-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 HD89x+ckBDNyahtB8zbv7A/rgwvY5sYpzJ+RbJTydB6nP6imbdC9nQOdgAq+Grki
 LoelGH2Jm02PnnTTvsg5ng==

<SEC-DOCUMENT>0000893220-08-001273.txt : 20080429
<SEC-HEADER>0000893220-08-001273.hdr.sgml : 20080429
<ACCEPTANCE-DATETIME>20080429165737
ACCESSION NUMBER:		0000893220-08-001273
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20080618
FILED AS OF DATE:		20080429
DATE AS OF CHANGE:		20080429
EFFECTIVENESS DATE:		20080429

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ALESCO FINANCIAL INC
		CENTRAL INDEX KEY:			0001270436
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				161685692
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32026
		FILM NUMBER:		08786400

	BUSINESS ADDRESS:	
		STREET 1:		CIRA CENTRE, 2929 ARCH STREET
		STREET 2:		17TH FLOOR
		CITY:			PHILADELPHIA
		STATE:			PA
		ZIP:			19104
		BUSINESS PHONE:		215-701-9555

	MAIL ADDRESS:	
		STREET 1:		CIRA CENTRE, 2929 ARCH STREET
		STREET 2:		17TH FLOOR
		CITY:			PHILADELPHIA
		STATE:			PA
		ZIP:			19104

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SUNSET FINANCIAL RESOURCES INC
		DATE OF NAME CHANGE:	20031117
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>w56366def14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>def14a</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>SCHEDULE 14A</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>(RULE 14a-101)<BR>
INFORMATION REQUIRED IN PROXY STATEMENT<BR>
SCHEDULE 14A INFORMATION</B></DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>PROXY STATEMENT PURSUANT TO SECTION 14(a) OF<BR>
THE SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Filed by the Registrant <FONT face="Wingdings">&#254;</FONT><BR>
Filed by a Party other than the Registrant <FONT face="Wingdings">&#111;</FONT><BR>
Check the appropriate box:

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preliminary Proxy Statement.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Confidential, for use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2)).</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#254;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitive Proxy Statement.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitive Additional Materials.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Soliciting Material Pursuant to &#167; 240. 14a-12.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>Alesco Financial Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>(Name of Registrant as Specified In Its Charter)</B></DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</B></DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Payment of Filing Fee (Check the appropriate box):
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#254;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No fee required.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(1) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title of each class of securities to which transaction applies:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aggregate number of securities to which transaction applies:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Per unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule&nbsp;0-11 (set forth the amount on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;which the filing fee is calculated and
state how it was determined):</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(4) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proposed maximum aggregate value of transaction:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(5) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total fee paid:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fee paid previously with preliminary materials.</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;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.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amount Previously Paid:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form, Schedule or Registration Statement No.:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Filing Party:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(4) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date Filed:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <IMG src="w56366w5636600.gif" alt="(Alesco logo)"><B><FONT style="font-family: 'Times New Roman', Times">
    </FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">April&#160;29,
    2008
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dear Stockholder:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You are cordially invited to attend the annual meeting of
    stockholders of Alesco Financial Inc., which will be held on
    June&#160;18, 2008, at 10:00&#160;a.m., local time, at the
    company&#146;s headquarters located at Cira Centre, 2929 Arch
    Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor,
    Philadelphia, Pennsylvania 19104.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The attached proxy statement, with the accompanying formal
    notice of the meeting, describes the matters expected to be
    acted upon at the meeting. We have also enclosed a proxy card
    and our annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007. We urge you to review
    these materials carefully and to take part in the affairs of our
    company by voting on the matters described in the proxy
    statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Your vote is very important. Whether or not you plan to attend
    the meeting, please complete the enclosed proxy card and return
    it as promptly as possible or authorize your proxy by calling
    the toll-free telephone number or via the Internet. The enclosed
    proxy card contains instructions regarding all three methods of
    voting. If you attend the meeting, you may continue to have your
    shares of common stock voted as instructed in the proxy or you
    may withdraw your proxy at the meeting and vote your shares of
    common stock in person. We look forward to seeing you at the
    meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On behalf of our management and Board of Directors, I would like
    to express our appreciation for your continued support of Alesco
    Financial Inc.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sincerely,
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="w56366w5636601.gif" alt="(-s- James J. McEntee, III)">
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    James J. McEntee,&#160;III
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    President and Chief Executive Officer
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ELECTRONIC
    AND TELEPHONE PROXY AUTHORIZATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Alesco Financial Inc.&#146;s stockholders of record on the close
    of business on April&#160;24, 2008, the record date for the 2008
    annual meeting of stockholders, may authorize their proxies to
    vote their shares by telephone or Internet by following the
    instructions on their proxy card. If you have any questions
    regarding how to authorize your proxy by telephone or Internet,
    please call MacKenzie Partners, Inc., the firm assisting Alesco
    Financial Inc. with the solicitation of proxies, toll-free at
    <FONT style="white-space: nowrap">(800)&#160;322-2885.</FONT>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">ALESCO FINANCIAL INC.<BR>
    </FONT>Cira Centre, 2929 Arch Street,<BR>
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
    Floor, Philadelphia,<BR>
    Pennsylvania 19104</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">NOTICE OF ANNUAL MEETING OF
    STOCKHOLDERS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the Stockholders of Alesco Financial Inc.:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notice is hereby given that the annual meeting of stockholders
    of Alesco Financial Inc., a Maryland corporation, will be held
    on June&#160;18, 2008, at 10:00&#160;a.m., local time, at our
    headquarters located at Cira Centre, 2929 Arch Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor,
    Philadelphia, Pennsylvania 19104, to consider and vote on the
    following matters:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;To elect nine directors, each to serve until the next
    annual meeting of stockholders and until his successor is duly
    elected and qualified.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;To amend our 2006 Long-Term Incentive Plan to increase
    the total number of shares of common stock available to be
    granted under the Plan, as more fully described in the enclosed
    proxy statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;To ratify the appointment of Ernst&#160;&#038; Young LLP
    as our independent registered public accounting firm for the
    year ending December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;To transact such other business as may properly come
    before the meeting or any adjournment or postponement thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board of Directors has fixed the close of business on
    April&#160;24, 2008 as the record date for determining the
    stockholders entitled to notice of, and to vote at, the annual
    meeting, and at any adjournments or postponements thereof. Only
    stockholders of record of our common stock, par value $0.001 per
    share, at the close of business on that date will be entitled to
    notice of, and to vote at, the annual meeting and at any
    adjournments or postponements thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Your vote is very important. Accordingly, you are asked to
    vote, whether or not you plan to attend the meeting</B>. You may
    vote: (1)&#160;by telephone, by calling the toll-free number as
    instructed on the accompanying proxy card, (2)&#160;by using the
    Internet, as instructed on the accompanying proxy card,
    (3)&#160;by mail, by marking, signing, dating and returning the
    accompanying proxy card in the postage-paid envelope we have
    provided or (4)&#160;by attending the meeting in person. For
    specific instructions on voting, please refer to the
    instructions on the accompanying proxy card or the information
    forwarded to your broker, bank or other holder of record. Any
    stockholder of our company attending the meeting may vote in
    person even if he or she has previously voted using the
    telephone, the Internet or a proxy card. If you plan to attend
    the meeting to vote in person and your shares are registered
    with our transfer agent, Mellon Investor Services LLC, in the
    name of a broker, bank, or other nominee, you must obtain a
    proxy issued in your name from such broker, bank or other
    nominee.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By Order of the Board of Directors,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="w56366w5636602.gif" alt="(-s- Daniel Munley)">
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Daniel Munley
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Secretary
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;29, 2008
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Philadelphia, Pennsylvania
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    INFORMATION ABOUT THE ANNUAL MEETING
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CORPORATE GOVERNANCE
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    PROPOSAL&#160;ONE&#160;&#151; ELECTION OF DIRECTORS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    MEETINGS AND COMMITTEES OF THE BOARD OF DIRECTORS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    EXECUTIVE OFFICERS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    COMPENSATION DISCUSSION AND ANALYSIS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    REPORT OF THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    EXECUTIVE COMPENSATION
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    COMPENSATION OF DIRECTORS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    PROPOSAL&#160;TWO&#160;&#151; APPROVAL OF THE AMENDMENT TO OUR
    2006 LONG-TERM INCENTIVE PLAN
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    INTEREST OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    PROPOSAL&#160;THREE&#160;&#151; RATIFICATION OF THE APPOINTMENT
    OF THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    PRINCIPAL ACCOUNTING FIRM FEES
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    SHARE OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    SECTION&#160;16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    OTHER MATTERS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    STOCKHOLDER PROPOSALS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    ANNUAL REPORT ON
    <FONT style="white-space: nowrap">FORM&#160;10-K</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    WHERE YOU CAN FIND MORE INFORMATION
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    APPENDIX A&#160;&#151; 2006 LONG-TERM INCENTIVE PLAN, AS AMENDED
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A-1
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">ALESCO FINANCIAL INC.<BR>
    </FONT>Cira Centre, 2929 Arch
    Street,&#160;17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
    Floor<BR>
    Philadelphia, Pennsylvania 19104</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">PROXY STATEMENT</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>ANNUAL MEETING OF STOCKHOLDERS</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>To Be Held On June&#160;18, 2008</B>
</DIV>
<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    ABOUT THE ANNUAL MEETING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Introduction</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are sending this proxy statement and the enclosed proxy card
    to our stockholders on or about April&#160;29, 2008 in
    connection with the solicitation of proxies by the Board of
    Directors of Alesco Financial Inc., a Maryland corporation, for
    use at the 2008 annual meeting of stockholders to be held on
    June&#160;18, 2008 at 10:00&#160;a.m., local time, at the
    company&#146;s headquarters located at Cira Centre, 2929 Arch
    Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor,
    Philadelphia, Pennsylvania 19104, or at any postponement or
    adjournment of the meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Who May
    Vote</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Only holders of record of the company&#146;s shares of common
    stock at the close of business on April&#160;24, 2008, the
    record date for the annual meeting, are entitled to receive
    notice of and to vote at the meeting or any adjournment or
    postponement thereof. Each stockholder of record on the record
    date is entitled to one vote on each matter properly brought
    before the meeting for each share of common stock held.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">How You
    May Vote</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may vote using any of the following methods:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>BY MAIL:</I>&#160;&#160;Mark, sign, and date your proxy card
    and return it in the postage-paid envelope we have provided. The
    named proxies will vote your shares according to your
    directions. If you submit a signed proxy card without indicating
    your vote, the named proxies will vote your shares in favor of
    the nominees named in this proxy statement and the other
    proposals.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>BY TELEPHONE OR OVER THE INTERNET:</I>&#160;&#160;Authorize a
    proxy by telephone or over the Internet by following the
    instructions on the accompanying proxy card. If you hold shares
    of the company&#146;s common stock in &#147;street name,&#148;
    please refer to the voting instruction form used by your broker,
    bank or nominee to see if you may submit voting instructions
    using the Internet or the telephone. If you vote by telephone or
    via the Internet, you do not need to return your proxy card.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>BY ATTENDING THE ANNUAL MEETING IN
    PERSON:</I>&#160;&#160;Attend the meeting and vote in person. If
    your shares are held in the name of a bank, broker or other
    nominee, you must obtain a proxy from the record holder,
    executed in your favor, and bring it with you to hand in with
    your ballot, in order to be able to vote in person at the
    meeting.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We encourage stockholders to submit proxies in advance. Voting
    by proxy will in no way limit your right to attend and vote at
    the meeting if you later decide to attend in person. You may
    revoke your proxy at any time before it is exercised by:
    (i)&#160;giving written notice of revocation no later than the
    commencement of the meeting to our Secretary, Daniel Munley, at
    Alesco Financial Inc., Cira Centre, 2929 Arch Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor,
    Philadelphia, Pennsylvania 19104; (ii)&#160;delivering no later
    than the commencement of the meeting a properly executed,
    later-dated proxy;&#160;or (iii)&#160;voting in person at the
    meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The named proxies will vote upon any other business that may
    properly come before the meeting according to their best
    judgment to the same extent as the person delivering the proxy
    would be entitled to vote. Other than the election of directors,
    the amendment to the company&#146;s 2006 Long-Term Incentive
    Plan
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and the ratification of the appointment of Ernst&#160;&#038;
    Young LLP as the company&#146;s independent registered public
    accounting firm for the fiscal year ending December&#160;31,
    2008, we do not anticipate that any other matters will be raised
    at the meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Quorum</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The presence, in person or represented by proxy, of stockholders
    entitled to cast a majority of the votes entitled to be cast at
    the meeting is necessary to constitute a quorum at the meeting.
    As of the record date, there were 59,455,965&#160;shares of
    common stock outstanding and entitled to vote at the meeting. If
    a quorum is not present at the meeting, the stockholders,
    present in person or represented by proxy, or the presiding
    officer at the meeting have the power to adjourn the meeting
    until a quorum is present or represented.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Required
    Vote to Approve Each Proposal</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The affirmative vote of a plurality of all of the votes cast in
    the election of directors at the meeting at which a quorum is
    present is necessary for the election of a director. For
    purposes of the election of directors, abstentions and broker
    non-votes will not be counted as votes cast and will have no
    effect on the result of the vote, although they will be
    considered present for the purpose of determining the presence
    of a quorum. A broker &#147;non-vote&#148; occurs when a nominee
    holding common stock does not vote on a particular proposal
    because the nominee does not have discretionary voting power
    with respect to that item and has not received instructions from
    the beneficial owner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The affirmative vote of a majority of the votes cast on the
    proposal is required for approval of the amendment to the 2006
    Long-Term Incentive Plan, provided that the total vote cast on
    the proposal represents over 50% in interest of all securities
    entitled to vote on the proposal. For purposes of the vote on
    the amendment to the 2006 Long-Term Incentive Plan, abstentions
    will have the same effect as votes against the proposal and
    broker non-votes will have the same effect as votes against the
    proposal, unless holders of more than 50% in interest of all
    securities entitled to vote on the proposal cast votes, in which
    event broker non-votes will not have any effect on the result of
    the vote. Both abstentions and broker non-votes will be
    considered present for the purpose of determining the presence
    of a quorum.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The affirmative vote of a majority of all of the votes cast on
    the proposal at a meeting at which a quorum is present is
    required for the ratification of the appointment of the
    independent registered public accounting firm and the approval
    of any other matters properly presented at the meeting. For
    purposes of the vote on the ratification of the appointment of
    the independent registered public accounting firm and the
    approval of any other matters properly presented at the meeting,
    abstentions and broker non-votes will not be counted as votes
    cast and will have no effect on the vote, although they will be
    considered present for the purpose of determining the presence
    of a quorum.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None of the proposals, if approved, entitle stockholders to
    appraisal rights under Maryland law or our charter documents.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Other
    Information to Review Before Voting</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For your review, the company&#146;s annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007 is being mailed to you
    concurrently with the mailing of this proxy statement. This
    proxy statement and our annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    are also both available on our website at
    <I><FONT style="white-space: nowrap">http://www.alescofinancial.com</FONT></I>.
    The annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    does not constitute a part of this proxy statement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Householding
    of Proxy Material</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Securities and Exchange Commission, or the SEC, has adopted
    rules that permit companies and intermediaries (such as banks
    and brokers) to satisfy the delivery requirements for proxy
    statements and annual reports with respect to two or more
    stockholders sharing the same address by delivering a single
    proxy statement addressed to those stockholders. This process,
    which is commonly referred to as &#147;householding,&#148; can
    result in significant cost savings. This year, a number of
    brokers with account holders who are our
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    stockholders will be &#147;householding&#148; our proxy
    materials. A single proxy statement will be delivered to
    multiple stockholders who share an address unless we received
    contrary instructions from the impacted stockholders prior to
    the mailing date. Once you have received notice from your broker
    that they will be &#147;householding&#148; communications to
    your address, &#147;householding&#148; will continue until you
    are notified otherwise or until you revoke your consent. If, at
    any time, you no longer wish to participate in
    &#147;householding&#148; and would prefer to receive a separate
    proxy statement and annual report, please notify your broker or
    direct your request in writing or by phone to our Secretary,
    Daniel Munley, at Alesco Financial Inc., Cira Centre, 2929 Arch
    Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor,
    Philadelphia, Pennsylvania 19104; phone:
    <FONT style="white-space: nowrap">(215)&#160;701-9632.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you are a stockholder sharing an address with another
    stockholder who receives multiple copies of the proxy materials
    and wish to request &#147;householding&#148; of your
    communications, please contact us at the above address or
    telephone number.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Cost of
    Proxy Solicitation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All expenses in connection with the solicitation of proxies will
    be borne by us. In addition to solicitation by mail, proxies may
    be solicited on our behalf by our directors, officers, employees
    or soliciting service in person, by telephone, facsimile or by
    other electronic means. We have also retained MacKenzie
    Partners, Inc. to aid in the solicitation of proxies. We
    estimate that the fees we pay to MacKenzie Partners, Inc. for
    its role as proxy solicitor will be approximately $5,000 plus
    the reimbursement of reasonable out-of-pocket expenses. In
    accordance with SEC regulations and the rules of the New York
    Stock Exchange, Inc., which is referred to herein as the NYSE,
    we will reimburse brokerage firms and other custodians, nominees
    and fiduciaries for their expenses incurred in mailing proxies
    and proxy materials and soliciting proxies from the beneficial
    owners of our common stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Questions
    and Additional Copies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you have any questions about how to submit your proxy, or if
    you need additional copies of this proxy statement or the
    enclosed proxy card, you should contact:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    MacKenzie Partners, Inc.<BR>
    105 Madison Avenue<BR>
    New York, NY 10016<BR>
    Phone:
    <FONT style="white-space: nowrap">(800)&#160;322-2885</FONT>
    or
    <FONT style="white-space: nowrap">(212)&#160;929-5500</FONT><BR>
    Fax:
    <FONT style="white-space: nowrap">(212)&#160;929-0308</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If you have any questions with respect to the company or the
    matters described herein, you should contact:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Alesco Financial Inc.<BR>
    Cira Centre<BR>
    2929 Arch Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
    Floor<BR>
    Philadelphia, Pennsylvania 19104<BR>
    Attn: John J. Longino<BR>
    Phone:
    <FONT style="white-space: nowrap">(215)&#160;701-8952</FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CORPORATE
    GOVERNANCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This section of our proxy statement contains information about a
    variety of our corporate governance policies and practices. In
    this section, you will find information about how we are
    complying with the corporate governance rules of the NYSE which
    were approved by the SEC. We are committed to operating our
    business under strong and accountable corporate governance
    practices. You are encouraged to visit the corporate governance
    section of our corporate website at
    <I><FONT style="white-space: nowrap">http://www.alescofinancial.com</FONT>
    </I>to view our corporate governance guidelines. The information
    found on, or accessible through, our website is not incorporated
    into, and does not form a part of, this proxy statement or any
    other report or document we file with or furnish to the SEC.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Corporate
    Governance Guidelines</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board of Directors has adopted corporate governance
    guidelines pursuant to Section&#160;303A.09 of the NYSE Listed
    Company Manual, which are designed to assist our management and
    Board of Directors in meeting their corporate governance
    responsibilities. Our corporate governance guidelines include,
    among other things, guidelines relating to (i)&#160;the
    composition of our Board of Directors, including independence
    requirements, director selection process, membership criteria,
    responsibilities, functions and compensation; (ii)&#160; Board
    meetings, including frequency, agenda and access to information;
    (iii)&#160;committees of our Board of Directors, including
    committee member selection and committee functions;
    (iv)&#160;management responsibilities; and (v)&#160;director
    orientation and continuing education. Our Nominating and
    Corporate Governance Committee is responsible for assessing and
    periodically reviewing the adequacy of the corporate governance
    guidelines and will recommend, as appropriate, proposed changes
    to our Board of Directors. Our corporate governance guidelines
    are available on our website at
    <I>http://www.alescofinancial.com</I> and are also available in
    print to any stockholder who requests a copy by submitting a
    written request to our Secretary, Daniel Munley, at Alesco
    Financial Inc., Cira Centre, 2929 Arch Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor,
    Philadelphia, Pennsylvania 19104.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Code of
    Business Conduct and Ethics</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have established a Code of Business Conduct and Ethics, or
    the Code, which sets forth basic principles of conduct and
    ethics to guide all of our employees, officers and directors.
    The purpose of the Code is to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Promote honest and ethical conduct, including fair dealing and
    the ethical handling of actual or apparent conflicts of interest
    between personal and professional relationships;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Promote avoidance of conflicts of interest, including disclosure
    to an appropriate person or committee of any material
    transaction or relationship that reasonably could be expected to
    give rise to such a conflict;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Promote full, fair, accurate, timely and understandable
    disclosure in reports and documents that we file with, or submit
    to, the SEC and in our other public communications;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Promote compliance with applicable governmental laws, rules and
    regulations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Promote the prompt internal reporting to an appropriate person
    or committee of violations of the Code;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Promote accountability for adherence to the Code;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Provide guidance to employees, officers and directors to help
    them recognize and deal with ethical issues;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Provide mechanisms to report unethical conduct;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Help foster our long-standing culture of honesty and
    accountability.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A waiver of any provision of the Code as it relates to any
    director or executive officer must be approved by our Board of
    Directors without the involvement of any director who will be
    personally affected by the waiver or by a committee consisting
    entirely of directors, none of whom will be personally affected
    by the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    waiver. Waivers of the Code for directors or executive officers
    will be promptly disclosed to our stockholders as required by
    applicable law. A waiver of any provision of the Code as it
    relates to any other officer or employee must be approved by our
    chief financial officer or chief legal officer, if any, but only
    upon such officer or employee making full disclosure in advance
    of the behavior in question.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Code is available on our website at
    <I>http://www.alescofinancial.com </I>and is also available in
    print to any stockholder who requests a copy by submitting a
    written request to our Secretary, Daniel Munley, at Alesco
    Financial Inc., Cira Centre, 2929 Arch Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor,
    Philadelphia, Pennsylvania 19104.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Independence</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board of Directors is comprised of a majority of independent
    directors. In order for a director to be considered
    &#147;independent,&#148; our Board of Directors must
    affirmatively determine, based upon its review of all relevant
    facts and circumstances and after considering all applicable
    relationships, if any, that each of the directors has no direct
    or indirect material relationship with the company or its
    affiliates and satisfies the criteria for independence
    established by the NYSE and the applicable rules promulgated by
    the SEC. Our Board of Directors has determined that each of the
    following members of the Board of Directors is independent:
    Rodney E. Bennett, Marc Chayette, Thomas P. Costello, G. Steven
    Dawson, Jack Haraburda, Lance Ullom and Charles W. Wolcott. Our
    Board of Directors has determined that Daniel G. Cohen and James
    J. McEntee,&#160;III, our two other directors, are not
    independent because they are also executive officers of our
    company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is the policy of our Board of Directors that the independent
    members of our Board of Directors meet separately without
    management directors at least twice per year during regularly
    scheduled Board meetings to discuss such matters as the
    independent directors consider appropriate. In 2007, our
    independent directors met separately without management
    directors two times.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Nomination
    of Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board of Directors is responsible for the selection of
    nominees for election or appointment to the Board of Directors
    based on recommendations of the Nominating and Corporate
    Governance Committee. The Nominating and Corporate Governance
    Committee may consider nominees recommended by management and
    stockholders using the criteria approved by the Board of
    Directors to evaluate all candidates. The Nominating and
    Corporate Governance Committee reviews each candidate&#146;s
    qualifications, including whether a candidate possesses any of
    the specific qualities and skills desirable for members of the
    Board. Evaluations of candidates generally involve a review of
    background materials, internal discussions and interviews with
    selected candidates as appropriate. Upon selection of a
    qualified candidate, the Nominating and Corporate Governance
    Committee recommends the candidate for consideration by the full
    Board of Directors. The Nominating and Corporate Governance
    Committee may engage consultants or third-party search firms to
    assist in identifying and evaluating potential nominees.
    Nominees for the Board of Directors should be committed to
    enhancing long-term stockholder value and must possess a high
    level of personal and professional ethics, sound business
    judgment and integrity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board of Directors&#146; policy is to encourage selection of
    directors who will contribute to our overall corporate goals.
    The Nominating and Corporate Governance Committee may, from time
    to time, review the appropriate skills and characteristics
    required of members of our Board of Directors, including such
    factors as business experience, diversity and personal skills in
    finance, marketing, financial reporting and other areas that are
    expected to contribute to an effective Board. In evaluating
    potential candidates for our Board of Directors, the Nominating
    and Corporate Governance Committee will consider these factors
    in light of the specific needs of the Board at that time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Nominating and Corporate Governance Committee may consider
    director candidates recommended by our stockholders. Our
    Nominating and Corporate Governance Committee will apply the
    same standards in considering candidates submitted by
    stockholders as it does in evaluating candidates submitted by
    members of our Board of Directors. To recommend a prospective
    nominee for the Nominating and Corporate Governance
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Committee&#146;s consideration, the candidate&#146;s name and
    qualifications must be submitted in writing to our Secretary,
    Daniel Munley, at Alesco Financial Inc., Cira Centre, 2929 Arch
    Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor,
    Philadelphia, Pennsylvania 19104.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Communications
    with Our Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any employee, stockholder or other person may communicate with
    our Board of Directors or individual directors. Any such
    communications may be sent in writing to Alesco Financial Inc.,
    Cira Centre, 2929 Arch Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor,
    Philadelphia, Pennsylvania 19104, Attn: Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Audit Committee has also established procedures for
    (a)&#160;the receipt, retention, and treatment of complaints
    received by our company regarding accounting, internal
    accounting controls, or auditing matters and (b)&#160;the
    confidential, anonymous submission by our employees of concerns
    regarding questionable accounting or auditing matters. If you
    wish to contact our Audit Committee to report complaints or
    concerns relating to the financial reporting of our company, you
    may do so in writing to the Chairman of the Audit Committee at
    Alesco Financial Inc., Cira Centre, 2929 Arch Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor,
    Philadelphia, Pennsylvania 19104.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any such communications may be made anonymously. We also have a
    compliance hotline that may be used, on an anonymous basis or
    otherwise, to report any concerns or violations of our standards
    of conduct, policies or laws and regulations. The number to the
    hotline is
    <FONT style="white-space: nowrap">(800)&#160;399-3595.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Attendance at Annual Meeting</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although director attendance at our annual meeting each year is
    strongly encouraged, we do not have an attendance policy. Seven
    of our directors attended our 2007 annual meeting. We encourage
    all of our directors to attend this annual meeting.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;ONE&#160;&#151;
    ELECTION OF DIRECTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the Maryland General Corporation Law, our charter,
    and our Bylaws, as amended, our business, property and affairs
    are managed under the direction of our Board of Directors. Our
    Board of Directors, based on the recommendation of the
    Nominating and Corporate Governance Committee, has nominated the
    current directors, Messrs.&#160;Bennett, Chayette, Cohen,
    Costello, Dawson, Haraburda, McEntee, Ullom, and Wolcott, each
    to serve until the next annual meeting of the stockholders,
    until his successor has been duly elected and qualified, or
    until the earliest of his death, resignation or retirement. The
    persons named in the enclosed proxy card will vote your shares
    as you specify on the enclosed proxy card. If you return your
    properly executed proxy card but fail to specify how you want
    your shares voted, your shares will be voted in favor of each of
    these nominees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Nominating and Corporate Governance Committee knows of no
    reason why any of these nominees would be unable or unwilling to
    serve on the Board of Directors, but if any nominee should be
    unable or unwilling to serve, the proxies will be voted for the
    election of such other person for director as the Board of
    Directors, based on the recommendation of the Nominating and
    Corporate Governance Committee, may recommend in the place of
    such nominee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Names of
    Directors and Biographical Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Rodney E. Bennett</I>, age&#160;67, has served as our
    director since October&#160;15, 2003 and is currently a member
    of the Compensation Committee. Mr.&#160;Bennett was previously
    chairman of the of the board of directors and chairman of the
    audit committee of Sunset Financial Resources, Inc. prior to our
    merger with Alesco Financial Trust, or AFT, on October&#160;6,
    2006, and was also a member of the special committee in
    connection with our merger with AFT. From 2003 through 2007,
    Mr.&#160;Bennett served as the chief financial officer and
    director of Harvin Carter and Associates, Inc., a privately
    owned fire sprinkler contractor doing business in five
    southeastern states. He continues to serve as a director of that
    company. A career community banker, he has also served in
    various capacities and levels of management in banks in
    Southeast Georgia, including chief executive positions. Since
    July 1991, Mr.&#160;Bennett has acted as a consultant to various
    Georgia banks and private companies. He is currently a director
    and a member of the loan committee and the audit committee of
    FirstAtlantic Bank FSB, in Jacksonville, Florida, a
    <FONT style="white-space: nowrap">start-up</FONT>
    bank that opened in 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Marc Chayette</I>, age&#160;57, has served as our director
    and as a member of the Nominating and Corporate Governance
    Committee since October&#160;18, 2006. Mr.&#160;Chayette is a
    film and television producer with twenty-five years of
    experience in production and distribution of French feature
    films. Mr.&#160;Chayette created Adelaide Productions in 1988
    and has produced eight feature films. He is currently the
    president of Adelaide Productions. He started producing for
    television at the request of TF1 and produced an award winning
    dramatic comedy about an illiterate woman&#146;s determined
    quest to learn to read. Mr.&#160;Chayette has also been
    extremely active in co-producing documentary and feature films
    in African countries, helping African production companies to
    produce and distribute their cultural heritage. Before his
    career in production, Mr.&#160;Chayette created a chain of
    design furniture stores representing first Ligne Roset. The
    company still exists and is under contract with Roche Bobois.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Daniel G. Cohen</I>, age&#160;38, has served as the Chairman
    of the Board of Directors since October&#160;6, 2006 and as the
    Executive Chairman of the company since October&#160;18, 2006.
    He has also served as chief executive officer and trustee of
    RAIT Financial Trust (NYSE: RAS), a real estate finance company
    focused on the commercial real estate industry since December
    2006 when it merged with Taberna Realty Finance Trust.
    Mr.&#160;Cohen was chairman of the board of trustees of Taberna
    Realty Finance Trust from its inception in March 2005 until
    December 2006 and has been its chief executive officer since
    March 2005. In addition, Mr.&#160;Cohen has served as the
    chairman of the board of directors of Cohen Brothers, LLC (which
    does business as Cohen&#160;&#038; Company), an alternative
    investment management firm, since 2001. Mr. Cohen is currently a
    director of Star Asia Finance Limited, a joint venture investing
    in Asian commercial real estate, and the chairman of the board
    of directors of Muni Funding Company of America (OTC: MUNFL), a
    wholly-owned subsidiary of Cohen&#160;&#038; Company investing
    in middle-market non-profit organizations. Mr.&#160;Cohen was
    the chief executive officer of Cohen&#160;&#038; Company and its
    subsidiary, Cohen and Company Securities, LLC, a securities
    brokerage firm, from
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    September 2001 until February 2006. Since 2000, Mr.&#160;Cohen
    has been the chairman of the board of directors of The Bancorp,
    Inc. (NASDAQ: TBBK), a holding company for The Bancorp Bank,
    which provides various commercial and retail banking products
    and services to small and mid-size businesses and their
    principals in the United States. He also served as the chairman
    of the board of Dekania Acquisition Corp. (AMEX: DEK), a
    publicly held blank check company focused on acquiring
    businesses that operate within the insurance industry, from its
    inception in February 2006 until December 2006, and remains a
    director of Dekania Acquisition Corp. Mr.&#160;Cohen served as a
    member of the board of directors of TRM Corporation (NASDAQ:
    REXI), a publicly held consumer services company, from 2000 to
    September 2006 and as its chairman from 2003 to September 2006.
    From 1998 to 2000, Mr.&#160;Cohen served as the chief operating
    officer of Resource America Inc., a specialized asset management
    company. From 1997 to 1999, Mr.&#160;Cohen was a director of
    Jefferson Bank of Pennsylvania, a commercial bank acquired by
    Hudson United Bancorp in 1999.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Thomas P. Costello</I>, age&#160;62, has served as our
    director and Chairman of the Audit Committee since
    October&#160;6, 2006. Mr.&#160;Costello also served as a trustee
    and chairman of the audit committee of AFT&#146;s board of
    trustees from January 2006 until our merger with AFT.
    Mr.&#160;Costello served as a director for KPMG LLP from 2002 to
    2004. Prior to that, he was employed at Arthur Andersen LLP for
    35&#160;years, including serving as National Practice Director
    from 1996 to 2002, where he was responsible for the accounting
    and audit practices of 19 Arthur Andersen offices in the
    southeast region of the United States. From 1985 to 1996, he
    served as partner in charge of the accounting and audit practice
    in Arthur Andersen&#146;s Philadelphia office. Prior to that, he
    acted as engagement partner where he served clients in numerous
    industries and worked with both large multinational and small
    and mid-sized public companies. Mr.&#160;Costello also serves on
    the board of directors, and is the chairman of the audit
    committee, of Advanta Corp. (NASDAQ: ADVNA&#160;&#038; ADVNB), a
    Pennsylvania-based financial services company, and Advanta Bank,
    a Delaware State chartered bank, which is a subsidiary of
    Advanta Corp.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>G. Steven Dawson</I>, age&#160;50, has served as our director
    since January&#160;11, 2005 and currently serves as the Chairman
    of the Nominating and Corporate Governance Committee.
    Mr.&#160;Dawson was previously a member of the compensation
    committee and nominating and corporate governance committee for
    Sunset Financial Resources, Inc. and was also the chairman of
    the special committee in connection with our merger with AFT.
    Mr.&#160;Dawson is currently director and chief financial
    officer of Desert Capital REIT, Inc. (public but non-listed), a
    Las Vegas-based commercial mortgage REIT, and managing director
    of Sandstone Equity Investors, LLC, the outside advisor of
    Desert Capital REIT, Inc. He also serves on the board of
    directors of AmREIT, Inc. (AMEX: AMY), a Houston-based owner and
    developer of retail properties (chairman of the audit committee;
    member of the compensation committee and nominating and
    governance committee), Medical Properties Trust (NYSE: MPW), a
    Birmingham, Alabama-based REIT specializing in the ownership of
    acute care facilities and related medical properties (chairman
    of the audit committee) and American Campus Communities (NYSE:
    ACC), an Austin-based equity REIT focused on student housing
    (chairman of the audit committee; member of the compensation
    committee). From 1990 to 2003, Mr.&#160;Dawson served as chief
    financial officer of Camden Property Trust and its predecessors,
    a multi-family REIT based in Houston with apartment operations,
    construction and development activities throughout the United
    States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Jack Haraburda</I>, age&#160;69, has served as our director,
    a member of the Nominating and Corporate Governance Committee
    and the Chairman of the Compensation Committee since
    October&#160;6, 2006. Mr.&#160;Haraburda served as a trustee and
    chairman of the compensation committee of AFT&#146;s board of
    trustees from January 2006 until our merger with AFT.
    Mr.&#160;Haraburda is the managing partner of CJH Securities
    Information Group, a professional coaching business.
    Mr.&#160;Haraburda served as managing director for the
    Philadelphia Complex of Merrill Lynch, Pierce,
    Fenner&#160;&#038; Smith Incorporated from 2003 to 2005. He has
    also served in various positions at Merrill Lynch from 1984
    until 2003, including as managing director of Merrill
    Lynch&#146;s Princeton Complex, resident vice president of
    Merrill Lynch&#146;s Philadelphia Main Line Complex, marketing
    director and national sales manager of Merrill Lynch Life Agency
    and chairman of Merrill Lynch Metals Company. From 1980 to 1984,
    he was managing director of Comark Securities, a government
    securities dealer. From 1968 until 1980, he served as a
    financial advisor, national sales manager for the Commodity
    Division, manager of the Atlanta Commodity Office and the Bala
    Cynwyd office of Merrill Lynch.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>James J. McEntee</I>,&#160;III, age&#160;50, has served as
    our director and as our Chief Executive Officer and President
    since October&#160;6, 2006. Since 2003, Mr.&#160;McEntee has
    served as the chief operating officer of Cohen&#160;&#038;
    Company, an alternative investment management firm that provides
    financing to small and mid-sized companies in financial
    services, real estate and other sectors. He also serves as a
    director of The Bancorp Bank, a bank holding company. Prior to
    joining Cohen&#160;&#038; Company, Mr.&#160;McEntee was the
    co-founder and co-managing partner of Harron Capital, LP, a
    private equity fund, from 1999 to 2002. Mr.&#160;McEntee held
    various positions as a lawyer in private practice with the law
    firm of Lamb, Windle&#160;&#038; McErlane,&#160;P.C. from 1990
    to 2003, including as a partner and chairman of the firm&#146;s
    business department.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Lance Ullom</I>, age&#160;39, has served as our director and
    a member of the Audit Committee and the Compensation Committee
    since October&#160;6, 2006. Prior to becoming a director of the
    company, he served as a trustee and chairman of the nominating
    and corporate governance committee of AFT&#146;s board of
    trustees. From January&#160;2005 to November 2007, he was the
    executive vice president for E*TRADE Global Asset Management, or
    ETGAM. In this capacity he supervised all of ETGAM&#146;s
    investment activities in mortgage-backed securities and other
    asset backed securities, mortgage loans, commercial lending,
    municipal securities, trust preferred securities, or TruPS,
    derivative products and collateralized debt obligation, or CDO,
    businesses. From 1996 to 2000, Mr.&#160;Ullom worked at Arbor
    Capital, a licensed broker dealer/mortgage hedge fund based in
    New York City, where he was responsible for trading structured
    bonds and whole loans. From 1991 to 1996, Mr.&#160;Ullom worked
    at Barclay Investments in various capacities from institutional
    sales to co-head of trading for all mortgage products.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Charles W. Wolcott</I>, age&#160;55, has served as our
    director since September&#160;26, 2005 and is currently a member
    of the Audit Committee. He previously served as a member of the
    special committee in connection with our merger with AFT.
    Mr.&#160;Wolcott is currently president and chief executive
    officer of Allied Wolcott Company LLC, a company that
    specializes in the area of conservation real estate
    transactions. Since August 2007, he has also served as a
    director to Desert Capital REIT, Inc. (public but non-listed), a
    Las Vegas-based commercial mortgage REIT. From 2002 to 2006, he
    was the president and chief executive officer of Tecon
    Corporation, a diversified business operator. From 1993 to 2001,
    he was the president and chief executive officer of American
    Industrial Properties REIT (OTC: IND), a REIT that specializes
    on light industrial and office/flex space. From 1984 to 1992,
    Mr.&#160;Wolcott served in various capacities at Trammell Crow
    Company, a real estate management company, including president
    and chief executive officer of Trammell Crow Asset Services,
    where he oversaw a $10&#160;billion portfolio of real estate
    assets. Mr.&#160;Wolcott received his M.B.A. from Harvard
    Business School in 1977.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Board of Directors unanimously recommends that you vote
    &#147;FOR&#148; the election of the nine nominees listed above
    and set forth in Proposal&#160;1</B>. In the absence of
    instructions to the contrary, proxies solicited in connection
    with this proxy statement will be voted for such nominees.
</DIV>
<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MEETINGS
    AND COMMITTEES OF THE BOARD OF DIRECTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Meetings
    of the Board of Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the 2007 fiscal year, our Board of Directors held 14
    meetings. Each of the directors attended at least 75% of the
    total number of meetings of our Board of Directors held during
    2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Committees
    of the Board of Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors currently has three standing committees:
    the Audit Committee, the Compensation Committee and the
    Nominating and Corporate Governance Committee. The Board of
    Directors has affirmatively determined that each committee
    member satisfies the independence requirements of the NYSE and
    the SEC for membership on our Board committees. From time to
    time our Board of Directors may establish a new committee or
    disband a current committee depending upon the circumstances.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Audit
    Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The members of the Audit Committee are Messrs.&#160;Costello,
    Ullom and Wolcott. Mr.&#160;Costello is the Chairman of the
    Audit Committee. Our Board of Directors has determined that each
    of the members of the Audit Committee is &#147;independent&#148;
    within the meaning of the rules of the NYSE and the SEC and that
    each of the members of the Audit Committee is financially
    literate and has accounting or related financial management
    expertise, as such qualifications are defined under the rules of
    the NYSE. In addition, our Board of Directors has determined
    that Mr.&#160;Costello is an &#147;audit committee financial
    expert&#148; as defined by the SEC. The Audit Committee operates
    under a written charter that was originally adopted in 2006 and
    amended in 2007. A copy of the charter may be found on our
    website at
    <I><FONT style="white-space: nowrap">http://www.alescofinancial.com</FONT></I>
    and will be provided in print, without charge, to any
    stockholder who requests a copy. The Audit Committee met nine
    times in 2007. Each of the committee members attended at least
    75% of the total number of meetings of our Audit Committee held
    during fiscal year 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee has responsibility for engaging independent
    registered public accounting firms, reviewing with them the
    plans and results of the audit engagement, approving the
    professional services they provide to us, reviewing their
    independence and considering the range of audit and non-audit
    fees. The Audit Committee assists our Board of Directors with
    oversight of (i)&#160;the integrity of our financial statements;
    (ii)&#160;our compliance with legal and regulatory requirements;
    (iii)&#160;the qualifications, independence and performance of
    the registered public accounting firm we employ for the audit of
    our financial statements; and (iv)&#160;the performance of the
    people responsible for our internal audit function. Among other
    things, the Audit Committee prepares the Audit Committee report
    for inclusion in our annual proxy statement, conducts an annual
    review of its charter and evaluates its performance on an annual
    basis. The Audit Committee also establishes procedures for the
    receipt, retention, and treatment of complaints we receive
    regarding accounting, internal accounting controls and auditing
    matters and the confidential, anonymous submission by employees
    of concerns regarding questionable accounting or auditing
    matters. The Audit Committee has the authority to retain counsel
    and other experts or consultants at the company&#146;s expense
    that it deems necessary or appropriate to enable it to carry out
    its duties without seeking approval of the Board of Directors.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The members of the Compensation Committee are
    Messrs.&#160;Bennett, Haraburda and Ullom. Mr.&#160;Haraburda is
    the Chairman of the Compensation Committee. Our Board of
    Directors has determined that each of the members of the
    Compensation Committee is &#147;independent&#148; within the
    meaning of the rules of the NYSE.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee assists our Board of Directors in
    discharging its responsibilities relating to compensation of our
    directors and officers. The Compensation Committee has overall
    responsibility for evaluating, recommending changes to and
    administering our compensation plans, policies and programs.
    Among other things, the Compensation Committee (i)&#160;reviews
    the company&#146;s overall compensation structure, policies and
    programs; (ii)&#160;makes recommendations to the Board of
    Directors with respect to incentive-compensation plans and
    equity-based plans with respect to the management agreement
    between us and our manager; (iii)&#160;annually reviews the
    compensation of directors for service on the Board of Directors
    and its committees and recommends changes in Board compensation;
    (iv)&#160;annually reviews the performance of our Chief
    Executive Officer and communicates the results of the review to
    the Chief Executive Officer and the Board of Directors;
    (v)&#160;produces an annual report on executive compensation for
    inclusion in our annual proxy statement; (vi)&#160;annually
    reviews and reassesses the adequacy of its charter and
    recommends any proposed changes to the Board for approval; and
    (vii)&#160;annually reviews its performance. The Compensation
    Committee has authority to grant awards under our 2006 Long-Term
    Incentive Plan. The Compensation Committee also has the
    authority to retain counsel and other experts or consultants at
    the company&#146;s expense that it deems necessary or
    appropriate to enable it to carry out its duties without seeking
    approval of the Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee operates under a written charter that
    was originally adopted in 2006. A copy of the charter may be
    found on our website at
    <I><FONT style="white-space: nowrap">http://www.alescofinancial.com</FONT></I>
    and will be provided in print, without charge, to any
    stockholder who requests a copy. The Compensation Committee met
    three times
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    in 2007. Each of the committee members attended at least 75% of
    the total number of meetings of our Compensation Committee held
    during fiscal year 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Nominating
    and Corporate Governance Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The members of the Nominating and Corporate Governance Committee
    are Messrs.&#160;Chayette, Dawson and Haraburda. Mr.&#160;Dawson
    is the Chairman of the Nominating and Corporate Governance
    Committee. Our Board of Directors has determined that each of
    the members of the Nominating and Corporate Governance Committee
    is &#147;independent&#148; within the meaning of the rules of
    the NYSE.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Nominating and Corporate Governance Committee&#146;s primary
    functions are to (i)&#160;recommend to the Board of Directors
    qualified candidates for election as directors and recommend a
    slate of nominees for election as directors at our annual
    meeting; (ii)&#160;periodically prepare and submit to the Board
    of Directors for adoption its selection criteria for director
    nominees; (iii)&#160;review and make recommendations on matters
    involving the general operation of the Board of Directors,
    including development and recommendation of our corporate
    governance guidelines; (iv)&#160;annually recommend to the Board
    of Directors nominees for each committee of the Board; and
    (v)&#160;facilitate the assessment of the Board&#146;s
    performance as a whole and of the individual directors and
    report thereon to the Board of Directors. The Nominating and
    Corporate Governance Committee has the authority to retain
    counsel and other experts or consultants at the company&#146;s
    expense that it deems necessary or appropriate to enable it to
    carry out its duties without seeking the approval of the Board
    of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Nominating and Corporate Governance Committee operates under
    a written charter that was originally adopted in 2006. A copy of
    the charter may be found on our website at
    <I><FONT style="white-space: nowrap">http://www.alescofinancial.com</FONT></I>
    and will be provided in print, without charge, to any
    stockholder who requests a copy. The Nominating and Corporate
    Governance Committee met one time in 2007. All the committee
    members attended.
</DIV>
<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXECUTIVE
    OFFICERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are externally managed and advised by Cohen&#160;&#038;
    Company Management, LLC, which we refer to below as our manager.
    All of our current executive officers are employees of our
    manager or one or more of its affiliates. The following sets
    forth certain information with respect to our current executive
    officers:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Christian M. Carr</I>, age&#160;30, previously AFT&#146;s
    chief accounting officer and controller, has served as our Chief
    Accounting Officer since October&#160;6, 2006. Prior to joining
    Cohen&#160;&#038; Company in April 2006, Mr.&#160;Carr worked in
    public accounting at various levels within Arthur Andersen LLP
    and KPMG LLP, most recently as manager, where he served a
    variety of public and private companies with financial services
    and real estate businesses from 1999 through 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Daniel G. Cohen</I>, age&#160;38, previously AFT&#146;s
    chairman, has served as our Executive Chairman since
    October&#160;18, 2006. See &#147;Proposal&#160;One&#160;&#151;
    Election of Directors&#148; above for Mr.&#160;Cohen&#146;s
    biographical information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>James J. McEntee,&#160;III</I>, age&#160;50, previously
    AFT&#146;s president&#160;&#038; chief executive officer, has
    served as our President and Chief Executive Officer since
    October&#160;6, 2006. See &#147;Proposal&#160;One&#160;&#151;
    Election of Directors&#148; above for
    Mr.&#160;McEntee,&#160;III&#146;s biographical information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Shami J. Patel</I>, age&#160;39, previously AFT&#146;s chief
    operating officer, is currently serving as our Chief Operating
    Officer and Chief Investment Officer, positions he has held
    since October&#160;6, 2006. Mr.&#160;Patel has served as a
    managing director of Cohen&#160;&#038; Company since 2002 where
    he oversees the structuring and execution of our transactions.
    He was a member of the board of directors and a co-chief
    executive officer of iATMglobal.net Corp. from 2000 to 2002. He
    was the chief financial officer of TRM Corporation, a consumer
    services company, from 1999 to 2000. He also served as vice
    president for Sirrom Capital, a $500&#160;million mezzanine
    investment fund, from 1998 to 1999. Mr.&#160;Patel was an
    investment banker at Robertson Stephens&#160;&#038; Co. in the
    business services and specialty finance groups from 1997 to 1998.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>John J. Longino</I>, age&#160;50, previously AFT&#146;s chief
    financial officer and treasurer, is currently serving as our
    Chief Financial Officer and Treasurer, positions he has held
    since October&#160;6, 2006. Mr.&#160;Longino also serves as an
    executive vice president of Cohen&#160;&#038; Company, which he
    joined in 2005. Mr.&#160;Longino was co-founder and co-managing
    partner of Apex Integrated Solutions LLC, a provider of
    outsourced accounting and finance services, from 2002 to 2005.
    Mr.&#160;Longino worked in public accounting from 1980 to 2002
    at Arthur Andersen LLP, where he served a variety of public and
    private companies with real estate and financial services
    businesses. As a partner with Arthur Andersen LLP,
    Mr.&#160;Longino had responsibility for various public
    offerings, due diligence engagements and SEC matters. Also, from
    1995 to 2000, Mr.&#160;Longino served as the
    <FONT style="white-space: nowrap">partner-in-charge</FONT>
    of administration and chief financial officer for Arthur
    Andersen&#146;s Mid-Atlantic Market Circle, which included the
    firm&#146;s Washington,&#160;D.C., Philadelphia, Baltimore,
    Lancaster and Richmond offices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Messrs.&#160;Longino and Carr are exclusively dedicated to our
    business; however, they are employees of our manager.
    Messrs.&#160;Cohen, McEntee and Patel have other duties with
    Cohen&#160;&#038; Company and its affiliates and are not
    exclusively dedicated to our business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No director or executive officer was selected as a result of any
    arrangement or understanding between the director or executive
    officer or any other person. All executive officers are
    appointed annually by, and serve at the discretion of, our Board
    of Directors.
</DIV>
<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">COMPENSATION
    DISCUSSION AND ANALYSIS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This section of the proxy statement describes our compensation
    program, objectives and policies for our executive officers. It
    provides qualitative information regarding the manner and
    context in which compensation is awarded to, and earned by, our
    executive officers and places in perspective the data presented
    in the tables and narrative below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have no employees. Pursuant to a management agreement between
    our manager and us, our manager is responsible for managing our
    business affairs. For more information regarding the various
    fees paid by us to our manager for advisory and other services
    performed under a management agreement, please see &#147;Certain
    Relationships and Related Party Transactions&#160;&#151;
    Transactions with Cohen&#160;&#038; Company and Management
    Team&#160;&#151; Management Agreement.&#148; All of our
    executive officers are employees of our manager or one or more
    of its affiliates. We do not pay cash compensation to our
    executive officers. We also do not provide our executive
    officers with pension benefits, perquisites or other personal
    benefits to them. The only element of compensation that we
    provide our executive officers is equity compensation pursuant
    to our 2006 Long-Term Incentive Plan, which we refer to below as
    the Plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Philosophy and Objectives</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Before the completion of our merger with AFT, we generally
    compensated our executive officers through a combination of base
    salary, annual bonus compensation and awards of stock options
    and restricted shares of common stock, which we refer to herein
    as restricted shares. Since the completion of the merger, we do
    not pay or accrue any salaries, bonuses or other compensation to
    our executive officers, other than equity compensation which may
    be granted under our Plan. Our manager, for whom our executive
    officers are employed, pays the base salaries and bonuses to our
    executive officers. We do not control how such fees are
    allocated by our manager to its employees. We understand that
    our manager takes into account the performance of our company as
    a factor in determining the compensation of its employees, and
    such compensation may be increased or decreased depending on our
    company&#146;s performance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The goal of our compensation program is to attract, motivate and
    retain the highly talented individuals needed to operate,
    acquire, develop and grow our business over the long-term. As
    such, we seek to provide compensation that will support the
    achievement of our financial and growth goals and objectives.
    When our performance exceeds the goals and objectives
    established for a particular performance period, we believe that
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    our key personnel should be compensated appropriately. When our
    performance falls short of our financial or other objectives, we
    believe that our Compensation Committee should exercise its
    discretion in determining the appropriate compensation for our
    key personnel. To help achieve our goals and objectives and
    appropriately compensate our key personnel in light of our short
    and long-term performance and growth, we have structured an
    equity-based incentive compensation system designed to attract
    and maintain key personnel, induce them to remain with us, our
    subsidiaries and our manager and its affiliates, and encourage
    them to increase their efforts to make our business more
    successful.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Compensation Committee annually reviews our compensation
    programs to ensure that incentive opportunities are competitive
    and reflect our performance. The Compensation Committee may
    benchmark our compensation programs to comparative companies. To
    reinforce the importance of balancing short-term and long-term
    results, our key personnel may be provided with annual and
    long-term equity-based incentives granted under our Plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Equity-Based
    Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Plan is the only element of compensation that is subject to
    our discretion. The Plan is administered by the Compensation
    Committee, except that in certain circumstances the Board of
    Directors may act in its place. The purpose of the Plan is to
    attract key employees, directors, officers, advisors and
    consultants and to induce them to continue providing services to
    us and our subsidiaries and encourage them to increase their
    efforts to make our business more successful, whether directly
    or through our subsidiaries or other affiliates. In furtherance
    of these objectives, the Plan is designed to provide
    equity-based incentives to such persons in the form of options
    (including stock appreciation rights), restricted shares,
    phantom shares, dividend equivalent rights and other forms of
    equity based awards as contemplated by the Plan, with
    eligibility for such awards determined by the Compensation
    Committee. Our Compensation Committee and Board of Directors
    believe that awards of restricted shares, typically vesting over
    a period of three years or more, are the most effective of the
    equity-based incentives available under the Plan in
    accomplishing our compensation goals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Equity-based awards to key personnel are generally subject to
    vesting periods in order to support the achievement of our
    performance goals over the long-term and to help retain key
    personnel. The Compensation Committee determines the number and
    type of equity-based incentives that should be awarded from time
    to time to key personnel in light of our compensation goals and
    objectives. The Compensation Committee strongly believes that by
    providing our key personnel with the opportunity to increase
    their ownership of our equity, the interests of stockholders and
    our key personnel will be more closely aligned. In addition, the
    Compensation Committee believes that an equity-based
    compensation is particularly appropriate for our company since
    we are an externally managed real estate investment trust, or
    REIT. REIT regulations require us to pay at least 90% of our
    earnings to stockholders as dividends. As a result, the
    Compensation Committee believes that our stockholders are
    principally interested in receiving attractive risk-adjusted
    dividends and growth in dividends and book value. Accordingly,
    the Compensation Committee wants to provide an incentive to our
    key personnel that rewards success in achieving these goals.
    Since we do not have the ability to retain earnings, the
    Compensation Committee believes that equity-based awards serve
    to align the interests of our key personnel with the interests
    of our stockholders in receiving attractive risk-adjusted
    dividends and growth. The Compensation Committee believes that
    equity-based awards are consistent with our stockholders&#146;
    interest in book value growth as these individuals will be
    incentivized to grow book value for stockholders over time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee does not use a specific formula to
    calculate the number of equity awards awarded to executive
    officers under our Plan. The Compensation Committee does not
    explicitly set future award levels on the basis of what the
    executive officers earned from prior awards. While the
    Compensation Committee will take past levels into account, it
    will not solely base future awards in view of those past awards.
    Generally, in determining the specific amounts to be granted to
    an individual, the Compensation Committee will take into account
    factors such as the individual&#146;s position, his contribution
    to our performance, market practices as well as the
    recommendation of our manager and executive officers.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Accounting
    and Tax Considerations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;162(m) of the Internal Revenue Code of 1986, as
    amended, or the Internal Revenue Code, generally disallows a tax
    deduction to public corporations for compensation, other than
    performance-based compensation over $1&#160;million paid to the
    principal executive officer, principal financial officer and the
    next three highest compensated executive officers to the extent
    that compensation of a particular executive exceeds
    $1&#160;million in any one year. There are certain exceptions
    for qualified performance-based compensation in accordance with
    the Internal Revenue Code and corresponding regulations.
    However, given the fact that we are presently externally managed
    by our manager and the only compensation that currently may be
    paid to our executive officers are incentive awards pursuant to
    our Plan, it is unlikely that Section&#160;162(m) will have any
    material effect on us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Beginning on January&#160;1, 2006, we began accounting for
    stock-based payments through our Plan in accordance with the
    requirements of the Statement of Financial Accounting Standards
    No.&#160;123(R), &#147;Share-Based Payment,&#148; or
    FAS&#160;123R.
</DIV>
<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">REPORT OF
    THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following report of the Compensation Committee does not
    constitute soliciting material and shall not be deemed filed or
    incorporated by reference into any other company filing under
    the Securities Act of 1933 or the Securities Exchange Act of
    1934, as amended, except to the extent the company specifically
    incorporates this report of the Compensation Committee by
    reference therein.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee is comprised entirely of independent
    directors as determined by the Board of Directors within the
    meaning of the applicable NYSE listing standards currently in
    effect. The Board designates the members and the Chairman of the
    Compensation Committee on an annual basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee has reviewed and discussed with
    management the Compensation Discussion and Analysis contained in
    this proxy statement. Based on this review and discussion, the
    Compensation Committee recommended to the Board of Directors
    that the Compensation Discussion and Analysis be included in
    this proxy statement and incorporated by reference in the
    company&#146;s annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended December&#160;31, 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Respectfully Submitted,
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Compensation Committee</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Jack Haraburda, Chairman
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rodney E. Bennett
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Lance Ullom
</DIV>
<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXECUTIVE
    COMPENSATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;6, 2006, upon completion of our merger with AFT,
    we assumed AFT&#146;s management agreement with
    Cohen&#160;&#038; Company Management, LLC, our manager. Pursuant
    to the terms of the management agreement, our manager is
    responsible for managing our affairs. As of October&#160;6, 2006
    all of our executive officers are employees of our manager or
    one or more of its affiliates and our manager or its affiliates
    compensates each of our executive officers. Our executive
    officers do not receive cash compensation from us for serving as
    our executive officers. However, we may from time to time, at
    the discretion of the Compensation Committee, grant options to
    purchase shares of common stock, restricted shares and other
    equity-based awards to our executive officers pursuant to our
    Plan. For a description of the management agreement, please see
    &#147;Certain Relationships and Related Party
    Transactions&#160;&#151; Transactions with Cohen&#160;&#038;
    Company and Management Team&#160;&#151; Management
    Agreement.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    of Executive Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the equity compensation awarded
    by us to James J. McEntee,&#160;III, our Chief Executive Officer
    and President, John J. Longino, our Chief Financial Officer and
    Treasurer, and our three other most highly compensated executive
    officers for the fiscal year ended December&#160;31, 2007, which
    we refer to herein as our &#147;named executive officers.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Compensation Table</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Change in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Pension<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Value and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Non-Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Nonqualified<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Deferred<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Salary<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Bonus<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Earnings<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name and Principal Position</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Year</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)(2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt; z-index: 1; position: relative">
    James J. McEntee,&#160;III,
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2007
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    420,578
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    312,533
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    733,111
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 8pt; z-index: 1; position: relative">
    Chief Executive Officer&#160;&#038; President(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2006
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    John J. Longino
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2007
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    355,805
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    125,778
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    481,583
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 8pt">
    Chief Financial Officer&#160;&#038; Treasurer(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2006
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    138,794
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    11,886
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    150,680
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt; z-index: 1; position: relative">
    Daniel G. Cohen
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2007
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    656,004
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    503,370
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1,159,374
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 8pt; z-index: 1; position: relative">
    Chairman of the Board of Directors&#160;&#038; Executive
    Officer(5)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2006
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Shami J. Patel
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2007
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    340,037
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    98,598
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    438,635
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 8pt">
    Chief Operating Officer&#160;&#038; Chief Investment Officer(6)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2006
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    161,926
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    13,867
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    175,793
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt; z-index: 1; position: relative">
    Christian M. Carr
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2007
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    34,015
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    26,225
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    60,240
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 8pt; z-index: 1; position: relative">
    Chief Accounting Officer(7)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2006
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    &#151;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Amounts in this column do not
    reflect equity compensation actually received by the named
    executive officer. Amount shown represent compensation costs
    recognized by the company during the fiscal years ended
    December&#160;31, 2007 and 2006 for restricted shares using the
    fair value based methodology prescribed by FAS&#160;123R and
    EITF Issue
    <FONT style="white-space: nowrap">No.&#160;96-18.</FONT>
    &#147;Accounting for Equity Instruments That Are Issued to Other
    Than Employees for Acquiring, or in Conjunction with Selling,
    Goods or Services,&#148; or EITF
    <FONT style="white-space: nowrap">No.&#160;96-18.</FONT>
    The assumptions used by the company to calculate the value of
    these restricted shares are incorporated herein by reference to
    Note&#160;8 to the consolidated financial statements included in
    the company&#146;s annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007. At December&#160;31,
    2007, the aggregate number of restricted shares outstanding was
    as follows: Mr.&#160;McEntee,&#160;III&#160;&#151; 251,446;
    Mr.&#160;Longino&#160;&#151; 101,293; Mr.&#160;Cohen&#160;&#151;
    417,988; Mr.&#160;Patel&#160;&#151; 76,034; and
    Mr.&#160;Carr&#160;&#151; 21,874.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Represents dividends paid on the
    restricted shares held by the named executive officers.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Mr.&#160;McEntee has served as our
    Chief Executive Officer and President since October&#160;6, 2006
    when we consummated our merger with AFT. Mr.&#160;McEntee is an
    employee of Cohen&#160;&#038; Company and received no cash
    compensation from us in 2007 and 2006.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Mr.&#160;Longino has served as our
    Chief Financial Officer and Treasurer since October&#160;6, 2006
    when we consummated our merger with AFT. Mr.&#160;Longino is an
    employee of Cohen&#160;&#038; Company and received no cash
    compensation from us in 2007 and 2006.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Mr.&#160;Cohen has served as our
    Chairman of the Board of Directors since October&#160;6, 2006
    and when we consummated our merger with AFT and as our Executive
    Chairman since October&#160;18, 2006. Mr.&#160;Cohen is an
    employee of Cohen&#160;&#038; Company and received no cash
    compensation from us in 2007 and 2006.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Mr.&#160;Patel has served as our
    Chief Operating Officer and Chief Investment Officer since
    October&#160;6, 2006 when we consummated our merger with AFT.
    Mr.&#160;Patel is an employee of Cohen&#160;&#038; Company and
    received no cash compensation from us in 2007 and 2006.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(7)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Mr.&#160;Carr has served as our
    Chief Accounting Officer since October&#160;6, 2006 when we
    consummated our merger with AFT. Mr.&#160;Carr is an employee of
    Cohen&#160;&#038; Company and received no cash compensation from
    us in 2007 and 2006.
    </FONT></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Grants of
    Plan-Based Awards in 2007</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth certain information with respect
    to each award made under our Plan to a named executive officer
    in the fiscal year ended December&#160;31, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="25%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=11 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=11 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=11 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=11 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=12 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=12 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=12 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=12 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Grant<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Date<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards;<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exercise or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Fair<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Base<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Value of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom">
    <B>Estimated Future Payouts Under Non-Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom">
    <B>Estimated Future Payouts<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Price of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock and<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Incentive Plan Awards</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Under Equity Incentive Plan Awards</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Grant<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Threshold<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Target<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Threshold<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Target<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Units<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards(1)<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 6pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Date</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($/Sh)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt; z-index: 1; position: relative">
    James J. McEntee,&#160;III&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    01/31/2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    179,705
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,036,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    05/25/2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    140,000
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,394,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    John J. Longino
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    01/31/2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,300
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    309,309
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    05/25/2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80,000
</TD>
<TD nowrap align="left" valign="bottom">
    (5)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    796,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt; z-index: 1; position: relative">
    Daniel G. Cohen
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    01/31/2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    246,205
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,789,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    05/25/2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    280,000
</TD>
<TD nowrap align="left" valign="bottom">
    (7)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,788,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    Shami J. Patel
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    01/31/2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,500
</TD>
<TD nowrap align="left" valign="bottom">
    (8)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    152,955
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    05/25/2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60,000
</TD>
<TD nowrap align="left" valign="bottom">
    (9)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    597,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -7pt; margin-left: 7pt; z-index: 1; position: relative">
    Christian M. Carr
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    01/31/2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,500
</TD>
<TD nowrap align="left" valign="bottom">
    (10)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    141,625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    05/25/2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
    (11)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The value of a stock award is based
    on the fair value as of the grant date of such award determined
    pursuant to FAS&#160;123R.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Vests, pro rata, on the last day of
    each three-month period commencing on April&#160;30, 2007 and
    ending on January&#160;31, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Vests, pro rata, on the last day of
    each three-month period commencing on July&#160;31, 2007 and
    ending on April&#160;31, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Vests, pro rata, on the last day of
    each three-month period commencing on April&#160;30, 2007 and
    ending on January&#160;31, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Vests, pro rata, on the last day of
    each three-month period commencing on July&#160;31, 2007 and
    ending on April&#160;31, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Vests, pro rata, on the last day of
    each three-month period commencing on April&#160;30, 2007 and
    ending on January&#160;31, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(7)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Vests, pro rata, on the last day of
    each three-month period commencing on July&#160;31, 2007 and
    ending on April&#160;31, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(8)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Vests, pro rata, on the last day of
    each three-month period commencing on April&#160;30, 2007 and
    ending on January&#160;31, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(9)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Vests, pro rata, on the last day of
    each three-month period commencing on July&#160;31, 2007 and
    ending on April&#160;31, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(10)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Vests, pro rata, on the last day of
    each three-month period commencing on April&#160;30, 2007 and
    ending on January&#160;31, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(11)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Vests, pro rata, on the last day of
    each three-month period commencing on July&#160;31, 2007 and
    ending on April&#160;31, 2010.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Outstanding
    Equity Awards at Fiscal Year-End 2007</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the equity awards we have made to
    each of the named executive officers that were outstanding as of
    December&#160;31, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="28%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Option Awards</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Stock Awards</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Market or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Payout<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Market<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unearned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unearned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Units or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Units or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Units of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Units of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unexercised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unexercised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unexercised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Rights<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Rights<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unearned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>That Have<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>That Have<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>That Have<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>That Have<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(#)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(#)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Expiration<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Not Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Not Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Not Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Not Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exercisable</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Unexercisable</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Date</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    James J. McEntee,&#160;III
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    224,803
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    737,354
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    John J. Longino
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92,351
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    302,910
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Daniel G. Cohen
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    374,137
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,227,168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Shami J. Patel
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,509
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    231,270
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Christian M. Carr
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,583
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64,233
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The amounts set forth in this
    column equal the number of restricted shares indicated
    multiplied by the closing price of our common stock ($3.28) as
    reported by the NYSE on December&#160;31, 2007, the last trading
    day of 2007.
    </FONT></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Option
    Exercises and Stock Vested</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table shows information regarding option exercises
    and vesting of stock awards for each named executive officer
    during the year ended December&#160;31, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Option Awards</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Stock Awards</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares Acquired<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value Realized on<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares Acquired<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value Realized on<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>on Exercise (#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Exercise&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>on Vesting (#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Vesting(1)&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James J. McEntee,&#160;III(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    362,321
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John J. Longino(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,460
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    346,386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Daniel G. Cohen(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108,218
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    560,118
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shami J. Patel(5)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,393
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    353,363
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Christian M. Carr(6)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,004
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Amount reflects the market value of
    the stock on the day the stock vested.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Consists of (i)&#160;179,705
    restricted shares awarded on January&#160;31, 2007 under the
    Plan, which vest, pro rata, on the last day of each three-month
    period commencing on April&#160;30, 2007 and ending on
    January&#160;31, 2010; and (ii)&#160;140,000 restricted shares
    awarded on May&#160;25, 2007 under the Plan, which vest, pro
    rata, on the last day of each three-month period commencing on
    July&#160;31, 2007 and ending on April&#160;30, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Consists of
    (i)&#160;33,692&#160;shares of AFT restricted shares of
    beneficial interest, which were converted in our merger with AFT
    into 42,452 restricted shares of our common stock, one-third of
    which vested on January&#160;31, 2007 and the remaining which
    vest, pro rata, on the last day of each three-month period
    commencing on March&#160;31, 2007 and ending on
    December&#160;31, 2008; (ii)&#160;27,300 restricted shares
    awarded on January&#160;31, 2007 under the Plan, which vest, pro
    rata, on the last day of each three-month period commencing on
    April&#160;30, 2007 and ending on January&#160;31, 2010; and
    (iii)&#160;80,000 restricted shares awarded on May&#160;25, 2007
    under the Plan, which vest, pro rata, on the last day of each
    three-month period commencing on July&#160;31, 2007 and ending
    on April&#160;30, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Consists of (i)&#160;246,205
    restricted shares awarded on January&#160;31, 2007 under the
    Plan, which vest, pro rata, on the last day of each three-month
    period commencing on April&#160;30, 2007 and ending on
    January&#160;31, 2010; and (ii)&#160;280,000 restricted shares
    awarded on May&#160;25, 2007 under the Plan, which vest, pro
    rata, on the last day of each three-month period commencing on
    July&#160;31, 2007 and ending on April&#160;30, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Consists of
    (i)&#160;39,307&#160;shares of AFT restricted shares of
    beneficial interest, which were converted in our merger with AFT
    into 49,527 restricted shares of our common stock, one-third of
    which vested on January&#160;31, 2007 and the remaining which
    vest, pro rata, on the last day of each three-month period
    commencing on March&#160;31, 2007 and ending on
    December&#160;31, 2008; (ii)&#160;13,500 restricted shares
    awarded on January&#160;31, 2007 under the Plan, which vest, pro
    rata, on the last day of each three-month period commencing on
    April&#160;30, 2007 and ending on January&#160;31, 2010; and
    (iii)&#160;60,000 restricted shares awarded on May&#160;25, 2007
    under the Plan, which vest, pro rata, on the last day of each
    three-month period commencing on July&#160;31, 2007 and ending
    on April&#160;30, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Consists of (i)&#160;12,500
    restricted shares awarded on January&#160;31, 2007 under the
    Plan, which vest, pro rata, on the last day of each three-month
    period commencing on April&#160;30, 2007 and ending on
    January&#160;31, 2010; and (ii)&#160;15,000 restricted shares
    awarded on May&#160;25, 2007 under the Plan, which vest, pro
    rata, on the last day of each three-month period commencing on
    July&#160;31, 2007 and ending on April&#160;30, 2010.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Pension
    Benefits</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not provide our executive officers with payments or other
    benefits at, following, or in connection with retirement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Nonqualified
    Deferred Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not have a nonqualified deferred compensation plan that
    provides for deferral of compensation on a basis that is not
    tax-qualified for our executive officers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employment
    Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are managed by our manager and we have no employment
    agreements with our named executive officers. We therefore do
    not have an obligation to pay our named executive officers any
    form of compensation upon such officer&#146;s termination of
    employment, except with respect to restricted shares award
    agreements entered into between the named executive officers and
    us under the Plan. Under the restricted shares award agreements,
    if the employment of Messrs.&#160;McEntee,&#160;III, Longino,
    Cohen, Patel or Carr is terminated due to death, disability or
    retirement, or is terminated by the company for any reason other
    than cause, or in the event of a change of control (as defined
    in the Plan) or the termination of the management agreement,
    then
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the restrictions on the unvested restricted shares held by such
    named executive officers will immediately lapse. The potential
    payments to our named executive officers in connection with such
    termination, assuming such termination was effective as of
    December&#160;31, 2007, can be seen in the table above titled
    &#147;Outstanding Equity Awards at Fiscal Year-End 2007&#148;
    under the column &#147;Market Value of Shares or Units of Stock
    That Have Not Vested.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a description of the material terms of the restricted shares
    award agreements, please see &#147;Certain Relationships and
    Related Party Transactions&#160;&#151; Transactions with
    Directors and Officers&#160;&#151; Restricted Shares Award
    Agreements&#160;&#151; Grant of Restricted Shares.&#148;
</DIV>
<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">COMPENSATION
    OF DIRECTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Members of our Board of Directors who are employed by our
    manager or its affiliates, such as Daniel G. Cohen and James J.
    McEntee,&#160;III, do not receive additional compensation for
    serving on our Board of Directors. The table below summarizes
    the compensation information for our non-employee directors for
    the fiscal year ended December&#160;31, 2007. James J.
    McEntee,&#160;III, our Chief Executive Officer and President,
    and Daniel G. Cohen, our Chairman of the Board of Directors and
    Executive Officer, are not included in this table as they are
    deemed &#147;named executive officers&#148; of the company.
    Compensation for each of Mr.&#160;McEntee,&#160;III and
    Mr.&#160;Cohen is shown below under &#147;Executive
    Compensation&#160;&#151; Summary Compensation Table.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="28%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Change in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pension<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fees<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Nonqualified<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Earned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Deferred<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>or Paid<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>in Cash<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Earnings<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)(2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)(3)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Rodney E. Bennett
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,394
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Marc Chayette
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,394
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thomas P. Costello
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,994
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    140,266
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    G. Steven Dawson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,394
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    74,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jack Haraburda
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,994
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    121,766
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lance Ullom
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,994
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,773
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    121,766
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Charles W. Wolcott
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,394
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    74,760
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Amounts in this column represent
    annual board fees and annual chair fees paid to non-employee
    directors for service in 2007.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Amounts in this column do not
    reflect equity compensation actually received by the
    non-employee directors. Amounts shown represent compensation
    costs recognized by the company in 2007 for restricted shares
    using the fair value based methodology prescribed by
    FAS&#160;123R and EITF No.
    <FONT style="white-space: nowrap">96-18.</FONT> The
    assumptions used by the company to calculate the value of these
    restricted shares are incorporated herein by reference to
    Note&#160;8 to the consolidated financial statements included in
    the company&#146;s annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended 2007. At December&#160;31, 2007, the
    aggregate number of restricted shares outstanding for each of
    the directors was as follows: Mr.&#160;Bennett&#160;&#151;
    6,250; Mr.&#160;Chayette&#160;&#151; 6,250;
    Mr.&#160;Costello&#160;&#151; 10,450;
    Mr.&#160;Dawson&#160;&#151; 6,250;
    Mr.&#160;Haraburda&#160;&#151; 10,450;
    Mr.&#160;Ullom&#160;&#151; 10,450; Mr.&#160;Wolcott&#160;&#151;
    6,250.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Amounts in this column represent
    the value of dividends paid in 2007 on the restricted shares
    held by each non-employee director.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We use a combination of cash and stock-based incentive
    compensation to attract and retain qualified candidates to serve
    on the Board of Directors. In accordance with our current
    compensation policy, non-employee directors each received an
    annual fee in the amount of $35,000 for serving as a director
    for the fiscal year ended December&#160;31, 2007. Each
    non-employee director also received $1,000 for each meeting of
    our Board of Directors or a committee of our Board of Directors
    that he attended in person, and $500 for each meeting of our
    Board of Directors or a committee of our Board of Directors that
    he attended telephonically. The Chairman of our Audit Committee,
    the Chairman of our Compensation Committee and the Chairman our
    Nominating and Corporate Governance Committee received
    additional annual fees of $20,000, $7,500 and $7,500
    respectively. The annual fee and the meeting fees were paid in
    cash. In addition, under our Plan, each non-employee director
    received a grant of 7,500 restricted shares, which restrictions
    vest, pro rata, on the last day of each three-month period
    commencing on July&#160;31, 2007 and ending on April&#160;30,
    2010, subject to the non-employee director being a member of the
    Board on the date such award is expected to vest.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On April&#160;24, 2008, the Compensation Committee recommended,
    and the Board of Directors voted to approve, an increase in the
    compensation paid to the non-employee directors. Following
    April&#160;24, 2008, the annual fee paid to non-employee
    directors will increase from $35,000 to $50,000 and each
    non-employee director will receive an increased fee of $2,000,
    up from $1,000, for each meeting of our Board of Directors that
    he attends in person. Each non-employee director will continue
    to receive $1,000&#160;for each meeting of a committee of our
    Board of Directors that he attends in person, and $500 for each
    meeting of our Board of Directors or a committee of our Board of
    Directors that he attends telephonically. In addition, the
    company plans to grant $55,250 worth of restricted shares to
    each of our non-employee directors if the amendment to our Plan,
    set forth under Proposal&#160;2 in this proxy statement, is
    approved by stockholders. The number of restricted shares to be
    awarded will be calculated based on the closing price of our
    common stock on the date of grant. Such restricted shares will
    vest pro rata over a period of three years. In the event that
    our stockholders do not approve the amendment to our Plan, we
    expect to use our cash resources to compensate our non-employee
    directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We reimburse all non-employee directors for travel and other
    reasonable expenses incurred in connection with attending our
    Board and committee meetings.
</DIV>
<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;TWO&#160;&#151;
    APPROVAL OF THE AMENDMENT TO OUR 2006</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>LONG-TERM INCENTIVE PLAN</B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following our merger with AFT in 2006, our Board of Directors
    adopted, and our stockholders approved, the 2006 Long-Term
    Incentive Plan. The Plan was subsequently amended in 2007 to
    increase the total number of shares of common stock available to
    be granted under the Plan and to increase the maximum number of
    shares of common stock that may be granted to any one eligible
    person in any one year. The Plan, as amended, provides that,
    subject to adjustment upon certain corporate transactions or
    events, the total number of shares of our common stock that may
    be awarded under the Plan may not exceed 1,665,000 and the
    maximum number of shares that may be granted to any one eligible
    person in any one year may not exceed 600,000. As of
    April&#160;24, 2008, there were no outstanding equity-based
    awards under the Plan other than 1,092,065 restricted shares and
    we had 14,084&#160;shares of common stock available to be
    awarded under the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purpose of the Plan is to attract key employees, directors,
    officers, advisors and consultants and to induce them to
    continue to provide services to us and our subsidiaries and
    encourage them to increase their efforts to make our business
    more successful, whether directly or through our subsidiaries or
    other affiliates. In furtherance of these objectives, the Plan
    is designed to provide equity-based incentives to such persons
    in the form of options (including stock appreciation rights),
    restricted shares, phantom shares, dividend equivalent rights
    and other forms of equity based awards as contemplated by the
    Plan, with eligibility for such awards determined by our
    Compensation Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board of Directors is proposing a 2,500,000 increase in the
    number of shares of common stock available for issuance under
    the Plan so that the total number of shares of our common stock
    that may be awarded under the Plan can be increased from
    1,665,000 to 4,165,000. The proposed amendment to the Plan, a
    copy of which is attached as Appendix&#160;A to this proxy
    statement was approved by our Board of Directors on
    April&#160;24, 2008, but remains subject to stockholder
    approval. Our Board of Directors believes that this amendment is
    necessary to ensure that the number of shares remaining
    available for issuance under the Plan is sufficient, in light of
    our current capitalization, to allow us to continue to attract,
    retain and motivate key individuals who are essential to our
    long-term growth and financial success. Other than this
    amendment, we are not proposing to change any of the other terms
    of the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Board of Directors unanimously recommends that you vote
    &#147;FOR&#148; the proposal to amend the Plan, as set forth in
    Proposal&#160;2</B>. In the absence of instructions to the
    contrary, proxies solicited in connection with this proxy
    statement will be voted for such amendment to the Plan.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Description
    of the Plan</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of the Plan, as it is proposed to be
    amended. The summary is qualified in its entirety by reference
    to the complete text of the Plan, which, as amended, is
    incorporated herein by reference.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The characterization of options, including whether options shall
    constitute &#147;incentive stock options&#148; for purposes of
    Section&#160;422(b) of the Internal Revenue Code, is determined
    by the Compensation Committee. Additionally, the exercise price
    for each option that is intended to qualify for an exception
    from the limitation imposed by Section&#160;162(m) of the
    Internal Revenue Code shall not be less than 100% of the fair
    market value of the underlying stock on the day the option is
    granted, or 110% in the case of an incentive stock option
    granted to a 10% stockholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee is responsible for determining the
    vesting schedules of grants of restricted shares, and, except to
    the extent restricted under the award agreement, a Plan
    participant who has been granted restricted shares has all of
    the rights of a stockholder of the company, including the right
    to vote his or her shares and the right to receive cash
    dividends. Cash dividends on such shares are paid to holders
    unless provided otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee may authorize the granting of phantom
    shares to eligible persons. Phantom shares represent a future
    right to receive the fair market value of a share of our common
    stock or, if provided by the Compensation Committee, the right
    to receive the fair market value of a share of our common stock
    in excess of a base value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with the payment of dividend equivalents rights,
    the Compensation Committee may provide that such amounts be
    converted into cash or additional common stock. Dividend
    equivalents granted in relation to options that are intended to
    qualify as performance-based compensation for purposes of
    Section&#160;162(m) of the Internal Revenue Code are payable
    regardless of whether the related option is exercised.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As stated above, the Plan currently provides that, subject to
    adjustment upon certain corporate transactions or events, the
    total number of shares of our common stock that may be awarded
    under the Plan may not exceed 1,665,000&#160;shares. If the
    proposal to amend the Plan is approved by stockholders, the
    total number of shares of common stock that may be awarded under
    the Plan may not exceed 4,165,000&#160;shares, subject to
    adjustment upon certain corporate transactions or events.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If an option or other award granted under the Plan expires or
    terminates, the shares subject to any portion of the award that
    expires or terminates without having been exercised or paid,
    again becomes available for the issuance of additional awards.
    Unless previously terminated by our Board of Directors, no new
    award may be granted under the Plan after the tenth anniversary
    of the date that the Plan was initially approved by the Board of
    Directors or, if earlier, by our stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Plan is administered by the Compensation Committee (provided
    that in certain circumstances the Board of Directors may act in
    place of the Compensation Committee). If we are involved in a
    merger, consolidation, dissolution, liquidation, reorganization,
    exchange of shares, sale of substantially all of our assets or
    our stock, or a transaction similar thereto, or upon certain
    changes in capital structure and other similar events, the
    Compensation Committee may make such adjustments as it, in its
    discretion, determines are necessary or appropriate in light of
    the change in control, but only if the Compensation Committee
    determines that the adjustments do not have an adverse economic
    impact on the Plan participants, as determined at the time of
    the adjustments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In no event may an eligible person under the Plan receive
    options for more than 250,000&#160;shares on an annual basis,
    and the maximum number of shares that may underlie awards, other
    than options, granted in any one year to any eligible person may
    not exceed 600,000. Subject to adjustment upon certain corporate
    transactions or events, options with respect to an aggregate of
    no more than 500,000&#160;shares may be granted under the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each option granted under the Plan is exercisable after the
    period or periods specified in the award agreement, which
    generally will not exceed 10&#160;years from the date of grant
    (or five years in the case of an incentive stock option granted
    to a 10% stockholder, if permitted under the Plan).
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the limitations provided for in the Plan, our Board
    of Directors may amend the Plan as it deems advisable, except
    that it may not amend the Plan in any way that would adversely
    affect a participant with respect to an award previously granted
    unless the amendment is required in order to comply with
    applicable laws. In addition, our Board of Directors may not
    amend the Plan without stockholder approval if the amendment, in
    the absence of stockholder approval, would cause the Plan to
    fail to comply with any requirement of applicable law or
    regulation.
</DIV>
<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEREST
    OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our directors and executive officers are eligible to receive
    awards under our Plan. Amending the Plan to increase the total
    number of shares of common stock available to be granted under
    the Plan will enable us to continue to provide equity-based
    incentives to our directors, executive officers and other key
    personnel in the future, as and if recommended by our
    Compensation Committee and approved by our Board of Directors.
    Directors and executive officers may benefit from the payment of
    such equity-based awards. The company plans to grant $55,250
    worth of restricted shares to each of our non-employee directors
    if the amendment to our Plan, set forth under Proposal&#160;2 in
    this proxy statement, is approved by stockholders. The number of
    restricted shares to be awarded will be calculated based on the
    closing price of our common stock on the date of grant. Since
    the Compensation Committee has the discretion to determine which
    eligible persons will receive awards under the Plan, future
    awards to directors, executive officers and other key personnel
    are not generally determinable.
</DIV>
<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;THREE&#160;&#151;
    RATIFICATION OF THE APPOINTMENT OF<BR>
    THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee has appointed Ernst&#160;&#038; Young LLP to
    be the company&#146;s independent registered public accounting
    firm for the fiscal year ending December&#160;31, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholder ratification of the selection of Ernst&#160;&#038;
    Young LLP as our independent registered public accounting firm
    is not required under the laws of the State of Maryland, by our
    Bylaws or otherwise. However, our Board of Directors believes
    that it is good corporate practice to seek stockholder
    ratification of the selection of our independent registered
    public accounting firm. If the appointment of Ernst&#160;&#038;
    Young LLP is not ratified, the Audit Committee will reconsider
    the appointment. Even if the appointment is ratified, the Audit
    Committee in its discretion may direct the appointment of a
    different independent registered public accounting firm during
    the year if it determines that such a change would be in our
    best interests and those of our stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Representatives of Ernst&#160;&#038; Young LLP are expected to
    be present at the annual meeting, will have the opportunity to
    make a statement if they desire to do so and are expected to be
    available to respond to appropriate questions from our
    stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors unanimously recommends that you vote
    &#147;FOR&#148; the ratification of the appointment of
    Ernst&#160;&#038; Young as the company&#146;s independent
    registered public accounting firm for the fiscal year ending
    December&#160;31, 2008 as set forth in Proposal&#160;3. In the
    absence of instructions to the contrary, proxies solicited in
    connection with this proxy statement will be voted for such
    ratification.
</DIV>
<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRINCIPAL
    ACCOUNTING FIRM FEES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On October&#160;13, 2006, Hancock resigned as our independent
    registered public accounting firm effective as of the filing of
    our Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended September&#160;30, 2006. Hancock&#146;s
    reports on our financial statements for the year ended
    December&#160;31, 2005 did not contain an adverse opinion or
    disclaimer of opinion, and were not qualified or modified as to
    uncertainty, audit scope, or accounting principles. During the
    period in which Hancock was engaged, beginning in October 2005
    and including the subsequent interim periods preceding
    Hancock&#146;s resignation, there were no disagreements between
    us and Hancock on any matter of accounting principles or
    practices, financial statement disclosure, or auditing scope
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    or procedure, which, if not resolved to the satisfaction of
    Hancock would have caused it to make reference thereto in, or in
    connection with, its reports on the financial statements for the
    period covered by its audit, and there were no reportable events
    as specified in Item&#160;304(a)(1)(v) of
    <FONT style="white-space: nowrap">Regulation&#160;S-K.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our acquisition by merger of AFT, which was completed on
    October&#160;6, 2006, was a &#147;reverse merger&#148; for
    accounting purposes, which means that AFT was considered our
    acquirer for accounting purposes. Ernst&#160;&#038; Young LLP
    had served as the independent registered public accounting firm
    for AFT. On November&#160;6, 2006, our Audit Committee engaged
    Ernst&#160;&#038; Young LLP to replace Hancock as our
    independent registered public accounting firm for the year
    ending December&#160;31, 2006. Ernst&#160;&#038; Young
    LLP&#146;s reports on our financial statements for the two most
    recent fiscal years did not contain an adverse opinion or
    disclaimer of opinion, and were not qualified or modified as to
    uncertainty, audit scope, or accounting principles. In addition,
    during our two most recent fiscal years and the subsequent
    interim period, neither us nor anyone acting on our behalf has
    consulted with Ernst&#160;&#038; Young LLP regarding either:
    (i)&#160;the application of accounting principles to a specified
    transaction, either completed or proposed, or the type of audit
    opinion that might be rendered on our financial statements, and
    neither a written report was provided to us nor oral advice was
    provided by Ernst&#160;&#038; Young LLP that was an important
    factor considered by us in reaching a decision as to any
    accounting, auditing or financial reporting issue; or
    (ii)&#160;any matter that was the subject of a
    &#147;disagreement&#148; or a &#147;reportable event&#148; as
    defined in Item&#160;304(a)(1) of
    <FONT style="white-space: nowrap">Regulation&#160;S-K</FONT>
    and the related instructions to Item&#160;304 of
    <FONT style="white-space: nowrap">Regulation&#160;S-K.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Aggregate fees billed to us for the years ended
    December&#160;31, 2007 and 2006 were as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="75%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Audit Fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,335,029
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,247,365
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Audit-Related Fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    265,333
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    658,486
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tax Fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    All Other Fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    584,136
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    523,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,336,298
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,483,651
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The aggregate audit fees incurred during the fiscal years ended
    December&#160;31, 2007 and December&#160;31, 2006 represent fees
    for professional services rendered for the audits of our
    consolidated financial statements and of our internal control
    over financial reporting and the limited reviews of our
    unaudited consolidated interim financial statements. The
    aggregate audit-related fees incurred during the fiscal years
    ended December&#160;31, 2007 and December&#160;31, 2006
    represent assurance and related services that are reasonably
    related to the performance of the audit or review of our
    financial statements and are not disclosed under &#147;Audit
    Fees&#148; above. These services consisted primarily of SEC
    filings, including the issuance of comfort letters and consents
    for filings initiated by us. The aggregate tax fees incurred
    during the fiscal years ended December&#160;31, 2007 and
    December&#160;31, 2006 represent tax compliance services
    provided to consolidated CDO entities. The aggregate fees
    incurred during the fiscal years ended December&#160;31, 2007
    and December&#160;31, 2006 for all other fees represent agreed
    upon procedures for services provided to consolidated CDO
    entities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to the 2006 audit fees, $59,318 of the fees were
    for services provided by Hancock through the date of their
    resignation in October 2006, and $1,188,047 of the fees were for
    services provided by Ernst&#160;&#038; Young LLP from the time
    of their engagement in November 2006 through December&#160;31,
    2006, including the audit of the December&#160;31, 2006
    financial statements. With respect to the 2006 audit-related
    fees, $93,867 of the fees were for services provided by Hancock
    and $564,619 of the fees were for services provided by
    Ernst&#160;&#038; Young LLP. All tax and other fees during 2006
    were billed by Ernst&#160;&#038; Young LLP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Audit Committee must pre-approve all audit services and
    non-audit services provided to us or our subsidiaries by our
    independent registered public accounting firm, except for
    non-audit services covered by the de&#160;minimus exception in
    Section&#160;10A of the Securities Exchange Act of 1934, as
    amended. The Audit Committee pre-approved all services provided
    by Ernst&#160;&#038; Young LLP and Hancock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee considers and pre-approves any audit and
    non-audit services to be performed by our independent registered
    public accounting firm at its regularly scheduled and special
    meetings. The Audit Committee has delegated to its Chairman, an
    independent member of our Board of Directors, the authority to
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    grant pre-approvals of all audit, review and attest services and
    non-attest services other than the fees and terms for the
    company&#146;s annual audit, provided that any such pre-approval
    by the Chairman shall be reported to the Audit Committee at its
    next scheduled meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee has considered whether the provision of
    these services is compatible with maintaining the independent
    registered public accounting firm&#146;s independence and has
    determined that such services have not adversely affected the
    independence of our independent registered public accounting
    firm.
</DIV>
<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">REPORT OF
    THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following is a report by the Audit Committee regarding
    the responsibilities and functions of the Audit Committee. This
    report does not constitute soliciting material and shall not be
    deemed filed or incorporated by reference into any other company
    filing under the Securities Act of 1933 or the Securities
    Exchange Act of 1934, as amended, except to the extent the
    company specifically incorporates this report of the Audit
    Committee by reference therein.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee oversees our financial reporting process on
    behalf of the Board of Directors in accordance with the Audit
    Committee charter. Management is responsible for the financial
    reporting process, including the system of internal controls,
    and for the preparation of consolidated financial statements in
    accordance with U.S.&#160;generally accepted accounting
    principles, or GAAP. Our independent registered public
    accounting firm is responsible for performing an audit of the
    consolidated financial statements and an audit of the effective
    operation of the company&#146;s internal control over financial
    reporting. The Audit Committee&#146;s responsibility is to
    oversee and review these processes. In fulfilling its oversight
    responsibilities, the Audit Committee reviewed and discussed
    with management and the independent registered public accounting
    firm the audited financial statements in the annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007, including discussions
    regarding critical accounting policies, other financial
    accounting and reporting principles and practices appropriate
    for the company, the quality of such principles and practices,
    the reasonableness of significant judgments and the clarity of
    disclosures in the financial statements. The Audit Committee
    also reviewed and discussed with management and the independent
    registered public accounting firm the company&#146;s internal
    controls over financial reporting, including a review of
    management&#146;s and the independent registered public
    accounting firm&#146;s assessments of and reports on the
    effectiveness of internal controls over financial reporting and
    any significant deficiencies or material weaknesses and
    discussed with management and the independent registered public
    accounting firm, as applicable, the process used to support
    certifications by our Chief Executive Officer and Chief
    Financial Officer that are required by the SEC and the
    Sarbanes-Oxley Act of 2002, as amended, to accompany the
    company&#146;s periodic filings with the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the Audit Committee obtained from the independent
    registered public accounting firm a formal written statement
    describing all relationships between the independent registered
    public accounting firm and the company that might bear on their
    independence consistent with Independence Standards Board
    Standard No.&#160;1, &#147;Independence Discussions with Audit
    Committees,&#148; as currently in effect, discussed with the
    independent registered public accounting firm any relationships
    that may impact their objectivity and independence, and
    satisfied itself as to their independence. When considering the
    independence of the independent registered public accounting
    firm, the Audit Committee considered whether their provision of
    services to the company beyond those rendered in connection with
    their audit of the company&#146;s consolidated financial
    statements and reviews of its consolidated financial statements,
    including in its quarterly reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q,</FONT>
    was compatible with maintaining their independence. The Audit
    Committee also reviewed, among other things, the audit and
    non-audit services performed by, and the amount of fees paid for
    such services to, the independent registered public accounting
    firm. The Audit Committee also discussed with the independent
    registered public accounting firm the maters required to be
    discussed by generally accepted auditing standards, including
    those described in Statement on Auditing Standards (SAS)
    No.&#160;61, as amended, &#147;Communication with Audit
    Committees,&#148; SAS 99 &#147;Consideration of Fraud in a
    Financial Statement Audit,&#148; and SEC rules discussed in
    Final Release Nos.
    <FONT style="white-space: nowrap">33-8</FONT> 183 and
    <FONT style="white-space: nowrap">33-8183a.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In reliance on the reviews and discussions referred to above,
    but subject to the limitations on the role and responsibilities
    of the Audit Committee referred to below and in the Audit
    Committee charter in effect in
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2007, the Audit Committee recommended to the Board of Directors
    (and the Board approved) that the audited financial statements
    for the year ended December&#160;31, 2007 be included in the
    annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee is composed of three independent
    non-employee directors and operates under a written charter
    adopted by the Board of Directors (which is available on our
    website at <I>http://www.alescofinancial.com</I>). The Audit
    Committee consists of Messrs.&#160;Wolcott, Ullom and Costello,
    who serves as the Chairman. The Board of Directors, in its
    judgment, has determined that each committee member meets the
    independence requirements of the SEC and NYSE. The Board of
    Directors has also determined that each member of our Audit
    Committee is financially literate and has accounting or related
    financial management expertise, as such qualifications are
    defined under the applicable NYSE listing standards currently in
    effect, and that Mr.&#160;Costello is an &#147;audit committee
    financial expert,&#148; as defined under Item&#160;401(h) of
    <FONT style="white-space: nowrap">Regulation&#160;S-K.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee held nine meetings during fiscal year 2007.
    The meetings were designed, among other things, to facilitate
    and encourage communication among the Audit Committee,
    management, and the independent registered public accounting
    firm. The members of the Audit Committee are not professionally
    engaged in the practice of accounting or auditing. Committee
    members rely, without independent investigation or verification,
    on the information provided to them and on the representations
    made by management and the independent registered public
    accounting firm. Accordingly, the Audit Committee&#146;s
    oversight does not provide an independent basis to determine
    that management has maintained appropriate accounting and
    financial reporting principles or appropriate internal controls
    and procedures designed to assure compliance with accounting
    standards and applicable laws and regulations. Furthermore, the
    Audit Committee&#146;s considerations and discussions referred
    to above do not assure that the audit of the financial
    statements has been carried out in accordance with the standards
    of the Public Company Accounting Oversight Board (United
    States), that the financial statements are presented in
    accordance with GAAP or that Ernst&#160;&#038; Young LLP is in
    fact &#147;independent.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Respectfully Submitted,
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Audit Committee</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Thomas P. Costello, Chairman
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Charles W. Wolcott
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Lance Ullom
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SHARE
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth certain information known to us
    regarding the beneficial ownership of our common stock as of
    April&#160;10, 2008 by (1)&#160;each person known by us to own
    beneficially more than 5% of our outstanding common stock,
    (2)&#160;each current director, (3)&#160;each current executive
    officer and (4)&#160;all current directors and executive
    officers as a group. The number of shares of our stock
    beneficially owned by each entity, person, director or executive
    officer is determined under the rules of the SEC, and the
    information is not necessarily indicative of beneficial
    ownership for any other purpose. Under such rules, beneficial
    ownership includes any stock as to which the individual has the
    sole or shared voting power or investment power and also any
    stock that the individual has a right to acquire within
    60&#160;days from April&#160;10, 2008 through the exercise of
    any share option or other right. Unless otherwise indicated,
    each person has sole voting and investment power with respect to
    the stock set forth in the following table. The information set
    out in this table is based on SEC filings made by the beneficial
    owners
    <FONT style="white-space: nowrap">and/or</FONT>
    information supplied to us by the beneficial owners (and was
    accurate as of the date such information was provided).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="71%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Amount and Nature<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Beneficial<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percent of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name and Address of Beneficial Owners(1)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Ownership</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Class(2)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Leon Cooperman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,284,958
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.53
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Daniel G. Cohen
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,392,116
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.53
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    James J. McEntee,&#160;III
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    506,141
</TD>
<TD nowrap align="left" valign="bottom">
    (5)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    G. Steven Dawson
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    109,375
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John J. Longino
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    162,806
</TD>
<TD nowrap align="left" valign="bottom">
    (7)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shami J. Patel
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    152,293
</TD>
<TD nowrap align="left" valign="bottom">
    (8)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Charles W. Wolcott
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,000
</TD>
<TD nowrap align="left" valign="bottom">
    (9)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lance Ullom
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,100
</TD>
<TD nowrap align="left" valign="bottom">
    (10)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thomas P. Costello
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,600
</TD>
<TD nowrap align="left" valign="bottom">
    (11)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jack Haraburda
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,236
</TD>
<TD nowrap align="left" valign="bottom">
    (12)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Christian M. Carr
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,500
</TD>
<TD nowrap align="left" valign="bottom">
    (13)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Rodney E. Bennett
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,500
</TD>
<TD nowrap align="left" valign="bottom">
    (14)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Marc Chayette
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,000
</TD>
<TD nowrap align="left" valign="bottom">
    (15)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    All directors and executive officers as a group (12&#160;persons)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,514,667
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.23
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">*&#160;
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Beneficial ownership of less than
    1% of the class is omitted.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The address for all of our officers
    and directors is
    <FONT style="white-space: nowrap">c/o&#160;Alesco</FONT>
    Financial Inc., Cira Centre, 2929 Arch Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
    Floor, Philadelphia, Pennsylvania 19104.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Based on 59,455,964&#160;shares of
    our common stock outstanding as of April&#160;10, 2008.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Leon Cooperman may be deemed the
    beneficial owner of 3,284,958&#160;shares of common stock, which
    includes 934,318&#160;shares of common stock held by Omega
    Capital Partners, L.P., 207,298&#160;shares of common stock held
    by Omega Equity Investors, L.P., 400,000&#160;shares of common
    stock held by the Leon and Toby Cooperman Foundation and
    1,243,342&#160;shares of common stock held by a limited number
    of institutional clients to which Omega Advisors, Inc. serves as
    discretionary investment advisor. Mr.&#160;Cooperman is the
    ultimate controlling person of Omega Capital Partners, L.P.,
    Omega Equity Investors, L.P. and Omega Advisors, Inc., and is
    one of the trustees of the Leon and Toby Cooperman Foundation.
    The number of shares of common stock with respect to which
    Mr.&#160;Cooperman has sole voting and dispositive power is
    2,041,616. The number of shares of common stock with respect to
    which Mr.&#160;Cooperman shares voting and dispositive power is
    1,243,342. This information is based solely on a
    Schedule&#160;13G filed with the SEC on February&#160;6, 2008.
    The address for this stockholder is 88 Pine Street, Wall Street
    Plaza, 31st Floor, New York, New&#160;York&#160;10005.
    </FONT></TD>
</TR>





<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 504,000&#160;shares of
    common stock held by Cohen&#160;&#038; Company, a company which
    Mr.&#160;Cohen may be deemed to control. Mr.&#160;Cohen
    disclaims any interest in the 504,000&#160;shares beyond his
    pecuniary interest. Also includes 374,137 restricted shares that
    have yet to vest under our Plan. 164,137 of such restricted
    shares will vest, pro rata, in eight installments from
    April&#160;30, 2008 until January&#160;31, 2010 and 210,000 of
    such restricted shares will vest, pro rata, in nine installments
    from April&#160;30, 2008 until April&#160;30, 2010. Of these
    shares, 32,500&#160;shares of common stock are pledged by
    Mr.&#160;Cohen as security.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(5)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 224,803 restricted shares
    that have yet to vest under our Plan. 119,803 of such restricted
    shares will vest, pro rata, in eight installments from
    April&#160;30, 2008 until January&#160;31, 2010 and 105,100 of
    such restricted shares will vest, pro rata, in nine installments
    from April&#160;30, 2008 until April&#160;30, 2010.
    </FONT></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(6)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 48,000&#160;shares of
    common stock held by Corriente Partners, L.P., which is a
    limited partnership owned entirely by Mr.&#160;Dawson and his
    wife. Mr.&#160;Dawson has full voting and investment control
    over these securities. Also includes 5,625 restricted shares
    that have yet to vest under our Plan, which will vest, pro rata,
    in nine installments from April&#160;30, 2008 until
    April&#160;30, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(7)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 1,000&#160;shares of
    common stock held by Mr.&#160;Longino&#146;s wife.
    Mr.&#160;Longino disclaims beneficial ownership of
    1,000&#160;shares of common stock held by his wife. Also
    includes 88,813 that have yet to vest under our Plan. 10,613 of
    such restricted shares will vest, pro rata, on June&#160;30,
    2008, September&#160;30, 2008 and December&#160;31, 2008; 18,200
    of such restricted shares will vest, pro rata, in eight
    installments from April&#160;30, 2008 until January&#160;31,
    2010; and 60,000 of such restricted shares will vest, pro rata,
    in nine installments from April&#160;30, 2008 until
    April&#160;30, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(8)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 66,382 restricted shares
    that have yet to vest under our Plan. 12,382 of such restricted
    shares will vest, pro rata, on June&#160;30, 2008,
    September&#160;30, 2008 and December&#160;31, 2008; 9,000 of
    such restricted shares will vest, pro rata, in eight
    installments from April&#160;30, 2008 until January&#160;31,
    2010; 45,000 of such restricted shares will vest, pro rata, in
    nine installments from April&#160;30, 2008 until April&#160;30,
    2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(9)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 5,625 restricted shares
    that have yet to vest under our Plan, which will vest, pro rata,
    in nine installments from April&#160;30, 2008 until
    April&#160;30, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(10)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 8,775 restricted shares
    that have yet to vest our Plan. 3,150 of such restricted shares
    will vest, pro rata, on June&#160;30, 2008, September&#160;30,
    2008 and December&#160;31, 2008; and 5,625 of such restricted
    shares will vest, pro rata, in nine installments from
    April&#160;30, 2008 until April&#160;30, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(11)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 8,775 restricted shares
    that have yet to vest our Plan. 3,150 of such restricted shares
    will vest, pro rata, on June&#160;30, 2008, September&#160;30,
    2008 and December&#160;31, 2008; and 5,625 of such restricted
    shares will vest, pro rata, in nine installments from
    April&#160;30, 2008 until April&#160;30, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(12)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 8,775 restricted shares
    that have yet to vest our Plan. 3,150 of such restricted shares
    will vest, pro rata, on June&#160;30, 2008, September&#160;30,
    2008 and December&#160;31, 2008; and 5,625 of such restricted
    shares will vest, pro rata, in nine installments from
    April&#160;30, 2008 until April&#160;30, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(13)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 19,583 restricted shares
    that have yet to vest under our Plan. 8,333 of such restricted
    shares will vest, pro rata, in eight installments from
    April&#160;30, 2008 until January&#160;31, 2010 and 11,250 of
    such restricted shares will vest, pro rata, in nine installments
    from April&#160;30, 2008 until April&#160;30, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(14)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 5,625 restricted shares
    that have yet to vest under our Plan, which will vest, pro rata,
    in nine installments from April&#160;30, 2008 until
    April&#160;30, 2010.
    </FONT></TD>
</TR>




<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(15)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes 5,625 restricted shares
    that have yet to vest under our Plan, which will vest, pro rata,
    in nine installments from April&#160;30, 2008 until
    April&#160;30, 2010.
    </FONT></TD>
</TR>

</TABLE>
<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SECTION&#160;16(A)
    BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;16(a) of the Securities Exchange Act of 1934, as
    amended, requires our directors and executive officers and
    persons who own more than 10% of our common stock, which we
    refer to herein as reporting persons, to file reports of
    ownership and changes in ownership with the SEC. Reporting
    persons are also required by SEC regulations to furnish us with
    copies of all Section&#160;16(a) forms filed by them with the
    SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the company&#146;s knowledge, based solely on a review of the
    copies of the Section&#160;16(a) forms furnished to the company
    or upon written representations from certain of these reporting
    persons that no other reports were required, all
    Section&#160;16(a) filing requirements applicable to the
    reporting persons were complied with during the year ended
    December&#160;31, 2007, except that
    (1)&#160;Messrs.&#160;Bennett, Carr, Chayette, Cohen, Costello,
    Dawson, Haraburda, Longino, McEntee,&#160;III, Patel, Ullom and
    Wolcott did not report on Form&#160;4 their award of restricted
    shares, which were granted on May&#160;25, 2007, until
    May&#160;30, 2007 and (2)&#160;Mr.&#160;Wolcott did not report
    on Form&#160;4 his purchase of additional shares of the
    company&#146;s common stock in the open market, which occurred
    on August&#160;13, 2007, until August&#160;20, 2007.
</DIV>
<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transactions
    with Cohen&#160;&#038; Company and Management Team</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Management
    Agreement</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the management agreement, our manager,
    Cohen&#160;&#038; Company Management, LLC, provides for the
    day-to-day management of our operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The management agreement requires our manager to manage our
    business affairs in conformity with the policies and the
    investment guidelines that were approved by a majority of our
    independent directors and monitored by our Board of Directors.
    Our manager is responsible for (i)&#160;the selection, purchase,
    monitoring
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    26
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and sale of our portfolio investments, (ii)&#160;our financing
    and risk management activities, and (iii)&#160;providing us with
    investment advisory services. In performing its functions, our
    manager engages and relies upon the experience and credit
    analysis and risk management process performed by
    Cohen&#160;&#038; Company with respect to the assets that are
    acquired during the warehouse accumulation period prior to the
    formation of a CDO, collateralized debt obligation, or CLO, or
    other securitization. Our manager is responsible for our
    day-to-day operations and performs (or causes to be performed)
    such services and activities relating to our assets and
    operations as may be appropriate, including, without limitation,
    the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    serving as our consultant with respect to the periodic review of
    the investment criteria and parameters for our investments,
    borrowings and operations, any modifications to which must be
    approved by a majority of our independent directors, and other
    policies for the approval of our Board of Directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    investigating, analyzing and selecting possible investment
    opportunities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    with respect to investments, conducting negotiations with
    sellers and purchasers and their agents, representatives and
    investment bankers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    engaging and supervising, on our behalf and at our expense,
    independent contractors which provide investment banking,
    mortgage brokerage, securities brokerage and other financial
    services and such other services as may be required relating to
    our investments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    negotiating on our behalf for the sale, exchange or other
    disposition of any of our investments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    coordinating and managing operations of any joint venture or
    co-investment interests held by us and conducting all matters
    with any joint venture or co-investment partners;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    providing executive and administrative personnel, office space
    and office services required in rendering services to us;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    administering our day-to-day operations and performing and
    supervising the performance of such other administrative
    functions necessary to our management as may be agreed upon by
    our manager and our Board of Directors, including the collection
    of revenues and the payment of our debts and obligations and
    maintenance of appropriate computer services to perform such
    administrative functions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    communicating on our behalf with the holders of any of our
    equity or debt securities as required to satisfy the reporting
    and other requirements of any governmental bodies or agencies or
    trading markets and to maintain effective relations with such
    holders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    counseling us in connection with policy decisions to be made by
    our Board of Directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    evaluating and recommending to our Board of Directors hedging
    strategies and engaging in hedging activities on our behalf,
    consistent with our qualification as a REIT and with the
    investment guidelines;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    counseling us regarding the maintenance of our qualifications as
    a REIT and monitoring compliance with the various REIT
    qualification tests and other rules set out in the Internal
    Revenue Code and Treasury Regulations thereunder;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    counseling us regarding the maintenance of our exemption from
    the Investment Company Act of 1940, as amended, and monitoring
    compliance with the requirements for maintaining an exemption
    from that Act;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    assisting us in developing criteria for asset purchase
    commitments that are specifically tailored to our investment
    objectives and making available to us its knowledge and
    experience with respect to mortgage loans, TruPS, leveraged
    loans and other real estate-related assets and non-real estate
    related assets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    representing and making recommendations to us in connection with
    the purchase and finance of and commitment to purchase and
    finance assets (including on a portfolio basis), and the sale
    and commitment to sell assets;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    selecting brokers and dealers to effect trading on our behalf
    including, without limitation, Cohen&#160;&#038; Company
    Securities, LLC, provided that any compensation payable to
    Cohen&#160;&#038; Company Securities, LLC is based on prevailing
    market terms;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    monitoring the operating performance of our investments and
    providing periodic reports with respect thereto to our Board of
    Directors, including comparative information with respect to
    such operating performance and budgeted or projected operating
    results;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    investing or reinvesting any moneys and securities of ours
    (including investing in short-term investments pending
    investment in long-term asset investments, payment of fees,
    costs and expenses, or payments of dividends or distributions to
    our stockholders and partners), and advising us as to our
    capital structure and capital raising;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    causing us to retain qualified accountants and legal counsel, as
    applicable, to assist in developing appropriate accounting
    procedures, compliance procedures and testing systems with
    respect to financial reporting obligations and compliance with
    the REIT provisions of the Internal Revenue Code and to conduct
    quarterly compliance reviews with respect thereto;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    causing us to qualify to do business in all applicable
    jurisdictions and to obtain and maintain all appropriate
    licenses;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    assisting us in complying with all regulatory requirements
    applicable to us in respect of our business activities,
    including preparing or causing to be prepared all financial
    statements required under applicable regulations and contractual
    undertakings and all reports and documents, if any, required
    under the Securities Exchange Act of 1934, as amended;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    taking all necessary actions to enable us to make required tax
    filings and reports, including soliciting stockholders for
    required information to the extent provided by the REIT
    provisions of the Internal Revenue Code and the Treasury
    Regulations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    handling and resolving all claims, disputes or controversies
    (including all litigation, arbitration, settlement or other
    proceedings or negotiations) in which we may be involved or to
    which we may be subject arising out of our day-to-day
    operations, subject to such limitations or parameters as may be
    imposed from time to time by our Board of Directors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    using commercially reasonable efforts to cause expenses incurred
    by or on behalf of us to be commercially reasonable or
    commercially customary and within any budgeted parameters or
    expense guidelines set by our Board of Directors from time to
    time;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    advising us with respect to obtaining appropriate warehouse or
    other financings for our assets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    advising us with respect to and structuring long-term financing
    vehicles for our portfolio of assets, and offering and selling
    securities publicly or privately in connection with any such
    structured financing;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    performing such other services as may be required from time to
    time for management and other activities relating to our assets
    as our Board of Directors shall reasonably request or our
    manager shall deem appropriate under the particular
    circumstances;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    using commercially reasonable efforts to cause us to comply with
    all applicable laws.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to our management agreement, our manager has not
    assumed any responsibility other than to render the services
    called for thereunder in good faith and will not be responsible
    for any action of our Board of Directors in following or
    declining to follow our manager&#146;s advice or
    recommendations. Our manager and its members, officers,
    employees and affiliates will not be liable to us, any
    subsidiary of ours, our Board of Directors, our stockholders or
    any subsidiary&#146;s stockholders or partners for acts
    performed by our manager and its members, officers, employees
    and affiliates in accordance with or pursuant to our management
    agreement, except by reason of acts or omissions constituting
    bad faith, willful misconduct, gross negligence, or reckless
    disregard of the manager&#146;s duties under our management
    agreement. We have agreed to indemnify, to the fullest extent
    permitted by law, our manager and its members, officers,
    directors, employees and affiliates and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    28
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    each other person, if any, controlling our manager with respect
    to all expenses, losses, damages, liabilities, demands, charges
    and claims arising from acts of such indemnified party not
    constituting bad faith, willful misconduct, gross negligence, or
    reckless disregard of duties, performed in good faith in
    accordance with the management agreement. Our manager has agreed
    to indemnify, to the fullest extent permitted by law, us, our
    stockholders, directors, officers, employees and each other
    person, if any, controlling us with respect to all expenses,
    losses, damages, liabilities, demands, charges and claims
    arising from acts of our manager constituting bad faith, willful
    misconduct, gross negligence or reckless disregard of its duties
    under our management agreement. As required by our management
    agreement, our manager carries errors and omissions insurance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the terms of the management agreement, our manager
    is required to provide us with our management team, including a
    chief executive officer, chief operating officer, chief
    investment officer and chief financial officer, along with
    appropriate support personnel, to provide the management
    services to be provided by our manager to us, the members of
    which team are required to devote such of their time to the
    management of us as may be reasonably necessary and appropriate,
    commensurate with our level of activity from time to time. Our
    Chief Financial Officer and our Chief Accounting Officer (as
    well as certain other accounting personnel) are exclusively
    dedicated to our operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The initial term of the management agreement expires on
    December&#160;31, 2008, and shall be automatically renewed for a
    one-year term on each anniversary date thereafter unless
    terminated as described below. Our independent directors review
    our manager&#146;s performance annually and, following the
    initial term, the management agreement may be terminated
    annually upon the affirmative vote of at least two-thirds of our
    independent directors, or by a vote of the holders of a majority
    of our outstanding common stock, based upon
    (i)&#160;unsatisfactory performance that is materially
    detrimental to us or (ii)&#160;a determination that the
    management fees payable to our manager are not fair, subject to
    our manager&#146;s right to prevent such a termination pursuant
    to clause&#160;(ii) by accepting a reduction of management fees
    agreed to by at least two-thirds of our independent directors
    and our manager. We must provide 180&#160;days&#146; prior
    notice of any such termination and our manager will be paid a
    termination fee equal to three times the sum of (A)&#160;the
    average annual base management fee for the two
    <FONT style="white-space: nowrap">12-month</FONT>
    periods preceding the date of termination plus (B)&#160;the
    average annual incentive fee for the two
    <FONT style="white-space: nowrap">12-month</FONT>
    periods preceding the date of termination, calculated as of the
    end of the most recently completed fiscal quarter prior to the
    date of termination (and annualized for any partial year), which
    may make it costly and difficult for us to terminate the
    management agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We may also terminate the management agreement without payment
    of the termination fee with 30&#160;days&#146; prior written
    notice for cause, which is defined as (i)&#160;our
    manager&#146;s continued material breach of any provision of the
    management agreement following a period of 30&#160;days after
    written notice thereof, (ii)&#160;our manager&#146;s engagement
    in any act of fraud, misappropriation of funds, or embezzlement
    against us, (iii)&#160;our manager&#146;s gross negligence,
    willful misconduct or reckless disregard in the performance of
    its duties under the management agreement, (iv)&#160;the
    commencement of any proceeding relating to our manager&#146;s
    bankruptcy or insolvency that is not withdrawn within
    60&#160;days or in certain other instances where our manager
    becomes insolvent, (v)&#160;the dissolution of our manager or
    Cohen&#160;&#038; Company (unless the directors have approved a
    successor under the management agreement) or (vi)&#160;a change
    of control (as defined in the management agreement), other than
    certain permitted changes of control, of our manager or
    Cohen&#160;&#038; Company. Cause does not include unsatisfactory
    performance, even if that performance is materially detrimental
    to our business. Our manager may terminate the management
    agreement, without payment of the termination fee, in the event
    we become regulated as an investment company under the
    Investment Company Act of 1940, as amended. Furthermore, our
    manager may decline to renew the management agreement by
    providing us with 180&#160;days&#146; written notice. Our
    manager may also terminate the management agreement upon
    60&#160;days&#146; written notice if we default in the
    performance of any material term of the management agreement and
    the default continues for a period of 30&#160;days after written
    notice to us, whereupon we would be required to pay our manager
    a termination fee in accordance with the terms of the management
    agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Management
    Fee and Incentive Fee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Expense reimbursements to our manager are generally made on a
    monthly basis.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Base Management Fee.</I>&#160;&#160;We pay our manager a base
    management fee monthly in arrears in an amount equal to
    one-twelfth of our equity multiplied by 1.50%. We believe that
    the base management fee that our manager is entitled to receive
    is comparable to the base management fee received by the
    managers of comparable externally managed REITs. Our manager
    uses the proceeds from its management fee in part to pay
    compensation to its officers and employees who, notwithstanding
    that certain of them also are our officers, receive no cash
    compensation directly from us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of calculating the base management fee, our equity
    means, for any month, the sum of the net proceeds from any
    issuance of our common stock, after deducting any underwriting
    discount and commissions and other expenses and costs relating
    to the issuance, plus our retained earnings at the end of such
    month (without taking into account any non-cash equity
    compensation expense incurred in current or prior periods),
    which amount shall be reduced by any amount that we pay for the
    repurchases of our common stock. The calculation of our equity
    and the base management fee will be adjusted to exclude one-time
    events pursuant to changes in GAAP, as well as non-cash charges,
    after discussion between our manager and our independent
    directors and approval by a majority of our independent
    directors in the case of non-cash charges.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our manager&#146;s base management fee is calculated by our
    manager within 15 business days after the end of each month and
    such calculation is promptly delivered to us. We are obligated
    to pay the base management fee within twenty business days after
    the end of each month.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Reimbursement of Expenses.</I>&#160;&#160;Although our
    manager&#146;s employees perform certain legal, accounting, due
    diligence tasks and other services that outside professionals or
    outside consultants otherwise would perform, our manager is not
    paid or reimbursed for the time required in performing such
    tasks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We pay all operating expenses, except those specifically
    required to be borne by our manager under the management
    agreement. The expenses required to be paid by us include, but
    are not limited to, issuance and transaction costs related to
    the acquisition, disposition and financing of our investments,
    legal, tax, accounting, consulting and auditing fees and
    expenses, the compensation and expenses of our directors, the
    cost of directors&#146; and officers&#146; liability insurance,
    the costs associated with the establishment and maintenance of
    any credit facilities and other indebtedness of ours (including
    commitment fees, accounting fees, legal fees and closing costs),
    expenses associated with other securities offerings of ours,
    expenses relating to making distributions to our stockholders,
    the costs of printing and mailing proxies and reports to our
    stockholders, costs associated with any computer software or
    hardware, electronic equipment, or purchased information
    technology services from third party vendors that is used solely
    for us, costs incurred by employees of our manager for travel on
    our behalf, the costs and expenses incurred with respect to
    market information systems and publications, research
    publications and materials, settlement, clearing, and custodial
    fees and expenses, expenses of our transfer agent, the costs of
    maintaining compliance with all federal, state and local rules
    and regulations or any other regulatory agency, all taxes and
    license fees and all insurance costs incurred by us or on our
    behalf. In addition, we are required to pay our pro rata portion
    of rent, telephone, utilities, office furniture, equipment,
    machinery and other office, internal and overhead expenses of
    our manager required for our operations. Except as noted above,
    our manager is responsible for all costs incidental to the
    performance of its duties under the management agreement,
    including compensation of our manager&#146;s employees and other
    related expenses. Our independent directors review these costs
    and reimbursements periodically to confirm that these costs and
    reimbursements are reasonable.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Incentive Fee.</I>&#160;&#160;In addition to the base
    management fee, our manager receives a quarterly incentive fee
    payable in arrears in an amount equal to the product of:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;20% of the dollar amount by which
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;our net income, before the incentive fee, per weighted
    average share of our common stock for such quarter, exceeds
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;an amount equal to (A)&#160;the weighted average of the
    prices per share of common stock in any equity offerings by us
    multiplied by (B)&#160;the greater of (1)&#160;2.375% and
    (2)&#160;0.75% plus one-fourth of the Ten Year Treasury Rate for
    such quarter multiplied by
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;the weighted average number of our common stock
    outstanding in such quarter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The foregoing calculation of the incentive fee is adjusted to
    exclude one-time events pursuant to changes in GAAP, as well as
    non-cash charges, after approval by a majority of our
    independent directors in the case of non-cash charges. The
    incentive fee calculation and payment shall be made quarterly in
    arrears.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of the foregoing:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Net income&#148;</I> is determined by calculating the
    net income available to owners of our common stock before
    non-cash equity compensation expense, in accordance with GAAP.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Ten Year Treasury Rate&#148;</I> means the average of
    weekly average yield to maturity for U.S.&#160;Treasury
    securities (adjusted to a constant maturity of ten years) as
    published weekly by the Federal Reserve Board in publication H.
    15 or any successor publication during a fiscal quarter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our ability to achieve returns in excess of the thresholds noted
    above in order for our manager to earn the incentive
    compensation described in the preceding paragraph is dependent
    upon the level and volatility of interest rates, our ability to
    react to changes in interest rates and to utilize successfully
    the operating strategies described herein, and other factors,
    many of which are not within our control.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our manager computes the quarterly incentive compensation within
    30&#160;days after the end of each fiscal quarter, and we are
    required to pay the quarterly incentive compensation with
    respect to each fiscal quarter within five business days
    following the delivery to us of our manager&#146;s computation
    of the incentive fee for such quarter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our management agreement provides that 15% of our manager&#146;s
    incentive compensation is to be paid in our common stock
    (provided that our manager may not own more than 9.8% of our
    common stock) and the balance in cash. Our manager may elect to
    receive up to 50% of its incentive compensation in the form of
    our common stock, subject to the approval of a majority of our
    independent directors. Under our management agreement, our
    manager may not elect to receive shares of our common stock as
    payment of its incentive compensation except in accordance with
    all applicable securities exchange rules and securities laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The number of shares our manager receives is based on the fair
    market value of those shares. Shares of common stock delivered
    as payment of the incentive fee will be immediately vested or
    exercisable; however, our manager has agreed not to sell the
    shares before one year after the date they are paid. This
    transfer restriction will lapse if the management agreement is
    terminated. Our manager may allocate these shares to its
    officers, employees and other individuals who provide services
    to it; however, our manager has agreed not to make any such
    allocations before the first anniversary of the date of grant of
    such shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have agreed to register the issuance and resale of these
    shares by our manager. We have also granted our manager the
    right to include these shares in any registration statements we
    might file in connection with any future public offerings,
    subject only to the right of the underwriters of those offerings
    to reduce the total number of secondary shares included in those
    offerings (with such reductions to be proportionately allocated
    among selling stockholders participating in those offerings).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our management agreement provides that the base management fee
    and incentive management fee payable to our manager will be
    reduced, but not below zero, by our proportionate share of the
    amount of any CDO and CLO collateral management fees and
    incentive fees paid to Cohen&#160;&#038; Company in connection
    with
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the CDOs and CLOs in which we invest, based on the percentage of
    equity we hold in such CDOs and CLOs. Origination fees,
    structuring fees and placement fees paid to Cohen&#160;&#038;
    Company do not reduce the amount of fees we pay under the
    management agreement. Thus, Cohen&#160;&#038; Company and its
    affiliates earn significant fees from their relationship with
    us, regardless of our performance or the returns earned by our
    stockholders from their investment in us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Fees
    Earned by Cohen&#160;&#038; Company and its Affiliates in
    Respect of Our Investments</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the fees payable to our manager under the
    management agreement, Cohen&#160;&#038; Company benefits from
    other fees paid to it by third parties in respect of our
    investments, regardless of our performance. In particular,
    affiliates of Cohen&#160;&#038; Company earn origination fees
    paid by the issuers of TruPS, which have historically ranged
    from zero to 3.0% of the face amount of a TruPS issuance.
    Cohen&#160;&#038; Company, through its affiliates, typically
    retains part of this fee and shares the balance with the
    investment bank or other third-party broker that introduced the
    funding opportunity to Cohen&#160;&#038; Company.
    Cohen&#160;&#038; Company&#146;s affiliates also receive
    structuring fees for services relating to the structuring of a
    CDO or CLO on our behalf or in which we invest. This fee
    typically ranges from zero to 0.84% of the face amount of the
    securities issued by the CDO or CLO, but may exceed this amount.
    Our independent directors must approve any structuring fees for
    CDOs and CLOs collateralized by our target asset classes
    exceeding 0.45% of the face amount of the securities issued by
    such CDOs or CLOs. In addition, affiliates of Cohen&#160;&#038;
    Company act as collateral managers of the CDOs and CLOs in which
    we have invested and will invest in the future. In this
    capacity, these affiliates have received and will receive
    collateral management fees that have historically ranged between
    zero and 0.65% of the assets held by the CDOs and CLOs. In
    addition, the collateral managers may be entitled to earn
    incentive fees if CDOs or CLOs managed by them exceed certain
    performance benchmarks. A broker-dealer affiliate of
    Cohen&#160;&#038; Company has also earned and will earn
    placement fees in respect of debt and equity securities which it
    sells to investors in the CDOs and CLOs in which we invest, as
    well as commissions and
    <FONT style="white-space: nowrap">mark-ups</FONT>
    from trading of securities to and from CDOs and CLOs in which we
    invest. Under our management agreement, the base management fee
    and incentive management fee payable to our manager are reduced
    by our proportionate share of the amount of any CDO and CLO
    collateral management fees and incentive fees paid to
    Cohen&#160;&#038; Company and its affiliates in connection with
    the CDOs and CLOs in which we invest, based on the percentage of
    equity we hold in such CDOs and CLOs. Origination fees,
    structuring fees, placement fees and trading discounts and
    commissions paid to, or earned by, Cohen&#160;&#038; Company and
    its affiliates do not reduce the amount of fees we pay under the
    management agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table summarizes the base management fees payable
    and incentive fees paid, net of asset management fee credits, to
    our manager by us as of December&#160;31, 2007. Additionally,
    the following table summarizes structuring, placement,
    origination and collateral management fees earned by affiliates
    of our manager, including Cohen&#160;&#038; Company, in
    connection with CDOs and CLOs in which we had invested as of
    December&#160;31, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>For the Year Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>December&#160;31, 2007</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <I>(dollars in thousands)</I>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B><FONT style="font-size: 10pt">Fees Paid to Cohen&#160;&#038;
    Company Relating to Management Agreement</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Base management fees paid under management agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,903
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Incentive fees paid under management agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    378
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Collateral management fee credits under management agreement
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,281
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Total Fees Paid to Cohen&#160;&#038; Company Relating to
    Management Agreement</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>0</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Fees Paid to Affiliates of Cohen&#160;&#038; Company Relating
    to CDO/CLO Investment Transactions</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Origination, structuring and placement fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,306
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Collateral management fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,502
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Total Fees Paid to Affiliates of Cohen&#160;&#038; Company
    Relating to CDO/CLO Investment Transactions</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <B>$</B>
</TD>
<TD nowrap align="right" valign="bottom">
    <B>34,808</B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    32
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Right
    of First Refusal Agreement</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the term of the management agreement, Cohen&#160;&#038;
    Company has granted us a right of first refusal to
    (1)&#160;purchase equity interests in CDOs collateralized by
    U.S.&#160;dollar denominated TruPS issued by banks, bank holding
    companies and insurance companies for which Cohen&#160;&#038;
    Company or its affiliates will serve as collateral manager, in
    which event we shall have a priority right to fund the
    origination, through our warehouse facilities, of
    U.S.&#160;dollar denominated TruPS originated by our manager and
    Cohen&#160;&#038; Company that will collateralize the CDOs as to
    which we have exercised the right of first refusal to acquire
    entity interests and (2)&#160;purchase equity interests in CLOs
    of U.S.&#160;dollar denominated leveraged loans for which
    Cohen&#160;&#038; Company or its affiliates will serve as
    collateral manager. Notwithstanding anything contained herein to
    the contrary, our right of first refusal does not extend to
    (i)&#160;individual investments in leveraged loans,
    (ii)&#160;TruPS that collateralize CDOs in which we decline our
    right of first refusal to acquire equity interests in CDOs or
    (iii)&#160;any
    <FONT style="white-space: nowrap">non-U.S.&#160;dollar</FONT>
    denominated investments. In addition, Cohen&#160;&#038; Company
    shall have a limited right to substitute newly originated or
    acquired TruPS investments for existing TruPS investments held
    by a CDO if such existing TruPS have been downgraded by one or
    more rating agencies and, as a result, are disposed of by the
    CDO.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Cohen&#160;&#038; Company is required to provide us with at
    least 15 business days advance notice of the opportunity to
    exercise the right of first refusal, together with such
    information as may reasonably be necessary to enable us to make
    an informed investment decision. We have 15 business days after
    receipt of such notice to notify Cohen&#160;&#038; Company of
    our desire to exercise the right of first refusal with respect
    to the investment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Shared
    Facilities and Services Agreement</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our manager has entered into a shared facilities and services
    agreement with Cohen&#160;&#038; Company pursuant to which
    Cohen&#160;&#038; Company will provide our manager with certain
    facilities and services, including office space and management
    and personnel services, as well as other services that the
    manager may request so as to perform and discharge its duties
    under the management agreement. The shared facilities and
    services agreement shall remain in force until the earlier to
    occur of (i)&#160;the termination of the management agreement
    and (ii)&#160;the expiration and non-renewal of the management
    agreement. Under the shared facilities and services agreement,
    our manager has to pay Cohen&#160;&#038; Company the actual
    costs incurred by Cohen&#160;&#038; Company in providing office
    space, access to file space, printers, copiers, kitchen and
    conference room facilities and secretarial services, plus an
    administrative charge of 10.0%. During the year ended
    December&#160;31, 2007, the manager incurred $360,790 of
    expenses under the shared facilities and services agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transactions
    with Directors and Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Restricted
    Shares Award Agreements&#160;&#151; Grant of Restricted
    Shares</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On January&#160;31, 2007, we entered into restricted shares
    award agreements with Messrs.&#160;McEntee,&#160;III, Longino,
    Cohen, Patel and Carr, our named executive officers, pursuant to
    which we granted our named executive officers an aggregate of
    179,705, 27,300, 246,205, 13,500 and 12,500 restricted shares,
    respectively. On May&#160;25, 2007, we entered into restricted
    shares award agreements with our named executive officers and
    Messrs.&#160;Bennett, Chayette, Costello, Dawson, Haraburda,
    Ullom and Wolcott, our non-employee directors, pursuant to which
    we granted Messrs.&#160;McEntee, III, Longino, Cohen, Patel,
    Carr, Bennett, Chayette, Costello, Dawson, Haraburda, Ullom and
    Wolcott an aggregate of 140,000, 80,000, 280,000, 60,000,
    15,000, 7,500, 7,500, 7,500, 7,500, 7,500, 7,500 and 7,500
    restricted shares, respectively. Under the restricted shares
    award agreements, our named executive officers and non-employee
    directors are entitled to receive an equivalent number of shares
    of our common stock if and when the restricted shares vest. If
    our named executive officers and non-employee directors
    voluntarily terminate their employment with us, or the we
    terminate their employment for cause (as defined in the Plan),
    any unvested portion of the restricted shares held by the named
    executive officers and non-employee directors will be forfeited
    automatically as of the date of termination of employment and we
    shall pay such officers and directors as soon as possible (and
    in no event more than 30&#160;days) after such termination an
    amount equal to the lesser of (x)&#160;the amount paid by the
    named executive
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    officers and non-employee directors for such forfeited
    restricted shares and (y)&#160;the fair market value on the date
    of termination of the forfeited restricted shares. If the
    employment of our named executive officers and non-employee
    directors is terminated due to death, disability or retirement,
    or is terminated by us for any reason other than cause, or in
    the event of a change of control (as defined in the Plan) or the
    termination of the management agreement, then the restrictions
    on the unvested restricted shares held by such officers and
    directors will immediately lapse.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to the restricted shares award agreements described
    above, the restricted shares may not be sold, transferred,
    pledged, alienated, encumbered or assigned; provided, however,
    each grantee may transfer the restricted shares to a trust
    established for the sole benefit of his immediate family so long
    as, prior to the transfer, such trust delivers a written
    instrument to us pursuant to which such trust agrees to be bound
    by the restrictions on the restricted shares. Each grantee shall
    have, in respect of the restricted shares, whether vested or
    not, all of the rights of a holder of our common stock,
    including the right to vote the restricted shares and the right
    to receive dividends as and when such dividends are declared and
    paid by us (or as soon as practicable thereafter); provided,
    however, that cash dividends on such restricted shares shall,
    unless otherwise provided by the Compensation Committee, be held
    by us until the period of forfeiture lapses and paid over to
    each grantee (without interest) as soon as practicable after
    such period lapses (if not forfeited).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Indemnification
    Agreement</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We and each of our directors and executive officers have entered
    into indemnification agreements. The indemnification agreements
    provide that we will indemnify the directors and the executive
    officers to the extent permitted by Maryland law against certain
    liabilities (including settlements) and expenses actually and
    reasonably incurred by them in connection with any threatened,
    pending or completed action, suit, alternate dispute resolution
    mechanism, investigation, administrative hearing or any other
    proceeding to which any of them is, or is threatened to be, made
    a party by reason of their status as our director, officer or
    agent, or by reason of their serving as a director, officer or
    agent of another company at our request. The Maryland General
    Corporation Law, or MGCL, permits a corporation to indemnify its
    present and former directors and officers, among others, against
    judgments, penalties, fines, settlements and reasonable expenses
    actually incurred by them in connection with any proceeding to
    which they may be made, or threatened to be made, a party by
    reason of their service in those or other capacities unless it
    is established that (a)&#160;the act or omission of the director
    or officer was material to the matter giving rise to the
    proceeding and (i)&#160;was committed in bad faith or
    (ii)&#160;was the result of active and deliberate dishonesty,
    (b)&#160;the director or officer actually received an improper
    personal benefit in money, property or services or (c)&#160;in
    the case of any criminal proceeding, the director or officer had
    reasonable cause to believe that the act or omission was
    unlawful. However, under the MGCL, a Maryland corporation may
    not indemnify for an adverse judgment in a suit by or in the
    right of the corporation or for a judgment of liability on the
    basis that personal benefit was improperly received, unless in
    either case a court orders indemnification and then only for
    expenses. In addition, the MGCL permits a corporation to advance
    reasonable expenses to a director or officer upon the
    corporation&#146;s receipt of (a)&#160;a written affirmation by
    the director or officer of his good faith belief that he has met
    the standard of conduct necessary for indemnification by the
    corporation and (b)&#160;a written undertaking by him or on his
    behalf to repay the amount paid or reimbursed by the corporation
    if it shall ultimately be determined that the standard of
    conduct was not met. In addition, we have obtained directors and
    officers liability insurance, which covers our directors and
    executive officers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Policies
    and Procedures With Respect to Related Party
    Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Pursuant
    to the Management Agreement</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any determination made by or on behalf of the company to
    purchase securities in CDOs or CLOs structured or managed by
    Cohen&#160;&#038; Company is subject to the approval of a
    majority of our independent directors. In addition, any
    transaction between us and Cohen&#160;&#038; Company or its
    affiliates not specifically permitted by the management
    agreement must be approved by a majority of our independent
    directors.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    34
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Related Party Transactions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is the policy of our Board of Directors that all transactions
    involving amounts exceeding $120,000 between us and a related
    party must be approved or ratified by at least a majority of the
    members of our Board of Directors who are not interested in the
    transaction. A related party includes any director or executive
    officer, or his or her immediate family members, or stockholders
    owning 5% of more of our outstanding stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In determining whether to approve or ratify a related party
    transaction, our Board of Directors will take into account,
    among other factors it deems appropriate, whether the related
    party transaction is on terms no less favorable than terms
    generally available to an unaffiliated third-party under the
    same or similar circumstances and the extent of the related
    party&#146;s interest in the transaction. No director will
    participate in any discussion or approval of a related party
    transaction for which he or she is a related party, except that
    the director will provide all material information concerning
    the related party transaction to our Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a related party transaction will be ongoing, our Board of
    Directors may establish written guidelines for our management to
    follow in its ongoing dealings with the related party. The Board
    of Directors may delegate to our Nominating and Corporate
    Governance Committee the authority to review and assess, on at
    least an annual basis, any such ongoing relationships with the
    related party to see that they are in compliance with the
    Board&#146;s guidelines.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All related party transactions will be disclosed in our
    applicable filings with the SEC as required under SEC rules.
</DIV>
<A name='118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OTHER
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of the mailing date of this proxy statement, our Board of
    Directors knows of no matters to be presented at the annual
    meeting other than those set forth in the Notice of Annual
    Meeting of Stockholders and described in this proxy statement.
    Should any other matter requiring a vote of the stockholders
    arise at the annual meeting, the persons named in the
    accompanying proxy will vote on such matter in their discretion.
</DIV>
<A name='119'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STOCKHOLDER
    PROPOSALS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholder proposals intended to be presented at the 2009
    annual meeting of stockholders must be received by our Secretary
    at our principal executive offices no later than January 1, 2009
    in order to be considered for inclusion in our proxy statement
    relating to the 2009 annual meeting pursuant to
    <FONT style="white-space: nowrap">Rule&#160;14a-8</FONT>
    under the Securities Exchange Act of 1934, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For a proposal of a stockholder to be presented at the 2009
    annual meeting of stockholders, other than a stockholder
    proposal included in the proxy statement pursuant to
    <FONT style="white-space: nowrap">Rule&#160;14a-8,</FONT>
    it must be received by our Secretary at our principal executive
    offices in the timeframe as provided in our Bylaws. To be
    timely, our Bylaws currently require that a stockholder&#146;s
    notice set forth all information required under
    Section&#160;1.11 of our Bylaws and be delivered to our
    Secretary at our principal executive office not earlier than the
    150<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;day
    nor later than 5:00&#160;p.m., Eastern Time, on the
    120<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;day
    prior to the first anniversary of the date of mailing of the
    notice for the preceding year&#146;s annual meeting; provided,
    however, that in the event that the date of the annual meeting
    is advanced or delayed by more than 30&#160;days from the first
    anniversary of the date of the preceding year&#146;s annual
    meeting, notice by the stockholder to be timely must be so
    delivered not earlier than the
    150<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;day
    prior to the date of such annual meeting and not later than
    5:00&#160;p.m., Eastern Time, on the later of the
    120<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;day
    prior to the date of such annual meeting or the tenth day
    following the day on which public announcement of the date of
    such meeting is first made. Our Bylaws also currently provide
    that, in the event our Board of Directors increases or decreases
    the maximum or minimum number of directors in accordance with
    our Bylaws, and there is no public announcement of such action
    at least 130&#160;days prior to the first anniversary of the
    date of mailing of the notice of the preceding year&#146;s
    annual meeting, a stockholder&#146;s notice shall also be
    considered timely, but only with respect to nominees for any new
    positions created by such
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    35
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    increase, if it shall be delivered to our Secretary at our
    principal executive office not later than 5:00&#160;p.m.,
    Eastern Time, on the tenth day following the day on which such
    public announcement is first made by us.
</DIV>
<A name='120'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ANNUAL
    REPORT ON
    <FONT style="white-space: nowrap">FORM&#160;10-K</FONT></FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007 is enclosed with this
    proxy statement but does not constitute a part of the proxy
    soliciting material. The company will furnish a copy of its
    annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007 free of charge
    (excluding exhibits, for which a reasonable charge shall be
    imposed) to each stockholder who forwards a written request to
    our Secretary, Daniel Munley, at Alesco Financial Inc., Cira
    Centre, 2929 Arch Street,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;Floor,
    Philadelphia, Pennsylvania 19104. You also may access the EDGAR
    version of our annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    (with exhibits) on our website at
    <I>http://www.alescofinancial.com </I>and on the SEC&#146;s
    website at <I>http://www.sec.gov.</I>
</DIV>
<A name='121'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We file annual, quarterly and current reports, proxy statements
    and other information with the SEC. You may read and copy these
    reports, statements or other information filed by us at the
    SEC&#146;s Public Reference Room at 100&#160;F&#160;Street,
    N.E., Room&#160;1024, Washington,&#160;D.C. 20549. Please call
    the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on the public reference rooms. Our SEC
    filings are also available to the public from commercial
    document retrieval services and at the website maintained by the
    SEC at <I>http://www.sec.gov</I>.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;A</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ALESCO
    FINANCIAL INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">2006
    LONG-TERM INCENTIVE PLAN</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Alesco Financial Inc., a Maryland corporation, wishes to attract
    key employees, Directors, officers, advisors and consultants to
    the Company and Subsidiaries, and induce key employees,
    Directors, officers, advisors, consultants and other personnel
    to remain with the Company and Subsidiaries and encourage them
    to increase their efforts to make the Company&#146;s business
    more successful whether directly or through Subsidiaries or
    other Affiliates. In furtherance thereof, the Alesco Financial
    Inc. 2006 Long-Term Incentive Plan is designed to provide
    equity-based incentives to certain Eligible Persons. Awards
    under the Plan may be made to Eligible Persons in the form of
    Options (including Stock Appreciation Rights), Restricted Stock,
    Phantom Shares, Dividend Equivalent Rights and other forms of
    equity based Awards as contemplated herein.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">1.&#160;&#160;<U>DEFINITIONS</U>.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Whenever used herein, the following terms shall have the
    meanings set forth below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Affiliate&#148; </I>means any entity other than a
    Subsidiary that is controlled by or under common control with
    the Company that is designated as an &#147;Affiliate&#148; by
    the Committee in its discretion. In addition, for purposes of
    the Plan, the Manager shall be deemed to be an Affiliate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Award,&#148; </I>except where referring to a particular
    category of grant under the Plan, shall include Options,
    Restricted Stock, Phantom Shares, Dividend Equivalent Rights and
    other equity-based Awards as contemplated herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Award Agreement&#148; </I>means a written agreement in
    a form approved by the Committee, as provided in Section&#160;3.
    An Award Agreement may be, without limitation, an employment or
    other similar agreement containing provisions governing grants
    hereunder, if approved by the Committee for use under the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Board&#148; </I>means the Board of Directors of the
    Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Cause&#148;</I> means, unless otherwise provided in the
    Participant&#146;s Award Agreement (i)&#160;engaging in
    (A)&#160;willful or gross misconduct or (B)&#160;willful or
    gross neglect; (ii)&#160;repeatedly failing to adhere to the
    directions of superiors or the Board or the written policies and
    practices of the Manager or the Company, Subsidiaries or
    Affiliates; (iii)&#160;the commission of a felony or a crime of
    moral turpitude, dishonesty, breach of trust or unethical
    business conduct, or any crime involving the Manager or the
    Company, Subsidiaries, or Affiliates; (iv)&#160;fraud,
    misappropriation or embezzlement; (v)&#160;acts or omissions
    constituting a material failure to perform substantially and
    adequately the duties assigned to the Participant; (vi)&#160;any
    illegal act detrimental to the Manager or the Company,
    Subsidiaries or Affiliates; (vii)&#160;repeated failure to
    devote substantially all of the Participant&#146;s business time
    and efforts to the Manager, the Company, Subsidiaries, or
    Affiliates if required by the Participant&#146;s employment
    agreement; or (viii)&#160;the Participant&#146;s failure to
    competently perform his duties after receiving notice from the
    Manager, the Company, a Subsidiary, or Affiliate, specifically
    identifying the manner in which the Participant has failed to
    perform; provided, however, that, if at any particular time the
    Participant is subject to an effective employment agreement with
    the Manager or the Company, then, in lieu of the foregoing
    definition, &#147;Cause&#148; shall at that time have such
    meaning as may be specified in such employment agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Change in Control&#148; </I>means the happening of any
    of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;any &#147;person,&#148; including a &#147;group&#148;
    (as such terms are used in Sections&#160;13(d) and 14(d) of the
    Exchange Act, but excluding the Company or the Manager, any
    entity controlling, controlled by or under common control with
    the Company or the Manager, any trustee, fiduciary or other
    person or entity holding securities under any employee benefit
    plan or trust of the Company, the Manager or any such entity,
    and with respect to any particular Participant, the Participant
    and any &#147;group&#148; (as such term is used in Section
    13(d)(3) of the Exchange Act) of which the Participant is a
    member), is
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    or becomes the &#147;beneficial owner&#148; (as defined in
    Rule&#160;13(d)(3) under the Exchange Act), directly or
    indirectly, of securities of the Company or the Manager
    representing 50% or more of either (A)&#160;the combined voting
    power of the Company&#146;s or the Manager&#146;s then
    outstanding securities or (B)&#160;the then outstanding Common
    Stock or securities (or other equity interests) of the Manager
    (in either such case other than as a result of an acquisition of
    securities directly from the Company or the Manager);&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;any consolidation or merger of the Company (with
    respect to persons described in clause&#160;(i) of the
    definition of Eligible Persons or the Manager (with respect to
    persons described in clause&#160;(ii) of the definition of
    Eligible Persons) where the stockholders of the Company or the
    Manager, as applicable, immediately prior to the consolidation
    or merger, would not, immediately after the consolidation or
    merger, beneficially own (as such term is defined in
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    under the Exchange Act), directly or indirectly, shares
    representing in the aggregate 50% or more of the combined voting
    power of the securities of the corporation issuing cash or
    securities in the consolidation or merger (or of its ultimate
    parent corporation, if any);&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;there shall occur (A)&#160;any sale, lease, exchange
    or other transfer (in one transaction or a series of
    transactions contemplated or arranged by any party as a single
    plan) of all or substantially all of the assets of the Company
    or the Manager as applicable, other than a sale or disposition
    by the Company or the Manager as applicable, of all or
    substantially all of the Company&#146;s or the Manager&#146;s
    assets to an entity, at least 50% of the combined voting power
    of the voting securities of which are owned by
    &#147;persons&#148; (as defined above) in substantially the same
    proportion as their ownership of the Company or the Manager
    immediately prior to such sale or (B)&#160;the approval by
    stockholders of the Company or the Manager of any plan or
    proposal for the liquidation or dissolution of the Company or
    the Manager;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;the members of the Board at the beginning of any
    consecutive 24-calendar-month period (the &#147;Incumbent
    Directors&#148;) cease for any reason other than due to death to
    constitute at least a majority of the members of the Board;
    provided that any Director whose election, or nomination for
    election by the Company&#146;s stockholders, was approved or
    ratified by a vote of at least a majority of the members of the
    Board then still in office who were members of the Board at the
    beginning of such 24-calendar-month period, shall be deemed to
    be an Incumbent Director.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing provisions of this definition of
    Change in Control, if at any time the Participant is subject to
    an effective employment agreement with the Company (or, while
    the Manager is an Affiliate, with the Manager) which expressly
    provides for the definition of a change in control of the
    Company or the Manager, then, in lieu of the foregoing
    definition, &#147;Change in Control&#148; shall at that time
    have such meaning as may be specified, in such employment
    agreement, with respect to the Company and the Manager, as
    applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, notwithstanding the foregoing, no event or
    condition shall constitute a Change in Control to the extent
    that, if it were, a 20% tax would be imposed under
    Section&#160;409A of the Code; provided that, in such a case,
    the event or condition shall continue to constitute a Change in
    Control to the maximum extent possible (e.g., if applicable, in
    respect of vesting without an acceleration of distribution)
    without causing the imposition of such 20% tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Code&#148; </I>means the Internal Revenue Code of 1986,
    as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Committee&#148; </I>means the Compensation Committee of
    the Board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Common Stock&#148; </I>means the Company&#146;s Common
    Stock, par value $.001 per share, either currently existing or
    authorized hereafter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Company&#148; </I>means Alesco Financial Inc., a
    Maryland corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Director&#148; </I>means a non-employee director of the
    Company or Subsidiary that is not an employee of the Company or
    a Subsidiary.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Disability&#148; </I>means, unless otherwise provided
    by the Committee in the Participant&#146;s Award Agreement, a
    disability which renders the Participant incapable of performing
    all of his or her duties for a period of at least 180
    consecutive or non-consecutive days during any consecutive
    twelve-month period. Notwithstanding the foregoing, no
    circumstances or condition shall constitute a Disability to the
    extent that, if it were, a 20% tax would be imposed under
    Section&#160;409A of the Code; provided that, in such a case,
    the event or condition shall continue to constitute a Disability
    to the maximum extent possible (e.g., if applicable, in respect
    of vesting without an acceleration of distribution) without
    causing the imposition of such 20% tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Dividend Equivalent Right&#148; </I>means a right
    awarded under Section&#160;8 to receive (or have credited) the
    equivalent value of dividends paid on Common Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Eligible Person&#148; </I>means (i)&#160;a key
    employee, Director, officer, advisor, consultant or other
    personnel of the Company or Subsidiaries or other person
    expected to provide significant services (of a type expressly
    approved by the Committee as covered services for these
    purposes) to the Company or Subsidiaries or (ii)&#160;the
    Manager, joint venture affiliates of the Company or other
    entities designated in the discretion of the Committee, or
    officers, directors, employees, members, or managers of the
    foregoing. In the case of grants directly or indirectly to
    employees of entities described in clause&#160;(ii) of the
    foregoing sentence, the Committee may make arrangements with
    such entities as it may consider appropriate in its discretion,
    in light of tax and other considerations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Exchange Act&#148; </I>means the Securities Exchange
    Act of 1934, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Fair Market Value&#148; </I>per Share as of a
    particular date means (i)&#160;if Shares are then listed on a
    national securities exchange or quoted or reported on the NASDAQ
    National Market (&#147;NASDAQ&#148;), the closing sales price
    per Share on the exchange or NASDAQ for the last preceding date
    on which there was a sale of Shares on such exchange or NASDAQ,
    as determined by the Committee, (ii)&#160;if Shares are not then
    listed on a national securities exchange or quoted on NASDAQ but
    are then traded on an over-the-counter market, the average of
    the closing bid and asked prices for the Shares in such
    over-the-counter market for the last preceding date on which
    there was a sale of such Shares in such market, as determined by
    the Committee, or (iii)&#160;if Shares are not then listed on a
    national securities exchange or quoted on NASDAQ or traded on an
    over-the-counter market, such value as the Committee in its
    discretion may in good faith determine; provided that, where the
    Shares are so listed or traded, the Committee may make such
    discretionary determinations where the Shares have not been
    traded for 10 consecutive trading days.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Grantee&#148; </I>means an Eligible Person granted
    Restricted Stock, Phantom Shares, Dividend Equivalent Rights or
    such other equity-based Awards (other than an Option) as may be
    granted pursuant to Section&#160;9.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Incentive Stock Option&#148; </I>means an
    &#147;incentive stock option&#148; within the meaning of
    Section&#160;422(b) of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Manager&#148; </I>means Cohen Bros., or any successor
    thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Non-Qualified Stock Option&#148; </I>means an Option
    which is not an Incentive Stock Option.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Option&#148; </I>means the right to purchase, at a
    price and for the term fixed by the Committee in accordance with
    the Plan, and subject to such other limitations and restrictions
    in the Plan and the applicable Award Agreement, a number of
    Shares determined by the Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Optionee&#148; </I>means an Eligible Person to whom an
    Option is granted, or the Successors of the Optionee, as the
    context so requires.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Option Price&#148; </I>means the price per Share,
    determined by the Board or the Committee, at which an Option may
    be exercised.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Participant&#148; </I>means a Grantee or Optionee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Performance Goals&#148; </I>has the meaning set forth
    in Section&#160;10.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Phantom Share&#148; </I>means a right, pursuant to the
    Plan, of the Grantee to payment of the Phantom Share Value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Phantom Share Value,&#148; </I>per Phantom Share, means
    the Fair Market Value of a Share or, if so provided by the
    Committee, such Fair Market Value to the extent in excess of a
    base value established by the Committee at the time of grant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Plan&#148; </I>means the Company&#146;s 2006 Long-Term
    Incentive Plan, as set forth herein and as the same may from
    time to time be amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Restricted Stock&#148; </I>means an award of Shares
    that are subject to restrictions hereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Retirement&#148; </I>means, unless otherwise provided
    by the Committee in the Participant&#146;s Award Agreement, the
    Termination of Service (other than for Cause) of a Participant
    on or after the Participant&#146;s attainment of age&#160;65 or
    on or after the Participant&#146;s attainment of age&#160;55
    with five consecutive years of service with the Company,
    Subsidiaries or Affiliates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Securities Act&#148; </I>means the Securities Act of
    1933, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Settlement Date&#148; </I>means the date determined
    under Section&#160;7.4(c).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Shares&#148; </I>means shares of Common Stock of the
    Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Stock Appreciation Right&#148; </I>means an Option
    described in Section&#160;5.7.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Subsidiary&#148; </I>means any corporation, partnership
    or other entity of which at least 50% of the economic interest
    in the equity is owned (directly or indirectly) by the Company,
    the Manager or by another subsidiary. In the event the Company
    or the Manager becomes such a subsidiary of another company
    (directly or indirectly), the provisions hereof applicable to
    subsidiaries shall, unless otherwise determined by the
    Committee, also be applicable to such parent company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Successor of the Optionee&#148; </I>means the legal
    representative of the estate of a deceased Optionee or the
    person or persons who shall acquire the right to exercise an
    Option by bequest or inheritance or by reason of the death of
    the Optionee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Termination Event&#148; </I>means (i)&#160;a Change in
    Control or (ii)&#160;with respect to employees of the Manager,
    the termination of the management agreement between the Manager
    and the Company, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Termination of Service&#148; </I>means a
    Participant&#146;s termination of employment or other service
    (as a consultant or otherwise), as applicable, with the Company,
    Subsidiaries, the Manager and Affiliates.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">2.&#160;&#160;<U>EFFECTIVE
    DATE AND TERMINATION OF PLAN</U>.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The effective date of the Plan is October&#160;6, 2006. The Plan
    shall terminate on, and no Award shall be granted hereunder on
    or after, the
    <FONT style="white-space: nowrap">10-year</FONT>
    anniversary of the earlier of the approval of the Plan by
    (i)&#160;the Board or (ii)&#160;the stockholders of the Company;
    provided, however, that the Board may at any time prior to that
    date terminate the Plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">3.&#160;&#160;<U>ADMINISTRATION
    OF PLAN</U>.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The Plan shall be administered by the Committee. The
    Committee, upon and after such time as it is subject to
    Section&#160;16 of the Exchange Act, shall consist of at least
    two individuals each of whom shall be a &#147;nonemployee
    director&#148; as defined in
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    as promulgated by the Securities and Exchange Commission
    <FONT style="white-space: nowrap">(&#147;Rule&#160;16b-3&#148;)</FONT>
    under the Exchange Act and shall, at such times as the Company
    is subject to Section&#160;162(m) of the Code (to the extent
    relief from the limitation of Section&#160;162(m) of the Code is
    sought with respect to Awards), qualify as &#147;outside
    directors&#148; for purposes of Section&#160;162(m) of the Code;
    provided that no action taken by the Committee (including,
    without limitation, grants) shall be invalidated because any or
    all of the members of the Committee fails to satisfy the
    foregoing requirements of this sentence. The acts of a majority
    of the members present at any meeting of the Committee at which
    a quorum is present, or acts approved in
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    writing by a majority of the entire Committee, shall be the acts
    of the Committee for purposes of the Plan. If and to the extent
    applicable, no member of the Committee may act as to matters
    under the Plan specifically relating to such member.
    Notwithstanding the other foregoing provisions of this
    Section&#160;3(a), any Award under the Plan to a person who is a
    member of the Committee shall be made and administered by the
    Board. If no Committee is designated by the Board to act for
    these purposes, the Board shall have the rights and
    responsibilities of the Committee hereunder and under the Award
    Agreements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Subject to the provisions of the Plan, the Committee
    shall in its discretion as reflected by the terms of the Award
    Agreements (i)&#160;authorize the granting of Awards to Eligible
    Persons and (ii)&#160;determine the eligibility of Eligible
    Persons to receive an Award, as well as determine the number of
    Shares to be covered under any Award Agreement, considering the
    position and responsibilities of the Eligible Persons, the
    nature and value to the Company of the Eligible Person&#146;s
    present and potential contribution to the success of the Company
    whether directly or through Subsidiaries or Affiliates and such
    other factors as the Committee may deem relevant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;The Award Agreement shall contain such other terms,
    provisions and conditions not inconsistent herewith as shall be
    determined by the Committee. In the event that any Award
    Agreement or other agreement hereunder provides (without regard
    to this sentence) for the obligation of the Company,
    Subsidiaries or Affiliates to purchase or repurchase Shares from
    a Participant or any other person, then, notwithstanding the
    provisions of the Award Agreement or such other agreement, such
    obligation shall not apply to the extent that the purchase or
    repurchase would not be permitted under governing state law. The
    Participant shall take whatever additional actions and execute
    whatever additional documents the Committee may in its
    reasonable judgment deem necessary or advisable in order to
    carry out or effect one or more of the obligations or
    restrictions imposed on the Participant pursuant to the express
    provisions of the Plan and the Award Agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">4.&#160;&#160;<U>SHARES
    AND UNITS SUBJECT TO THE
    PLAN.</U></FONT></B><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.1&#160;&#160;<I><U>In General</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Subject to adjustments as provided in Section&#160;14,
    the total number of Shares subject to Awards granted under the
    Plan (including securities convertible into or exchangeable for
    Shares), in the aggregate, may not exceed 4,165,000. In no event
    may an Eligible Person receive Options for more than
    250,000&#160;Shares on an annual basis, and the maximum number
    of Shares that may underlie Awards, other than Options, granted
    in any one year to any Eligible Person, shall not exceed
    600,000. Shares distributed under the Plan may be treasury
    Shares or authorized but unissued Shares. Any Shares that have
    been granted as Restricted Stock or that have been reserved for
    distribution in payment for Options, Phantom Shares or other
    equity-based Awards but are later forfeited or for any other
    reason are not payable under the Plan may again be made the
    subject of Awards under the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Shares subject to Dividend Equivalent Rights, other
    than Dividend Equivalent Rights based directly on the dividends
    payable with respect to Shares subject to Options or the
    dividends payable on a number of Shares corresponding to the
    number of Phantom Shares awarded, shall be subject to the
    limitation of Section&#160;4.1(a). Notwithstanding
    Section&#160;4.1(a), except in the case of Awards intended to
    qualify for relief from the limitations of Section&#160;162(m)
    of the Code, there shall be no limit on the number of Phantom
    Shares or Dividend Equivalent Rights to the extent they are paid
    out in cash that may be granted under the Plan. If any Phantom
    Shares, Dividend Equivalent Rights or other equity-based Awards
    under Section&#160;9 are paid out in cash, then, notwithstanding
    the first sentence of Section&#160;4.1(a) above (but subject to
    the second sentence thereof) the underlying Shares may again be
    made the subject of Awards under the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;The certificates for Shares issued hereunder may
    include any legend which the Committee deems appropriate to
    reflect any rights of first refusal, restrictions under the
    Shareholders Agreement (as defined in Section&#160;4.1(d)) or
    other restrictions on transfer hereunder or under the Award
    Agreement, or as the Committee may otherwise deem appropriate.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.2&#160;&#160;<I><U>Options</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to adjustments pursuant to Section&#160;14, and subject
    to the last sentence of Section&#160;4.1(a), Options with
    respect to an aggregate of no more than 500,000&#160;Shares may
    be granted under the Plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">5.&#160;&#160;<U>PROVISIONS
    APPLICABLE TO STOCK
    OPTIONS.</U></FONT></B><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.1&#160;&#160;<I><U>Grant of Option</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the other terms of the Plan, the Committee shall, in
    its discretion as reflected by the terms of the applicable Award
    Agreement: (i)&#160;determine and designate from time to time
    those Eligible Persons to whom Options are to be granted and the
    number of Shares to be optioned to each Eligible Person;
    (ii)&#160;determine whether to grant Options intended to be
    Incentive Stock Options, or to grant Non-Qualified Stock
    Options, or both (to the extent that any Option does not qualify
    as an Incentive Stock Option, it shall constitute a separate
    Non-Qualified Stock Option); provided that Incentive Stock
    Options may only be granted to employees of the Company,
    Subsidiaries or Affiliates; (iii)&#160;determine the time or
    times when and the manner and condition in which each Option
    shall be exercisable and the duration of the exercise period;
    (iv)&#160;designate each Option as one intended to be an
    Incentive Stock Option or as a Non-Qualified Stock Option; and
    (v)&#160;determine or impose other conditions to the grant or
    exercise of Options under the Plan as it may deem appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.2&#160;&#160;<I><U>Option Price</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Option Price shall be determined by the Committee on the
    date the Option is granted and reflected in the Award Agreement,
    as the same may be amended from time to time. Any particular
    Award Agreement may provide for different Option Prices for
    specified amounts of Shares subject to the Option; provided that
    the Option Price shall not be less than 100% of the Fair Market
    Value of a Share on the day the Option is granted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.3&#160;&#160;<I><U>Period of Option and
    Vesting</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Unless earlier expired, forfeited or otherwise
    terminated, each Option shall expire in its entirety upon the
    10th&#160;anniversary of the date of grant or shall have such
    other term as is set forth in the applicable Award Agreement.
    The Option shall also expire, be forfeited and terminate at such
    times and in such circumstances as otherwise provided hereunder
    or under the Award Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Each Option, to the extent that the Optionee has not
    had a Termination of Service and the Option has not otherwise
    lapsed, expired, terminated or been forfeited, shall first
    become exercisable according to the terms and conditions set
    forth in the Award Agreement, as determined by the Committee at
    the time of grant. Unless otherwise provided in the Plan or the
    Award Agreement, no Option (or portion thereof) shall ever be
    exercisable if the Optionee has a Termination of Service before
    the time at which such Option (or portion thereof) would
    otherwise have become exercisable, and any Option that would
    otherwise become exercisable after such Termination of Service
    shall not become exercisable and shall be forfeited upon such
    termination. Notwithstanding the foregoing provisions of this
    Section&#160;5.3(b), Options exercisable pursuant to the
    schedule set forth by the Committee at the time of the grant may
    be fully or more rapidly exercisable or otherwise vested at any
    time in the discretion of the Committee. Upon and after the
    death of an Optionee, such Optionee&#146;s Options, if and to
    the extent otherwise exercisable hereunder or under the
    applicable Award Agreement after the Optionee&#146;s death, may
    be exercised by the Successors of the Optionee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.4&#160;&#160;<I><U>Exercisability Upon and After Termination
    of Optionee</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Subject to provisions of the Award Agreement, if an
    Optionee has a Termination of Service other than by the Company
    or Subsidiaries for Cause, or other than by reason of death,
    Retirement or Disability, then no exercise of an Option may
    occur after the expiration of the three-month period to follow
    the termination, or if earlier, the expiration of the term of
    the Option as provided under Section&#160;5.3(a); provided that,
    if the Optionee should die after the Termination of Service, but
    while the Option is still in effect, the Option (if and to the
    extent otherwise exercisable by the Optionee at the time of
    death) may be exercised until the earlier of (i)&#160;one year
    from the date of the Termination of Service of the Optionee, or
    (ii)&#160;the date on which the term of the Option expires in
    accordance with Section&#160;5.3(a).
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Subject to provisions of the Award Agreement, in the
    event the Optionee has a Termination of Service on account of
    death, Disability or Retirement, the Option (whether or not
    otherwise exercisable) may be exercised until the earlier of
    (i)&#160;one year from the date of the Termination of Service of
    the Optionee, or (ii)&#160;the date on which the term of the
    Option expires in accordance with Section&#160;5.3.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Notwithstanding any other provision hereof, unless
    otherwise provided in the Award Agreement, if the Optionee has a
    Termination of Service for Cause, the Optionee&#146;s Options,
    to the extent then unexercised, shall thereupon cease to be
    exercisable and shall be forfeited forthwith.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.5&#160;&#160;<I><U>Exercise of Options</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Subject to vesting, restrictions on exercisability and
    other restrictions provided for hereunder or otherwise imposed
    in accordance herewith, an Option may be exercised, and payment
    in full of the aggregate Option Price made, by an Optionee only
    by written notice (in the form prescribed by the Committee) to
    the Company or its designee specifying the number of Shares to
    be purchased.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Without limiting the scope of the Committee&#146;s
    discretion hereunder, the Committee may impose such other
    restrictions on the exercise of Options (whether or not in the
    nature of the foregoing restrictions) as it may deem necessary
    or appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.6&#160;&#160;<I><U>Payment</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The aggregate Option Price shall be paid in full upon
    the exercise of the Option. Payment must be made by one of the
    following methods:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;a certified or bank cashier&#146;s check;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;subject to Section&#160;12(e), the proceeds of a
    Company loan program or third-party sale program or a notice
    acceptable to the Committee given as consideration under such a
    program, in each case if permitted by the Committee in its
    discretion, if such a program has been established and the
    Optionee is eligible to participate therein;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;if approved by the Committee in its discretion,
    Shares of previously owned Common Stock, which have been
    previously owned for more than six months, having an aggregate
    Fair Market Value on the date of exercise equal to the aggregate
    Option Price;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;if approved by the Committee in its discretion,
    through the written election of the Optionee to have Shares
    withheld by the Company from the Shares otherwise to be
    received, with such withheld Shares having an aggregate Fair
    Market Value on the date of exercise equal to the aggregate
    Option Price;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;by any combination of such methods of payment or any
    other method acceptable to the Committee in its discretion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Except in the case of Options exercised by certified or
    bank cashier&#146;s check, the Committee may impose limitations
    and prohibitions on the exercise of Options as it deems
    appropriate, including, without limitation, any limitation or
    prohibition designed to avoid accounting consequences which may
    result from the use of Common Stock as payment upon exercise of
    an Option.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;The Committee may provide that no Option may be
    exercised with respect to any fractional Share. Any fractional
    Shares resulting from an Optionee&#146;s exercise that is
    accepted by the Company shall in the discretion of the Committee
    be paid in cash.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.7&#160;&#160;<I><U>Stock Appreciation
    Rights</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The Committee, in its discretion, may also permit
    (taking into account, without limitation, the application of
    Section&#160;409A of the Code, as the Committee may deem
    appropriate) the Optionee to elect to receive upon the exercise
    of an Option a combination of Shares and cash, or, in the
    discretion of the Committee, either Shares or solely in cash,
    with an aggregate Fair Market Value (or, to the extent of
    payment in cash, in an amount) equal to the excess of the Fair
    Market Value of the Shares with respect to which the Option is
    being exercised over the aggregate Option Price, as determined
    as of the day the Option is exercised.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Upon the exercise of any Stock Appreciation Rights, the
    greater of (i)&#160;the number of shares subject to the Stock
    Appreciation Rights so exercised, and (ii)&#160;the number of
    Shares, if any, that are issued in connection with such
    exercise, shall be deducted from the number of Shares available
    for issuance under the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;In no event may a Stock Appreciation Right be
    transferred by a holder thereof for consideration without the
    prior approval of the Company&#146;s stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.8&#160;&#160;<I><U>Exercise by Successors</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An Option may be exercised, and payment in full of the aggregate
    Option Price made, by the Successors of the Optionee only by
    written notice (in the form prescribed by the Committee) to the
    Company specifying the number of Shares to be purchased. Such
    notice shall state that the aggregate Option Price will be paid
    in full, or that the Option will be exercised as otherwise
    provided hereunder, in the discretion of the Company or the
    Committee, if and as applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.9&#160;&#160;<I><U>Nontransferability of
    Option</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each Option granted under the Plan shall be nontransferable by
    the Optionee except by will or the laws of descent and
    distribution of the state wherein the Optionee is domiciled at
    the time of his death; provided, however, that the Committee may
    (but need not) permit other transfers, where the Committee
    concludes that such transferability (i)&#160;does not result in
    accelerated U.S.&#160;federal income taxation, (ii)&#160;does
    not cause any Option intended to be an Incentive Stock Option to
    fail to be described in Section&#160;422(b) of the Code,
    (iii)&#160;complies with applicable law, including securities
    laws, and (iv)&#160;is otherwise appropriate and desirable. In
    no event may an Option be transferred by an Optionee for
    consideration without the prior approval of the Company&#146;s
    stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.10&#160;&#160;<I><U>Deferral</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee (taking into account, without limitation, the
    possible application of Section&#160;409A of the Code, as the
    Committee may deem appropriate) may establish a program under
    which Participants will have Phantom Shares subject to
    Section&#160;7 credited upon their exercise of Options, rather
    than receiving Shares at that time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.11&#160;&#160;<I><U>Certain Incentive Stock Option
    Provisions</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;In no event may an Incentive Stock Option be granted
    other than to employees of a &#147;subsidiary corporation&#148;
    or a &#147;parent corporation,&#148; as defined in
    Section&#160;424(f) of the Code, with respect to the Company.
    The aggregate Fair Market Value, determined as of the date an
    Option is granted, of the Common Stock for which any Optionee
    may be awarded Incentive Stock Options which are first
    exercisable by the Optionee during any calendar year under the
    Plan (or any other stock option plan required to be taken into
    account under Section&#160;422(d) of the Code) shall not exceed
    $100,000. To the extent the $100,000 limit referred to in the
    preceding sentence is exceeded, an Option will be treated as a
    Non-Qualified Stock Option.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;If Shares acquired upon exercise of an Incentive Stock
    Option are disposed of in a disqualifying disposition within the
    meaning of Section&#160;422 of the Code by an Optionee prior to
    the expiration of either two years from the date of grant of
    such Option or one year from the transfer of Shares to the
    Optionee pursuant to the exercise of such Option, or in any
    other disqualifying disposition within the meaning of
    Section&#160;422 of the Code, such Optionee shall notify the
    Company in writing as soon as practicable thereafter of the date
    and terms of such disposition and, if the Company (or an
    Affiliate) thereupon has a tax-withholding obligation, shall pay
    to the Company (or such Affiliate) an amount equal to any
    withholding tax the Company (or Affiliate) is required to pay as
    a result of the disqualifying disposition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;The Option Price with respect to each Incentive Stock
    Option shall not be less than 100%, or 110% in the case of an
    individual described in Section&#160;422(b)(6) of the Code
    (relating to certain 10% owners), of the Fair Market Value of a
    Share on the day the Option is granted. Also, in the case of
    such an individual who is granted an Incentive Stock Option, the
    term of such Option shall be no more than five years from the
    date of grant.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">6.&#160;&#160;<U>PROVISIONS
    APPLICABLE TO RESTRICTED
    STOCK</U>.</FONT></B><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.1&#160;&#160;<I><U>Grant of Restricted
    Stock</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;In connection with the grant of Restricted Stock,
    whether or not performance goals (as provided for under
    Section&#160;10)&#160;apply thereto, the Committee shall
    establish one or more vesting periods with respect to the shares
    of Restricted Stock granted, the length of which shall be
    determined in the discretion of the Committee. Subject to the
    provisions of this Section&#160;6, the applicable Award
    Agreement and the other provisions of the Plan, restrictions on
    Restricted Stock shall lapse if the Grantee satisfies all
    applicable employment or other service requirements through the
    end of the applicable vesting period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Subject to the other terms of the Plan, the Committee
    may, in its discretion as reflected by the terms of the
    applicable Award Agreement: (i)&#160;authorize the granting of
    Restricted Stock to Eligible Persons; (ii)&#160;provide a
    specified purchase price for the Restricted Stock (whether or
    not the payment of a purchase price is required by any state law
    applicable to the Company); (iii)&#160;determine the
    restrictions applicable to Restricted Stock and
    (iv)&#160;determine or impose other conditions, including any
    applicable Performance Goals, to the grant of Restricted Stock
    under the Plan as it may deem appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.2&#160;&#160;<I><U>Certificates/Book Entry</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Unless otherwise provided by the Committee, each
    Grantee of Restricted Stock shall be issued a stock certificate
    in respect of Shares of Restricted Stock awarded under the Plan.
    Each such certificate shall be registered in the name of the
    Grantee. Without limiting the generality of Section&#160;4.1(c),
    the certificates for Shares of Restricted Stock issued hereunder
    may include any legend which the Committee deems appropriate to
    reflect any restrictions on transfer hereunder or under the
    Award Agreement, or as the Committee may otherwise deem
    appropriate, and, without limiting the generality of the
    foregoing, shall bear a legend referring to the terms,
    conditions, and restrictions applicable to such Award,
    substantially in the following form:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK
    REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS
    (INCLUDING FORFEITURE) OF THE ALESCO FINANCIAL INC. 2006
    LONG-TERM INCENTIVE PLAN AND AN AWARD AGREEMENT ENTERED INTO
    BETWEEN THE REGISTERED OWNER AND ALESCO FINANCIAL INC. COPIES OF
    SUCH PLAN AND AWARD AGREEMENT ARE ON FILE IN THE OFFICES OF
    ALESCO FINANCIAL INC. AT CIRA CENTRE, 2929 ARCH STREET,
    17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&#160;FLOOR,
    PHILADELPHIA, PENNSYLVANIA 19104.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The Committee shall require that any stock certificates
    evidencing such Shares be held in custody by the Company or its
    designee until the restrictions hereunder shall have lapsed, and
    that, as a condition of any Award of Restricted Stock, the
    Grantee shall have delivered to the Company or its designee a
    stock power, endorsed in blank, relating to the stock covered by
    such Award. If and when such restrictions so lapse, the stock
    certificates shall be delivered by the Company to the Grantee or
    his or her designee as provided in Section&#160;6.3 (and the
    stock power shall cease to be of effect).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Where no certificate is issued in the name of the
    Grantee, a &#147;book entry&#148; (by computerized or manual
    entry) shall be made in the records of the Company (or, if
    applicable, the Company&#146;s transfer agent) to evidence an
    award of Shares of Restricted Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.3&#160;&#160;<I><U>Restrictions and
    Conditions</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless otherwise provided by the Committee, the Shares of
    Restricted Stock awarded pursuant to the Plan shall be subject
    to the following restrictions and conditions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Subject to the provisions of the Plan and the Award
    Agreements, during a period commencing with the date of such
    Award and ending on the date the period of forfeiture with
    respect to such Shares lapses, the Grantee shall not be
    permitted voluntarily or involuntarily to sell, transfer,
    pledge, anticipate, alienate, encumber or assign Shares of
    Restricted Stock awarded under the Plan (or have such Shares
    attached or garnished). Subject to the provisions of the Award
    Agreements and clause&#160;(iii) below, the period of forfeiture
    with respect to Shares granted hereunder shall lapse as provided
    in the applicable
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Award Agreement. Notwithstanding the foregoing, unless otherwise
    expressly provided by the Committee, the period of forfeiture
    with respect to such Shares shall only lapse as to whole Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Except as provided in the foregoing clause (i), below
    in this clause&#160;(ii) in Section&#160;14, or as otherwise
    provided in the applicable Award Agreement, the Grantee shall
    have, in respect of the Shares of Restricted Stock, all of the
    rights of a shareholder of the Company, including the right to
    vote the Shares and the right to receive any cash dividends as
    and when such dividends are declared and paid by the Company (or
    as soon as practicable thereafter); provided, however, that cash
    dividends on such Shares shall, unless otherwise provided by the
    Committee, be held by the Company (unsegregated as a part of its
    general assets) until the period of forfeiture lapses (and
    forfeited if the underlying Shares are forfeited), and paid over
    to the Grantee (without interest) as soon as practicable after
    such period lapses (if not forfeited). Certificates for Shares
    (not subject to restrictions) shall be delivered to the Grantee
    or his or her designee promptly after, and only after, the
    period of forfeiture shall lapse without forfeiture in respect
    of such Shares of Restricted Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;Except as otherwise provided in the applicable Award
    Agreement, and subject to clause&#160;(iv) below, if the Grantee
    has a Termination of Service by the Company and Subsidiaries
    (or, if applicable, Affiliates) for Cause, or by the Grantee for
    any reason during the applicable period of forfeiture, then
    (A)&#160;all Shares still subject to restriction shall
    thereupon, and with no further action, be forfeited by the
    Grantee, and (B)&#160;the Company shall pay to the Grantee as
    soon as practicable (and in no event more than 30&#160;days)
    after such termination an amount, equal to the lesser of
    (x)&#160;the amount paid by the Grantee for such forfeited
    Restricted Stock as contemplated by Section&#160;6.1, and
    (y)&#160;the Fair Market Value on the date of termination of the
    forfeited Restricted Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;Subject to the provisions of the Award Agreement, in
    the event the Grantee has a Termination of Service on account of
    death, Disability or Retirement, or the Grantee has a
    Termination of Service by the Company and Subsidiaries for any
    reason other than Cause, or in the event of a Termination Event
    (regardless of whether a termination follows thereafter), during
    the applicable period of forfeiture, then restrictions under the
    Plan will immediately lapse on all Restricted Stock granted to
    the applicable Grantee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">7.&#160;&#160;<U>PROVISIONS
    APPLICABLE TO PHANTOM SHARES</U>.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.1&#160;&#160;<I><U>Grant of Phantom Shares</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the other terms of the Plan, the Committee shall, in
    its discretion as reflected by the terms of the applicable Award
    Agreement: (i)&#160;authorize the granting of Phantom Shares to
    Eligible Persons and (ii)&#160;determine or impose other
    conditions to the grant of Phantom Shares under the Plan as it
    may deem appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.2&#160;&#160;<I><U>Term</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee may provide in an Award Agreement that any
    particular Phantom Share shall expire at the end of a specified
    term.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.3&#160;&#160;<I><U>Vesting</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Phantom Shares shall vest as provided in the applicable Award
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.4&#160;&#160;<I><U>Settlement of Phantom
    Shares</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Each vested and outstanding Phantom Share shall be
    settled by the transfer to the Grantee of one Share; provided
    that, the Committee at the time of grant (or, in the appropriate
    case, as determined by the Committee, thereafter) may provide
    that, after consideration of possible accounting issues, a
    Phantom Share may be settled (i)&#160;in cash at the applicable
    Phantom Share Value, (ii)&#160;in cash or by transfer of Shares
    as elected by the Grantee in accordance with procedures
    established by the Committee or (iii)&#160;in cash or by
    transfer of Shares as elected by the Company.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Payment (whether of cash or Shares) in respect of
    Phantom Shares shall be made in a single sum by the Company;
    provided that, with respect to Phantom Shares of a Grantee which
    have a common Settlement Date, the Committee may permit the
    Grantee to elect in accordance with procedures established by
    the Committee (taking into account, without limitation,
    Section&#160;409A of the Code, as the Committee may deem
    appropriate) to receive installment payments over a period not
    to exceed 10&#160;years, rather than a single-sum payment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Unless otherwise provided in the applicable Award
    Agreement, the &#147;Settlement Date&#148; with respect to a
    Phantom Share is the first day of the month to follow the date
    on which the Phantom Share vests; provided that a Grantee may
    elect, in accordance with procedures to be established by the
    Committee, that such Settlement Date will be deferred as elected
    by the Grantee to the first day of the month to follow the
    Grantee&#146;s Termination of Service, or such other time as may
    be permitted by the Committee. Unless otherwise determined by
    the Committee, elections under this Section&#160;7.4(c)(i) must,
    except as may otherwise be permitted under the rules applicable
    under Section&#160;409A of the Code, (A)&#160;be effective at
    least one year after they are made, or, in the case of payments
    to commence at a specific time, be made at least one year before
    the first scheduled payment and (B)&#160;defer the commencement
    of distributions (and each affected distribution) for at least
    five years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;Notwithstanding Section&#160;7.4(c)(i), the Committee
    may provide that distributions of Phantom Shares can be elected
    at any time in those cases in which the Phantom Share Value is
    determined by reference to Fair Market Value to the extent in
    excess of a base value, rather than by reference to unreduced
    Fair Market Value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;Notwithstanding the foregoing, the Settlement Date, if
    not earlier pursuant to this Section&#160;7.4(c), is the date of
    the Grantee&#146;s death.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Notwithstanding the other provisions of this
    Section&#160;7, in the event of a Termination Event, the
    Settlement Date shall be the date of such Termination Event and
    all amounts due with respect to Phantom Shares to a Grantee
    hereunder shall be paid as soon as practicable (but in no event
    more than 30&#160;days) after such Termination Event, unless
    such Grantee elects otherwise in accordance with procedures
    established by the Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Notwithstanding any other provision of the Plan, a
    Grantee may receive any amounts to be paid in installments as
    provided in Section&#160;7.4(b) or deferred by the Grantee as
    provided in Section&#160;7.4(c) in the event of an
    &#147;Unforeseeable Emergency.&#148; For these purposes, an
    &#147;Unforeseeable Emergency,&#148; as determined by the
    Committee in its sole discretion, is a severe financial hardship
    to the Grantee resulting from a sudden and unexpected illness or
    accident of the Grantee or &#147;dependent,&#148; as defined in
    Section&#160;152(a) of the Code, of the Grantee, loss of the
    Grantee&#146;s property due to casualty, or other similar
    extraordinary and unforeseeable circumstances arising as a
    result of events beyond the control of the Grantee. The
    circumstances that will constitute an Unforeseeable Emergency
    will depend upon the facts of each case, but, in any case,
    payment may not be made to the extent that such hardship is or
    may be relieved:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;through reimbursement or compensation by insurance or
    otherwise,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;by liquidation of the Grantee&#146;s assets, to the
    extent the liquidation of such assets would not itself cause
    severe financial hardship,&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;by future cessation of the making of additional
    deferrals under Section&#160;7.4 (b)&#160;and (c).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Without limitation, the need to send a Grantee&#146;s child to
    college or the desire to purchase a home shall not constitute an
    Unforeseeable Emergency. Distributions of amounts because of an
    Unforeseeable Emergency shall be permitted to the extent
    reasonably needed to satisfy the emergency need.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.5&#160;&#160;<I><U>Other Phantom Share
    Provisions</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Rights to payments with respect to Phantom Shares
    granted under the Plan shall not be subject in any manner to
    anticipation, alienation, sale, transfer, assignment, pledge,
    encumbrance, attachment, garnishment, levy, execution, or other
    legal or equitable process, either voluntary or involuntary; and
    any attempt to
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    anticipate, alienate, sell, transfer, assign, pledge, encumber,
    attach or garnish, or levy or execute on any right to payments
    or other benefits payable hereunder, shall be void.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;A Grantee may designate in writing, on forms to be
    prescribed by the Committee, a beneficiary or beneficiaries to
    receive any payments payable after his or her death and may
    amend or revoke such designation at any time. If no beneficiary
    designation is in effect at the time of a Grantee&#146;s death,
    payments hereunder shall be made to the Grantee&#146;s estate.
    If a Grantee with a vested Phantom Share dies, such Phantom
    Share shall be settled and the Phantom Share Value in respect of
    such Phantom Shares paid, and any payments deferred pursuant to
    an election under Section&#160;7.4(c) shall be accelerated and
    paid, as soon as practicable (but no later than 60&#160;days)
    after the date of death to such Grantee&#146;s beneficiary or
    estate, as applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;The Committee may establish a program under which
    distributions with respect to Phantom Shares may be deferred for
    periods in addition to those otherwise contemplated by foregoing
    provisions of this Section&#160;7. Such program may include,
    without limitation, provisions for the crediting of earnings and
    losses on unpaid amounts, and, if permitted by the Committee,
    provisions under which Participants may select from among
    hypothetical investment alternatives for such deferred amounts
    in accordance with procedures established by the Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Notwithstanding any other provision of this
    Section&#160;7, any fractional Phantom Share will be paid out in
    cash at the Phantom Share Value as of the Settlement Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;No Phantom Share shall be construed to give any Grantee
    any rights with respect to Shares or any ownership interest in
    the Company. Except as may be provided in accordance with
    Section&#160;8, no provision of the Plan shall be interpreted to
    confer upon any Grantee any voting, dividend or derivative or
    other similar rights with respect to any Phantom Share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.6&#160;&#160;<I><U>Claims Procedures</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;To the extent that the Plan is determined by the
    Committee to be subject to the Employee Retirement Income
    Security Act of 1974, as amended, the Grantee, or his
    beneficiary hereunder or authorized representative, may file a
    claim for payments with respect to Phantom Shares under the Plan
    by written communication to the Committee or its designee. A
    claim is not considered filed until such communication is
    actually received. Within 90&#160;days (or, if special
    circumstances require an extension of time for processing,
    180&#160;days, in which case notice of such special
    circumstances should be provided within the initial
    <FONT style="white-space: nowrap">90-day</FONT>
    period) after the filing of the claim, the Committee will either:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;approve the claim and take appropriate steps for
    satisfaction of the claim;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;if the claim is wholly or partially denied, advise the
    claimant of such denial by furnishing to him a written notice of
    such denial setting forth (A)&#160;the specific reason or
    reasons for the denial; (B)&#160;specific reference to pertinent
    provisions of the Plan on which the denial is based and, if the
    denial is based in whole or in part on any rule of construction
    or interpretation adopted by the Committee, a reference to such
    rule, a copy of which shall be provided to the claimant;
    (C)&#160;a description of any additional material or information
    necessary for the claimant to perfect the claim and an
    explanation of the reasons why such material or information is
    necessary; and (D)&#160;a reference to this Section&#160;7.6 as
    the provision setting forth the claims procedure under the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The claimant may request a review of any denial of his
    claim by written application to the Committee within
    60&#160;days after receipt of the notice of denial of such
    claim. Within 60&#160;days (or, if special circumstances require
    an extension of time for processing, 120&#160;days, in which
    case notice of such special circumstances should be provided
    within the initial
    <FONT style="white-space: nowrap">60-day</FONT>
    period) after receipt of written application for review, the
    Committee will provide the claimant with its decision in
    writing, including, if the claimant&#146;s claim is not
    approved, specific reasons for the decision and specific
    references to the Plan provisions on which the decision is based.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">8.&#160;&#160;<U>PROVISIONS
    APPLICABLE TO DIVIDEND EQUIVALENT
    RIGHTS</U>.</FONT></B><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.1&#160;&#160;<I><U>Grant of Dividend Equivalent
    Rights</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subject to the other terms of the Plan, the Committee shall, in
    its discretion as reflected by the terms of the Award
    Agreements, authorize the granting of Dividend Equivalent Rights
    to Eligible Persons based on the regular cash dividends declared
    on Common Stock, to be credited as of the dividend payment
    dates, during the period between the date an Award is granted,
    and the date such Award is exercised, vests or expires, as
    determined by the Committee. Such Dividend Equivalent Rights
    shall be converted to cash or additional Shares by such formula
    and at such time and subject to such limitation as may be
    determined by the Committee. With respect to Dividend Equivalent
    Rights granted with respect to Options intended to be qualified
    performance-based compensation for purposes of
    Section&#160;162(m) of the Code, such Dividend Equivalent Rights
    shall be payable regardless of whether such Option is exercised.
    If a Dividend Equivalent Right is granted in respect of another
    Award hereunder, then, unless otherwise stated in the Award
    Agreement, in no event shall the Dividend Equivalent Right be in
    effect for a period beyond the time during which the applicable
    portion of the underlying Award is in effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.2&#160;&#160;<I><U>Certain Terms</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The term of a Dividend Equivalent Right shall be set by
    the Committee in its discretion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Unless otherwise determined by the Committee, except as
    contemplated by Section&#160;8.4, a Dividend Equivalent Right is
    exercisable or payable only while the Participant is an Eligible
    Person.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Payment of the amount determined in accordance with
    Section&#160;8.1 shall be in cash, in Common Stock or a
    combination of the two, as determined by the Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;The Committee may impose such employment-related
    conditions on the grant of a Dividend Equivalent Right as it
    deems appropriate in its discretion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.3&#160;&#160;<I><U>Other Types of Dividend Equivalent
    Rights</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee may establish a program under which Dividend
    Equivalent Rights of a type whether or not described in the
    foregoing provisions of this Section&#160;8 may be granted to
    Participants. For example, and without limitation, the Committee
    may grant a dividend equivalent right in respect of each Share
    subject to an Option or with respect to a Phantom Share, which
    right would consist of the right (subject to Section&#160;8.4)
    to receive a cash payment in an amount equal to the dividend
    distributions paid on a Share from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.4&#160;&#160;<I><U>Deferral</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee may establish a program (taking into account,
    without limitation, the possible application of
    Section&#160;409A of the Code, as the Committee may deem
    appropriate) under which Participants (i)&#160;will have Phantom
    Shares credited, subject to the terms of Sections&#160;7.4 and
    7.5 as though directly applicable with respect thereto, upon the
    granting of Dividend Equivalent Rights, or (ii)&#160;will have
    payments with respect to Dividend Equivalent Rights deferred. In
    the case of the foregoing clause (ii), such program may include,
    without limitation, provisions for the crediting of earnings and
    losses on unpaid amounts, and, if permitted by the Committee,
    provisions under which Participants may select from among
    hypothetical investment alternatives for such deferred amounts
    in accordance with procedures established by the Committee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">9.&#160;&#160;<U>OTHER
    EQUITY-BASED
    AWARDS</U>.</FONT></B><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee shall have the right to grant (i)&#160;other
    Awards based upon the Common Stock having such terms and
    conditions as the Committee may determine, including, without
    limitation, the grant of Shares based upon certain conditions,
    the grant of securities convertible into Common Stock and the
    grant of Stock Appreciation Rights and (ii)&#160;interests
    (which may be expressed as units or otherwise) in subsidiaries,
    as applicable.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">10.&#160;&#160;<U>PERFORMANCE
    GOALS</U>.</FONT></B><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee, in its discretion, may in the case of Awards
    (including, in particular, Awards other than Options) intended
    to qualify for an exception from the limitation imposed by
    Section&#160;162(m) of the Code (&#147;Performance-Based
    Awards&#148;), (i)&#160;establish one or more performance goals
    (&#147;Performance Goals&#148;) as a precondition to the
    issuance or vesting of Awards, and (ii)&#160;provide, in
    connection with the establishment of the Performance Goals, for
    predetermined Awards to those Participants (who continue to meet
    all applicable eligibility requirements) with respect to whom
    the applicable Performance Goals are satisfied. The Performance
    Goals shall be based upon the criteria set forth in
    Exhibit&#160;A hereto which is hereby incorporated herein by
    reference as though set forth in full. The Performance Goals
    shall be established in a timely fashion such that they are
    considered preestablished for purposes of the rules governing
    performance-based compensation under Section&#160;162(m) of the
    Code. Prior to the award or vesting, as applicable, of affected
    Awards hereunder, the Committee shall have certified that any
    applicable Performance Goals, and other material terms of the
    Award, have been satisfied. Performance Goals which do not
    satisfy the foregoing provisions of this Section&#160;10 may be
    established by the Committee with respect to Awards not intended
    to qualify for an exception from the limitations imposed by
    Section&#160;162(m) of the Code.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">11.&#160;&#160;<U>TAX
    WITHHOLDING</U>.</FONT></B><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.1&#160;&#160;<I><U>In General</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company shall be entitled to withhold from any payments or
    deemed payments any amount of tax withholding determined by the
    Committee to be required by law. Without limiting the generality
    of the foregoing, the Committee may, in its discretion, require
    the Participant to pay to the Company at such time as the
    Committee determines the amount that the Committee deems
    necessary to satisfy the Company&#146;s obligation to withhold
    federal, state or local income or other taxes incurred by reason
    of (i)&#160;the exercise of any Option, (ii)&#160;the lapsing of
    any restrictions applicable to any Restricted Stock,
    (iii)&#160;the receipt of a distribution in respect of Phantom
    Shares or Dividend Equivalent Rights or (iv)&#160;any other
    applicable income-recognition event (for example, an election
    under Section&#160;83(b) of the Code).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.2&#160;&#160;<I><U>Share Withholding</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Upon exercise of an Option, the Optionee may, if
    approved by the Committee in its discretion, make a written
    election to have Shares then issued withheld by the Company from
    the Shares otherwise to be received, or to deliver previously
    owned Shares, in order to satisfy the liability for such
    withholding taxes. In the event that the Optionee makes, and the
    Committee permits, such an election, the number of Shares so
    withheld or delivered shall have an aggregate Fair Market Value
    on the date of exercise sufficient to satisfy the applicable
    withholding taxes. Where the exercise of an Option does not give
    rise to an obligation by the Company to withhold federal, state
    or local income or other taxes on the date of exercise, but may
    give rise to such an obligation in the future, the Committee
    may, in its discretion, make such arrangements and impose such
    requirements as it deems necessary or appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Upon lapsing of restrictions on Restricted Stock (or
    other income-recognition event), the Grantee may, if approved by
    the Committee in its discretion, make a written election to have
    Shares withheld by the Company from the Shares otherwise to be
    released from restriction, or to deliver previously owned Shares
    (not subject to restrictions hereunder), in order to satisfy the
    liability for such withholding taxes. In the event that the
    Grantee makes, and the Committee permits, such an election, the
    number of Shares so withheld or delivered shall have an
    aggregate Fair Market Value on the date of exercise sufficient
    to satisfy the applicable withholding taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Upon the making of a distribution in respect of Phantom
    Shares or Dividend Equivalent Rights, the Grantee may, if
    approved by the Committee in its discretion, make a written
    election to have amounts (which may include Shares) withheld by
    the Company from the distribution otherwise to be made, or to
    deliver previously owned Shares (not subject to restrictions
    hereunder), in order to satisfy the liability for such
    withholding taxes. In the event that the Grantee makes, and the
    Committee permits, such an election, any
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shares so withheld or delivered shall have an aggregate Fair
    Market Value on the date of exercise sufficient to satisfy the
    applicable withholding taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.3&#160;&#160;<I><U>Withholding Required</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Notwithstanding anything contained in the Plan or the Award
    Agreement to the contrary, the Participant&#146;s satisfaction
    of any tax-withholding requirements imposed by the Committee
    shall be a condition precedent to the Company&#146;s obligation
    as may otherwise be provided hereunder to provide Shares to the
    Participant and to the release of any restrictions as may
    otherwise be provided hereunder, as applicable; and the
    applicable Option, Restricted Stock, Phantom Shares or Dividend
    Equivalent Rights shall be forfeited upon the failure of the
    Participant to satisfy such requirements with respect to, as
    applicable, (i)&#160;the exercise of the Option, (ii)&#160;the
    lapsing of restrictions on the Restricted Stock (or other
    income-recognition event) or (iii)&#160;distributions in respect
    of any Phantom Share or Dividend Equivalent Right.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">12.&#160;&#160;<U>REGULATIONS
    AND
    APPROVALS</U>.</FONT></B><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The obligation of the Company to sell Shares with
    respect to an Award granted under the Plan shall be subject to
    all applicable laws, rules and regulations, including all
    applicable federal and state securities laws, and the obtaining
    of all such approvals by governmental agencies as may be deemed
    necessary or appropriate by the Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The Committee may make such changes to the Plan as may
    be necessary or appropriate to comply with the rules and
    regulations of any government authority or to obtain tax
    benefits applicable to an Award.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Each grant of Options, Restricted Stock, Phantom Shares
    (or issuance of Shares in respect thereof) or Dividend
    Equivalent Rights (or issuance of Shares in respect thereof), or
    other Award under Section&#160;9 (or issuance of Shares in
    respect thereof), is subject to the requirement that, if at any
    time the Committee determines, in its discretion, that the
    listing, registration or qualification of Shares issuable
    pursuant to the Plan is required by any securities exchange or
    under any state or federal law, or the consent or approval of
    any governmental regulatory body is necessary or desirable as a
    condition of, or in connection with, the issuance of Options,
    Shares of Restricted Stock, Phantom Shares, Dividend Equivalent
    Rights, other Awards or other Shares, no payment shall be made,
    or Phantom Shares or Shares issued or grant of Restricted Stock
    or other Award made, in whole or in part, unless listing,
    registration, qualification, consent or approval has been
    effected or obtained free of any conditions in a manner
    acceptable to the Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;In the event that the disposition of stock acquired
    pursuant to the Plan is not covered by a then current
    registration statement under the Securities Act, and is not
    otherwise exempt from such registration, such Shares shall be
    restricted against transfer to the extent required under the
    Securities Act, and the Committee may require any individual
    receiving Shares pursuant to the Plan, as a condition precedent
    to receipt of such Shares, to represent to the Company in
    writing that such Shares are acquired for investment only and
    not with a view to distribution and that such Shares will be
    disposed of only if registered for sale under the Securities Act
    or if there is an available exemption for such disposition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Notwithstanding any other provision of the Plan, the
    Company shall not be required to take or permit any action under
    the Plan or any Award Agreement which, in the good-faith
    determination of the Company, would result in a material risk of
    a violation by the Company of Section&#160;13(k) of the Exchange
    Act.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">13.&#160;&#160;<U>INTERPRETATION
    AND AMENDMENTS; OTHER
    RULES</U>.</FONT></B><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee may make such rules and regulations and establish
    such procedures for the administration of the Plan as it deems
    appropriate. Without limiting the generality of the foregoing,
    the Committee may (i)&#160;determine the extent, if any, to
    which Options, Phantom Shares or Shares (whether or not Shares
    of Restricted Stock) or Dividend Equivalent Rights shall be
    forfeited (whether or not such forfeiture is expressly
    contemplated hereunder); (ii)&#160;interpret the Plan and the
    Award Agreements hereunder, with such interpretations to be
    conclusive and binding on all persons and otherwise accorded the
    maximum deference permitted by law, provided that the
    Committee&#146;s interpretation shall not be entitled to
    deference on and after a Termination Event except to the extent
    that such interpretations are made exclusively by members of the
    Committee who
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    are individuals who served as Committee members before the
    Termination Event; and (iii)&#160;take any other actions and
    make any other determinations or decisions that it deems
    necessary or appropriate in connection with the Plan or the
    administration or interpretation thereof. In the event of any
    dispute or disagreement as to the interpretation of the Plan or
    of any rule, regulation or procedure, or as to any question,
    right or obligation arising from or related to the Plan, the
    decision of the Committee, except as provided in
    clause&#160;(ii) of the foregoing sentence, shall be final and
    binding upon all persons. Unless otherwise expressly provided
    hereunder, the Committee, with respect to any grant, may
    exercise its discretion hereunder at the time of the Award or
    thereafter. The Board may amend the Plan as it shall deem
    advisable, except that no amendment may adversely affect a
    Participant with respect to an Award previously granted without
    such Participant&#146;s written consent unless such amendments
    are required in order to comply with applicable laws; provided,
    however, that the Plan may not be amended without stockholder
    approval in any case in which amendment in the absence of
    stockholder approval would cause the Plan to fail to comply with
    any applicable legal requirement or applicable exchange or
    similar rule.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">14.&#160;&#160;<U>CHANGES
    IN CAPITAL
    STRUCTURE</U>.</FONT></B><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;If (i)&#160;the Company or Subsidiaries shall at any
    time be involved in a merger, consolidation, dissolution,
    liquidation, reorganization, exchange of shares, sale of all or
    substantially all of the assets or stock of the Company or
    Subsidiaries or a transaction similar thereto, (ii)&#160;any
    stock dividend, stock split, reverse stock split, stock
    combination, reclassification, recapitalization or other similar
    change in the capital structure of the Company or Subsidiaries,
    or any distribution to holders of Common Stock other than cash
    dividends, shall occur or (iii)&#160;any other event shall occur
    which in the judgment of the Committee necessitates action by
    way of adjusting the terms of the outstanding Awards, then:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (x)&#160;the maximum aggregate number and kind of Shares which
    may be made subject to Options and Dividend Equivalent Rights
    under the Plan, the maximum aggregate number and kind of Shares
    of Restricted Stock that may be granted under the Plan, the
    maximum aggregate number of Phantom Shares and other Awards
    which may be granted under the Plan may be appropriately
    adjusted by the Committee in its discretion;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (y)&#160;the Committee may take any such action as in its
    discretion shall be necessary to maintain each
    Participants&#146; rights hereunder (including under their Award
    Agreements) so that they are substantially in their respective
    Options, Phantom Shares and Dividend Equivalent Rights
    substantially proportionate to the rights existing in such
    Options, Phantom Shares and Dividend Equivalent Rights prior to
    such event, including, without limitation, adjustments in
    (A)&#160;the number of Options, Phantom Shares and Dividend
    Equivalent Rights (and other Awards under
    Section&#160;9)&#160;granted, (B)&#160;the number and kind of
    shares or other property to be distributed in respect of
    Options, Phantom Shares and Dividend Equivalent Rights (and
    other Awards under Section&#160;9 as applicable), (C)&#160;the
    Option Price and Phantom Share Value, and
    (D)&#160;performance-based criteria established in connection
    with Awards (to the extent consistent with Section&#160;162(m)
    of the Code, as applicable); provided that, in the discretion of
    the Committee, the foregoing clause&#160;(D) may also be applied
    in the case of any event relating to a Subsidiary if the event
    would have been covered under this Section&#160;14(a) had the
    event related to the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent that such action shall include an increase or
    decrease in the number of Shares (or units of other property
    then available) subject to all outstanding Awards, the number of
    Shares (or units) available under Section&#160;4 shall be
    increased or decreased, as the case may be, proportionately, as
    may be determined by the Committee in its discretion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Any Shares or other securities distributed to a Grantee
    with respect to Restricted Stock or otherwise issued in
    substitution of Restricted Stock shall be subject to the
    restrictions and requirements imposed by Section&#160;6,
    including depositing the certificates therefor with the Company
    together with a stock power and bearing a legend as provided in
    Section&#160;6.2(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;If the Company shall be consolidated or merged with
    another corporation or other entity, each Grantee who has
    received Restricted Stock that is then subject to restrictions
    imposed by Section&#160;6.3(a) may be required to deposit with
    the successor corporation the certificates, if any, for the
    stock or securities, or the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    other property, that the Grantee is entitled to receive by
    reason of ownership of Restricted Stock in a manner consistent
    with Section&#160;6.2(b), and such stock, securities or other
    property shall become subject to the restrictions and
    requirements imposed by Section&#160;6.3(a), and the
    certificates therefor or other evidence thereof shall bear a
    legend similar in form and substance to the legend set forth in
    Section&#160;6.2(a).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;If a Termination Event shall occur, then the Committee,
    as constituted immediately before the Termination Event, may
    make such adjustments as it, in its discretion, determines are
    necessary or appropriate in light of the Termination Event,
    provided that the Committee determines that such adjustments do
    not have an adverse economic impact on the Participant as
    determined at the time of the adjustments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;The judgment of the Committee with respect to any
    matter referred to in this Section&#160;14 shall be conclusive
    and binding upon each Participant without the need for any
    amendment to the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (f)&#160;Other than as otherwise permitted under this
    Section&#160;14, without the prior approval of the
    Company&#146;s stockholders: (i)&#160;the Option Price, with
    respect to an Option, or grant price, with respect to a Stock
    Appreciation Right, may not be reduced below the price
    established at the time of grant thereof and (ii)&#160;an
    outstanding Option or Stock Appreciation Right may not be
    cancelled and replaced with a new Award with a lower exercise or
    grant price.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">15.&#160;&#160;<U>MISCELLANEOUS</U>.</FONT></B><FONT style="font-family: 'Times New Roman', Times">&#160;&#160;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.1&#160;&#160;<I><U>No Rights to Employment or Other
    Service</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Nothing in the Plan or in any grant made pursuant to the Plan
    shall confer on any individual any right to continue in the
    employ or other service of the Company, the Subsidiaries, the
    Manager or Affiliates or interfere in any way with the right of
    the Company, the Subsidiaries, the Manager or Affiliates and
    their stockholders to terminate the individual&#146;s employment
    or other service at any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.2&#160;&#160;<I><U>Right of First Refusal; Right of
    Repurchase</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the time of grant, the Committee may provide in connection
    with any grant made under the Plan that Shares received
    hereunder shall be subject to a right of first refusal pursuant
    to which the Company shall be entitled to purchase such Shares
    in the event of a prospective sale of the Shares, subject to
    such terms and conditions as the Committee may specify at the
    time of grant or (if permitted by the Award Agreement)
    thereafter, and to a right of repurchase, pursuant to which the
    Company shall be entitled to purchase such Shares at a price
    determined by, or under a formula set by, the Committee at the
    time of grant or (if permitted by the Award Agreement)
    thereafter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.3&#160;&#160;<I><U>No Fiduciary
    Relationship</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Nothing contained in the Plan (including without limitation
    Sections&#160;7.5(c) and 8.4), and no action taken pursuant to
    the provisions of the Plan, shall create or shall be construed
    to create a trust of any kind, or a fiduciary relationship
    between the Company or Subsidiaries, or their, officers or the
    Committee, on the one hand, and the Participant, the Manager,
    the Company, Subsidiaries or any other person or entity, on the
    other.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.4&#160;&#160;<I><U>No Fund&#160;Created</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any and all payments hereunder to any Grantee shall be made from
    the general funds of the Company, no special or separate fund
    shall be established or other segregation of assets made to
    assure such payments, and the Phantom Shares (including for
    purposes of this Section&#160;15.4 any accounts established to
    facilitate the implementation of Section&#160;7.4(c)) and any
    other similar devices issued hereunder to account for Plan
    obligations do not constitute Common Stock and shall not be
    treated as (or as giving rise to) property or as a trust fund of
    any kind; provided, however, that the Company may establish a
    mere bookkeeping reserve to meet its obligations hereunder or a
    trust or other funding vehicle that would not cause the Plan to
    be deemed to be funded for tax purposes or for purposes of
    Title&#160;I of the Employee Retirement Income Security Act of
    1974, as amended. The obligations of the Company under the Plan
    are unsecured and constitute a mere promise by the Company to
    make benefit payments in the future and, to the extent that any
    person acquires a right to receive payments under the Plan from
    the Company, such right shall be no greater than the right of a
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    general unsecured creditor of the Company. (If any Affiliate is
    or is made responsible with respect to any Awards, the foregoing
    sentence shall apply with respect to such Affiliate.) Without
    limiting the foregoing, Phantom Shares and any other similar
    devices issued hereunder to account for Plan obligations are
    solely a device for the measurement and determination of the
    amounts to be paid to a Grantee under the Plan, and each
    Grantee&#146;s right in the Phantom Shares and any such other
    devices is limited to the right to receive payment, if any, as
    may herein be provided.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.5&#160;&#160;<I><U>Notices</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All notices under the Plan shall be in writing, and if to the
    Company, shall be delivered to the Board or mailed to its
    principal office, addressed to the attention of the Board; and
    if to the Participant, shall be delivered personally, sent by
    facsimile transmission or mailed to the Participant at the
    address appearing in the records of the Company. Such addresses
    may be changed at any time by written notice to the other party
    given in accordance with this Section&#160;15.5.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.6&#160;&#160;<I><U>Exculpation and
    Indemnification</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company shall indemnify and hold harmless the members of the
    Board and the members of the Committee from and against any and
    all liabilities, costs and expenses incurred by such persons as
    a result of any act or omission to act in connection with the
    performance of such person&#146;s duties, responsibilities and
    obligations under the Plan, to the maximum extent permitted by
    law , other than such liabilities, costs and expenses as may
    result from the gross negligence, bad faith, willful misconduct
    or criminal acts of such persons.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.7&#160;&#160;<I><U>Captions</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The use of captions in this Plan is for convenience. The
    captions are not intended to provide substantive rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    15.8&#160;&#160;<I><U>Governing Law</U>.</I>&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE PLAN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
    THE LAWS OF THE STATE OF MARYLAND WITHOUT REGARD TO ANY
    PRINCIPLES OF CONFLICTS OF LAW WHICH COULD CAUSE THE APPLICATION
    OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF MARYLAND.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;A</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><U><FONT style="font-family: 'Times New Roman', Times">PERFORMANCE
    CRITERIA</FONT></U></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Performance-Based Awards intended to qualify as
    &#147;performance based&#148; compensation under
    Section&#160;162(m) of the Code, may be payable upon the
    attainment of objective performance goals that are established
    by the Committee and relate to one or more Performance Criteria,
    in each case on specified date or over any period, up to
    10&#160;years, as determined by the Committee. Performance
    Criteria may (but need not) be based on the achievement of the
    specified levels of performance under one or more of the
    measures set out below relative to the performance of one or
    more other corporations or indices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>&#147;Performance Criteria&#148; </I>means the following
    business criteria (or any combination thereof) with respect to
    one or more of the Company, any Participating Company or any
    division or operating unit thereof:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;pre-tax income;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;after-tax income;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;net income (meaning net income as reflected in the
    Company&#146;s financial reports for the applicable period, on
    an aggregate, diluted
    <FONT style="white-space: nowrap">and/or</FONT> per
    share basis);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;operating income;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (v)&#160;cash flow;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vi)&#160;earnings per share;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (vii)&#160;return on equity;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (viii)&#160;return on invested capital or assets;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ix)&#160;cash
    <FONT style="white-space: nowrap">and/or</FONT> funds
    available for distribution;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (x)&#160;appreciation in the fair market value of the Common
    Stock;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xi)&#160;return on investment;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xii)&#160;total return to shareholders (meaning the aggregate
    Common Stock price appreciation and dividends paid (assuming
    full reinvestment of dividends) during the applicable period);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xiii)&#160;net earnings growth;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xiv)&#160;stock appreciation (meaning an increase in the price
    or value of the Common Stock after the date of grant of an award
    and during the applicable period);
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xv)&#160;related return ratios;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xvi)&#160;increase in revenues;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xvii)&#160;net earnings;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xviii)&#160;changes (or the absence of changes) in the per
    share or aggregate market price of the Company&#146;s Common
    Stock;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xix)&#160;number of securities sold;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xx)&#160;earnings before any one or more of the following
    items: interest, taxes, depreciation or amortization for the
    applicable period, as reflected in the Company&#146;s financial
    reports for the applicable period;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xxi)&#160;total revenue growth (meaning the increase in total
    revenues after the date of grant of an award and during the
    applicable period, as reflected in the Company&#146;s financial
    reports for the applicable period);
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xxii)&#160;the Company&#146;s published ranking against its
    peer group of real estate investment trusts based on total
    shareholder return;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (xxiii)&#160;funds from operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Performance Goals may be absolute amounts or percentages of
    amounts or may be relative to the performance of other companies
    or of indexes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise expressly provided, all financial terms are
    used as defined under Generally Accepted Accounting Principles
    (&#147;GAAP&#148;) and all determinations shall be made in
    accordance with GAAP, as applied by the Company in the
    preparation of its periodic reports to shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent permitted by Section&#160;162(m) of the Code,
    unless the Committee provides otherwise at the time of
    establishing the Performance Goals, for each fiscal year of the
    Company, there shall be objectively determinable adjustments, as
    determined in accordance with GAAP, to any of the Performance
    Criteria described above for one or more of the items of gain,
    loss, profit or expense: (A)&#160;determined to be extraordinary
    or unusual in nature or infrequent in occurrence,
    (B)&#160;related to the disposal of a segment of a business,
    (C)&#160;related to a change in accounting principle under GAAP,
    (D)&#160;related to discontinued operations that do not qualify
    as a segment of a business under GAAP, and (E)&#160;attributable
    to the business operations of any entity acquired by the Company
    during the fiscal year.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Please Mark</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Here for Address</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change or Comments</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SEE REVERSE SIDE</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR ITEMS 1, 2 AND 3.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">To elect nine directors, each to serve until</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>FOR ALL</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>WITHHOLD</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">To amend the Company&#146;s 2006 Long-</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">FOR</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">AGAINST</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">ABSTAIN</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">the next annual meeting of stockholders and</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>NOMINEES</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>AUTHORITY</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Term Incentive Plan to increase the</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">until his successor is duly elected
and qualified.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(except as</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">FOR ALL</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">total number of shares of common stock</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">provided to the</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">NOMINEES</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">available to be granted under the Plan, as</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">contrary below)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">described in
the accompanying proxy statement.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">01 Rodney E. Bennett&nbsp;&nbsp;&nbsp; 06 Jack Haraburda</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">To ratify the appointment of
Ernst &#038;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">FOR</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">AGAINST</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">ABSTAIN</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left" nowrap>02 Marc Chayette&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 07 James J. McEntee, III</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Young LLP as the Company&#146;s<BR>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">03 Daniel G. Cohen&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 08 Lance Ullom</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">independent registered public accounting<BR>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">04 Thomas P.
Costello&nbsp; 09 Charles W. Wolcott</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">firm for the year ending December&nbsp;31,</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">05 G. Steven Dawson</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2008.</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In their discretion, the proxies
are authorized to vote upon such other matters which may properly come before the
meeting and at any adjournments or postponements thereof.</TD>
</TR>

<TR valign="bottom">

<TD valign="top" colspan="3"><DIV style="margin-left:0px; text-indent:-0px">If there is
any individual director with respect to whom you desire to withhold your <BR>
consent, you may do so by indicating his name:
</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD style="border-top: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Both of such attorneys or substitutes (if both are present and acting at said
meeting or any adjournments or postponements thereof, or, if only one shall be
present and acting, then that one) shall have and may exercise all of the
powers of said attorneys-in-fact hereunder.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>THE VOTES ENTITLED TO BE CAST BY
THE UNDERSIGNED WILL BE CAST AS DIRECTED OR, IF NO DIRECTION IS INDICATED, WILL BE
CAST FOR THE ELECTION OF ALL NINE OF THE DIRECTOR NOMINEES LISTED
ABOVE, THE AMENDMENT TO
THE COMPANY&#146;S 2006 LONG-TERM INCENTIVE PLAN, THE RATIFICATION OF THE
APPOINTMENT OF ERNST &#038; YOUNG LLP AND, IN THE DISCRETION OF THE
PROXY HOLDERS, ON ANY OTHER MATTER THAT MAY PROPERLY COME
BEFORE THE MEETING OR ANY ADJOURNMENT OR POSTPONEMENT THEREOF.</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Signature</B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <B>Signature</B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> <B>Date</B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt">(This proxy should be marked, dated and signed by the stockholder(s) exactly as his or her
name appears hereon, and returned promptly in the enclosed envelope. Persons signing in a
fiduciary capacity should so indicate. If shares are held by joint tenants or as community
property, both should sign.)
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 70%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV style="width: 30%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>

</DIV>

<DIV align="center" style="font-size: 8pt; margin-top: 6pt"><DIV style="border-bottom: 0px dotted #000000; font-size: 1px">&nbsp;</DIV>
<FONT face="webdings" SIZE="3">&#053;</FONT> &nbsp;&nbsp;&nbsp;<B>FOLD AND
DETACH HERE</B>&nbsp;&nbsp;&nbsp;<FONT face="Webdings" size=3>&#053;</FONT>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">
<B>WE ENCOURAGE YOU TO TAKE ADVANTAGE OF INTERNET OR TELEPHONE<BR>
VOTING,<BR>
BOTH ARE AVAILABLE 24 HOURS A DAY, 7 DAYS A WEEK.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Instead of mailing your proxy, you can
choose one of the two voting methods outlined below to vote your proxy.</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Internet or telephone voting must be
received by 11:59&nbsp;p.m., Eastern Time, on June&nbsp;17, 2008.</B>
</DIV>


<DIV align="center">
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="70%" border="0">
<!-- Begin Table Head -->
  <TR vAlign=bottom>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR><!-- End Table Head --><!-- Begin Table Body -->
  <TR style="FONT-SIZE: 3pt" vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid"  width="1%">&nbsp;</TD>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">
      <DIV  style="BORDER-TOP: #000000 1px solid; FONT-SIZE: 1pt">&nbsp;</DIV></DIV></TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp; </TD>
    <TD  style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 0px solid">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1px solid" vAlign=top align=left>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid"  width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 0px solid; BORDER-LEFT: #000000 1px solid" width="1%">&nbsp;</TD>
    <TD vAlign=top align="center">
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><b>INTERNET</b><BR><b>http:/</b><b>/www.proxyvoting.com/afn </b>
      </DIV></TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 0px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 0px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align="center"><B>TELEPHONE</B><BR><b>1-866-540-5760</b></TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom><!-- Blank Space -->
    <TD style="BORDER-LEFT: #000000 1px solid" width="1%">&nbsp;</TD>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">&nbsp;</DIV></TD>
    <TD style="BORDER-RIGHT: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=middle align="center" rowSpan=2><B>OR</B></TD>
    <TD style="BORDER-RIGHT: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 1px solid" width="1%">&nbsp;</TD>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">
      <DIV align=justify>Use the internet to vote your proxy. Have your proxy
      card in hand when you access the web site.</DIV><BR></DIV></TD>
    <TD style="BORDER-RIGHT: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>
      <DIV align=justify>Use any touch-tone telephone to vote your proxy. Have
      your proxy card in hand when you call.</DIV><BR></TD>
    <TD style="BORDER-RIGHT: #000000 1px solid" width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top
    align=left>&nbsp;</TD>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    width="1%">&nbsp;</TD></TR><!-- End Table Body --> </TABLE></DIV>




<DIV align="left" style="font-size: 8pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your
Internet or telephone vote authorizes the named proxies to vote your
shares in the same manner as if you marked, signed, dated and
returned your proxy card. If you vote your proxy by Internet or by telephone, you do NOT need to mail back your proxy card.
To vote by mail, mark, sign and date your proxy card and return it in the enclosed postage-paid
envelope.
</DIV>

<DIV style="width: 98%; border: 1px solid black; padding: 11px;">




<DIV align="left" style="font-size: 8pt; margin-top: 6pt; margin-left: 2%">Choose <B>MLink</B><SUP style="font-size: 85%; vertical-align: text-top"><B>SM</B></SUP> for fast, easy and secure 24/7 online access to your future proxy materials,
investment plan statements, tax documents and more. Simply log on to <B>Investor ServiceDirect</B><SUP style="font-size: 85%; vertical-align: text-top"><B><SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP></B></SUP> at
www.bnymellon.com/shareowner/isd where step-by-step instructions will prompt you through enrollment.
</DIV>
</DIV>



<DIV align="left" style="font-size: 8pt; margin-top: 12pt"><B>You can view the Proxy Statement and Annual Report on the Internet at www.alescofinancial.com.</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ALESCO FINANCIAL INC.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS FOR THE<BR>
2008 ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON JUNE 18, 2008</B>

</DIV>

<DIV align="left" style="font-size: 8pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned stockholder of Alesco Financial Inc., a Maryland corporation (the &#147;Company&#148;),
hereby appoints James J. McEntee, III and John J. Longino, and each of them, as proxies and
attorneys-in-fact, with full power of substitution in each, on behalf and in the name of the
undersigned, to attend the 2008 annual meeting of stockholders to be held on
June&nbsp;18, 2008 at 10:00&nbsp;a.m., local time, at the Company&#146;s headquarters located at Cira Centre, 2929
Arch Street, 17<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&nbsp;Floor, Philadelphia, Pennsylvania 19104, and any adjournments or
postponements thereof, and to cast on behalf of the undersigned all
votes which the undersigned
would be entitled to cast at the meeting and otherwise to represent the undersigned at the meeting with all powers
possessed by the undersigned if personally present at the meeting. The undersigned hereby
acknowledges receipt of the Notice of the Annual Meeting of Stockholders and the accompanying proxy
statement, the terms of each of which are incorporated by reference herein.
</DIV>


<DIV align="left" style="font-size: 8pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether or not you expect to attend in person, we urge you to vote your shares by phone, via
the Internet, or by signing, dating, and returning the enclosed proxy card at your earliest
convenience. This will ensure the presence of a quorum at the meeting. Promptly voting your
shares will save the Company the expense and extra work of additional solicitation. An addressed
envelope for which no postage is required if mailed in the United States is enclosed if you wish to
vote your shares by mail. Submitting your proxy now will not prevent you from voting your shares
at the meeting if you desire to do so, as your vote by proxy is revocable at your option.
</DIV>


<DIV align="center" style="font-size: 8pt; margin-top: 18pt"><B>(CONTINUED, AND TO BE MARKED, DATED AND SIGNED, ON THE OTHER SIDE)</B>
</DIV>

<DIV style="margin-top: 10pt">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%"></TD>
    <TD width="46%"></TD>
    <TD width="2%"></TD>
    <TD width="48%"></TD>
    <TD width="1%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD width="1%" style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 8pt">
    <TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" valign="top" align="center"><B>Address
Change/Comments <font style="font-size: 6pt">(Mark the corresponding box on the
reverse side)</FONT></B></TD>
    <TD width="1%" style="border-right: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD width="1%" style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD width="1%" style="border-right: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 60%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV style="width: 30%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>

</DIV>

<DIV align="center" style="font-size: 8pt; margin-top: 6pt"><DIV style="border-bottom: 0px dotted #000000; font-size: 1px">&nbsp;</DIV>
<FONT face="Webdings">&#053;</FONT>&nbsp;&nbsp;&nbsp;<B>FOLD AND
DETACH HERE</B>&nbsp;&nbsp;&nbsp;<FONT face="Webdings">&#053;</FONT>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>w56366w5636600.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 w56366w5636600.gif
M1TE&.#EA=P%L`-4``-+2TL+"PDY.3L3$Q(F)B?#P\&IJ:J:FIJ*BHN'AX3`P
M,&MK:R$A(3\_/Y>7EWIZ>K6UM5Q<7')R<KJZNJRLK(J*BEI:6E145("`@):6
MEK>WMR@H*#8V-AX>'L;&QHN+BTU-349&1EE961T='3X^/DA(2&5E94E)25A8
M6%%146-C8VEI:6!@8'=W=WY^?J&AH8:&AC,S,UU=7:ZNKFAH:(2$A&9F9E]?
M7Y.3DW5U=5=75T)"0G9V=O___Q,3$P```"'Y!```````+`````!W`6P```;_
M0)]P2"P:C\BD<LEL.I_0J'1*K5JOV*SV*MAZO^"P>$PNF\_6KE#`;KO?\+A\
M3J_;[W4&>L_O^_]9:CX]A(6&AXB)BHN,C8Z/C8*`DY25EF6"D)J;G)V>A9*7
MHJ.DI4F9GZFJJYJAIJ^PL7VHK+6VM:ZRNKN\6+2WP,&MO<3%QDZ_PLK+A[G'
MS]"[R<S4PL[1V-FBT]7=N-K@X9?<WN6?U^+IZF'DY0D#\/$#">:*Z.OX^57M
MWB(2_P`EF*B7Z)Z^@PB7\*N60`*`AQ`G^!A`L%G"BQB;+*2V8`)$B!)\"*AH
MR&#&D_HV+DM@X2/$#D(HDNQA$J7-="J5$?#HLL*0_P4S:=X<>C%GL`(I7#[D
M0(0>R9I$HSXS"NP``J4(B@!]*K6K.JJW2B@%8,&(4X)0O:J5!;86A`I*)1IY
MP'6M76AM69D8&]((@P(5T]X=/&X(P0$.E<(\0B`PX<>\\JIJX4&I3R1_T4+>
M'$OR)Y9CF28YH)FS:5*>/3W@^3&K$@6E3\NNE)I3@15CRRXA;4[P[-]>:F\B
M<-6EW"6P>P-?/LMP.19\G4!0SKRZ&>&0#L!5C(RZ]>_LG'?3,?:R$YG=?(-?
MKU`\M0$N0A^)@62D-_7L\QO![DA$99>N&4'!!D@`<)]^".[CWDJ)N:1;$1<$
M@`$26U6#7X+Z\<=(1W$A\?]"``$0>,19S%R((7L:*E)`2TKU500)(`9@`(7I
MG6BC1@L*0\`,8RU6!`8Q:C`"$B0J8^*-UJ682%*6';%!C"#.R)B%2%9YA)*'
M6"6?$3%`&0`%F`%6HI5D#H&E(6)A55\&7EZ`1&-CEDGFF82\E=L1?X'@)9AX
MBFFDG'/F>(L(8QU71&,$L`GE"4CP]B>@5=()0(,?N5@$/07H"64&2"3W**0W
MTKG`?R[Y2$2%!%#@)0F-+G,DJ)R="5J31QA(2`$J>/E!IZ["&JJ@K*RV91'V
M%;*`JE"*:,1TUOAJ(Y8%R#!6@$4P6T@"$4(YX96?;M%`/!$8$8\1W\HSKA`*
M'.#_)P`-:(5>#P`H,$0#ZA8"P`-*E&ON`CXX`$^[$\%#`!'^#F!$!/$`/&\\
M^`Y1<!'IGE7`P`O`PR\1##!L1,$*(\&Q#_HV+,3#1$1<R,1@8.E`<0X>X:DA
MQWJI;!'OVO*J$8X:7$0A^RF"KI^@#*&`K1;Y4.$A`.C!+2(#RZ2&(?+&1,BR
MA1Q`[,E*3S3U3XD8#.?`1-!%2`+B$G*/TR)A/81,IW:=,K"J7%!HJX@D<(.7
M4O8<S,U%`!VU>'HG0,#@@PO!6P$+"/``!$,P0/0!$2@^0!?%`I"X`V+J'#CA
M!'2!]B!5K[VUT(84D'7:A8"M=0]<C_V``!$XP/C7EQH2_RX1GR>!=K$]J,ZV
M$!4F\'KLC'^AI';1^;4(#QI`*221>W^QE5,.[#RZF81HCCLAMQ]Z:\>B]Z!]
M`T'KK;W40H%>2-2_#P&G4Q>O<0C[6V?6@]5&T#[OV(3@'_[99D/=^M`G!/OY
M;PQ*VDN/IJ2(`1@`;S0"!M_^-S;KL>YJXCN"3$36%$)PD'2$^)OA^K>T\ZWN
M:3UP"O[:)P1,D0]>1+"/F%:XM>F=SGV$4)T/>!,!,9TN=TC8W:U(N#K@C>V&
MX1$",.!3'B0`#1$H:%Z,^#0B"7HA.0#P`;.ZI[[-$4X-.>.BIY"(NBQBT(P8
M%!SAY/6Y[/&&C=>+``F=HC#[#/^`67"\H`,(43T&JBXS9.,-!X&HP0#:$8]%
M[!<?SY`B&I#J(Z+12B,<V*8(VLP+>^P!OK92/"5>3WY,^YDA$G`[^Z!1DAF$
M&,_T9I$VBB\Y5F,A#Q79@SZB;@"P3*1,N$@$_1EMD2\DV_^6(,17DO!WNV0D
MW#J1`!M,"WJ-R!64J&B$)ZIB@C[PH0\8,$!/7C"&MY)'_!C@*$+PRY1(D&,J
MB?#";X*S!P601[M<:;`WMH^;\$37K;"707MN+9E^'(*M`.8401"R;$*QXPY#
MB$SN*=.;K."04A[TSD9``$B+>M,M)JC.>,)#3*I;Y3M-B#$"B(EL[22C?81)
M!'625*'_-`L@Z`P&R_:)S:/HN9A":[HUWMC2>[W39_8^2L03$M.0V?,!3R_H
MTX>J;Q6WF5LA'Q$"+W&J3Y?4@K7J!C@,DK0([10"2/%4"/`UU7P(1:'.#C>Z
M(AE"9S#EC5.$<%,RZB^3BE#:06.:T*0N-(5;J^MUECD<EE7*99HX`$9CQ"H&
MLH)OR<$I4=,G4GZ2]'1A]0&<>A`_(C`K::U+GU?3ZDF=V6]K+Y0L>N0%TY==
MT'Z@!2K8,B</,5ULK]OK:RI=6T`QQ;9D;!"A@B"J"B9Q!V>;J"J4=D76;V0!
M3@?\*_X*8:X&R-!<0C#I`0B`.;\RX"P#(!P`NJ"`DP[.4=&U_RQI9XK#5?)&
MAUI<)$S_.CJQP=,!YYU=#G^Y3KH2PHPR`8`\23O?<@[!O@7`+P$.H-^@^H*P
MV<E`$Y6WB0-\0&9T6P7?Z`C60NC!'KPS1'8140"%#:T@0FB`->]W"K_F5JV-
M\],VQ23<K13@EB"\GGW?JMG],JNS2BWKZHKV8AP+5<=N\V4:(/R(-"DEDKWL
MA*9BM"TCN/8<65``/#KI67B$RUP)TQ=V10(!IP#``<+U000.8*MW_(T!!)!)
M`B"`CG+]=&3_BLD`?OJ`<0D`'G?6\P`:8.=>GDMH?<X<Q2P6L`$@L6#\*EAU
M-Y;G0KOOT.A*=/86/0`@4T$X`]@.@/^PRHE$8?@(Y<2RLS`D'/_<R0A'TT2F
M((A8#:^:U4QFQ*2D:I9/F#I(0YIJ*K!Y:Z_49E3)*X(Z/5&`;,4H;Q@<=K$1
ME)I9'9>OGXC9%'5WS6EG*->*V,F$.ZP*;%5R::KV]GH\@Y2Q``#*0TBU)[0-
M(FK6+MWJ_HYGM*0F*]?"W!D]0JPW0>Q\W\0S<GLU4%D1`2F"Z*I5]$3!#8X2
MR2"O0WY9L2<H":7&PAK?%%^.9!38(H$#(XK+38+&(Q'R)('[K93ZB*F&X%95
M<#Q&,XMR)R;>\J*\O!"4&7?;@H%R*H=IYSUG3ENL[1)XHZ\JBP51SMM+\*2+
M_.><94UKT!W_#.4^&S-(M_IOP!)5A1-!WK90K/."C=RJBWTV8"$.KTM&#:]'
MB5=N?_MIP`*=9,>0<X`/O.`'SSD!1-W>9\^[WF/U\HN[^_&0C[SD<7!N<BE^
M\9"ABI,ES_G.1WX"BJHWMR'!<\SC!-RA]KSJ5Z\4&'B)45QGN>DW8Q17L_[V
MJ@?]ID;OB-+/'APY:0CNA^]YUW<\G:3_?>9S+5'B.__Q$T`6B)@;<=DK?S`J
M*<`.$,#][GO_^^`/O_C'3_[NU^#4'^_]]0FC$H![Z?WPC[_\YT__]U<9E=9?
M_UIR\H`/U?__`!B`\C=UI\4(OJ=_4Y%KLR:`#-B`]0=M(Y-\"+A_U.#F`!?F
M@!B8@2#R//LC@1-H;"]G=QHX@@$(;42C?A\(@L0U23E`@BX(@%2T8RB8@E(!
M%D7W@C@8?VY2@#-(@T0!%@GP0#DXA'L27Y?G@S;1%@M@`$S8A$[XA%`8A5(X
MA50XA2H0=D@X%'02%,Z5A0>'=5Q8#@?HA9T!AF%8(V28A&9XAM0PAFEH"EO(
MAB#WA@D1AW*(A73H<RMXAT'AAGFX#6O(A]'SAWKX5(+8AX18B(=XAGZ8B)0@
="'@0B9(XB918B6U`1HYX>IFXB8VXB?DF`$$``#L_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>w56366w5636601.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 w56366w5636601.gif
M1TE&.#EAV0`P`,0``._O[P\/#W]_?S\_/[^_O\_/S]_?WR\O+Q\?'Y^?GX^/
MCT]/3V]O;U]?7Z^OKP```/___P``````````````````````````````````
M`````````````````````````"'Y!```````+`````#9`#````7_("2.9&F>
M:*JN;.N^<-P"#"/?^`HDS.`K@)QP2"P*`8A'P,B<"1X/Q(+1D`:;V*P6!CA`
M$]NMH:%L&$B`P2',;F\+R8##W50$'HNSJ?"8T_^`,05W#P6!0T\/`BM26P`&
M5X>2*X,/#9,X:0\'>BIJ304"`X2;#)&86@"&E'=+J#$$2:8M`P]&"DE1!PL"
M"F0'IZ]#``I>4'XHE7W"+[\$+[5#H4D(#,\E!KO!S%P)M4H#O*LG2%"7W#H+
M#V`P=SD`9`\#XR<.Z^B"\7@)VR9=4,#PI?AW#88\'';DT4,!X.`[`@02]"*P
M,`N!;W@ZZ3`64""Y),A>$'A@(X8FDB\<_\((-0J*2Y<#-#*Y""5`GA?_E%3T
M"*%+@)TLGH1LD2")`)DK5*XPT...%`$.(!8``)'`@I]UOAW@%T.=3IXGK@)E
M40NIBGA#61A0BL(;E`$""C*T9,1!+@3L3!#H)T)?2;`DR*2%MN;%DP-C4]@;
M,%"`4P5F44`A0E.)@&"D7KH,@.!`Y@$,!,3E2Z*`60*1(:1N,9)Q)KHN$L"6
M\631"09W%LAML18!%P*BP1CX%N#R"8R:DRO?O"`!4$('!*Q:#`_NB&S+;AC@
M+$3!@]TIO/^5P>!["7A*\L8@L\`%+LVY#@PF8<"!Z*LNFY.2#H`J1(D+Y!*%
M`G(ED%D4!]J`'O\4B:GPA'HR=.8"`'?,UT(2IVQG"6DZW,$/A['4I$`"QLBA
M'0_&F,,"50I<U=YU`J28'`(%$$!(`!#"X`5X(BGBPA,(<*C"6H6)L)V)F<@8
MQ4Y\;+)7>98)R8(^V0V3R'(N\>A";T*HHZ4)22B0`QEY=4'C#:%X]997BYA&
M0FU4$<+`:B[$@X`#"2S0G#2D'("<2QW=(-MX@FR2T@-TIL#E"",5^0*)FMF6
M2(#'T"?"'9P4D<B9(A2%@)@W.'`@3%2><T-M8]XSPV0X/$&H9U_2QX.`+H%*
M998GW"'EBO$$L,T3"S1H@FQ*0.F2<?:X=`-%(X$J`X6^';JK/W<LA!W_`@,T
M()IH/?CP)URM&$*`D@"A0(:S.(0(A98&DC0ME%C9>``0)!@3K:($V$>%GZA1
MZ)H,WBE0@`+!K?#@#>696D)$`C3@;0,+P(417@8($$<!!>`'A0!>#<#7M7`)
MD$!5J.F`VTM#.L:I"E`B$&L!QL1%L"C>M@0%`MI"%$EYB>:ZB6;G^*<1$K[&
ML!:BC\#0;@!B+GBFL7,V&1!%;9'[4DPGP`S0<(@NY=EJWFT2B0$0S>P#EC6%
M3&!J760*0]A16`.`JPV0HMX@6+N0L2(&J+-KWQL'T:XB5XQAA@A-BBR+"L!%
M;#.N)<!MFW<6CL#'OR>$[2W:FH$F6LE<>&'<_XJ)X(CX>X`&Z`HQ%D.QIPJ0
M`@0%H6UA:LA)6'GRTN@O--GU=<0A<WD+9"`5(^<OV;0V$US+,]H)5R[@0`_)
MS0+!2+2ZQ$`N`7B^;=V=<Z5#+2Y?_TWYO`E\:GY7`*"F;224A\!]`M)SK@FW
M;N:#:,(284">+L%6:$3S)R4L`'4!V`V4!L`.^8D";1P)!@$8,(7S>`$Q>X,"
MNL)`+)>`P2XW`\J5-#..HX&'=7'IGQL:-P`$C&HK5R!6D+)F@H2\!`CJ^!0$
MO#-#$HSD+9TP0!(&X`",6,\-1],>1CPV)(A9HQ;P<Y\2IH6/N5GF"9@3@6AZ
M-@*J2,0Y"4&,:@*0._\T],*"\)G3(0S0(LW,:SV6N`\A<@28ZWC!8]OI(1.D
MB(<@$.0%<-M$Y9!XER.*Y$!XJ6,R[F`;+ZBP=[EP%IE6\H-'MD$!&Q2$GGIA
M270(,8%:Q`,6EC8.[SA*D:A\A8'<9DHJMB!LAQ-!*U-)2U3(IB.#*!H3X@$_
M"-@C4+4,YA_XT)%_='(%\5"/;/0HS&:R@4+%]$(FA9`(]8P$2<[,IA9R>85*
MT(Z:ZR*!=\JHS7(:X8\0T-J+C/##D!S&E>:,)\L>`"IO-D%#II(B,^7)3QE4
MX@RBFHT1U!$`/6CB)OU,J`QJ80-88J&=(K"1JA1*T=@H`7"FPP(9&+.@058M
M]*,]28)GOH*%HSD`A/,`J4K#LQG(:.&'0_3H2BN:2]YIH19;F:E.=\I3?(0`
"`#L_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>4
<FILENAME>w56366w5636602.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 w56366w5636602.gif
M1TE&.#EAL0`Z`,00`$!`0,#`P("`@/#P\!`0$.#@X"`@(*"@H-#0T%!04+"P
ML#`P,'!P<&!@8)"0D````/___P``````````````````````````````````
M`````````````````````````"'Y!`$``!``+`````"Q`#H```7_("2.XQ"<
M9*JN;.N^<"S/=&VO`?#LC7+_P*!P2)P==@^"87<8%)_0J+38>`"<HL"2@)UZ
MO^`OX:H2/`R%L'K-KBD>!Y:9W*[;[09#5\5X,.Z`@5\/`B]5`8*)BD%O<2H'
MB!`(8XML`6F5C%8P?2L%")E%DP"A00:D*04-)`6G*0P&H*5"1P2S/P)Z*0..
M(PX/D0@)!CZW07/&-@%P*0H&JR,%!(4(5IC)N`\+V#0#2GL)A2E5#93<0,@X
M">>IVM<)VRG5!I%"K7^EZ2H[LNPB"@06!``U;40`!0MVH!E28$>Q4&:@[0/F
MC\2!+7T<"!"08$<"!1T=$$%1P\2)3P/Z_Q&)N&*`PXK-""!!0FQ$P4!59M(4
MX$#E#7TI.DJ$.4+'PQ0`UH%!`&F/+YDZ9];[^4"IBF7B2/#R!V#A"@"VOE3;
M06#JBVM!.O9*L6RHB#YF!15(2(#!T:HM#K%`@/8&6`0`=<%H(#B(CK4DS,0%
M.H*OG01C=!!RXO)HLP=]!SA@L,!JC0('CD1RYI:%.2$Z6B@NLRE5YSI]'G8$
M4&`U"]$6EP``$#?&@"4)$S^(L8-(:A8ZXO9!Q2HX"0:(=ZE0Y9/%`Y'".1MP
MT0=3@8X+;L(X@'U$0B3"+:]X4-I&0^83OU+D,[S$CMX0(#]J[<OG,J<#0+9`
M>T75!X%,```%4O]C"V#250IFO&$@!._!P!\ZQ>&0(5+S<9C"?<@1PM:%$.B`
MUB\M=9355P04,$!X#GASH0[BO*%4'RN>LDR')4YHG8]4Q7/5AB0DI\(D88WP
MT@I"C0A??LR,<`0+?1`HPFX0+"-2`;#`1Y<39L0#%"$[3G6<"`DX=2"0-C`F
M)9%%<:'"&T_NL.)S>)&PS)-'T,9`&F=^*%-YJ1A02$*@_';A&0_X8,9V$/1I
M7R$Z"-DC6DUPB-\,;HIP7F;.75:GB/+A8Q")9O"0QC(K5!.`BDP"XQ(T8UG5
MT!$B]5'?+TEB-0D_!;YRIXE"=`I!$CQ"$.8*9GBVYITCF''GGD&!F,7_`]6M
M!BM2"YC0X9+Y+>#J)$MLN:@`RRS@RI5/!FBI4<4FP:P5I([0$9M5W+D$M%?Z
M,<Z%K5B+IENMQ#-7O<I>!\$;]81Z8`,FXJBP2TD>R)L59J3A#;2M/'28$%"M
MH$2%))Q774)]R=2;-`@WA'!./()V62_?7>?B+PPXP?`(2]CWRS8C*Q$IL"+\
MTE$!#8ET1'19$E#,QRRH>22REDF[IG`=F?K/#GW!JT).$@5H9\F,FNEC`Y92
M")5'C<TGH4@#P%*-`(U(XL<21!^KC0A5]`'I"K^(9`;3^:7Y`J(/OKG0,HXT
MU.`2U[B,L-ZQR$-6Y<(DL2Z4!/RRUI0DB)="_V@IT]-1`C^#>-T86$CFP!L$
M0+)C+U7(V4)&Q_([%J'K#=='$[41[8U``<CDPS*Z%.^'PKX@6[&$KY)%E@)]
M,)"YB.QI98"I@].@Q1G%(&!`C%GN0(<(CE&(]TP+Y$(6X?8NSV^Z4K<]W`"2
M*335CF._=0;>"'A1BT3@,K&USWT404#^E!*PF<1A<M(0R1L:4+\?X,]P+1B`
M```@$@1`;#?HREI/,K6+G/`K0/"#P`#Z)H*X@9!9`*#@*W:3@$C,(0`"2(@/
MXK:^!1Q%3<(``"RZ=:S"O*4!`:M@(ER(K.H4#0!.C,$R;`>%%<Y$:PC82`"4
M>!EQ+,$L`&$".QR00IHA_.D+!Q#BIFB@`UDL(RX.J!Q1YBB%,]F&CG@$0_;X
MEJP\^K$(+LF*7OY(R"+@1@1?+*0BX]4%(RWRD6V:D",A2<D8[$P$,JFD)F'P
MAB[L<9.@W$\]HA3*4HK`-F\TI2K-T+PUJG*1&5-A$KCXRD*^06F3JV4EQW(I
C798R(<5[DB\KJ0.9\&N8CSS")Y&I26DTB)FAO`0TD1D"`#L_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
