				  net income for the year ended December 31, 2004, pro-rated for partial year
				  service.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Compensation Arrangements for Executive
		Officers</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; margin-left:5%;">
		<I><FONT STYLE="font-size:10pt">Edward J. Fred</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">In February 2005, we entered into an amended
		and restated employment agreement with Edward J. Fred, which provides for
		Mr.&nbsp;Fred to serve as our president and chief executive officer until
		December 31, 2007. Mr.&nbsp;Fred&#146;s annual base salary was $252,000 for
		2005, $267,120 for 2006 and increased to $283,150 for 2007. In addition,
		Mr.&nbsp;Fred is eligible to receive an annual bonus, calculated based on
		changes in our revenues and earnings before interest, taxes, depreciation and
		amortization (&#147;EBITDA&#148;). 25% of the bonus amount is determined by
		revenues and 75% by EBITDA. Changes in revenues and EBITDA for the current year
		are measured from the previous year, except that if EBITDA for the year
		preceding the year for which the EBITDA bonus is to be determined is less than
		$1 million, then the EBITDA bonus will be calculated by comparing the current
		year&#146;s EBITDA to the EBITDA of the first preceding year in which EBITDA
		was in excess of $2 million (&#147;EBITDA Comparison Year&#148;). To the extent
		that a 10% annual increase in revenues and EBITDA from the prior year, or
		EBITDA Comparison Year, as appropriate, is achieved, Mr.&nbsp;Fred is entitled
		to a target annual bonus equal to 65% of his annual base salary. Should the
		revenue and/or EBITDA levels fall short of or exceed a 10% increase from the
		</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">17</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">prior year, or EBITDA Comparison Year, as
		appropriate, Mr.&nbsp;Fred&#146;s bonus will decrease or increase by
		predetermined percentages. If there is more than a 15% annual decrease in
		EBITDA or revenues, no EBITDA bonus or revenue bonus will be paid. If there is
		an annual increase of 100% or more in EBITDA or revenues, Mr.&nbsp;Fred&#146;s
		EBITDA bonus or revenue bonus will be 75% more than the target annual bonus.
		Both bonuses will be adjusted pro rata if EBITDA and/or revenues fall in
		between two designated percentages. The first $140,000 of bonus will be paid in
		cash and the balance will be paid half in cash and half in shares of our common
		stock. The shares of common stock will be valued at the average of the last
		sale prices of the common stock for five consecutive trading days ending two
		trading days before issuance. For the year ended December 31, 2006,
		Mr.&nbsp;Fred did not receive a bonus. Pursuant to the terms of
		Mr.&nbsp;Fred&#146;s employment agreement, if a change of control (as such term
		is defined in the agreement) occurs prior to a termination by us without
		&#147;cause&#148; or by Mr.&nbsp;Fred for &#147;good reason&#148; (as such
		terms are defined in the agreement), we must pay him a lump sum equal to three
		times the total compensation (including salary and bonus) earned by him during
		the last full calendar year of his employment. Mr.&nbsp;Fred also has agreed
		not to compete with us during the term of his employment and for two years
		thereafter.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; margin-left:5%;">
		<I><FONT STYLE="font-size:10pt">Vincent Palazzolo</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">On December 1, 2006, we entered into an
		amended and restated employment agreement with Vincent Palazzolo, which
		provides for Mr.&nbsp;Palazzolo to continue to be employed as our chief
		financial officer until December 31, 2009 at a base salary of (i) $200,000 from
		January 1, 2007 until December 31, 2007, (ii) $208,000 from January 1, 2008
		until December 31, 2008 and (iii) $216,300 from January 1, 2009 to December 31,
		2009. For the years ending December 31, 2007, 2008 and 2009, Mr.&nbsp;Palazzolo
		is eligible to receive an annual bonus based on changes in the Company&#146;s
		revenues and EBITDA. 25% of the bonus amount is determined by revenues and 75%
		by EBITDA. Changes in revenues and EBITDA for the current year are measured
		from the previous year, except that if EBITDA for the year preceding the year
		for which the EBITDA bonus is to be determined is less than $1 million, then
		the EBITDA bonus will be calculated by comparing the current year&#146;s EBITDA
		to the EBITDA Comparison Year. To the extent that a 10% annual increase in
		revenues and EBITDA from the prior year, or EBITDA Comparison Year, as
		appropriate, is achieved, Mr.&nbsp;Palazzolo will be entitled to a target
		annual bonus equal to 45% of his annual base salary. Should the revenue and/or
		EBITDA levels fall short of or exceed a 10% increase from the prior year, or
		EBITDA Comparison Year, as appropriate, Mr.&nbsp;Palazzolo&#146;s bonus will
		decrease or increase by predetermined percentages. If there is more than a 15%
		annual decrease in EBITDA or revenues, no EBITDA bonus or revenue bonus will be
		paid. If there is an annual increase of 100% or more in EBITDA or revenues,
		Mr.&nbsp;Palazzolo&#146;s EBITDA bonus or revenue bonus will be 75% more than
		the target annual bonus. Both bonuses will be adjusted pro rata if EBITDA
		and/or revenues fall in between two designated percentages. The first $75,000
		of bonus will be paid in cash and the balance will be paid half in cash and
		half in shares of our common stock. The shares of common stock will be valued
		at the average of the last sale prices of the common stock for five consecutive
		trading days ending two trading days before issuance. For the year ended
		December 31, 2006, Mr.&nbsp;Palazzolo did not receive a bonus. In addition to
		his base salary, on December 1, 2006, the Company granted Mr.&nbsp;Palazzolo a
		ten-year option to purchase 25,000 shares of common stock under the Performance
		Equity Plan 2000 at a price of $6.75 per share, exercisable in three equal
		annual installments commencing on the first anniversary of the date of grant.
		Mr.&nbsp;Palazzolo also has agreed not to compete with us during the term of
		his employment and for two years thereafter.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">18</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Grants of Plan-Based Awards</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The following table sets forth information
		regarding stock option awards to our named executive officers under our stock
		option plans during the fiscal year ended December 31, 2006:</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0"
		 STYLE=" border-collapse:collapse;" WIDTH="100%">
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Name</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Grant</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">Date</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Number of
				  Securities</FONT></B><BR> <B><FONT STYLE="font-size:8pt">Underlying
				  Options</FONT></B><BR> <B><FONT STYLE="font-size:8pt">(#)</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Exercise or Base
				  Price</FONT></B><BR> <B><FONT STYLE="font-size:8pt">of Option
				  Awards</FONT></B><BR> <B><FONT STYLE="font-size:8pt">($/sh)</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Grant Date Fair Value
				  of</FONT></B><BR> <B><FONT STYLE="font-size:8pt">Option Awards ($)</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Edward J. Fred</FONT><BR>
				  <FONT STYLE="font-size:10pt"><I>Chief Executive Officer and President
				  </I></FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="8%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="15%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="3%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom" WIDTH="1%">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="15%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom" WIDTH="1%">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="15%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Vincent Palazzolo</FONT><BR>
				  <FONT STYLE="font-size:10pt"><I>Chief Financial Officer</I></FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">12/1/06</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">25,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">6.75</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">94,475</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P>
		<B><FONT STYLE="font-size:10.5pt">______________</FONT></B>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Exercisable as to 8,333 shares on
				  November 30, 2007, 8,333 shares on November 30, 2008 and 8,334 shares on
				  November 30, 2009. After a portion of the option becomes exercisable, it will
				  remain exercisable until the close of business on November 30, 2016.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Outstanding Equity Awards at Fiscal
		Year-End</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The following table summarizes the
		outstanding option awards as of December 31, 2006 for each Named Executive
		Officer.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0"
		 STYLE=" border-collapse:collapse;" WIDTH="100%">
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="8" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Option Awards</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="8" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Name</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Number of
				  Securities</FONT></B><BR> <B><FONT STYLE="font-size:8pt">Underlying
				  Unexercised</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">Options</FONT></B><BR> <B><FONT STYLE="font-size:8pt">(#)
				  Exercisable</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Number of
				  Securities</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">Underlying</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">Unexercised Options</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">(#) Unexercisable</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Option Exercise</FONT></B><BR>
				  <B><FONT STYLE="font-size:8pt">Price</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">($)</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Option</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">Expiration Date</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Edward J. Fred</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="15%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">13,334</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="15%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">0</FONT>
				</P>
			 </TD>
			 <TD WIDTH="3%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="1%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD WIDTH="10%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">6.27</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="10%" VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">6/30/2008</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <I><FONT STYLE="font-size:10pt">Chief Executive Officer and
				  President</FONT></I><I></I>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">60,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">0</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">2.53</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">12/31/2009</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">125,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">0</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">2.59</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">5/31/2010</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">100,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">0</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">1.20</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">8/13/2011</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">100,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">0</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">6.35</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">6/18/2012</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Vincent Palazzolo</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">50,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">0</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">10.48</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">5/16/2014</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <I><FONT STYLE="font-size:10pt">Chief Financial
				  Officer</FONT></I><I></I>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">0</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">25,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">6.75</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">11/30/2016</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P>
		<B><FONT STYLE="font-size:10.5pt">______________</FONT></B>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Exercisable as to 8,333 shares on
				  November 30, 2007, 8,333 shares on November 30, 2008 and 8,334 shares on
				  November 30, 2009. After a portion of the option becomes exercisable, it will
				  remain exercisable until the close of business on November 30, 2016.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Option Exercises in 2006</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Neither of the Named Executive Officers
		exercised options during the year ended December 31, 2006.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">19</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
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	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Employee Benefit Plans</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">In October 2000, we adopted the Greit Plan
		for the purpose of offering senior management a deferred compensation death
		benefit plan that would provide a tax-free benefit for senior management and
		which would be tax neutral to us. Pursuant to the plan, we made a non-interest
		bearing loan to Arthur August, our former Chairman Emeritus and director, in
		the amount of $150,000, which Mr.&nbsp;August used to purchase a Greit Plan.
		This plan has since been terminated and the surrender value of the Greit Plan
		has been returned to Mr.&nbsp;August. Mr.&nbsp;August has placed the proceeds
		from the surrender value in an annuity in our name, which will appreciate to at
		least $150,000 by September 2011 in order to repay the loan made to him.
		Mr.&nbsp;August also assigned to us an insurance policy on his life in the
		amount of $150,000 and agreed to maintain it until the date upon which the
		annuity matures. Accordingly, the loan to Mr.&nbsp;August will be repaid upon
		the maturity date of the annuity or upon the death of Mr.&nbsp;August,
		whichever occurs first.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Stock Option Plans</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">Performance Equity Plan 2000</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The Performance Equity Plan 2000 authorizes
		the grant of 1,230,000 stock options, stock appreciation rights, restricted
		stock, deferred stock, stock reload options, and other stock based awards. As
		of December 31, 2006, options to purchase an aggregate of 948,333 common shares
		had been granted under this plan, of which 836,083 options remain outstanding
		at exercise prices ranging from $1.20 to $10.03 per share. As of April 26,
		2007, options to purchase 206,667 common shares remain available for
		grant.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">1998 Performance Equity Plan</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The 1998 Performance Equity Plan authorizes
		the grant of 463,334 stock options, stock appreciation rights, restricted
		stock, deferred stock, stock reload options, and other stock based awards. As
		of December 31, 2006, options to purchase an aggregate of 546,002 common shares
		had been granted, of which 208,334 remain outstanding at exercise prices
		ranging from $2.53 to $11.31 per share. As of April 26, 2007, options to
		purchase 666 common shares remain available for grant.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">1995 Stock Option Plan</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The 1995 Employee Stock Option Plan
		authorizes the grant of 200,000 stock options and stock appreciation rights. As
		of December 31, 2006, options to purchase an aggregate of 419,000 common shares
		had been granted, of which 155,001 remain outstanding at exercise prices
		ranging from $6.27 to $10.48 per share. As of April 26, 2007, options to
		purchase 285 additional common shares remain available for grant.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<I><FONT STYLE="font-size:10pt">1992 Employee Stock Option
		Plan</FONT></I>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The 1992 Employee Stock Option Plan
		authorized the grant of 83,334 options, all of which have been granted and
		41,002 shares remain outstanding at exercise prices ranging from $2.59 to $6.27
		per share. No more shares may be granted under this plan.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">20</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
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	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
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	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Other Options and Warrants</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">On February 19, 2003, we issued to
		EarlyBirdCapital, Inc. (and its designees) five-year warrants to purchase an
		aggregate of 200,000 common shares as compensation for acting as underwriter
		for our February 2003 public offering. The exercise price of the warrants is
		$4.40 per share. As of December 31, 2006, warrants to purchase 5,000 common
		shares had been exercised.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Equity Compensation Plan
		Information</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The following table sets forth certain
		information at December 31, 2006 with respect to our equity compensation plans
		that provide for the issuance of options, warrants or rights to purchase our
		securities.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0"
		 STYLE=" border-collapse:collapse;" WIDTH="100%">
		  <TR>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Plan Category</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white; ">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Number of Securities
				  to</FONT></B><BR> <B><FONT STYLE="font-size:8pt">be Issued upon
				  Exercise</FONT></B><BR> <B><FONT STYLE="font-size:8pt">of Outstanding
				  Options,</FONT></B><BR> <B><FONT STYLE="font-size:8pt">Warrants and
				  Rights</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white; " COLSPAN="2">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Weighted-Average</FONT></B><BR>
				  <B><FONT STYLE="font-size:8pt">Exercise Price of</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">Outstanding Options,</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">Warrants and Rights</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom" STYLE="background:white; ">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Number of
				  Securities</FONT></B><BR> <B><FONT STYLE="font-size:8pt">Remaining Available
				  for</FONT></B><BR> <B><FONT STYLE="font-size:8pt">Future Issuance
				  under</FONT></B><BR> <B><FONT STYLE="font-size:8pt">Equity Compensation
				  Plans</FONT></B><BR> <B><FONT STYLE="font-size:8pt">(excluding
				  securities</FONT></B><BR> <B><FONT STYLE="font-size:8pt">reflected in the first
				  column)</FONT></B>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" COLSPAN="2">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:10pt">Equity Compensation Plans
				  Approved by Security Holders</FONT></B>
				</P>
			 </TD>
			 <TD WIDTH="3%" VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="14%" VALIGN="bottom" STYLE="background:white; ">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">1,240,418</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="1%" VALIGN="bottom" STYLE="background:white; ">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD WIDTH="14%" VALIGN="bottom" STYLE="background:white; ">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">5.17</FONT>
				</P>
			 </TD>
			 <TD WIDTH="3%" VALIGN="bottom" STYLE="background:white;">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="17%" VALIGN="bottom" STYLE="background:white; ">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">287,618</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:10pt">Equity Compensation Plans Not
				  Approved by Security Holders<SUP>(1)</SUP></FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">195,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">4.40</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">-0-</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P>
		<B><FONT STYLE="font-size:10.5pt">______________</FONT></B>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">See &#147;Other Options and
				  Warrants&#148; for a description of these plans.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Compensation of Directors</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Each of our non-employee directors receives
		an annual cash fee of $10,000 (payable quarterly) and 10,000 options on or
		about April 1<SUP>st</SUP> of each year. The audit committee chairman also
		receives an additional annual cash fee of $20,000 (payable quarterly) and an
		additional 15,000 options on April 1<SUP>st</SUP> of each year. The chairman of
		the strategic planning committee receives an additional annual cash fee of
		$10,000 (payable quarterly). The chairman of the board receives an additional
		annual cash fee of $40,000 (payable quarterly) and an additional 25,000 options
		on or about January 1<SUP>st</SUP> of each year. Our non-employee directors are
		reimbursed for the reasonable expenses they incur to attend meetings.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">21</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The following table summarizes the
		compensation of our directors for the year ended December 31, 2006. Directors
		who are employees of ours do not receive separate compensation for their
		service as a director.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0"
		 STYLE=" border-collapse:collapse;" WIDTH="100%">
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Name</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Fees Earned or Paid in
				  Cash</FONT></B><BR> <B><FONT STYLE="font-size:8pt">($)</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Option Awards</FONT></B><BR>
				  <B><FONT STYLE="font-size:8pt">($)(1)</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="font-size:8pt">Total</FONT></B><BR> <B><FONT
				  STYLE="font-size:8pt">($)</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD COLSPAN="2" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom" HEIGHT="16">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Eric Rosenfeld(2)</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom" HEIGHT="16">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="1%" VALIGN="bottom" HEIGHT="16">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD WIDTH="17%" VALIGN="bottom" HEIGHT="16">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">60,000</FONT>
				</P>
			 </TD>
			 <TD WIDTH="3%" VALIGN="bottom" HEIGHT="16">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="1%" VALIGN="bottom" HEIGHT="16">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD WIDTH="10%" VALIGN="bottom" HEIGHT="16">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">94,665</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom" HEIGHT="16">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="1%" VALIGN="bottom" HEIGHT="16">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD WIDTH="10%" VALIGN="bottom" HEIGHT="16">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">154,665</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom" HEIGHT="16">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Arthur August</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">60,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(3)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">60,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Harvey J. Bazaar(4)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#151;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">12,595</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">12,595</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Kenneth McSweeney</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">10,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">22,740</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">32,740</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Walter Paulick</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">15,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(5)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">22,740</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">37,740</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">A.C. Providenti(6)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">15,000</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">68,220</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">$</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="right"
				 STYLE=" margin-left:0pt;margin-right:.7pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">83,220</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0in;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P>
		<B><FONT STYLE="font-size:10.5pt">______________</FONT></B>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(1)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">The assumptions related to the
				  valuation of our stock options are disclosed in Note 9 of our audited financial
				  statements for the year ended December 31, 2006 included in our annual report
				  on Form 10-K filed with the SEC on April 2, 2007.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(2)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">In addition to his regular annual
				  director compensation, Mr.&nbsp;Rosenfeld received $50,000 in cash and was
				  granted 25,000 immediately exercisable options for serving as non-executive
				  chairman of the board.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(3)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Mr.&nbsp;August received $60,000 in
				  cash for serving as our Chairman Emeritus. He did not receive separate
				  compensation for his service as a director.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(4)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Mr.&nbsp;Bazaar was granted 3,333
				  immediately exercisable options when he became a member of the board on
				  December 1, 2006.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(5)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">In addition to his regular annual
				  director compensation, Mr.&nbsp;Paulick received an $5,000 in cash for serving
				  as chairman of the audit committee effective June 13, 2006.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(6)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:3.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">In connection with
				  Mr.&nbsp;Providenti&#146;s service on the board and as chairman of the audit
				  committee in 2006 through the effective date of his resignation on June 13,
				  2006, Mr.&nbsp;Providenti received one half of his regular director fee
				  ($5,000) and one half of his audit committee chairman fee ($10,000). He also
				  was granted 30,000 immediately exercisable options, 10,000 for his service as a
				  director and 20,000 for his service as audit committee chairman.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Pension Benefits</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Other than our 401(k) plan, we do not
		maintain any other plan that provides for payments or other benefits at,
		following, or in connection with retirement.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">22</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Potential Termination and Change in
		Control Payments</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Edward J. Fred and Vincent Palazzolo have
		employment agreements with us that provide for potential payments in the event
		of their termination or upon a change of control. </FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Pursuant to Mr.&nbsp;Fred&#146;s employment
		agreement, he is entitled to compensation upon termination of his agreement by
		us without &#147;cause&#148; or by Mr.&nbsp;Fred for &#147;good reason.&#148;
		According to his employment agreement:</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#147;cause&#148; means (a)
				  Mr.&nbsp;Fred&#146;s refusal or failure to carry out specific directions of the
				  board which are of a material nature and consistent with his status as CEO and
				  President, or his refusal or failure to perform a material part of his duties;
				  (b) the commission by Mr.&nbsp;Fred of a material breach of any of the
				  provisions of his employment agreement; (c)&nbsp;fraud or dishonest action by
				  Mr.&nbsp;Fred in his relations with us or any of our subsidiaries or
				  affiliates; or (d) Mr.&nbsp;Fred&#146;s conviction of a felony under federal or
				  state law.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#147;good reason&#148; means the
				  occurrence of any of the following circumstances without Mr.&nbsp;Fred&#146;s
				  prior written consent: (a) a substantial and material adverse change in the
				  nature of his title, duties or responsibilities that represents a demotion from
				  his title, duties or responsibilities as in effect immediately prior to such
				  change; (b) he is not nominated or is removed from service as a director; (c)
				  material breach by us of his employment agreement; (d) our failure to make any
				  payment to Mr.&nbsp;Fred when due, unless the payment is not material and is
				  being contested by us, in good faith; (e) any person or entity other than us
				  and/or any of our officers or directors acquires our securities (in one or more
				  transactions) having 50% or more of the total voting power of all of our
				  securities then outstanding (a &#147;change of control&#148;); or (f) our
				  liquidation, bankruptcy or receivership.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">Assuming Mr.&nbsp;Fred had been terminated
		on December 31, 2006, he would have been entitled to receive approximately
		$302,000 as a result of termination by us without cause or by Mr.&nbsp;Fred for
		good reason other than upon a change of control, representing his base salary
		through December 31, 2007 and continued medical benefits through June 30, 2009.
		He also would have been entitled to receive an annual bonus through December
		31, 2007 as calculated pursuant to his employment agreement, if any, and any
		out of pocket expenses incurred in performing his duties under the employment
		agreement. However, if Mr.&nbsp;Fred terminated his employment for good reason
		upon a change of control and he elected to receive, in lieu of the above
		compensation and benefits, a lump sum payment equal to three times the total
		compensation (including salary and bonus) earned during the year ended December
		31, 2006, he would have received $801,000.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Pursuant to Mr.&nbsp;Palazzolo&#146;s
		employment agreement, he is entitled to compensation upon termination of his
		employment by us without &#147;cause&#148; or by Mr.&nbsp;Palazzolo for
		&#147;good reason.&#148; According to his employment agreement:</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#147;cause&#148; means (a)
				  Mr.&nbsp;Palazzolo&#146;s refusal or failure to carry out specific directions
				  of the board which are of a material nature and consistent with his status as
				  CFO, or his refusal or failure to perform a material part of his duties; (b)
				  the commission by Mr.&nbsp;Palazzolo of a material breach of any of the
				  provisions of his employment agreement; (c)&nbsp;fraud or dishonest action by
				  Mr.&nbsp;Palazzolo in his relations with us or any of our subsidiaries or
				  affiliates; or (d) Mr.&nbsp;Palazzolo&#146;s conviction of a felony under
				  federal or state law.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">23</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
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	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&#147;good reason&#148; means the
				  occurrence of any of the following circumstances without
				  Mr.&nbsp;Palazzolo&#146;s prior written consent: (a) a substantial and material
				  adverse change in the nature of his title, duties or responsibilities that
				  represents a demotion from his title, duties or responsibilities as in effect
				  immediately prior to such change; (b) material breach by us of his employment
				  agreement; (c) our failure to make any payment to Mr.&nbsp;Palazzolo when due,
				  unless the payment is not material and is being contested by us, in good faith;
				  or (d) our liquidation, bankruptcy or receivership.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">Assuming Mr.&nbsp;Palazzolo had been
		terminated on December 31, 2006 by us without cause or Mr.&nbsp;Palazzolo had
		terminated his employment for good reason, he would have been entitled to
		receive approximately $624,000, representing his base salary through December
		31, 2009. He also would have been entitled to receive any out of pocket
		expenses incurred in performing his duties under the agreement. </FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="font-size:10pt">Section 16(a) Beneficial Ownership
		Reporting Compliance</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Section 16(a) of the Securities Exchange Act
		of 1934, as amended, requires our officers, directors and persons who own more
		than ten percent of a registered class of our equity securities to file reports
		of ownership and changes in ownership with the Securities and Exchange
		Commission. These reporting persons also are required by regulation to furnish
		us with copies of all Section 16(a) forms they file. To our knowledge, based
		solely on the review of the copies of these forms furnished to us and
		representations that no other reports were required during the year ended
		December 31, 2006, all filing requirements applicable to our officers,
		directors and greater than ten percent beneficial owners were complied
		with.</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">INDEPENDENT AUDITOR</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">A representative of J.H. Cohn LLP, our
		auditors for the year ended December 31, 2006, is expected to be present at the
		meeting. The representative will have the opportunity to make a statement and
		will be available to respond to appropriate questions from shareholders. The
		board of directors has selected the independent registered public accounting
		firm of J.H. Cohn LLP as our auditors for the year ending December 31,
		2007.</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">SOLICITATION OF PROXIES</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The solicitation of proxies in the enclosed
		form is made on behalf of our board of directors and we are bearing the cost of
		this solicitation. In addition to the use of the mails, proxies may be
		solicited personally or by telephone using the services of directors, officers
		and regular employees at nominal cost. Banks, brokerage firms and other
		custodians, nominees and fiduciaries will be reimbursed by us for expenses
		incurred in sending proxy material to beneficial owners of our common stock.
		Additional solicitation of proxies may be made by an independent proxy
		solicitation firm or other entity possessing the facilities to engage in such
		solicitation. If any independent entity is used for such solicitation, we will
		be required to pay them reasonable fees and reimburse expenses incurred by them
		in rendering solicitation services.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">24</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
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	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
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	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="font-size:10pt">2008 ANNUAL MEETING SHAREHOLDER PROPOSALS
		AND NOMINATIONS</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">In order for any shareholder proposal or
		nominations to be presented at the annual meeting of shareholders to be held in
		2008 or to be eligible for inclusion in our proxy statement for such meeting,
		we must receive it at our principal executive offices by January 2, 2008. Each
		proposal should include the exact language of the proposal, a brief description
		of the matter and the reasons for the proposal, the name and address of the
		shareholder making the proposal and the disclosure of that shareholder&#146;s
		number of shares of common stock owned, length of ownership of the shares,
		representation that the shareholder will continue to own the shares through the
		shareholder meeting, intention to appear in person or by proxy at the
		shareholder meeting and material interest, if any, in the matter being
		proposed.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Shareholders who wish to recommend to the
		nominating committee a candidate for election to the board of directors should
		send their letters to CPI Aerostructures, Inc., 60 Heartland Boulevard,
		Edgewood, New York 11717, Attention: Nominating Committee. The corporate
		secretary will promptly forward all such letters to the members of the
		nominating committee. Shareholders must follow certain procedures to recommend
		to the nominating committee candidates for election as directors. In general,
		in order to provide sufficient time to enable the nominating committee to
		evaluate candidates recommended by shareholders in connection with selecting
		candidates for nomination in connection with our annual meeting of
		shareholders, the corporate secretary must receive the shareholder&#146;s
		recommendation no later than thirty days after the end of our fiscal
		year.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The recommendation must contain the
		following information about the candidate:</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Name and age;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Current business and residence
				  addresses and telephone numbers, as well as residence addresses for the past 20
				  years;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Principal occupation or employment
				  and employment history (name and address of employer and job title) for the
				  past 20 years (or such shorter period as the candidate has been in the
				  workforce);</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Educational background;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Permission for the company to
				  conduct a background investigation, including the right to obtain education,
				  employment and credit information;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">The number of shares of common stock
				  of the company beneficially owned by the candidate;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">The information that would be
				  required to be disclosed by the company about the candidate under the rules of
				  the SEC in a proxy statement soliciting proxies for the election of such
				  candidate as a director (which currently includes information required by Items
				  401, 404 and 405 of Regulation S-K); and</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">A signed consent of the nominee to
				  serve as a director of the company, if elected.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">25</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">OTHER SHAREHOLDER COMMUNICATIONS WITH THE
		BOARD OF DIRECTORS</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The board of directors provides a process
		for shareholders and interested parties to send communications to the board.
		Shareholders and interested parties may communicate with the board of
		directors, any committee chairperson or the non-management directors as a group
		by writing to the board or committee chairperson in care of CPI Aerostructures,
		Inc., 60 Heartland Blvd., Edgewood, New York 11717. Each communication will be
		forwarded, depending on the subject matter, to the board, the appropriate
		committee chairperson or all non-management directors.</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">DISCRETIONARY VOTING OF
		PROXIES</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">Pursuant to Rule 14a-4 promulgated by the
		Securities and Exchange Commission, shareholders are advised that our
		management will be permitted to exercise discretionary voting authority under
		proxies it solicits and obtains for the 2008 annual meeting of shareholders
		with respect to any proposal presented by a shareholder at such meeting,
		without any discussion of the proposal in our proxy statement for such meeting,
		unless we receive notice of such proposal at our principal office in Edgewood,
		New York, not later than March 16, 2008.</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">INCORPORATION BY REFERENCE</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">This proxy statement incorporates by
		reference certain information included in our Annual Report on Form 10-K for
		the fiscal year ended December 31, 2006, including our audited financial
		statements and supplementary data, management&#146;s discussion and analysis of
		financial condition and results of operations and our quantitative and
		qualitative disclosures about market risk.</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">OTHER MATTERS</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The board of directors knows of no matter
		that will be presented for consideration at the meeting other than the matters
		referred to in this proxy statement. Should any other matter properly come
		before the meeting, it is the intention of the persons named in the
		accompanying proxy to vote the proxy in accordance with their best
		judgment.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="49%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="44%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">By Order of the Board of
				  Directors</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				</P>
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <BR> &nbsp;
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Edward J. Fred, Secretary</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">Edgewood, New York</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">April 30, 2007</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">26</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
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	 </P>
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	 <P ALIGN="right" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">APPENDIX A</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">CPI AEROSTRUCTURES, INC.</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="font-size:10pt">Nominating Committee Charter</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The Nominating Committee&#146;s
		responsibilities and powers as delegated by the board of directors are set
		forth in this charter. Whenever the Committee takes an action, it shall
		exercise its independent judgment on an informed basis that the action is in
		the best interests of the Company and its shareholders.</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:12.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="FONT-SIZE:10PT">I.</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:12.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="FONT-SIZE:10PT">PURPOSE</FONT></B>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">As set forth herein, the Committee shall,
		among other things, discharge the responsibilities of the board of directors
		relating to the appropriate size, functioning and needs of the board including,
		but not limited to, recruitment and retention of high quality board members and
		committee composition and structure.</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:12.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="FONT-SIZE:10PT">II.</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:12.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="FONT-SIZE:10PT">MEMBERSHIP</FONT></B>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The Committee shall consist of at least
		three members of the board of directors as determined from time to time by the
		board. Each member shall be &#147;independent&#148; in accordance with the
		listing standards of the American Stock Exchange, as amended from time to
		time.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The board of directors shall elect the
		members of this Committee at the first board meeting practicable following the
		annual meeting of shareholders and may make changes from time to time pursuant
		to the provisions below. Unless a chair is elected by the board of directors,
		the members of the Committee shall designate a chair by majority vote of the
		full Committee membership.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">A Committee member may resign by delivering
		his or her written resignation to the chairman of the board of directors, or
		may be removed by majority vote of the board of directors by delivery to such
		member of written notice of removal, to take effect at a date specified
		therein, or upon delivery of such written notice to such member if no date is
		specified.</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:12.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="FONT-SIZE:10PT">III.</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:12.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="FONT-SIZE:10PT">MEETINGS AND COMMITTEE ACTION
				  </FONT></B>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The Committee shall meet at such times as it
		deems necessary to fulfill its responsibilities. Meetings of the Committee
		shall be called by the chairman of the Committee upon such notice as is
		provided for in the by-laws of the company with respect to meetings of the
		board of directors. A majority of the members shall constitute a quorum.
		Actions of the Committee may be taken in person at a meeting or in writing
		without a meeting. Actions taken at a meeting, to be valid, shall require the
		approval of a majority of the members present and voting. Actions taken in
		writing, to be valid, shall be signed by all members of the Committee. The
		Committee shall report its minutes from each meeting to the board of directors.
		</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The chairman of the Committee shall
		establish such rules as may from time to time be necessary or appropriate for
		the conduct of the business of the Committee. At each meeting, the chairman
		shall appoint as secretary a person who may, but need not, be a member of the
		Committee. A certificate of the </FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
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	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
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	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">secretary of the Committee or minutes of a
		meeting of the Committee executed by the secretary setting forth the names of
		the members of the Committee present at the meeting or actions taken by the
		Committee at the meeting shall be sufficient evidence at all times as to the
		members of the Committee who were present, or such actions taken.</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:12.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="FONT-SIZE:10PT">IV.</FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:12.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="FONT-SIZE:10PT">COMMITTEE AUTHORITY AND
				  RESPONSIBLITIES</FONT></B>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Developing the criteria and
				  qualifications for membership on the board.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Recruiting, reviewing and
				  recommending to the board of directors candidates for election to the board of
				  directors or to fill vacancies on the board of directors.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Reviewing candidates proposed by
				  stockholders, and conducting appropriate inquiries into the background and
				  qualifications of any such candidates.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Establishing subcommittees for the
				  purpose of evaluating special or unique matters.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Monitoring and making
				  recommendations regarding committee functions, contributions and
				  composition.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Evaluating, on an annual basis, the
				  Committee&#146;s performance.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:12.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="FONT-SIZE:10PT">VI. </FONT></B>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:12.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <B><FONT STYLE="FONT-SIZE:10PT">REPORTING</FONT></B>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The Committee shall prepare a statement each
		year concerning its compliance with this charter for inclusion in the
		Company&#146;s proxy statement.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="FONT-SIZE:10PT">A-2</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
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	 </P>
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	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">CPI AEROSTRUCTURES, INC.</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="font-size:10pt">Board of Director Candidate
		Guidelines</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The Nominating Committee of CPI
		Aerostructures, Inc. (the &#147;Company&#148;) will identify, evaluate and
		recommend candidates to become members of the Board of Directors
		(&#147;Board&#148;) with the goal of creating a balance of knowledge and
		experience. Nominations to the Board may also be submitted to the Nominating
		Committee by the Company&#146;s shareholders in accordance with the
		Company&#146;s policy, a copy of which is attached hereto. Candidates will be
		reviewed in the context of current composition of the Board, the operating
		requirements of the Company and the long-term interests of the Company&#146;s
		shareholders. In conducting this assessment, the Committee will consider and
		evaluate each director-candidate based upon its assessment of the following
		criteria:</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Whether the candidate is independent
				  pursuant to the requirements of the American Stock Exchange.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Whether the candidate is
				  accomplished in his or her field and has a reputation, both personal and
				  professional, that is consistent with the image and reputation of the
				  Company.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Whether the candidate has the
				  ability to read and understand basic financial statements. The Nominating
				  Committee also will determine if a candidate satisfies the criteria for being
				  an &#147;audit committee financial expert,&#148; as defined by the Securities
				  and Exchange Commission.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Whether the candidate has relevant
				  experience and expertise and would be able to provide insights and practical
				  wisdom based upon that experience and expertise.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Whether the candidate has knowledge
				  of the Company and issues affecting the Company.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Whether the candidate is committed
				  to enhancing shareholder value.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Whether the candidate fully
				  understands, or has the capacity to fully understand, the legal
				  responsibilities of a director and the governance processes of a public
				  company.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Whether the candidate is of high
				  moral and ethical character and would be willing to apply sound, objective and
				  independent business judgment, and to assume broad fiduciary
				  responsibility.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Whether the candidate has, and would
				  be willing to commit, the required hours necessary to discharge the duties of
				  Board membership.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Whether the candidate has any
				  prohibitive interlocking relationships or conflicts of interest.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Whether the candidate is able to
				  develop a good working relationship with other Board members and contribute to
				  the Board&#146;s working relationship with the senior management of the
				  Company.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Whether the candidate is able to
				  suggest business opportunities to the Company.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="FONT-SIZE:10PT">A-3</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="font-size:10pt">Shareholder Recommendations for
		Directors</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:11pt">Shareholders who wish to recommend to the
		Nominating Committee a candidate for election to the Board of Directors should
		send their letters to CPI Aerostructures, Inc. 60 Heartland Boulevard,
		Edgewood, New York 11717, Attention: Nominating Committee</FONT><FONT
		STYLE="font-size:10pt">. </FONT><FONT STYLE="font-size:11pt">The Corporate
		Secretary will promptly forward all such letters to the members of the
		Nominating Committee</FONT><FONT STYLE="font-size:10pt">. </FONT><FONT
		STYLE="font-size:11pt">Shareholders must follow certain procedures to recommend
		to the Nominating Committee candidates for election as directors</FONT><FONT
		STYLE="font-size:10pt">. </FONT><FONT STYLE="font-size:11pt">In general, in
		order to provide sufficient time to enable the Nominating Committee to evaluate
		candidates recommended by shareholders in connection with selecting candidates
		for nomination in connection with the Company</FONT><FONT
		STYLE="font-size:10pt">&#146;</FONT><FONT STYLE="font-size:11pt">s annual
		meeting of shareholders, the Corporate Secretary must receive the
		shareholder</FONT><FONT STYLE="font-size:10pt">&#146;</FONT><FONT
		STYLE="font-size:11pt">s recommendation no later than thirty (30) days after
		the end of the Company</FONT><FONT STYLE="font-size:10pt">&#146;</FONT><FONT
		STYLE="font-size:11pt">s fiscal year.</FONT>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:11pt">The recommendation must contain the
		following information about the candidate:</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Name;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Age;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Business and current residence
				  addresses, as well as residence addresses for the past 20 years;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Principal occupation or employment
				  and employment history (name and address of employer and job title) for the
				  past 20 years (or such shorter period as the candidate has been in the
				  workforce);</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Educational background;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Permission for the Company to
				  conduct a background investigation, including the right to obtain education,
				  employment and credit information;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">The number of shares of common stock
				  of the Company beneficially owned by the candidate;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">The information that would be
				  required to be disclosed by the Company about the candidate under the rules of
				  the SEC in a Proxy Statement soliciting proxies for the election of such
				  candidate as a director (which currently includes information required by Items
				  401, 404 and 405 of Regulation S-K); and</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:4.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT SIZE="3"><B>&#149;</B></FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">A signed consent of the nominee to
				  serve as a director of the Company, if elected.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="FONT-SIZE:10PT">A-4</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
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	 <P ALIGN="right" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">APPENDIX B</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">AMENDED AND RESTATED</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">AUDIT COMMITTEE CHARTER</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">OF</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">CPI AEROSTRUCTURES, INC.</FONT></B>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Purpose</FONT></B>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">The Audit Committee is appointed by the
		Board of Directors (&#147;Board&#148;) of CPI Aerostructures, Inc.
		(&#147;Company&#148;) to assist the Board in monitoring (1) the integrity of
		the annual, quarterly and other financial statements of the Company, (2) the
		independent auditor&#146;s qualifications and independence, (3) the performance
		of the Company&#146;s internal audit function and independent auditors and (4)
		the compliance by the Company with legal and regulatory requirements. The Audit
		Committee also shall review and approve all related-party transactions.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">The Audit Committee shall prepare the report
		required by the rules of the Securities and Exchange Commission
		(&#147;Commission&#148;) to be included in the Company&#146;s annual proxy
		statement.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Committee Membership</FONT></B>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">The Audit Committee shall consist of no
		fewer than three members, absent a temporary vacancy. The members of the Audit
		Committee shall meet the independence and experience requirements of the
		American Stock Exchange, Section 10A(m)(3) of the Securities Exchange Act of
		1934 (&#147;Exchange Act&#148;) and the rules and regulations of the
		Commission.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">The members of the Audit Committee shall be
		appointed by the Board. Audit Committee members may be replaced by the Board at
		any time. There shall be a Chairman of the Audit Committee which shall also be
		appointed by the Board. The Chairman of the Audit Committee shall be a member
		of the Audit Committee and, if present, shall preside at each meeting of the
		Audit Committee. He shall advise and counsel with the executives of the
		Company, and shall perform such other duties as may from time to time be
		assigned to him by the Audit Committee or the Board of Directors.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Meetings</FONT></B>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">The Audit Committee shall meet as often as
		it determines, but not less frequently than quarterly. The Audit Committee
		shall meet periodically with management, the internal auditors and the
		independent auditor in separate executive sessions. The Audit Committee may
		request any officer or employee of the Company or the Company&#146;s outside
		counsel or independent auditor to attend a meeting of the Audit Committee or to
		meet with any members of, or consultants to, the Audit Committee.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Committee Authority and
		Responsibilities</FONT></B>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">The Audit Committee shall have the sole
		authority to appoint or replace the independent auditor. The Audit Committee
		shall be directly responsible for determining the compensation and oversight of
		the work of the independent auditor (including resolution of disagreements
		between management and the independent auditor regarding financial reporting)
		for the purpose of preparing or issuing an audit report or related work. The
		independent auditor shall report directly to the Audit Committee.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">The Audit Committee shall pre-approve all
		auditing services and permitted non-audit services to be </FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
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	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">performed for the Company by its independent
		auditor, including the fees and terms thereof (subject to the de minimus
		exceptions for non-audit services described in Section 10A(i)(1)(B) of the
		Exchange Act which are approved by the Audit Committee prior to the completion
		of the audit). The Audit Committee may form and delegate authority to
		subcommittees of the Audit Committee consisting of one or more members when
		appropriate, including the authority to grant pre-approvals of audit and
		permitted non-audit services, provided that decisions of such subcommittee to
		grant pre-approvals shall be presented to the full Audit Committee at its next
		scheduled meeting.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">The Audit Committee shall have the
		authority, to the extent it deems necessary or appropriate, to retain
		independent legal, accounting or other advisors. The Company shall provide for
		appropriate funding, as determined by the Audit Committee, for payment of
		compensation to (i) the independent auditor for the purpose of rendering or
		issuing an audit report and (ii) any advisors employed by the Audit
		Committee.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">The Audit Committee shall make regular
		reports to the Board. The Audit Committee shall review and reassess the
		adequacy of this Charter annually and recommend any proposed changes to the
		Board for approval. The Audit Committee annually shall review the Audit
		Committee&#146;s own performance.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">The Audit Committee shall:</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<U><FONT STYLE="font-size:10pt">Financial Statement and Disclosure
		Matters</FONT></U>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">1.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Meet with the independent auditor
				  prior to the audit to review the scope, planning and staffing of the
				  audit.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">2.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Review and discuss with management
				  and the independent auditor the annual audited financial statements, and
				  recommend to the Board whether the audited financial statements should be
				  included in the Company&#146;s Form 10-KSB.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">3.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">If requested by the Audit Committee,
				  management or the independent auditors, review and discuss with management and
				  the independent auditor the Company&#146;s quarterly financial statements prior
				  to the filing of its Form 10-QSB, including the results of the independent
				  auditor&#146;s review of the quarterly financial statements.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">4.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Discuss with management and the
				  independent auditor significant financial reporting issues and judgments made
				  in connection with the preparation of the Company&#146;s financial statements,
				  including:</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(a)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">any significant changes in the
				  Company&#146;s selection or application of accounting principles;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(b)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">the Company&#146;s critical
				  accounting policies and practices to be used;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(c)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">all alternative treatments of
				  financial information within GAAP that have been discussed with management,
				  ramifications of the use of such alternative disclosures and treatments, and
				  the treatment preferred by the independent auditor;</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(d)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">any material written communications
				  between the independent auditor and management, such as any management letter
				  or schedule of unadjusted differences; and</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="FONT-SIZE:10PT">B-2</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
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	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
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	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:6pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">(e)</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">any major issues as to the adequacy
				  of the Company&#146;s internal controls and any special steps adopted in light
				  of material control deficiencies.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">5.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Discuss with management the
				  Company&#146;s earnings press releases generally, including the use of
				  &#147;pro forma&#148; or &#147;adjusted&#148; non-GAAP information, and
				  financial information and earnings guidance provided to analysts and rating
				  agencies. Such discussion may be general and include the types of information
				  to be disclosed and the types to be presentations to be made.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">6.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Discuss with management and the
				  independent auditor the effect on the Company&#146;s financial statements of
				  (i) regulatory and accounting initiatives and (ii) off-balance sheet
				  structures.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">7.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Discuss with management the
				  Company&#146;s major financial risk exposures and the steps management has
				  taken to monitor and control such exposures, including the Company&#146;s risk
				  assessment and risk management policies.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">8.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Discuss with the independent auditor
				  the matters required to be discussed by Statement on Auditing Standards No. 61
				  relating to the conduct of the audit, including any difficulties encountered in
				  the course of the audit work, any restrictions on the scope of activities or
				  access to requested information, and any significant disagreements with
				  management.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">9.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Review disclosures made to the Audit
				  Committee by the Company&#146;s CEO and CFO during their certification process
				  for the Company&#146;s Form 10-KSB and Form 10-QSB about any significant
				  deficiencies in the design or operation of internal controls or material
				  weaknesses therein and any fraud involving management or other employees who
				  have a significant role in the Company&#146;s internal controls.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<U><FONT STYLE="font-size:10pt">Oversight of the Company&#146;s
		Relationship with the Independent Auditor</FONT></U>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">10.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">At least annually, obtain and review
				  a report from the independent auditor, consistent with Independence Standards
				  Board Standard 1, regarding (a) the independent auditor&#146;s internal
				  quality-control procedures, (b) any material issues raised by the most recent
				  internal quality-control review, or peer review, of the firm, or by any inquiry
				  or investigation by governmental or professional authorities within the
				  preceding five years respecting one or more independent audits carried out by
				  the firm, (c) any steps taken to deal with any such issues and (d) all
				  relationships between the independent auditor and the Company. Evaluate the
				  qualifications, performance and independence of the independent auditor,
				  including whether the auditor&#146;s quality controls are adequate and the
				  provision of permitted non-audit services is compatible with maintaining the
				  auditor&#146;s independence, and taking into account the opinions of management
				  and internal auditors. The Audit Committee shall present its conclusions with
				  respect to the independent auditor to the Board.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">11.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Verify the rotation of the lead (or
				  coordinating) audit partner having primary responsibility for the audit and the
				  audit partner responsible for reviewing the audit as required by law. Consider
				  whether, in order to assure continuing auditor independence, it is appropriate
				  to adopt a policy of rotating the independent auditing firm on a regular
				  basis.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">12.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Oversee the Company&#146;s hiring of
				  employees or former employees of the independent auditor who participated in
				  any capacity in the audit of the Company.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="FONT-SIZE:10PT">B-3</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">13.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Be available to the independent
				  auditors during the year for consultation purposes.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<U><FONT STYLE="font-size:10pt">Compliance Oversight
		Responsibilities</FONT></U>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">14.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Obtain from the independent auditor
				  assurance that Section 10A(b) of the Exchange Act has not been
				  implicated.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">15.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Review and approve all related-party
				  transactions.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">16.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Inquire and discuss with management
				  the Company&#146;s compliance with applicable laws and regulations and with the
				  Company&#146;s Code of Ethics and Business Conduct in effect at such time, if
				  any, and, where applicable, recommend policies and procedures for future
				  compliance.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">17.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Establish procedures (which may be
				  incorporated in the Company&#146;s Code of Ethics and Business Conduct, in
				  effect at such time, if any) for the receipt, retention and treatment of
				  complaints received by the Company regarding accounting, internal accounting
				  controls or reports which raise material issues regarding the Company&#146;s
				  financial statements or accounting policies.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">18.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Discuss with management and the
				  independent auditor any correspondence with regulators or governmental agencies
				  and any published reports that raise material issues regarding the
				  Company&#146;s financial statements or accounting policies.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">19.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Discuss with the Company&#146;s
				  General Counsel legal matters that may have a material impact on the financial
				  statements or the Company&#146;s compliance policies.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="font-size:10pt">Limitation of Audit Committee&#146;s
		Role</FONT></B>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:8pt;">
		<FONT STYLE="font-size:10pt">While the Audit Committee has the
		responsibilities and powers set forth in this Charter, it is not the duty of
		the Audit Committee to plan or conduct audits or to determine that the
		Company&#146;s financial statements and disclosures are complete and accurate
		and are in accordance with generally accepted accounting principles and
		applicable rules and regulations. These are the responsibilities of management
		and the independent auditor.</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="FONT-SIZE:10PT">B-4</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
<!-- EEDocs PBStart--><HR NOSHADE="NOSHADE" ALIGN="center" WIDTH="100%"
	 SIZE="2">
	 <P STYLE="page-break-before:always">
	 </P>
	 <PAGE>
<!-- EEDocs PBEnd-->
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:12pt;">
		<B><FONT STYLE="FONT-SIZE:10PT">PROXY</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:16pt;">
		<B><FONT STYLE="font-size:10pt">CPI AEROSTRUCTURES, Inc.</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="font-size:10pt">Proxy</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="font-size:9pt">Solicited By The Board Of
		Directors</FONT></B>
	 </P>
	 <P ALIGN="center" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<B><FONT STYLE="font-size:9pt">for Annual Meeting To Be Held on June 12,
		2007</FONT></B>
	 </P>
	 <P ALIGN="left"
	  STYLE=" margin-bottom:0pt; margin-top:8pt; text-indent:5%;">
		<FONT STYLE="font-size:10pt">The undersigned shareholder(s) of
		</FONT><B><FONT STYLE="FONT-SIZE:10PT">CPI AEROSTRUCTURES, INC.</FONT></B><FONT
		STYLE="font-size:10pt">, a New York corporation (&#147;Company&#148;), hereby
		appoints Eric Rosenfeld and Edward J. Fred, or either of them, with full power
		of substitution and to act without the other, as the agents, attorneys and
		proxies of the undersigned, to vote the shares standing in the name of the
		undersigned at the Annual Meeting to be held on June 12, 2007 and at all
		adjournments thereof. This proxy will be voted in accordance with the
		instructions given below. If no instructions are given, this proxy will be
		voted </FONT><B><FONT STYLE="FONT-SIZE:10PT">FOR</FONT></B><FONT
		STYLE="font-size:10pt"> all of the following proposals:</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR VALIGN="TOP">
			 <TD WIDTH="5%" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:8.65pt;text-indent:-8.65pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:9pt">1.</FONT>
				</P>
			 </TD>
			 <TD WIDTH="25%" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:9pt">Election of the following
				  director:</FONT>
				</P>
			 </TD>
			 <TD WIDTH="23%" VALIGN="top" ALIGN="CENTER">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:9pt">Edward J. Fred</FONT>
				</P>
			 </TD>
			 <TD WIDTH="30%" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="21%" VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:2pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR VALIGN="TOP">
			 <TD VALIGN="top" WIDTH="5%">
				<P ALIGN="left"
				 STYLE=" margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;margin-top:8.0pt;margin-bottom: 0in;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" WIDTH="25%">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:8.0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">FOR the nominee</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" WIDTH="23%" ALIGN="CENTER">
				<P ALIGN="center"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:8.0pt;margin-bottom:0pt;">
				  <FONT FACE="Wingdings">o</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" WIDTH="30%">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:8.0pt;margin-bottom:0pt;">
				  <FONT STYLE="FONT-SIZE:10PT">WITHHOLD AUTHORITY</FONT><BR>
				  <FONT STYLE="font-size:10pt">for the nominee</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" WIDTH="21%">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:8.0pt;margin-bottom:0pt;">
				  <FONT FACE="Wingdings">o</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR VALIGN="TOP">
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">2.</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">In their discretion, the proxies are
				  authorized to vote upon such other business as may come before the </FONT><FONT
				  STYLE="font-size:9pt">meeting or any adjournment thereof.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR VALIGN="TOP">
			 <TD WIDTH="5%" VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT FACE="Wingdings">o</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top" STYLE="padding:6.0pt 0in 0in 0in;">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0pt;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">I plan on attending the Annual
				  Meeting.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <DIV ALIGN="left">
		<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%"
		 STYLE=" border-collapse:collapse;">
		  <TR>
			 <TD WIDTH="49%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="2%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="5%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD WIDTH="44%" VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT STYLE="font-size:9pt">Date: ___________________,
				  2007</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="bottom">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <BR> &nbsp;
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Signature</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;<BR> &nbsp; </FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-bottom:0pt;">
				</P>
				<HR NOSHADE="NOSHADE" WIDTH="100%" COLOR="gray" SIZE="1"> </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT STYLE="font-size:10pt">Signature if held jointly</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
		  </TR>
		  <TR>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT SIZE="1">&nbsp;</FONT>
				</P>
			 </TD>
			 <TD VALIGN="top">
				<P ALIGN="left"
				 STYLE=" margin-left:0pt;text-indent:0pt;margin-top:0in;margin-bottom:0pt;">
				  <FONT STYLE="font-size:9pt">Please sign exactly as your name or
				  names appear on this Proxy. When shares are held jointly, each holder should
				  sign. When signing as executor, administrator, attorney, trustee or guardian,
				  please give full title as such. If the signer is a corporation, please sign
				  full corporate name by duly authorized officer, giving full title as such. If
				  signer is a partnership, please sign in partnership name by authorized
				  person.</FONT>
				</P>
			 </TD>
		  </TR>
		</TABLE> </DIV>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:10pt">&nbsp;</FONT>
	 </P>
	 <P ALIGN="left" STYLE=" margin-bottom:0pt; margin-top:0pt;">
		<FONT STYLE="font-size:11pt">&nbsp;</FONT>
	 </P>
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